Sensex slips 477 points on high crude prices, profit booking

Rising crude prices bringing back the fear of high inflation and profit booking Monday resulted in a benchmark for Indian markets closing 477 points lower.

Realty and metal scrips led the losers’ pack, even after heavy buying by overseas funds.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,975.19 points, closed at 17,445.75 points, 477.82 points or 2.67 percent down from its previous close at 17,923.57 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange also ended lower at 5,281.2 points, down 148.1 points or 2.73 percent from its previous close.

Uncertainties over oil supplies from Iran have sent crude prices soaring to a 10-month high of over $125 a barrel (159 litres).

Broader markets were also in the red, with the BSE 500 index closing 2.81 percent lower. The BSE midcap index was down 3.02 percent while the BSE smallcap index was 3.26 percent lower.

Overseas funds, which have been the main catalyst for the dramatic rise in Indian equities in 2012, continued to buy.

According to data available with the Securities and Exchange Board of India (SEBI), foreign institutional investors (FIIs) bought equities worth $1.5 billion Monday.

FIIs have put in $7.1 billion since the start of the year, having bought equities worth $2.03 billion in January and $5.06 billion till Feb 27. That did not help as domestic traders were clearly in a mood to book profits.

The market breadth ended negative with 649 stocks advancing, 2,210 declining and 85 remaining unchanged.

There was only one gainer on the Sensex: ITC, up 1.36 percent at Rs.212.30.

Major losers included Tata Steel, down 7.03 percent at Rs.442.25; Hero MotoCorp, down 6.62 percent at Rs.1,935.15; Hindalco, down 5.35 percent at Rs.139.85; and RIL, down 4.77 percent at Rs.781.20.

As per the sectoral indices on the BSE, realty, metal, power and banking stocks were among the biggest losers. FMCG scrips were only the ones which saw gains.

Asian markets ended mixed.

The Japanese Nikkei moved down 0.14 percent to end at 9,633.93 points, while Hong Kong’s Hang Seng closed 0.88 percent lower at 21,217.86 points.

The Chinese Shanghai Composite index, however, nudged up 0.3 percent at 2,447.06 points.

European markets were trading in the red.

Britain’s FTSE 100 was trading 0.81 percent lower at 5,887.25 points. The German DAX was trading 1.2 percent down at 6,782.06 points.

The French CAC 40 was trading 1.14 percent down at 3,427.47 points.