Bloodbath On D-Street, Sensex Below 17k And Nifty Below 5100

DSIJ Intelligence / 04 May 2012

Indian market had a blood bath trading session, which resulted the broader markets to close down almost 2 per cent in today’s trading day. Nifty breached the psychological mark of 5100 while Sensex plunged below 17k.
Indian market had a blood bath trading session, which resulted the broader markets to close down almost 2 per cent in today’s trading day. Nifty breached the psychological mark of 5100 while Sensex plunged below 17k, creating further speculation that the market may move southwards going ahead. Markets are at its lowest level in last 3 months. This was after the weakening rupee and after the media reports which said that government plans to review tax treaty with Mauritius which further dampened investor sentiment. Among the sectoral Indices Capital goods and Bankex plunged more than 3 per cent which led the market to take a free fall, while Health care was the only Indices which closed the day in the positive territory. 

Benchmark Indices
Index Closing % Change
SENSEX 16825.62 -1.90
NIFTY 5083.45 -2.02
Hang Seng 21086 -0.77
Nikkei 9380.25 0.00
Shanghai 2452.01 0.49
Live
FTSE 5719.44 -0.82
DAX 6650.29 -0.66
CAC 3195.7 -0.86


The peer Asian markets closed in the mixed bag with Hang seng closing in the red zone while Shanghai closed the trade in the positive territory. Japanese markets were shut for the day. Asian markets are looking nervous after Australia’s central bank cut its economic growth forecast on the back of uncertain macro environment and U.S service industries data came in below the street expectation raising concerns that U.S economy is not able to be growth track.

European markets currently are trading week as investor’s awaited elections in France, Greece, Italy and other countries and also are waiting for the U.S. payrolls reports which will further help them to take cues. 

Dow Jones Futures is currently trading 20 points or 0.15% down at 13123, indicating a negative sentiment in the US markets.

Sectoral Indices
Category/Index Close Change(Pts) Change (%)
Broad
MIDCAP 6,100.97 -133.78 -2.15
SMLCAP 6,589.10 -120.86 -1.8
BSE-100 8,805.32 -173.61 -1.93
BSE-200 2,070.55 -41.72 -1.98
BSE-500 6,493.85 -128.3 -1.94
Sectors      
HC 6,805.58 18.81 0.28
IT 5,730.96 -56.03 -0.97
TECk 3,332.79 -38.01 -1.13
FMCG 4,709.56 -57.23 -1.2
OIL&GAS 7,730.73 -136.79 -1.74
AUTO 10,011.91 -197.13 -1.93
CD 6,608.96 -140.08 -2.08
REALTY 1,627.66 -41.41 -2.48
METAL 10,564.26 -269.64 -2.49
POWER 1,911.23 -49.12 -2.51
PSU 6,923.01 -181.19 -2.55
BANKEX 11,284.51 -369.19 -3.17
CG 8,904.07 -350.77 -3.79


Back home, Capital goods heavyweights were among the leading Index loser. BHEL and L&T closed down 5 and 4.3 per cent respectively.  Auto stocks like Hero motocorp and Bajaj Auto continued to trading weak for the entire trading day closing down 4.42 and 3.76 per cent respectively. Metals stocks show lackluster performance as the stocks like Tata steel and Sterlite Industries closed down 3.29 and .3.21 per cent respectively. Banking space too was beaten down heavily with stocks like SBI, HDFC bank and ICICI bank closed down in the range of 2.75 to 4.39 per cent. Other stocks like TCS, Tata power etc closed marginally in the red zone.

On the other hand, there was a very short list of Index gainers in today’s trade. Pharma heavyweight Cipla closed the day 2.46 per cent to Rs 325.2, after the news that the company has slashed the prices up to 76 per cent of cancer drugs to remain competitive in the environment. Sun pharma also closed the day 0.15 per cent higher to Rs 600.75. Other stocks like Wipro, HUL and Tata Motors closed the marginally in the green zone.

Bank of Baroda plunged 6 per cent to Rs 687.05, after it reported its March quarter of 2012. Bank reported net profit of more than 17 per cent growth to Rs 1518 crore. In March 2012, banks Net NPA increased to 0.54 from 0.51 per cent on a sequential basis. IRB Infrastructure closed 14 per cent lower to Rs 128.75, after CBI summons its chairman. The stocks yesterday had plunged around 13 per cent resulting a combined two day loss of around 27 per cent on the counter.  

Advance-Decline Table
Index Advances Declines Unchanged
BSE 30 5 25 0
BSE 100 17 83 0
BSE 200 23 177 0
BSE 500 60 439 1
Others 673 1640 98


The market breadth, which indicates the overall health of the market, was negative. Out of the 3241 stocks traded on the BSE, 2364 declined, 778 advanced, and 99 remained unchanged.

One should watch out for stocks like Bank of India, HDFC, GIC Housing, Tata coffee, IRB Infra, GVK power, Ranbaxy Lab, Cipla, Lupin etc which are going to post their March quarter results next week. These stocks may see stock price movement.   

In conclusion we expect the markets to remain volatile for next week too as investors are jittery in this volatile and uncertain environment. We advise our readers to play with cautions. 

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