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      Sensex nosedives 1.09% amid negative market breadth

      CarTrade Editorial Team

      CarTrade Editorial Team

      The overall Sensex suffered a nosedive, on 28th December 2011, for the second consecutive day, wherein even giant company Reliance Industries Limited (RIL) saw a downfall of 2%. The barometer index, Bombay Stock Exchange Sensex, showed temporary low of 173.02 points or 1.09%. Moreover, the market breadth did not give any positive signs and was rather weak.

      Banking stocks that are struggling against interest rates came down to prevent a possible increase in bad loans amid slow economic trends. However, realty stocks witnessed mixed outcomes as metal stocks fell and few power stocks were able to ward-off the threats. Auto stocks saw further decline as exorbitant interest rates played spoilsport.

      The index went up by 13.85 points during the day's high of 15,887.80 in early trade. The index went down by 207.49 points during the day's low of 15,666.46 in early afternoon trade. The low emerges as the worst figure since 22nd December 2011. The S&P CNX Nifty fell by 52 points or 1.09% to 4,698.50 and the index witnessed a low of 4,685.65 in intraday trade. BSE recorded a turnover of Rs. 1270 crores as against much high figure of Rs. 1343.01 crores on 27th December 2011.

       

      Sensex nosedives 1.09% amid negative market breadth
       

      On BSE, 1,709 shares went down as compared to the 1000 shares that indicated growth. It must be noted that in totality, around 121 shares had a flat performance and remained neutral. Of the 30-member Sensex pack, 25 were hit and 5 managed to take control of the situation and rise. Infosys, Coal India and Cipla escalated between 0.39% and 1.2%.

      India's largest bike manufacturer in terms of sales, Hero MotoCorp witnessed a downfall of 0.05%. India's second largest motorcycle maker by sales, Bajaj Auto also lost 1.59%. The country's biggest utility vehicle maker in terms of sales, Mahindra & Mahindra (M&M) was forced to shed 3.18%. In view of the discouraging show put up by its shares, M&M has decided to hike prices of its vehicles by up to 3% during the arrival of the New Year.

      The move is also being seen as a cushion against the several blows given by rising raw-material costs. In the month of November 2011, the company managed to tick its total sales by 52.7% to 40,722 units as against the same time in 2010. The company will come up with new models manufactured by South Korean unit Ssangyong Motor Company during the New Delhi Auto Expo 2012. India's largest car maker, Maruti Suzuki India Limited suffered a low of 0.39%. Maruti also plans to showcase its all-new multi utility vehicle Ertiga and a compact SUV at the January Auto Expo 2012.

      Companies especially car makers are finding it difficult to negate the ill-effects of the weak economic conditions, and complete rely on the upcoming Auto Expo and price hike to retaliate.