Sensex extends losses, sheds another 259 pts

Written by Markets Bureau | Mumbai, May 8 | Updated: May 10 2008, 05:11am hrs
Weak global cues coupled with selling pressure at higher levels led indices to end the day on a negative note on Thursday. Key indices, which had picked up momentum since the beginning of the month, extended losses with the Sensex of the Bombay Stock Exchange (BSE) shedding 258.66 points or 1.49% to close the day at 17,080.65 points. The broader Nifty of the National Stock Exchange (NSE) ended at 5,081.70 points, down 53.80 points or 1.05%.

Spike in the crude oil prices to $123 per barrel along with new accounting norms for US investment banks, which is expected to bring more writeoffs, dampened investors sentiments, dealers said.

Prashant Bhansali, director, Mehta Equities, said, Markets are going to remain within a range with bouts of volatility as they reacts to each and every development. The new accounting norms for investment banks in the US will bring transparency to the banking system. This is badly required in such uncertain times and will help in giving a clear picture of what is happening in the US. Our overall estimates for the Sensex are between 15K-18K for the entire year.

Across the board, selling was witnessed on Thursday with pressure more prominent on banking, FMCG and IT stocks, which had rallied last month. Barring BSE Metal, which posted marginal gains, all the other sectoral indices closed the day in the red. BSE FMCG, IT and Bankex lost in the range of 2.5% to 2.9% on Thursday.

The combined trading volumes at both BSE and NSE declined on Thursday by more than 12% as compared to the previous day. Volumes stood at 86.18 crore shares on Thursday as compared to 96.98 crore on Wednesday.

Of the Sensex components, 22 stocks closed the day on a negative note while only 8 stocks managed to surge.