Sharp slump in the US as well as in Asian and European markets, due to cut in US economic growth forecast of 2008-2010 by Fed and weak housing data, has weighed on our markets. The Sensex closed below October 27, 2008 closing values. The benchmark indices remained under pressure throughout the session, despite showing a bit of recovery in the last 15 minutes of trade due to short covering. It was the seventh straight day that the markets shut shop in negative terrain.
Oil, private banking, metal, realty, auto, telecom, technology and capital goods stocks witnessed selling pressure. Reliance Industries, Bharti Airtel, Reliance Communication, DLF, ICICI Bank, Infosys, HDFC Bank, HDFC, BHEL, Unitech, Cairn India, TCS, L&T, Maruti Suzuki, Tata Power and Sterlite Industries were major contributors to this fall.
The Sensex closed below October 27, 2008 closing value of 8509.56. The 30-share BSE Sensex shed 322.77 points or 3.68% to settle at 8,451.01, after hitting an intraday low of 8,316.39.
The 50-share NSE Nifty touched day's low of 2502.90, before slipping by 81.85 points or 3.11%, to close at 2553.15. However, both indices were way above their October 27 intraday lows of 7697.39 and 2252.75.
Volumes were tepid in today's trade. Total traded turnover stood at Rs 48,668.02 crore. This includes Rs 7,788.87 crore from NSE cash segment, Rs 37,983.83 crore from NSE F&O and the balance Rs 2,895.32 crore from BSE Cash segment.
The BSE Midcap Index shut the shop at 2,895.79, down 102.60 points or 3.42% over previous close. The Small cap Index fell 107.78 points or 3.09% to 3,385.34.
Inflation was the non-event today, as it was on the expected lines. It stood at 8.9% for the week ended November 8 as against 8.98% in the earlier week. CNBC-TV18 poll was seen inflation at 8.82%. Reacting to the cooling-off inflation numbers, Shubhda Rao, Chief Economist, Yes Bank, said, “The trend is clear that inflation is softening. I would think inflation would go down to anywhere between 8.8%–8.7% next week. Within the manufacturing space, we are clearly seeing some softening.”
Realty stocks took huge beating on the bourses. Unitech was down 9.87% and DLF fell 8.56%. BSE Realty Index plunged 151.88 points or 8.3% to 1,679.06.
Oil & Gas Index was down by 255.47 points or 4.64% at 5,252.01. Reliance Industries crashed 6.58% and ONGC tanked 0.33%. Oil marketing companies like HPCL, IOC and BPCL fell 0.95-2.47%. Crude was hovering at USD 53-54 to a barrel on the NYMEX.
Bankex closed at 4,398.29, down 198.66 points or 4.32% over previous close. ICICI Bank and HDFC Bank lost over 7%. However, SBI gained 1.2%.
Metal Index slipped 185.65 points or 4.18%, to settle at 4,250.49. Sterlite Industries, Jindal Steel and JSW Steel fell 7-8%. Tata Steel, SAIL and Hindalco lost 0.4-2.4%.
Selling was also seen in auto stocks like Bharat Forge, Maruti Suzuki and Hero Honda slipped 5-8%. BSE Auto Index fell 97.27 points or 4.14% to 2,252.97.
Telecom stocks like Reliance Communication, Idea Cellular, Tata Communication and Bharti Airtel tumbled 3%-8.3%.
Capital Goods stocks like BHEL and L&T fell nearly 3%. Index lost 187.38 points or 2.93% to 6,209.38.
IT Index was down by 66.80 points or 2.77% at 2,343.84. Tech Mahindra, Infosys, TCS, Wipro and Satyam were losers.
Power stocks like Reliance Infrastructure, Tata Power, CESC, Suzlon Energy and Torrent Power fell 3.2-6.7%. Power Index fell 34.22 points or 2.24% to 1,495.70.
Pharma stocks like Orchid Chemical, Ipca Labs, Opto Circuits, Matrix Lab and Dishman Pharma lost 5.5-9%. Sun Pharma was down 4.59%. Healthcare Index declined 40.38 points or 1.44% to 2,764.43.
FMCG Index also closed lower by 9.46 points or 0.51% at 1,856.56. Tata Tea, Dabur India, United Spirits, Godrej Consumer and GlaxoSmith Consumer lost 1.7-5.8.
Among the midcap stocks, Lakshmi Energy, Motilal Oswal, BGR Energy, Deccan Chronicle and Triveni Engg plunged 10.7-16.4%.
In the small cap space, Amtek India, NRB Bearings, Ansal Housing, English Ind Cla and Kewal Kiran lost 11-20%.
Market breadth was extremely weak; about 706 shares have advanced while 2071 shares have declined. Nearly 416 shares remained unchanged.
On the global front, European indices were trading weak. FTSE slipped 86.55 points to 3,919. CAC and DAX fell 104 points and 130 points to 2,983 and 4,224, respectively, at 3:49 hrs IST.
The Dow Jones Futures was down 107 points to 7,920 and the Nasdaq dropped 22.25 points to 1,070.25, at 3:49 hrs IST.
US Auto makers are in focus, as no bailout package is expected soon; Paulson hinted that TARP will not be used for automakers, foreclosures mitigations & no another capital program.
Asian markets ended sharply lower. Nikkei closed down by 6.89% and Kospi fell 6.7%. Hang Seng and Taiwan lost 4.04% and 4.53%, respectively. Shanghai, Straits Times and Jakarta fell 1.67%-3.10%.
Japan's Yen continues to appreciates and its October exports fell by the most in seven years.
Taiwan has broken October lows while other Asian markets were still 5-15% away from October lows.
Markets @ 2:14 pm : Sell-off continues in markets as European indices dip 2-3%
Selling pressure continues in the benchmark indices, despite showing a bit of rebound from the lows of the day. The Nifty is trying to move towards 2600 mark, but it is not happening. The Sensex is trading below 8500 level. Negative European and Asian markets weighed on the markets.
The Sensex plunged 361 points to 8,411 and the Nifty fell 90 points to 2,545, at 2:14 hrs IST. BSE Midcap and Small cap indices are still down over 3.4% each.
Reliance Industries, ICICI Bank, Bharti Airtel, Infosys, HDFC Bank, DLF, HDFC, TCS, BHEL, Sun Pharma, Maruti, L&T and SBI are still dragging the frontline indices lower.
Market breadth is in favour of declines on account of sell-off in broader indices. About 177 shares have advanced while 1,061 shares have declined.
Realty and Bankex tumbled 5-6%. Auto, Oil & Gas, TECK, Metal, IT and Capital Goods indices lost 2.8-4%.
Among the midcap stocks, BGR Energy, Educomp Solutions, Deccan Chronicle, Sadbhav Engg and Redington fell 10-12%.
In the small cap space, Amtek India, Temptation Food, Federal-Mogul, Murli and Subhash Project went down 13-20%.
On the global front, European markets are also trading weak. FTSE fell 77 points to 3,927. CAC and DAX lost 91 points and 136 points to 2,996 and 4,217, respectively.
The Dow Jones Futures went down 76 points to 7,951 and the Nasdaq Futures fell 14.5 points to 1,078.
Markets @ 1:04 pm : Mkts under pressure; Tata Power, ICICI Bank, HDFC lag
The markets are trading sharply lower despite showing a bit of recovery from the lows of the day. Slump in US and Asian markets are the main reasons for this fall. Rate sensitive, telecom, metal, technology, and oil stocks are reeling under pressure. The Sensex is trading above 8,400 and the Nifty is still holding above the 2,500 mark.
The Sensex plunged 321 points to 8,452 and the Nifty fell 82 points to 2,553, at 1:04 hrs IST. BSE Midcap and Small Cap indices lost at around 3.5% each.
Tata Power, ICICI Bank, HDFC and Reliance Communication are top losers. However, ACC, Siemens and Nalco are gainers.
Inflation is the non-event today, as it is on the expected lines. It stood at 8.95% for the week ended November 8 as against 8.98% in the earlier week. CNBC-TV18 poll was seen inflation at 8.82%. Reacting to the cooling-off inflation numbers, Shubhda Rao, Chief Economist, Yes Bank, said, “The trend is clear that inflation is softening. I would think inflation would go down to anywhere between 8.8%–8.7% next week. Within the manufacturing space, we are clearly seeing some softening.”
Market breadth is still dismal due to weakness in broader indices; about 584 shares have advanced while 2,177 shares have declined. Nearly 432 shares are unchanged.
BSE Realty Index fell 6.5%. Bankex, Auto and Metal lost 4-5%. TECk, IT, Power, Oil & Gas, and Capital Goods indices lost over 3%.
Turnover traded in the BSE Cash segment, so far, stood at Rs 1,467 crore. In the NSE Cash and F&O segment, turnover was at Rs 4,039 crore and Rs 21,706 crore, respectively.
Markets @ 11:49 am : Nifty slipping towards 2500, as Asian mkts extend losses
Continuous sell-off in realty, banking, oil, telecom, auto and metal stocks are putting pressure on the benchmark indices. The Nifty is trading below 2550 and the Sensex is hovering at 8300-8400 level. Asian markets extended losses further, as Nikkei and Kospi fell over 6.5% each.
The Sensex plummeted 447 points to 8,326 and the Nifty fell 128 points to 2,506, at 11:49 hrs IST. BSE Midcap and Small Cap indices lost 3.7% each. All indices are in red and not a single stock is trading in green on the Sensex and Nifty.
Unitech, Tata Power, Reliance Communication, Tata Communication, ICICI Bank, Reliance Infrastructure, DLF, HDFC and HDFC Bank tumbled 6-9%. Sun Pharma, Idea Cellular, Hero Honda, Maruti Suzuki, Wipro, PNB, Reliance Industries, Bharti Airtel and Sterlite Industries lost 5-6.8%.
BPCL, Ambuja Cements, GAIL, M&M, Cairn India, Grasim, Power Grid Corp, NALCO, Satyam and Cipla fell 4-4.8%. TCS, HCL Tech, Infosys, Hindalco, BHEL, Reliance Power, ONGC, Reliance Petro, Tata Motors, HUL, Tata Steel, SBI and Ranbaxy Labs lost 3-3.8%.
BSE Realty index cracked nearly 8%. Bankex plunged close to 6%. Oil & Gas, Metal, Teck, Auto, Power, and IT indices fell 4-5%. Capital Goods, Healthcare and FMCG lost 2-3.4%.
Market breadth is weak; about 604 shares have advanced while 2,136 shares have declined. Nearly 453 shares are unchanged.
On the global front, Asian markets are under pressure. Nikkei and Kospi lost over 6.5%. Hang Seng and Taiwan fell 4.5-5.5%. Shanghai, Straits Times and Jakarta tumbled 2.4-3.7%.
The Dow Jones Futures is down 105 points to 7,922 and the Nasdaq Futures fell 11 points to 1,081.
Markets @ 10:50 am : Nifty struggles @ 2550; realty, bank, oil, auto stocks dip
The benchmark indices continue to reel under selling pressure, as downtrend is seen in rate sensitives, oil & gas, infrastructure, metal and telecom sectors. Midcap and small cap stocks are following the same trend. On the global front, Asian markets are under pressure following big slump in the US markets.
Reliance Industries, Bharti Airtel, ONGC, ICICI Bank, DLF, BHEL, Reliance Communication, HDFC, HDFC Bank, Infosys, SBI, TCS, NTPC, L&T and Wipro are taking beating on the bourses.
The Sensex fell 341 points to 8,432 and the Nifty plunged 95 points to 2,540, at 10:50 hrs IST. BSE Midcap and Small cap indices lost 3.4% each.
Vibhav Kapoor, IL&FS, said global recession is getting severe now, and so Indian markets will suffer all the more. Most Indian participants were too optimistic about the Indian story over last one year, but now the harsh reality has hit and it’s seen that Indian market have been underperforming amongst the rest of Asian markets.
Kapoor said markets are showing weaker signs and the top looks closer to about 2,800 to 2,900 and market may test the October lows and would also go much lower than those lows.
Polaris Software crashed over 8%, as there are reports that Citi has put in 40% stake in the company on the block and is in talks with potential players.
However, the company is denying this report. Arun Jain, Chairman and CEO of Polaris said that there are no talks with Citi on any stake sale as of now. Don't believe Citi would sell stake at current valuations, he said.
Market breadth is in favour of declines; about 630 shares have advanced while 2,115 shares have declined. Nearly 448 shares are unchanged.
Crude is trading USD 50.3 to a barrel on the NYMEX. Indian Rupee is trading at 50.47 to a dollar, after hitting an all-time low of 50.58/$
On the global front, Asian markets are weak. Nikkei and Kospi dipped over 6%. Hang Seng lost 5.5%. Jakarta, Straits Times and Taiwan tumbled 3-4.4%. Shanghai lost 1.2%.
Markets @ 9:56 am : Mkts crash on weak global cues; Sensex below 8500
The markets crashed in early trade following big slump in Asian and US markets, due to Fed cuts economic growth forecast for 2008 and 2009 and weak housing data. This is the seventh day in a row that the benchmark indices have been falling towards October lows.
Selling is seen in banking, technology, capital goods, telecom, metal, real estate adn oil stocks.
At 9:56 am, the Sensex declined by 378 points to 8,395 and the Nifty fell 103 points to 2,531. CNX Midcap lost 103 points to 3,277.
HDFC Bank, Reliance Industries, L&T, BHEL, Hindalco, ICICI Bank, HDFC, Unitech, DLF, Reliance Infrastructure, Satyam, Sterlite, HCL Tech and Idea are major losers. ICICI Bank plunged over 10%.
The Indian rupee hit all-time low of 50.58 to a dollar.
Asian markets are trading extremely weak. Hang Seng, Nikkei and Kospi lost 5-6%. Taiwan, Jakarta, Straits Times and Shanghai tumbled 1-4%.
NYMEX December Crude slipped further on high inventories and decline in demand. It is trading at USD 53.3 to a barrel on the NYMEX. Crude inventories gained by 1.6 million barrels to 313.5 million barrels.
Aluminum is trading at 3-year lows and Copper at 4 year lows. Tin slipped to 3-week lows as inventories gained 27% this month.
US markets breached October lows on Wednesday and closed at 5-year lows, as Federal Reserve cut economic growth forecasts for 2008 and 2009 in FOMC minutes. There are concerns over the fate of auto makers and housing market data was weak. Dow Jones ended down 428 points or 5.1% at 7997 and Nasdaq ended down by 97 points or 6.5% at 1386.4. S&P 500 closed down by 52.5 points or 6.1% at 806.5.
Market cues:
US markets breach Oct lows; close at 5-year lows
Asian markets open weak after US markets plunge
Inflation data today; CNBC-TV18 poll sees it at 8.82% versus 8.98%
FIIs net sell USD 91.5 million in equity on November 18
MFs net sell Rs 45 crore in equity on November 18
NSE F&O Open Int up by Rs 702 crore at Rs 49,919 crore
F&O cues:
Stock Futures add 85 lakh shares in Open Int
Stock Futures start early rollovers, huge build-ups in Dec series
Futures Open Int up by Rs 230 crore, Options Open Int up by Rs 472 crore
Nifty Nov Futures add 1.5 lakh, Dec Futures add 9 lakh shares in Open Int
Nifty Nov at 8-point discount, Dec at 13-point discount
Nifty Open Int Put-Call ratio at 0.91 versus 0.94
Nifty Puts add 2 lakh, Calls add 14 lakh shares in Open Int
Nifty 2600 Put adds 3 lakh shares in Open Int
Nifty 2700 Call adds 8.2 lakh shares in Open Int
Nifty 2600 Call adds 4.3 lakh shares in Open Int
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