Business

Global crisis: Indian stock prices more than halve

MUMBAI: The Bombay Stock Exchange sensitive index (Sensex) has fallen 54 per cent this year, its first decline in seven years, as the worst global financial crisis since the 1930s reduced liquidity and raised concerns about the Indian economy slackening.

On Tuesday, the Sensex advanced further on Tuesday by over 180 points on good buying support in realty, automobile, information technology and banking stocks amid intense expectations of a second stimulus package by the government to boost the economy.

Stretching the gains to the second straight day, the 30-share index closed at 9716.16, higher by 182.64 points against 9533.52 on Monday. In two days, the Sensex had gained 387 points.

The positive sentiment also saw the National Stock Exchange index Nifty closing higher by 57.30 points at 2979.50.

Marketmen said expectations of a second stimulus package, which they said could be announced any time this week, kept the investor sentiment high.

They also said anticipation of the Reserve Bank of India cutting the key policy rates to signal further cuts in interest rates also buoyed the markets.

Interest rate sensitive auto, realty and bank shares attracted brisk buying and recorded handsome gains.

Satyam Computer continued to gain as it ended up by 8.33 per cent amid talks of investors taking over the company. Reliance Communications, which rolled out its nationwide GSM services, was also in the limelight with its shares surging 7.16 per cent. Auto shares Mahindra and Mahindra at 5.75 per cent and Tata Motors at 4.91 per cent too hogged the limelight on talks of the sector driving mileage out of the expected stimulus package and interest rate cut.

The realty sector, highly interest-sensitive segment remained the biggest gainer by 3.48 per cent at 2283.52. Barring one, all the 1 segment participants recorded handsome gains.

Auto sector index was the second best performer gaining 3.09 per cent at 2421.64 followed by capital goods by 2.92 per cent at 6877.72. Tech index rose by 2.73 per cent to 1952.45 and information technology index by 2.40 per cent to 2226.06.

With the buying activity spread over a wide-front, midcap index rose by 2.18 per cent to 3216 and midcap index by 1.79 per cent to 3635.48.

The rupee eased by five paise against the dollar on Tuesday on month-end dollar demand by oil exporters amid a fresh surge in domestic stock markets.

The Indian unit moved in the range of 48.34-48.64 after resuming slightly higher. It ended at 48.47/48 against 48.43 on Monday. The rupee demand also remained weak due to capital outflows during last week. — PTI

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