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Bears out do bulls, Sensex nosedives to 14-month low
Published on Fri, Jun 27, 2008 at 20:03, Updated on Fri, Jun 27, 2008 at 20:20 in 
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BLOODBATH IN DALAL STREET: Sensex nosedived to a 14-month low by losing over 600 points on aggressive selling.
Other stories in the section:
Sensex closes 415 points down on weak global cues
Markets registered the biggest fall in nearly two weeks.
Mumbai: The Indian markets were completely under rough weather after a freefall in US markets. Crude prices are at a all-time high and a likely subsequent impact on Indian inflation has spooked the markets.
It was a dreadful opening session for the July series as well. All indices witnessed huge selling pressure.
The 30-share BSE barometer tanked 619.60 points to close at 13,802.22, a level last seen on May 10 last year. The key index dipped to day's low of 13,760.24 points and a rose to a high of 14,127.76 points. The 50-share Nifty on National Stock Exchange also dropped 179.20 points at 4,136.65, after touching the day's low of 4,119.20 and a high of 4,315.30 points.
Midcap index also did not performn well and ended the days trade in the red, down by 156 points. The market breadth was also very weak. Asian markets ended sharply lower following weak cues from US markets.
The biggest losers were NALCO, TATA Motors and Wipro. The country's biggest private sector lender ICICI Bank fell to its lowest in 21 months, while housing finance major HDFC lost a whopping dropped 8.15 per cent. Reliance Industries, the most valuable listed company having nearly 15 per cent weightage on the Sensex, fell 2.2 per cent at Rs 2,181.90.
DLF Ltd tumbled 4.8 per cent to Rs 424.20 as higher interest rates would slow home sales and erode profitability. Unitech, the second-biggest developer by market value, fell 1.6 per cent to Rs 182.80.
The major pull to the market came from the metal sector index by 640.96 points at 13,292.45, followed by capital goods index by 445.09 points at 10,442.14.
Bank index dropped by 345.64 points at 6125.95, oil and gas index by 289.75 points at 9387.63, PSU index by 261.09 points at 5821.62 and realty index by 2227.18 points at 4875.25.
IT index dropped by 177.11 points at 4,004.75, auto index by 204.83 points at 3689.92, power index, by 119.55 points at 2335.26, consumer durable index by 117.73 points at 3649.33, teck index by 124.29 points at 3093.63 and FMCG index by 69.47 points at 2073.15.
As the selling pressure gathered momentum, small-cap index tumbled by 191.01 points at 6938.07 and midcap index by 183.29 points at 5558.75.
Brokers said a weakening global trend and crude oil surging to new record of over 141 dollar a barrel also cast a shadow over the bourses.
Investor sentiment was also dampened by interest rate hike announced on Thursday by banks, notably SBI, as they fear a crunch in financial, commodity and realty sector sectors, brokers added.
(With inputs from PTI)
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