Sensex recovers, but still down over 200pts; Ranbaxy up

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?

Sensex down over 500 pts; Asian mkts extend losses

At 12:02 hours IST, the Sensex slipped further led by selling across all the sectors, was down over 500 points and the Nifty declined over 150 points. Concerns about Dubai's debt restructuring plan shook the confidence of investors across the globe, as it is a centre for investment and a source of capital for many countries.

Realty stocks were taking huge beating, as respective index plunged over 6%. The BSE Bank, Metal, Capital Goods and Oil & Gas indices fell 3-4%. Advance:decline ratio was at 1:14 on the NSE.

Asian markets extended losses. Kospi plunged 4.7%. Hang Seng, Nikkei and Taiwan Weighted fell 3-4%. Shanghai and Jakarta slipped 2-2.7%.

According to Reuters, the Emirate said on Wednesday it would ask creditors of Dubai World, the conglomerate behind its rapid expansion, and Nakheel, builder of its palm-shaped islands, to agree a standstill on billions of dollars of debt as a first step towards restructuring.  Dubai World has USD 59 billion of liabilities, representing a large part of Dubai's total debt of USD 80 billion.

The Dubai government's announcement prompted Standard & Poor's and Moody's Investors Service to sharply cut their ratings on several government-related entities. Moody's slashed some units to junk status and S&P said the restructuring could be considered a default.

The Sensex was down 516 points at 16338, and the Nifty was down 159 points at 4845.

In the largecaps, heavy selling was seen in Siemens, DLF, Jaiprakash Associates, Larsen and Unitech down 5-7%. Ranbaxy Labs and Cipla were the only two stocks on the Nifty, which were trading with positive bias.

In the realty space, Orbit Corp was the top loser down close to 10%. Indiabulls Real Estate, HDIL, Omaxe, Sobha Developers, Ansal Properties, Anant Raj Inds, Parsvnath Developers, DLF and Unitech were down 5-9%.

In the banking space, IOB, Allahabad Bank, Bank Of Baroda, Bank of India, IDBI Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank and ICICI Bank were down 4-6%.

Top gainers on the BSE Midcap - KGN Industries, Jain Irrigation, Wockhardt, CI India and EIH were up 1-5%.

Top losers on the BSE Midcap - BF Utilities, Indiabulls Real, HDIL, Sobha Developer and Indiabulls were down 6-8%.

Top gainers on the BSE Smallcap - JMD Telefilms, Money Matters, Rico Auto, Religare Techno and Page Industries were up 1-5%.

Top losers on the BSE Smallcap - Orbit Corporation, Mahindra Forg, Deep Industries, JSW Holdings and Ganesh Housing were down 8-10%.

Sensex plunges over 400 pts; banks, realty worst hit

At 11:17 hours IST, the markets remained under pressure for the second straight day on concerns about Dubai's debt restructuring plan. Banking and realty stocks took heavy knock today followed by metal, oil & gas and capital goods stocks. Shares of companies, which have exposure to Dubai crashed in the early trade.

On the global front Asian markets slipped further, as Dubai-government owned 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.

The S&P had placed the ratings of four Dubai-based banks on negative outlook due to their exposure to Dubai World. Istithmar an arm of Dubai World holds nearly 13% stake in SpiceJet, which fell nearly 7%.

Among the Asian markets, Hang Seng and Kospi lost 3.4% each. Taiwan Weighted and Jakarta tanked 2.8% each. Shanghai and Nikkei were down 1.8-2.3%.

The Nifty tanked 130 points to 4,875 and the Sensex fell 429 points to 16,425. The BSE Midcap and Smallcap indices declined 2.5% each. All sectoral indices were down 2-5.7%.

L&T, Bank of Baroda, Volats and Mundra Port, which have exposure to Dubai, fell 2.5-3.7%.

The management of Band of Baroda said the company didn't see any impact from Dubai situation, as there was no significant exposure to Dubai real estate. "Real estate forms 5-6% of Dubai portfolio"

R Shankar Raman, Exec VP Finance at L&T said that the company had exposure in multiple segments in Middle East. The company had exposure in hydro power segment. The company's exposure in Middle East over the last 2 years was to the tune of $ 200 million, he added.

YD Murthy, Exec VP-Finance of Nagarjuna Constructions said that due to the meltdown in Dubai real estate project, the company was going slowly on 440 apartment project in Dubai. The company required additional funding of Rs 100 crore to continue development, and the company was talking to banks for funding. "Currently we have two infra projects in Dubai and Abu Dhabi"

Realty stocks like HDIL, Omaxe, DLF, Parsvnath, Indiabulls Real and Unitech were down 4.5-6.6%, despite the comments from realty majors. The BSE Realty Index fell 5.7%.

All the banking stocks were down. Kotak Mahindra, Axis Bank, PNB, ICICI Bank, SBI and HDFC Bank slipped 2.4-3.8%. Bankex lost 3.5%.

Cement prices were hiked by Rs 5-15/bag. Pune cement prices hiked by Rs 10-15/bag and Mumbai cement prices hiked by Rs 5-7/bag. Delhi & Bangalore cement prices are set to increase.

Cement Stockists' & Dealers' Association president, Sanjay Ladiwala said cement prices were hiked in South, West India. "North will follow suit and prices set to increase."

However, Bharti Airtel, Ranbaxy Labs and Cipla were the gainers. Ranbaxy Labs was up over 2%, as it launched Valaciclovir Tablets in US.

Suzlon Energy was up just 0.3%, as its arm REpower won order for upto 954 MWs.

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