Post session - Quick review

Indian stock markets extended the previous session’s hefty losses with an equally dismal performance on Monday as investors started a fresh quarter on a sour note amid persistent concerns about a potential double-dip recession for the global economy. Mounting concerns over euro zone debt crisis after finance ministry over the weekend said that Greece won't be able to meet 2011-2012 deficit targets set by the EU and International Monetary Fund as part of the country's bailout mainly drove investor’s away from placing their bets on risky assets. Reports suggested that Greece failed to meet this year's deficit target of 7.8 percent, due to a deeper than expected recession and its deficit for 2011-2012 is expected to reach 8.5% of GDP, or €18.69 billion ($25.2 billion). Meanwhile, the sentiment was also spooked after US consumer spending slowed as incomes unexpectedly dropped. US reports suggested that the personal income in the month of August fell to a seasonally adjusted 0.1%, marking the first monthly decline since October 2009. Wages and salary income, which is key for consumer spending, decreased 0.2% in August. It’s biggest decline since November 2010.

Lack of positive leads both on domestic and global turf led to the Monday blues of Dalal Street as US stocks ended their worst quarter since the depths of the 2008 credit crisis, crippled by Europe's debt debacle, a US credit downgrade and a sputtering global economy. A Global Poll showed that Sixty-seven percent of those responding backed the decision by McGraw-Hill Cos.’ S&P to downgrade the US credit rating to AA+ from AAA. Meanwhile, Asian shares fell, extending the regional benchmark indices biggest quarterly decline in three years, on deepening concerns that the euro zone's debt crisis will dampen global growth. Hong Kong shares slumped 4.4 per cent, underperforming much of Asia, as mainland financials and property names dragged the Hang Seng Index to its lowest level in 2-1/2 years, with lackluster turnover and a flight to defensive stocks pointing to increased risk aversion. Moreover, Japanese Nikkei fell about two percent, with a government survey showing an improvement in business confidence among Japanese manufacturers doing little to nudge markets back to life.

The European shares too fell sharply on Monday amid fresh concerns that other euro zone governments, faced with domestic opposition, may be unwilling to step in and fill the gap, thereby raising the prospect that Greek bondholders, mainly financial institutions, would need to take a bigger haircut than that previously agreed.

Back home, cement and auto companies hogged the limelight as they reported their monthly sales number. Tata Motor declined 0.13%, in volatile trade. The company's total sales rose 22% to 78,786 units in September 2011 over September 2010. Meanwhile, Mahindra & Mahindra gained 0.43%. The company's total auto sales rose 25% to a record 44,137 units in September 2011 over September 2010. Besides these, Maruti Suzuki India gained in early trade, as the month-long standoff between the company's management and agitating Manesar plant workers ended on Saturday, October 1, 2011.

Amongst cement companies, ACC rose 0.19%. India's no 2 cement producer’s cement production for the month of September 2011 rose by 9.86% to 1.67 million tonnes as compared to 1.52 million tonnes a year ago. Meanwhile, Ambuja Cements too rose 0.17% after the company’s shipments in September rose 2.31% from a year ago to 15.51 lakh tonnes.

Moreover, shares of Reliance Anil Dhirubhai Ambani Group companies too rose on reports that the Central Bureau of Investigation has given a clean chit to the group Chairman, Anil Ambani, in 2G spectrum case. Reliance Capital (up 1.60%), Reliance Communications (up 0.77%), Reliance Infrastructures (up 1.27%).On the BSE sectoral front, stocks from rate sensitive’s Realty, Metal and  Bankex plunged the most and featured in the category of worst performers. Rate Sensitive was nursing heavy losses amidst fears that RBI would have some more rate hikes in its offings. However, stocks from Auto, HC and Oil & Gas placed a lid to the bourses losses.

The 30 scrip sensitive index on BSE tanking over 300 points ended  slightly above 16100 level.  Meanwhile, the 50 share index -losing close to 100 points  settled sub 4900 mark. The broader indices too went home with losses of over 1.50% each. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 937:1829 while 128 scrips remained unchanged.

The BSE Sensex lost 284.03 points or 1.73% and settled at 16,169.73. The index touched a high and a low of 16,255.97 and 16,056.33 respectively. 8 stocks advanced against 22 declining ones on the index (Provisional)

The BSE Mid-cap index lost 1.93% while Small-cap index was down by 1.48%. (Provisional)

On the BSE Sectoral front, there were no gainers while, Realty down 4.76%, Metal down 3.99%, Bankex down 2.65%, Capital Goods down 2.48% and Consumer Durables down 1.63% were the only losers.

The top gainers on the Sensex were ONGC up 1.66%, Coal India up 1.23%, Cipla up 1.17%, Bharti Airtel up 1.03% and M&M up 0.89%.

On the flip side, DLF down 8.12%, Jindal Steel down 6.76%, Hindalco down 5.56%, Tata Steel down 4.76% and ICICI Bank down 4.06% were the top loser on the index. (Provisional)

Meanwhile, Indian exports have maintained the growth momentum in the month of August, as it stood at $24.31 billion which is around 44.25% higher compared to $16.85 billion during the corresponding month of the previous year, according to provisional data issued by the Ministry of Commerce. 

While, imports for Asia’s third largest nation surged by 41.8% to $38.4 billion in August year-on-year, largely due to a rise in non-oil imports. The commerce ministry’s official statement also showed that India's August trade deficit widened to $14.04 billion from $10.09 billion in the same period a year earlier.

During the April-August period, India’s exports grew by 54.2% to $134.5 billion while imports climbed by 40.37% to $189.4 billion. Thus, the trade gap for the first five months of the fiscal year 2011-12 stands at a deficit of $54.89 billion.

Oil imports during August, 2011 were valued at $10.27 billion which was 48.72% higher than oil imports valued at $6.91 billion in the corresponding period last year.  Oil imports during April-August, 2011-12 were valued at $52.25 billion which was 27.09% higher than the oil imports of $41.11 billion in the corresponding period last year.

While, non-oil imports during August, 2011 were estimated at $28.07 billion which was 39.4% higher than non-oil imports of $20.13 billion in August, 2010.  Non-oil imports during April-August, 2011-12 were valued at $13.71 billion which was 46.19% higher than the level of such imports valued at $93.81 billion in April-August, 2010-11.

India VIX, a gauge for market’s short term expectation of volatility gained 9.79% at 35.07 from its previous close of 31.94 on Friday. (Provisional)

The S&P CNX Nifty lost 83.80 points or 1.70% to settle at 4,859.45. The index touched high and low of 4,879.15 and 4,823.90 respectively. 17 stocks advanced against 33 declining ones on the index. (Provisional)

The top gainer on the Nifty were, BPCL up 4.38%, Reliance Power up 2.02%, Reliance Capital up 2.01%, Gail up 1.86% and Cipla up 1.67%.

On the other hand, DLF down 8.77%, Jindal Steel down 6.92%, Hindalco down 5.59%, Tata Steel down 4.89% and SAIL down 4.69% were the top losers. (Provisional)The European markets are trading in red, with France's CAC 40 down 2.58%, Germany's DAX down 2.29% and FTSE 100 down 1.93%.