Post session - Quick review

It was a complete bloodbath for Indian equity markets, which losing strength brick by brick, concluded near the intra-day’s low level, as host of negative news across globe triggered massive profit booking at the start of F&O expiry week. The high volume session of trade, witnessed turnover of Rs 2 lac crore.  Lacking any upside triggers, markets protracting previous session’s weakness, underwent a tormenting session of trade, which sent the benchmark 30 share index, Sensex, lower by over 200 points to shut shop sub 16900 level. Similarly, the 50 share index, Nifty, on NSE, declining over 75 points, finished sub 5150 level. Meanwhile, the broader indices too witnessed nasty nick of over a percent. Besides, bleak global set-up, lack of policy announcement on reform front post presidential polls, also deterred the already fragile sentiment. Additionally, drag of Index heavyweight such as Reliance Industries, Infosys, Housing Development and Finance Corporation (HDFC), also weighed on the sentiment.

On the global front, European markets were on losing spree on escalating worries that Spain would require a full sovereign bailout after a second region indicated it would require government assistance. Euro zone banks fell 4.4 per cent after tiny Murcia looked set to follow Valencia in tapping a government programme to keep its finances afloat, while local media reported half a dozen regions were ready to do likewise. Meanwhile, among Asian pacific shares, Hong Kong's Hang Seng Index clocked its second worst day of the year as investors focused on comments by a senior People's Bank of China advisor over the weekend who, reinforcing worries about the region's largest economy, said that he expected Chinese domestic demand to remain weak.

Closer home, selling was both brutal and wide based, as none of sectoral indices on BSE were spared. However, those counter which featured in the list of worst performers, included Metal, Realty and Power. Even retail shares receded on reports that the Samajwadi Party (SP), Left parties and JD(S) urged Prime Minister Manmohan Singh for not allowing foreign direct investment (FDI) in multi-brand retail. Those on the losing side were, Pantaloon Retail India, Trent, Provogue India, Shoppers Stop, CESC, and Brandhouse Retails, plummeting in the range of 4-7%. However, slew of quarter earnings failed to impress markets. Although, Engineering and construction major Larsen and Toubro (L&T) reported 15.7% rise in net profit at Rs 863.65 crore for the quarter ended June 30 on higher revenue, but it largely disappointed the street by its EBITDA margin that came in at 9.1%, a drop of 280 basis points Y-o-Y. Meanwhile, Dabur India and Indian bank rose on reporting good Q1 numbers.  The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1012:1763 while 117 scrips remained unchanged. (Provisional)

The BSE Sensex lost 270.94 points or 1.58% and settled at 16,887.50. The index touched a high and a low of 17,047.73 and 16,849.28 respectively. 3 stocks were seen advancing against 27 declining ones on the index (Provisional)

The BSE Mid-cap index lost 1.30% while Small-cap index was down 1.09%. (Provisional)

On the BSE Sectoral front, there were no gainers, while Metal down 3.43%, Realty down 2.97%, Power down 2.74%, Auto down 2.54% and Capital Goods down 2.06% were the top losers.

The top gainers on the Sensex were Dr. Reddy’s Lab up 1.10%, Cipla up 0.64% and ONGC up 0.64% while, Maruti Suzuki down 5.54%, Sterlite Industries down 4.57%, Hindalco Industries down 4.47%, Tata Steel down 4.23% and BHEL down 4.11% were the top losers in the index. (Provisional)

Meanwhile, the Prime Minister's Economic Advisory Council chairman, C Rangarajan has urged that quick action needs to be taken in diesel prices decontrolling so as to hold the fiscal deficit of the country, which had increased to 5.76% in 2011-12 financial year. Albeit, the government had taken principle decisions to decontrol the price of diesel, it was not implemented fearing the adverse reactions. The decontrol will pass the power of fixing price of diesel from the government to state-owned oil companies.

He also suggested moving ahead with the foreign direct investment (FDI) in multi-brand retail and civil aviation by attaining approval through executive orders without approaching parliament. The government had failed to raise FDI cap in insurance and pension sector to 49%, from 26% and open the multi-brand retail segment to foreign players because of opposition from its coalition partners.

The government has targeted to bring down the fiscal deficit to 5.1% of GDP in the current fiscal, from 5.76% in 2011-12. The high commodity prices in the international market and the inability of the government to adjust domestic prices to global level is putting pressure on the nation’s exchequer. India VIX, a gauge for market’s short term expectation of volatility gained 10.47% at 18.66 from its previous close of 16.89 on Friday. (Provisional)

The S&P CNX Nifty lost 87.80 points or 1.69% to settle at 5,117.30. The index touched high and low of 5,164.20 and 5,108.10 respectively. 3 stocks advanced against 47 declining ones on the index. (Provisional)

The top gainers on the Nifty were Dr. Reddy’s Lab up 1.19%, Cipla up 0.91% and ONGC up 0.76%. On the other hand, Maruti Suzuki down 5.75%, JP Associates down 4.69%, Sesa Goa down 4.67%, Sterlite Industries down 4.66% and Hindalco Industries down 4.46% were the top losers. (Provisional)

The European markets were trading in red, with France's CAC 40 down 2.11%, Germany's DAX down 1.76% and Britain’s FTSE 100 down 1.74%.