Mumbai: The 30-share BSE Sensex has fallen for the fifth consecutive session on Wednesday due to lack of clarity in solution to Greece & Italy, and sharp fall in heavyweights like BHEL, L&T and Reliance Industries. The market has seen huge volatility in the last couple of hours of trade as it tried twice to attempt full recovery but could not make it.
The Sensex fell 106.80 points, to close at 16,775.87 after seeing recovery of 134 points from day's low 16,641.65; it crashed 794 points in five days. Meanwhile, the 50-share NSE Nifty hit the 5,000 mark during the day, before closing down 38.05 points at 5,030.45.
Anand Tandon, CEO of JRG Securities feels that no solution to the European debt crisis means the market will continue to fall. He sees very little participation in the market at every level whether it’s institutional or retail.
European markets recovered smartly after initial fall; France's CAC and Germany's DAX gained 0.75-1 per cent. Britain's FTSE rose 0.4 per cent.
With upsetting macro conditions and global volatility, the free fall in rupee has added to the woes. It depreciated to 50.93 a dollar during the day, before coming near previous day's closing value. Pradeep Khanna, managing director and head of FX trading at HSBC India believe that the the general sentiment in the market right now is that rupee-dollar levels will move lower towards the 52 mark. He also says with if the present macro conditions and the global situation detiriorate, the Indian currency is most likely to continue the downward plunge further.
Heavyweights and major stocks from the capital goods space L&T and BHEL have seen sharp cut today, falling as much as 5-7 per cent during the day. Both ended the trade with 4 per cent losses. Jaiprakash Associates followed the same trend, losing 4.5 per cent.
Reliance Industries, which lost 2.5 per cent in intra-day trade, ended down 1.6 per cent. HDFC, HDFC Bank, Coal India, Hindalco, Maruti and Tata Power were down 1-1.7 per cent. Infosys and TCS fell 0.6 per cent each.
Sun Pharma, Hero Motocorp and Wipro dropped 2-3 per cent. However, ITC, SBI and ONGC bucked the trend today; respective stocks gained 0.9 per cent, 2 per cent and 1.7 per cent.
Jindal Steel was the top gainer, rising 3 per cent. M&M, Tata Steel, Bajaj Auto, Tata Motors, Cipla and DLF gained 0.5-1.9 per cent.
Market breadth has remained in favour of declines; about two shares dropped for every share gaining on BSE. The BSE Midcap Index lost 0.9 per cent and Smallcap down 1.3 per cent.
Airline stocks like Kingfisher shot up 14.4 per cent and Jet Airways gained 4.5 per cent. Mahindra Satyam rose 5 per cent.
Idea and PFC 4.5 per cent post MSCI decided to add both stocks in its portfolio from November 30.
Sintex, Educomp, VIP, Munda Port and Adani Enterprises were down 6-10 per cent.
At 3 pm: Sensex drifts lower again; JP Associates dives 5 per cent
Indian equities fell sharply again due to steep crack in L&T and BHEL, which plummeted 5 per cent each while the Nifty tested 5,000-level as well. Reliance Industries, HDFC Bank and HDFC were down 2-3 per cent. The 30-share BSE Sensex tanked 193 points to 16,690.04 and the 50-share NSE Nifty lost 63 points to 5,005.35.
Infosys, TCS, ICICI Bank, Bharti Airtel, NTPC and Tata Motors dropped 0.5-1 per cent. Hero Motocorp, Sun Pharma, Wipro, Coal India and Hindalco and Maruti lost 2.5-3 per cent. Jaiprakash Associates tumbled 5 per cent.
However, SBI, which rallied over 2 per cent at one point of time, gained just 1 per cent. ONGC and M&M moved up 1.7 per cent each. ITC and Cipla rose 1 per cent each while Jindal Steel shot up 2.25 per cent.
About three shares declined for every share rising on National Stock Exchange.
At 2:01 pm: Nifty recovers; SBI, ICICI Bank, ONGC, ITC lead
Indian equity benchmark Sensex has recouped more than 50 per cent of losses following recovery in European markets after initial fall. France's CAC, Germany's DAX and Britain's FTSE turned positive. The 30-share BSE Sensex declined 79 points to 16,803.32 after more than 150 points recovery from day's low and the 50-share NSE Nifty slipped 29 points to 5,039.80.
SBI, ONGC and ICICI Bank led the recovery, rising 2 per cent, 1.8 per cent and 0.9 per cent, respectively. Among others, ITC, Bharti, JSPL, Tata Steel, Bajaj Auto, Cipla and DLF moved up 0.7-1 per cent while M&M rallied 2 per cent. Infosys too turned green.
However, heavyweights BHEL, L&T and Reliance Industries too showed some recovery; respective stocks lost 6 per cent, 3.6 per cent and 1.35 per cent. Jaiprakash Associates crashed 5 per cent.
HDFC, Sun Pharma, Wipro, Coal India, Hindalco and Tata Power were down 1-2 per cent.
About four shares slipped for every share rising on the National Stock Exchange. The broader indices dropped 1.2-1.7 per cent.
In the midcap space, DB Realty, Sterling Tools, Kirloskar Oil, Pantaloon Retail and Jyothy Labs gained 3.5-9 per cent while Kwality Dairy was locked at 20 per cent lower circuit. Vaarad Ventures, MVL, Sintex Industries and SREI Infra were down 8-10 per cent.
Smallcap stocks like Kingfisher Airlines, R M Mohite, Bilcare, Pradip Overseas and Mangalore Chemical rallied 4-6 per cent. However, MSP Steel, ARSS Infra, Jindal Cotex and Fineotex Chemical slipped 11-13 per cent.
At 12:46 pm: No revival signs in Sensex, rest of Asia; BHEL loses 6.5 per cent
Consistent sell-off in capital goods, technology, private banks, aluminium and auto (barring M&M) weighed on the market since morning. Asian markets too extended losses; Shanghai and Hang Seng fell 2.7 per cent each; Nikkei, Straits Times, Kospi and Taiwan were down 1-1.5 per cent. The 30-share BSE Sensex lost 178 points to 16,704.35 and the 50-share NSE Nifty slipped 60.55 points to 5,008.
BHEL, L&T and Jaipraksh Associates has been seeing sharp cuts today, falling 6.5 per cent, 4.3 per cent and 5.3 per cent, respectively.
Reliance Industries, HDFC, Hero Motocorp, Hindalco, Sun Pharma, Wipro, Coal India and Maruti Suzuki lost 2-3 per cent.
However, ONGC gained 1.35 per cent post the sources claimed that the follow on public offer of the company will not happen this calendar year. Department of Divestment said it would update the RHP of ONGC with latest quarterly results by month-end.
Bharti Airtel has been on buyers' radar because the MSCI will add the stock into its portfolio from November 30. The company raised tariffs for ISD calls by 10 per cent, which will be effective from November 17, reports CNBC-TV18 quoting DowJoneswire. The stock rose 0.88 per cent.
M&M jumped 1.5 per cent; JSPL, Cipla, Tata Steel and NTPC moved up 0.3-1 per cent.
The broader indices underperformed the benchmarks; BSE Midcap and Smallcap down 1.5-1.8 per cent. About three shares dropped for every share gaining on the National Stock Exchange.
PN Vijay, portfolio manager said the midcap selling has been huge. "Many of the midcaps are quoting at 2008, early 2009 lows but the index itself is quite ahead. The main reason is because of the panic in retail investors on various fears, global fears and the rupee-dollar concern," he explained.
At 11:29 am: Nifty at 5-week low, tests 5000; M&M, Bharti buck trend
The NSE benchmark Nifty has touched the five-week low today by breaking the 5000-level. Some panic selling as well as foreign institutional investors' outflow could be the reason behind this fall. Heavyweights Reliance Industries, L&T and BHEL were down 3 per cent, 4.3 per cent and 7 per cent, respectively. The 30-share BSE Sensex tumbled 223 points to 16,661.11 and the 50-share NSE Nifty lost 73 points to 4,995.15.
Slowdown fears, lack of clarity on solution for eurozone debt crisis and disappointing earnings in the second quarter may be other reasons.
Jaiprakash Associates was the second biggest loser, falling over 5 per cent. HDFC, ICICI Bank, TCS, HDFC Bank, Tata Motors, Tata Steel, Sun Pharma and Sterlite fell 1-2 per cent.
Wipro, Hero Motocorp, Coal India and Hindalco were down 3-4 per cent.
However, M&M and Bharti Airtel bucked the trend, rising 1-1.5 per cent. SBI, ONGC, Cipla and HUL were other gainers, moving up 0.2-0.8 per cent.
Market breadth worsened further; about 4.5 shares declined for every share gaining on National Stock Exchange.
European futures like Germany's DAX and Britain's FTSE futures lost 0.7 per cent each. France's CAC fell 1.5 per cent.
Jim Reid of Deutsche Bank said, "Predicting the next move from the ECB is crucial and extremely difficult, as the risk is that the longer they delay action, larger countries like France risk getting embroiled in the crisis."
At 10:29 am: Nifty slips towards 5000; BHEL, L&T drop 4-5 per cent
The 30-share BSE Sensex has continued to trade with 100 points fall due to sell-off in private banking, capital goods, select technology and auto stocks. Heavyweight Reliance Industries too fell into bears' grip, falling 2 per cent. The 30-share BSE Sensex dropped 164 points to 16,719 and the 50-share NSE Nifty slipped 57 points to 5,011.
Among the largecaps, SAIL, BPCL, GAIL, Hero Motocorp, Jaiprakash Associates and Coal India dropped 2-4 per cent. BHEL was the biggest loser on the street, losing 5 per cent while L&T crashed nearly 4 per cent.
However, M&M, Jindal Steel, SBI, Cipla, Bharti Airtel, Reliance Communications and DLF gained 1-2 per cent.
SBI, L&T, ICICI Bank, Idea Cellular, Tata Steel, Bharti Airtel and Axis Bank were most active shares on exchanges.
Indian rupee has depreciated by 20 paise to 50.86 a dollar today, though it showed some recovery.
PN Vijay, portfolio manager shares that the midcap damage over the past few days could be courtesy the earnings performance. He says the Q2 earnings has been primarily hit by two reasons - the rupee-dollar scenario and the demand destruction. He expects RBI’s intervention to get rupee back to sub 50 levels.
In the midcap space, DB Realty, Shriram City, Sterling Tools, Shree Global and Bajaj Hindusthan rallied 3-10 per cent while Kwality Dairy plunged 20 per cent. Sintex Industries, KSK Energy Ventures, Rashtriya Chemical and SKS Microfinance slipped 5-7.5 per cent.
The market breadth has remained in favour of declines; more than three shares slipped for every share rising on the National Stock Exchange.
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