Post Market - Markets crash on Fed stance, Sensex plunges 526 pts Analysis for Jun 20, 2013

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Triggered by fall in rupee and US Fed"s stance on monetary policy, the domestic bourses witnessed bloodbath on D-street with the BSE Sensex plunged by over 526 points, its biggest fall in nearly two years, to end at 18,719.29. Further, the rupee which slumped to an all-time low of Rs 59.94 also dampened investor sentiment which led to massive selling across all the sectoral indices.

US Fed Chairman Ben Bernanke last night ended weeks of speculation saying that the Federal Reserve will likely slow its bond-buying programme later this year and end it next year because the US economy is showing Strong sign of recovery. A pullback in Fed's USD 85 billion-a-month programme is being interpreted as a move that will hit inflows to emerging markets like India.

The 30-share barometer index of Bombay Stock Exchange, Sensex closed at 18719.29 down by 526.41 points or by 2.74 per cent, and the NSE Nifty ended at 5655.9 down by 166.35 points or by 2.86 per cent.

The BSE MIDCAP settled at 6115.66 down by 120.13 points or by 1.93 per cent, while the BSE SMLCAP ended at 5738.07 down by 100.7 points or by 1.72 per cent. During the day"s trading, the BSE Sensex touched intraday high of 19069.2 and intraday low of 18687.19, while the NSE Nifty touched intraday high of 5755 and intraday low of 5645.65.

The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 2561, shares advanced were 661 while 1782 shares declined and 118 were unchanged.

The top losers of the BSE Sensex pack were Jindal Steel & Power Ltd. (Rs. 222.15,-9.62%), Tata Steel Ltd. (Rs. 272.40,-6.25%), Hindalco Industries Ltd. (Rs. 97.70,-6.24%), Bharat Heavy Electricals Ltd. (Rs. 171.30,-4.99%), Sterlite Industries (India) Ltd. (Rs. 81.40,-4.52%), among others.

Among the thirteen sectoral indices on BSE, Realty index was leading the fall and was trading lower at 1526.08 down by 83.37 points or by 5.18 per cent. Indiabulls Real Estate Ltd. (Rs. 65.05,-9.15%), DLF Ltd. (Rs. 175.50,-7.17%), Housing Development & Infrastructure Ltd. (Rs. 36.15,-6.10%), Unitech Ltd. (Rs. 21.05,-5.39%), Anant Raj Ltd. (Rs. 52.95,-3.99%) were among the notable loser on BSE.

Following the Realty index, BSE Metal index was at 7716.5 down by 374.99 points or by 4.63 per cent. Jindal Steel & Power Ltd. (Rs. 222.15,-9.62%), Tata Steel Ltd. (Rs. 272.40,-6.25%), Hindalco Industries Ltd. (Rs. 97.70,-6.24%), Steel Authority of India (SAIL) Ltd. (Rs. 53.55,-5.31%), Sterlite Industries (India) Ltd. (Rs. 81.40,-4.52%) were among dragging the market.

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Story first published: Thursday, June 20, 2013, 21:00 [IST]
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