Argentina has now joined the list of countries hit by the financial tsunami, said Jagannadham Thunuguntla, head of the capital markets arm of India’s fourth largest share brokerage firm, the Delhi-based SMC Group. After Iceland, Hungary and Pakistan, the emergence of the contagion in Argentina shows that Europe, East Europe, South East Asia and now Latin America too has been affected indicating the depth and width of the problem, he said.

1. Spreading contagion brings key equities index below 10,000
With the contagion of the financial tsunami that began in the US spreading to all parts of the world,
jittery investors went into a selling spree once again Thursday sending a key Indian equities index
below the psychologically important 10,000 mark.
With the contagion of the financial tsunami that began in the US spreading to all parts of the world,
jittery investors went into a selling spree once again Thursday sending a key Indian equities index
below the psychologically important 10,000 mark.
The markets finished in the red for the second successive day this week after two successive days
of gain early this week and three successive days of losses last week.
The rupee too hit its lowest ever value against the dollar Thursday with the Indian central bank, the
Reserve Bank of India's (RBI) reference rate going down to Rs.49.79 to a dollar.
The RBI reference rate is based on 12 noon rates of a few select banks in Mumbai.
At the close of trading, the benchmark 30-share sensitive index (Sensex) of the Bombay Stock
Exchange finished at 9,771.70, down 398.20 points or 3.92 percent from its previous close
Wednesday at 10,169.90 points.
The Sensex opened very weak at 9,683.41, down 486.49 points or 4.8 percent from its previous
close Wednesday, hit a low of 9,681.28 and then recovered enough to get into positive territory on
short covering before sliding again to finish in the red.
The broader 50-share S and amp;P CNX Nifty index of the National Stock Exchange (NSE) also
opened weak and went below the psychologically important 3,000 mark before recovering
somewhat to get into positive territory for a few minutes before falling again to finish at 2943.15,
down 122 points or 3.98 percent from its previous close Wednesday at 3065.15 points.
The BSE midcap index finished at 3,378.72, down 111.67 points or 3.20 percent from its previous
close Wednesday at 3,490.39 points.
The BSE smallcap index closed at 3,965.70, down 145.99 points or 3.55 percent from its previous
close Wednesday at 4,111.69 points.
Despite lower Indian inflation figures and several positive measures announced by the Indian
government, central bank and the market regulator over the past few days, continued uncertainty
across the globe was affecting sentiment, analysts said.
quot;Argentina has now joined the list of countries hit by the financial tsunami,quot; said Jagannadham
Thunuguntla, head of the capital markets arm of India's fourth largest share brokerage firm, the
Delhi-based SMC Group.
quot;After Iceland, Hungary and Pakistan, the emergence of the contagion in Argentina shows that
Europe, East Europe, South East Asia and now Latin America too has been affected indicating the
depth and width of the problem,quot; he said.
Page 1/2
© Copyright 2006 India PRwire Pvt. Ltd. All Rights Reserved.
India PRwire disclaims any content contained in press releases published on IndiaPRwire.com. Issuers of press releases are solely responsible for the
accuracy of their content.

2. Overnight the New York Stock Exchange's key industrial index closed 6.95 percent down while the
key index of the Nasdaq - the stock exchange for technology stocks - finished with a 4.77 percent
loss.
Asian markets also provided negative cues with the Nikkei index of the Tokyo Stock Exchange down
2.46 percent and the Hong Kong market's Hang Seng down 4.65 percent.
Except consumer durables and consumer goods all other sectoral indices finished in the red.
The worst hit were metals, automobiles, oil and gas and realty stocks in that order.
Among the stocks that make up the Sensex, Grasim Industries gained the most, 4.74 percent
followed by BHEL 2.74 percent, Larsen and amp; Toubro 2.43 percent and HDFC Bank 2.23
percent.
The biggest losers were Tata Steel shedding 14.85 percent followed by Tata Motors 14.57 percent,
Hindalco 13.10 percent and Ranbaxy Laboratories 10.94 percent.
As many as 1,908 or 73.50 percent stocks declined, 622 or 23.96 percent scrips advanced and 66
or 2.54 percent stocks remained unchanged.
- Indo Asian News Service
Page 2/2
© Copyright 2006 India PRwire Pvt. Ltd. All Rights Reserved.
India PRwire disclaims any content contained in press releases published on IndiaPRwire.com. Issuers of press releases are solely responsible for the
accuracy of their content.