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Sensex Falls to 3-Week Low

Negative global sentiments fuelled a sell-off on Indian stock markets

Downbeat global stock market cues sparked a sell-off on Indian bourses causing the Sensex to close at its 3-week low, led by corporate giant Reliance Industries, which was down now for the third consecutive day after an adverse court ruling on gas supply – the scrip fell to its lowest level in a month dropping 4.2 per cent to Rs 2,051.

With the Nasdaq and Dow Jones both ending in the red yesterday, there was not enough positive sentiment left in Indian markets to allow the indices to retain their hold on the green belt. Markets in Japan and most of Asia were also depressed and the European ones started negatively.

While the Bombay Stock Exchange sensitive index Sensex fell by 2.9 per cent to 14,522.84 points, a loss of 435.07 points, on the National Stock Exchange, the Nifty fell by 3.58 per cent to 4,356 points, a loss of 161.6 points.

Many traders are saying that this may well be the beginning of the much-talked about correction as market valuations have risen to unsustainable levels. Also, investors are not willing to start punting in a major way till the broader contours of government economic policy are not unveiled during the upcoming Budget.

However, giving positive signals on another front, advance tax paid by India Inc for Q1 of the fiscal is at Rs 23,000 crore, which is at par with the one paid in 2008 when the economy was growing at almost 9 per cent.

While the recent days’ tallies have been mostly negative, yet it should not be forgotten that the Sensex gained as much as 90 per cent from March to early June and the recent fallback should be put into proper perspective. In addition, traders are saying that the falls are predominantly driven by profit-booking motive ahead of the presentation of the Budget which is likely to be affected by the resultant uncertainty that will drive extreme volatility.


Top Gainers (Group A)
Company  Last Traded Price  Previous Close  Change(%)
Castrol India  366.00 347.40 5.35
EIH  129.45 124.75 3.77
Piramal Healthcare  277.30 268.10 3.43
Cadila Healthcare  352.00 343.90 2.36
Jain Irrigation Systems  664.85 650.50 2.21
Top Losers (Group A)
Company  Last Traded Price  Previous Close  Change(%)
Hindustan Construction Company  96.55 107.65 -10.31
Lanco Infratech  344.00 378.60 -9.14
Jet Airways India  238.50 262.25 -9.06
Indian Hotels  64.85 71.30 -9.05
Mangalore Refinery & Petrochemicals  86.60 95.15 -8.99