Mumbai: A handsome recovery from lowest point of the day could not save the market from registering its third consecutive session of loss on Monday. While short covering and a rebound in global markets drove the recovery in the last couple of hours of trade, a steep cut in oil & gas, capital goods, metals, FMCG, power and auto stocks forced a negative closure. A drastic fall in international commodity price too weighed on the market on Monday.
The 30-share BSE Sensex fell 110.96 points or 0.69 per cent, to close at 16051.10 after seeing recovery of 250 points from day's low of 15,801.01. The 50-share NSE Nifty hit an intra-day low of 4,758.85, before closing at 4,835.40, down 32.35 points or 0.66 per cent.
Billionaire investor Rakesh Jhunjhunwala believes the market should not drop more than 10 per cent from current levels. "The near-term expectations are that it [Nifty] will not break the last bottom, which was around 4700-4750," he reiterated.
According to him, two things might work in favour of Indian market. "We have had a good monsoon and the commodity prices have come down dramatically," he said adding, "if the inflation can be tackled or corrected, which it could if the commodity prices come down, then I think we will see peaking of the interest rate cycle. And if interest rates come down, India will do very well."
He feels the Indian market is well poised at the moment and investors should capitalise on the investment opportunity.
Robert Parker, VC of Credit Suisse Asset Management too said, equity markets globally, by any criteria— forward price earnings, price to book ratio, EPS ratios, dividend yields — seem to be cheap relative to history and relative to other asset classes and most significantly relative to fixed income markets.
According to him, investor sentiment is negative. However, he said, downside risk in equities is very limited.
On the global front, European markets like France's CAC and Germany's DAX rose 2 per cent each. Meanwhile, Britain's FTSE went up 0.5 per cent. Even the Dow Jones futures gained 69 points.
On the home turf, heavyweights like Reliance Industries, ONGC, NTPC, ITC, L&T and HDFC Bank were down 1-2 per cent.
Commodity related stocks like Sterlite Industries, JSPL, Hindalco, Sesa Goa and Cairn India plunged 2.5-4 per cent.
However, Bharti Airtel, ICICI Bank, DLF, Ranbaxy Labs and Ambuja Cements gained 1.6-2 per cent. Jaiprakash Associates was the biggest gainer - rose 3 per cent.
Technology stocks were on buyers' radar - TCS and Infosys gained 0.7 per cent each.
Total traded turnover was more than Rs 2.07 lakh crore. About four shares declined for every one share rising.
The broader indices underperformed benchmarks - the BSE Midcap Index was down 1.5 per cent and Smallcap down 1.7 per cent.
Commodities too recovered smartly after witnessing huge sell-off. Gold was down 0.8 per cent to $ 1624 an ounce. Silver fell just 3.3 per cent to $ 29 an ounce, which plunged over 13 per cent in an intra-day trade.
Crude oil was trading flat at $ 79.92 a barrel (it was down over 2 per cent during the day) while copper fell just over 1 per cent.
At 2:40 pm: Sensex makes smart recovery
The market made a smart recovery from day's low to trade flat with a negative bias, following rebound in global markets. Bharti, ICICI Bank, TCS, Infosys, SBI and Wipro were lead players in this recovery. The 50-share NSE Nifty slipped 14 points to 4,853 and the 30-share BSE Sensex fell 47 points to 16,115 after showing more than 300 points recovery from day's low of 15,801.01.
European markets like France's CAC and Germany's DAX jumped 2 per cent each; Britain's FTSE rose 0.5 per cent. Even the Dow Jones futures gained 0.6 per cent, which lost more than 1.5 per cent.
On the home turf, heavyweights like Bharti Airtel and ICICI Bank shot up 2.5-3 per cent. TCS, Infosys, SBI, DLF and Wipro were up 0.5-1.5 per cent.
Jaiprakash Associates was the biggest gainer - jumped 3 per cent. Tata group stocks too got back into green - Tata Steel, Tata Power and Tata Steel rose 0.5 per cent each.
However, largecaps like L&T, ITC and NTPC went down 1.3-1.7 per cent. ONGC and Reliance Industries fell 0.7 per cent each.
Sterlite Industries, Hero Motocorp, Cairn, Hindalco, Bajaj Auto, GAIL and Sesa Goa tumbled 2-3.5 per cent.
But the broader indices underperformed benchmarks - the BSE Midcap and Smallcap indices fell 1.2 per cent each.
At 1:27 pm: Sensex trims losses on global recovery, down over 100 pts
Indian equity benchmarks trimmed losses post recovery in European markets. The 30-share BSE Sensex was trading at 16,025, down 136 points (recovered 225 points from day's low) and the 50-share NSE Nifty was down 45 points at 4,822.
Meanwhile, European markets like France's CAC and Britain's FTSE were trading with a 0.5 per cent cut while Britain's DAX gained 1 per cent. A few Asian markets too cut their losses in late trade; Hang Seng pared it losses to 1.65 per cent from near 4 per cent earlier.
Straits Times was trading 1.7 per cent lower (from 2.7 per cent earlier) and Shanghai, Nikkei, Kospi and Taiwan closed 1.6 per cent-2.6 per cent lower. The Dow Jones and Nasdaq futures too trimmed their losses to 0.4 per cent from 1.5 per cent.
On the home turf, Bharti Airtel and ICICI Bank were leading gainers - Both rallied 1.6 per cent each. HDFC, BHEL, SBI and TCS were trading flat after recovery.
However, Reliance Industries, ITC, NTPC, L&T and HDFC Bank slipped 1.3-1.9 per cent. Sterlite Industries, Cairn India, Sesa Goa and Hindalco were top losers - tumbled 4-5 per cent.
About six shares declined for every advancing share. The broader indices underperformed the benchmarks - the BSE Midcap and Smallcap indices fell 1.8 per cent each.
New listing - PG Electroplast witnessed huge buying interest after sell-off in early trade. It surged 41 per cent to Rs 297 as against issue price of Rs 210 a share.
At 12:38 pm: Nifty struggles at 4800 despite news of a possible STT cut
Indian equity benchmarks reacted positively to claims that finance ministry may consider a cut in securities transaction tax (STT) and propose a concession on stamp duty on equities. The 30-share BSE Sensex recovered part of its losses to trade 210 points lower at 15,951. Meanwhile, the 50-share NSE Nifty stood at 4,802, down 65 points. But weak global cues due to poor opening in European markets weighed heavy.
European markets like France's CAC, Germany's DAX and Britain's FTSE were down 1.5-2 per cent in the opening trade. Even the Dow Jones and Nasdaq futures fell 1.5 per cent each.
Among Asian markets, Hang Seng and KLSE Composite crashed 3.8 per cent. Meanwhile, Jakarta Composite tumbled 6 per cent. Shanghai, Nikkei, Straits Times, Kospi and Taiwan were down 1.5-2.6 per cent.
On the home turf, the BSE Metal Index hit hard - lost 4 per cent. Capital Goods, Realty, Oil & Gas, FMCG, Auto and Bank indices fell 2-2.5 per cent. Power, Healthcare and IT indices dropped over 1 per cent.
Largecaps like Reliance Industries, ITC, HDFC Bank, L&T and NTPC went down 2-2.8 per cent. ONGC, TCS, Infosys and SBI were down 0.9-1.4 per cent. However, Bharti Airtel and Wipro were only two gainers on Nifty.
About eight shares declined for every share rising. The broader indices slipped more than 2 per cent.
On the MCX, Gold October futures fell 6 per cent to Rs 25,118.00 per 10 grams and Silver tumbled 11.5 per cent to Rs 47,574 per kg.
Crude oil October futures declined 3.7 per cent to Rs 3855 per barrel. Copper, Nickel, Lead and Zinc were down 4.5-7 per cent.
At 11:27 am: Sensex sheds over 300 pts; commodities under pressure
The slide in market accelerated as global cues worsened. Likely recession in European continent triggered panic selling from investors. The 30-share BSE Sensex plunged 318 points to 15,843 and the 50-share NSE Nifty lost 97 points to 4,771.
"Market is likely to witness immense amount of volatility from the current levels on the back of debt crisis in Europe," said Saurabh Mukherjea, head of equities, Ambit Capital.
Speaking to CNBC-TV18 about the possible downside to the Indian market due to global events he said that Sensex is expected to move towards 14,500 levels over the next few months. "We will continue to be sellers in this market due to global cues," he added.
Asian markets like Hang Seng, Nikkei, Kospi, Taiwan and Straits Times were down 2 per cent each. Shanghai slipped 1 per cent. The Dow Jones futures dropped 0.5 per cent.
On the home turf, Sterlite Industries, Coal India, Hindalco and Sesa Goa were biggest losers on Nifty, falling 5 per cent. HDFC Bank, Bajaj Auto and Cairn India were down 3.5-4 per cent.
Heavyweight Reliance Industries tumbled 2.6 per cent to Rs 750.75 a share. HDFC Bank, ITC, TCS, NTPC, L&T and SBI dropped 1-3 per cent.
However, Tata Power was down 1.3 per cent and Wipro slipped 0.65 per cent.
SBI, Reliance Industries, L&T and GE Shipping were most active shares on exchanges.
About seven shares fell for every share rising on NSE. The BSE Midcap Index plunged 2 per cent and Smallcap fell 1.8 per cent.
In the midcap space, KGN Industries, EIH, Hathway Cable, Kirloskar Oil and Birla Corp gained 2-5 per cent while Shree Global, HOEC, Financial Tech, DB Realty and Petronet LNG fell 5-10 per cent.
Smallcap stocks like Modern India, Entegra, Emami Paper, OM Metals Infra and Jayaswal Neco shot up 9-18 per cent. However, Arshiya Intl, Pratibha Industries, Money Matters, Tuni Textile and ARSS Infra slipped 6-9 per cent.
At 10:24 am: Asia butchered: Sensex dips below 16000, Nifty at 4800
Equity benchmarks fell further in line with rest of Asia. Oil & gas, capital goods, FMCG and private banks stocks were under pressure. The 30-share BSE Sensex was trading at 15934, down 228 points and the 50-share NSE Nifty fell 69 points to 4798, led by panic selling.
Among Asian markets, Hang Seng, Nikkei, Straits Times, Kospi and Taiwan were down 1.5-2 per cent. Jakarta Composite fell over 4 per cent and KLSE Composite slipped nearly 3 per cent. Shanghai declined just 0.5 per cent. Thailand plunged 6.5 per cent.
Macquarie Securities said equity markets continued to face downside risks.
Among commodities, Silver crashed 7 per cent. Crude slipped below USD 80 a barrel on the NYMEX.
John-Paul Smith of Deutsche Bank said the next phase of the unraveling of the carry trade might lead to major decline in commodity prices and increase signs of distress among EM corporates. "This could result in further underperformance of equities," he added.
On the sectoral front, the BSE Metal Index slipped 3 per cent on the back of fall in commodities prices in international markets.
Oil & Gas, Capital Goods, FMCG, Auto, Realty and Bank indices were down 1-1.7 per cent.
Largecaps like Reliance Industries, HDFC Bank, ITC, L&T and HUL were down 1-2 per cent. ONGC and SBI fell 0.7 per cent each. Sterlite Industries plunged 4 per cent.
However, Wipro, TCS, Dr Reddy's Labs, Tata Power and Maruti were only gainers.
About three shares declined for every share rising on NSE.
At 9:19 am: Sensex drifts lower on weak Asian cues; metals dip
Indian equity benchmarks fell over 0.5 per cent in the opening trade following weak Asian cues, and pressing European debt problems. Fall in commodity prices and rupee also added fuel to the fire.
At 9:18 am, the 50-share NSE Nifty lost 34 points to 4,833 and the 30-share BSE Sensex fell 121 points to 16,041 amid volatility. About 334 shares advanced as against 511 shares declined on NSE.
Metal stocks like Sesa Goa, Hindalco, Sterlite, JSPL and Tata Steel declined more than 1 per cent on the back of fall in commodities prices in international markets.
Among largecaps, Bharti Airtel, HUL, L&T, Jaiprakash Associates, HCL Tech, Reliance Infrastructure, Reliance Communications, Kotak Mahindra Bank, Axis Bank and HDFC were witnessing selling pressure.
However, TCS, Wipro, SBI, Tata Power (ex-split from Rs 10 to Re 1) and Cipla were on buyers' radar.
The Indian rupee depreciated to 49.60 per dollar, down 0.34 per cent from previous day's closing value.
New listing - PG Electroplast fell 7 per cent to Rs 196 as against issue price of Rs 210 a share.
HCC, Arvind, Mahindra Satyam and Tech Mahindra were up 1 per cent.
EIH shot up 5 per cent post SEBI issued takeover norms. RCF rose 2.3 per cent.
SKS Microfinance was locked at 5 per cent lower circuit.
Coal India was down 1.5 per cent.
Global cues
Asian markets were trading lower. Hang Seng, Shanghai, Kospi and Taiwan were down 0.7-0.8 per cent. Nikkei fell 1.65 per cent and Straits Times slipped 1.3 per cent. SGX Nifty fell 25 points at 4840.
The US equity markets recovered from day's low on positive noises from IMF meeting on Friday. Gold, oil, and other commodities remained under pressure as dollar continued to move higher.
IMF policymaking panel of 187 nations agreed to work decisively and in a co-ordinated way to tackle Europe's debt crisis post meeting during the weekend; ready to support further efforts beyond financial bailouts for Greece, Ireland and Portugal. But it did not spell out detail.
The Dow Jones posted worst week since October 2008 - seventh weekly slide in nine weeks time.
The Dow Jones Industrial Average ended up 38 points at 10,771, after seeing recovery of 130 points from day's low of 10,638 on Friday. It was down 6.4 per cent for week and down 7 per cent YTD.
The NASDAQ Composite ended up 27 points at 2,483, after seeing recovery of 46 points from day's low of 2,438. It was down 5.3 per cent for week and down 6.4 per cent YTD.
The S&P 500 Index ended up 7 points at 1,136, after seeing recovery of 15 points from day's low of 1,121. It was down 6.5 per cent for week and down 9.6 per cent YTD.
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