Post Session- Sensex trims losses at close, global stock sell-off weighs Analysis for Jun 22, 2012

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Falling crude oil prices shielded Indian equities today from some of the severe battering received by global stock markets which plunged as investors shunned risky assets amid the fast deteriorating health of the global economy.

Sensex, which slumped by 166 points earlier amid a record low rupee and a global stock-market sell-off, recovered some lost ground in later trade after crude oil prices fell to an 18-month low, helping the stocks of companies such as ONGC, which ended up as the top gainer. India being a net importer of crude oil, falling crude oil prices will be a boon for the economy and may help lower inflation.

Markit sentiment remained bearish as the Sensex which opened lower amid weak global cues, extended losses and slumped deep into negative terrain as the rupee hit a record low of 57 against the greenback and global stock markets fell as investors shunned risky assets as a manufacturing slump from Europe to the US and China signaled a gloomy outlook for the global economy. Moody"s downgraded the top 15 global banks, adding to the gloom plaguing the world economy. A smart recovery in the last few hours saw the Sensex pare a huge chunk of its earlier losses.

The BSE SENSEX closed at 16,972.51, down by 60.05 points or by 0.35 per cent and the NSE Nifty ended at 5,146.05, down by 18.95 points or by 0.37 per cent.

The BSE MIDCAP closed at 6,010.21, up by 7.73 points or by 0.13 per cent, while the BSE SMLCAP ended at 6,407.5, up by 2.42 points or by 0.04 per cent.

Meanwhile, the BSE Sensex touched intraday high of 17,016.06 and intraday low of 16,807.8 The NSE Nifty touched intraday high of 5,159.8 and intraday low of 5,094.

On the Sectoral front, Metal and Capital Goods shed 1.48 per cent and 0.63 per cent, respectively.

Out of the 30 Sensex stocks, there were 14 advances and 16 declines. The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3554, shares advanced were 1390 while 1412 shares declined and 752 were unchanged.

The top losers of the BSE Sensex pack were Hindalco Industries Ltd. (Rs. 117.25,-3.34%), Tata Steel Ltd. (Rs. 418.65,-2.70%), Jindal Steel & Power Ltd. (Rs. 432.00,-1.63%), Coal India Ltd. (Rs. 337.60,-1.24%), Housing Development Finance Corporation Ltd. (Rs. 640.00,-1.19%), among others.

Asian markets fell on Friday as Shanghai Composite and Hang Seng shed 1.40 per cent each, and Nikkei 225 closed down 0.29 per cent.

European stocks were in negative terrain as CAC 40 was down 0.56 per cent, DAX was down 0.58 per cent and FTSE 100 was trading lower by 0.77 per cent at 16:51 PM IST.

Story first published: Friday, June 22, 2012, 18:20 [IST]
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