Succumbing to intense selling pressure, all the sectoral indices on the Bombay Stock Exchange (BSE) ended the day in red as investors hit the panic button on Friday. Sectors such as metal, realty and capital goods, which registered hefty gains in the last one month, saw a steep fall.
According to Ajay Padval, portfolio manager, KR Choksey Securities, sectoral indices have witnessed a sharp fall as some of them had risen too fast and it was obvious they would take a major hit. ?Rally in stocks such as L&T and BHEL have contributed to the market gains in a major way. However, these stocks registered sharp gains too quickly on the back of certain news and therefore the fall too is quick,? he added.
The BSE Metal index was the top loser, down 638 points or 5.26% before closing at 11,501.52 points. Tata Steel and Shree Precoated were among the top losers, down over 7% pulling the index down, while Hindalco Industries lost over 5%.
Closely following the BSE Metal index was BSE Realty. Before closing the day at 7,823.91 the index declined by 5.25% or 433.57 points. The major loser in the index was Parsvnath Developers, down over 7% while realty major DLF declined by over 5%. Third top loser was the BSE PSU index, down 4.04% or 293.88 points at 6,983.57 points. Major loser was Rashtriya Chemicals and Fertilizers followed by Canara Bank and Power Finance Corporation. All the three counters were down by over 6%. The BSE Capital Goods index was down by 3.76% or 498.26 points to close at 12,748.77 points. BHEL declined over 5% while L&T lost 4.58%. The Oil & Gas index was down by 3.72% or 309.44 points at 8,015.75. The top loser was ONGC, down 4.42%, followed by Reliance Industries, down 3.84% and Cairn India, down 3.63%. BSE Bankex fell by 3.24% or 265.33 points to close at 7,920.19 points. While HDFC Bank lost 4.29%, ICICI Bank was down 3.26%, followed by State Bank of India, which was a leader in the recent Sensex rally, down by 3.28%.