After two-day gaining streak, Nifty and Sensex ended the volatile session down on the back of weak rupee, global cues and poor Tata Motors' earnings. Nifty closed at 4,950.75, down 39.35 points or 0.79 percent. The index touched a high of 4,982.25 and a low of 4,944.90 in trade today. Sensex ended at 16,312.15, down 126.43 points or 0.77 percent. The index touched a high of 16,428.74 and a low of 16,295.31 in trade today.
US markets showed a substantial move downwards during the trading yesterday with renewed concerns about the financial situation in Europe contributing to the sharp pullback. Disappointing U.S. pending home sale data also contributed to the negative sentiment. The Dow Jones industrial average lost 160.83 points, or 1.28%, to 12,419.86. The S&P 500 Index dropped 19.10 points, or 1.43%, to 1,313.32. The Nasdaq Composite fell 33.63 points, or 1.17%, to 2,837.36.
Shares of Facebook Inc are up 43 cents to $29.27 in morning trading on Wednesday. That's still down about 23% from its IPO price of $38. Facebook began trading on the Nasdaq Stock Market on May 18.
Asian markets went sent lower today because of fears that Europe's debt crisis is morphing from Greece to engulf bigger economies such as Spain and Italy. The cost of insuring against a Spanish default scaled a record high near 600 basis points while Italy, which is also struggling with huge public debt, saw its 10-year yields top 6 percent for the first time since January. Japan's Nikkei 225 index was trading 1.8% lower at 8,475.75 and Hong Kong 's Hang Seng index was trading lower at 18,428.12, down 1.4%. South Korea's Kospi index was trading 1.2% lower at 1821.45. China's Shanghai index was trading at 2369, down 0.6%.
Indian markets also opened 1% lower today and are likely to be volatile ahead of F&O expiry today. Only around 18% of the stocks managed to trade in Green today. Sensex was down 153.91 points or 0.94% at 16158.24, and Nifty was down 44.65 points or 0.90% at 4906.10.
The rupee fell to a record low in opening trade on Thursday as risk aversion deepened over continued Euro zone worries, setting up expectations about potential intervention from the RBI.
At 9:00 a.m., the partially convertible rupee was at 56.47/50 per dollar, below its previous record low of 56.40 hit last week. The rupee closed at 56.23/24 yesterday.
Markets fell over 1.5% after Q4 GDP fell unexpectedly to 5.3%, the lowest level in three years. It was estimated to be at 6.1%.
Oil was down 0.24% at $87.61 per barrel. Gold was down 0.22% at $1,562.30 per ounce.
Other Economic and Political News:
- Govt. to restructure Rs.35,000cr loan of textiles sector
- Govt. to add seven quality control cells for food grains in 12th five year plan
- New Companies Bill likely to be passed in monsoon session: R P N Singh
- Morgan Stanley gets banking license from RBI
- Power Grid to raise up to Rs.100bn rupees in bonds
- TCS bags United Steel's SAP solutions agreement
Nifty and Sensex managed to finish yesterday in positive terrains after a volatile trading session during which the markets pared all gains. IT and realty stocks provided support to the markets thanks to global trends whereas FMCG stocks weighed on the markets. Market is expected to take further cues from India’s Q4 GDP number which scheduled to be released on coming Thursday ie on the day of May series expiry.
Nifty ended up 4.45 point today, to close at 4990.1. Sensex ended up 21.74 points, at 16,438.58.
US markets rose yesterday on signs that Greece would stay in Euro zone. However, Facebook Inc shares dropped below $29 to a new low on Tuesday as nervous investors fled the company's shares, concerned about the social network's long-term business prospects and an initial offering price that proved too rich. The Dow Jones industrial average rose 125.86 points, or 1.01%, to 12,580.69. The S&P 500 Index added 14.60 points, or 1.11%, to 1,332.42. The Nasdaq Composite gained 33.46 points, or 1.18%, to 2,870.99.
Asian shares opened lower today, on the back of growing fears that Spain's banking woes will push up the country's borrowing costs to unsustainable levels. However, the losses were controlled by the reports that Greece would stay in Euro zone and China's stimulus steps. Japan's Nikkei 225 index was trading 0.9% lower at 8,579.75 and Hong Kong 's Hang Seng index was trading lower at 18,698.12, down 1.8%. South Korea 's Kospi index was trading 1% lower at 1831.45. China 's Shanghai index was trading at 2384, down 0.2%.
Nifty and Sensex also decreased, following Asian peers and global risk aversion and rupee that opened weaker today, at 56.01/04 per dollar, weaker than its 55.66/67 close on Tuesday. Sensex opens 100 points down at 16399 and Nifty at 4950, down 31.20.
Auto and banking stocks are hit the worst today. Tata Motors, Mahindra, & Mahindra, Bajaj Auto, Hero MotoCorp, Apollo Tyres and Exide Industries are among the losers. From the banking space, Axis Bank, Indusind Bank, IDBI Bank, Bank of India, Canara Bank, Yes Bank, Union Bank and Punjab National Bank are the top losers.
Tata Motors is the top loser from the auto pack. The stock has plunged 8.2% to Rs 253 after reporting a 30 basis points decline in EBIDTA (earnings before interest, taxes, depreciation, and amortization) margin for Q4FY12 to 14.3%. The market expected a jump of over 100 basis points.
Aban Offshore, Anant Raj Inds, Colgate Palmolive, Jaiprakash Associates, DLF, Financial Technologies, Gail India, Godrej Inds, HDIL, Jindal Saw, Mahindra & Mahindra, Parsvnath Developers, PTC India, Rajesh Exports and Spicejet are among the many to announce their numbers today.
BHEL said that it has commissioned a 250 MW unit at Parichha Thermal Power Station in Uttar Pradesh. This would result in generation of 6mn units of electricity that would be supplied to the grid every day.
Ritesh Idnani, senior vice-president and chief operating officer of Infosys BPO arm, has resigned.
Other Economic and Political News:
Foreign retail investors can buy US$1bn Indian corporate debt: Govt.
High Govt. borrowing may crowd out private sector: RBI
Air India board refers Boeing compensation issue to Govt.
Jindal Steel's US$2.1bn project gets Bolivian boot
JSPL buys 10% in Gujarat NREs Oz unit
Bharat Forge to sell loss-making US unit
The markets gained around 1.25% yesterday as rupee strengthened against the dollar and on the back of positive cues from global bourses. For the third day in a row Nifty managed to hit higher high and higher low.
Oil minister S Jaipal Reddy informed reporters that the government was not considering hike in diesel, kerosene and domestic cooking gas at the moment. The minister made the announcement after a meeting called by finance minister Pranab Mukherjee to discus the influence of the fuel price raise on inflation. While the move is seen as an attempt to appease political parties, it is expected to increase the subvention charge. After this announcement the optimism decreased, however buying in consumer durable, banking and power stocks led the markets up again. Nifty ended up 65.25 point , to close at 4985.65. It touched an intraday high of 4,994.95 and a low of 4,931.30 . Sensex ended up 199.02 points, at 16,416.84. It touched an intraday high of 16,439.97 and a low of 16,273.49.
US markets were closed on Monday due to Memorial Day holiday.
Asian shares opened positve across most bourses today on the back of surge in Spanish borrowing costs that added to the worries over Euro zone debt challenge. The is also a speculation that China will do more to boost its economy. Japan's Nikkei 225 index was trading 0.4% lower at 8,559.75 and Hong Kong 's Hang Seng index was trading lower at 18,771.12, down 0.16%. South Korea's Kospi index was trading 0.6% higher at 1835.45. China's Shanghai index was trading at 2364, up 0.1%.
Nifty and Sensex continued the rally for the second trading day on the back of increased buying by funds and retail investors among covering up by short sellers. The Indian rupee opened at 55.36 per dollar versus 55.18 yesterday. However, the markets are likely to become volatile ahead of the GDP figures, scheduled to be announced Thursday, and the May series F&O expiry. Sensex was up 109.47 points or 0.67% at 16327.29, and the Nifty was up 32.55 points or 0.66% at 4952.95.
Buying was seen in auto, IT, capital goods and metal stocks while FMCG stocks were trading weak. The market sentiment was also boosted by global rating agency Moody’s comment that the sliding rupee will not impact India’s sovereign ratings.
ONGC, Tata Motors, Sun Pharma, SAIL, IPCA Labs, Nagarjuna Construction Company and Aurobindo Pharma are among companies presenting their results today.
Other Economic and Political News:
- Subbarao indicates more interventions over Rs. Slide
- No plan to raise prices of diesel, LPG or kerosene: Government
- Assocham asks government to reduce taxes on petrol, diesel
- RBI eases banks' term deposit foreclosure restrictions
- Exposure limits of banks in gold loan NBFCs cut
- EGoM meet on June 5 for fixing spectrum base price
- OIL in talks to buy 51% stake in Reliance Gas Transportation
- Tata Motors signs distribution agreement in Myanmar
- Jindal Steel buys 10% stake in Gujarat NRE's Aussie subsidiary