Mumbai, Nov 1: Monday was one of the worst days witnessed on Indian bourses. The market was under the strong grip of panic-selling and the BSE Sensex lost almost 173.8 points from its previous close and 230 points, intra-day. But how bad was the scenario? Consider this: one third or around 60 stocks in the specified list hit the lower circuit. In the specified list, almost 80 per cent of the stocks showed a fall of over 5 per cent, one of the worst performance whereas almost 96 per cent of the stocks showed a negative close. This clearly reflects the panic that had gripped the market on Monday, despite it being the first day of the current settlement on the BSE, the day of the week when the Sensex historically closed higher.Over the last one week, the Sensex lost 546 points and the selling continues unabated. And nobody seems to have any indication about when and at what level would this bloodbath stop. From its October 25 level of 4816, the BSE Sensex has shed a whopping 11.34 per cent to close at 4270 on November 1. According to a dealer with a domestic broking house, this is perhaps the first time in the history of the BSE Sensex that it has dropped by more than 100 points for four consecutive days and (technically) has the potential to go down further.
As for the BSE Sensex, it showed a net fall of 173.82 points. It opened at 4444.56 points, and improved to 4500.36 points. From this level, the dip was vertical and it touched a low of 4267.23 before closing at 4270.74 points. In the last four trading sessions, the Sensex has lost 541 points.
Monday's fall could have been more than 250 points had HLL not remained firm. Hindustan Lever which represents around 20 per cent in the benchmark index was unchanged at Rs 2308. Infosys, NIIT and other two heavy weights also showed a fall of less than 5 per cent. Among pivotals, Ranbaxy, SBI, Reliance, MTNL, ACC, Telco, L&T, and Tata Tea hit the lower circuit. Even heavyweights like ITC showed a fall of more than six per cent. Overall, had HLL showed a similar fall, the drop in Sensex would have easily been more than 200 points.
While selling was visible on every counter, the software sector was under panic attack. Nearly 97 per cent of the software stocks hit the lower circuit. Stocks like Pentafour, Digital Equipment, Global Tele, HCL, Silverline, and Himachal Futuritic were first to hit the circuit. Even Satyam Computer saw the circuit price. The story was same for second rank software stocks. Among the specified group, only eight stocks showed a positive close. Among them, M&M, Corporation Bank and Bank of India showed gains of more than four per cent which was impressive in a panic scenario. Castrol, Gujarat Ambuja, and Reckitt & Colman also showed a positive close.
Among the non-specified list, stocks like Krone, Kodak, Delton Cables, Plastiblends, IVR Construction, Hikal Chemicals, Menon Bearings, Duphar, and Gujarat Lyka managed to show impressive gains.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.