Post-Market Commentary , Tuesday, July 01, 2008

Bears in command as Sensex sheds 1,460 points in three trading sessions

Bears are in complete command of the proceeding on the street thanks to record high oil prices, surging inflation, higher interest rates and political uncertainty which have rattled the bourses in the past few days. A third day of sell-off on the bourses today pulled the two key benchmark indices below psychological levels - the barometer index BSE Sensex fell below 13,000 mark and the S&P CNX Nifty fell below 4,000 level. Sensex has lost 1,460.14 points in the last three trading sessions.

Reliance Communications and Reliance Infrastructure fell more than 10% each in late trade. Banking, realty, auto and metal stocks fell. The market breadth was weak. Except NTPC all other Sensex stocks ended in the red. All the sectoral indices on BSE were in red.

Crude oil, India's biggest import, was trading above $141 a barrel today, 1 June 2008. It had hit a record $143.67 in the previous trading session.

The 30-share BSE Sensex lost 499.92 points or 3.71% at 12,961.68. It lost 557.51 points at day’s low of 12,904.09, its lowest level in more than 14 months.

S&P CNX Nifty was down 158.8 points or 3.56% at 3,896.75. Nifty hit a low of 3,878.20, its lowest level in more than 14 months.

From a record high of 21,206.77 hit on 10 January 2008, Sensex has lost 8,245.09 points or 38.87%. It has shed 7,325.31 points or 36.1% in calendar year 2008 thus far.

Sustained selling of Indian stocks by foreign institutional investors (FIIs) has also dented market sentiment. FII outflow in June 2008 totaled Rs 10095.80 crore (till 30 June 2008). FII outflow in calendar year 2008 totaled Rs 25465.30 crore.