Markets pare losses on short-covering. Nifty closes below 5k

Commentary

oi-Shoaib MD

By Shoaib Md

Published: Monday, September 12, 2011, 17:05 [IST]

Both the benchmarks, Sensex and Nifty, went into a tailspin fall. As the outlook for the Eurozone debt became grim the markets all over the world were spooked. A sharp fall in industrial growth in India did not help either, add to it that rupee reached a new one-year low made matters worst.

The 30-share BSE Sensex was trading at 16,502, down 365 points and the 50-share NSE Nifty fell 112 points to 4,946.

On the home turf, the sell-off continued in across the sectors. The worst hit are Consumer Durable (-3.43%), Metal (-3.39%), Information technology (-3.27%), Realty (-3.13%), TecK (-3.12%) and Bankex (-3.08%).

The best performing sector was FMCG, that lost only 0.18%.

However, Ambuja Cements and HUL bucked the trend; both gained 4%. Sun Pharma, Cipla and Grasim were other gainers. Even GTL gained a bit in the market. Maruti Suzuki lost 3.14%.

About 851 shares advanced as against 1981 shares declined on BSE.

5:01 p.m.

Markets pare losses on short-covering. Sensex down by 322 points

The stock market pulled back from its low for short-cover. The Sensex reduced its losses from over 400 points to 322 points, the current value of the index is 16,544. Meanwhile the Nifty is trading at 4,951.55 with a loss of 107.90 points or 2.13%.

The most traded stock on the national stock exchange is Pipavav Shipyard, The stock has garnered attention after after the company announced that its plans to build submarines and warships for the government of India.

Meanwhile European markets opened in the red. Among European markets, France's CAC plunged over 4%. Britain's FTSE was down 1.39% and Germany's DAX tanked 2.98%. The Dow Jones futures fell 180 points.

2:35 pm.

Sensex fall more than 400 points on IIP numbers

The NSE is trading at 4,926 with a fall of -133.25 points or 2.63%. Meanwhile, Sensex fell by 2.45% or 412.98 points to 16,453.99 points.

Among the 30 stock comprising the sensex, the stock that gained the most was Hindustan Unilever 3.44% where as the stock that had lost the most from this index was Jindal Steel with 5.4%. There were two other stocks that fell more than 4% but less than 5% namely Tata Motors and Jaiprakash Associates.

Where as on the Nifty, the gainer was again Hindustan Unilever although the stock which was battered worst or the loser was HCL Technology, which fell 5.67%; followed by IDFC and JP Associates.

Meanwhile, KSOils was the most actively traded stock that fell by 1.36%.

The markets opened with a negative sentiments following the global trends. But the second round of selling started after IIP numbers were released. It is expected that the RBI will raise the interest rate at least one more time in order to quell inflation and this has sent chills down the investors spine.

12:45 p.m.

Sensex falls over 260 points on global cues

The major equity benchmarks of the Indian stock market nose-dived on the pre open trade following the global cues. As the news of Juergen Stark's resignation from the from the European Central Bank's executive board, the markets have taken it as a negative cue. Stark was against the ECB's purchase of bonds form debt-laden countries. Meanwhile according to early media reports, the new nomination from Germany is Jörg Asmussen, who had led the German response during 2008 crisis and he also negotiated the bailouts in Europe.

The 50-stock Nifty representing the NSE went below 5,0000 to 4,972.70 falling 86.75 points or 1.71%. Meanwhile, the 30-stock index, Sensex, representing the BSE fell 268.99 points or 1.59% to 16,597.98 levels.

Meanwhile on the sectoral front, all the sectors were treading in negative zone. The sector which had least fall was FMCG 0.09% and the sector which saw maximum fall was information technology (2.85%). The stocks were down on concern that the western countries can fall in to recession once again.

The CNX Midcap fell to 7,314, representing a fall of 98 points. About seven shares declined for every one share that gained. GTL was up by 3.5% and GTL Infra increased a mere 0.5%. Pipavav Shipyard increased by 2% and HPCL went up by 0.5% on fall in crude oil prices. Meanwhile Punj Lloyd, IVRCL, HDIL and Adani Power fell by 2-3.5%.

10:10 a.m.

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