Markets see sharp sell-off led by oil, bank, CG, tech, telecom

26 December 2008

The benchmark indices continued the losses for the fourth consecutive day and closed with sharp cut - the Nifty closed below 2900 mark and the Sensex below 9500 level. The markets had started on a positive note with some volatility, and traded higher in the first half of session, which was looking like markets would stay higher. But decline in advance tax collection numbers and worrisome situation over Indo-Pak border were the two main reasons, which hammered the markets in second half of session.

Shares of oil, banking, capital goods, metal, technology, power, and realty companies took beating on the bourses. Midcap and small cap stocks also followed the same trend.

The 50-share NSE Nifty plunged 59.60 points or 2.04% to 2857.25 and the 30-share BSE Sensex shut shop at 9,328.92, down 239.80 points or 2.51% from previous close. Among the broader indices, BSE Midcap Index lost 38.92 points or 1.24% at 3,106.68 and Small Cap Index fell 51.66 points or 1.43% at 3,548.54.

Volumes were pretty low today due to Christmas Holidays. Total traded turnover stood just at Rs 34,554.37 crore. This includes Rs 7,233.81 crore from NSE Cash segment, Rs 24,153.90 crore from NSE F&O and the balance Rs 3,166.66 crore from BSE Cash segment.

There is a bit of worrisome situation at Indo-Pak border, which created some panic selling. All 3 defence chiefs are going to meet Prime Minister Manmohan Singh in Delhi. There defence chiefs will brief PM on latest security situation.

Decline in advance tax collection was another reason, which knocked down markets a bit. Advance tax collection for third quarter was down by 22.4% at Rs 42,600 crore and for the nine months period, April-December advance tax declined by 2.58% at Rs 1.13 lakh crore versus Rs 1.16 lakh crore (YoY).