It was yet another case of a manic Monday on the markets. Stocks of other Anil Dhirubhai Ambani Group (ADAG) companies too mirrored the overall sentiment in the market and fell along with newly-listed group firm Reliance Power Ltd (R Power), which lost Rs 77.5 or 17.22% on its debut day.
The stock of Reliance Capital was down by Rs 209.25 or 11.47%, Reliance Communication was down by Rs 55.70 or 8.62, Reliance Energy fell by Rs 380.95 or 19.40% and RNRL was down by Rs 24.30 or 16.36% to close the day at Rs 124.25. The Mukesh Ambani-controlled Reliance Industries Ltd (RIL) and Reliance Petroleum (RPL) too could not resist the intense sell-off that swept across the domestic equity market. RIL closed at Rs 2,274.85, losing Rs 146.90 or 6.07%, while RPL lost Rs 11.40 or 6.99% to end the day at Rs 151.60.
Amitabh Chakraborty, president equity, Religare Securities, said, ?Foreign institutional investors (FIIs) have become extremely risk averse due to which they are selling across the sectors in the Indian market. Another important factor is the China market, which has been closed on account of their New Year. Since the Chinese market has been closed, the US market has lost around 4% and FIIs fear that on Wednesday when the Chinese market will resume trading, there will be heavy selling. That is prompting FIIs to book profits in other emerging markets.? On Monday, when all the BSE sectoral indices closed deep in the red in the range of 2% to 8.61%, the BSE IT Index managed to hold ground. The BSE IT Index closed the day at 3,848.16 points, gaining 4.82 points or 0.13%. The major stocks that supported the BSE IT index in defending the fort were Satyam Computer, which was up Rs 13.85 or 3.38%, Infosys, up by Rs 7.40 or 1.01%, TCS, up by Rs 3.25 or 0.36% and Wipro, which was up by Rs 1.05 or 0.25%.
?It is purely value buying that is emerging in the frontline IT sector stocks rather than any other factor,? said Chakraborty.
Among the sectoral indices, the major loser was the BSE Power Index, down by 321.65 points or 8.61% at 3,414.66 points, followed by the BSE Oil and Gas Index that lost 752.64 points or 7.07% to end the day at 9,885.80 points.
