The market has drifted further, as banking, power, metal, capital goods, pharma and FMCG stocks are under pressure. Midcap and small cap stocks are following the same trend. The Nifty is trading below 2400 mark.
The Sensex tumbled 560 points to 8,140 and the Nifty fell 194 points to 2,389, at 10:43 am. Midcap and Small Cap indices have lost 4-5%.
NTPC (-8.4%), SBI (-11%), ONGC (-5.7%), TCS (-8.2%), HDFC Bank (-7.75%), Cairn India (-14%), SAIL (-9.4%), Power Grid Corp (-11%), DLF (-7.6%), L&T (-6.72%), HDFC (-8.16%), Tata Power (-13%) and ICICI Bank (-5.73%) are biggest contributors to this fall.
Market breadth is weak; about 642 shares have advanced while 2345 shares have declined. Nearly 203 shares are unchanged.
However, gainers are Suzlon Energy (5.6%), Unitech (33.55%) and Idea Cellular.
The BSE Bankex plunged 7.2%. Power Index fell 6.5%. Metal, Capital Goods, Healthcare and FMCG indices lost 4-6%. Auto, IT and Oil & Gas indices fell 2-3.4%.
Abhijit Chakraborty of Edelweiss Capital feels that the process of de-leveraging is still on. Many hedge funds — including India-dedicated long-offshore funds — are facing redemption-led pressures and it will not be a surprise if some funds close down before the end of the year, he said.
Markets @ 10 am: Nifty tests 2500 in early trade
The market has opened sharply lower on the back of negative global cues. However, it has immediately managed to trim losses due to buying in technology, selective oil and realty stocks. The 50-share NSE Nifty touched 2500 in early trade. The selling is seen in pharma, banking, power and FMCG stocks.
At 10:00 am, the Sensex fell 83 points to 8,617 and the Nifty lost 28 points to 2,555. CNX Midcap 100 lost 43 points to 3,367.
DLF, HDFC Bank, Sterlite Industries, Ranbaxy Labs, Reliane Infrastructure, Reliance Power, Nalco, TCS, M&M and Wipro are losers.
Unitech went up over 30% and is the top traded counter on the exchanges. It had lost over 50% on Friday.
Asian markets are trading lower. Hang Seng and Taiwan went down 5.5% each. Jakarta fell 6.8%. Kospi lost 1.5% and Shanghai fell 3.6%. Nikkei went down 0.4%.
The crude is trading at 16-month lows. OPEC has cut 1.5 million barrels per day (bpd) to 27.308 million bpd, which will be effective from November 1. OPEC said that the global demand declined for the first time in 15 years and will stagnate in 2009. It is hovering around USD 63-64 to a barrel.
The US markets had closed with substantial losses but the extent of the fall was far less than what was initially feared. At that point, the Dow was down 5.8% and the Nasdaq fell 6.9% to a new five-year low. Dow plunged 312.30 points, or 3.59%, to 8,378.95. The S&P 500 index slipped 31.34 points, or 3.45%, to 876.77, and the Nasdaq composite index lost 51.88 points, or 3.23%, to 1,552.03.
Market cues:
FIIs net sell USD 86.1 million in equity
MFs net sell Rs 80.7 crore in equity
F&O cues:
NSE F&O Open Int down Rs 2,241 cr at Rs 67,566 crore
Futures Open Int down by Rs 3,265 cr, Options Open Int up by Rs 1,024 crore
Nifty Oct Futures shed 20 lakh, Nov Futures add 40 lakh shares in Open Int
Nifty Oct at 24-pt discount, Nov at 38-pt discount
Nifty OI Put-Call ratio at 0.66 Vs 0.71
Nifty Puts OI unchanged, Calls add 43.6 lakh shares in Open Int
Nifty Oct 2800 Put adds 6 lakh shares in Open Int, premium at Rs 264
Nifty Nov 2800 Put adds 5 lakh shares in Open Int, premium at Rs 401
Nifty 3100 Put sheds 5.7 lakh shares in Open Int, premium at Rs 528
Nifty 2900 Put sheds 4 lakh shares in Open Int, premium at Rs 355
Nifty 2800 Call adds 17 lakh shares in Open Int, premium at Rs 38
Nifty 2900 Call adds 7 lakh shares in Open Int, premium at Rs 22
