Weakness prevailed on the bourses in mid-afternoon trade. The 30-share BSE Sensex was down 485.94 points. It was 447.25 points above its 2-year low struck in early afternoon trade. Stocks across the globe witnessed a free-fall on concerns that the deepening of the credit crisis will push the global economy into a recession.
Wipro fell more than 10% while Jaiprakash Associates fell more than 8.5%. On the other hand, Ranbaxy Laboratories gained more than 5%.
US stock futures were lower pointing to weak opening of US stocks on Wednesday, 8 October 2008. Nasdaq futures were down 41.50 points while Dow Jones futures fell 304 points. In a major development , the UK Treasury announced a $87.4 billion plan to inject money into the banking system in a bid to restore confidence in the financial system
At 15:28 IST, the BSE 30-share Sensex was down 485.94 points or 4.34% to 11,188.01. The index tanked 954.48 points at the day's low of 10,740.76 in early afternoon trade, its lowest level since 2 August 2006. The Sensex fell 379 points at day's high of 11,316.24, in early trade.
The S&P; CNX Nifty was down 130.65 points or 3.62% to 3,475.95. The index hit a low of 3,329.45 in early afternoon trade, its lowest level since 12 September 2006.
The BSE Mid-Cap index was down 6.99% at 3,959.52 and the BSE Small-Cap index was down 6.62% at 4,646.68. Both these indices underperformed the Sensex.
The market breadth was extremely weak. On BSE, 252 shares advanced as compared to 2,259 that declined. 28 shares remained unchanged.
India's largest private sector company by market capitalization and oil refiner Reliance Industries was down 3.36% to Rs 1,619.95. The stock recovered from 52-week low of 1,511 hit today. Reliance Industries will reportedly commission a new 5,80,000 barrels per day (bpd) refinery by the end of November 2008, ahead of the targeted December 2008 deadline.
Among the major gainers from A group were Edelweiss Capital (up 6.64% to Rs 388.90), Godrej Industries (up 5.72% to Rs 105.40), Dr. Reddy's Laboratories (up 4.34% to Rs 469.20) and Tata Power Company (up 3.54% to Rs 795).
Among the major losers from A group were Opto Circuits India (down 18.77% to Rs 165.15), Aban Offshore (down 16.62% to Rs 1,093.45), Bajaj Finserv (down 16.35% to Rs 245), Indiabulls Securities (down 16.55% to Rs 23.95) and Triveni Enginnering Industries (down 16.25% to Rs 55.65) edged lower.
The BSE Auto index fell 3.87% to 3,375.92. Only three stocks gained from the sector, Mahindra & Mahindra (0.63%), Punjab Tractors (0.34%) and Bharat Forge (1.27%). While, other Auto sector heavy weights, Maruti Suzuki India, and Hero Honda Motor fell between 1.56% to 2.36%.
India's largest commercial vehicle maker by sales Tata Motors fell 5.26% to Rs 299.95. The stock hit a 52 week low of Rs 295.20 today. The company on Tuesday, 7 October 2008, signed an agreement with Gujarat to make the Nano car there days after the company pulled out of West Bengal.
From the Sensex pack, four stocks gained and rest 26 stocks fell.
India's largest drug maker by sales Ranbaxy Laboaratories spurted 5.61% to Rs 270.40 on reports the US Department of Justice had withdrawn a motion against the drugmaker for allegedly bringing adulterated and misbranded medications into the Unietd States. The stock was the major gainer form the sensex pack.
Tata Power Company (up 2.62% to Rs 787) and DLF (up 0.03% to Rs 302.15) were other gainers from Sensex pack.
Among the major losers from Sensex pack were Wipro (down 10.31% to Rs 275.50), Jaiprakash Associates (down 8.77% to Rs 92.10), ICICI Bank (down 7.05% to Rs 451), Satyam Computer Services (down 8.98% to Rs 254), Tata Steel (down 6.53% to Rs 334).
India's second largest IT exporter by sales Infosys Technologies tanked 5.98% at Rs 1,230 ahead of its Q2 September 2008 results on Friday, 10 October 2008. The stock recovered from a 52 week low of Rs 1,196 today. Reports suggest that Infosys Technologies is widely expected to lower its dollar guidance for the current year ending March 2009 on the back of the events that have shaken the financial world. It is also expected to miss its revenue guidance in dollar terms for the September 2008 quarter. However, the company is likely to beat its rupee guidance aided by the rupee's depreciation against the dollar.
India's largest IT exporter by sales Tata Consultancy Services (TCS) fell 6.39% to Rs 539. The stock hit a 52-week low of Rs 510 today. The company announced today it will acquire Citigroup Global Services, the India based captive business process outsourcing (BPO) arm of Citigroup Inc for all cash consideration of $ 505 million. In addition, TCS will provide process outsourcing services to Citi for $2.5 billion over a period of 9.5 years.
In Europe, France's CAC 40, Germany's DAX and UK's FTSE 100 fell between 4.04% to 5.84%.
Key benchmark indices in Asia were down by between 3.04% to 9.38% today, 8 October 2008, even as central banks across Asia stepped up to offer more support to commercial banks to try to ease painful pressure on funding costs from a vicious global credit squeeze.
US stocks plunged on Tuesday, 7 October 2008, amid escalating worries about credit markets and the financial sector. The Dow lost more than 500 points and all the major indexes slid more than 5%. The Standard & Poor's 500 index saw its first close below 1,000 in five years. Steps by the Federal Reserve to reinvigorate the dormant credit markets ultimately weren't enough to calm nervous investors.
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