Markets butchered ahead of inflation nos; Bank, Realty down 5 per cent

21 August 2008

Markets have shattered completely ahead of inflation numbers, which are likely to inch up higher. CNBC-TV18 poll suggests that it may be at 12.62% for the week ended August 9 as against 12.44% in earlier week. Rate sensitives and infrastructure stocks slaughtered very badly. Oil & gas, technology and metal also got hammered. Sell off in European and Asian markets fueled to negative sentiments as well.

Only one stock in Sensex 30 and three stocks in Nifty Fifty ended in green. The Sensex closed at 14,243.73, down 434.50 points or 2.96% after hitting an intraday low of 14,201.18.

BSE Midcap Index was down by 118.91 points or 2.04% at 5,707.46 and Small Cap Index ended at 6,937.02, down 129.21 points or 1.83%.

Dealers feel that there was selling in Nifty futures to hedge ahead of inflation numbers and also a buzz that two large long-only funds have sold today.

Major contributors to this free fall are SBI, Reliance Ind, ONGC, DLF, ICICI Bank, Reliance Comm, BHEL, HDFC, HDFC Bank and Bharti Airtel.

Banking, realty and infrastructure stocks smashed out on fears that if inflation rises further then another rate hike by RBI is possible in near term.