Indian equity markets finally showed some resilience
on the last trading day of the week but failed to negotiate a positive
close for the benchmark indices which extended the southward journey for
the seventh straight session. Some recovery in sentiments was evident
in the dying hours of the day when investors chose to cover the hefty
short positions in the heavyweight stocks including Reliance Industries,
ONGC etc that got build in the recent sell-off. However, mounting
worries over the exacerbating Euro-zone debt trouble would bite into
global economic growth dampened investors' morale while fears that the
euro currency union could be heading toward an ugly breakup too
dissuaded marketmen from piling fresh positions. Also the difference of
opinion between France and Germany over the role of the European Central
Bank continued to weigh on sentiments as France favored stronger action
from the ECB while Germany continues to reject calls for the bank to
print money and buy bonds on a bigger scale. Back home, concerns over
the worsening domestic macro economic situation in the last two months
surfaced as the nation's economy showed signs of slowing down amid the
rampant inflationary pressure and rising borrowing costs. Furthermore,
the ongoing slump in rupee which depreciated around 12.5% year-to-date
and went past 51 per dollar for the first time since March 2009, kept
marketmen on the edge. The depreciation in rupee underpins cost of
import and it is a sign of worry for a nation like India which imports
more than 75% of its energy needs, and materials including steel, coal
and natural rubber. Meanwhile, the fertilizer stocks received a setback
in the session and drifted lower on reports that finance ministry has
rejected a policy drafted by the Planning Commission to attract new
investment in the urea sector, saying the proposals are unrealistic,
unviable and will lead to high subsidy outgo.
Earlier on Dalal Street, the benchmark got off to a sedate opening since sentiments remained weak following the pessimism prevailing in Asian markets. Thereafter, the bourses treaded on a southbound journey and kept declining through the morning trades. There was some recovery seen in the markets after the frontline indices hit the lowest levels in early afternoon trades but profit booking at higher levels pulled them back around the day's lows. However, some short covering in the last leg of trade helped the benchmarks in paring most of intraday losses and settle only with marginal cuts. Eventually the NSE's 50-share broadly followed index Nifty, slipped by over half a percent to settle just above the crucial 4,900 support level while Bombay Stock Exchange's Sensitive Index Sensex shed around a hundred points and closed below the psychological 16,400 mark. Moreover, the broader markets continued to bear the brunt of hefty position squaring and suffered cuts of over a percent and underperformed their larger peers. On the BSE sectoral space, the high beta Realty index remained the top laggard in the space with over one and half a percent losses. The defensive FMCG and Metal pockets too went home with cuts of over a percent. On the flipside, the defensive Healthcare sector along with Consumer Durables and Oil & Gas counters settled with marginal gains. The markets declined on extremely large volumes of over Rs 2.05 lakh crore while the turnover for NSE F&O segment too remained on the higher side as compared to Thursday at over 1.90 lakh core. The market breadth remained abysmal as there were 882 shares on the gaining side against 1989 shares on the losing side while 108 shares remained unchanged.
Finally, the BSE Sensex lost 90.20 points or 0.55% to settle at 16,371.51, while the S&P CNX Nifty declined by 28.95 points or 0.59% to close 4,905.80.
The BSE Sensex touched a high and a low of 16,396.69 and 16,164.99 respectively. The BSE Mid cap and Small cap index down by 1.03% and 1.90% respectively.
The major gainers on the Sensex were Hero MotoCorp up 3.05%, Tata Power up 2.42%, Wipro up 1.88%, Sun Pharma up 1.36% and HDFC up 1.34%. While, BHEL down 3.06%, Mahindra & Mahindra down 2.74%, Tata Motors down 2.74%, ITC down 2.46% and TCS down 2.24% were the major losers on the index.
The major gainers on the BSE sectoral space were Health Care (HC) up 0.19%, Consumer Durables (CD) up 0.02% and Oil & Gas up 0.01%. While Realty down 1.59%, FMCG down 1.39%, Metal down 1.30%, Auto down 1.20% and Power down 1.09% were the major losers on the BSE sectoral space.
Meanwhile, the Reserve bank of India (RBI) has directed banks dealing in foreign exchange (forex) to exercise caution in respect of transaction by Indian resident where margin payments through a credit card or deposit are required in view of the risk of fraud. 'Banks were advised to exercise due caution and be extra vigilant in respect of the margin payments being made by the public for online forex trading transactions through credit cards / deposits in various accounts maintained with banks in India,' the RBI said in a notification.
By adding further RBI said, banks were also advised to exercise due care in respect of the accounts being opened in the name of individuals or proprietary concerns at different bank branches for collecting the margin money, investment money, etc. in connection with such transactions. The RBI has observed cases where abroad foreign exchange trading has been introduced on a number of internet and electronic trading portals, attracting Indian residents with offers of guaranteed high returns based on such forex trading.
'The advertisements by these internet/online portals exhort people to trade in forex by way of paying the initial investment amount in Indian rupees. Some companies have reportedly engaged agents who personally contact people to undertake forex trading/investment schemes and entice them with promises of disproportionate/exorbitant returns,' RBI said.
As per the RBI, majority of forex trading via such portals is done on margining basis with huge leverage or on an investment basis, where the returns are based on forex trading. The public is asked to make the margin payments for such online forex trading transactions via credit/deposits in various accounts maintained with banks in India.
'It is also observed that accounts are being opened in the name of individuals or proprietary concerns at different bank branches for collecting the margin money, investment money, etc,' it said. The RBI further, warned that any person who is residing in India and engaged in collecting or remitting such payments either directly or indirectly abroad would be liable to face action as per the rules of the Foreign Exchange Management Act (FEMA) and other laws.
The S&P CNX Nifty touched a high and low of 4,915.90 and 4,837.95 respectively.
The top gainers on the Nifty were SAIL up 7.79%, Hero MotoCorp up 3.79%, IDFC up 2.57%, Tata Power up 2.31% and Wipro up 2.30%. On the flip side, Sesa Goa down 4.18%, ITC down 3.51%, Power Grid down 2.91%, M&M down 2.74% and BHEL down 2.42% were the top losers on the index.
The European markets were trading in red. France's CAC 40 down 0.31%, Britain's FTSE 100 down by 1.00%, and Germany's DAX down by 0.71%.
Sentiment continued to remain bearish in Asian region as all the Asian peers witnessed steep fall in today's session, pulled down by fresh concerns about Europe's ongoing debt woes following a weak Spanish bond auction. Spain's borrowing costs at a sale of 10-year debt soared to their highest in the euro's history on Thursday, pulling it back into the vortex of a crisis that is increasingly threatening Europe's second biggest economy France. The new 10-year Spanish bond was yielding 6.85 percent, with traders expecting more upward pressure before the country's elections on November 20, 2011.
Earlier on Dalal Street, the benchmark got off to a sedate opening since sentiments remained weak following the pessimism prevailing in Asian markets. Thereafter, the bourses treaded on a southbound journey and kept declining through the morning trades. There was some recovery seen in the markets after the frontline indices hit the lowest levels in early afternoon trades but profit booking at higher levels pulled them back around the day's lows. However, some short covering in the last leg of trade helped the benchmarks in paring most of intraday losses and settle only with marginal cuts. Eventually the NSE's 50-share broadly followed index Nifty, slipped by over half a percent to settle just above the crucial 4,900 support level while Bombay Stock Exchange's Sensitive Index Sensex shed around a hundred points and closed below the psychological 16,400 mark. Moreover, the broader markets continued to bear the brunt of hefty position squaring and suffered cuts of over a percent and underperformed their larger peers. On the BSE sectoral space, the high beta Realty index remained the top laggard in the space with over one and half a percent losses. The defensive FMCG and Metal pockets too went home with cuts of over a percent. On the flipside, the defensive Healthcare sector along with Consumer Durables and Oil & Gas counters settled with marginal gains. The markets declined on extremely large volumes of over Rs 2.05 lakh crore while the turnover for NSE F&O segment too remained on the higher side as compared to Thursday at over 1.90 lakh core. The market breadth remained abysmal as there were 882 shares on the gaining side against 1989 shares on the losing side while 108 shares remained unchanged.
Finally, the BSE Sensex lost 90.20 points or 0.55% to settle at 16,371.51, while the S&P CNX Nifty declined by 28.95 points or 0.59% to close 4,905.80.
The BSE Sensex touched a high and a low of 16,396.69 and 16,164.99 respectively. The BSE Mid cap and Small cap index down by 1.03% and 1.90% respectively.
The major gainers on the Sensex were Hero MotoCorp up 3.05%, Tata Power up 2.42%, Wipro up 1.88%, Sun Pharma up 1.36% and HDFC up 1.34%. While, BHEL down 3.06%, Mahindra & Mahindra down 2.74%, Tata Motors down 2.74%, ITC down 2.46% and TCS down 2.24% were the major losers on the index.
The major gainers on the BSE sectoral space were Health Care (HC) up 0.19%, Consumer Durables (CD) up 0.02% and Oil & Gas up 0.01%. While Realty down 1.59%, FMCG down 1.39%, Metal down 1.30%, Auto down 1.20% and Power down 1.09% were the major losers on the BSE sectoral space.
Meanwhile, the Reserve bank of India (RBI) has directed banks dealing in foreign exchange (forex) to exercise caution in respect of transaction by Indian resident where margin payments through a credit card or deposit are required in view of the risk of fraud. 'Banks were advised to exercise due caution and be extra vigilant in respect of the margin payments being made by the public for online forex trading transactions through credit cards / deposits in various accounts maintained with banks in India,' the RBI said in a notification.
By adding further RBI said, banks were also advised to exercise due care in respect of the accounts being opened in the name of individuals or proprietary concerns at different bank branches for collecting the margin money, investment money, etc. in connection with such transactions. The RBI has observed cases where abroad foreign exchange trading has been introduced on a number of internet and electronic trading portals, attracting Indian residents with offers of guaranteed high returns based on such forex trading.
'The advertisements by these internet/online portals exhort people to trade in forex by way of paying the initial investment amount in Indian rupees. Some companies have reportedly engaged agents who personally contact people to undertake forex trading/investment schemes and entice them with promises of disproportionate/exorbitant returns,' RBI said.
As per the RBI, majority of forex trading via such portals is done on margining basis with huge leverage or on an investment basis, where the returns are based on forex trading. The public is asked to make the margin payments for such online forex trading transactions via credit/deposits in various accounts maintained with banks in India.
'It is also observed that accounts are being opened in the name of individuals or proprietary concerns at different bank branches for collecting the margin money, investment money, etc,' it said. The RBI further, warned that any person who is residing in India and engaged in collecting or remitting such payments either directly or indirectly abroad would be liable to face action as per the rules of the Foreign Exchange Management Act (FEMA) and other laws.
The S&P CNX Nifty touched a high and low of 4,915.90 and 4,837.95 respectively.
The top gainers on the Nifty were SAIL up 7.79%, Hero MotoCorp up 3.79%, IDFC up 2.57%, Tata Power up 2.31% and Wipro up 2.30%. On the flip side, Sesa Goa down 4.18%, ITC down 3.51%, Power Grid down 2.91%, M&M down 2.74% and BHEL down 2.42% were the top losers on the index.
The European markets were trading in red. France's CAC 40 down 0.31%, Britain's FTSE 100 down by 1.00%, and Germany's DAX down by 0.71%.
Sentiment continued to remain bearish in Asian region as all the Asian peers witnessed steep fall in today's session, pulled down by fresh concerns about Europe's ongoing debt woes following a weak Spanish bond auction. Spain's borrowing costs at a sale of 10-year debt soared to their highest in the euro's history on Thursday, pulling it back into the vortex of a crisis that is increasingly threatening Europe's second biggest economy France. The new 10-year Spanish bond was yielding 6.85 percent, with traders expecting more upward pressure before the country's elections on November 20, 2011.
Meanwhile,
Chinese Shanghai Composite snapped the session with a cut of about two
percent on Friday, the lowest level since late October, dragged down by
property shares while, Hong Kong shares fell over one and a half percent
on weakness in Chinese oil and financial giants, slumping to their
third-straight weekly loss, but losses were capped with benchmark
indices holding above technical supports. Moreover, Taiwan's benchmark
remained the top loser among the Asian peers, down by 2.08 percent to
close below 7,300 points as fears over the debt problems in the
euro-zone escalated.
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