Sensex continues to lurk below 16,000 psychological level; Oil & Gas stocks depict audacity

If not near the low point of the day, than barometer gauges continued to stagger under intense selling pressure, in the backdrop of global risk-averse environment, which prompted investors to increasingly book profits, progressing faster towards the close of the session. Although the butchery for D-street dwindled, but the sentiments continued to remain feeble, after 30 scrip sensitive index, Sensex, on BSE breached the 16,000 bastion after Indian currency stroke a record low past 52.40 per US dollar, in wake of massive intervention of RBI in previous trading session.

Dismal opening of European shares, also added to the underlying weakness for Indian equity markets, which saw the widely followed 50 share index, tottering below the 4,900 bastion, with nasty laceration of over a percentage and half points. However, broader indices, if not alluring weakness, sustained losses. On the BSE sectoral front, Oil & Gas stocks continued to depict audacity, while stocks from Auto, Consumer Durable and Metal counters endorsed weakness.

On the global front, European shares opened lower on Wednesday as investors grapple with the possibility of a Greek exit from the euro zone and the implications this would have for other 'peripheral' members. Meanwhile, most Asian equity markets stocks also ended in disaster.

The BSE Sensex is currently trading at 16,035.30, down by 292.95 points or 1.79% after trading as high as 16,132.68 and as low as 15,974.60. There were 3 stocks advancing against 27 declines on the index. The overall market breadth remained in the favour of declines, which piped advances in the ratio of 1791:798, while 106 shares remained unchanged.

The broader indices too retreated from lows; the BSE Mid cap index sank 0.82% and Small cap index slipped 1.28%.

On the BSE sectoral space, Oil & Gas up 0.05% was the sole gainer, while Auto down 3.05%, Consumer Durables down 2.41% Metal down 2.35%, Bankex down 1.97%, and Capital Goods down 1.71% were the major laggards in the space.

Sterlite Industries up by 0.72%, Gail India up 0.60%, TCS up 0.20% were the only gainers on the Sensex, while Tata Motors down 6.91%, HDFC down 3.91%, Tata Steel down 3.85%, BHEL down 3.62% and ICICI Bank down 3.58% were the major losers in the index.

Meanwhile, giving in to the pressure from the US, India has decided to cut down its oil exports by 11% from Iran. The decision was conveyed by the minister of state for petroleum R P N Singh in a written reply to the Parliament. The decision has come in after the US emissary arrived in India to help it wean off imports from Iran.

India, which currently imports about 12% of its total oil imports from Iran, had so far refrained from reducing its imports on grounds that Iranian oil is essential for the country’s energy requirements and would be difficult to replace. However the US government is not too happy with the decision and the US secretary of State Hillary Clinton in her visit to the country last week had pressed on India to do more.

India imported 18.5 million tons and 17.44 million tons from Iran in 2010-11 and 2011-12 respectively. It has now targeted to bring it down to 15.5 million tons in 2012-13. The country has also been looking at diversifying its oil imports to meet its energy requirements. Currently it imports oil from 30 different countries.

India and China are Iran’s biggest importers of oil. The US has granted waivers to Japan and 10 European countries that import oil from Iran but has left India and China. It is of the opinion that India needs to do more in terms of reducing its dependence on Iran to win waivers.

The S&P CNX Nifty is currently trading at 4,856.55, lower by 86.25 points or 1.74% after trading as high as 4,882.25 and as low as 4,837.05. There were 9 stocks advancing against 41 declines on the index.

The top gainers on the Nifty were BPCL up 4.35%, Cairn India up by 1.36%, Bank of Baroda up 1.92%, Kotak Bank up by 0.98% and Sterlite Industries up 0.82%.

Tata Motors down 6.91%, Tata Steel down by 4.11%, HDFC down 3.93%, SAIL down 3.73% and ICICI Bank down 3.68% were the major losers on the index.

In the Asian space, Shanghai Composite plunged 1.21%, Hang Seng got slaughtered by 3.19%, Jakarta Composite got hammered 1.61%, KLSE Composite plummeted 1.60%, Nikkei 225 sank 1.12%, Straits Times Index dived 1.51%, KOSPI Composite got obliterated by 3.08% and Taiwan Weighted slumped 2.18%.

The European markets got off to a negative start as France’s CAC 40 plunged 0.07%, Germany’s DAX sank 0.99% and United Kingdom’s FTSE fell 1.05%.