The Indian equity markets entered the consolidation
phase on Monday after witnessing boisterous gains last week. The mood of
the markets was somber from the beginning under the influence of feeble
global cues but still the domestic markets showed resilience and made a
good bounce back in the mid of the day and turned up to be one of the
least affected in the region. The weak jobs report from the US and the
debt issue from the Europe have once again led the investors worried
about the economic conditions across the globe. Though, the Asian
markets lost traction on Friday, ahead of the US monthly jobs report but
the Indian markets bucked trend even today when other markets slumped
2-3 percent, local markets were down by just around half a percent with
broader markets holding the forte. The global scenario has turned grim
as the US showed stagnation in jobs creation on the same time, European
investor confidence fell to the lowest level in more than two years in
September after the region's debt crisis and a global slowdown raised
concern that the economy could slip back into recession. The Chinese
markets fell to the lowest level in almost 14 months after a report of
drop in a Chinese services index to a record low.
Back home, early morning the markets got a gap down start on expected lines as the regional peers were trading weak after the US jobs report. The IT sector capitulated the most, as it was going to be affected largely with the economic slowdown in US and Europe. The oil & gas sector that has been witnessing good upmove in last couple of days, too got pounded with heavyweights like RIL, ONGC, Cairn India all losing over two percent for the day. State owned oil company ONGC has been witnessing large sell-off since past couple of days and it further lost momentum on buzz that it will be filing papers for its much-delayed Rs 12,000 crore share sale with market regulator SEBI today. The follow-on public offer (FPO) is likely to open on September 20 and close on September 23. On the sectoral front consumer durables surged, gaining around two and half a percent for the day with Titan and TTK Prestige esclating by 4.5 and 6 percent respectively. Meanwhile, the rate sensitives' too made a good bounce back and closed in green with auto moving higher by over a percent on anticipation the RBI may halt its rate rise. The best part of the trade was that the broader indices after faltering in early trade made a good recovery and snapped the session outperforming their larger peers. The ADAG companies too extended their jubilant mood with Reliance Cap and Rel Infra surging by around 5 percent each. The markets traded on a weaker volume of around Rs 95 thousand crore while the turnover for NSE F&O segment too remained lower compared to Friday at over 0.82 lakh crore. The market breadth remained positive as there were 1481 shares on the gaining side against 1330 shares on the losing side while 117 shares remained unchanged.
Finally, the BSE Sensex lost 108.13 points or 0.64% to settle at 16,713.33, while the S&P CNX Nifty was down by 22.80 points or 0.45% to close at 5,017.20.
The BSE Sensex touched a high and a low of 16,760.07 and 16,561.46 respectively. The BSE Mid cap and Small cap indices were up by 0.51% and 0.18% respectively.
The top gainers on the Sensex were Hero Moto Corp up by 5.16%, JP Associates up by 4.20%, Bajaj Auto was up by 2.74%, Jindal Steel up by 1.81% and Tata Steel was up by 1.26%.
On the flip side, Wipro down by 3.65%, ONGC down by 2.67%, Infosys down by 2.23%, RIL down by 2.05% and Sterlite Inds down by 1.91% were the top losers on the index.
The top gainers on the BSE sectoral space were, Consumer Durables (CD) up by 2.44%, Auto up by 1.30%, Realty up by 0.81%, CG up by 0.39% and Bankex was up by 0.37%. While Oil & Gas down by 1.77%, IT down 1.44%, TECk down by 1.06%, HealthCare (HC) down by 0.66% and Public Sector Undertakings (PSU) down by 0.56% were the top losers on the BSE sectoral space.
Meanwhile, the uncertainties in the global economy and monetary stance adopted by the Reserve Bank of India (RBI) have adversely affected the growth momentum in the services sector. Following the slowdown seen in the manufacturing sector, India's service sector also registered some moderation, which grew at its slowest pace in more than two years in August.
The HSBC Markit Business Activity Index, based on the survey of around 400 service sector companies, during August plunged to 53.8 from 58.2 in July. This is the biggest decline in growth from January 2009. However, the service sector index has been above 50 mark, which separates growth from contraction, for 28 consecutive months. This slowdown in output growth in service sector is due to sharp decline in the rate of increase in new business.
Commenting on the India's service PMI survey, Leif Eskesen, chief economist for India and ASEAN at HSBC said, 'The sequential growth rate in both business activity and new business decelerated markedly in response to the lagged effects of monetary policy tightening, the elevated level of inflation and the now heightened uncertainty about the global economic outlook.'
The HSBC India Composite Index for the month of August registered its slowest pace of growth since May 2009, the Composite Index, which include manufacturing and service sectors stood at 54.5 in August from 57.9 in July. As per the survey, the overall employment showed moderation for the first time since April 2009. On the price front, the input cost and output prices showed increase in August. However, the prices charged by the service companies in India increased at its fastest pace in just over three years. Despite, the increase in input prices, the Indian service sector companies were optimistic in August and expected situation to improve in coming months.
The S&P CNX Nifty touched high and low of 5,030.30 and 4,964.45, respectively.
The top gainers of the Nifty were Hero Moto up by 5.42%, Reliance Capital up by 5%, Reliance Infra up by 4.73%, JP Associates up by 4.11% and Axis bank was up by 3.67%.
On the flip side, Cairn down by 4.02%, Wipro down by 4.02%, HCL Tech down by 3.15%, Ambuja Cements down by 2.65% and Infosys down by 2.44% were the top losers on the index.
The European markets were trading in deep red. France's CAC 40 plunged by 3.08%, Britain's FTSE 100 declined by 2.44% and Germany's DAX trading lower by 3.82%.
Back home, early morning the markets got a gap down start on expected lines as the regional peers were trading weak after the US jobs report. The IT sector capitulated the most, as it was going to be affected largely with the economic slowdown in US and Europe. The oil & gas sector that has been witnessing good upmove in last couple of days, too got pounded with heavyweights like RIL, ONGC, Cairn India all losing over two percent for the day. State owned oil company ONGC has been witnessing large sell-off since past couple of days and it further lost momentum on buzz that it will be filing papers for its much-delayed Rs 12,000 crore share sale with market regulator SEBI today. The follow-on public offer (FPO) is likely to open on September 20 and close on September 23. On the sectoral front consumer durables surged, gaining around two and half a percent for the day with Titan and TTK Prestige esclating by 4.5 and 6 percent respectively. Meanwhile, the rate sensitives' too made a good bounce back and closed in green with auto moving higher by over a percent on anticipation the RBI may halt its rate rise. The best part of the trade was that the broader indices after faltering in early trade made a good recovery and snapped the session outperforming their larger peers. The ADAG companies too extended their jubilant mood with Reliance Cap and Rel Infra surging by around 5 percent each. The markets traded on a weaker volume of around Rs 95 thousand crore while the turnover for NSE F&O segment too remained lower compared to Friday at over 0.82 lakh crore. The market breadth remained positive as there were 1481 shares on the gaining side against 1330 shares on the losing side while 117 shares remained unchanged.
Finally, the BSE Sensex lost 108.13 points or 0.64% to settle at 16,713.33, while the S&P CNX Nifty was down by 22.80 points or 0.45% to close at 5,017.20.
The BSE Sensex touched a high and a low of 16,760.07 and 16,561.46 respectively. The BSE Mid cap and Small cap indices were up by 0.51% and 0.18% respectively.
The top gainers on the Sensex were Hero Moto Corp up by 5.16%, JP Associates up by 4.20%, Bajaj Auto was up by 2.74%, Jindal Steel up by 1.81% and Tata Steel was up by 1.26%.
On the flip side, Wipro down by 3.65%, ONGC down by 2.67%, Infosys down by 2.23%, RIL down by 2.05% and Sterlite Inds down by 1.91% were the top losers on the index.
The top gainers on the BSE sectoral space were, Consumer Durables (CD) up by 2.44%, Auto up by 1.30%, Realty up by 0.81%, CG up by 0.39% and Bankex was up by 0.37%. While Oil & Gas down by 1.77%, IT down 1.44%, TECk down by 1.06%, HealthCare (HC) down by 0.66% and Public Sector Undertakings (PSU) down by 0.56% were the top losers on the BSE sectoral space.
Meanwhile, the uncertainties in the global economy and monetary stance adopted by the Reserve Bank of India (RBI) have adversely affected the growth momentum in the services sector. Following the slowdown seen in the manufacturing sector, India's service sector also registered some moderation, which grew at its slowest pace in more than two years in August.
The HSBC Markit Business Activity Index, based on the survey of around 400 service sector companies, during August plunged to 53.8 from 58.2 in July. This is the biggest decline in growth from January 2009. However, the service sector index has been above 50 mark, which separates growth from contraction, for 28 consecutive months. This slowdown in output growth in service sector is due to sharp decline in the rate of increase in new business.
Commenting on the India's service PMI survey, Leif Eskesen, chief economist for India and ASEAN at HSBC said, 'The sequential growth rate in both business activity and new business decelerated markedly in response to the lagged effects of monetary policy tightening, the elevated level of inflation and the now heightened uncertainty about the global economic outlook.'
The HSBC India Composite Index for the month of August registered its slowest pace of growth since May 2009, the Composite Index, which include manufacturing and service sectors stood at 54.5 in August from 57.9 in July. As per the survey, the overall employment showed moderation for the first time since April 2009. On the price front, the input cost and output prices showed increase in August. However, the prices charged by the service companies in India increased at its fastest pace in just over three years. Despite, the increase in input prices, the Indian service sector companies were optimistic in August and expected situation to improve in coming months.
The S&P CNX Nifty touched high and low of 5,030.30 and 4,964.45, respectively.
The top gainers of the Nifty were Hero Moto up by 5.42%, Reliance Capital up by 5%, Reliance Infra up by 4.73%, JP Associates up by 4.11% and Axis bank was up by 3.67%.
On the flip side, Cairn down by 4.02%, Wipro down by 4.02%, HCL Tech down by 3.15%, Ambuja Cements down by 2.65% and Infosys down by 2.44% were the top losers on the index.
The European markets were trading in deep red. France's CAC 40 plunged by 3.08%, Britain's FTSE 100 declined by 2.44% and Germany's DAX trading lower by 3.82%.
All
the Asian equity indices barring Jakarta Composite finished the day's
trade in the negative terrain on Monday on fears of renewed recession in
US after the country's employment data on Friday showed the world's
biggest economy failed to create any jobs last month for the first time
in nearly a year. While worries over euro debt crisis increased after
talks between Greece and its foreign creditors were put on hold Friday
and the head of the European Central Bank, Jean-Claude Trichet, warned
Italy to stick to its austerity program. Seoul Composite remained the
major loser among other Asian peers losing over four percent in the
trade while, other major indices too tumbled over two percent. However,
Jakarta Composite surged over half a percent as it opened for the trade
after a long holiday.
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