Business & Finance

Stock markets take U-turn

 

Dismal global cues mainly on account of rising crude oil prices and Saudi Arabia's curt statement ruling out immediate increase in oil-pumping hit Asian stock markets today. The worst fallout is being seen on Dalal Street these days where stocks tend to crash at the slightest hint of negative development. The news that undermined the bourses in Asia came from Wall Street quoting crude August futures at an all time-high of $145.43/barrel on NYMEX.

 
Linked with the global worries were developments in the domestic front. Political instability on the eve of Prime Minister Dr Manmohan Singh's visit to G8 meeting in Japan and some straight facts stated by petroleum secretary Mr MS Srinivasan added to the worries of the investors.

 
The petroleum secretary said that the demand for crude in the financial year 2008-09 would go up by five to seven percent and so would the bill from $68 billion in FY08 to $110-$120 billion this year.

 
The markets opened about 135 points below yesterday's mark. It slipped further with intensifying selling pressure. The bears once again assumed complete command brushing aside a rare bull-show of Wednesday. The stocks fell sharply across the counters. The 30-share Sensitive Index of Bombay Stock Exchange lost 570.51 points or 4.18 per cent closing at 13094.11 points but not before posting a low of 12,934.92 points. The 50-stock S&P CNX Nifty of National Stock Exchange once again closed under 4000-level at 3925.75 points losing 167.60 points or 4.09 per cent. In Sensex two shares ended up and 28 declined. Top losers included Tata Steel closing at Rs 657.45, down by 11.30 per cent, DLF closing at Rs 381.85, down by 9.93 per cent, Reliance Infra closing at Rs 721.55, down by 8.72 per cent and ICICI Bank closing at Rs 573.85, down by 7.81 per cent. Around 2.91 crore shares were traded in Sensex at a turnover of Rs 1861.33 crore.