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May 22, 2012, 05.34 PM IST
The BSE Sensex and NSE Nifty fell as much as 1.1% each on Tuesday, weighed down by sharp depreciation in the rupee. However, the global markets stayed positive, even after Fitch has downgraded Japan to A+ from AA.
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However, global markets saw value punting on speculation that European leaders would agree on fresh action to tackle the region's debt crisis. Even the statement from Chinese Premier Wen Jiabao saying need to give priority to maintaining growth also helped markets. Asian markets were down 0.6-1.6% at close. European markets were trading 0.6-0.8% higher after paring some gains.
Japanese Yen fell after the Fitch downgraded Japan to A+ from AA due to growing risk of high public debt. The rating agency says the outlook is negative.
The Indian rupee touched a fresh record low of 55.38 to the dollar today, down 35 paise from previous close of 55.03 a dollar. It has been fallen 24% since April 4, 2011 (when it touched 44.50 a dollar) and over 6% in one month.
Regan Homavazir of Darashaw and Company sees 56.5 a dollar as the worse case scenario. “We need to realize that the rupee has depreciated right from 45 to where it stands now, and people may just be complacently bearish on the rupee,” he said.
His worst case scenario for the market is that the Nifty could move lower to retest its December lows (4,531).
The Bank Nifty fell over 1.5% as country's largest lender State Bank of India tanked 3.4%. Private sector lenders ICICI Bank and HDFC Bank were down 1.23% and 1.7%, respectively.
Engineering and construction major by sales Larsen & Toubro tumbled over 2% whereas state-owned capital goods company BHEL gained 1%.
Index heavyweight ITC dropped over 1% and FMCG company HUL slipped 1%. Oil & gas producers Reliance Industries and ONGC were down over 0.6%.
Private power producer Tata Power topped the selling list, falling over 5% ahead of fourth quarter numbers.
Country's largest car maker Maruti Suzuki tumbled 4.5% on fears that rising rupee may increase royalty payments and import cost. M&M, Hero Motocorp and Bajaj Auto fell 0.5-1% whereas Tata Motors went up 1%.
Metals and mining stocks too closed in red. Shares of Sterlite Industries and Hindalco Industries crashed 3-4%. Tata Steel, Jindal Steel and Coal India were down 0.7-1.5%.
TCS, top software services exporter outperformed other largecaps, rising 2% while rivals TCS and Wipro ended flat.
In the second line shares, infrastructure stocks took beating. IRB Infra, IVRCL, GVK Power and Lanco Infratech tanked 3-10%.
Trading favourites Pantaloon Retail, IFCI and Apollo Tyres were down 3%.
However, Wockhardt shot up 8% after company reported excellent performance at EBITDA level, though it disappointed with its net profit due to exceptional loss. Pharmaceutical company reported consolidated net loss of Rs 192 crore for Q4FY12 as against profit of Rs 162 crore YoY, due to exceptional loss of Rs 450 crore during the quarter. However, consolidated net sales increased 32% year-on-year to Rs 1,241 crore and EBITDA margins improved at 35% versus 29% YoY.
Thomas Cook gained 2.4% amid heavy volumes as British holiday maker sold 77% stake in Indian unit to Fairbridge Capital at Rs 50/share and open offer has been set at Rs 65.48/share.
TV Today went up 2% and Mahindra Satyam moved up 2.4%.
Declining shares outnumbered advancing by 891 to 508 on the National Stock Exchange.
The BSE Sensex and NSE Nifty shed all gains in afternoon trade due to fall in index heavyweights L&T, Reliance Industries and SBI. Infosys, ITC and HDFC Bank too were under pressure.
The BSE Sensex and NSE Nifty retained positive trend since early trade due to upmove in global markets. European markets like France's CAC, Germany's DAX and Britain's FTSE opened around 1% higher, respectively.
May 25 2013, 16:36
- in Technicals
May 25 2013, 16:36
- in MARKET OUTLOOK