(RTTNews) - Friday, the Indian market tumbled on weak global cues after dismal U.S. unemployment data reinforced fears of deepening recession. Domestic issues such as weak corporate outlook, impending elections and ballooning fiscal deficit also weighed on the market.

Heavy selling across the board ahead of the long weekend pulled down stocks sharply lower in the afternoon, but the market recouped some of its losses in late trading helped by short covering and following reports that the government will provide additional resources to boost the economy and support the industry.

The BSE Sensex opened lower at 8,944 and fell to the day’s low of 8,763 before finishing at 8,843, down 199 points or 2.21% from the previous close. Meanwhile, the S&P CNX Nifty closed at 2,736, down 53 points or 1.90%.

On the BSE, the market breadth was extremely negative, with losers outnumbering gainers by 1656 to 758. The broad-based BSE 500 index gave off 2.02%, while the mid-cap and the small-cap indexes moved down around 1.65%, outperforming the broader market.

Stocks across the sectors ended in negative territory. Banking, IT, metal, telecom and oil/gas stocks bore the brunt of the selling. Twenty-eight of 30 Sensex stocks ended in the red. ACC and Maruti Suzuki bucked the weak trend and rose modestly.

ICICI Bank (down 7.07%), Reliance Communication (down 4.55%), Reliance Infrastructure (down 3.38%), TCS (down 3.23%), Sterlite Industries (down 3.16%), Reliance Industries (down 3.10%), Mahindra & Mahindra (down 3.07%), Larsen & Toubro (down 2.83%) and HDFC (down 2.80%) were the major decliners.

Banking stocks were the worst hit as weakness among their global peers offset hopes of rate cuts. Among the major losers in this space, ICICI Bank plunged 7.07%, Oriental Bank of Commerce slumped 4.14%, Axis Bank tumbled 3.94%, Yes Bank lost 3.59% and Bank of Baroda moved down 3.19%.

Oil marketing companies HPCL and IOC ended in the red due to a rally in crude oil price on Thursday, but BPCL ended up marginally.

Metal stocks came under significant selling pressure on weak demand outlook amid the deepening recession. Sesa Goa, JSW Steel, Steel Authority of India, NMDC, Sterlite Industries, Ispat Industries, Tata Steel and Nalco were some of the prominent decliners.

IT stocks declined as concerns over discretionary IT budgets offset possible gains on account of a weaker rupee. HCL Technologies plummeted 5.27%, Financial Technologies fell 4.71%, TCS declined 3.23%, Infosys lost 2.46% and Wipro moved down 2.29%.

Market heavyweight Reliance Industries lost over 3% on concerns that the deepening world economic crisis would squeeze demand for its petroleum products.

Bharti Airtel ended down 0.65% after the company said that it acquired a 1.11% stake in its subsidiary company Bharti Hexacom, from Mobile Telecommunications Company, KSC, Kuwait. Hindustan Zinc slipped 1.49% after it has cut zinc prices by 1.50%.

Educomp Solutions plunged 12.10% on reports that the stock market regulator is examining the matter with regard to dealings in the shares of the company on the stock exchanges.

Reliance Communication tumbled 4.55% following reports that the government is planning a special audit on the company and its subsidiaries. Aurobindo Pharma lost nearly 4% despite receiving temporary approval for Tenofovir Disproxil Fumarate tablets of 300 mg strength from the US FDA.

Jammu and Kashmir Bank declined 3.18% even as the bank signed an agreement with the Jammu and Kashmir state government to set up 1109 kiosks in all the 22 districts of the State.

Avantel was locked in the 5% upper circuit limit after the company bagged an order worth Rs.6.85 crore from the Ministry of Defence, Government of India, for supply of Satellite communication products to Coast Guard.

Satyam Computer shed early gains and moved down 1.73% after the company law board allowed the company to induct a strategic partner and raise funds through preferential allotment of shares. ABB rose 1.82% after reporting strong results for the 12 months ended December.

Educomp Solutions topped the traded value with a turnover of Rs.293.70 crore followed by Reliance (Rs.170.30 crore), United Spirits (Rs. 153.30 crore), ICICI Bank (Rs.127 crore) and SBI (Rs.92 crore).

Satyam topped the traded volume with trades of around 1.44 crore shares followed by Firstsource (80.20 lakh), Wire & Wireless (76.67 lakh), Unitech (74.40 lakh) and Spice Tele (65.67 lakh).

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2009 RealTimeTraders.com, Inc. All Rights Reserved

Posted in Categories: Australia, Releases, Stocks, USA.

Subscribe by RSS Subscribe by Email