India's Stock Market - Biggest Fall in Two Months

[HenryTo]

Sensex witnesses biggest fall in two-months, loses 212 pts

MUMBAI, DEC 26 (PTI)

The bechmark sensex experienced overall loss of 212 points on the Bombay Stock Exchange today with most of the blue-chip stocks yielding hefty grounds on hectic selling by funds on approaching derivative December contract amid ongoing year-end holidays.

The Sensitive index dipped below 9100 points at 9050.51 before ending at 9085.89, revealing a fall of 171.02 points, its biggest fall since Oct. 27. It also had the biggest fluctuation among equity markets, including Japan's Nikkei.

The National Stock Exchange index Nifty fell 55.25 points to 2749.60 and Nifty futures for December delivery fell by 54.10 points at 2737.10.

Bears availed the opportunity of market's weakness and took a vicelike grip with bulls on the defensive and hammered down prices even as the top heavyweight Reliance Ind. Came under a selling onslaught induced by fears that investors may face difficulties in the derivatives roll-over as the company gets into the no-delivery period after January 17.

The sensex-heaviest Reliance Industries and other flag-ship companies like Reliance Energy, Reliance Capital and IPCL fell sharply, thus influencing the trading sentiment.

Attributing the sell-off partly to Christmas holidays and approaching year-end, brokers said the sentiment was dampened by a decision by the Authority for Advance Ruling, a quasi-judicial body for settling income-tax disputes, that the General Electric Pension trust is liable to be taxed in India.

Markets in the U.S., Europe, Australia, Hong Kong, Indonesia, Malaysia, New Zealand, the Philippines and Singapore were closed today for public holidays.

The Bank index was the biggest loser in today's bear-phase led by ICICI Bank, second-biggest commercial bank and about 72 per cent owned by overseas investors. The index was down by 161.29 points at 4899.86. Metal index lost 108.64 points at 6239.91 with segment major Tata Steel, Jindal Steel, Hindalco, Sesa Goa, Jindal Saw and Steel Authority of India.

PSU index fell by 98.17 points at 5246.07 followed by Auto index by 88.32 points at 4140.04. Capital Goods index fell by 69.61 points at 5576.99, Tech Index by 54.38 points at 2375.14, IT index 48.98 points at 3644.38, Oil and Gas index by 46.04 points at 4214.97, Consumer Durable index by 39.19 points at 3098.15 and FMCG index by 22.23 points at 1592.45.

Healthcare index fell by 40.11 points at 3008.86 after the shares of Glenmark Phar fell Rs.6.45 to Rs.291.75 after the maker of drugs for heart and lungs problems bought Bouwer Bartlett, a South Africa-based sales and marketing company.

Smallcap index crashed by 149.68 points at 5668.02 and Midcap index by 89.87 points at 4263.38.