The Indian markets went for correction in Friday's
trade after three straight sessions of gains, the euphoria of Obama and
Bernanke's speech faded today and was unable to provide any cue for
further upmove in the markets across the globe. The markets rather
concentrated on domestic factors and the rate sensitive were once again
placed in tizzy, fearing another rate hike by the Reserve bank of India
in its mid quarterly policy review next week. The sentiments also turned
somber after the Deputy Chairman of the Planning Commission Montek
Singh Ahluwalia said that India's September quarter economic growth is
not expected to be better than its previous quarterly growth of 7.7
percent. The high flier of last session Reliance Industries too weighed
on the sentiments of the market and succumbed to profit booking. CAG in
its report has slammed the government and the company over development
of the country's key natural gas field in the Krishna Godavari (KG)
basin and called for revamping profit sharing arrangements from oil and
gas blocks. However, it was the global cues that mainly impacted the
trade on domestic bourses, the US markets closed lower overnight as the
speech by the Federal Reserve chief Ben Bernanke lacked details on plans
to spur economic growth after a $447 billion jobs package plan by US
President Barack Obama. The Asian markets followed the trend and lost
ground with most of the indices closing in red. The European markets too
lost traction as European Central Bank President Jean-Claude Trichet
said "downside risks" for the region's economies have risen.
Back home the local markets made a flat but positive start though the indices were unable to hold the gains amid gloomy global environment and quickly followed the Asian peers. Initially the weakness persisted mainly in the IT pack as the weakness in the US and Europe is likely to impact them most, while other rate sensitive sector stocks too seemed under weather, fearing further rate hike. Trade remained range bound till mid morning session after which selling intensified in IT and metal sector and led the markets lower however, some recovery once again took the markets towards the neutral line and the benchmarks regained their psychological levels of 17100 (Sensex) and 5100 (Nifty) but the soft start and further weakening of the European markets induced selling in the local markets and going towards the end bears took the control, dragging the markets to the lows of the day. The selling intensified in last hour in ADAG companies on the buzz that CBI has indicated RCom and Swan as associates in the 2G scam. The other pack that witnessed beating today was Cement on reports that Ministry of Corporate Affairs (MCA) has finalised report on cement price manipulation and it may direct Competition Commission of India (CCI) to initiate action against three cement companies, viz; UltraTech Cement, ACC and Ambuja Cement. All the three companies were down by 2-5%. Meanwhile, in the down day GTL twins, GTL and GTL Infra surged on a possible admission into corporate debt restructuring (CDR) plan. Overall, it was a dismal day of trade for the markets where Nifty went for near a triple digit laceration while Sensex too lost around 300 points. Though the broader indices were in comparatively better position than their larger peers, and the BSE Midcap index was down by 0.85% while the BSE Small cap lost 0.75%. The decline to the markets came on a higher volume of 1.29 lakh crore while the turnover for NSE F&O segment too remained on higher side as compared to Thursday at over 1.14 lakh crore. The market breadth was in the favour of declines with 1190 shares on the gaining side against 1660 shares on the losing side while 104 shares remained unchanged.
Finally, the BSE Sensex shaved off 298.57 points or 1.74% to settle at 16,866.97, while the S&P CNX Nifty plunged by 93.80 points or 1.82% to close at 5,059.45.
The BSE Sensex touched a high and a low of 17,211.80 and 16,830.95 respectively. The BSE Mid cap and Small cap indices were down by 0.84% and 0.75% respectively.
The top gainers on the Sensex were Hindustan Unilever up 2.52%, Hero Motocorp up by 2.05%, ONGC up by 0.34%, Bharti Airtel up by 0.29% and HDFC up by 0.23%.
On the flip side, Sterlite Industries down 5.49%, Hindalco Industries down 5.47%, Jaiprakash Associate down 4.58%, SBI down 3.68% and Reliance down 3.33% were the top losers on the index.
The only gainer on the BSE sectoral space was, Consumer Durables (CD) up 0.37%. While, Metal down 3.16%, Bankex down 2.35%, Oil & Gas down 2.30%, IT down 2.29% and Reality down 2.05% were the top losers on the BSE sectoral space.
Meanwhile, despite the slowdown in European nations and United States, India's export continued its uptrend. In the month of August, India's exports increased by 44.2% to $24.3 billion, whereas, imports for August jumped by 41.8% to 38.4 billion, making trade deficit of $14.1 billion. The Commerce Secretary, Rahul Khullar, said 'Except iron ore, other sectors including engineering, chemicals and textiles have shown robust growth.'
Despite the economic slowdown and debt crisis in country's main export destinations, India's exports have been going well. However, experts are of the view that this surge in country's exports may not sustain its present pace for the coming months.
The S&P CNX Nifty touched high and low of 5,163.75 and 5,046.80, respectively.
The top gainers of the Nifty were Hindustan Unilever up 2.60%, Hero Motocorp up 2.27%, Bajaj Auto up 0.19%, ONGC up 0.15% and HDFC up 0.15%.
On the flip side, RCom down 6.66%, Ambuja Cement down 6.40%, Hindalco down 5.85%, Sterlite down 5.61% and SAIL down 5.49% were the top losers on the index.
The European markets were trading in red. France's CAC 40 plunged by 1.45%, Britain's FTSE lost 0.48%, and Germany's DAX declined by 0.93%.
All the Asian equity indices barring Taiwan Weighted finished the last trading day of the week in the negative terrain as jobs package of $447 billion by US President Barack Obama failed to attract investors back into equities amid concerns that political wrangling could see it watered down. Japanese Nikkei declined over half a percent after Japan's economy contracted more than previously reported, with firms cutting back on capital spending after the March 11 disaster. The revised gross domestic product shrank at a price-adjusted annual pace of 2.1% in April-June from the previous quarter. Meanwhile, Chinese inflation eased concern over inflationary pressures building in the world's No 2 economy. The country's consumer prices rose 6.2 percent year on year in August, down from July's three-year high of 6.5 percent. But, investors remained worried after Western central banks failed to offer any fresh stimulus plans and Shanghai Composite ended flat.
Back home the local markets made a flat but positive start though the indices were unable to hold the gains amid gloomy global environment and quickly followed the Asian peers. Initially the weakness persisted mainly in the IT pack as the weakness in the US and Europe is likely to impact them most, while other rate sensitive sector stocks too seemed under weather, fearing further rate hike. Trade remained range bound till mid morning session after which selling intensified in IT and metal sector and led the markets lower however, some recovery once again took the markets towards the neutral line and the benchmarks regained their psychological levels of 17100 (Sensex) and 5100 (Nifty) but the soft start and further weakening of the European markets induced selling in the local markets and going towards the end bears took the control, dragging the markets to the lows of the day. The selling intensified in last hour in ADAG companies on the buzz that CBI has indicated RCom and Swan as associates in the 2G scam. The other pack that witnessed beating today was Cement on reports that Ministry of Corporate Affairs (MCA) has finalised report on cement price manipulation and it may direct Competition Commission of India (CCI) to initiate action against three cement companies, viz; UltraTech Cement, ACC and Ambuja Cement. All the three companies were down by 2-5%. Meanwhile, in the down day GTL twins, GTL and GTL Infra surged on a possible admission into corporate debt restructuring (CDR) plan. Overall, it was a dismal day of trade for the markets where Nifty went for near a triple digit laceration while Sensex too lost around 300 points. Though the broader indices were in comparatively better position than their larger peers, and the BSE Midcap index was down by 0.85% while the BSE Small cap lost 0.75%. The decline to the markets came on a higher volume of 1.29 lakh crore while the turnover for NSE F&O segment too remained on higher side as compared to Thursday at over 1.14 lakh crore. The market breadth was in the favour of declines with 1190 shares on the gaining side against 1660 shares on the losing side while 104 shares remained unchanged.
Finally, the BSE Sensex shaved off 298.57 points or 1.74% to settle at 16,866.97, while the S&P CNX Nifty plunged by 93.80 points or 1.82% to close at 5,059.45.
The BSE Sensex touched a high and a low of 17,211.80 and 16,830.95 respectively. The BSE Mid cap and Small cap indices were down by 0.84% and 0.75% respectively.
The top gainers on the Sensex were Hindustan Unilever up 2.52%, Hero Motocorp up by 2.05%, ONGC up by 0.34%, Bharti Airtel up by 0.29% and HDFC up by 0.23%.
On the flip side, Sterlite Industries down 5.49%, Hindalco Industries down 5.47%, Jaiprakash Associate down 4.58%, SBI down 3.68% and Reliance down 3.33% were the top losers on the index.
The only gainer on the BSE sectoral space was, Consumer Durables (CD) up 0.37%. While, Metal down 3.16%, Bankex down 2.35%, Oil & Gas down 2.30%, IT down 2.29% and Reality down 2.05% were the top losers on the BSE sectoral space.
Meanwhile, despite the slowdown in European nations and United States, India's export continued its uptrend. In the month of August, India's exports increased by 44.2% to $24.3 billion, whereas, imports for August jumped by 41.8% to 38.4 billion, making trade deficit of $14.1 billion. The Commerce Secretary, Rahul Khullar, said 'Except iron ore, other sectors including engineering, chemicals and textiles have shown robust growth.'
India's
exporters enjoyed record growth in the last fiscal year and had uneven
high double digit growth in recent months, maintained by demand for the
country's cars, petroleum products and precious stones.
India's exports for the first five months of
current financial year rose by 54.2% to $134.5 billion, while imports in
the same period surged by 40.4% to $189.4 billion, making trade deficit
of $54.9 billion. Despite the economic slowdown and debt crisis in country's main export destinations, India's exports have been going well. However, experts are of the view that this surge in country's exports may not sustain its present pace for the coming months.
The S&P CNX Nifty touched high and low of 5,163.75 and 5,046.80, respectively.
The top gainers of the Nifty were Hindustan Unilever up 2.60%, Hero Motocorp up 2.27%, Bajaj Auto up 0.19%, ONGC up 0.15% and HDFC up 0.15%.
On the flip side, RCom down 6.66%, Ambuja Cement down 6.40%, Hindalco down 5.85%, Sterlite down 5.61% and SAIL down 5.49% were the top losers on the index.
The European markets were trading in red. France's CAC 40 plunged by 1.45%, Britain's FTSE lost 0.48%, and Germany's DAX declined by 0.93%.
All the Asian equity indices barring Taiwan Weighted finished the last trading day of the week in the negative terrain as jobs package of $447 billion by US President Barack Obama failed to attract investors back into equities amid concerns that political wrangling could see it watered down. Japanese Nikkei declined over half a percent after Japan's economy contracted more than previously reported, with firms cutting back on capital spending after the March 11 disaster. The revised gross domestic product shrank at a price-adjusted annual pace of 2.1% in April-June from the previous quarter. Meanwhile, Chinese inflation eased concern over inflationary pressures building in the world's No 2 economy. The country's consumer prices rose 6.2 percent year on year in August, down from July's three-year high of 6.5 percent. But, investors remained worried after Western central banks failed to offer any fresh stimulus plans and Shanghai Composite ended flat.
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