After a few days of relative calm, Indian equity benchmarks closed with enormous cuts, with the NSE Nifty closing at below 5000 for the first-time since June 2010. It was a complete free-fall on Dalal Street on Thursday, spooked by fears of stammering recovery in the European and US economies after debt crisis.
The 50-share NSE Nifty touched new 52-week intra-day low of 4,932.15, before closing down 112 points at 4,944. The 30-share BSE Sensex fell 371 points, to end at 16,469.79.
On the global front, European markets like France's CAC, Germany's DAX, Britain's FTSE were down 2-3.5%. The Dow Jones futures tumbled 173 points. Major Asian markets like Hang Seng, Shanghai and Nikkei closed down 1-1.6%.
Experts feel that one should learn to live with the pain as the bleeding is going to last long now. Stephen Roach, non-executive chairman of Morgan Stanley Asia said that Euro zone crisis is far from over and may see further adjustments in global equity markets.
Morgan Stanley has cut global GDP growth forecasts to 3.9% and 3.8% in 2011 and 2012 respectively. Roach further warned that both the US and Euro are hovering close to recession.
For India, Roach said, further rate hikes by RBI remains an overhang.
Likewise, Dipan Mehta, Member BSE & NSE too said the central problem with India was inflation and interest rates. He doesn't see any major change in the stance of the Reserve Bank.
"The market could see even lower levels, which cannot be ruled out," he added.
Meanwhile, Deven Choksey, MD of KR Choksey Shrs & Securities Pvt. Ltd said, "Most worried factor in the mind of investors and foreign investors is that this freedom from corruption, which is going to continue for longer period of time. That means the government's attention would be moving away from taking any policy reform decisions and that would significantly affect the progress of the economy going forward."
"The participation from retail investor is absolutely thin but the fund investors are also remaining cautious, generating cash in the portfolio," Choksey added.
Shares of technology, financial and metal companies saw sharp crack with the respective indices falling 2.5-4%.
Shares of technology, financial and metal companies saw major cracks with the respective indices falling 2.5-4%.
Banking majors ICICI Bank and Axis Bank lost 5% each. Largecaps like TCS, SBI, Infosys, Wipro, HDFC, Sterlite, Tata Motors, PNB and Hindalco were down 3-4.5%.
Reliance Infrastructure and HCL Tech were biggest losers on Nifty, falling over 6%. Reliance Industries, L&T and Bharti Airtel slipped 1-2%.
Beaten down infra major DLF, however, bucked the trend today rising 3% on short covering. Hero Motocorp, Reliance Communications, Jaiprakash Associates and ACC were other gainers.
Meanwhile, mid- and small-caps continued to take huge beating with respective BSE indices falling 2-2.6%.
Market breadth was pathetic; about 6 share slipped in red for every one share in green. Total traded turnover was more than Rs 1.6 lakh crore.
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At 15:12 hours IST : Nifty tests new 52-week intra-day low; BSE IT cracks 4%The NSE Nifty has touched a new 52-week intra-day low of 4,933.50 as global indices battle bloodbath. The earlier low of 4,946.45 was touched on August 9. Nifty was trading at its lowest level since May 2010 led by cut in 47 stocks. India VIX shot up 9.3% to 27.84.
European markets plummeted further on gloomy outlook on global economic recovery; Germany's DAX lost 4%. France's CAC and Britain's FTSE lost 2-3%. The Dow Jones futures shed more than 200 points and Nasdaq futures tumbled 50 points.
Back home, the 30-share BSE Sensex tumbled 388 points to 16,452 and the 50-share NSE Nifty dropped 116 points to 4,941. Market breadth was extremely weak; about six shares dropped for every one share gained. The broader markets were down 2-2.5%.
All sectoral indices were in the red. The BSE IT and Bankex cracked 4% each. Metal Index lost 2.6%. Power, Healthcare, Oil & Gas and Auto indices slipped 1.6-2%.
At 14:48 hours IST : Sensex crash 300 pts as ICICI Bk, Infy, HDFC, SBI collapseCarnage around the globe yanked indian equity benchmarks down. The 30-share BSE Sensex shed 300 points to 16,540 and the 50-share NSE Nifty lost 93 points to 4,963. Despite bottom fishing, blue chip companies like SBI and IDFC collapsed.
Midcaps and Smallcaps are worst hit, falling for the third consecutive session. Both these indices lost nearly 2% each. About five shares declined for every one share gained.
Global markets looked worried about Europe economic recovery. France's CAC and Britain's FTSE fell 2% each. Germany's DAX slipped 3%. The Dow Jones futures dropped 153 points while Nasdaq tanked 37 points.
Technology and banking stocks hit hard with respective indices falling 3-3.5%. TCS, SBI, Infosys, ICICI Bank, Wipro, HDFC, Axis Bank, HCL Tech and PNB plunged 3-5.5%.
Reliance Industries, Bharti, NTPC and HDFC Bank were down 1-2%. In the metal space, Sterlite, JSPL, Hindalco, SAIL and Tata Steel slipped 1.5-3.5%.
However, DLF remained top gainer with rising 4.5% though there was some profit booking at higher levels. Other gainers were ONGC, HUL, Hero MotoCorp and Jaiprakash Associates.
Midcaps like HCL Info, Educomp Solutions, Arvind, United Phosphorous and SpiceJet crashed 6-9%. Total traded turnover was more than Rs 1.25 lakh crore.
At 14 hours IST : Sensex nosedives led by sharp fall in banks, techFall in global markets over ambiguous economic recovery in US and Europe weighed on the Indian equities as well. The 50-share NSE Nifty fell 87 points to 4,969 and the 30-share BSE Sensex lost 274 points to 16,566.
According to Richard Harris of Quam Asset Management, this is because of poor global economic indicators.
