Nifty falls below 6,000; Sensex below 20,000

The market slumped in early trade with barometer index BSE Sensex falling below 20,000 mark on weak global markets. The S&P CNX Nifty fell below 6,000. Capital goods and power stocks declined. FMCG stocks edged higher. Reliance Industries declined. Market breadth was strong. Asian markets which opens before Indian markets were trading lower today. US stocks slumped on Friday, 14 December 2007, on concerns that surging inflation may prevent the Federal Reserve from lowering interest rates.

At 10:24 IST, the 30-share BSE Sensex was down 230.49 points or 1.15% to 19,808.52. It hit a low of 19,774.12 so far during the day. At day’s low Sensex lost 256.71 points.

The S&P CNX Nifty declined 103.1 points or 1.7% to 5,944.60.

Market breadth was strong. On BSE, 1,811 stocks advanced, 806 stocks declined and 45 stocks remained unchanged. 26 out of 30 stocks from the Sensex pack declined.

BSE Mid-Cap index rose 0.18% to 9,488.73. It hit all time high of 9,541.03 today. BSE Small-Cap index rose 1.29% to 12,353.42 . It hit a all time high of 12,402.86 today.

India’s largest private sector firm by market capitalization & oil refiner Reliance Industries declined 0.87% to Rs 2,864.

Capital goods stocks declined. Larsen & Toubro (L&T) (down 0.7% to Rs 4,144.85), Bharat Heavy Electricals (down 1.34% to Rs 2,527) and Suzlon Energy (down 3.25% to Rs 1,895) edged lower.

Power stocks declined. Reliance Energy (down 0.65% to Rs 1,896), NTPC (down 1.58% to Rs 242.70) and Power Grid corporation (down 1.82% to Rs 1,43) edged lower.

FMCG majors rose. ITC (up 1.5% to Rs 203.60) and Hindustan Unilever (down 0.25% to 218) edged higher.

Realty stocks declined. Ansal Properties & Infrastructure (down 1.82% to Rs 376.90), Peninsula Land (down 4.44% to Rs 141.05) , DLF (down 0.9% to Rs 1,012), Indiabulls Real Estate (down 2.42% to Rs 722.50) edged lower.

Asian markets were trading lower today, 14 December 2007. Hong Kong's Hang Seng (down 2.6% at 26,846.25), Taiwan's Taiwan Weighted (down 2.28% at 7,932.78), Singapore's Straits Times (down 1.76% at 3,405.43), Shanghai Composite (down 1.79% to 4,918.50), Japan's Nikkei (down 0.97% to 15,363.25), South Korea's Seoul Composite (down 1.67% at 1,863.96) declined.

US stocks swooned on Friday, 14 December 2007, on concerns that surging inflation may prevent the Federal Reserve from lowering interest rates enough to pull the economy out of the grip of a housing and credit crisis. The three major indexes tumbled more than 1% each, and posted their worst week since 11 November 2007, after a report showing a jump in the consumer price index in November 2007.

Meanwhile, the advance tax figures, which will available this week, would trigger expectations regarding corporate performance of India Inc. in Q3 December 2007.

Bharatiya Janata Party (BJP) is poised to retain power in Gujarat but with a reduced majority losing some ground in Sunday (16 December 2007)'s second and final phase of polls in northern and central parts which was worst hit by 2002 communal riots, according to exit polls by four TV channels.

As per provisional data, FIIs sold shares worth a net Rs 647.10 crore on Friday, 14 December 2007. Domestic institutional investors bought shares worth a net Rs 105.18 crore on that day.

FIIs were net sellers of index futures worth Rs 1359.88 crore on Friday. They were net sellers to the tune of Rs 50.63 crore in index options on that day. FIIs net sold stock futures to the tune of Rs 785.05 crore. They net sold individual stock options to the tune of Rs 10.71 crore.

The 30-share BSE Sensex declined 73.56 points or 0.37% to 20,030.83 on Friday. The S&P CNX Nifty declined 10.4 points or 0.17% to 6,047.70 on that day.