Dismal close for mkts; Sensex, Nifty down 5%, RIL dips 12%

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs Nifty BSE | NSE 25/05/12 Are Mutual Funds betting on Nifty?

It was a crucial day for the markets on account of heavy sell-off in heavyweights amid weak global markets. The benchmark indices broke the five-session winning streak and tumbled nearly 5%. Oil, metal, realty, capital goods and telecom were hugely beaten down. Reliance Industries, HDFC, L&T, Bharti Airtel, Reliance Communication, SAIL and Tata Steel were the main culprits for today's fall. Incremental flows were negative at the FII desk and domestic funds appeared to be looking to book profits in today's trade.

The Sensex touched an intraday low of 10,051.52 before closing the day at 10,120.01, down 511.11 points or 4.81% over the previous close. The Nifty closed below the 3,000 mark and plunged 147.15 points or 4.68% to close at 2994.95.

In the derivative segment, the Nifty Futures reversed in discount from premium and ended at a discount of 24 points. Fresh shorts build-up was seen in the Nifty Futures. Reliance Industries added aggressive short build-up. Oil and gas and metal stocks also saw fresh short build-up.

Among the frontliners, Reliance Industries, Tata Steel, Jaiprakash Associates, Reliance Communication, DLF, HDFC, GAIL, SAIL and Unitech lost between 8.5% and 14.5%.

Reliance Industries plummeted 12.76% or Rs 185.75 to end at 1,269.45 on the BSE. FIIs were sellers in the share, especially hedge funds, even as news flew in that the company had shut five polyester units in Patalganga plant and offered VRS to over 500 employees. There was also news that Reliance has also planned a 4-week shutdown of its polypropylene plant. Fall in diesel and gasoline demand in US and Europe will impact its Jamnagar refining.

The stock has touched an intraday low of Rs 1,244.10. It traded with volumes of 4,129,321 shares, which was higher by 98.68% as compared to its 5-day average of 2,078,366 shares.

The BSE Oil & Gas Index plunged 637.40 points or 9.44% to 6,112.11. Essar Oil lost over 11% and GAIL fell 15%. Cairn India and ONGC was down 2.18% and 0.89%.

Metal stocks took huge beating on the bourses, as the numbers of Arcelor-Mittal for third quarter were below expectations. It is going to cut production in US and Europe. It will also reduce supplies to Asia and Africa due to lower steel prices.

Metal Index lost 402.93 points or 6.88% to 5,451.74. SAIL and Tata Steel fell 12.76% and 10.05%, respectively. Jindal Steel and Sterlite Industries plunged 7-8.5%.

Realty stocks also collapsed. HDIL, Unitech, Ansal Properties and DLF slipped 9-15%. Index fell 135.44 points or 5.64% to 2,267.

The BSE Capital Goods Index closed with a loss of 350.93 points or 4.42% at 7,591.64. L&T, ABB, Punj Lloyd and BHEL fell 2.8-6.3%.

Profit booking was seen in telecom stocks. Reliance Communication, Idea Cellular, Bharti Airtel and Tata Communication were down 4-9.5%.

Power stocks like Reliance Power, Reliance Infrastructure, Power Grid Corp, Torrent Power, CESC and NTPC lost 2.7-5.7%.

Auto Index slipped 63.74 points or 2.28% to 2,727.82. Tata Motors, M&M and Bharat Forge fell 4-6.5%.

Banking stocks like SBI, ICICI Bank and HDFC Bank lost 1.5-3.6%. BSE Bankex plunged 107.10 points or 1.87% to 5,633.94.

FMCG Index lost 33.66 points or 1.72% to 1,927.53. United Spirits, United Breweries, HUL and GlaxoSmith Consumer slipped 2.3-8.6%.

IT Index fell 15.60 points or 0.57%, to settle at 2,734.35. HCL Tech lost 6.79%. Infosys and TCS lost 0.5-1%.

Cement stocks like ACC, Grasim Industries and Ambuja Cements tumbled 7-9%.

BSE Midcap Index slipped 51.61 points or 1.5% at 3,394.61 and Small Cap Index fell 70.33 points or 1.74%.

Among the midcap stocks, Kingfisher Airlines, India Infoline, Core Projects, Ansal Properties, Welspun Gujarat and Praj Industries plunged 10.30-16.7%.

In the small cap space, Maharashtra Scooters, Stride Arcolab, Khaitan Electrical and Infomedia fell 12-13.6%.

However, pharma stocks were witnessing buying interest. Healthcare Index jumped 33.84 points or 1.18% to 2,913.22. Orchid Chemical, Sun Pharma, Dishman Pharma and Matrix Lab lost 5-13%.

Sun Pharma (10.46%), Suzlon Energy (5.87%), Wipro (3.27%, PNB (1.95%) and Hero Honda (1.66%) were gainers of the day.

Market breadth was in favour of declines; about 1195 shares have advanced while 1774 shares have declined. Nearly 222 shares remained unchanged.

Volumes improved in today's trade; total traded turnover stood at Rs 56,559.07 crore. This includes Rs 13,031.46 crore from NSE Cash segment, Rs 38,550.94 crore from NSE F&O and the balance Rs 4,976.67 crore from BSE Cash segment.

European markets were trading sharply lower. FTSE, CAC and DAX plunged 2.5-3%, at 3:42 pm. Poor outlook projected by heavyweights led to profit booking and selloff.

The profit of France's largest bank, BNP Paribas has declined by 56% on account of bad loan provisioning in third quarter.

Carlsberg, largest brewer in the Nordic region, has cut annual earnings and sales forecast. It closed its UK plant along with job cuts.

Dow Jones Futures was down 1.5% and Nasdaq Futures fell 1.8%.

There are speculation that new US President, Barack Obama may double low cost loans sanctioned to US auto makers.

Asian markets ended higher barring Jakarta and Taiwan. Shanghai and Hang Seng jumped 3.16% each. Nikkei rose 4.46%. Straits Times and Kospi gained 2.14% and 2.44%, respectively. However, Taiwan and Jakarta lost 0.26-0.29%.

Market Snapshot

Market snaps 5 days rally, ends at the lowest point of the day

6 day rally snaps in Europe as well

Index heavyweight Reliance Industries Tumbles by 12.6%

Sensex closes down 511 points to close at 10120; Nifty closes down 147 points to close at 2994.9

Sensex slips 245 points from day's high, Sensex slips 825 points from days high

CNX mid cap down 0.9%, Bse Small Cap down 2%

Bse Oil & Gas down 10.2%, Gail down 15.4%, Reliance down 12.6%, Essar Oil down 10.9%, RPL down 9.8%

Bse Metals down 7.7 %, Sail down 12.4%, Tata Steel down 10%, Sterlite Ind down 7.5%

Bse Cap Goods down 4.6%, L&T down 6.2%, Abb down 6%, Punj Lloyd down 4.5%

Index Gainers: Sun Pharma up 10.4%

Index Losers: Unitech down 11.6%, Rcom down 9.8%, Dlf down 8.3%, Ambuja down 9%, M&M down 6.1

Mid Cap Gainers: Orchid Chem up 13.2%, Patel eng up 11.7%, United Phos up 10.9%, HCC up 9.7%

Mid Cap Loser: Kindfisher Airlines down 16.1%, HDIl down 15%, India Infoline down 13.6%, Core Project down 12.8%

NSE Adv: Decline at 1:2

Total market turnover at Rs 56559.07 crore versus Rs 49570.10 crore

Nse F&O Turnover at Rs 38550.94 crore versus Rs 33758.52 crore

F&O Snapshot

Nifty Futures reverse in discount from premium; ends at a discount of 24 points

Fresh Short build up in Nifty Futures

Reliance Ind adds aggressive Short build up , adds 18% in OI with hugh -ve coc

Oil & Gas and Metal stocks see fresh short build up

Banking & Cap goods stocks continue to see log build up

Short Covering seen in Mid Cap stocks like Pantaloons, Uni Phos , GVK Power

Call Writing: Nifty 3200 call adds 6.9 lakh shares

Options Activity:

Nifty 3200 call adds 6.9 lakh shares

Nifty 3000 put adds 2.5 lakh shares

Nifty 2800 put adds 2.4 lakh shares

Fresh Short:

Oil & Gas: Reliance Ind , Gail , Cairn

Metals: Tata Steel, Sail

Misc: Bharti , Icici Bank , HDFC , Axis Bank

US Presidential Election Results: Barack Obama Wins

Voters send Illinois senator to White House as first black president

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