Market bleeds on price,global worries

IT sector suffered the most on likely economic slowdown in the US and Europe,the two biggest markets for Indian intofech firms.

Industrial growth (IIP) in the country revived moderately to 8.8 per cent in June this year on the back of a smart recovery in the manufacturing sector and better off-take of capital goods.

Selling by foreign institutional investors (FIIs) and growing fears of another recession in US,the world’s biggest economy,pushed the 30-share Sensex down by 466.24 points,or 2.69 per cent,to end at 14-month closing low at 16,839.63.

The S&P CNX Nifty also dropped by 138.30 points,or 2.65 per cent,to settle at 5,072.95.

An unprecedented downgrade of the US credit rating by Standard & Poor’s on August 5 led investors to reduce exposure to risky assets.

A broad-based rebound was witnessed on the domestic bourses on Wednesday as US Federal Reserve’s decision on Tuesday to keep US interest rates ultra-low for two more years raised expectations of increase in fund inflows.

However,the Sensex continued its downwards march as an increase in food inflation raised concerns that the central bank will stick to its tight monetary policy.

Food inflation surged to a four-and-half month high of 9.90 per cent during the week ended July 30 as against the 8.04 per cent in the previous week.

Bank stocks fell on concerns higher interest rates may crimp loan growth.

Among the major indices,the BSE-IT fell by 8.32 per cent,the BSE-Teck by 7.49 per cent,the BSE-Metal by 5.83 per cent,the BSE-Realty by 4.30 per cent and the BSE-Oil & Gas dropped by 2.54 per cent.

However,ducking the negative trend,the BSE-Auto index shot up by 2.67 per cent.

From the Sensex pack,Tata Power fell by 11.81 per cent,Tata Steel 10.61 per cent,Tata Motor 9.93 per cent,TCS 9.98 per cent,Hindalco Ind 7.37 per cent,Sterlite Ind 5.64 per cent and Jindal Power lost 3.19 per cent.

However,Mahindra & Mahindra shot up by 13.02 per cent Hero Motocorp 5.99 per cent,Maruti Suzuki 4.50 per cent,Bajaj Auto 4.07 per cent,NTPC 1.89 per cent,Jaiprakash Associates 1.81 per cent and ONGC rose by 1.16 per cent.

The total turnover at BSE and NSE moved up to Rs 14,283.61 crore and Rs 62,643.64 crore,respectively as against the last weekend’s level of Rs 13,786.23 crore and Rs 55,270.44 crore.

Oils and Oilseeds: Refined palmolein prices reacted downwards at the oils and oilseeds market during the week under review due to lack of buying support from retailers and stockists.

Groundnut oil ruled steady in the absence of worthwhile buying support.

Castorseeds bold and castoroil commercial declined further in the absence of enquiries from shippers and soap manufacturers.

Castorseeds futures also dropped further on poor export orders amid weak spot demand.

Linseed oil,however,continued to rule steady in the absence of market moving factors.

In the edible oils segment,refined palmolein resumed lower at Rs 554 and declined further to close at Rs 549 from preceding weekend’s level of Rs 556,showing a loss of Rs 7 per 10 kg.

Groundnut oil opened higher at Rs 970,but later settled at its last weekend level,unchanged at Rs 965 per 10 kg.