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Share prices crash on bull liquidation, global downswing

According to marketmen, the economy stocks suffered badly while infotech, pharma and FMCG also moved down considerably on sustained selling pressure.

Among the Sensex group, ACC, Hindustan Lever, BHEL, NIIT, ICICI, Nestle, Larsen & Toubro, Hindalco, Colgate, Glaxo and Infosys emerged as top losers while Novartis, Telco and NIIT were the major gainers during the day.

Marketmen attributed the major fall in the local bourses to the 3.7 per cent and 2.6 per cent fall in the Nasdaq and Dow Jones and their reflection in the Hong Kong and other markets on Monday.

The Hang Seng Index at Honkong plunged by 4.04 per cent and Singapore ended down by 2.39 per cent at the end of Monday's trading.

Mirroring the bearish phase, the 30-share Sensex opened at 5338.67 points steady from the previous close of 5335.80 points, firmed up to touch the day's high of 5345.30 points, crashed by 146 points to touch the day's low of 5186.32 points, before closing at 5202.29 points, showing a net loss of 130.51 points or 2.45 per cent from the previous close.

Similarly, the S&P CNX Nifty index at the NSE moved down sharply by about 55.60 points at 1543.50 points (provisional closing) from the previous close of 1599.10 points.

Besides the worldwide downtrend, marketmen listed reasons like higher badla (carry forward) rates, the brokers' unhappiness over the compulsory rolling settlement in 100 scrips.

The broad-based BSE-100 index crashed down by 77.72 points at 2875.37 points as against the previous close 2953.09 points.

According to market analysts, the broker community has not been quite happy with the SEBI's decision to launch rolling settlement in 100 scrips. The brokers felt that with the new arrangement, various counters will lose liquidity as well as volume of business.

With the new arrangement, the arbitrage opportunities between the BSE and NSE also likely to be affected badly, they said.

Despite the overall bearish trend, shares like Pentafour Software, Sterlite, BPL, ICICI Bank, Century Textiles, Global Trust Bank and Zuari, Aftek Business, Aptech performed smartly and even hit the upward circuit filters during the day, while Madras Cement, Wockhardt, Crompton Greaves, Escorts, Madras Refineries, E Merck posted heavy losses, dealers said.

Among the other indices, the BSE-200 and Dollex indices closed lower by 14.80 and 5.96 points at 641.84 and 250.61 points as against the previous close of 656.64 and 256.57 points.

The BSE-500 index declined sharply by 42.65 points at 1933.76 points from the previous close of 1976.41 points.

Total turnover on the BOLT system at the BSE reported during the day was Rs 43.372 billion.

Zee Telefilms topped the list of turnover by registering highest turnover of Rs 4.33 billion, Global Telesystems Rs 3.43 billion, Himachal Futuristic Communications Rs 3.38 billion, Silverline Rs 3.33 billion, Pentafour Software Rs 2.77 billion, Reliance Rs 2.43 billion.

Other actively traded counters were Satyam Computers, Digital Equipment, SSI Limited, HCL Infosys, Ranbaxy Labs, SBI, ITC, L&T and NIIT.

UNI

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