Sensex slips 108 points on global growth worries

After three consecutive sessions of gains, the Indian markets came under pressure today on renewed concerns that the United States may again slip into recession

Major headlines

BF Utilities shoots up on land development deal

India's services sector growth slow in August

Everonn Education hits lower circuit after MD's arrest



Indian indices

Indian markets closed in the negative zone on weak global cues and continuous selling pressure in IT stocks. Investors dumped export-driven software services companies on renewed concerns that the United States may again slip into recession. The world markets crashed post dismal report on US job growth and euro debt worries, which led the Indian markets to snap three-day rally.

However, the Indian markets showed strong resilience in the second half of trade, recovering more than half of its losses and outperformed its global peers.

Sensex movements: The Sensex started the new week 143 points lower at 16678 on the back of weakness across the globe. Selling in the technology stocks on US woes dragged the index to day’s low of 16561 in early afternoon session. Later, the index recovered more than half of its losses and hit the day’s high of 16760 in the afternoon session. The Sensex declined 108 points to close at 16713 and the Nifty stood at 5017, down by 23 points.

Market sentiment:

The market breadth stood positive. Of the 2928 stocks traded on the BSE, 1481 (50.58%) rose, 1330 (45.42%) fell and 117 (4%) traded unchanged.

Viewing volumes

Wind turbine major - Suzlon Energy witnessed highest trading, with over 0.55 crore shares changing hands on the BSE. Following that India's second largest developer - Unitech (0.45 crore shares), Indian shipbuilder - Pipavav Shipyard (0.35 crore shares), a major Indian telecommunication company - Reliance Communications (0.31 crore shares) and industrial finance company - IFCI (0.28 crore shares).

Sectoral & stock screening

Seven sectoral indices fell and six rose. BSE Oil & Gas was the major loser, down by 1.77% followed by BSE IT down by 1.44% and BSE TECk down by 1.06%. On the other side, BSE CD outperformed the sectoral indices, up by 2.44% followed by BSE Auto up by 1.30% and BSE Realty rose by 0.81%.

In 'A' group stocks, top gainers - BF Utilities rose by 17.11%, Tech Mahindra advanced by 6.78% and Essar Oil up by 5.83%. Top losers - Bhushan Steel fell by 4.58%, Patni Computer Systems down by 4.24% and Wipro declined by 3.65%.

Global signals

The European stock markets slid on Monday, after Friday's weaker- than-expected US monthly payrolls report fuelled worries about a further deterioration in economic conditions, leading investors to dump equities and the euro currency, and instead favour traditional safe havens such as the Swiss franc and core government bonds.

Barring Jakarta Composite up 0.64%, all the Asian indices closed lower on Monday on US recession fears.

The US markets will remain closed on Monday due to Labor Day.