Tremors of the collapse in the US stock markets which were triggered by the looming double dip recession worries and the debt crisis in the US and Europe, brutally hit the Indian shores on the last trading session of the week. The frontline indices even went on to languish at the lowest levels in 52 weeks as bears went out of control bulldozing what may in their way. At one point in time the 30 share Sensex even breached the psychological 17,000 levels to intraday lows of 16,990 but soon recovered, the Nifty at that point in time got obliterated by around two hundred points, breaking the previous 52-week low of 5,177. There was blood bath not only across Indian equity markets but across the world as investors grew increasingly apprehensive that the US - the world's largest economy may be heading back into recession while they were also rattled by the lack of agreement in Europe about debt amid worries that Italy and Spain are getting deeply embroiled in Europe's debt crisis. The overnight collapse in US equity markets saw investors fleeing Wall Street in the worst stock-market selloff since the middle of the financial crisis in early 2009 in what has turned into a full-fledged correction. The scary drop in US stocks and commodities prompted investors around the world to resort to risk aversion and sit on cash as the scenario there threatened to squeeze life out of an already faltering US economy, with investment and capital raising at risk of freezing up. Back home, investors were concerned over possible impact of the global slowdown on exports of Indian companies while they also feared that the companies would have to borrow at high interest rates in India, as foreign borrowings could be difficult amid the uncertainty over financial markets. Meanwhile, the volatility index of the NSE touched an intraday high of 26.40, up 30.6% from Thursday's close, which is believed to be the highest intra-day jump after the Lehman crisis. Investors fretted over the US economic recovery and remained nervous ahead of the release of crucial US jobs data for July scheduled later in the session, which often sets the tone in markets for the next week. Despite the mayhem, optimists got something to cheer as they perceived that the broad based crash in commodities prices may prove to be a blessing in disguise for the Indian markets as cooling international commodity prices, especially crude oil, would automatically ease the spiraling inflationary pressure and give a major respite.
Earlier on Dalal Street, the benchmark nose-dived in opening trades following the global rout and the BSE Sensex deposed 343 points, at 17,350 at the opening bell, the worst market opening in nearly last two years. The butchery continued thereafter as blue-chips like Reliance Industries, TCS, Tata Steel and Infosys plunged into deep red. The slaughtering intensified and the indices touched 52 week lows in early noon trades but subsequent short covering helped the indices regain some part of the grounds lost and end around three hundred points above the intraday lows. Eventually, the NSE's 50-share broadly followed index Nifty, suffered a nasty laceration of well over two percent and barely defended the crucial 5,200 support level while Bombay Stock Exchange's Sensitive Index, Sensex collapsed close to four hundred points and managed an end above the psychological 17,300 mark. The broader markets too got butchered amid the brutal bloodbath across counters and settled with massive losses, drifting deeper than their larger peers. On the sectoral front, it was the turn of information technology counter to languish at the bottom of the BSE sectoral index on being slaughtered by about four percent amid fears of a worsening crisis in Europe and stalling global economic growth which will adversely impact their earnings. The counters with significant exposure to rising interest rates like the realty, automobile, and Banking too bore hefty brunt of selling pressure witnessing colossal sell-off in their stocks. The markets wilted on extremely large volumes of over Rs 2.21 lakh crore while the turnover for NSE F&O segment also remained on the higher side compared to Thursday at over 2.02 lakh crore. The market breadth too remained very abysmal as there were only 556 shares on the gaining side against 2365 shares on the losing side while 68 shares remained unchanged.
Finally, the BSE Sensex plunged 387.31 points or 2.19% to settle at 17,305.87, while the S&P CNX Nifty shaved off 120.55 points or 2.26% to close at 5,211.25.
The BSE Sensex touched a high and a low of 17,358.18 and 16,990.91, respectively. The BSE Mid cap and Small cap indices were down by 2.16% and 3.08% respectively.
The gainers on the Sensex were ONGC up 1.08%, Hindalco Inds up by 0.77% and Cipla up 0.73%. On the flip side, Reliance Infra down 7.43%, Reliance Communication down 7.16%, Sterlite Inds down 6.22%, Tata Steel down 4.48% and Infosys down 4.35% were the top losers on the index.
There was no gainer on the BSE sectoral space. While, IT down 3.93%, TECk down 3.38%, Realty down 3.13%, Power down 3.09% and Consumer Durables (CD) down 2.77% were the top losers on the BSE sectoral space.
Meanwhile, in the month of July, exports of Handicraft have registered growth of 29%. This surge in exports is due to the rise in demand from traditional as well as nontraditional markets such as Middle East and Latin America. As per the data released by the Export Promotion Council for Handicrafts (EPCH), exports of Handicraft increased by 29% to $155 million in June from $120 million in the same month of last year. 'Besides good demand from the US and Europe, there is an increase in orders from new markets like Africa, Latin America and Middle East,' an EPCH official said.
The S&P CNX Nifty touched high and low of 5,229.65 and 5,116.45, respectively.
The top gainers of the Nifty were BPCL up 1.87%, Hindalco up 1.52%, ONGC up 1.48%, IDFC up 0.53% and Jindal Steel up 0.27%.
On the flip side, Reliance Infra down 7.35%, Cairn down 7.18%, RCOM down 6.66%, Sterlite down 5.79% and Sesa Goa down by 5.75% were the top losers on the index.
The European markets were trading in red. France's CAC 40 lost 0.36%, Britain's FTSE 100 lower by 2.50% and Germany's DAX declined by 2.19%.
Blood bath witnessed in Asian region and all Asian equity indices finished the day's trade in the negative terrain on last trading day of the week amid fears the US may be heading back into recession while, Europe's debt crisis too dampened the investors' sentiments. Moreover, Japanese stocks tumbled over three and a half percent to their lowest since the post-quake rout in March as investors ran for exits after the worsening financial crisis in Europe compounded anxiety over a weak US economy that has come close to stalling. Taiwan Weighted remained the biggest lose among the other Asian peers losing over five and a half percent in the trade moreover, other indices too faced deep cut and snapped the trade with a cut of 2-5 percentage point.
Earlier on Dalal Street, the benchmark nose-dived in opening trades following the global rout and the BSE Sensex deposed 343 points, at 17,350 at the opening bell, the worst market opening in nearly last two years. The butchery continued thereafter as blue-chips like Reliance Industries, TCS, Tata Steel and Infosys plunged into deep red. The slaughtering intensified and the indices touched 52 week lows in early noon trades but subsequent short covering helped the indices regain some part of the grounds lost and end around three hundred points above the intraday lows. Eventually, the NSE's 50-share broadly followed index Nifty, suffered a nasty laceration of well over two percent and barely defended the crucial 5,200 support level while Bombay Stock Exchange's Sensitive Index, Sensex collapsed close to four hundred points and managed an end above the psychological 17,300 mark. The broader markets too got butchered amid the brutal bloodbath across counters and settled with massive losses, drifting deeper than their larger peers. On the sectoral front, it was the turn of information technology counter to languish at the bottom of the BSE sectoral index on being slaughtered by about four percent amid fears of a worsening crisis in Europe and stalling global economic growth which will adversely impact their earnings. The counters with significant exposure to rising interest rates like the realty, automobile, and Banking too bore hefty brunt of selling pressure witnessing colossal sell-off in their stocks. The markets wilted on extremely large volumes of over Rs 2.21 lakh crore while the turnover for NSE F&O segment also remained on the higher side compared to Thursday at over 2.02 lakh crore. The market breadth too remained very abysmal as there were only 556 shares on the gaining side against 2365 shares on the losing side while 68 shares remained unchanged.
Finally, the BSE Sensex plunged 387.31 points or 2.19% to settle at 17,305.87, while the S&P CNX Nifty shaved off 120.55 points or 2.26% to close at 5,211.25.
The BSE Sensex touched a high and a low of 17,358.18 and 16,990.91, respectively. The BSE Mid cap and Small cap indices were down by 2.16% and 3.08% respectively.
The gainers on the Sensex were ONGC up 1.08%, Hindalco Inds up by 0.77% and Cipla up 0.73%. On the flip side, Reliance Infra down 7.43%, Reliance Communication down 7.16%, Sterlite Inds down 6.22%, Tata Steel down 4.48% and Infosys down 4.35% were the top losers on the index.
There was no gainer on the BSE sectoral space. While, IT down 3.93%, TECk down 3.38%, Realty down 3.13%, Power down 3.09% and Consumer Durables (CD) down 2.77% were the top losers on the BSE sectoral space.
Meanwhile, in the month of July, exports of Handicraft have registered growth of 29%. This surge in exports is due to the rise in demand from traditional as well as nontraditional markets such as Middle East and Latin America. As per the data released by the Export Promotion Council for Handicrafts (EPCH), exports of Handicraft increased by 29% to $155 million in June from $120 million in the same month of last year. 'Besides good demand from the US and Europe, there is an increase in orders from new markets like Africa, Latin America and Middle East,' an EPCH official said.
In the first four month of the current financial year, the handicraft exports grew by 20.5% to $711 million year-on-year. For the current financial year the EPCH expects exports of Handicraft to touch $2.7 billion. In 2010-11, country's exports of handicraft saw an increase of 26% to $2.3 billion as compared to last fiscal year. The US and Europe together account for about 60% of the country's total handicrafts shipments.
The export items which saw maximum growth in the month were, woodwares, which increased by 52.8%, it was followed by the shawls as art wares which surged by almost 49%. The exports of imitation jewellery also grew by 42% and miscellaneous handicrafts exports grew by 32%. Moradabad, Jaipur, Saharanpur, Jodhpur and Narsapur are the major handicraft centers catering to world markets, and provide employment to around one million people. The S&P CNX Nifty touched high and low of 5,229.65 and 5,116.45, respectively.
The top gainers of the Nifty were BPCL up 1.87%, Hindalco up 1.52%, ONGC up 1.48%, IDFC up 0.53% and Jindal Steel up 0.27%.
On the flip side, Reliance Infra down 7.35%, Cairn down 7.18%, RCOM down 6.66%, Sterlite down 5.79% and Sesa Goa down by 5.75% were the top losers on the index.
The European markets were trading in red. France's CAC 40 lost 0.36%, Britain's FTSE 100 lower by 2.50% and Germany's DAX declined by 2.19%.
Blood bath witnessed in Asian region and all Asian equity indices finished the day's trade in the negative terrain on last trading day of the week amid fears the US may be heading back into recession while, Europe's debt crisis too dampened the investors' sentiments. Moreover, Japanese stocks tumbled over three and a half percent to their lowest since the post-quake rout in March as investors ran for exits after the worsening financial crisis in Europe compounded anxiety over a weak US economy that has come close to stalling. Taiwan Weighted remained the biggest lose among the other Asian peers losing over five and a half percent in the trade moreover, other indices too faced deep cut and snapped the trade with a cut of 2-5 percentage point.
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