Sensex ends below 10K ahead of F&O expiry

Written by Markets Bureau | Mumbai | Updated: Dec 23 2008, 06:44am hrs
Share prices declined on the first trading day of the week as investors showed caution ahead of the expiry of Decembers futures and options contracts this week. Global cues were also weak.

The 30-share Sensex of Bombay Stock Exchange (BSE) closed below 10K at 9,928.35 points, down 171.56 points, or 1.7%. There was, however, some buying in real estate stocks on expectations of a rate cut by the central bank, said a dealer.

Earlier in the day, markets opened with minor gains, but soon slipped into the red on the back of selling. Stock indices finally closed on a negative note. The broader S&P CNX Nifty of the National Stock Exchange (NSE) lost 38.20 points, or 1.24%, to end at 3,039.30 points.

An analyst from a leading broking house said, We witnessed huge volatility in the markets on Monday and it was due to the expiry of F&O this week. However, during the intra-day trade, markets recovered for a while on expectation of a cut in interest rates by the Reserve Bank of India (RBI), along with a stimulus package by the government. At this point, investors are looking for a positive trigger for markets to remain on positive terrain.

Barring consumer durables, FMCG, public sector undertakings and realty companies, all the BSE sectoral indices ended with losses. Bankex and Oil & Gas were the worst performers of the day. As many as 1,276 stocks advanced, 1,258 declined and 82 remained unchanged out of the total 2,616 stocks traded on the BSE.