Mumbai: After a lacklustre trade since the opening, the BSE benchmark Sensex shed more than 200 points in the last hour of trade due to renewed concerns in the eurozone. The fall of 7 per cent in SBI on account of worries over its assets quality too added severe pressure on the market. Banking, oil & gas, auto, capital goods and metal stocks caught in bears' hand.
Ritu Arora of Canara HSBC Oriental Bank of Commerce Life Insurance Company feels that global environment does pose a lot of challenges at this point in time and the center of worry is Europe. "The focus shifts from Greece to Italy and Italy is the second most leveraged economy at 120 per cent of GDP in eurozone."
European markets like France's CAC, Germany's DAX and Britain's FTSE were down between 1 per cent and 2 per cent. Others like Athex Composite (Greece) tumbled 2 per cent and FTSE MIB (Italy) plunged over 4 per cent. The Dow Jones futures crashed 186 points.
Back home, the 30-share BSE Sensex dropped 207.43 points or 1.18 per cent, to close at 17,362.10 led by fall in 24 stocks. The 50-share NSE Nifty slipped 68.30 points or 1.29 per cent, to end at 5,221.05.
Ritu Arora said global economy overhang would continue to dominate Indian market sentiment and also FII flows.
Dilip Bhat, Joint MD of Prabhudas Liladher feels that gradually over the next 6-9 months, the markets will come down and probably will make lower bottoms. "4500 looks very much on the cards."
India's largest lender SBI's asset quality concerns disappointed the street.
At 14:50 hours IST : Global cues drag Sensex 100 pts lower; SBI falls 6 per cent
The BSE benchmark Sensex shed more than 100 points following negative European cues. France's CAC, Germany's DAX and Britain's FTSE dropped over 0.5 per cent on worries over Italy and Greece. The Dow Jones futures fell nearly a percent. The 30-share BSE Sensex plummeted 119 points to 17,450.35 and the 50-share NSE Nifty lost 41.5 points to 5,247.90.
SBI crashed over 6 per cent due to deterioration in asset quality in the second quarter. Net profit and net interest income of the bank were up 12 per cent and 28 per cent to Rs 2810 crore and Rs 10442 crore, respectively. But the most worried part was its non performing assets, which rose to 4.19 per cent in Q2FY12 versus 3.35 per cent year-on-year.
Reliance Industries, ONGC, ICICI Bank, Tata Motors, Tata Steel, M&M, BHEL, NTPC, Sterlite Industries and DLF were down between 1 per cent and 2 per cent. HDFC Bank and L&T fell 0.8 per cent.
Maruti Suzuki lost nearly 3 per cent and Hindalco was down 2.5 per cent.
However, HUL shot up 3.3 per cent and ITC gained 0.76 per cent. From the technology space, TCS jumped 1.8 per cent post the company has received USD 2.2 billion order from Friends Life and Wipro gained 2 per cent.
HDFC, Bharti and Coal India were marginally higher. Hero Motocorp rose over 1 per cent.
Even the market breadth has worsened; about two shares dropped for every share rising on the National Stock Exchange.
At 13:56 hours IST: Europe cues fail to perk up mkt; TCS, ITC, HUL surge
Indian equity benchmarks remained directionless despite positive European cues. Capital goods, metals, oil & gas and select banking stocks were witnessing selling pressure while technology, telecom, FMCG and auto (2-wheeler) stocks were on buyers' radar. The 30-share BSE Sensex gained 8.7 points at 17,578.22 while the 50-share NSE Nifty declined 3.5 points to 5,285.85.
Tim Dickson of Invesco Perpetual expects to see range bound markets going forward. However, he feels that the downside risks for the markets are relatively limited. Moreover, he pointed out that he is not optimistic about a rally in emerging markets this year.
TCS surged 3 per cent post the company has received worth USD 2.2 billion order. Among other technology stocks, Wipro gained 1.8 per cent and Infosys was up 0.3 per cent.
FMCG stocks maintained their upmove; HUL rallied 3.6 per cent and ITC rose 1.4 per cent. ICICI Bank, HDFC, Bharti Airtel, Bajaj Auto, Coal India and JP Associates moved up nearly 0.5 per cent. Hero Motocorp jumped 1.6 per cent
However, SBI has remained its top position in the selling list, losing nearly 5 per cent. This was post the rise in its non performing assets to 4.19 per cent in Q2FY12 versus 3.35 per cent year-on-year. However, the net profit and net interest income were better than expectations - rose 12 per cent to Rs 2810 crore and 28 per cent to Rs 10442 crore.
From the oil & gas space, Reliance Industries and ONGC were down 0.44 per cent and 1.6 per cent, respectively.
HDFC Bank, L&T, M&M, Tata Steel, Sterlite, Sun Pharma, NTPC, BHEL and Hindalco dropped 0.5-1 per cent. Maruti Suzuki fell over 2 per cent on labour problems.
The market breadth was in favour of declines; about 506 shares gained while 760 shares slipped.
On the global front, European markets like France's CAC, Germany's DAX and Britain's FTSE were up 0.5-1 per cent in the early trade.
At 12:40 hours IST: Nifty rangebound; SBI falls 4 per cent on asset quality concerns
The NSE benchmark Nifty has been moving in a narrow range of 5270-5300 since the morning trade. Country's largest lender SBI fell sharply post second quarter numbers, which weighed on the market while the buying in HUL , TCS , ITC and Bharti Airtel were helping. The 30-share BSE Sensex declined 5 points to 17,564 and the 50-share NSE Nifty lost 7 points to 5,282.25.
SBI plunged 4.6 per cent on the back of worries over its asset quality. The bank has reported better than expected increase of 12.34 per cent year-on-year in net profit of Rs 2,810 crore for the second quarter of FY12 and net interest income jumped 28.43 per cent to Rs 10,422 crore during the same period. But gross non performing assets increased to 4.19 per cent in the July-September quarter of FY12 versus 3.35 per cent in a year ago period.
ICICI Bank and HDFC Bank too were under pressure, falling 0.25 per cent and 0.65 per cent, respectively.
L&T, ONGC, BHEL, M&M, Maruti, NTPC, Sun Pharma and Sterlite were down 0.5-1 per cent.
However, FMCG stocks were providing good support. HUL was the biggest gainer, rising 3.3 per cent and ITC gained 1 per cent.
TCS, Bharti Airtel, Hero Motocorp and Wipro rallied 1-2 per cent. HDFC rose 0.5 per cent.
At 11:47 hours IST : Sensex lacklustre; TCS rises 1.6 per cent, SBI down
Indian equity benchmarks were marred by lacklustre movements in trade. The broader indices too followed the same trend and the market breadth remained unchanged. The 30-share BSE Sensex moved up 36 points to 17,605 and the 50-share NSE Nifty gained 6.5 points at 5,295.85.
Shares of country's largest lender SBI fell 1.6 per cent ahead of its second quarter numbers. Capital goods stocks like L&T and BHEL were down 0.7 per cent and 0.4 per cent, respectively.
Maruti Suzuki dropped 1 per cent on reports that workers may protest against unsatisfactory resolution of issues. Sun Pharma too was down 1 per cent.
HDFC Bank and NTPC lost 0.4 per cent each while ONGC declined 0.9 per cent.
However, TCS surged 1.6 per cent as the company is likely to announce a major order win today.
HUL was the biggest gainer, rising 2.4 per cent. JSPL, Hero Motocorp and Wipro gained 1.5 per cent each. RIL, HDFC, Bharti, ITC, Tata Steel and JP Associates moved up 0.3-1 per cent.
In the midcap space, Jyothy Labs, Bajaj Corp, Ramky Infra, Sujana Towers and Apollo Tyres rallied 4-9 per cent while KSK Energy Ventures plunged 18 per cent. Gujarat Gas, HCL Info, Motherson Sumi and Essar Ports lost 3-6 per cent.
At 10:29 hours IST: Sensex turns volatile; banks down post Moody's downgrade
The NSE benchmark erased all gains accumulated in the early trade after it slipped from above 5300 to around 5289. Banking stocks slipped into red after Moody's changed India's banking system outlook to negative from stable; HDFC Bank, SBI and ICICI Bank were down 0.3-0.8 per cent. The 30-share BSE Sensex rose just 6 points to 17,575.47 while the 50-share NSE Nifty dropped 4 points to 5,285.55.
Asian markets too slipped from day's high. Shanghai fell 0.35 per cent. Straits Times, Kospi and Taiwan were flat with a negative bias. However, Hang Seng was up 1.6 per cent and Nikkei up 0.65 per cent.
Back home, heavyweights L&T and ONGC fell 0.7 per cent. BHEL, Maruti, Hindalco and NTPC were marginally lower.
However, technology stocks were quite supportive - TCS was up 0.66 per cent and Wipro up 1 per cent. Reliance Industries and Bharti Airtel too held its upmove, rising 0.3 per cent.
HUL, HDFC, Tata Motors, Hero Motocorp, Tata Steel and JSPL gained 0.5-1 per cent.
According to Jyotivardhan Jaipuria, head of research at BofA Merrill Lynch, growth momentum in India is slowing down, especially on the investment side. “That’s really the worry. If we don’t get projects kicking off, and investment demand slows down the way it seems to be, then India may get in a slower growth trajectory on its own irrespective of whether the world slows or not,” he said.
At 9:19 hours IST: Nifty opens above 5300; RIL, ICICI Bank, TCS gain
Indian equity benchmark Nifty held 5300 in the opening trade following Asian cues which were up after Italian Prime Minister Silvio Berlusconi said he would resign. Investors saw hope of reforms in Italy, which may help arrest the euro zone's sovereign debt crisis. The 30-share BSE Sensex rose 46 points to 17,615.60 and the 50-share NSE Nifty gained 11.65 points at 5,301.
Results Reaction: IDFC was up 3 per cent and Reliance Infra up 2 per cent.
JP Associates, SBI (ahead of numbers), Hindalco, SAIL, Tata Motors and Tata Steel moved up higher in early trade.
However, Sun Pharma, Ranbaxy Labs, BPCL, Maruti and M&M were down.
The CNX Midcap Index climbed 27 points to 7,350. About two shares gained for every share falling on National Stock Exchange.
Results Reaction: Aurobindo Pharma lost 3.5 per cent post loss in Q2. Opto Circuits was up 3 per cent. Firstsource Solutions, Godrej Industries and Aban Offshore rose 1.5-2 per cent.
Ahead of numbers today: Voltas fell 2 per cent while Apollo Tyres jumped 3 per cent.
Kale Consultants rallied 5.5 per cent. Tulip Tele, HOEC and Mahindra Satyam were up 1-3 per cent.
Global cues
Asian markets were trading higher. Hang Seng rose 1.7 per cent and Nikkei gained 1 per cent. Kospi and Taiwan were marginally higher. However, Shanghai fell 0.33 per cent.
The US equity markets gained on Tuesday as Italy's Berlusconi to step down as soon as parliament passed austerity measures pledged to European Union (expected month end).
The Dow Jones Industrial Average ended up 102 points at 12,170. NASDAQ Composite was up 32 points at 2,727 and S&P 500 Index rose 15 points at 1,276.
Commodities
Gold futures gained 0.4 per cent at USD 1799.2/ounce
Silver was up 0.9 per cent at USD 35.15/ounce
Crude oil rose 1.3 per cent at USD 96.8/barrel
IAEA report suggest that Iran carried out work relevant for developing nuclear arm
Natural gas was up 1.4 per cent at USD 3.75 per MMBtu
Sugar was up 2.3 per cent
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