Sensex plummets over 3%; banks, realty, metals crash

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?

Nifty slips over 2%, breaches 4900 on Dubai's debt concerns

The Nifty drifted sharply lower in the opening trade and continued yesterday's sharp sell-off on the back of Dubai's debt concerns. Dubai accumulated USD 80 billion of debt by expanding in banking, real estate and transportation. Shares of Indian companies, which have exposure to Dubai, were seeing huge selling pressure.

At 9:56 am, the Nifty lost 110 points to 4,895 and the Sensex fell 335 points to 16,512. About 54 shares advanced while 713 shares declined on the NSE. The CNX Midcap declined 162 points to 6,979.   

Among the frontliners, DLF, Unitech, Suzlon, ABB, L&T, Jaiprakash Associates, Tata Steel, SBI, ICICI Bank, Sterlite, JSPL, Hindalco, Reliance Infrastructure and, Reliance Industries were biggest losers in early trade.

Siemens tumbled 7% post disappointing set of results.

However, Suzlon Energy was up 1%, as its arm REpower won order for up to 954 MW

Midcap Space:

Punj Lloyd fell 4%. Nagarjuna Construction was down 7%

HDIL, Orbit Corp, IVR Prime, Parsvnath, Dena Bank and UCO Bank slipped 5-6%.

Global cues:

Asian markets were trading sharply lower. Hang Seng was down 3.15%, Kospi down 2.8%, Taiwan down 2%, Nikkei down 1.8% and Shanghai down 1%. SGX Nifty was down 1.2%.

Global markets are in panic mode on concerns about Dubai's debt rescheduling. The Government of Dubai confirmed that DP World and its debt are not included in the restructuring process for Dubai World announced earlier today.

US markets closed yesterday on account of Thanksgiving holiday and will close early today.

Dubai panic

-Dubai World with USD 60 billion liabilities will seek a six-month "standstill" on its debts with all lenders.

-Dubai accumulated USD 80 billion of debt by expanding in banking, real estate and transportation.

-Dubai's sovereign CDS surged 111bps to 429bps.

-S&P had placed the ratings of four Dubai-based banks on negative outlook due to their exposure to Dubai World.

Commodities:

Gold declined 0.3% to $1188 an ounce.

Crude was down 2.5% at $76/barrel, which was down 0.6% this week.

Copper fell 1.5%. Nickel and Zinc were down 2%.

Aluminium was down 1%.

Baltic Dry Index was down 2.5%.

Market cues:

-FIIs net buy USD 14.1 million in equity on November 25
-MFs net buy Rs 158.2 crore on November 25
-Highest ever F&O turnover: Rs 1.37 lakh crore
-Highest ever total turnover: Rs 1.59 lakh crore
-FIIs net sell Rs 70 cr in cash mkts on November 26 (prov)
-DIIs net buy Rs 150.5 cr in cash mkts on November 26 (prov)
-FIIs net buy Rs 210 cr in F&O on November 26

F&O cues:

-Nifty down 2%
-Nifty Dec futures trade at 13-pt discount versus 12-pt premium
-Nifty IVs at 23-27%
-Nifty Dec Open Interest PCR at 1.26 vs 1.28 at the start of Nov Series
-Nifty Puts add 30.3 lakh, Calls add 60.6 lakh shares in Open Int (Nov Data Excluded)
-Nifty Dec 5100 Call adds 21.5 lakh shares in Open Int
-Nifty Dec 5200 Call adds 11.5 lakh shares in Open Int
-Nifty Dec 5000 Call adds 8.7 lakh shares in Open Int
-Nifty Dec 5200 Put adds 6 lakh shares in Open Int