Sensex ends 365 pts down; IIP nos, Greece woes spook mkt

12 Sep 2011

Indian equity market fell prey to falling industrial production growth, sliding rupee and rising European woes on the first day of trading week. The 30-share BSE Sensex dropped 365.23 points, to close at 16,501.74. The 50-share NSE Nifty has managed to hold the 4900 mark amid sell-off, though it lost 112.65 points, to close at 4,948.80.

Benchmarks cracked as July Industrial output data came in at dismal 3.3% against 8.8% in June and rupee fell to 47 to a dollar.

Rajesh Agarwal, Head of Research at Eastern Financiers said the market has already seen a cut. ''I believe that we are in a safe territory unless it breaks 4900, so I will wait for that'' he adds.

Peter Elston, Strategist at Aberdeen Asset Management Asia said, "It's all about Europe right now and the main question related to whether or not the politicians have the resolve or the ability to rescue Greece and whether or not the contagion spreads beyond Greece. It is quite unclear right now whether the politicians do indeed have the ability to put some sort of rescue together."

While he urges investors to prepare for some more correction, he suggests the weakness in the Asian space is a great buy call.

European markets hit 26-month low on Greece worries. German DAX slipped below the 5,000 level for the first time since July 2009. France's CAC and Germany's DAX were down 4% and 2.8%, respectively. Britain's FTSE slipped 2%, at the time of closing of Indian equities.

Juergen Stark, a German, unexpectedly quit the European Central Bank's executive board last week; he opposed the ECB's purchases of bonds from debt-laden countries. Even there were reports that Germany is planning to support certain banks if Greece defaults on its debt.

The Dow Jones futures slipped 178 points, which indicating fall in US markets today. Asian markets like Hang Seng, Nikkei and Straits Times closed 2-4% lower.

On the home turf, Indian rupee has touched 14-month low today. It crossed the 47 per dollar mark today, fell 1.3% on weak European cues.

The Index of Industrial Production (IIP) growth for the month of July, 2011 came in at 3.3% compared to 8.8% in the previous month. The dismal number was mainly on account poor performance by capital goods, manufacturing and mining sectors, reflecting sluggishness in the economy. 

"The number is definitely shocking though the consensus had a fixed percent plus. Over the last ten days, one could see that the confidence level among the business community is very low. It is far worse than even 2008 and 2009; it's absolutely dismal," PN Vijay, portfolio manager, pnvijay.com said.

All sectoral indices closed in the red. Metal, technology, realty, banking and capital goods sectors saw major selling pressure; respective sectoral indices tanked 2-3%.

SBI and ICICI Bank from the financial space fell 4%. Infosys, TCS and Wipro from technology space tumbled 2.5-4%.

Heavyweights Reliance Industries, L&T and Bharti Airtel were down 2-3.6%. Tata Steel, Tata Motors, Tata Steel, Hindalco, JSPL, Sterlite Industries and Jaiprakash Associates crashed 4-5%.

However, HUL and Ambuja Cements were on buyers' radar - both gained 4%. Sun Pharma, Grasim and Cipla were other gainers.

The broader markets too followed the benchmarks - the BSE Midcap and Smallcap indices were down over 1.8%.

About four shares dropped for every share rising on NSE. Total traded turnover was more than Rs 1.35 lakh crore.

Nifty struggles at 4950; spot rupee hits 47/USD

Equity benchmarks didn't show any signs of recovery. Endless Eurozone debt crisis had already spooked markets world over, and now a sharp fall in industrial growth in India and rupee at new one-year low added fuel to the fire.

The 30-share BSE Sensex was trading at 16,499, down 367 points and the 50-share NSE Nifty fell 114 points to 4,945. The Indian rupee (spot rate) depreciated to 47.09 per dollar, down 0.61 or 1.32%.

European markets like France's CAC, Germany's DAX and Britain's FTSE were down 2-4%. The Dow Jones futures fell 175 points.

On the home turf, the sell-off continued in major sectors like technology, banking, metal, capital goods and oil & gas; respective sectoral indices lost 2-3.5%.

Top losers included Tata Steel, Hindalco, SBI, Tata Motors, Sterlite Industries, HCL Tech, Reliance Power, IDFC and Reliance Infrastructure tumbled 4-7%.

However, Ambuja Cements and HUL bucked the trend; both gained 4%. Sun Pharma, Cipla and Grasim were other gainers.

About 851 shares advanced as against 1981 shares declined on BSE.

Sensex sees slight recovery, trades 300 pts down

Indian equity benchmarks have butchered though showed some recovery on the back of bottom fishing by investors. The 30-share BSE Sensex fell 358 points to 16,507, which recovered over 100 points from day's low. The 50-share NSE Nifty dropped 111 points to 4,948. The broader indices were down 1.5-1.8%.

Among European markets, Britain's FTSE too witnessed some recovery - it was down over 1%. Meanwhile, France's CAC and Germany's DAX were down 2.3-3.5%. The Dow Jones futures fell 165 points.

On the home turf, disappointing industrial output data and depreciation in rupee as against dollar weighed on the market barring weak global cues.

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 due to poor performance by capital goods, manufacturing and mining sectors.

Among the sectoral indices, the BSE Metal, IT, Realty, Bank, Auto and Capital Goods indices were down 2-3%.

Largecaps like HCL Tech, Jindal Steel, Reliance Power, Reliance Infrastructure, IDFC, Tata Steel, Hindalco, Jaiprakash Associates and ICICI Bank plunged 3.5-6%.

However, HUL rallied 3.78% and Ambuja Cements jumped 3.35%. Grasim was up 0.81%.

In the midcap space, Pipavav Shipyard, Jain Irrigation, GTL, A2Z Maintenance and Gujarat Pipavav gained 4-10% while Sujana Towers, Sintex Industries, Ballarpur Industries, Jubilant Foodworks and Deccan Chronicle lost 6-8%.

In the smallcap space, Bhansali Engg, Entegra, Allied Digital, Gokaldas Export and Hinduja Foundries jumped 5-10% while Nectar Life, Dion Global, Fineotex Chemical, Asian Hotel (W) and Parenteral Drug slipped 6-7%.

Sensex plunges 450 pts; European markets down 2-4%

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.

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%.

Dismal IIP data, falling Re send Sensex down over 350 pts

Indian equities cracked further ground after the announcement of disappointing industrial output data. Depreciating rupee too added to the injury as FIIs scurry to offload exposure to the Indian markets. The 50-share NSE Nifty tanked 111 points to 4,947 and the 30-share BSE Sensex lost 354 points to 16,512.

Index of Industrial Production (IIP) for the month of July came in at 3.3% as against 8.8% in previous month. It was way below the street expectations – CNBC-TV18 poll saw IIP at 6.1%.

The India rupee declined 0.4650 in the spot market to 46.9450 per USD while its MCX-SX September contract already hit the 47 mark.

All sectoral indices were in the red barring FMCG - the BSE IT, Metal, Bank, Capital Goods and Realty indices slipped 2-3%.

Among largecaps, HCL Tech, Tata Motors, Jindal Steel, Hindalco, Infosys, Jaiprakash Associates and Tata Steel were top losers; these stocks tumbled 3-5%.

However, five stocks out of Nifty 50 were on buyers' radar. HUL maintained its top position in the buying list - the stock rose 3%.

Cipla, ONGC, Ambuja Cements and Grasim gained 1% each.

About 698 shares advanced as against 1596 shares declined on BSE.

Nifty below 5000; metals, banks, IT drag

Indian equity benchmarks continued to fall in morning trade on weak global cues. Financial, metal, technology and infrastructure companies' shares were under heavy selling pressure.

The 30-share BSE Sensex was trading at 16,596, down 270 points and the 50-share NSE Nifty dropped 86 points to 4,973, led by fall in 44 stocks.

Laurence Balanco of CLSA feels markets are still in a clear downtrend technically. However, he added, the fall will not be in a straight-line.

Heavyweights TCS, Infosys, SBI, ICICI Bank, L&T, Wipro, Tata Steel, Sterlite, JSPL and Axis Bank plunged 2-4%. Bharti Airtel, Reliance Industries, HDFC Bank and NTPC were down 0.7-1.5%.

Bucking the trend, HUL rallied 3% and ONGC, Cipla, BPCL, Ambuja Cements and Grasim gained 0.5-1%.

Even the broader indices were following the benchmarks; the BSE Midcap and Smallcap indices fell over 1%. About four shares slipped for every share rising.

Midcaps like Pipavav, Arvind, Hindustan National Glass, SKS Microfinance and Infotech Enterprises gained 2.5-5%. However, Sujana Towers, IVRCL, Vijaya Bank, NCC and Jai Corp fell 4-6%.

In the smallcap space, Maha ShreeUmaid, Hindustan Media, Kirloskar Brothers, Numeric Power and AGC Networks were up 6-8% while Lloyds Metals, Parenteral Drug, Money Matters, aurionPro Solutions and Tuni Textile slipped 7-9%.

The Indian rupee (MCX-SX USD/INR September contract) hit the 47 per USD mark today on the MCX. It depreciated by 0.46 to 46.94 per USD in the spot market.

Sensex tanks over 250 points in opening trade

Equity benchmarks slid in the opening trade, reacting to weak global cues post resignation of Juergen Stark from the European Central Bank's executive board. He was opposed to the ECB purchasing bonds from debt-laden countries. The 30-share BSE Sensex tanked 270 points to 16,596 and the 50-share NSE Nifty lost 86 points to 4,973.

Technology stocks took huge beating as these companies get huge revenues from US and European countries. Infosys, Wipro and HCL Tech were down 2-3.5%.

Metal stocks too were under selling pressure; SAIL, Sterlite, Tata Steel, JSPL, Hindalco and Sesa Goa slipped over 2%.

Among other largecaps, Jaiprakash Associates, ICICI Bank, Axis Bank, IDFC, Kotak Mahindra Bank, L&T and Reliance Industries too were on sellers' radar.

ITC, HUL and ONGC were flat with negative bias.

The CNX Midcap fell 98 points to 7,314. About seven shares declined for every share gaining.

GTL gained 3.5% and GTL Infra went up just 0.5%.

Pipavav Shipyard rose over 2%. HPCL gained 0.5% on fall in crude oil prices.

However, Punj Lloyd, IVRCL, HDIL and Adani Power were down 2-3.5%.