Nifty ends below 3000; realty, banks plunge

23 Dec 2008, 1709 hrs IST, ECONOMICTIMES
Indian equities market ended lower for a second consecutive day as traders resorted to booking profits. Delay in much awaited financial stimulus, building tension between India and Pakistan and volatility in derivative contracts ahead of F&O series settlement also weighed on sentiment.

“Sentiments turned negative following weak global cues. Markets have witnessed a good pull-back rally and traders turned sellers after Nifty broke 3000 and today was another profit booking day. Derivative settlement also put indices under pressure,” said DD Sharma,
senior vice president, Anand Rathi Securities.

Bombay Stock Exchange’s Sensex ended at 9,686.75, down 241.60 points or 2.43 per cent. The 30-share index touched an intra-day low of 9643.56 and a high of 9838.38.
National Stock Exchange’s Nifty closed at 2968.65, down 2.32 per cent or 70.65 points. The broader index touched a high of 3040 and a low of 2957.05.

Midcaps and smallcaps fell in line with bluechips. BSE Midcap Index slipped 2.58 per cent and BSE Smallcap Index declined 2.56 per cent.

Traders hammered overleveraged realty, banks and capital goods stocks. Selling pressure was also seen in second rung stocks.
BSE Realty Index was down 4.84 per cent, BSE Bankex fell 3.76 per cent and BSE Capital Goods Index slipped 3.61 per cent.

“Outlook is positive despite two weak sessions and as long as Nifty maintains 2950, intermittent trend is up. Other factors like expected financial stimulus and growing tension between India and Pakistan is likely to influence sentiments,” Sharma added.

Biggest Sensex losers comprised Satyam Computer (-13.55%), Jaiprakash Associates (-10.18%), Tata Motors (-7.04%), Sterlite Industries (-6%) and Larsen & Toubro (-4.89%).

Reliance Communications, up 1.24 per cent, managed to end with modest gains.

Anil Ambani’s Reliance Communications (RCOM) has set aside $1 billion for its 3G (third generation) telecom services rollout. The approximately Rs 4,700 crore investment
in 3G, will be funded through RCOM’s internal cash reserves of Rs 12,000 crore.

Jaypee Group’s decision to merge with its hotel, cement, real estate and construction subsidiaries Jaypee Hotels, Jaypee Cement, Gujarat Anjan Cement and Jaiprakash Enterprises with the flagship public-listed company Jaiprakash Associates didn’t go well with the investors
.

The merger will bring the group’s all cement companies under one roof enhancing economies of scale and effectively deal with demand-supply mismatch in different regions, the Delhi-based company said. However, the scrip plunged sharply.

Investors continued to dump Satyam Computers shares on concerns of corporate governance after the IT major took an U-turn from acquiring Maytas Infra and Maytas Properties. Satyam Computer Services, plunged 13.55% on rumours its founder and chairman Ramalinga Raju has resigned from the board.

Market breadth on BSE was negative with 1752 declines against 725 advances.