Post session - Quick review

D-street, which halted five days losing streak in the previous session suffered sharp laceration on Wednesday.  Larger qualms in light of global risk  averse environment with Indian currency striking an all time low level of over 54/$ mark, brought distress for Indian investor’s, which ruthlessly slashed risky bets. After, getting a gap down opening, bourses could not once recover. Boisterous bears, which ran wild across the space, led to the massive laceration of over a percentage and half points. The pounded sentiments of nervy market men was reflected with levels held by bourses, as 30 scrip sensitive index, Sensex, falling to level last seen in January 12,2012, breached the 16000 psychological level, on aggressive selling by foreign funds as weak rupee raised concerns of slowing economic growth. The scenario was same for widely followed 50 share index, Nifty, on NSE, which getting hammered over a percentage and half points, concluded sub 4900 bastion. Meanwhile, the high volume session of trade, that saw trade of over 1.5 lac crore in term of trade turnover, bought obliteration for broader indices, which alluring substantial weakness, went home with loss of over 0.75%.

Depressing leads from European region also sent investors on selling spree, as European shares scaled fresh lows for 2012 on broad based selling. Asian shares too sagged after efforts failed to form a new government in Greece, fuelling fears that a second election in June could precipitate Athens’ exit from the euro zone and deepen the bloc’s debt crisis.

Back home, although selling was witnessed across the board, however, weakness was majorly endorsed by rate sensitive Auto index, high beta Metal and Consumer durable counters. However, even the dare devilry of Oil & Gas retreated by the end of the session, which after managing to hold their neck in green for almost entire session, succumbed to furious selling, thereby closing with cut of  over 0.25%. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1007: 1704 while 120 scrips remained unchanged. (Provisional)

The BSE Sensex lost 298.16 points or 1.83% and settled at 16,030.09. The index touched a high and a low of 16,132.68 and 15,974.60 respectively. 2 stocks advanced against 28 declining one’s on the index (Provisional)

The BSE Mid-cap index lost 0.78% while Small-cap index got pounded over 1.11%. (Provisional)

On the BSE Sectoral front, selling was witnessed across the board, however, Metal down by 2.68%, Auto down 2.59%, Consumer Durables down 1.94%,  Capital Goods down 1.69% and Bankex down 1.65% were the top losers. (Provisional)

The top gainers on the Sensex were Bajaj Auto up by 0.99%, Sterlite Industries up 0.20%, Mahindra & Mahindra up 0.02% while, Tata Motors down 7.65%, Tata Steel down 4.24%, BHEL down 4.01% Jindal Steel down 3.43 % and Wipro down 3.36% were the top losers. (Provisional)

Meanwhile, in what will come as a minor relief to airline companies, oil firms have slashed jet fuel prices by a marginal 0.4%. This is the third such reduction since April this year and is in sharp contrast to the substantial hikes announced earlier in March and early April.

Jet fuel will now be Rs 272.76 per kl lesser and cost Rs 67,046.95 per kl in Delhi with effect from midnight of May 15, 2012. In Mumbai, the cost will be Rs 68,022.08 per kl as compared to the earlier Rs 68,306.21 per kl.

The earlier cuts by the PSUs were to the tune of Rs 311.74 a kl in May and Rs 169.3 per kl on April 16, 2012. However, these are in sharp contrast to the hikes of 3.2% on March 1, Rs 1,298.88 per kl on March 16 and by another 2.8% on April 1.

The cuts are expected to bring in marginal relief to the cash strapped airlines as jet fuel comprises of 40% of their expenses. IOC, Bharat Petroleum and Hindustan Petroleum revise fuel prices on the 1st and 16th of every month.

India VIX, a gauge for market’s short term expectation of volatility gained 6.41% at 23.71 from its previous close of 22.28 on Tuesday. (Provisional)

The S&P CNX Nifty sank 84.55 points or 1.71% to settle at 4,858.25. The index touched high and low of 4,882.25 and 4,837.05respectively. 11 stocks advanced against 39 declining ones on the index. (Provisional)

The top gainers on the Nifty were BPCL up 2.53%, Power Grid Corporation of India up by 1.65%, Cairn India up by 1.30%, Bajaj Auto up by 1.08% and Kotak Bank up by 1.02%.(Provisional)

On the other hand, Tata Motors down 7.70%, Tata Steel down by 4.40%, SAIL down 4.18%, Reliance Infra down 3.73% and JP Associates down 3.59% were the top losers. (Provisional)

The European markets too exhibiting mixed trend, with France's CAC 40 up 0.29%, Germany's DAX down by 1.06% and Britain’s FTSE 100 plunged 1.14%.

Downtrend continued in the Asian region and all the Asian equity indices crashed on Wednesday as investors remained concerned that Greece is inching near to an exit from the euro-zone after week-long coalition talks failed to form a government. Meanwhile, the Hang Seng posted its biggest loss in six months, down by over  three percent after mainland media reported flat loan growth for the country’s -- Big Four -- state-owned banks in the first two weeks of May, adding fears about the slowing Chinese economy. However, Chinese shares also slipped over a percentage point, but did comparatively well as investors remained confident that the signs of weakness in the economy may prompt further policy action, after a cut in reserve requirements over the weekend.

Japanese Nikkei share average slid over a percent on Wednesday, as data showing flat bank lending in China eased already lukewarm sentiments for risk assets even though the benchmark managed to end a tad above its crucial 8,800 level. Moreover, broader worries about the euro-zone also weighed in sentiments in Singapore and South Korea. In addition, Taiwan stocks closed down over two percent, tracking regional bourses in falls as the euro-zone’s worries capped risk appetite, with smart-phone maker HTC tumbling on news US sales of some new phones will be delayed.