Mumbai: Equities plunged and the rupee hit a fresh record low as markets globally felt the tremors of the political upheaval in Greece. The 30-share Sensex fell to 15,974.60 " its lowest level in four months "before closing at 16030.09, down 298.16 points or 1.83 per cent over the previous close. The Nifty closed at 4,858.25, down 84.55 points or 1.71 per cent after hitting a four-month low of 4,837.05 intraday.
Auto, metal, capital goods and banking shares were the worst performing sectors, with stocks like Tata Motors, JSW Steel, Steel Authority of India and Tata Steel figuring among the big losers.
In the currency market, the rupee hit a new low of 54.46 to the dollar, raising fears of more foreign investors cutting exposure to Indian shares. When the rupee weakens to the dollar, the value of a share portfolio in dollar terms decreases, as you need more rupees while converting them into dollars.
In April, foreign funds net sold close to Rs 1865.60 crore, but in May so far, they have net bought Rs 451 crore of shares. Foreign portfolio inflows have slowed down considerably since the Union Budget mid-March as the government is looking to crackdown on investments through tax havens designed solely to evade tax.
And while global factors have been the main reason for the slide over the last week, widening fiscal deficit and a slowing economy has most investors wary of putting money here. Industrial output has been falling, but inflation continues to remain high, thereby holding the RBI back from cutting interest rates. Finance minister Pranab Mukherjee on Wednesday said in the Rajya Sabha that the India story was intact, but not many global investors may be willing to buy that argument. Many foreign brokerages have said that the Indian stocks are at risk of being ‘de-rated’, which means that foreign investors may not be willing to pay premium valuations for Indian shares, as has been the case till now. Last month, rating agency Standard & Poor’s lowered its outlook on India’s long term debt ratings and warned there was a 33 per cent possibility of sovereign ratings being downgraded.
At 14:50 hours IST: Sensex, Nifty, Rupee pare losses; BPCL surges nearly 5 per cent
The BSE Sensex and NSE Nifty pared some losses due to buying interest in beaten down stocks at lower levels. Even the Indian rupee recovered to 54.27 from all-time low of 54.44 a dollar, down 48 paise as compared to previous close of 53.78 a dollar.
The BSE benchmark dropped 263.94 points or 1.62 per cent to 16,064.31 after showing recovery of 90 points from day's low of 15,974.60. Meanwhile, the NSE benchmark was down 77.20 points or 1.56 per cent to 4,865.60.
European markets too saw some pullback - Germany's DAX and Britain's FTSE fell close to 1 per cent while France's CAC was down just 0.15 per cent. April jobless claims went down 13,700 as against forecast of more than 4,500 that helped markets recover.
Housing finance company HDFC, country's largest private sector lender ICICI Bank and state-owned capital goods major BHEL were down 3-3.5 per cent.
Tata Motors, India's largest commercial vehicle maker retained its top position in the selling list, with falling 7 per cent after disappointing global sales data for April.
Shares of Infosys, ITC, State Bank of India, Larsen & Toubro, Bharti Airtel, Coal India, NTPC and Tata Power dropped around 1.5 per cent.
JSW Steel crashed nearly 5 per cent as CNBC-TV18 reported quoting sources that CBI raided the offices of the company and South West Mining Company in Bellary district.
However, Sterlite Industries, Cairn India, Kotak Mahindra Bank, Power Grid and Bank of Baroda gained 1-2 per cent.
State-owned oil marketing company BPCL shot up nearly 5 per cent after BPRL announced extension of exploration success with new discovery area in offshore Mozambique.
At 13:14 hours IST: Sensex, Nifty tumble 2 per cent; European mkts too under pressure
The BSE Sensex dropped 350 points due to Greek political uncertainty and sharp depreciation in rupee. Even European markets like Germany's DAX and Britain's FTSE lost 1.5 per cent each while France's CAC was down over 1 per cent.
Efforts to form a new government in Greece collapsed on Tuesday. Greek political leaders will meet on Wednesday to form a caretaker government that will lead the country into its second election in just over a month.
The BSE benchmark fell 351.11 points or 2.15 per cent to 15,977.14 and the NSE benchmark was down 103.85 points or 2.10 per cent to 4,838.95. The Indian rupee declined 64.5 paise to hit an all-time low of 54.44 a dollar.
Educomp Solutions, TVS Motor, DHFL, Kingfisher, BHEL and Sintex Industries hit a 52-week low on Wednesday, which were down 2-6 per cent.
Housing finance company HDFC and country's largest private sector lender ICICI Bank crashed over 4 per cent. Tata Motors, top commercial vehicle maker in India, tumbled 7.4 per cent.
Top lender State Bank of India slipped nearly 3 per cent while rival HDFC Bank was down close to 2 per cent. State-owned BHEL tanked 5 per cent whereas engineering and construction major by sales Larsen & Toubro lost 1.5 per cent.
Hindalco Industries, Tata Steel, Maruti Suzuki, Bajaj Auto, Jindal Steel, Infosys and Tata Power declined 2-4 per cent.
However, BPCL and Bank of Baroda stayed higher since early trade, rising 4 per cent and 2 per cent, respectively.
At 12:13 hours IST: Sensex tests 16000, down 344 pts; Rupee at all-time low
The BSE Sensex and NSE Nifty crashed 2 per cent each in afternoon trade due to Indian rupee hit all-time low of 54.32 a dollar on Wednesday. Even about 1 per cent fall in CAC, DAX and FTSE futures were indicating negative opening for European markets as experts raised doubts over existence of Greece in Eurozone.
The BSE benchmark has broken the 16000 level for the first time since January 12, 2012, losing 343.68 points or 2.10 per cent to 15,984.57. Meanwhile, the NSE benchmark was down 100.15 points or 2.03 per cent to 4,842.65.
John Paul-Smith of Deutsche Bank feels that the deteriorating political situation in Europe is a negative development for global markets.
According to Paul-Smith, exit of Greece from the euro would be hazardous, so it should try and remain in the euro itself. Given the political turmoil Europe, he expects the euro to weaken further.
Nifty 4900 Call added 15.40 lakh shares in open interest (OI) while 4500 Put added 10.22 lakh shares in OI. Nifty 5000 Call added 8 lakh shares in OI whereas 4600 Put added 7.7 lakh shares in OI.
All sectoral indices were taking beating - the BSE Auto, Metal, Power, Bank, Realty and Capital Goods indices were down 2-3.4 per cent.
Top commercial vehicle maker Tata Motors tanked 7 per cent due to disappointing global sales data for April. Housing finance company HDFC tumbled 5 per cent.
Country's largest private sector lender ICICI Bank was down over 3.5 per cent while rivals State Bank of India and HDFC Bank plummeted 2-2.6 per cent.
State-owned capital goods major Bharat Heavy Electricals lost over 4 per cent. Index heavyweights Infosys, Reliance Industries, ITC and Larsen & Toubro were down 1-1.8 per cent.
However, shares of BPCL, Bank of Baroda, Cairn India and GAIL outperformed other largecaps, rising 1-3 per cent.
The BSE Midcap and Smallcap indices did not fall as much as benchmarks - they were down 1.3 per cent each. About four shares declined for every share gaining on the National Stock Exchange.
At 11:10 hours IST: Sensex, Nifty fall 1.7 per cent; BPCL, Cairn, BoB outperform
The BSE Sensex and NSE Nifty fell 1.7 per cent each due to consistent sell-off in major sectors like banks & financials, auto, metals and FMCG stocks. Housing finance company HDFC tumbled nearly 5 per cent while top commercial vehicle maker Tata Motors plunged over 6 per cent due to dismal performance in April's sales numbers.
The BSE benchmark plummeted 281.66 points or 1.72 per cent to 16,046.59 and the NSE benchmark went down 83.90 points or 1.70 per cent to 4,858.90. The Indian rupee was trading at 54.19 a dollar, down 40 paise as compared to previous close of 53.78 a dollar.
Sudarshan Sukhani of s2analytics.com says that the relief rally for the market has come and gone in the past two days. “The original trend, which is the downtrend is asserting itself,” he said. On Tuesday the market snapped five-day losing streak, but that could not continue in Wednesday's trend.
Index majors ICICI Bank, HDFC Bank, Infosys, ITC, State Bank of India, HUL and BHEL were down 1-3 per cent.
Among metals and mining stocks, Tata Steel, Jindal Steel, Sterlite Industries, Hindalco, Coal India and SAIL tumbled 1.5-2.5 per cent.
Index heavyweight and oil & gas producer Reliance Industries fell 1 per cent while rival ONGC gained 0.7 per cent. Cairn India shot up 2.5 per cent on the back of addition in Global Standard Index by MSCI. GAIL too gained 1 per cent and BPCL shot up 3 per cent, topping the buying list on NSE Nifty as BPRL announced extension of exploration success with new discovery area in offshore Mozambique.
Bank of Baroda surged over 2 per cent and Godrej Consumer rallied 6 per cent due to addition by MSCI in its Global Standard Index whereas Suzlon tanked 4 per cent on exclusion by MSCI from its same index.
MSCI added Corporation Bank (up nearly 1 per cent), ILandFS Transportation Networks (up 5 per cent), Indiabulls Power (up 8 per cent), MOIL (up 1 per cent) and Page Industries (up 0.7 per cent) in its Small Cap Index.
About three shares declined for every share rising on the National Stock Exchange.
In the second line shares, Shriram City, ILandFS Transport, Jain Irrigation, Muthoot Finance and HT Media rallied 3-7 per cent while Tulip Telecom (post results), Dewan Housing, Sintex Industries, Bombay Dyeing and HDIL lost 4-5 per cent.
At 9:51 hours IST: Sensex tanks 300 pts; Tata Motors loses 6 per cent, banks nosedive
The BSE Sensex extended losses, falling close to 300 points due to consistent downtrend across the board. Asian markets too slipped further following political tensions in Greece, wherein re-election will take place around mid-June. Hang Seng crashed 2.66 per cent and Kospi tumbled 2 per cent. Straits Times, Taiwan and Nikkei were down 1.4 per cent while Shanghai declined 0.44 per cent.
Back home, the BSE benchmark tanked 297.26 points or 1.82 per cent to 16,030.99 due to fall in 28 components. Meanwhile, the NSE benchmark lost 87.45 points or 1.77 per cent to 4,855.35. The broader markets slipped 1 per cent.
Due to the volatile environment around the globe and in India, Dilip Bhat of Prabhudas Lilladher expects the Nifty to fall to 4500 levels by December.
Shares of Tata Motors, country's largest commercial vehicle plummeted 6 per cent on the back of disappointing sales in April. Top car maker Maruti Suzuki lost 3.5 per cent whereas Hero Motocorp, M&M and Bajaj Auto dropped 1-2 per cent.
Country's largest private sector lenders ICICI Bank and HDFC Bank were down 3 per cent and 2 per cent, respectively while rival State Bank of India tumbled 1.6 per cent. Housing finance company HDFC too crashed 3 per cent.
Capital goods majors Larsen & Toubro and BHEL were down 2-3 per cent. FMCG majors ITC and HUL fell 1-1.7 per cent.
However, software services exporters Tata Consultancy Services and Wipro gained over 0.5 per cent due to falling in rupee. Indian rupee depreciated by 39 paise to 54.18 a dollar.
At 9:20 hours IST: Sensex, Nifty open 1.5 per cent lower on Greece woes; Re @ 54.17/$
The BSE Sensex and NSE Nifty started of trade with 1.5 per cent gap down on Wednesday following endless worries in Greece and further depreciation in rupee. The Indian rupee was trading at 54.17 a dollar, down 39 paise from previous close of 53.78 a dollar.
Greece headed for re-election that schedule to be held in mid-June. Caretaker government will be established on Wednesday. Greece concerns overshadowed better than expected economic data of eurozone.
The BSE benchmark tanked 245.24 points or 1.5 per cent to 16,083 led by 27 components. Meanwhile, the NSE benchmark was down 72.65 points or 1.47 per cent to 4,870.15.
Tata Motors tanked 5.5 per cent as its global sales of commercial vehicles went down 8 per cent year-on-year to 38,008 units in April. Tata Motors DVR too lost over 5 per cent.
Sterlite, Hindalco, Sesa Goa, Tata Steel, JP Associates, Reliance Infrastructure, Axis Bank, ICICI Bank, HDFC Bank, SBI, DLF, Maruti Suzuki, BHEL and HDFC were down 1-3 per cent in early trade.
However, BPCL gained 1.7 per cent. Cairn India rose 1.3 per cent on addition in MSCI Global Standard Index. TCS, Wipro and Bank of Baroda gained marginally.
The CNX Midcap Index fell 76 points to 6,885. About four shares declined for every share rising on the National Stock Exchange.
In the second line shares, Pantaloon Retail, Cox & Kings and Aditya Birla Nuvo were down over 4 per cent on disappointing numbers in January-March quarter.
Orchid Chemical continued to fall for third consecutive session on Wednesday, losing 3 per cent. In three days, it tanked over 25 per cent.
Suzlon Energy dropped 3 per cent on exclusion from MSCI Global Standard Index.
IRB Infrastructure and HDIL fell 3.5-4 per cent.
However, Piramal Healthcare rose over 1 per cent as CNBC-TV18 reported quoting sources that company will announce strategic acquisition on Wednesday.
Firstsource Solutions shot up 6 per cent and Muthoot Finance was up 4 per cent post good performance in Q4 results.