Benchmarks magnify losses; broader indices imitate the move

An unsuccessful German bond sale which raised alarm that Europe's ever-worsening sovereign debt crisis is starting to affect even the continent's economic powerhouse, have kept the bears active across the space. Market participants are increasingly pruning their position amidst global markets turmoil, which is spooling under fears of global economy heading for a recession, that could in future sap demand for emerging market’s risky equities. However, volatility is expected to be the trait of the trade ahead of derivatives contract’s expiry. Germany's bond sale on Wednesday had one of the worst results since the launch of the euro, raising concern about the price Berlin may pay for its role as paymaster to a region racked by a crisis that has toppled governments in Greece and Italy. Overnight, on Wall Street, Dow Jones industrial average sank 236.17 points, or 2.05 percent, to 11,257.55 at the close. The Standard & Poor's 500 Index dropped 26.25 points, or 2.21 percent, to end at 1,161.79 and the Nasdaq Composite Index lost 61.20 points, or 2.43 percent, to 2,460.08. Meanwhile, most Asian stock markets were slightly higher with several bourses reversing morning losses amid a rise in U.S. stock futures.

Back home, on the BSE sectoral front, stocks from Consumer Durable, Metal and Realty counters were bearing maximum brunt of profit booking. BSE bellwether-Sensex-sinking over 150 points was oscillating above 15500 levels. In a similar way, broadly followed index of NSE-Nifty-surrendering close to 50 points was gyrating around the 4650 level. The broader indices too following the frontline indices dipped their head below the water. The overall market breadth on BSE was in the favour of advances which thrashed declines in the ratio of 1450:624, while 70 shares remained unchanged.

The BSE Sensex is currently trading at 15,536.71, down by 163.26 points or 1.04%. The index has touched a high and low of 15,729.01 and 15,507.17 respectively.  There were 6 stocks advancing against 24 declines on the index.

The broader indices too were beleaguered by additional selling pressure; the BSE Mid cap and Small cap indices declined by 0.92% and 0.85% respectively. 

Selling was witnessed across the board, however, CD down by 1.82%, Metal down by 1.57%, Realty down by 1.43%, IT down by 1.32% and CG down by 1.22% featured in the worst list of performers on the BSE Sectoral front.

The top losers on Sensex were BHEL down by 2.95%, Tata Steel down by 2.90%, HDFC down by 2.61%, HDFC Bank down by 2.55% and Sterlite Industries down by 2.06%.

On the flip side, gainers on the Sensex were Tata power up by 1.26%, Maruti Suzuki up by 0.86%, Bharti Airtel up by 0.84% and Mahindra & Mahindra up by 0.16%.

Meanwhile, quoting the decline in the stock markets to global factor, Finance Minister Pranab Mukherjee said India’s growth and fundamentals are strong and they look more attractive in world, which is confronting problems, adding that the FII investments have been in the positive territory in October and November.

Mukherjee’s comment comes in the backdrop of sharp fall seen in the Indian stock market. The uninterrupted withdrawal of funds by foreign investors on the back of uncertainties in Euro-zone and depreciation of rupee, the Bombay Stock Exchange (BSE) benchmark Sensex, crashed by 587 points in intra-day trade before recovering to close 365 point lower at 15,699.7.

'Markets have crashed because of continuous withdrawal of (funds by) FIIs. There is still uncertainty prevailing in the Euro-zone. Rupee depreciation also has adverse impact. All these cumulative effects are there,' Mukherjee said.

In the last six trading sessions, the Foreign Institutional Investors (FIIs) have withdrawn $623 million from equity markets. In October and till November 22, the FIIs have invested $634 million and $214 million respectively. But the FIIs today pulled out over $160 million from stock markets.

On the depreciation of rupee, finance minister said that the RBI is closely monitoring the situation and will do the needful as required. On November 22, the rupee has touched its all time lowest level against American dollar however, recovered on November 23, to trade around 52.12 per dollar.    The S&P CNX Nifty is currently trading at 4,656.30, down by 50.15 points or 1.07%. The index has touched a high and low of 4,714.25 and 4,647.70 respectively.  There were 7 stocks advancing against 42 declining ones on the index.

The top gainers of the Nifty were GAIL up by 2.00%, Tata Power up by 1.81%, Axis Bank up by 1.36%, Maruti up by 0.83% and Bharti Airtel up by 0.70%.

SAIL down by 3.81%, Sesa Goa down by 3.00%, Siemens down by 3.00%, HCL Technologies down by 2.78% and Tata Steel down by 2.76% were the major losers on the index.

Some weakness even crept in Asian market; Hang Seng gained 0.45%, KLSE Composite added 0.40%, Straits Times accumulated 0.29%, Seoul Composite captured 0.65% and Taiwan Weighted rose 0.60%.

Shanghai Composite lost 0.73%, Jakarta Composite slid 0.45% and Nikkei 225 plunged 1.51%.