Post Session- Growing global economic gloom looms large on markets Analysis for Jul 09, 2012

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Bogged down by a weak trend in Asian and European markets, the key domestic benchmarks tanked more than 125 points today as investors worldwide worried over the fast fading fortunes of the global economy. Disappointing US jobs report and fears of slowing growth in China dampened sentiment, while waning overseas demand threatened to derail Japan"s economic recovery. Meanwhile, investors were cautious ahead of the meeting of the Eurozone finance chiefs later today to discuss the implementation of the promises made by EU leaders at the Brussels summit. On the domestic front, investors were cautious ahead of the IIP and inflation numbers due later this week, that are expected to determine the course of the RBI action over the near-term.

The Sensex, which opened lower today, extended losses and fell deeper into the negative terrain amid weak Asian cues. With European markets also trading weak, the Sensex failed to spark a rebound and ended the day with significant losses.

The BSE SENSEX closed at 17,391.98, down by 129.14 points or by 0.74 per cent and the NSE Nifty ended at 5,275.15, down by 41.8 points or by 0.79 per cent.

The BSE Sensex touched intraday high of 17,485.79 and intraday low of 17,343.55.The NSE Nifty touched intraday high of 5,300.6 and intraday low of 5,257.75.

Meanwhile, the BSE MIDCAP closed at 6,238.19, down by 75.71 points or by 1.20 per cent while the BSE SMLCAP ended at 6,750.33, down by 72.19 points or by 1.06 per cent.

On the Sectoral front, Metal and Power lost 1.55 per cent and 1.54 per cent respectively.

The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3576, shares advanced were 1118 while 1785 shares declined and 673 were unchanged.

The top losers of the BSE Sensex pack were Hero MotoCorp Ltd. (Rs. 2030.00,-2.62%), Jindal Steel & Power Ltd. (Rs. 443.50,-2.56%), Tata Steel Ltd. (Rs. 437.05,-2.32%), Bajaj Auto Ltd. (Rs. 1504.15,-2.30%), Maruti Suzuki India Ltd. (Rs. 1189.00,-2.28%), among others.

Asian stocks tumbled as the US economy added 80,000 jobs in June 2012, less than the estimated 1,00,000 gain while the jobless rate remained at an elevated 8.2 per cent, signaling a deepening slowdown in the world"s largest economy, dimming the outlook for Asian exporters. Chinese Premier Wen Jiabao said that China's economy continued to face large downward pressure. Japan"s machinery orders, a proxy for capital spending, fell 14.8 per cent in May 2012 from the previous month as demand weakened, signaling a gloomy outlook for the world"s third largest economy. Shanghai Composite ended down 2.37 per cent, Hang Seng shed 1.88 per cent and Nikkei 225 closed down 1.37 per cent today.

Among the European stock markets, CAC 40 was down 0.45 per cent, DAX was down 0.28 per cent and FTSE 100 was trading lower by 0.26 per cent at 16:42 PM IST.

Story first published: Monday, July 9, 2012, 18:20 [IST]
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