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Sensex Hits 8-month Low: Financial Times
Mumbai, July 24: After bucking the declining trend on Tuesday, stock prices tumbled once again on Wednesday. The 30-share BSE Sensex hit an eight-month low, shedding a sizeable 70 points. The fall was mainly led by technology stocks which later spread to most others.
Mumbai, July 24: After bucking the declining trend on Tuesday, stock prices tumbled once again on Wednesday. The 30-share BSE Sensex hit an eight-month low, shedding a sizeable 70 points. The fall was mainly led by technology stocks which later spread to most others.
The weakness on the domestic bourses has mainly been attributed by brokers and market players to the contagion impact of the global fall in stock prices, ignited by accounting scams in the US. The net losses posted by most top-rung technology companies in the US added to the worries.
Frontline brokerages said domestic concerns about scanty rains in most parts of the country were also aggravating the fall. This apart, the fact that the companies posting heavy losses in the US are also large clients of frontline Indian software companies is another cause for concern, market players said. An example of this is Lucent Technologies, a major client of Wipro.
With Wednesday’s fall, the bellwether BSE-30 Sensex has lost 108.59 points — or 3.38 per cent — since the beginning of this week.
On Wednesday, the Sensex closed down 69.45 points at 3,107.48 points, off the day’s high of 3,167.60 points hit in early trades.
The Sensex, after opening at 3,163.45 points, hit an intra-day low of 3,107.48 points in late trades.
On the National Stock Exchange (NSE), the S&P CNX Nifty closed down 17.85 points at 1,004.05 points.
Hitesh Sheth, technical analyst at Prabhudas Lilladher Securities, said: “The undertone on the bourses was cautious to weak, amid concerns of global markets hitting five to six year lows, and worries of accounting scams and losses posted by many tech pivotals of the US.”
Frontline brokerages said domestic concerns about scanty rains in most parts of the country were also aggravating the fall. This apart, the fact that the companies posting heavy losses in the US are also large clients of frontline Indian software companies is another cause for concern, market players said. An example of this is Lucent Technologies, a major client of Wipro.
With Wednesday’s fall, the bellwether BSE-30 Sensex has lost 108.59 points — or 3.38 per cent — since the beginning of this week.
On Wednesday, the Sensex closed down 69.45 points at 3,107.48 points, off the day’s high of 3,167.60 points hit in early trades.
The Sensex, after opening at 3,163.45 points, hit an intra-day low of 3,107.48 points in late trades.
On the National Stock Exchange (NSE), the S&P CNX Nifty closed down 17.85 points at 1,004.05 points.
Hitesh Sheth, technical analyst at Prabhudas Lilladher Securities, said: “The undertone on the bourses was cautious to weak, amid concerns of global markets hitting five to six year lows, and worries of accounting scams and losses posted by many tech pivotals of the US.”
The drought-like situation in some parts of the country also pushed down share prices of auto companies, particularly two-wheelers which depend a good degree on rural demand. Bajaj Auto closed down 3.52 per cent at Rs 470.90, Telco down 3.29 down to Rs 142.35 and Hero Honda Motor down 2.50 per cent to Rs 298.80.
Other pivotals which closed weak include Reliance, down Rs 5.85 at Rs 250.95, ITC down Rs 32.40 at Rs 618 and Hindustan Lever, which closed down Rs 1.55 at Rs 183.35.