Mumbai: The market shattered after the Reserve Bank of India (RBI) credit policy announcement on Friday. The Sensex has broken the 9,000-mark for the first times since June 14, 2006 and the Nifty also slipped below 2,700. Metal, banking, realty, power, oil and auto stocks are under pressure.
The RBI kept all key rates unchanged. The GDP growth forecast has lowered to 7.5-7.8% as against 8 per cent earlier. Inflation target remained unchanged at 7 per cent by March end. The credit growth stood at 29 per cent currently but the RBI has kept target of 20 per cent.
Mkts @ 11:08 am : Nifty tests 2800; metal, realty, power, auto stocks plunge
The market is reeling extremely under pressure. The BSE Sensex is trading below 9,500 mark and the Nifty has tested 2800 level. Asian markets have plunged further, down 3-9 per cent, which is putting pressure on the markets.
The selling is seen in metal, realty, power, pharma, auto, oil & gas and midcap stocks. Not a single stock is in the green in both indices.
At 11:08 am, the Sensex slipped 347 points to 9,424 and the Nifty fell 124 points to 2,818. The BSE Midcap and Small Cap indices lost over 2-3 per cent.
The market breadth is extremely weak; about 721 shares have advanced while 2255 shares have declined. Nearly 214 shares are unchanged.
Among the frontliners, Suzlon Energy, Hindalco, NALCO, Unitech and Sterlite Industries fell 10-19%. Power Grid Corp, M&M, Ranbaxy Labs, HDFC and Tata Motors lost 7-9%.
BSE Metal Index fell over 7%. Healthcare, Auto, Realty, Power, Capital Goods, Oil and TECK indices lost 3-5%.
Markets @ 10:24 am : Sensex below 9500; Hindalco, Sterlite, Bharti top losers
The market has extended losses further on account of huge selling in metal, realty, auto, pharma and banking stocks. Asian markets are extremely under pressure. Midcap and small cap stocks are also down.
The Sensex tumbled 320 points to 9,451 and the Nifty lost 115 points to 2,828, at 10:24 am. The BSE Midcap Index fell 2 per cent to 3,311 and the Small Cap Index lost 1.23 per cent to 3,917.
After months of the financial crisis gripping the developed countries, the fear is now spreading to emerging markets. Countries in Eastern Europe as well as Pakistan are reeling under the possibility of sovereign defaults. Bhanu Baweja, Head - Global Emerging Market Research of UBS feels our capital markets are globalised, and even economy to a very large extent is more globalised today, than it was ten years back.
Thus, emerging markets will come down with the global economy, just as they went up with it.
Market breadth is very weak; about 835 shares have advanced while 2136 shares declined. Nearly 219 shares are unchanged.
Among the frontliners, Suzlon Energy fell 19.26%. NALCO, Hindalco, Unitech and Sterlite Industries lost 10-16%. Power Grid Corp, Idea Cellular, Bharti Airtel, HDFC Bank, Tata Motors and Tata Steel plunged 5-9%. Not a single stock is in the green on the Sensex and the Nifty.
The BSE Metal Index slipped nearly 7%. Realty Index plunged 5%. Healthcare, Auto, Bankex, Power, Oil & Gas and TECK fell 3-4%.
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