Global crash takes toll on Indian SEs

According to leading brokers, FIIs reportedly unloaded shares worth Rs 100 crore on the BSE alone after the mid-session., when reports about the global crash came in.

The Tokyo stock market’s benchmark fell sharply to end at its lowest level for more than two years on Wednesday, as the yen’s slide against the dollar sparked concerns among overseas investors about the value of yen-denominated assets. The selling by foreign funding institutions was triggered by a fresh fall in Hong Kong stocks leading to a loss of about 4 per cent in the key Hang Seng index. The support extended by domestic financial institutions failed to arrest the steep fall in Sensex. Apart from this, the sharp fall in the value of the rupee against the dollar and uncertainty over the launch of MTNL’s GDR issue also affected the sentiment.

As a result of the fresh crash in domestic and global markets, speculators will refrain from making fresh commitments in various counters, brokers said. However, local FIs continued to pick up stocks of heavy weighted index scrips like Tata Steel, Telco, Reliance, SBI and others. On the other hand, Morgan Stanley, Jardine and Capital International were reportedly placing sell orders at the counters of Hindustan Lever, ITC, ICICI and BHEL.

On the BSE, the business was restricted to the A group. The exchange recorded a turnover of Rs 677.40 crore with the A group contributing to the extent of Rs 658.59 crore. The volume in the B2 group where over 5,500 shares are listed amounted to just Rs 2.06 crore, or 0.30 per cent of the total volume Share prices of banks and FIs, which were going up, suffered a setback.

On the NSE, IDBI attracted a lower level circuit filter at Rs 89.95. The stock closed with a net loss of Rs 7.05. ICICI also attracted a circuit at Rs 78.40, however, closed slightly better at Rs 78.90 registering a loss of Rs 4.55. Reliance touched the 52-week low to Rs 168.25, a 3.58 per cent drop over the previous close. On the NSE, the scrip touched Rs 169.25. In all, 14 A group shares fell to their 52-week lows. Local punters associated with a scam-tainted broker and Calcutta line operators were said to be liquidating huge positions in ITC.

Marketmen feel the market will fall another 150-200 points in the coming days as stock and currency markets all over the world are in turmoil. This will be reflected in India as well.