Indian equities markets today closed lower amid intense selling across sectors.
The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,708.62 points, closed at 18,427.57 points, down 256.86 points or 1.38 percent from its previous close at 18,684.43 points.
The 50-scrip S&P CNX Nifty of the National Stock Exchange also ended 1.38 percent lower at 5,526.8 points.
Broader markets, too, ended lower with the BSE midcap index ending down 2.42 percent and the BSE smallcap index closing 3.34 percent lower.
All the 13 sectoral indices on the BSE closed in the red, with realty, auto and consumer durables scrips faring the worst.
Friday, January 28, 2011
Thursday, January 27, 2011
BSE Sensex at 4-½-month closing low; banks drop
The BSE Sensex fell 1.5 percent today to its lowest close in four-and-a-half months as rising borrowing costs dampened the outlook for companies, while improved prospects elsewhere lured foreign funds away.
Financials led the decline weighed down by expectations for another rate increase in the next two months after the Reserve Bank of India (RBI) raised rates on Tuesday for the seventh time in a year to cool inflation pressures.
Foreign institutional investors, which had been the mainstay of the market in 2010, have pulled out $849 million so far in January and the benchmark index is poised to post its biggest monthly fall in more than two years.
Top utility vehicle maker Mahindra & Mahindra dropped 4.9 percent, its biggest single-day fall in more than eight months, after Goldman Sachs downgraded the stock to "sell" from "buy", saying it has historically moved in line with the demand cycle, and looks likely to correct with moderation in demand growth.
The 30-share BSE index shed 285.02 points to 18,684.43, its lowest close since Sept. 8, 2010. Twenty-eight of its components ended in the red.
In the broader market, almost two shares declined for every share that advanced on relatively low volume of 249 million shares.
The 50-share Nifty or NSE index shed 1.5 percent and closed below its 200-day moving average at 5,604.30 points.
"It was a follow-up to what happened on Tuesday. After the RBI's 25 basis point hike, people expect more to come," said Neeraj Dewan, director of Quantum Securities.
The BSE benchmark is down nearly 9 percent this month, which if maintained till the end of January would make it the biggest monthly fall since October 2008.
In 2010, the index had gained 17.4 percent on the back of record foreign fund investment of $29.3 billion.
While India's central bank has been tightening policy, the U.S. Federal Reserve said on Wednesday it was in no rush to cut short its rescue of the U.S. economy, saying high unemployment still justified its $600 billion bond-buying plan even though the economy has shown some signs of improvement.
Analysts expect an improving U.S. economy will draw more investors away from emerging markets such as India.
"It is going to be a continued flow of funds into North America as people are rebalancing from emerging markets into North American equities," John Studzinski, senior Blackstone managing director, told Reuters Insider at Davos in Switzerland, on Wednesday.
The MSCI's emerging markets stock index is down 0.7 percent in 2011, while the Dow Jones industrial average has firmed 3.5 percent in the period.
Leading lenders State Bank of India and ICICI Bank dropped nearly 1 percent and 2.1 percent respectively.
HDFC Bank closed 1.7 percent lower, ahead of results that showed Decmber quarter net profit rose a third from year ago.
Sterlite Industries tumbled 5.3 percent after an arbitration panel ruled against the non-ferrous metal producer's call option to buy the remaining 49 percent in Bharat Aluminium Co.
Outsourcers Infosys Technologies and Wipro fell 1.8 percent and 1.6 percent respectively, while sector leader Tata Consultancy Services rose 0.6 percent higher.
World stocks as measured by MSCI and emerging markets index were up 0.1 percent each by 1037 GMT.
STOCKS THAT MOVED
* Atlas Copco jumped 13.9 percent to 2,129.65 rupees after the industrial and construction equipment maker raised its offer price to delist the company from the Indian bourses to 2,250 rupees from 1,426 rupees.
* JSW Steel slid 5 percent to 965.60 rupees, as the No. 3 Indian steelmaker said its October-December net profit fell by 32 percent.
* SpiceJet fell 7.4 percent to 68.70 rupees after the carrier reported a 14 percent decline in quarterly profit.
* Media firm UTV Software Communications firmed 2 percent to 533.95 rupees after its third-quarter profit rose 6 percent, as the gaming and television businesses boosted revenue.
* Personal care products maker Marico gained 2.5 percent to 127.65 rupees after it posted a forecast-beating 12 percent jump in December-quarter net profit as volume growth steered earnings.
MAIN TOP THREE BY VOLUME
* Midvalley Entertainment on 33.9 million shares
* C Mahendra on nearly 7 million shares
* Ispat Industries on 5.1 million shares
Financials led the decline weighed down by expectations for another rate increase in the next two months after the Reserve Bank of India (RBI) raised rates on Tuesday for the seventh time in a year to cool inflation pressures.
Foreign institutional investors, which had been the mainstay of the market in 2010, have pulled out $849 million so far in January and the benchmark index is poised to post its biggest monthly fall in more than two years.
Top utility vehicle maker Mahindra & Mahindra dropped 4.9 percent, its biggest single-day fall in more than eight months, after Goldman Sachs downgraded the stock to "sell" from "buy", saying it has historically moved in line with the demand cycle, and looks likely to correct with moderation in demand growth.
The 30-share BSE index shed 285.02 points to 18,684.43, its lowest close since Sept. 8, 2010. Twenty-eight of its components ended in the red.
In the broader market, almost two shares declined for every share that advanced on relatively low volume of 249 million shares.
The 50-share Nifty or NSE index shed 1.5 percent and closed below its 200-day moving average at 5,604.30 points.
"It was a follow-up to what happened on Tuesday. After the RBI's 25 basis point hike, people expect more to come," said Neeraj Dewan, director of Quantum Securities.
The BSE benchmark is down nearly 9 percent this month, which if maintained till the end of January would make it the biggest monthly fall since October 2008.
In 2010, the index had gained 17.4 percent on the back of record foreign fund investment of $29.3 billion.
While India's central bank has been tightening policy, the U.S. Federal Reserve said on Wednesday it was in no rush to cut short its rescue of the U.S. economy, saying high unemployment still justified its $600 billion bond-buying plan even though the economy has shown some signs of improvement.
Analysts expect an improving U.S. economy will draw more investors away from emerging markets such as India.
"It is going to be a continued flow of funds into North America as people are rebalancing from emerging markets into North American equities," John Studzinski, senior Blackstone managing director, told Reuters Insider at Davos in Switzerland, on Wednesday.
The MSCI's emerging markets stock index is down 0.7 percent in 2011, while the Dow Jones industrial average has firmed 3.5 percent in the period.
Leading lenders State Bank of India and ICICI Bank dropped nearly 1 percent and 2.1 percent respectively.
HDFC Bank closed 1.7 percent lower, ahead of results that showed Decmber quarter net profit rose a third from year ago.
Sterlite Industries tumbled 5.3 percent after an arbitration panel ruled against the non-ferrous metal producer's call option to buy the remaining 49 percent in Bharat Aluminium Co.
Outsourcers Infosys Technologies and Wipro fell 1.8 percent and 1.6 percent respectively, while sector leader Tata Consultancy Services rose 0.6 percent higher.
World stocks as measured by MSCI and emerging markets index were up 0.1 percent each by 1037 GMT.
STOCKS THAT MOVED
* Atlas Copco jumped 13.9 percent to 2,129.65 rupees after the industrial and construction equipment maker raised its offer price to delist the company from the Indian bourses to 2,250 rupees from 1,426 rupees.
* JSW Steel slid 5 percent to 965.60 rupees, as the No. 3 Indian steelmaker said its October-December net profit fell by 32 percent.
* SpiceJet fell 7.4 percent to 68.70 rupees after the carrier reported a 14 percent decline in quarterly profit.
* Media firm UTV Software Communications firmed 2 percent to 533.95 rupees after its third-quarter profit rose 6 percent, as the gaming and television businesses boosted revenue.
* Personal care products maker Marico gained 2.5 percent to 127.65 rupees after it posted a forecast-beating 12 percent jump in December-quarter net profit as volume growth steered earnings.
MAIN TOP THREE BY VOLUME
* Midvalley Entertainment on 33.9 million shares
* C Mahendra on nearly 7 million shares
* Ispat Industries on 5.1 million shares
Sunday, January 23, 2011
News briefs...
* India tops global consumer confidence survey - Nielsen Reuters
* UBS upbeat on China, MidEast, warming to Europe - Reuters
* Inflation fears drive Asia stock reallocation, but not exit - Reuters
* UBS upbeat on China, MidEast, warming to Europe - Reuters
* Inflation fears drive Asia stock reallocation, but not exit - Reuters
Saturday, January 22, 2011
Asian stocks posted their worst weekly performance in nearly two months
Asian stocks posted their worst weekly performance in nearly two months as rising inflation within the region increased the risks of aggressive policy action and hurt growth in the world's engines such as China and India.
Investors have been reluctant to add positions in emerging market stocks and bonds so far this year after record inflows in 2010 due to concerns that policy inertia may put growth-focused authorities behind the curve in fighting price pressures.
Foreigners have rotated funds out of high inflation risk economies such as Indonesia and into developed markets such as Japan this year and inflows into emerging market local currency bond funds, a favorite last year, have slowed considerably.
Sunday, January 16, 2011
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