Indian equity benchmarks could not participate in the global rally on Friday due to profit booking. Fears of possible rate hike may have dampened the sentiment in India. Experts are expecting another rate hike in next RBI policy meet to be scheduled on September 16 after today's Industrial output data.
The 30-share BSE Sensex fell 219.77 points, to close at 16,839.63 and the 50-share NSE Nifty lost 65.35 points, to end at 5,072.95.
However, global markets rallied quite sharply on the back of short covering post short selling ban in Europe. France's CAC, Germany's DAX and Britain's FTSE were trading 2% higher at the time of closing of Indian equities. Even Dow Jones futures gained 25 points, after more than 200 points recovery from day's low.
Back home, even Industrial output for the period of April-June (2011) was not so great today, which showed a dismal growth of 6.8% as against 9.6% in the corresonding quarter last fiscal.
India's industrial output growth jumped to 8.8% in June versus 5.9% in May led by growth in sectors like manufacturing, capital goods, basic goods and electricity.
Srinivasan Varadarajan, ED, Axis Bank feels that this number seems to be a random number based on capital goods. "If we take out capital goods (which showed a significant growth of 37.7% in June as against 3.7% in same period last year) then you are looking at not such a robust number," he added. He said, "No one is expecting growth to drop off, as far as India is concerned. I think we are seeing moderation in growth."
Samiran Chakrabarty, Head of Research at Standard Chartered Bank says, he is still looking at a 25 bps rate hike primarily because commodity prices have not softened fast enough to give comfort to RBI.
For the week, the Sensex slipped 2.7% and Nifty fell 2.65%.
L&T Finance Holdings too disappointed investors by its debut. The stock closed down 4% to Rs 49.95 as against issue price of Rs 52 a share on the BSE.
Banking, realty and technology stocks took huge beating today. The BSE IT, Bank and Realty indices were down 1.5-2.5%.
SBI, HDFC, HDFC Bank and DLF fell 2-3%. Infosys, TCS and Wipro plunged nearly 3%. Heavyweights Reliance Industries, NTPC, BHEL and Bharti Airtel slipped 1.5-2%.
Tata Motors was the biggest loser post disappointing set of numbers in Q1FY12. Research firm CLSA downgraded the stock to underperform from outperform and reduced target price to Rs 790 from Rs 1,150. The stock tanked over 5%.
However, M&M, Jindal Steel and Hero Motocorp gained 1.8-2.6%. ONGC, L&T and HUL too were on buyers' radar.
About 512 shares advanced as against 788 shares declined on National Stock Exchange. Total traded turnover on both exchanges was nearly Rs 1.38 lakh crore.
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At 15:11 hours IST : Nifty sheds 60 pts, European markets gain 1.5-2%
Indian equities did not respond to the sharp rise in European markets. BSE benchmark Sensex fell 216 points to 16,843 led by fall in 23 stocks out of the total 30. NSE benchmark Nifty slid 60 points to 5,072.
However, Dow Jones futures gained 35 points after seeing a recovery of 220 points from the day's low. European markets including France's CAC, Germany's DAX and Britain's FTSE moved up 1.5-2%.
On the India front, Infosys, HDFC Bank, HDFC, TCS, SBI, Reliance Industries, Bharti Airtel, Wipro and BHEL tumbled 1-3%. Tata Motors plunged over 5%.
However, M&M, JPSL, ONGC, Hero Motocorp, L&T, HUL and Cipla were only gainers.
Midcaps like Orchid Chemical, Gujarat Gas, Puravankara Projects, Jubilant Foodworks and Jindal PolyFilm rallied 7-11% while TV18 Broadcast crashed 13%. Polaris, Network 18, Apollo Tyres and NCC slipped 6-8%.
At 14:33 hours IST - Sensex slips over 1%; TCS, SBI, Infosys under pressure
The market continued to trade lower though European markets got back into green after initial sell-off and industrial output data was strong for June. The 30-share BSE Sensex was trading at 16,839, down 219 points and the 50-share NSE Nifty fell 64 points to 5,074.
European markets including France's CAC, Germany's DAX and Britain's FTSE were trading 0.7-1.5% higher.
Back home, June industrial output data showed a growth of 8.8% as against 5.9% in the previous month, driven by manufacturing, capital goods, basic goods and electricity sectors.
Among the largecaps, Tata Motors, Hindalco, TCS, Tata Power, Infosys, SBI and Reliance Capital were down 3-6%.
However, Hero Motocorp, Jindal Steel, M&M, ONGC, GAIL and Cairn India gained 1-2%.
New listing - L&T Finance was trading at Rs 50.55 as against issue price of Rs 52 a share.
SBI, Tata Steel, Inventure Growth, Tata Motors, ICICI Bank and Infosys were most active shares on exchanges.
About 574 shares advanced as against 712 shares declined on National Stock Exchange.
At 13:39 hours IST - Nifty goes way below 5100, Europe back in trade
The market was not seeing any signs of a recovery though European markets bounced back after initial sell-off. The 30-share BSE Sensex shed 241 points to 16,818 and the 50-share NSE Nifty lost 72 points to 5,064.
Selling pressure was seen in technology and financial stocks. TCS and Infosys plunged 4% each. Meanwhile HDFC, SBI and HDFC Bank lost 3% each.
Shares of India's largest commercial vehicle maker Tata Motors were butchered after disappointing quarterly numbers. Even foreign market research firm CLSA downgraded the stock to underperform. The stock fell nearly 6%.
Heavyweights Reliance Industries and NTPC too were down nearly 0.7%.
However, Hero Motocorp turned big gainer on Nifty, with rising 2.6%. JSPL, Cairn, GAIL, M&M and Power Grid were up 1-2%. ONGC moved up close to 1%.
About 542 shares advanced as against 743 shares declined on National Stock Exchange.
At 12:37 hours IST - European markets open weak, drag Sensex 255 points down
The Indian benchmark indices slipped further in afternoon trade as European markets opened 1-2% down. Heavy selling was seen in IT, banking, realty, auto and power stocks. Stock like Reliance, Infosys, ICICI Bank, ITC and HDFC were laggard to the bourses.
At 12.44 hrs IST, the Sensex was down 255.11 points or 1.50% at 16804.29, and the Nifty was down 79.50 points or 1.55% at 5058.80.
About 1,227 shares advanced, while 1,384 declined and 1,060 remained unchanged.
Top losers on the Sensex were Tata Motors at Rs 799 (down 5.51%), Wipro at Rs 340 (down 3.76%), TCS at Rs 945.35 (down 3.31%), Hindalco at Rs 152.50 (down 2.99%) and DLF at Rs 200.70 (down 2.86%).
Tech major Infosys was trading at Rs 2,375.60, down 2.6% from its previous close of Rs 2,438.95. Index heavyweight Reliance was trading 1.73% lower from its previous close at Rs 760. Refinery major HPCL was trading at Rs 383.30 down 2.11% from its previous close of Rs 391.55.
Most active shares on BSE were L&T Finance, Inventure Growth, SBI, Tata Motors and Clarus Finance.
Top percentage losers on the BSE - Clarus Finance, TV18 Broadcast, Inventure Growth and Piccadilly Agro were down 12-20%.
At 12:10 hours IST : Sensex slips below 17K ahead of Europe opening
Sensex -- the 30-share BSE benchmark --shed more than 150 points ahead of European markets opening. Meanwhile, the Nifty slipped below the 5,100 level. Sell-off in technology, financial, telecom and select metal shares led to the fall.
In an interview to CNBC-TV18, Ruchir Sharma, global head of emerging markets at Morgan Stanley Investment Management said the Indian market is expected to grind lower and added that "the Indian growth picture has deteriorated. We need economic reforms for India to perform well. However, the expectations from reforms are quite low. We could get some changes if GDP slips below 7%."
Industrial growth for the quarter (April-June) grew 6.8% as against 9.6% in the corresponding quarter last fiscal. However, June industrial output data showed a growth of 8.8% as against 5.9% in previous month.
The 30-share BSE Sensex was trading at 16,902, down 156 points and the 50-share NSE Nifty fell 49 points to 5,089.
Tata Motors was the biggest loser, falling nearly 5%. CLSA downgraded the stock to underperform from outperform and reduced target price to Rs 790 from Rs 1,150.
TCS, Wipro, HDFC Bank, Infosys, Bharti Airtel and HDFC were down 2-4%. NTPC, SBI and BHEL slipped 0.5-1%.
However, ONGC rallied over 2%. L&T, ICICI Bank, ITC, Hero Motocorp and Sterlite Industries were marginally in the green.
At 11:22 hours IST - June IIP nos fail to shake up Sensex; ICICI Bank, ONGC gain
Indian equities continued to remain lacklustre even though June industrial output data showed a growth of 8.8% as against 5.9% in previous month. The 30-share BSE Sensex was trading at 17,058, down just 1 point and the 50-share NSE Nifty fell 1.55 points to 5,136, as industrial growth for the quarter (April-June) grew a dismal 6.8% as against 9.6% in the corresponding quarter last fiscal.
Manufacturing, capital goods, basic goods and electricity sectors recorded good growth while growth in mining, consumer goods and consumer durables goods worsened.
Among largecaps, Jindal Steel, ONGC, Hero Motocorp, ICICI Bank, M&M and Cairn India were top gainers, rising 1.6-2.7%.
However, Tata Motors tumbled over 4% on lower than expected numbers in Q1. Wipro, TCS, Bharti Airtel, HDFC Bank and PNB fell 1.5-3%.
New listing - L&T Finance Holdings was trading at Rs 51.95 as against issue price of Rs 52 a share.
At 10:20 hours IST - No big leap on Sensex; ADAG stocks up, tech down
BSE benchmark Sensex was witnessing consolidation for the second consecutive session despite strong rally in US markets yesterday. The 30-share BSE Sensex was trading at 17,097, up 38 points and and the 50-share NSE Nifty gained just 9 points at 5,147.
Rest of Asia too did not respond to US rally; Asian markets were witnessing mixed trade. Shanghai, Hang Seng and Straits Times were up 0.5-1.5% while Nikkei, Kospi an Taiwan were marginally in the red.
Oil & gas, Anil Dhirubhai Ambani Group, realty, cement, select auto and financial stocks were supporting the market but selling in HDFC Bank, Tata Motors (post disappointing quarterly numbers on standalone basis), Bharti Airtel, Infosys, Wipro, HDFC, HUL, Tata Steel, BHEL and NTPC, kept a check on market rise.
The broader indices were strong as was the market breadth -- about three shares gained for every one falling share.
At 9:18 hours IST : Sensex up moderately in morning trade; L&T Fin disappoints
The 50-stock NSE Nifty opened with a wide gap up but slumped soon after to 5160, registering a gain of 23 points. Tata Motors quarterly numbers have dampned investor sentiment, so much so that a positive Dow close failed to make any impact in the first trades. L&T Finance, which debuted on the bourses today, fell 2% from its issue price. It appears investors are ignoring Dow closing levels, a trend noticed even yesterday, and are betting on domestic plays. The 30-share BSE Sensex went up 67 points to trade at 17,126.
Metal stocks like Sterlite Industries, SAIL and Sesa Goa jumped 1.5%.
Financial stocks too were witnessing buying interest post rally in global banks. SBI, Axis Bank, Kotak Mahindra Bank and ICICI Bank were up 0.5-1%.
Anil Dhirubhai Ambani Group companies' shares like Reliance Capital, Reliance Infra and Reliance Comm too bounced back with 1-2% gain.
However, Tata Motors tanked 2% post Q1 results. Reliance Industries, Bharti Airtel and ACC were other losers.
The CNX Midcap was trading at 7,688, up 65 points. About 500 shares advanced as against 92 shares declined on National Stock Exchange.
Results reaction - Jubilant Foodworks was up 8% and Lovable Lingerie up 2%.
Crew BOS shot up 10%.
KRBL, Mahindra Satyam and Jaiprakash Power gained 2.5%.
Global cues
Asian markets were mixed in trade. Shanghai, Hang Seng and Straits Times were up 0.5-1%. However, Nikkei, Kospi and Taiwan fell 0.5%.
Global markets bounced back with banking sector being the strongest post Europe banning short selling and better-than-expected US jobs report.
Belgium, France, Italy and Spain have decided to impose a temporary ban on short selling, which will be effective from Friday.
European shares ended higher following news that French President Nicolas Sarkozy and German Chancellor Angela Merkel will meet next Tuesday to discuss the euro zone governance and other international issues.
US weekly initial jobless claims slipped below 4,00,000 for the first time in four months.
Commodities
December gold contract was down 1.8% at USD 1751.5/ounce for its first loss in five sessions
CME raised gold initial and maintenance margin requirements by 22% and 18% respectively, effective Thursday
September silver contract went down 2% at USD 38.67/ounce
September crude oil contract was up 3.4% at USD 85.72/barrel
September natural gas contract was up 2.7% at USD 4.11 per MMBtu
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