Market meltdown: Sensex ends 2.9 per cent lower

Market meltdown: Sensex ends 2.9 per cent lower

Wednesday, January 5, 2005 (Mumbai):

Stock markets plunged today by more than 300 points before making a partial recovery towards end of the session.

The bluechip Sensex fell by 316 points to an intra-day low of 6335 in the afternoon session. But in the last hour of trading, the 30-share Sensex made a partial recovery on the back of buying at lower levels.

Sensex was down 192 points or 2.89 per cent to close at 6,458.

Markets witnessed selling pressure across the board. Metal, banking and technology shares were beaten down.

Today's decline was the biggest since the crash of Black Monday, May 17, last year. Despite the huge selling pressure, markets did not slip into a panic mode.

The broader markets also came under pressure. The 50-share NSE Nifty fell 113 points to an intra-day low of 1991. By the closing bell, the Nifty had partially pulled back some of its losses.

Nifty was down 71 points or 3.4 per cent to close at 2,032.

Market correction

Metals were weak after a crash on the London Metal Exchange. Stocks from all sectors came under a sharp correction.

Heavy losses were seen in Balaji Telefilms, Asian Hotels, Essar Steel, Morepen Labs, Saw Pipes, Tata Teleservices and Hero Honda.

The Reliance pack also posted heavy losses, with IPCL shedding over 5 per cent. Reliance Energy fell by over 2.5 per cent while Reliance Industries ended marginally lower.

Infotech slips

Technology stocks moved down sharply as frontline techs buckled under selling pressure.

Wipro lost nearly 6 per cent, while Satyam shed over 5 per cent. Infosys and NIIT shed around 2 per cent each. TCS lost about a per cent.

Polaris lost over 6 per cent, Tata Elxsi shed 7 per cent, while Trigyn Technologies plunged over 10 per cent.

Steel, oil slip

The metal meltdown showed no signs of abating, with most scrips nosediving. Ispat Industries led the losses in the steel sector plunging nearly 8 per cent.

Essar Steel, JVSL and Sal Steel all shed between 6-7 per cent. JISCO, Jindal Steel, Sesa Goa, TISCO and SAIL also lost over 4 per cent each.

Saw Pipes plunged over 8 per cent.

In the Aluminium sector as well, NALCO plunged nearly 10 per cent while Hindalco shed over 4 per cent.

The oil and gas counter also ended in the red, as MRPL, GAIL and Essar Oil clocked losses of between 6-7 per cent each.

ONGC, IOC, IBP and Bongaigaon Refinery also lost over 3 per cent each, but HPCL shed over 5 per cent.

Cement firm

Cement scrips fared better on reports of cement prices firming up. But while some stocks in the sector managed to stay on positive turf, most of the others moved down from the morning levels of gains.

Birla Corp, Gujarat Ambuja and Shree Cements were the only stocks which managed to end in the green with marginal gains.

ACC remained flat, but Madras Cements and Grasim slipped into the red.

Wednesday's bloodbath at the markets has come as a surprise both for small and institutional investors. But dealers say this is just a temporary correction and things are going to look up in the future.

(With PTI inputs)