Date:12/02/2008 URL: http://www.thehindubusinessline.com/2008/02/12/stories/2008021252800100.htm

Back Sensex slips 833 points on weak global cues

Our Bureau

Mumbai, Feb. 11

It was another black Monday for Indian bourses, after January 21, when the market fell more than seven per cent.

The benchmark index fell on Monday by 4.78 per cent to close at 16,630.9. The timetested Reliance magic just did not work on the bourses. Instead, it added to the gloom, with most Sensex stocks taking a severe beating.

As Reliance Power's much talked about IPO staged a dismal debut and investors continued to fret about a global economic slowdown bruising profits of Indian corporates, the Sensex slumped 833.98 points. The broader S&P CNX Nifty was down by 5.14 per cent.

The withdrawal of two IPOs last week also weakened market sentiments.

Reliance Power stock closed on the first day of listing at 17 per cent below the issue price, crushing hopes of investors to rake in early gains.

"The investors had applied for the Reliance Power shares in anticipation of earning gains from the listing of stock but instead, even grey market premium eroded between the time application and listing," said Ms Anita Gandhi, Head of Institutional Business, Arihant Capital Markets.

According to market pundits, it was also the weak cues from the global markets that added to the market plunge. Nikkei fell by 1.44 per cent Dow Jones index was down 0.53 per cent, while Hang Seng fell by 3.92 per cent.

All sectoral indices, except BSE-IT, ended in the today.

The top losers include Reliance Energy (down by 19.40 per cent) and Reliance Comm (8.62 per cent) and Reliance (6.07 per cent).

The FIIs were net sellers the tune of Rs 1,268.67 crore, while domestic institutions were net sellers by Rs 22.27 crore.

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