Sensex sheds 320 pts; closes under 14K mark

Mumbai, Apr 27 | Updated: Apr 28 2007, 08:21am hrs
Taking a cue from the weak Asian markets, domestic bourses lost substantial ground on Friday, and the benchmark indices posted significant losses. The 30-share Sensex of the Bombay Stock Exchange (BSE) crashed over 300 points to end the day below the psychological 14K level.

Some brokers blamed it on the liquidity crunch, due to a slew of holidays in the coming week, because of which many day traders and speculators squared their positions and refrained from keeping any long positions open. The Sensex was down 320.30 points or 2.25% to close at 13,908.58. Meanwhile, the broader index S&P CNX Nifty of the National Stock Exchange (NSE) lost about 94.35 points or 2.26% at 4,083.5.

Touching an intra-week low of 13,897.41 and an intra-week high of 14,228.88 the Sensex swung at least 331.47 points this week compared to last weeks intra-day volatility of 688 points. The inflation figures remained unchanged at 6.09%, which is considered on the higher side by market participants. Kashmira Mehta, institutional dealer, CD Equisearch believed that though markets had fallen on liquidity concerns on the back of a truncated trading week ahead, there wasnt too much of a down side in the market. While talking to some FIIs I realised that chances of some more money pouring into the Indian markets from the Middle East are wide. Also, on every dip there is a good opportunity to buy some of the mid-cap stocks with a long-term perspective. Only one should cherry pick.

The bad quarterly numbers of Cipla saw the pharma stock dipping by 14.27%. The others, Bharti Airtel, SBI and Tata Steel fell by 4.15%, 4.12% and 4.07% respectively. The BSE Health Care index, the top loser of the day, was down by 3.93% followed by Oil & Gas which was down 3.04%.

Not surprisingly, the Asian markets also ended deep in red. Hang Seng was down by 0.68 points or 140.79 points at 20,526.50 closely followed by Taiwan Weighted which fell by 0.63% or 50.62 points at 7, 949.42.

Shanghai composite was down 0.61% or 23.20 points at 3,759.87 and Nikkei lost 28.76 points or 0.17%.