Nifty ends below 3K for 1st time since July 24, 2006

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty?

Markets @ 2:53 pm : Sensex below 10K; metal, auto, oil, realty stocks plunge

The market has slipped into red again and is trading sharply lower. Selling is seen in metal, oil, auto, realty, banking and pharma stocks. Midcap and small cap stocks are also extremely under pressure.

The Sensex fell 258 points to 9,911 and the Nifty lost 90 points to 2,974, at 2:53 pm. BSE Midcap and Small Cap indices plunged over 2.5% each.

Among the frontliners, Tata Steel, Tata Motors, SAIL, BPCL, Hindalco and Unitech lost 10.5-13%. Sterlite Industries, Ranbaxy Labs and Maruti Suzuki fell 7-8%.

However, TCS, HDFC Bank, Ambuja Cements, BHEL and L&T gained 2-5%.

BSE Metal Index plunged over 9%. Auto fell 5.6%. Oil & Gas, Realty and Healthcare indices plunged 3.5-4.5%. However, IT and Capital Goods indices gained over 1%.

On the global front, European markets are down 1-3%.

At 2:14 pm : Mkts marginally down; tech, cap goods stocks gain

The market is still trading lower with some choppiness, despite showing smart bounce back from day's low after the FM announcement on short positions. Buying is seen in technology and capital goods stocks. However, the selling continues in metal, auto, selective oil, pharma and realty stocks.

Finance Minister P Chidambaram said that there is adequate liquidity and that banks must lend and not park in reverse repo. He said Sebi has asked the FIIs to reverse short positions on borrowed shares. The Finance Minister added that short transactions are likely to be reversed over the next few days.

Chidambaram has said that inflation rate is still high and that he sees inflation easing further. He said that inflation is falling on easing crude prices.

Chidambaram also stated that reports of ICICI Bank increasing home loans rate is not correct.

The Sensex fell 78 points to 10,091 and the Nifty lost 33 points to 3,031, at 2:14 pm. BSE Midcap and Small Cap indices fell around 2% each.

Market breadth is still weak; about 870 shares have advanced while 2089 shares have declined. Nearly 231 shares are unchanged.

Top gainers are Wipro, BHEL, TCS, Infosys, L&T while losers are Hindalco, Sterlite Industries, Ranbaxy Labs and Unitech.

At 12:22 pm : Mkts plummet; Tata Steel, Tata Motors, Idea top losers

The selling in metal, auto, oil, banking, telecom and realty stocks is putting pressure on the benchmark indices. The Nifty is trying to claw back above 3000, but has not succeeded till now. The Sensex is still trading below 10,000 mark. Asian markets have recovered a bit from lows of the day, but these are still under pressure.

The long only funds continue to be seller across the region. The mood is extremely cautious; selling pressure is seen at every higher level. Citi and Deutsche Bank have downgraded Reliance Petroleum (RPL) to sell. The Citi has revised RPL price target lower to Rs 105 from Rs 155. The Reliance Industries is under selling pressure ahead of its results.

The Sensex fell 292 points to 9,877 and the Nifty lost 81 points to 2,983, at 12:22 pm. BSE Midcap and Small Cap indices plunged over 2.5% each.

Among the frontliners, Tata Steel, Hindalco, Tata Motors, HDFC, Bharti Airtel and Idea Cellular slipped 8-11%. However, the gainers are ITC, BHEL, Grasim, Infosys, Wipro and BPCL.

The market breadth continues to be weak; about 842 shares have advanced while 2123 shares have declined. Nearly 225 shares are unchanged.

Ambareesh Baliga of Karvy Stock Broking said that it's the time now to restructure the portfolios. One must exit from junks stocks as they have fallen 80-90% and move on to fresh sectors and stocks which seem to be leaders going ahead.

BSE Metal Index fell over 7%. Auto, Oil & Gas, Realty, Bankex and Healthcare indices lost 2-4.5%. Power and Capital Goods fell over 1%.

Inflation for the week ended October 11 stood at 11.07% versus 11.11% in earlier week.

The crude is hovering at around USD 67.55 to a barrel on the NYMEX. The Indian Crude Basket has fallen to 20-month low of USD 61.47/bbl on Wednesday.

On the global front, European markets have opened lower. CAC, DAX and FTSE fell 0.5-1%.

Asian markets have recovered a bit; down about 2-4%. Only Kospi fell over 7%.

Markets @ 11 pm : Sensex below 10000; RIL, ONGC, Bharti, HDFC, ICICI drag

The market is still trading sharply lower, despite showing some bit of a recovery. Selling continues in metal, realty, telecom, oil, banking and technology stocks. Midcap and small cap stocks are also under pressure. The weak global cues is the major reason for this fall. The NSE Nifty is below 3000 mark and the Sensex is below 10000 level again.

Bharti Airtel, ONGC, HDFC, HDFC Bank, ICICI Bank, DLF, Reliance Industries, Reliance Communication, SAIL, SBI and Tata Steel are the main culprits for pulling the indices at July 2006 lows.

The Sensex fell 261 points to 9,909 and the Nifty slipped 82 points at 2,982, at 11 am. The BSE Midcap and Small Cap indices plunged about 3% each.

Kirby Daley, Senior Strategist, Newedge Group, said that forced selling is being witnessed on account of de-leveraging globally. He added that this will continue till the end of the year.

Daley expects more downside with volatility. He added that any rally in global equities should be seen as an opportunity to sell.

Market breadth is weak; about 828 shares have advanced while 2136 shares have declined. Nearly 226 shares are unchanged.

Tata Steel is among the major losers, fell 9% after CLSA's report. CLSA's report says that Tata Steel could turn loss making for a quarter or two, if European prices fall sharply, reports CNBC-TV18.

CLSA sees highest potential downside in Tata Steel and JSW Steel. It has cut FY10 EPS estimates by 16-27% for all Indian steel companies, according to the report. It has cut Tata Steel price target to Rs 225 and asked to prefer SAIL.

Among the metal stocks, Hindalco, JSW Steel, Sesa Goa, NALCO, Jindal Saw, Hind Zinc, Welspun Gujarat, SAIL and Sterlite Industries plunged 5-10%.

BSE Metal Index fell nearly 7%. Realty, Bankex, Oil & Gas and TECK indices lost 3-4.5%. Auto, Healthcare, IT and Power indices fell over 2%.

However, top gainers are BHEL, ITC and BPCL.

Markets @ 10:00 am : Nifty slips below 3000 for 1st time since July 2006

The market continues to reel under pressure and has opened sharply lower. The sharp decline in global markets is putting pressure on our markets, as credit concerns have become strong in the emerging markets.

The Nifty has slipped below 3000 mark for the first time since July 2006. It went down by 134 points to 2,931, at 10:00 am. The Sensex lost 450 points to 9,719. BSE Midcap and Small Cap indices lost 2.5-3%.

Reliance Industries, Bharti Airtel, TCS, ONGC, ICICI Bank, NTPC, HDFC, Infosys, BHEL, Reliance Communication and SBI are dragging indices lower.

The BSE Metal, TECK, Realty, IT, Oil & Gas, and Bankex fell 4-6%.

The Indian rupee has depreciated and is inching towards 50 mark. It has touched a low of 49.80 to a dollar.

The Asian markets are witnessing huge selling pressure. Nikkei, Hang Seng and Kospi lost 6-9%. Shanghai, Taiwan, Straits Times and Jakarta fell 3-5%.

The crude is at 16 months lows; it has declined 7.5% while gasoline is down by 7%. Crude is trading around USD 67 to a barrel. US fuel demand was down by 8.5% in past four weeks. US weekly inventories increased for fourth week and that was more than market expectations.

Demand for crude declined in the emerging markets. Other reasons were the decline in the stock markets and Euro at 2 years lows.
 
Gold is at one year low, as Euro and  Crude declined. The copper has fallen 17% this week and breached USD 4000 per tonne.

In US markets, the S&P and Nasdaq tumbled to five-year lows on a series of disappointing earnings from major US companies like Boeing, AT&T and Merck. Dow, in fact had its 7th biggest point drop in history. The CBOE VIX jumped 31% just shy of 70.

The triggers for the fall in Wall Street were weak corporate results, gloomy outlook and slump in commodity prices. Improvement in lending rates fails to bring any relief.

The Dow slipped 514.45 points, or 5.69%, to 8,519.21. The S&P 500 declined 58.27 points, or 6.10%, to 896.78. The Nasdaq composite index plunged 80.93 points, or 4.77%, to 1,615.75.

Bank of England Governor said that United Kingdom seems likely in the recession.

Market cues:

FIIs net buy USD 28.2 million in equity Vs provisional number of net sell USD 52 million

MFs net buy Rs 602.2 crore in equity

All global markets, asset classes plunge 3-10%

RBI relaxes ECB norms, up to USD 500 million allowed for rupee/FX expenditure

F&O cues:

Marketwide rollover at 20%, Nifty rollover at 19%

NSE F&O Open Interest down by Rs 1,137 crore at Rs 70,288 crore

Futures Open Interest down by Rs 2,104 crore and Options Open Interest up by Rs 967 crore

Nifty Oct Futures shed 39 lakh shares in Open Interest

Nifty Nov Futures add 31 lakh shares in Open Interest

Nifty Oct at 5-pt discount, Nov at 10-pt premium

Nifty Open Interest PCR at 0.73 Vs 0.78

Nifty Puts add 1.8 lakh shares in Open Interest

Nifty Calls add 34 lakh shares in Open Interest

Nifty 2900 Put adds 11 lakh shares in Open Interest

Nifty 3100 Put sheds 9 lakh shares in Open Interest

Nifty 3000 Call adds 7 lakh shares in Open Interest

Nifty 3300 Call adds 6.6 lakh shares in Open Interest

Stock Futures shed 1.1 cr shares in Open Interest