Selling pressure sees 91% A-group stocks plunge

Our Markets Bureau

New Delhi, Sept 12: The US catastrophe has send shivers down the spines of investors as panic off-loading marked the trading on Wednesday. Interestingly, the fall in stock prices was not restricted to key stocks in a market which lacks depth.

The all-round selling pressure saw 91 per cent, or 158 out of a total of 174 stocks in the A group, plunge as compared to just 16 which closed the day with some gains. It petered down to the B1 and B2 groups which also saw 84 per cent and 63 per cent of the total stocks decline during the day.

Indicating the dull mood, The Stock Exchange, Mumbai’s (BSE) 100, 200 and 500 indices slumped 3.73 per cent, 3.57 per cent and 3.58 per cent during the day, very much in line with the 30-share Sensex, which shed 3.74 per cent to close just above the 3000-mark.

According to mutual fund sources, the day also saw few investors pressing the panic button by shifting from income schemes to debt schemes. Globally investors have also seen shifting from shares to more safe heavens like gold and bonds.

However, brokers feel that most of the selling was due to the worldwide panic following the attacks at the prime business and defence centre in the US. According to a Delhi-based broker: “Lower losses in the Indian stock markets vis-a-vis other Asian stock markets indicate that we are comparatively secure from the ill-effects of this crisis.”

The broker added that the broad-based selling was due to the general panic. The bearish trend, according to him, is expected peter out and stocks are expected to bounce back in the coming days. He added: “Many of the companies, which suffered heavy losses during Wednesday’s panic selling, may not be directly affected by the US economy. Such stocks are expected to gain back some of the losses.”