Click to play videoMumbai: Markets have seen smart pullback but are still trading lower. Short covering is seen in Bharti Airtel, HDFC, Reliance Communication, SBI, ICICI Bank, DLF, NTPC, PNB, Satyam, Unitech, Wipro, Tata Steel and Sterlite Industries. However, selling continues in TCS, Reliance Industries, ONGC, L&T, BHEL, Infosys, Tata Motors and Suzlon Energy.
The Nifty lost 16 points to 3,322 and the Sensex fell 57 points to 10,752, at 1452 hrs IST. Both indices have recovered over 650 points and 180 points, respectively. BSE Midcap and Small cap tumbled 2-3 per cent.
Market breadth has improved a lot but still weak; about 381 shares have advanced while 872 shares declined.
On the global front, European markets are down 2-3.5 per cent. However, Dow Jones and Nasdaq Futures rose over 1.3 per cent.
Markets @ 1410 hsr IST : Nifty above 3250; telecom, metal, bank, realty stks up
Benchmark indices have recovered smartly and are trading off day's low. Gainers are Reliance Communication, HDFC, Sterlite Industries, PNB, Tata Steel, Bharti Airtel, ABB, SBI, Unitech, SAIL, DLF and ITC, which are up 2-8 per cent. The Sensex recovered over 600 points and the Nifty 175 points from day's low of 10,017.80 and 3099.90, respectively.
The Sensex fell 151 points to 10,657 and the Nifty lost 51 points to 3,287, at 2:10 pm. BSE Midcap Index went down 2.3 per cent and Small Cap Index fell 3.3 per cent.
Buying is seen in telecom, realty, metal, FMCG and banking stocks. However, oil, capital goods, auto, technology and power stocks are still under pressure.
Breadth is weak; about 849 shares have advanced while 2135 shares have declined. Nearly 203 shares are unchanged.
Finance Ministry sources expect banks to reduce loan rates on CRR cut, reports CNBC-TV18 quoting NewsWire18.
First trade
The market opened in the red and at 0958 hrs IST, the Sensex fell 613 points to 10,195 and the Nifty lost 178 points to 3,159. CNX Midcap tumbled 4.6 per cent to 3,818.
L&T, Hindalco, Suzlon Energy, Reliance Industries, Sterlite Inds, HCL Tech, Reliance Infrastructure, Wipro, TCS, Infosys, Unitech, Reliance Communication, ONGC and ICICI Bank have smashed out.
BSE Realty, Metal, Capital Goods, IT, TECK, Oil & Gas, Power indices are down 6-7 per cent. Bankex, FMCG, Healthcare and Auto indices fell 4-5 per cent.
This free fall is despite RBI's move of 100 bps CRR cut to 6.5 per cent on Wednesday evening to increase liquidity in banking system due to which, Call Rate declined to 6.5-7 per cent from 9.75-10.25 per cent on Wednesday. RBI had already cut CRR by 150 bps last week.
Asian markets also shattered in line with US markets. Nikkei fell 9 per cent. Hang Seng, Straits Times and Kospi dropped 6.5-8.5 per cent. Shanghai fell 3.7 per cent, Taiwan -3.3 per cent and Jakarta -4.09 per cent.
Crude has fallen 5 per cent on economic worries and OPEC update. It is trading around USD 73 to a barrel. OPEC has cut demand forecasts after IEA, EIA. OPEC has revised 2009 demand for OPEC crude by 190000 bpd to 31.14bpd.
OPEC said that the forecast based on world economic growth is slowing to 3.8 per cent this year and 3.3 per cent in 2009.
Base metals also crashed. Copper has declined 5.5 per cent. Nickel, Zinc and Lead fell 6-7.5 per cent. Commodity Freight rates are at 5-year lows. Baltic Dry index fell 11 per cent.
US markets plunged the most since the crash of 1987, as disappointing retail sales data and credit concerns renewed economic fears. Specifically, the S&P 500 plunged 9 per cent, settling near session lows & the Dow closed below the 9000 mark.
Consumers continue to curtail spending in the face of economic headwinds. Retail sales in September tumbled 1.2 per cent month-over-month, the third consecutive monthly drop and largest decline in three years.
The Dow tumbled 733.08 points, or 7.87 per cent, at 8,577.91. The S&P 500 index lost 90.17 points, or 9.03 per cent, to 907.84, and the Nasdaq composite index declined 150.68 points, or 8.47 per cent, to 1,628.33.
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