SBI, ONGC pull down Sensex

May 18, 2011 |

Correspondent

mumbai

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Sentiment in the markets which was really low for the last few weeks because of high inflation and interest rate regimes, was hit by a double whammy on Tuesday with the Centre’s reported move to make ONGC share a higher subsidy burden and SBI shocking the street with a dip of 99 per cent in its net profit for the Q4FY11 on higher provisioning.

Investors hammered both the stocks and SBI fell 8.13 per cent and ONGC lost 6.6 per cent dragging the Sensex down 207.68 points and the Nifty 60 points. The Sensex closed at 18,137.35 while the Nifty closed at 5,438.95. RIL also added to the loss.

The Sensex closed down 207.68 “The overall direction of the market will not change unless there is clarity on interest rate,” said Mr Mr Satish Kantheti of Zen Money. Last year the stock market gave a return of 16-17 per cent and from the start of this year there has only been a downside risk. There seems to be no trigger that could reverse the fortunes of the market that is battered by global factors, downtrend in the emerging markets and commodities and higher inflation and tighter credit. Investors feel they are better of getting a 7-8 per cent return on fixed deposits, Mr Kantheti said.

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