The market closed at 28-month low on Tuesday after it broke the important technical level of 4550. The fall in index heavyweights in the last hour of trade -- and even considering fall over 1000 points on Sensex since last week -- had investors running for cover.
Moreover, today's fall was despite not-so-bad global markets.
As far as levels are concerned, the Sensex fell 204.26 points, to close at 15,175.08. The Nifty touched an intra-day low of 4,531.15, before ending down 68.90 points at 4,544.20. Its August 21, 2009 closing level was 4,528.80.
It was clear that bears have taken over the Street and have set up camp for good. Experts are turning bearish on India as they feel that macro-economic and government policies can only trigger market now.
Gautam Shah, CMT, VP-Financial Services, JM Financial believes that the Nifty is likely to tank to 4,350-4,400 level as there is further weakness in the market. In an interview to CNBC-TV18, he said that pull backs are likely to fizzle out around 4800-4900 on Nifty. He is expecting the Sensex may find support at 14500.
All sectoral indices slipped barring defensive sector FMCG. Capital goods and metals stocks got slaughtered quite badly; respective indices fell 3.5% each. The BSE Realty, Power, Auto and Bank indices were down 1.7-2.7%.
Shares of capital goods major L&T fell below the Rs 1,000 mark for the first time since May 2009; closed down 5.14% at Rs 979.10; it crashed 25% in last 15 days. BHEL showed some recovery in the late trade, which lost 1.2%.
Index heavyweights Reliance Industries and SBI plunged 3% each. Shares of Jaiprakash Associates topped the selling list, falling over 7%.
Shares of telecom major Bharti Airtel plummeted 4%. Among others, Tata Steel, Hero Motocorp, JSPL, Tata Power, NTPC and Hindalco were down 3.5-5%. Tata Motors slipped nearly 3%.
However, HDFC Bank and ONGC outperformed others among largecaps, rising 2% each. ITC and HDFC gained 0.7-1%.
Declining shares outnumbered advancing by the ratio of 2:1 on the BSE. The BSE Midcap Index was down 1.9% and Smallcap down 1.5%.
On the global front, European markets were mixed at the time of closing of Indian equities. Asian markets too ended mixed.
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At 15:13 hours IST : Nifty hits fresh 52-week low; L&T falls 5% to below Rs 1KThe market could not hold the recovery, due to consistent fall in index heavyweights L&T, Bharti, Reliance Industries, SBI and BHEL. The Nifty touched a fresh 52-week low of 4,535.90; it was down 66.4 points at 4,546.70. Meanwhile, the Sensex tanked 200 points at 15,179.72.
Reliance Industries, which turned flat few minutes back, slipped quite badly again. It tumbled 3%. Shares of country's largest lender SBI too crashed 3%.
The fall of 4-6% in shares of L&T, Bharti Airtel, NTPC, Tata Steel, Hero Motocorp, Hindalco, JSPL and Tata Power showed that some serious investors offloaded some exposure to these stocks. L&T was trading at Rs 981.05 - below Rs 1000 mark for the first time since May 2009.
Jaiprakash Associates was the biggest loser, falling 7% now.
BHEL, Bajaj Auto, Sterlite and Wipro were down 2%. ICICI Bank and TCS dropped over 0.7%.
However, ITC, HDFC Bank, ONGC and HDFC too came off their day's high, which gained 1-2%.
At 14:13 hours IST : Sensex trims losses; HDFC Bank, ONGC up over 2%The market remained in a negative terrain, though it trimmed losses. It was weighed down by heavyweights Reliance, L&T and Bharti. SBI, BHEL and NTPC were other leading draggers. However, huge buying in HDFC Bank, ONGC, ITC and HDFC was trying to limit the downside. The Sensex was down 88 points at 15,291.74 and the Nifty fell 36 points to 4,577.05.
Shares of Jaiprakash Associates and Hero Motocorp extended losses, falling over 6% and 5%, respectively.
Tata Steel, JSPL, Tata Power and Hindalco were down 3.5-4%. Major frontliners like Reliance Industries, L&T, Bharti, SBI and BHEL tanked 2-3%.
Shares of Wipro, NTPC, Tata Motors and M&M too were down 2-3%.
However, ONGC topped buying list, rising 2.7% after reports in The Financial Express that petrol excise may be cut. Earlier Oil Ministry has proposed a cut in excise duty on petrol by Rs 2 from the current Rs 14.35/litre.
HDFC Bank, ITC and HDFC among others were up 1-2%. HUL was marginally higher.
The market breadth was negative; about two shares declined for every share rising on the BSE.
At 13 hours IST : Sensex extends losses; JP Associates tanks over 5%The market countinued to slide in the afternoon trade, the Sensex shed over 100 points amid a volatile trade. Metals, capital goods, auto, major banks and technology stocks were under pressure; even Reliance Industries was following the same trend.
The Sensex was down 125 points to 15,254.46 and the Nifty fell 43 points to 4,570.20.
Experts are turning more and more bearish on India as they feel that macro-economic and government policies can only trigger market now.
Gautam Shah, CMT, VP-Financial Services, JM Financial believes that the Nifty is likely to tank to 4,350-4,400 level as there is further weakness in the market. In an interview to CNBC-TV18, he said that pull backs are likely to fizzle out around 4800-4900 on Nifty.
Capital goods majors L&T and BHEL were down 3% and 2%, respectively. Heavyweights Reliance Industries, SBI and Bharti Airtel lost 2% while ICICI Bank was down 0.8%.
Biggest loser since the morning trade was Jaiprakash Associates, falling 5%. JSPL, Hero Motocorp tanked 4% each.
Among others, Tata Motors, Tata Steel, NTPC, Hindalco, Wipro, Coal India and Sterlite fell 2-3%.
However, HDFC Bank and ONGC gained 2% each. ITC and HDFC rose 0.6-0.9%.
The broader indices like BSE Midcap and Smallcap fell over 1%.
In the second line shares, Wockhardt, Jain Irrigation, S Mobility, UCO Bank and Responsive Industries were down 7-9% while Network 18 rallied 9.4%. Orchid Chemical, Honeywell Automation, Tata Comm and Bata India were up 3-5%.
At 11:28 hours IST : Sensex choppy; HDFC Bank, ONGC, Infosys gainThe Sensex remained marginally lower amid volatility while the Nifty was trying very hard to hold the 4600 level. Index heavyweights L&T, Reliance, SBI, and BHEL weighed down the market, which fell 1-2.8%. However, the buying in HDFC Bank, ITC, HDFC and ONGC capped the downside; even technology stocks were quite supportive. The Sensex was down 47.35 points to 15,331.99 and the Nifty fell 16.6 points to 4,596.50.
Abhijit Chakraborty of Fortune Financial feels that the market has little possibility to rebound but it is best not to play it now.
Meanwhile, index heavyweight L&T dropped below the Rs 1000 mark for the first time since May 15, 2009 during the morning trade today. It was down 2.85% to Rs 1002.65. Overall slowdown in economy and low order book were causes of concerns for the stock. In last 15 days, the stock tanked 25%, Sensex crashed 8.5% and the Capital Goods Index lost 19%.
Other major largecaps like Reliance, SBI, BHEL and Bharti Airtel were down 1-2%. Tata Motors, Tata Steel, Hero Motocorp and JSPL crashed 2.5-3%.
Jaiprakash Associates remained biggest loser, slipping 5%.
However, HDFC Bank topped the buying list, rising 2.4%. ITC, HDFC and ONGC gained 1-1.6%.
Infosys, TCS, HUL, Maruti, Sun Pharma and Wipro among others were marginally higher.
At 10:09 hours IST : Nifty struggles at 4600; RIL, L&T, SBI under pressureThe Nifty was struggling to get back above the 4600 mark amid choppy trade, weighed down by major heavyweights like Reliance, L&T, SBI, Bharti and ICICI Bank. The Sensex was down 72 points to 15,307.39 and the Nifty fell 25.25 points to 4,587.
Ian Scott of Nomura feels India is underperforming partly due to growth slowdown. Investors are pulling back from emerging markets and India is still not a top pick within EMs, he said.
Index heavyweights Reliance Industries, L&T, Bharti Airtel and SBI were down 1-2%. Shares of country's largest commercial vehicle maker Tata Motors slipped 2% on profit booking after a rally of 4.4% seen yesterday.
Jaiprakash Associates topped the selling list, falling nearly 5%. Among others, ICICI Bank, TCS, NTPC, Sterlite and DLF fell 0.3-1%.
However, the upmove in ITC and ONGC has limited the downside; both stocks gained over 1.5%.
Shares of HUL, Sun Pharma, BHEL and Wipro were up over 0.6%. HDFC and HDFC Bank were marginally higher.
The market breadth was in favour of declines; about 683 shares gained while 1103 shares dropped.
At 9:20 hours IST : Sensex opens flat; FMCG, banks gainThe Sensex rebounded with marginal gains in the opening trade on Tuesday amid volatility, after seeing sharp fall yesterday that started last week. Asian markets too bounced back with moderate gains. The sentiment also improved in the US markets yesterday after Federal Reserve Bank of Richmond president Jeffrey Lacker predicted the US economy will grow 2% to 2.5% next year.
The market is in consolidation mood after fall of over 800 points on Sensex since last week. The Sensex gained 24 points at 15,403.31 and the Nifty rose just 6.5 points to 4,619.55.
Shares of Sesa Goa, SAIL, Sterlite Industries, Hindalco, BHEL, ONGC, ICICI Bank, SBI, DLF, ITC, HUL HDFC, M&M, Reliance Communications, HUL, NTPC and Coal India were up 0.4-1%.
However, L&T, Siemens, Axis Bank, Tata Motors, Bharti Airtel, HCL Tech, TCS, Infosys and Wipro were lower in the early trade.
Among the second line shares, Mahindra Satyam up 4.5% on merger (with Tech Mahindra) buzz.
Orchid Chemical shot up 7% after sharp fall seen yesterday.
Network 18 shot up 17% on reports in Wall Street Journal that Mukesh Ambani is in talks to buy the company.
However, UCO Bank crashed 4% on reports that the bank may reschedule loans of power companies in Haryana.
Sun TV, NCC, Pantaloon Retail, Apollo Tyres, Apollo Hospital and Petronet LNG gained 1-3%.
However, Jet Airways, Dena Bank, HCC, Allahabad Bank, Jain Irrigation and Canara Bank were down 0.5-2%.
