Markets slip into bearish mode

MUMBAI: Moving in tandem with global bourses, the benchmark Sensex on BSE lost over 260 points to once again slip into below 9,000-level ahead of unwinding of a slew of measures by the Centre tomorrow to rejuvenate the economy following global financial downturn.
    
The 30-share Sensex on the Bombay Stock Exchange closed the day at 8,965.20 points down by 264.55 points, wiping off more than half of the gains it notched up on Thursday. The bellwether index was up 482 points yesterday.
    
Belying expectations, banking and realty stocks suffered losses, partly shaving off the gains they posted in the past two-three days on anticipation of rate cut the by Reserve Bank and stimulus package by the government.
    
Brokers said expectations of interest rate coming down and positive aspects of the economic package, to be announced on Saturday, had already been factored in Thursday's trading.
    
Gloomy outlook for key US and European markets continued to impact the investor sentiment which was reflected in IT stocks which took a beating marketmen said
    
Auto index was the lone one which which ended in positive terrain.
     
The broader 50-share Nifty of the National Stock Exchange also dipped by 73.60 points at  2,714.40.
     
Experts said invested treaded a cautious path after monitoring Asian indices, which ended steady to positive,  and European markets which resumed sharply lower by 1.0 to 2.3 per cent despite drastic rate cuts by the Bank of England and the European Central Bank.
    
On Wall Street, the Dow Jones Industrial Average and the Nasdaq Composite fell 2.51 per cent and 3.14 per cent respectively yesterday as rising job cuts and recession hit the market sentiment. 
    
IT stocks were big losers following the overnight fall in their American Depository Receipts (ADRs) in New York on worries over the US economy.
    
However, some of the auto counters ended in the green after the global oil prices fell to nearly 4-year low below USD 44 a barrel in Singapore on Friday.
    
Looking at a fall in inflation experts said that the central bank was now certain to cut rates to increase money supply to keep the economy ticking despite global slowdown.
    
Meanwhile, a stimulus package for the economy is to be announced tomorrow by the government and RBI is expected to cut key rates to signal banks to slash interest rates.
    
Among IT segment, country's biggest IT exporter by sales TCS lost 5.10 per cent, while Infosys Tech was down 4.94 per cent, Satyam Computer 3.50 per cent and Wipro 2.26 per cent.
    
Jaipra Associates was biggest Sensex loser at 6.62 per cent, followed by DLF at 4.87 per cent and  HDFC at 4.84 per cent and Hindalco at 4.78 per cent. Corporate leader RIL also closed lower by 3.51 per cent.
       
The market breadth turned negative as 1,104 shares ended with losses while 985 finished in the green.
       
The trading volume remained low at Rs 3,755.84 crore. RIL was the top traded scrip with the highest turnover of Rs 315.21 crore followed by ICICI Bank (Rs 268.63 crore).