The local bourses have made a gap down start as
trading sentiment remained bearish amid steady outflows of capital from
the equity market in the wake of weak corporate earnings posted by Tata
Steel and DLF. Moreover, the domestic markets followed sharp sell-off in
Asian markets on Thursday and US equities on Wednesday. This was on the
back of fears that Italy may seek a bailout after Italian bond yields
hit 7.45%. Indian markets were shut yesterday. However, the Indian key
benchmarks trimmed some of their initial losses following firm global
cues as US equity markets saw some buying overnight after Italian yields
move down on reports that ECB is buying Italian and Spanish bonds. US
jobless claims fell to lowest in seven months while, all the Asian peers
were trading in the green at this point of time. Back home, BSE's
Sensex and NSE's Nifty breached their psychological 17,300 and 5,200
mark on the back of weak earnings posted by Tata Steel and DLF. Tata
Steel's Q2 consolidated net plunged 89.26% at Rs 212.43 crore for Q2FY12
as compared to Rs 1978.81 crore for Q2FY11 while, DLF Q2 consolidated
net profit dipped 11% at Rs 372.41 crore as its net profit continued to
be hit by rising interest rates, muted home sales, growing raw material
costs and mounting debt. Stocks of metal, realty and banking companies
remained under selling pressure and were mainly responsible for the
Sensex's decline while, stocks of healthcare and auto companies
providing some support to the markets. The broader indices too were
struggling to get some traction while, the market breadth has made a
negative start; there were 892 shares on the gaining side against 938
shares on the losing side while 70 shares remained unchanged.
The BSE Sensex opened at 17,362.10; about 174 points lower compared to its previous closing of 17,187.89, and has touched a high and a low of 17,279.23 and 17,167.91 respectively.
The index is currently trading at 17,266.68, down by 95.42 points or 0.55%. There were 10 stocks advancing against 20 declines on the index.
The overall market breadth has made a negative start with 46.95% stocks advancing against 49.37% declines. The broader indices too were trading in the red; the BSE Mid cap and Small cap index was down by 0.17% and 0.16% respectively.
The only gaining sectoral indices on the BSE were, HC up by 0.65% and Auto up by 0.39%. While, Metal down by 1.45%, Realty down by 1.10%, Bankex down by 0.81%, CG down by 0.73% and Power down by 0.63% were the top losers on the index.
The top gainers on the Sensex were Sun Pharma up by 1.90%, Tata Motors up by 1.38%, Hero Motocorp up by 0.93%, Jaiprakash Associates up by 0.77% and Wipro was up by 0.77%.
On the flip side, Tata Steel down by 3.85%, ICICI Bank down by 1.71%, Hindalco down by 1.45%, DLF down by 1.30% and NGC down by 1.22% were the top losers on the index.
Meanwhile, India's overall automobile sales growth rate dropped by 1.05% to 14,41,594 units in the month of October 2011 as compared to 14,56,901 units in October 2010. However, total sales of vehicles across categories registered growth of 11.81% for April-October 2011.
India's car sales registered the steepest plunge in more than a decade in October, owing to a sharp drop in production from the nation's largest car manufacturer Maruti Suzuki, rising borrowing costs and spiraling fuel prices. According to the data released by Society of Indian Automobile Manufacturers (SIAM), in October 2011 the passenger cars sales plummeted by 23.77% to 138,521 units against 181,704 a year earlier.
October's decline in car sales is the fourth straight drop on a year-on-year basis since July, mainly due to the severe impact of labour issues on Maruti Suzuki's production. Domestic passenger car sales had fallen in July for the first time after 30-months of continuous growth. The last time passenger car sales showed a worse performance was in December 2000, when car sales nosedived by 35%.
The price sensitive car segment was worst hit in the automobile sector as non-stop interest rate hikes by RBI underpinned borrowing costs. The Indian central bank in its endeavor to rein in the escalating inflationary pressure on the economy has gone on to raise key lending rates thirteen times since March 2010. On the other hand, PSU oil marketing companies have hiked prices of petrol by a total of 23% in last ten months because of volatile crude oil prices while the government controlled diesel prices stay cheaper due its direct bearing on inflation.
The SIAM data also showed that motorcycle sales rose slightly during in October to 8,79,883 units from 8,74,146 units in the corresponding month last year. Also Scooter sales surged by 12.11% during October to 2,11,360 units, as against 1,88,522 units in the same month last year. Overall two-wheeler sales expanded by 2.01% to 11,47,621 units last month from 11,25,052 units in October. Moreover, Three-wheeler sales declined by 2.06% to 49,031 units during the month under review from 50,064 units in October 2010.
In the commercial vehicles segment, sales increased by 18.53% to 61,800 units during the month under review from 52,138 units in the year-ago period. Sales of light commercial vehicle sales grew by 15.34% during the month to 34,776 units from 30,151 units in October last year while, medium and heavy commercial vehicles sales rose 27,024 units, as compared to 21,987 units in the same month last year, a 22.91% increase.
The S&P CNX Nifty opened at 5,159.75; about 63 points lower compared to its previous closing of 5,221.05, and has touched a high and a low of 5,198.60 and 5,158.40 respectively.
The index is currently trading at 5,191.05, down by 30.00 points or 0.57%. There were 19 stocks advancing against 31 declines on the index.
Meanwhile, all the Asian markets were trading in the green; Shanghai Composite was up 14.88 points or 0.60% to 2,494.41, Hang Seng was up 215.89 points or 1.14% to 19,179.78, Jakarta Composite was up 0.73 points or 0.02% to 3,784.61, KLSE Composite was up 3.75 points or 0.25% to 1,476.40, Nikkei 225 was up 47.75 points or 0.56% to 8,548.55, Straits Times was up 3.07 points or 0.11% to 2,789.97, Seoul Composite was up 44.28 points or 2.44% to 1,857.53 and Taiwan Weighted was up by 50.91 points or 0.70% to 7,359.59.
The BSE Sensex opened at 17,362.10; about 174 points lower compared to its previous closing of 17,187.89, and has touched a high and a low of 17,279.23 and 17,167.91 respectively.
The index is currently trading at 17,266.68, down by 95.42 points or 0.55%. There were 10 stocks advancing against 20 declines on the index.
The overall market breadth has made a negative start with 46.95% stocks advancing against 49.37% declines. The broader indices too were trading in the red; the BSE Mid cap and Small cap index was down by 0.17% and 0.16% respectively.
The only gaining sectoral indices on the BSE were, HC up by 0.65% and Auto up by 0.39%. While, Metal down by 1.45%, Realty down by 1.10%, Bankex down by 0.81%, CG down by 0.73% and Power down by 0.63% were the top losers on the index.
The top gainers on the Sensex were Sun Pharma up by 1.90%, Tata Motors up by 1.38%, Hero Motocorp up by 0.93%, Jaiprakash Associates up by 0.77% and Wipro was up by 0.77%.
On the flip side, Tata Steel down by 3.85%, ICICI Bank down by 1.71%, Hindalco down by 1.45%, DLF down by 1.30% and NGC down by 1.22% were the top losers on the index.
Meanwhile, India's overall automobile sales growth rate dropped by 1.05% to 14,41,594 units in the month of October 2011 as compared to 14,56,901 units in October 2010. However, total sales of vehicles across categories registered growth of 11.81% for April-October 2011.
India's car sales registered the steepest plunge in more than a decade in October, owing to a sharp drop in production from the nation's largest car manufacturer Maruti Suzuki, rising borrowing costs and spiraling fuel prices. According to the data released by Society of Indian Automobile Manufacturers (SIAM), in October 2011 the passenger cars sales plummeted by 23.77% to 138,521 units against 181,704 a year earlier.
October's decline in car sales is the fourth straight drop on a year-on-year basis since July, mainly due to the severe impact of labour issues on Maruti Suzuki's production. Domestic passenger car sales had fallen in July for the first time after 30-months of continuous growth. The last time passenger car sales showed a worse performance was in December 2000, when car sales nosedived by 35%.
The price sensitive car segment was worst hit in the automobile sector as non-stop interest rate hikes by RBI underpinned borrowing costs. The Indian central bank in its endeavor to rein in the escalating inflationary pressure on the economy has gone on to raise key lending rates thirteen times since March 2010. On the other hand, PSU oil marketing companies have hiked prices of petrol by a total of 23% in last ten months because of volatile crude oil prices while the government controlled diesel prices stay cheaper due its direct bearing on inflation.
The SIAM data also showed that motorcycle sales rose slightly during in October to 8,79,883 units from 8,74,146 units in the corresponding month last year. Also Scooter sales surged by 12.11% during October to 2,11,360 units, as against 1,88,522 units in the same month last year. Overall two-wheeler sales expanded by 2.01% to 11,47,621 units last month from 11,25,052 units in October. Moreover, Three-wheeler sales declined by 2.06% to 49,031 units during the month under review from 50,064 units in October 2010.
In the commercial vehicles segment, sales increased by 18.53% to 61,800 units during the month under review from 52,138 units in the year-ago period. Sales of light commercial vehicle sales grew by 15.34% during the month to 34,776 units from 30,151 units in October last year while, medium and heavy commercial vehicles sales rose 27,024 units, as compared to 21,987 units in the same month last year, a 22.91% increase.
The S&P CNX Nifty opened at 5,159.75; about 63 points lower compared to its previous closing of 5,221.05, and has touched a high and a low of 5,198.60 and 5,158.40 respectively.
The index is currently trading at 5,191.05, down by 30.00 points or 0.57%. There were 19 stocks advancing against 31 declines on the index.
The
top gainers of the Nifty were Sun Pharma up by 2.06%, RCom up by 1.43%,
Dr Reddy up by 1.19%, Tata Motors up by 1.16% and Maruti Suzuki up by
1.07%.
Tata Steel down by 3.78%, ICICI Bank down by
2.06%, Hindalco down by 2.04%, RPower by 1.75% and Tata power was down
by 1.61%, were the major losers on the index. Meanwhile, all the Asian markets were trading in the green; Shanghai Composite was up 14.88 points or 0.60% to 2,494.41, Hang Seng was up 215.89 points or 1.14% to 19,179.78, Jakarta Composite was up 0.73 points or 0.02% to 3,784.61, KLSE Composite was up 3.75 points or 0.25% to 1,476.40, Nikkei 225 was up 47.75 points or 0.56% to 8,548.55, Straits Times was up 3.07 points or 0.11% to 2,789.97, Seoul Composite was up 44.28 points or 2.44% to 1,857.53 and Taiwan Weighted was up by 50.91 points or 0.70% to 7,359.59.
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