Sensex absorbs S&P rap but ends in red, Wipro drops 7%

The BSE Sensex and NSE Nifty closed with moderate losses on Wednesday, weighed down by banks, technology and ONGC. However, the recovery in Reliance Industries, ITC and L&T, and upside in auto stocks & Bharti Airtel helped the market trim losses in the last couple of hours of trade.

Overall it remained a volatile session ahead of April F&O expiry tomorrow. The BSE benchmark fell 56 points or 0.33%, to close at 17,151.29 and the NSE benchmark declined 20.65 points or 0.4% to 5,202.

Today in the afternoon trade, the Sensex shed as much as 188 points intraday and the Nifty dropped well below the 5200 level after the foreign rating agency Standard & Poor's revised Indian outlook to negative, citing investment & economic growth slowed, and current account deficit widened.

Agency even expects the Indian government to face headwind in implementing policy measures to improve its fiscal and macroeconomic parameters in the near future, given the current unfavorable political environment. However, the firm affirmed its 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India.

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But, the recovery by the market towards the end of market indicated that it priced in the news. Even the upside in European markets helped Indian equities recover; Germany's DAX was up 1.23% and France's CAC gained 1.85% while Britain's FTSE rose 0.2%. The Dow Jones futures went up 67 points.

Back home, Wipro, country's third largest software services provider by market cap tanked over 7% after the company reported muted guidance for the April-June quarter. Its net profit for the January-March quarter went up 1.7% QoQ to Rs 1,481 crore while revenues fell 0.45% to Rs 9,836 crore. However, the company said its IT services revenues would be around USD 1.52-1.55 billion for April-June quarter, which is just 0.6% higher than Q4FY12.

Top IT services exporter Tata Consultancy Services dropped 2% whereas rival Infosys recovered to end flat.

Country's largest lenders State Bank of India and ICICI Bank were down 1% and 0.77%, respectively. Housing finance company HDFC was up 0.6% whereas HDFC Bank surged 1%.

State-owned oil & gas producer ONGC declined 1.2% while index heavyweight Reliance Industries rose just 0.2%.

Capital goods company Bharat Heavy Electricals lost over 2% whereas Larsen & Toubro gained 0.5%.

Auto stocks witnessed buying interest ahead of April sales numbers next week. Top two-wheeler maker Hero Motocorp jumped 2%. Maruti Suzuki, top car maker and Tata Motors, country's largest commercial vehicle producer were up 1.23% and 0.77%, respectively

Telecom operator Bharti Airtel rallied 2.25% after falling in previous two sessions due to TRAI recommendations.

The broader markets ended 0.5% lower today. Declining shares outnumbered advancing by 990 to 446 on the National Stock Exchange.

At 14:17 hours IST: Sensex trims losses; CAC, DAX up over 1%

The BSE Sensex and NSE Nifty trimmed losses after the foreign rating agency Moody's reaffirmed India's rating of Baa3 and said country's outlook is stable. Rating agency also affirmed stable rating on local and foreign currency bonds. However, a couple of hours ago, another overseas rating agency Standard & Poor's revised India outlook to negative because investment & economic growth have slowed, and current account deficit has widened.

The BSE benchmark was down 91.30 points or 0.53% to 17,115.99, which touched an intraday low of 17,019.24. Meanwhile, the NSE benchmark declined 32.20 points or 0.62% to 5,190.45. The recovery was also helped by European markets; France's CAC and Germany's DAX gained 1% each while Britain's FTSE rose 0.3%.

Country's top lenders State Bank of India and ICICI Bank were down nearly 1.5% whereas HDFC Bank went up 0.5%.

Software services provider Wipro retained its top position in the selling list, falling 7% post company's muted guidance for first quarter of FY13. Tata Consultancy Services was down 1.3% while Infosys was flat.

Engineering and construction company Larsen & Toubro went down 1.3% and state-owned BHEL tanked 2%.

However, Vedanta group company Sterlite Industries shot up 1.5% ahead of fourth quarter numbers today. Top telecom operator Bharti Airtel stayed higher, rising 1.8%.

In the second line shares, HT Media, Jubilant Foodworks, Cox & Kings, Standard Chartered IDR and TVS Motor rallied 2.5-4.5%. However, India Infoline, DB Realty, IRB Infra, ING Vysya Bank and Shoppers Stop lost 5-6%.
 
Power Finance Corporation, a finance provider to power projects, fell 6% amid heavy volumes after the foreign rating agency Standard & Poor's revised outlook for the company to negative.

At 13:24 hours IST: Nifty stays below 5200 as S&P turns negative on India

The BSE Sensex stayed lower by 100 points in afternoon trade, though it trimmed losses due to positive European cues. High fiscal deficit, heavy debt burden and slowdown in investment & economic growth forced the foreign rating agency Standard & Poor's (S&P) to revise Indian outlook to negative.

"India's investment and economic growth have slowed, and its current account deficit has widened, resulting in a weaker medium-term credit outlook," said S&P. The rating agency expects the Indian government to face headwind in implementing policy measures to improve its fiscal and macroeconomic parameters in the near future, given the current unfavorable political environment. However, the firm affirming its 'BBB-' long-term and 'A-3' short-term sovereign credit ratings on India.

The BSE benchmark fell 128.64 points or 0.75% to 17,078.65 and the NSE benchmark dropped 43.25 points to 5,179.40. However, European markets like France's CAC, Germany's DAX and Britain's FTSE gained 0.3-0.8%.

Country's largest lenders State Bank of India and ICICI Bank were down over 1.5% while rival HDFC Bank rose 0.2%.

Wipro, third largest software company in India tanked over 7% after its muted guidance for Q1FY13. Tata Consultancy Services too was down nearly 2%, may be due to unwinding of long positions; yesterday the stock had rallied 13% post results. However, Infosys turned positive.

Capital goods majors Larsen & Toubro and BHEL dropped 1.8% and 2.44%, respectively. Index heavyweights Reliance Industries and ONGC fell 0.3% and 1%, respectively.

However, top telecom operator Bharti Airtel gained 1.55%.

Auto stocks continued to gain ahead of monthly sales numbers next week. Hero Motocorp and Maruti moved up nearly 1%.

Sterlite Industries was up 0.9% ahead of fourth quarter earnings today.

At 11:22 hours IST: Sensex falls 1% as S&P cuts India outlook to negative

The BSE Sensex and NSE Nifty fell 1% each after the foreign rating agency Standard & Poor's (S&P) said it has revised India outlook to negative, citing investment & economic growth slowed and current account deficit (CAD) widened. Rating agency expects Indian government to face headwind in implementing policy measures going forward. However, the agency affirmed BBB- rating for India.

"High fiscal deficit, heavy debt burden remain most significant constraints on India rating," S&P said.

The BSE benchmark was down 163 points or 0.95% to 17,044.25 and the NSE benchmark dropped 54.85 points to 5,167.80 or 1.05%.

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All sectoral indices took beating today. Power, Capital Goods, Realty, Bank and Metal indices were down 1-1.7%.

India's largest private sector lender ICICI Bank tanked 2% while rivals State Bank of India and HDFC Bank fell 0.9% and 0.6%, respectively. Housing finance company HDFC too was down 0.7%.

Engineering and construction company Larsen & Toubro declined over 1.5% and state-owned capital goods company BHEL lost over 2%. NTPC, country's largest power generation company went down 2%.

Index heavyweights and oil & gas producers Reliance Industries and ONGC were down 0.5% each.

Technology stocks continued to fall after muted guidance for Q1FY13 by Wipro. Top IT services exporters TCS and Infosys declined 1.6% and 0.6%, respectively.

However, shares of top telecom operator Bharti Airtel outperformed, rising 1.5%. Hero Motocorp and Maruti Suzuki gained 0.6% each ahead of sales numbers for April.

At 11:25 hours IST: Nifty choppy ahead of expiry tomorrow; auto stocks gain

The BSE Sensex continued to trade volatile ahead of April expiry session on Thursday. Shares of Wipro, Infosys, TCS and ICICI Bank weighed on the market while Bharti, Reliance Industries, L&T and State Bank of India were supporting the market.

The BSE benchmark was down 22.43 points to 17,184.86 and the NSE benchmark fell 6 points to 5,216.85.

The Nifty has been capped in a very narrow band of about 5,160 to 5,320, says Gaurav Doshi, VP-PMS of Morgan Stanley PWM. ''While the Nifty continues to trade in a small band, we think a move above 5,320 will potentially take the Nifty higher to 5,550 or a break below 5,180 will take us down to the 5,050 levels,'' he warns.

Wipro tanked nearly 8% post company's muted guidance for Q1FY13. India's third largest software company by market cap said its net profit for the January-March quarter went up 1.7% QoQ to Rs 1,481 crore while revenues fell 0.45% to Rs 9,836 crore. However, company said its IT services revenues would be around USD 1.52-1.55 billion for April-June quarter, which is just 0.6% higher than Q4FY12. Top IT companies TCS and Infosys were down over 1%.

Private sector lender ICICI Bank was down 0.56% while rivals State Bank of India and HDFC Bank gained 0.2% and 0.9%, respectively.

State-owned BHEL and NTPC dropped 0.75% each.

However, shares of top telecom operator Bharti Airtel topped the buying list, rising over 2% after falling sharply in previous two sessions on TRAI recommendations.

Auto stocks like Bajaj Auto, Hero Motocorp and Maruti Suzuki gained over 1% whereas Tata Motors was up just 0.4%.

Stocks In News

Igarashi Motors was locked at 20% upper circuit today as its Q4 net jumped 450% YoY to Rs 6.6 crore and net sales increased 42.31% to Rs 74 crore.

ING Vysya Bank fell 3%, even after its profit after tax fell 39.56% YoY to Rs 127 crore and net interest income rose 19% to Rs 319 crore.

Petronet LNG slipped 1.6% as it reported lower than expected numbers in Q4. Its net profit came in at Rs 245 crore while CNBC-TV18 poll had expected at Rs 292 crore.

At 10:12 hours IST: Sensex volatile; Bharti up 2.5%, IT plunges post Wipro nos

The BSE Sensex and NSE Nifty stayed flat despite positive Asian cues. Banking & financials, auto, metals and oil & gas stocks could find takers. However, technology stocks (which saved the market yesterday post TCS numbers) were getting hammered post Wipro quarterly numbers.

Country's third largest IT company by market cap said its profit after tax grew by 1.7% QoQ to Rs 1,481 crore, which is in-line with street expectations. However, the company's guidance for the first quarter of FY13 is almost similar to fourth quarter - it expects IT services revenues at USD 1.52-1.55 billion in April-June quarter, a growth of just 0.6% over January-March quarter revenues. The stock fell over 7% while rivals TCS and Infosys were down around 1%.

The BSE benchmark gained 21.40 points at 17,228.69 and the NSE benchmark was up 8 points at 5,230.50.

Index heavyweight and oil & gas producer Reliance Industries rose 0.7%. Top telecom operator Bharti Airtel jumped 2.6% on short covering after sharp fall in previous two sessions due to TRAI recommendations for 2G spectrum auction.

Bajaj Auto, country's second largest two-wheeler maker went up 2.2% whereas Hero Motocorp was up 0.5%. Four-wheeler makers Maruti and Tata Motors were up 0.75-1.4%.

Lenders State Bank of India, ICICI Bank and HDFC Bank moved up just 0.2-0.5%.

The market breadth turned positive - about two shares advanced for every share falling on the BSE. The BSE Midcap and Smallcap indices gained over 0.5%.

In the second line shares, Cox & Kings, Shriram City, GE Shipping, Wockhardt and 3M India shot up 3.5-4% while ING Vysya Bank, Prestige Estate, GRUH Finance, KSK Energy Ventures and CESC slipped 2-4%.

At 9:20 hours IST: Sensex, Nifty flat; Wipro tanks 7% post muted Q1 guidance

The BSE Sensex and NSE Nifty started of trade lower on Wednesday due to fall in technology stocks, but immediately recovered somewhat led by gains in banks, metals, oil & gas and healthcare stocks. Overall the indices were moving around their previous closing values.

The BSE benchmark was up 19.5 points at 17,226.78 and the NSE benchmark rose 5.75 points to 5,228.40.

Technology stocks dropped on the back of some unwinding of long positions after yesterday's sharp rally. Wipro tanked 7% as its fourth quarter numbers were not too great and its guidance for the first quarter of FY13 is muted. It forecasted IT services revenue at USD 1.52-1.55 billion for the April-June quarter, a growth of just 0.6% sequentially.

Country's largest software services providers TCS and Infosys were down 1.4% each.

ITC, GAIL, L&T, DLF and M&M too were down.

However, Sesa Goa jumped 2.4% post fourth quarter numbers.

Sterlite Industries, Cipla, Ranbaxy Labs, Bharti Airtel, BPCL, Dr Reddy's Labs, Reliance Industries, ONGC and Ambuja Cements were supporting the market today.

The CNX Midcap Index was flat and even the market breadth was neutral.

In the second line shares, Petronet LNG was down 2.4% post January-March quarter numbers.

Yes Bank and India Cements were up 1% and 2% ahead of numbers, respectively.

Sugar stocks like Shree Renuka Sugars and Balrampur Chini gained 0.5-1%.

NOCIL shot up 5% and Cox & Kings jumped 3%.

Sasken Communications shot up 6.5% as the company decided to buy back shares at maximum price of Rs 180/share.