2:24 pm
Jack
Already shattered Indian equity benchmarks received a further blow when European markets opened with deep cuts. Market breadth worsened since morning- about six shares slipped for every share gained. The 30-share BSE Sensex tanked 457 points to 16,410 and the 50-share NSE Nifty cracked 144 points to 4,915 led by fall in 48 stocks. Nifty 4900 put was seeing massive buying today; it added 3 lakh shares in open interest.
“With nothing much to look forward to domestically, India will continue to track global cues,” says Amit Bhartia, Partner, GMO. He says that cues from Europe were very critical over the next few months. “While global equities are in the midst of a big bear market, domestic participation in India is seen at record lows,” he says.
Among European markets, France's CAC plunged over 4%. Britain's FTSE was down 2% and Germany's DAX tanked 3%. The Dow Jones futures fell 180 points.
On the home turf, metal, technology, bank, auto, realty and capital goods stocks slid further; respective indices dipped 2.5-3.5%.
Heavyweights Reliance Industries, TCS, Bharti Airtel, Infosys, ICICI Bank, SBI and L&T were down 3-4.5%. Among others, NTPC, HDFC, HDFC Bank, Wipro and ITC fell 1-3%.
Tata Motors, JSPL, HCL Tech and Reliance Communications were biggest losers; there stocks dropped 5-6.5%. However, only HUL and Ambuja Cements were trading in the green; gained 3% and 0.8%, respectively.
At 12:16 hours IST : Sensex dives 380 pts; Metal, IT, bank shed 2.5-3%
Close to 380 points fall on the Sensex has confirmed that the short-term rally is now over. Factors spreading the negative sentiment included worse-than-expected industrial production date, continuous fall in rupee and a very real Eurozone scare. The 30-share BSE Sensex was trading at 16,486, down 380 points and the 50-share NSE Nifty was trading at 4,939, down 120 points.
The Index of Industrial Production (IIP) growth for the month of July, 2011 saw a sharp decline at 3.3% compared to 8.8% in the previous month. The IIP growth for the April-June quarter was at 5.8% compared to 9.7%, year-on-year (YoY). The dismal number was mainly on account poor performance by capital goods, manufacturing and mining sectors, reflecting sluggishness in the economy.
The rupee touched a fresh one-year low as dollar strengthened. It was at 46.97 as against US currency while its September contract hit 47/USD on the MCX-SX.
Not a single sector was trading in the green on BSE. Metal, IT, Bank and Capital Goods indices were down 2.5-3%.
Among largecaps, TCS, Reliance Industries, Bharti, Infosys, SBI, ICICI Bank, L&T and Wipro plunged 2-3.5%.
However, HUL shot up 3.5%. Ambuja Cements, Cipla and Grasim were other gainers.
SBI, GTL, Pipavav Shipyard, Reliance Industries, TD Power System, L&T and ICICI Bank were most active shares on exchanges.
Among midcaps, Pipavav, GTL, Financial Tech, Marico and Hindustan National Glass rallied 3-6% while Sujana Towers, IVRCL, S Kumars Nationwide, Indiabulls Real and Jai Corp fell 5-9%.
In the smallcap space, MSP Steel, Gokaldas Export, Falcon Tyres, Ontrack Systems and Seshasayee Paper were up 5-9%. However, Dion Global, Parenteral Drug, aurionPro Solutions, Madhucon Projects and Petron Engg lost 7-10%.
About three shares declined for every share gaining on BSE.
On the global front, Hang Seng crashed 4%. Nikkei and Taiwan fell 2-2.7%.
