Published on Thu, Oct 16, 2008 at 09:43 , Updated at Thu, Oct 16, 2008 at 13:54
Source : moneycontrol.com
Markets have shown smart recovery after free fall and are trading off day's low following recovery in European markets. All BSE indices are off day's low as well. The Sensex and Nifty have recovered over 450 points and 100 points from their day's low.
At 1:34 pm, the Sensex tumbled 342 points to 10,479 and the Nifty fell 93 points to 3,245. BSE Midcap and Small cap indices lost 3-4%.
Buying is seen in Bharti Airtel, DLF, Hindustan Unilever, HDFC, ITC, ICICI Bank, Ranbaxy Labs, Reliance Communication, SBI and Tata Steel.
However, selling continues in Wipro, TCS, Tata Motors, Tata Power, Reliance Industries, Satyam, NTPC, ONGC, L&T, M&M, Infosys, Jaiprakash Associates, HDFC Bank, Hindalco, Grasim, BHEL and ACC.
Market breadth have recoverd a bit but still severely weak; about 663 shares have advanced while 2318 shares have declined. Nearly 206 shares are unchanged.
BSE Oil & Gas, Capital Goods, IT and Auto indices tumbled 5-6%. Power, Metal and Healthcare fell 2-3.5%.
European markets have also shown sharp recovery; FTSE, CAC and DAX are down over 2%.
Markets @ 12:38 pm : Markets mayhem; Cap Goods, Oil, IT, Power stks plunge
Severe sell off in technology, oil, capital goods, telecom, realty, power, metal and auto stocks is putting pressure on markets. The Sensex is drifting towards 10,000 mark, but has not broken that level yet. The Nifty has tested 3100 mark and touched a low of 3099.90.
Global markets are in mayhem. In Asia, Nikkei, Hang Seng, Kospi and Straits Times fell 8-11.5%. Shanghai, Taiwan and Jakarta lost 3-5%. European markets are down over 5% each.
The Sensex plummeted 735 points to 10,073 and the Nifty fell 216 points to 3,122, at 12:38 pm. BSE Midcap and Small cap indices lost 5.5%.
Breadth is extremely weak; about 499 shares have advanced while 2493 shares have declined. Nearly 194 shares are unchanged.
Among the frontliners, Tata Motors, TCS, Hindalco, Reliance Industries, Wipro, Suzlon Energy, Zee Entertainment and Cairn India fell 10.5-13.5%.
BSE Capital Goods, IT and Oil & Gas indices plunged over 8%. Realty, TECK, Power, Metal and Auto indices lost 6-7%. Bankex, FMCG and Healthcare fell 2-4%.
Shubhda Rao, Chief Economist of Yes Bank, said the fall in inflation makes a case for a further 50-basis point rate cut in cash reserve ratio (CRR) and chances for a repo cut increase too. Inflation was down at 11.44%, down from 11.80%. This is the steepest decline week-on-week, Rao said, adding that we may see single-digit inflation numbers by January as opposed to earlier expectations of March.
Markets are witnessing huge selling pressure, as they are taking cues from negative global markets. Asian markets plummeted severely, down about 4-11%. Heavy sell off is seen in technology, realty, oil, telecom, capital goods, metal, power and auto stocks.
Reliance Industries (-13%), NTPC (-7%), TCS (-11.5%), Infosys (-9.5%), Bharti Airtel (-6.5%), Larsen & Toubro (-7.7%), HDFC Bank (-6.5%), ICICI Bank (-6.5%), HDFC (4%), BHEL (-6.4%) and ONGC(-4.5%) are dragging markets lower.
At 11:14 am, the Sensex fell 702 points to 10,102 and the Nifty lost 216 points to 3,122. BSE Midcap and Small Cap indices tumbled nearly 5% each. Only one stock is trading in green on the BSE Sensex and Nifty.
Madhusudan Kela, Head-Equity Investments at Reliance Mutual Fund said markets are seeing forced liquidation across the world and expects the markets to remain undervalued for a period of 6-9 months. He sees no redemption pressure on equity funds, in line with normal trend and is waiting for the markets to stabilise before putting in more money.
Breadth is negative; about 527 shares have advanced while 2459 shares have declined. Nearly 200 shares are unchanged.
BSE IT Index fell 9%, as TCS tumbled 11.5%. Wipro, Infosys, HCL Tech, Satyam, Patni Computer and Tech Mahindra fell 6-10%.
Oil & Gas index plunged 9%. Essar Oil, Reliance Industries, Aban Offshore and Cairn India lost 10-12.5%. Reliance Petroleum fell 9% and ONGC lost 4.50%.
Realty Index lost 9%. Indiabulls Real, Phoenix Mills, Anant Raj Ind, Peninsula Land and HDIL fell 11-19%. Akruti City, Unitech, Parsvnath, Puravankara Projects, Ansal Properties, Omaxe and DLF crashed 5-9%.
Telecom stocks like Tata Communication, Bharti Airtel, Idea Cellular and Reliance Communication fell 6-9%.
Power Index fell 7.5%. Tata Power, Reliance Power, NTPC, Reliance Infra, Torrent Power, GMR Infra, Power Grid Corp and CESC fell 5-9%.
Capital Goods Index lost 7.5%. Suzlon Energy, Jyoti Structures, Siemens, Areva T&D, Crompton Greaves, Punj Lloyd, Elecon Engg, Alstom Projects, ABB, Thermax, BHEL and Larsen fell 6.5-11%.
Metal Index plunged 7.5%. Welspun Gujarat, Hindalco, NALCO, JSW Steel, Sterlite Inds and Hind Zinc tumbled 9-14%. Jindal Steel, Sesa Goa, SAIL and Tata Steel fell 5-8%.
Auto Index fell 6%. Amtek Auto, Tata Motors, M&M, Escorts, Cummins, MRF, Bharat Forge and Bosch lost 6-11%. Ashok Leyland, Hero Honda and Maruti Suzuki lost 3.5-5%.
Bankex slipped 5%. Karnataka Bank, ICICI Bank, HDFC Bank, Axis Bank and Yes Bank slipped 6-7%.
Healthcare Index fell 4%. Opto Circuits, Piramal Health, Biocon, Sun Pharma Advanced, Sun Pharma and Fortis Health lost 7-10%.
Among the Asian markets, Nikkei tumbled 10.6%. Hang Seng, Straits Times and Kospi fell 6.5-9.5%. Shanghai, Taiwan Weighted and Jakarta lost 3-5%.
Dow Jones and Nasdaq Futures are down over 1.6% each.
Markets @ 9:56 am : Mkts crash on weak global cues; Nifty struggles @ 3200
Benchmark indices have shattered in early trade following steep fall in US and Asian markets, as poor economic data fueled recession worries over the United States.The Nifty and Sensex have hit new-2008 lows today.
Vibhav Kapoor of IL&FS expects the Nifty to trade in a broad range of 3,000-3,800 over the next few months. “We could have occasional days, if there is some global panic or some bad news coming from somewhere, where the Nifty might touch 2,800 or 2,900. Those would only be intra-day or for a day or two and the sustainable range at which the markets are going to trade in the next several months would be 3,000-3,800."
At 9:58 am, the Sensex fell 613 points to 10,195 and the Nifty lost 178 points to 3,159. CNX Midcap tumbled 4.6% to 3,818.
L&T, Hindalco, Suzlon Energy, Reliance Industries, Sterlite Inds, HCL Tech, Reliance Infrastructure, Wipro, TCS, Infosys, Unitech, Reliance Communication, ONGC and ICICI Bank have smashed out.
BSE Realty, Metal, Capital Goods, IT, TECK, Oil & Gas, Power indices are down 6-7%. Bankex, FMCG, Healthcare and Auto indices fell 4-5%.
This free fall is in despite of RBI's move of 100 bps Cash Reserve Ratio (CRR) cut to 6.5% in late evening yesterday to increase liquidity in banking system. Due to which, Call Rate declined to 6.5-7% from 9.75-10.25% on Wednesday. RBI had already cut CRR by 150 bps last week.
Asian markets also shattered in line with US markets. Nikkei fell 9%. Hang Seng, Straits Times and Kospi dropped 6.5-8.5%. Shanghai fell 3.7%, Taiwan -3.3% and Jakarta -4.09%.
Crude has fallen 5% on economic worries and OPEC update. It is trading around USD 73 to a barrel. OPEC has cut demand forecasts after IEA, EIA. OPEC has revised 2009 demand for OPEC crude by 190000 bpd to 31.14bpd. OPEC said that the forecast based on world economic growth is slowing to 3.8% this year and 3.3% in 2009.
Base metals also crashed. Copper has declined 5.5%. Nickel, Zinc and Lead fell 6-7.5%. Commodity Freight rates are at 5-year lows. Baltic Dry index fell 11%.
US markets plunged the most since the crash of 1987, as disappointing retail sales data and credit concerns renewed economic fears. Specifically, the S&P 500 plunged 9%, settling near session lows & the Dow closed below the 9000 mark.
Consumers continue to curtail spending in the face of economic headwinds. Retail sales in September tumbled 1.2% month-over-month, the third consecutive monthly drop and largest decline in three years. The Dow tumbled 733.08 points, or 7.87%, at 8,577.91. The S&P 500 index lost 90.17 points, or 9.03%, to 907.84, and the Nasdaq composite index declined 150.68 points, or 8.47%, to 1,628.33.
Market cues:
RBI cuts Cash Reserve Ratio (CRR) by another 100 bps to 6.5% with retrospective effect from Oct 11
SEBI seeks FII data on sale of equities on borrowed stocks twice a week
FIIs net sell USD 46.9 milion in equity on October 14 versus provisional net buy figure of $187 million
MFs net sell Rs 260.8 crore in equity on October 14: SEBI
NSE F&O Open Interest down by Rs 1,347 crore at Rs 69,145 crore
F&O cues:
Futures Open Interest down by Rs 1,218 crore and Options Open Interest down by Rs 129 crore
Nifty Futures Open Int unchanged, at 5-pt premium
Nifty Open Interest Put Call Ratio (PCR) at 0.74 versus 0.76
Nifty Puts shed 7.5 lakh shares in Open Interest
Nifty Calls add 5 lakh shares in Open Interest
Nifty 3100 Put adds 5.8 lakh shares in Open Interest
Nifty 3200 Put adds 3.9 lakh shares in Open Interest
Nifty 3600 Put sheds 5.8 lakh shares in Open Interest
Nifty 3500 Put sheds 5.2 lakh shares in Open Interest
Nifty 3400 Call adds 5 lakh shares in Open Interest
