Thursday, the Indian market is trading sharply lower, as rattled investors indiscriminately sold off stocks across the globe. Wall Street tumbled to a three-year low on Wednesday, as fears that the global credit crisis could worsen affected investor sentiment. The Asian markets are also declining sharply despite an attempt by the Federal Reserve to rescue insurer AIG. Reports that Morgan Stanley could be the next victim of the credit crunch and a rebound in the price of crude oil are also weighing on market movement.
Traders are cautious ahead of the release of wholesale inflation data after the close of the market today. Analysts have estimated 12.09% growth in the wholesale inflation for the week ended September 6 compared to 12.10% growth during the previous week.
After opening lower at 12,713, the BSE Sensex is currently trading off its early lows at 12,638, down 625 points or 4.71%. The mid-cap index is down 5.07%, the small-cap index is losing 4.73% and the broad-based BSE 500 index is down 4.79%. The S&P CNX Nifty is trading at 3,833, down 4.36%.
Among the Sensex stocks, all the 30 stocks are currently trading in the red. Stocks across the board are declining sharply. Realty, telecom, metal and IT stocks are the major losers. On the BSE, market breadth is extremely negative, with only 155 stocks gaining compared to 1664 stocks that are declining.
Bharti Airtel (down 7.66%), Reliance Communication (down 7.26%), Jaiprakash Associates (down 7.10%), DLF India (down 7.02%), Satyam Computers (down 6.69%), Reliance Infrastructure (down 6.56%), Ranbaxy Laboratories (down 6.37%), HDFC (down 6.04%), TCS (down 6.02%), Sterlite Industries (down 5.99%), ICICI Bank (down 5.76%), BHEL (down 5.73%), Infosys Technologies (down 5.46%), Tata Steel (down 5.45%), HDFC Bank (down 5.43%) and Tata Power (down 5.06%) are the major decliners.
Abbott India is down 1.61% after the company issued a post buyback public announcement to the shareholders. Dalmia Cement is losing 7.98% after the company called for a shareholder meeting on October 17, to decide on a scheme of amalgamation with M/s Eswar Cements Pvt. Company.
AIA Engineering is declining 5.11% after the company fixed the record date for a stock-split issue of its equity shares. Autoline Industries is down 5.16% after its board of directors approved a resolution to acquire 100% stake in Koderat Investments Company.
Golden Tobacco is down 8.02% after the company scheduled a meeting of the board of directors on September 24, to approve the proposed de-merger scheme. BNK Capital is up 8.11% after the company said it has allotted equity shares to specific investor companies on a preferential basis. Shriram EPC is down 4.98% even as the company bagged new orders worth Rs.810 million from Rashtriya Ispat Nigam.
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