Click to play videoMumbai: Markets continued to remain under pressure and have seen sharp cut in early trade following heavy sell off in the US markets on the back Lehman Brothers bankruptcy and the rumours that turmoil in US financial markets may not be over yet. Asian markets also crashed in line with US markets.
Rate sensitives, infrastructure, metal, telecom and technology stocks are down.
At 0956 hrs IST, the Sensex lost 419 points to 13,112 and the Nifty fell 147 points to 3,295. The SGX Nifty fell 3.01 per cent or 122 points to 3,928.
Wipro, ICICI Bank, Unitech, Reliance Infrastructure, Reliance Industries, HUL, ITC, ONGC, SBI, Cairn, HCL Technologies, Satyam, Sterlite Industries, Reliance Power, Power Grid, Tata Steel and SAIL have lost ground.
Sudarshan Sukhani says that the Nifty may not hold 3800 mark. He asked to preserve the capital and don't buy now.
Arnab Das, Head of Emerging Markets Research and Strategy, Dresdner Kleinwort Wasserstein, said global markets have been substantially re-priced.
"The turmoil in US financial markets may not be over yet. We need to see some bottom forming in the US housing markets and may see many more negative triggers. So, it is too early to take a trend call," Das said.
Sangeeta Purushottam, Head-Institutional Business, Religare Securities, said the markets may see an attempt to claw back but the worst is not over. "India will move in sync with global markets and will see more pain."
The Indian rupee continues its depreciation, it is currently trading above 46.4 to a dollar.
Purushottam feels equity markets will drive sentiment more than crude. The rupee depreciation is positive, she said. "One should watch out for cross currency fluctuations."
JPMorgan sees FY09 India IT dollar revenue hitting two-three per cent if US problems rise. It also sees four-five per cent hit on FY10 Indian IT dollar revenue if US issues mount. JPMorgan feels there is no change in FY09, FY10 rupee EPS outlook for IT companies.
Asian markets are extremely under selling pressure.
Nikkei fell 5 per cent, Hang Seng -5.36 per cent, Shanghai -3.16 per cent, Kospi -5.66 per cent, Taiwan Weighted -4.6 per cent, Jakarta -3.25 per cent and Straits Times -1.78 per cent.
Crude slipped further to $91.8 to a barrel on the NYMEX today, which had declined to seven-month low on demand concerns after Lehman's bankruptcy on Monday.
It was the financial storm on Wall Street, which overshadowed supply disruptions in the oil market. Crude declined $5.47 to settle at $95.71 on the NYMEX.
US stocks fell most since nine eleven, 2001 on Lehman's bankruptcy. Declining commodities increased speculation that the economic slowdown is likely to worsen.
The Dow plunged 504.48 points, or 4.42 per cent, to 10,917.51. The S&P 500 index lost 59 points, or 4.71 per cent, to 1,192.70 and the Nasdaq composite index slipped 81.36 points, or 3.60 per cent, to 2,179.9.
Market cues:
- Wall street sees biggest fall since Sep 11, 2001
- Crude declines to $93 on demand concerns
- Fed meet today, markets expect rate cut
- FIIs net sell $212.3 mn in equity on Sep 12: SEBI
- MFs net buy RS 210 crore in equity on Sep 12: SEBI
- NSE F&O Open Int down by Rs 2712 crore at Rs 82357 crore
F&O cues:
- Futures Open Int down by Rs 3973 crore, Options Open Int up by Rs 1261 crore
- Nifty futures shed 14 lakh shares in Open Int, at 20-point premium
- Nifty Open Int PCR at 0.87 vs 0.94
- Nifty Puts add 1 lakh shares, Calls add 31 lakh shares in Open Int
- Nifty 3900 Put adds 8 lakh shares, 4000 Put adds 7 lakh shares in Open Int
- Nifty 3800 Put adds 5.5 lakh shares in Open Int
- Nifty 4200 Put sheds 9 lakh shares, Nifty 4300 Put sheds 7 lakh shares in Open Int
- Nifty 4000 Call adds 11 lakh shares in Open Int, Nifty 4100 Call adds 9 lakh shares in Open Int
- Nifty 4200 Call adds 8.6 lakh shares in Open Int
- Stock futures shed 6 cr shares in Open Int
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