Jun 04, 2012, 10.01 AM IST
The Indian market extends losses on weak Asian stocks to hit their lowest levels in nearly five months. The benchmark index Sensex lost another 150 points in the opening bell. Asian shares tumbled on Monday, pushing the broader Tokyo market to a 28-year low, as investors extended a rout of global stocks.
Cairn India, Reliance Infra, Jindal Steel, Tata Power and SBI were top losers in the Nifty. Capital goods, metal, banks, telecom and IT stocks were on seller's radar today.
Metal stocks were down on worries of a weakening domestic and global demand for metals after disappointing manufacturing data from all parts of the world.
State-run oil marketing companies cracked in trade today after they cut retail petrol prices by Rs 2.02 a litre effective from Sunday. The price cut was done following heated protests from the ruling Congress party's key allies, opposition parties and consumers.
ACC was down 1% after the company reported its cement despatches numbers on Friday evening. The sales were marginally higher by 3.01% to 2.05 million tonnes in May 2012.
Cairn India continues to slide further as crude futures fell for the fifth straight day. The oil exploration major has lost close to 10% in last three trading sessions.
No respite for Rupee, Crude
The rupee was marginally weaker on Monday, with the outlook negative as global sentiment, fuelled by weak US non-farm payrolls and Chinese non-manufacturing PMI, continued to hurt risk assets. The partially convertible rupee opens at 55.58/60 per dollar, weaker than its previous close of 55.54/55 on Friday.
The euro was at $1.2410 on Monday, recovering from Friday's low of $1.2288.
US crude futures fell another 1% to $82.35 a barrel today, after hitting its lowest level in almost eight months on Friday. Brent eased 0.6% to $97.83.
Gold edged lower after posting its biggest rally in more than three years in the previous session. Bullion fell more than 6% in May, under the weight of a dollar.
The 200-day SMA (Simple Moving Average) and 20-day EMA (Exponential Moving Average) have now shifted to 16800 / 5070 and 16360 / 4960, respectively.
The '20-Week EMA' is placed at 16840 / 5100 level. Indices have taken a support near 15860 / 4766 level, which is the 78.6% Fibonacci Retracement level of the rise from 15135 / 4531 (Low on December 23, 2011) to 18524 / 5630 (High on February 22, 2012).
Going forward, last week’s high would act as strong resistance level.
Wall Street crashed to its worst day for the year, with the Dow losing over 2% and the S&P falling below its 200 day moving average. European markets also saw red on Friday, and closed at six-month lows as lingering fears over Greece and Spain, plus concern that the global economy is stagnating, weighed on investors' minds.
Disappointing economic data was the key trigger for Friday's fall. The US added just 69,000 new jobs in May, which was way below the expectations of 150,000. Meanwhile, the unemployment rate grew to 8.2%, fueling speculation that the Fed might be prompted to intervene with another round of quantitative easing.
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