Indian equity benchmarks fell for the eighth consecutive session on Monday -- the Sensex shed more than 1600 points in eight days -- tracking sharp fall in the rupee to fresh 32-month lows. Huge cash in by the foreign investors coupled with rising concerns over US and eurozone debt crisis helped the bears to become more greedy. The 30-share BSE Sensex closed at one and half month lows and has seen the biggest fall since the May 3, 2011.
The index dropped 425.41 points or 2.60%, to end at 15,946.10 led by fall in 28 stocks. Meanwhile, the 50-share NSE Nifty fell 2.6%, or 127.45 points, to end at 4,778.35.
Ambareesh Baliga, COO of Way2wealth says, unless the rupee and the inflation fall in place he doesn’t see too much of a hope for the market at least in the short to medium term.
The Indian rupee touched the 52 to the dollar during the day, falling 69 paise - a fresh 32-month low. It fell 76 paise to 69.94 an euro.
PN Vijay, Portfolio Manager feels that this is very serious stuff. He expects some RBI action on both fronts - "It has to bring rupee back to 50 levels, get the exporters out and sell their dollars; and it has to cut rates," he said.
Infosys seems worried about the rising rupee. Infosys CFO V Balakrishnan said the company might not meet the guidance at upper end of 17-19%. "Environment remains uncertain and clients are deferring spend," he explained. The stock lost 3%.
Global uncertainty was another cause of concern; British PM David Cameron and German Chancellor Angela Merkel failed to narrow differences over the introduction of a financial transaction tax in Europe in last weekend. European markets like France's CAC, Germany's DAX and Britain's FTSE fell 2-2.4% while the Dow Jones futures lost 146 points.
Metals, banks, realty, power, auto and oil & gas stocks got butchered quite badly; respective sectoral indices tanked 2.6-3.5%. IT and Capital Goods indices dropped over 2%.
Largecaps like ICICI Bank, Tata Motors, BHEL and Sterlite Industries crashed 5% each. Heavyweights Infosys, Reliance Industries, HDFC Bank, HDFC, SBI, TCS, Bharti and ONGC were down 2-3%.
However, Sun Pharma and Maruti outperformed other largecaps - ended marginally higher.
The market breadth was pathetic; about three shares declined for every share rising on the National Stock Exchange. The BSE Midcap Index was down 1.9% and Smallcap down 1.7%.
Pantaloon Retail, Aban Offshore, Delta Corp, Suzlon Energy, Educomp, Sun TV, SREI Infra, Adani Enterprises and BGR Energy plunged 6-12%.
At 15:13 hours IST : Sensex below 16000, Nifty at 4790; rupee falls to 52/$
With rupee breaching the 52/USD mark, the stock market sentiment has been bruised further. The 30-share BSE Sensex fell 387 points to below 16000 at 15984.42 and the 50-share NSE Nifty crashed 118 points to 4,788. Global environment, which has been the key reason for today's capitulation, has shown no signs of reversing the trend. France's CAC, Germany's DAX and Britain's FTSE tumbled 2-3% while the Dow Jones futures lost 138 points.
Not a single sector was in the green; the BSE Metal Index plunged 3.5%. Bank, Realty, Auto, Power and Oil & Gas indices tanked 2.6-3%. Capital Goods, IT, Pharma and FMCG lost 1-2%.
Tata Motors, BHEL, ICICI Bank and Sterlite Industries were down 4.55% each. Reliance Industries, HDFC Bank, Infosys, TCS, SBI, ONGC, Bharti and Tata Steel dropped 2-3%. However, Maruti and Sun Pharma were only gainers.
The broader indices extended losses too; the BSE Midcap and Smallcap fell 1.7% each. Even the market breadth weakened; about three shares declined for every share rising on the National Stock Exchange.
At 14:18 hours IST : Sensex crashes 350 pts, Nifty touches 4800 as Europe falls
Indian equity benchmark Sensex has not seen any recovery since morning; in fact it slipped further following a fall of 1.5-2% in the European markets. The Dow Jones futures too lost 152 points. The 30-share BSE Sensex touched the one-and-half months low today; falling 350 points to 16,021 and the 50-share NSE Nifty tumbled 107 points to 4,798.
In the last weekend, British PM David Cameron and German Chancellor Angela Merkel failed to narrow differences over the introduction of a financial transaction tax in Europe. However, in the US - there were talks that US lawmakers will fail to reach an agreement to cut the budget deficit.
The Indian rupee too depreciated further to 51.87 to the dollar (lost 54 paise) and 69.83 to an euro (fell 65 paise), which resulted huge outflow of money. S&P CNX Defty tanked over 3%.
Heavyweights Reliance Industries, ICICI Bank and BHEL lost 3%, 3.6 and 4.5%, respectively.
HDFC Bank, TCS and NTPC among other largecaps tumbled over 2%. Tata Motors, Bajaj Auto and Sterlite Industries were down 3-3.7%.
Infosys, HDFC, SBI, ITC, ONGC, Bharti Airtel and L&T declined 1-1.8%. However, Maruti and Coal India bucked the trend, gaining 1% and 0.65%, respectively.
The market breadth worsened further; about two shares slipped for every share rising on the National Stock Exchange.
At 12:46 hours IST : Nifty below 4850; SBI, RIL, L&T, Tata Motors most active
The market has been falling for the eighth consecutive session today due to European jitters, depreciating rupee and now the US debt problem. The 30-share BSE Sensex dropped 201 points to 16,170.10 and the 50-shares NSE Nifty lost 60 points to 4,845.65 led by sell-off in oil & gas, banks, metals, capital goods and technology stocks.
Ajay Srivastava, CEO, Dimensions Consulting, in an interview with CNBC-TV18, said there could be further downside for our market going forward as global headwinds remain strong.
SAIL, BHEL, HCL Tech, Ranbaxy Labs, Bajaj Auto, NTPC, Tata Motors and Sterlite Industries were biggest losers among largecaps, falling 2-3.5%.
However, Maruti Suzuki outperformed other frontrunners, rising 2%. Jaiprakash Associates, Coal India, DLF and Reliance Infrastructure gained 0.5-1%.
SBI, Reliance Industries, L&T, Pipavav Defence, Tata Motors and Bharti Airtel were most active shares on exchanges.
Midcaps like Peninsula Land, Amtek Auto, S Kumars Nationwide, MVL and Pipavav Defence rallied 4-6% while Kwality Dairy, Hindustan National Glass, Sterling Tools, Pantaloon Retail and VIP Industries dropped 5-10%.
Declining outnumbered advancing ones by 805 to 463 on the National Stock Exchange.
At 11:30 hours IST : Sensex drops over 200 pts; BHEL hits 52-week low
The 30-share BSE benchmark Sensex extended losses led by heavy fall in heavyweights like Reliance Industries and BHEL (hit a 52-week low of 265.20); respective stocks dropped 3-3.5% each. Asian markets too slipped further; Hang Seng was down 2% and Taiwan tanked 2.6%. Shanghai and Straits Times fell 0.7% each; and Kosp lost 1%. The Sensex dived 214 points to 16,157.82 and the Nifty fell 64 points to 4,842.15.
Fund Manager at Helios Capital Samir Arora is critical on the government and RBI’s policy on the Indian rupee. He finds that the market movement is affected due to poor macros projected by them. “In these volatile times we need a comforting voice on the currency,” he says adding that the fundamentals are not determining the currency anymore. A retest of the 4,700 level could happen.
Tata Motors and Bajaj Auto crashed 3% each. In the banking and financial space, HDFC, HDFC Bank, ICICI Bank and SBI (has touched more than two-year low of Rs 1690.1) dropped 1.4-2%.
L&T, which was trying to support the market in early trade, too slipped nearly 1%. Among other largecaps, ITC, TCS, Bharti Airtel, Tata Steel and Sterlite were down 1-1.7%.
However, Maruti Suzuki, M&M, Sun Pharma, JP Associates, Cipla and Coal India were only gainers.
The Indian rupee was trading at 51.68 to the dollar (fell 35 paise) and 69.87 to the euro (lost 68 paise).
At 10:30 hours IST : Nifty loses 1%; banks, tech, metals stocks down
Indian equity benchmark Nifty fell nearly a percent led by further depreciation in the rupee. The sell-off in banks, telecom, technology and power stocks has weighed on the market; heavyweight Reliance Industries was the leading loser since the opening, falling 2.4%. The BSE Sensex fell 147 points to 16,224.51 and the NSE Nifty plummeted 44.75 points to 4,861.05.
Asian markets were continued to reel under selling pressure on account of ongoing eurozone and US debt worries. Hang Seng lost 1.8% and Taiwan tanked 2.2%. Straits Times and Kospi were down 0.7-1%. Nikkei and Shanghai were marginally lower.
The Indian rupee fell 37 paise to 51.70 a dollar today as against Friday's closing level.
Subramaniam Sharma of Greenback Forex Services feels that the rupee is likely to remain under pressure on the back of continued demand from importers, oil marketing companies and weak Asian equities. "Demand from corporates for redemption of FCCBs to the tune of about Rs 5 billion over the next couple of weeks will also add to the rupee woes," he said.
TCS, ITC, HDFC Bank, SBI, Bharti Airtel, NTPC and BHEL slipped between 1% and 2%. Tata Motors and Bajaj Auto were down 2.7% and 2.3%, respectively.
Metal stocks like Tata Steel, Hindalco, Sterlite and Jindal Steel too melted down - dropped 1-1.7%.
However, L&T, Maruti, Coal India and JP Associates outperformed other frontliners, rising 1-1.9%.
In the midcap space, Peninsula Land, S Kumars Nation, Aurobindo Pharma, Sintex Industries and PTC India gained 3-6% while Kwality Dairy, Shree Global, Vaarad Ventures, India Securities and Puravankara Projects tumbled 4-10%.
The market breadth was weak; about 466 shares gained as against 711 shares declined on the National Stock Exchange.
At 9:20 hours IST : Sensex sinks 100 pts on opening; RIL, Bharti draggers
The BSE benchmark Sensex fell over 100 points in the opening trade, tracking weak global cues. The eurozone remianed crisis-prone as British PM David Cameron and German Chancellor Angela Merkel failed to narrow down differences over the introduction of a financial transaction tax in Europe last weekend. The ripples of the crisis was felt on Asian markets.
The 30-share BSE Sensex dropped 158 points to 16,213.69 in the opening trade while the 50-share NSE Nifty lost 50 points to 4,856.05.
The Indian rupee depreciated to 51.48 a dollar in the morning trade, losing 0.3% as compared to Friday's rate of 51.33/USD.
Heavyweights Bharti Airtel (on 2G scam news) and Reliance Industries were down 2% each.
Sterlite, Hindalco, ICICI Bank, Axis Bank, HDFC Bank, Kotak Mahindra Bank, IDFC, JSPL, Tata Motors, HCL Tech, Reliance Communications, Reliance Infra, DLF, ITC and M&M were knocked the market 1% lower in early trade.
However, BPCL, ONGC and Cipla were witnessing buying interest.
The CNX Midcap fell 30 points to 6,609. The market breadth has remained in favour of declines; about three shares fell for every share rising.
PFC and Shree Renuka and Kingfisher up 1-2%. Pipavav Defence rose 3.5%.
Parsvnath was up 0.7% on short covering; stock fell 20% last Friday.
Gitanjali Gems tumbled 3% as the stock will go out of F&O from November 25.
Punj Lloyd, IVRCL, GTL, Patni, JSW Steel, S Kumars and IFCI crashed 3-4%.
Global cues
European markets ended off day's low on Friday, but disagreement amid top political leader’s continued.
The US equity markets ended flat ahead of talks that US lawmakers will fail to reach an agreement to cut the budget deficit.
The Dow Jones Industrial Average ended up 25 points at 11,794 on Friday; it was down 3% for week while gained 2% YTD.
The NASDAQ Composite was down 15 points at 2,571; it was down 4% for week and down 3% YTD.
The S&P 500 Index fell 0.5 points at 1,215; it was down 3.8% for week and down 3.3% YTD.
Europe
British PM David Cameron and German Chancellor Angela Merkel failed to narrow differences over the introduction of a financial transaction tax in Europe.
Reports suggest that ECB is considering lending money to the IMF to be used for bailing out euro zone countries.
Another report suggests that Germany and the ECB remain opposed to the plan.
Commodities
CRB Commodity Index was down 0.7%.
Crude Oil fell 1.4% at USD 97.41/barrel after opening up 1%
Natural gas was up 2.6% at USD 3.31 per MMBtu
Gold rose 0.2% at USD 1724.5/ounce
Silver went up 3% to USD 32.47/ounce
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