Markets Tank Heavily, Plastene India IPO Withdrawn

The Indian markets have tanked heavily today over the political uncertainty in Greece. The re-election that is scheduled to take place in the country has increased the trepidation.

Globally, the equity markets have tumbled as the Greek political uncertainty sent out major shock waves. Yesterday, the Euro zone stocks closed in the deep red. The peer Asian indices are also trading in red today. Hang Seng has tanked over 500 points (2.66%), while Shanghai has tanked by nearly 5% in the opening hours. The Japanese equities are also lower by 1.1% at this hour.

The chaos has led to further rupee depreciation, which is trading in its all-time low range.

All the sectoral indices are trading lower from yesterday's closing. The Auto index has dropped the most among all the indices after the disappointing sales numbers. Power, Metals and Realty are also down by over 2% each.

Among the Sensex stocks, GAIL India, ONGC and TCS are the only stocks trading in positives. Tata Motors has tanked by over 6% over weak sales of Jaguar Land Rover. Excluding the sales of the Range Rover Evoque SUV, its sales have declined by 13% on a year on year basis. The reaction of the brokerage houses on the stock is currently mixed. Other Auto stocks such as Maruti Suzuki, Bajaj Auto and Hero MotorCorp are also trading down.

BHEL has continued trading in negatives as its order book has tumbled. L&T has also reported a decline in its order book, and its shares are marginally down. HDFC is down by 4.76%. Other interest rate-sensitive stocks such as ICICI Bank, DLF, HDFC Bank and SBI are down by over 1% each.

In individual stocks, Lupin has surged by 2.49% after it reported the launch of generic Combivir tablets. Plastene India has become the third IPO to be withdrawn from the market in this calender year due to volatile market conditions and a lack of investors. The shares of Mcnally Bharat Engineering Company are trading marginally up after it reported receving an order worth Rs 103 crore. Stocks of Piramal Healthcare are also up by 0.5% on news that the company will go ahead with its proposed acquisition plans of the healthcare information business ‘Decision Resources Group’ at Rs 3400 crore. BPCL and Videocon have both surged over the reports of higher gas reserves in their Mozambique gas assets.

Companies like Hindusthan National Glass & Industries, Welcast Steels, Himadri Chemicals & Industries, JK Tyre & Industries, Ugar Sugar Works, Emco and Advani Hotels & Resorts all have recommended divideds this morning.

The shares of HDFC and Jain Irrigation have reported a surge in volumes. Osian Industries has reported a new high today. On similar lines, Network18 Media, Infomedia 18 and TV18 Broadcast are trading at new lows.

The market breadth, which indicates the overall health of the market, is negative as more than 60% stocks have declined in value.