US financial woes thrash markets; Nifty ends below 4100

ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs Nifty BSE | NSE 31/05/12 Are Mutual Funds betting on Nifty?

Markets @ 2:26 pm : Nifty holds 4000; CG, Bankex, Metal, Power, IT dip 5-6%

Markets are still witnessing huge selling pressure in line with European markets though some bit of recovery has happened. Credit crisis in US financial space is playing a big role in today's trade. Selling is seen across the board; realty, technology, power, metal, banking, telecom, oil and capital goods stocks are taking huge beating on the bourses followed by midcap and small cap stocks.

The Sensex tumbled 621 points to 13,378 and the Nifty lost 204 points to 4,024, at 2:26 pm. BSE Midcap and Small cap indices plunged over 5% each.

Huge turnover is seen in markets. Till now, it is around Rs 57,095 crore. This includes Rs 3,220 crore from BSE Cash segment, Rs 8,267 crore from NSE cash and balance Rs 45,608 crore from NSE F&O segment.

BSE Realty index fell nearly 9% followed by IT, Power, Metal, Bankex and Capital Goods, which lost 5-6%. Oil & Gas Index fell 4.7%.

Among the frontliners, Reliance Infrastructure, Satyam, DLF, Jaiprakash Associates, Sterlite Industries, Ranbaxy Labs, Hindalco, ONGC, Reliance Communication and TCS are top losers.

Crude has touched a low of USD 98.01 to a barrel and is hovering around that level. It had hit USD 98/bbl in February.

On the global front, European markets like FTSE, CAC and DAX lost around 3.5-4.5%.

Dow and Nasdaq Futures fell 3%.

Markets @ 1:08 pm : Mkts free fall; RIL, Infosys, ICICI, L&T, ONGC drag

Markets are extremely under pressure and that weakness got strenghtened further after sharp sell off in European markets in early trade. Realty, technology, power, telecom, metal, capital goods, banking and oil stocks slumped severely. Midcap and small cap stocks are also in the same league.

Heavyweights like Reliance Industries, ONGC, NTPC, DLF, Infosys, Reliance Communication, TCS, BHEL, SBI and ICICI Bank plunged 4.5-8.5%. All BSE Indices are in the red. Not a single stock in the benchmark indices is in green.

At 1:08 pm, the Sensex fell 729 points to 13,271 and the Nifty lost 232 points to 3,995, which is hovering around 4000 mark. BSE Midcap and Small cap indices went down over 5.5% each.

Incremental flows at FII desk are negative. There is a complete lack of buying and local institutions are on sidelines. Nifty 4000 is a key level and if it closes below that mark then it will add more pressure.

There is a buzz of liquidation of Lehman proprietary book & P-Notes transfer. Investors worried about larger impact on global markets. Bigger worry is AIG going bust while Merrill news is surprising. AIG has huge exposure to all emerging markets.

KC Reddy of ABN Amro AMC sees a global economic slowdown and an industrial slowdown. He expects the FII (Foreign Institutional Investor) flows to continue to be negative till November.

Hans Goetti, CIO, LGT Bank does not expect any rate cut by the Fed tomorrow. Risk aversion will have most negative impact on markets, he said. One should wait and see on how the US markets will open, he said.

Top losers are Reliance Infrastructure, Satyam, DLF, Jaiprakash Associates, Sterlite Industries and Reliance Communication.

BSE Realty Index lost 10%. IT plunged 7%. Power, Metal, Bankex, Capital Goods and Oi & Gas indices fell 5-6.5%. Healthcare, Auto and FMCG lost 3-4%.

On the global front, European markets are trading sharply lower after the news that Lehman Brothers has filed Chapter 11 bankruptcy. FTSE, CAC and DAX fell 3-4%.

Markets @ 11:45 am : Bloodbath continues on D-Street; Sensex, Nifty dip 5.5%

Heavyweights are taking huge beating on the bourses followed by midcap and small cap stocks. Negative global cues are being dampener for our markets. Benchmark indices fell nearly 6% each. Incremental flows are negative at FII desk; buy:sell ratio is around 1:3. There is complete lack of buying support and even local institutions are not active today. A key level to watch out for on the Nifty is 4000 and may slip more if it is broken.

On the global front, there is buzz that there will be liquidation of Lehman proprietary book and P-Note transfer. AIG is going bust a bigger worry for the market, which has huge exposure to all emerging markets compared to Merrill Lynch (ML). ML takeover is not likely to be a bad news as deal was done at higher price.

Ramesh Damani feels that global markets will go through painful adjustment period.

All these news are lingering on our markets as well. The Sensex fell 826 points to 13,147 and Nifty lost 265 points to 3,963, at 11:45 am. BSE Midcap and Small Cap indices fell over 5.5% each.

Abhijeet Chakravorty, Edelweiss says the liquidation of Lehman & takeover of Merrill will have huge negative impact & will adversly affect global risk appetite for equities. We are likely to see large portfolio selling which can put more pressure on the market. The Sensex can go down to 13000.

Ray Barros, CEO,  Ray Barros Trading Group said the Sensex may hit 9000 if the 13167-12005 levels do not hold. He expects the US markets to retest thelows of 10,800 levels.

Among the frontliners, Reliance Infrastructure, Satyam, Sterlite Industries, Jaiprakash Associates and DLF slid 8-10%. Reliance Communication, Wipro, ICICI Bank, ONGC, BHEL, TCS, Infosys, SBI, Tata Motors and NTPC fell 6-7.5%. Reliance Industries, L&T and HDFC tumbled over 4.5% each.

Market breadth is completely in favour of declines; about 480 shares have advanced while 2471 shares declined. Nearly 225 shares are unchanged.

BSE Realty Index went down 10%. IT, Power, TECk, Bankex and Metal indices fell 6-7.5%. Capital Goods and Oil & Gas lost 5.5% each. Healthcare, Auto and FMCG plunged 3.5-4%.

HCL Tech says not impacted much by Lehman's crisis, which contributes less than 1% of sales. HCL Tech fell 7%.

BASF makes offer to acquire Ciba, which went up 5%.

Indian Rupee is trading around 45.92 to a dollar after hitting 46/$ mark in early trade. Crude is hovering around USD 99 a barrel on the NYMEX.

Asian markets also plunged. Straits Times tumbled 3% and Taiwan Weighted fell 4%. Dow Jones Futures fell 2.5% and Nasdaq Futures lost 3%.

European equities are likely to see initial selloff on opening bell, says Cantor Fitzgerald.

Markets @ 10:50 am : Nifty slips below 4000; Realty, Bankex, Power dip 6-9%

Markets have slipped further and are taking cues from weak global markets. Rate sensitives, infrastructure, technology, telecom and oil stocks are being hammered the most. Midcap and small cap stocks have also got crushed in this turmoil.

The Sensex plunged 774 points to 13,225 and the Nifty fell 243 points to 3,985, at 10:50 am. BSE Midcap and Small Cap indices lost over 5%.

Finally source based news has come true. Lehman Brothers has filed Chapter 11 bankruptcy. It says no broker-dealer subsidiaries to be included in bankruptcy filing and the company is exploring sale of its broker-dealer operations. 

Another breaking news is Bank of America (BoA) has bought Merrill Lynch (ML) in $50 billion all stock deal. BoA will give 0.8595 shares for every 1 share of ML.

Kirby Daley says will see lot of action from FED and government to keep the situation under control. He sees investor risk aversion going forwrad and may see outflows from emerging markets including India.

Biggest contributors for this fall are: Reliance Industries (106 points),
ICICI Bank (53 points), Infosys (60 points), HDFC Bank (33 points) and L&T (52 points). 

Among the frontliners, Satyam, Reliance Infrastructure and DLF fell over 8% each. Only BPCL is in green.

Markets breadth is worst; about 635 shares have advanced while 2310 shares have declined. Nearly 231 shares are unchanged.

BSE Realty Index lost 9.4% as Puravankara Projects, Akruti City, HDIL, Indiabulls Real, Anant Raj Ind, Ansal Properties and Peninsula Land fell 10-19%. Parsvnath, Unitech and DLF fell 8-9%.

Power Index slipped 6.8%. CESC, GMR Infra, Reliance Power, Reliance Infrastructure, Siemens and Torrent Power plunged 8-9%.

Bankex crashed 6.9% due to sell off in Union Bank, ICICI Bank, Oriental Bank, Axis Bank, Kotak Mahindra and HDFC Bank, which fell 7-10%.

Oil stocks like Cairn India, Essar Oil and RNRL fell over 8.5%. ONGC and Reliance Industries went down 6% and 4.5%, respectively.

IT Index lost 6.4% as Patni Computer, Satyam, TCS, Wipro, HCL Tech, Financial Tech, Tech Mahindra and Infosys fell 5-10%.

BSE Metal tumbled 6%, Capital Goods -5.66%, Healthcare -3.8%, Auto -3.7% and FMCG -3.7%.

On the global front, Shanghai, Nikkei, Hang Seng and Singapore markets are shut today. Straits Times fell 3% and Taiwan Weighted lost 4%.

Markets @ 9:56 am : Mkts crash in early trade

Markets have crashed in early trade and extended losses further for the first day of week as they are clouded with negative global cues. SGX Nifty lost 4%.

At 9.56 am, the Sensex is down 538 points at 13462, and the Nifty down 168 points at 4060.

DLF, ICICI Bank, HDFC Bank, Unitech, NTPC, Infosys, Reliance Infrastructure and Zee Entertainment lost ground.

Sudarshan Sukhani told CNBC-TV18, "We are very close to a breakdown. We are close to support and this is a trading range - one should go ahead, go long and buy. We can hope for the best and since hope is not enough one should also keep a stop loss below 4,200. So the correct trade would be to go long because this is a trading range and we are now very close to support."

The Indian Rupee has touched 46 to a dollar for the first time in two years. It has hit that level on September 29, 2006.

Nymex crude has slipped below $ 100 to a barrel on the NYMEX on Sunday. It is currently hovering around USD 99/bbl. There was no extensive damage to oil rigs and refineries. There are signs that operations would resume soon. US SPR has released 9,39,000 barrels on disruptions fro, Gustav, IKe. US crude oil demand declined by 3.9% and gasoline was down 2.1%.

US financial space has been seeing more credit crisis. Lehman Brothers is likely to file for bankruptcy in US today, said sources.

Sources also said, AIG is seeking capital from Kohlber Kravis & JC Flowers. Bank Of America is likely to buy Merrill Lynch for $ 29/sh and deal valued at $43.5 billion.

Market cues:

• Shrugs off hurricane Ike impact on signs that slowing economy will curtail demand
• For first time since April despite Ike shutting down 19% of US oil processing capacity
• FIIs net sell $349.7 million in equity on Sep 11: SEBI
• NSE F&O Open Interest up by Rs 2,182 crore at Rs 85,069 crore

F&O cues:

• Futures Open Interest up by Rs 833 crore and Options Open Interest up by Rs 1,349 crore
• Nifty Futures add 10.5 lakh shares in Open Interest, at 18-pt premium
• Nifty Open Interest PCR at 0.94 Vs 1
• Nifty Puts shed 1 lakh shares in Open Interest
• Nifty Calls add 26 lakh shares in Open Interest
• Nifty 4100 Put adds 2 lakh shares in Open Interest
• Nifty 4300 Call adds 8 lakh shares in Open Interest
• Nifty 4400 Call adds 4 lakh shares in Open Interest
• Nifty 4600 Call adds 4 lakh shares in Open Interest
• Stock Futures add 2 cr shares in Open Interest