Sensex crashes; Nifty at 20-month low

Mtoday news / PTI

Mumbai, Nov 23: Indian equity benchmarks crashed 2 per cent as selling continued across the board. The Nifty has decisively breached the 4,700 mark reacting to European credit crisis and choppiness in the rupee. Banks, metals, technology, oil & gas, auto (barring Maruti) and public sector undertaking stocks were butchered.

The 30-share BSE Sensex slipped 522 points to 15,443 and the 50-share NSE Nifty lost 150 points to 4662.

The Indian rupee has been quite volatile today; it was hovering around the 52 to the dollar, though it appreciated from the yesterday’s closing level of 52.30.

 

In an interview to CNBC-TV18, Patrick Perretgreen, Head of Forex & Rates Strategy for Asia, Citigroup warned that the rupee is likely to remain under pressure. Perretgreen is expecting the Reserve Bank of India (RBI) to open dollar window for oil marketing companies (OMCs) to ease the pressure.

All sectoral indices were in the red. The BSE Bankex crashed 2.5 per cent. IT, Oil & Gas, Auto and Metal indices were down 2 per cent.

Top losers - HDFC Bank, Jaiprakash Associates, M&M, Jindal Steel, Reliance Industries, IDFC and Sesa Goa were down 3-5 per cent.

SKS Microfinance plunged 5 per cent on reports that Vikram Akula may resign.

DB Realty (up 20 per cent), Reliance Communications (up 2.5 per cent) and Unitech (up ) rallied sharply after the Supreme Court granted bail to five corporates accused in 2G case.

On the global front, Asian markets extended losses. Taiwan, Kospi and Hang Seng lost 2.8 per cent, 2.4 per cent and 2 per cent, respectively. Straits Times fell 1.5 per cent. Nikkei was down 0.4 per cent and Shanghai down 0.6 per cent.

Earlier at 11 Am:

Bears remained in power as they became more greedy day by day due to failure of European Unions to solve their debt crisis. Volatility in the rupee was another cause of concern for the market - it recovered to 51.88 in the opening trade from Tuesday’s closing price of 52.30 to the dollar but again slipped to 52.11.

The 30-share BSE Sensex lost 225 points to 15,840.61 and the 50-share NSE Nifty fell 67 points to 4,745.55.

"The rupee free fall has caught market by surprise," said Suresh Mahadevan, managing director and head of Indian equities at UBS Securities. With the currency vulnerability adding to the fears over the global volatility, Mahadevan says the instability in the market is most likely to stay for over the next few months.

"The Indian market is the worst performing, globally. The market is moving towards a final leg of capitulation and on a worst case scenario there could be a 20 per cent downside from current levels," Mahadevan cautioned.

Major largecaps like Reliance Industries, Infosys, HDFC Bank, ICICI Bank, Bharti, SBI and BHEL were down between 2 per cent and 3 per cent.

HDFC, TCS, Wipro, Sterlite, Tata Steel, Hindalco and Hero Motocorp lost 1-1.5 per cent. However, Cipla and HUL were only gainers on the Sensex.

The market breadth was in favour of declines; about two shares slipped for every share rising on the National Stock Exchange.

At 9:20 hours IST : Sensex falls 200 pts on eurozone fears, Re recovers

Indian equity benchmark Sensex gave up all of yesterday’s gains to slip below 16,000 in the opening trade. Nifty, on its part, broke the 4750 level. Endless eurozone fears, including selling of 3-month bills at a premium yield of 5.11 per cent by Spain, made investors worried. With US revising its third quarter GDP downward Tuesday, the sentiment has only worsened.

The 30-share BSE Sensex fell 230 points to 15,835.72 and the 50-share NSE Nifty lost 68 points to 4,744.

The Indian rupee saw sharp recovery in the early trade as it seems that RBI may have sold dollars to cap the slide. It was trading at USD 51.88 to the dollar as against 52.30 on Tuesday.

All 50 stocks in the Nifty were in the red tick. Bharti Airtel, BPC, Tata Motors, Hindalco, Tata Steel, Sterlite, BHEL, Siemens, JP Associates, DLF, HDFC Bank, SBI, Kotak Mahindra Bank, Infosys, Reliance Industries, ITC and ONGC were pulling the markets down in the early trade. HUL, NTPC and TCS were marginally lower.

The CNX Midcap lost 40 points to 6,538. About three shares declined for every share rising on the National Stock Exchange.

SKS Microfinance tanked 4 per cent after reports that board members may ask Vikram Akula to resign.

Parsvnath Developers locked at 10 per cent lower circuit. Exchanges reduced its circuit from 20 per cent to 10 per cent from Wednesday.

VIP Industries, Lovable, Titan Industries, Jubilant Foodworks and Delta Corp moved down 2-3 per cent.

Thomas Cook lost 6 per cent as there were reports that its parent company may have shut down some office in Europe.

However, Amtek Auto gained 6 per cent after buyback offer.

Bajaj Hindusthan and Shree Renuka were up 1-2 per cent. Government allowed 1 MT sugar exports in 2011-2012.

Koutons and Vishal Retail rallied 7 per cent each.