The BSE Sensex and NSE Nifty closed lower for fifth consecutive session on Monday due to weakening rupee, waning of rate cut hopes after higher than expected inflation for April and Europe turmoil.
The BSE benchmark fell as much as 168 points to hit an intraday low of 16,124.82, before closing down 77.14 points or 0.47% at 16,215.84. The NSE benchmark managed to settle above the 4900 level after struggling a lot the same level; index dropped 21.10 points to 4,907.80.
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According to Sudarshan Sukhani of s2analytics.com, trend of the market is down. He advised traders to maintain complete position on the short side.
Nifty futures on the National Stock Exchange stopped trading for around half an hour around 14 hours IST while trading in the cash markets continued as normal.
Higher-than-expected spike in inflation to 7.23% (from 6.89% MoM due to manufacturing and food inflation) for April faded hopes of further rate cut by the Reserve Bank of India.
Portfolio manager PN Vijay says this will further fuel the bearish trend for equities. “The mood of the market is now governed by trading activity, so we will follow the global pattern with a bit of blips depending on domestic factors,” he said.
European markets fell quite sharply ahead of Greek's politicians' last attempt to form government today. If they fail to form a coalition government, President will announce new elections. Experts feel that hope of government formation looks low now. Losing of elections by Chancellor Angela Merkel in Germany’s most populous state ‘North Rhine-Westphalia’ on Sunday (indicating a tough fight for winning forthcoming elections) also added fuel to the fire. France's CAC, Germany's DAX and Britain's FTSE were down around 2%.
The Indian rupee was off day's low at 53.79 to the dollar, down 16 paise. It was near to the 53.90 a dollar during the day.
Private sector lenders ICICI Bank and HDFC Bank were down 2% and 1.7%, respectively. Axis Bank and State Bank of India lost 0.7% each.
Shares of Tata Motors, country's largest commercial vehicle maker tanked 2.4% while Maruti and M&M gained 0.5-0.8%. Bajaj Auto, two-wheeler producer rallied 1.8%.
Index heavyweight and oil & gas producer Reliance Industries tumbled 2.3% while its rival ONGC was down 1.3%.
Realty major DLF went down 2.6%. India's largest software services exporter TCS was down 0.3% whereas rival Infosys jumped over 1%.
Engineering and construction company Larsen & Toubro shot up over 5% intraday after the company forecasted 15-20% growth in order inflows and topline in FY13. L&T reported a better than expected growth of 13.9% year-on-year in its profit after tax of Rs 1,920 crore for the fourth quarter of FY12 while its topline came in lower than expectations at Rs 18,461 crore, a growth of 21% YoY. Analysts on average had expected net profit at Rs 1,691 crore and total income at Rs 18,843 crore
Results reactions: IVRCL and Orchid Chemical crashed 12-13%. Adani Power and HeidelbergCement India were down 3.5-4%.
The BSE Midcap and Smallcap indices tanked 1% each. About two shares declined for every share rising on the National Stock Exchange.
The BSE Sensex and NSE Nifty fell over 0.5% due to further sell-off in European markets. The fall in banks, oil & gas and metal stocks weighed on the market. The Indian rupee too depreciated further, losing 22 paise to 53.85 a dollar.
The BSE Sensex shed more than 100 points in afternoon trade due to higher than expected inflation for April and fall in European markets. France's CAC, Germany's DAX and Britain's FTSE opened 1.3-1.7% lower as Greek president failed to convince major parties to form a government last week.
Sensex erases initial gains on inflation concerns
The BSE Sensex and NSE Nifty erased all early gains after spike in inflation for April. Banks turned lower on less hopes of further rate cut as inflation jumped to 7.23% in April as against 6.89% in previous month. Analysts on average had expected it at 6.7%.
SENSEX-NIFTY-INFLATION-ICICI-BAJAJ-AUTO:Sensex rises ahead of April inflation data
The BSE Sensex and NSE Nifty stayed higher due to consistent buying interest in metals, banks and auto stocks. However, the fall in ITC, ONGC, TCS and BHEL has limited the upside. Asian markets too trade higher after recovery from day's low.
The BSE Sensex and NSE Nifty started of trade moderately higher amid volatility on Monday. Asian markets rebounded from day's low; Shanghai, Nikkei and Hang Seng (which were 0.2%) gained 0.2% each.
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