New Delhi: It was a terrible session for the markets, as benchmark indices got crushed in line with global markets meltdown, but they have well managed to recover in second half of session and ended off day's low. All indices closed in red. Major sell off was seen in FMCG, technology, banking and capital goods stocks. Midcap and small cap stocks are worst hit. Finance Minister statement was also helpful for markets a bit.
Benchmark indices had started with sharp cut following weak global markets, as Fed Chairman Ben Bernanke had made cautious comments on US financial space. First couple of hours were dreadful for the markets but in the second half of session, markets recovered sharply from day's low.
The Sensex has recovered 587.6 points and Nifty 184.2 points from an intraday low of 10,740.76 and 3329.45, respectively. The Sensex closed at 11,328.36, down 366.88 points or 3.14 per cent. The Nifty fell 92.95 points or 2.58 per cent, to settle at 3513.65.
Finance Minister, P Chidambaram said, "Markets are reacting to what is happening in the US and Asian markets. In fact after the statement by Fed Chairman Ben Bernanke yesterday evening and the manner in which the Asian markets opened this morning, we anticipated that there would be some selling pressure in the Indian markets. Fundamentally, there is nothing wrong in the economy. The fundamentals do not warrant any hasty or precipitous action on the part of investors to sell."
"All our banks are well capitalised, bank capital is between 10 per cent and 13.65 per cent which is well above Basel norms. Everybody in the world accepts the fact that our banks are well capitalised", he said.
Among the frontliners, Jaiprakash Associates, Wipro, Sterlite Industries, ICICI Bank, SBI, Suzlon Energy, Zee Entertainment, BPCL and Siemens dropped 6-10 per cent.
However, Ranbaxy Labs rose 9.08 per cent, after the news that US Department Of Justice withdrawn motion against Ranbaxy. Other gainers like Tata Power, Mahindra & Mahindra, Maruti Suzuki, DLF and NALCO were up 2-4.8 per cent.
Market breadth was pathetic; about 605 shares have advanced while 2381 shares have declined. Nearly 196 shares remained unchanged.
Total turnover traded in markets stood at Rs 75,587.35 crore. This includes Rs 12,807.82 crore from NSE Cash segment, Rs 57,666.95 crore from NSE F&O segment and balance Rs 5,112.58 crore from BSE cash segment.
After market hours, US Fed has cut discount rate by 50 bps to 1.50 per cent. Dow Jones futures surged 250 points after rate cut announcement. Fed has voted 10-nil to cut rates.
Bank of England and European Central Bank have also cut rates by 50 bps each. China cut rates by 27 bps; it also cuts reserve requirements by 50 bps.
Federal Reserve said that financial crisis has increased downside risk to growth. Economic pace of activity has slowed markedly. Inflation expectations are diminishing. Fed has acted due to weakening economy and inflationary pressure.
On the global front, Asian markets dropped sharply. Nikkei closed down by 9.38 per cent, to settle at 9,203.32; it fell most since 1987. Jakarta Composite fell 10.38 per cent. Straits Times, Kospi and Taiwan tumbled 5.7-6.6 per cent. Shanghai fell 3.04 per cent.
Hang Seng lost 8.17 per cent, to close at 15,431.73. It slipped below 16,000 mark for the first time in two years. Hong Kong Monetary Authority has cut interest rate by 100 bps.
Japanese currency, Yen has breached 100 to a dollar for the first time since last 6 months. Japan's corp bankruptcies jumped 34 per cent last month, which was fastest in 8-year.
Russia and Indonesia have halted stock trading after benchmark index tumbled 10 per cent. Russia's RTS fell 11.25 per cent.
European markets have recovered marginally post rescue package announcement, as they plunged over 6-8 per cent during the day. UK Treasury will inject USD 87 billion in European banking system. UK government will buy preference shares and provide special liquidity plans for banks to borrow. FTSE was down 3 per cent, CAC -3.58 per cent and DAX -4.06 per cent.
IMF said that losses on U.S. sub-prime would ultimately total USD 1.45 trillion, more than 50 per cent higher than its previous estimate of USD 945 billion; world's major banks may need USD 675 billion in fresh capital.
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Markets @ 3:53 pm : Mkts off day's low; Nifty struggles @ 3500
Markets are trading off day's low. All indices are still in red. Major selling pressure is seen in technology, metal, banking, FMCG, telecom and realty stocks. Midcap and small cap indices are down over 6 per cent.
The Sensex lost 398 points at 11,296 and the Nifty fell 101 points to 3,504, at 3:53 pm.
Jaiprakash Associates, Wipro, Satyam, Suzlon and Zee Entertainment are top losers while gainers are Ranbaxy Labs, Tata Power, M&M and Nalco.
Market breadth is still weak; about 522 shares have advanced while 2464 shares have declined. Nearly 196 shares are unchanged.
On the global front, European indices plunged 4-5 per cent. The Dow Jones and S&P 500 futures are down 2-2.5 per cent.
Markets @ 2:40 pm : Mkts slaughtered on global indices meltdown
Market have smartly recovered from intraday low, but are still trading sharply lower, as global indices are under extreme pressure. BSE Metal, IT, Bankex, Auto, FMCG, Healthcare, Capital Goods, Realty and Oil & Gas indices fell around 3-5 per cent.
The Sensex tumbled 442 points at 11,252 and the Nifty lost 119 points to 3,487, at 2:40 pm. BSE Midcap and Small cap indices are still down over 6 per cent.
Market breadth is under pressure; about 484 shares have advanced while 2512 shares declined. Nearly 186 shares are unchanged.
Top losers are Satyam, Sterlite Industries, Jaiprakash Associates and Zee Entertainment. However, Ranbaxy Labs, Tata Power, DLF and M&M are top gainers.
On the global front, European markets are down 4-5 per cent. Dow Jones and Nasdaq Futures fell 2-3 per cent.
Russian stock exchange, RTS has halted trading, which fell 11.25 per cent.
Markets @ 1:36 pm : Mkts nosedive on sharp cut in European indices
Markets are witnessing fresh bouts of selling and have slipped further, as European markets are under severe pressure. FTSE, DAX and CAC fell 6-8 per cent. Sharp cut is seen in metal, banking, technology, FMCG, realty and oil stocks.
Insurance companies have come to rescue the market from heavy sell off and are buying into large cap stocks. However, flows are still negative at FII desk; buy/sell ratio stood at 1:2. Domestic mutual funds are raising cash levels and dealers are fearing redemption pressure.
Selling pressure in non index and midcap stocks to continue. Tech stocks are under pressure post Goldman Sachs downgrade report.
The Sensex plummeted 714 points at 10,980 and the Nifty fell 206 points at 3400, at 1:36 pm. BSE Midcap and Small Cap indices plunged 7-8 per cent.
Among midcap stocks, Aurobindo Pharma, Monnet Ispat, S Kumars Nationwide, Kingfisher Airlines and Vishal Retail fell 20-24 per cent.
In the small cap space, Nectar Life, Gati, Kirloskar Pneum, SEL Manufacturing, Mahindra Ugine and Elpro Int lost 19-20 per cent.
Market breadth is negative; about 467 shares have advanced while 2515 shares declined. Nearly 200 shares are unchanged.
However, only Ranbaxy Labs and Mahindra & Mahindra are holding in green on the bourses. It rose 4 per cent and 0.6 per cent, respectively.BLUR_B
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