Indian stock markets witnessed yet another session of
mayhem on the last trading day of the week as the benchmark indices got
butchered by over one and half a percentage points on a day when all
the European counterparts exhibited optimistic trends. The benchmark
indices showed some signs of recovery in mid-noon trading session but
the hefty across the board selling in dying moments dragged them around
the important psychological 4,850 (Nifty) and 16,200 (Sensex) bastions.
Investors globally remained worried after reports of disagreement at the
European Union summit as it failed to give any indications to prop up
the morale of markets across the globe. The European Central Bank
slashed interest rates for the second time in a little more than a
month, signaling that it wants to help slowing economies but poured cold
water on hopes that it would step up bond purchase. The ECB's move to
bolster the region's economy was also overshadowed as leaders were still
deeply divided over key elements of their crisis strategy. The gloomy
leads from Europe even led the investors to overlook encouraging US
employment data which indicated that US jobless claims fell by 23,000 to
381,000 last week. On the domestic front, Union Finance Minister said
that India's fiscal targets would be a challenge in a slowing domestic
economy and uncertain global environment and he also went ahead to
revise the GDP forecast downwards around 7.5% for the fiscal year ending
March 2012, sharply lower than the original estimate of 9%. Meanwhile,
investors also overlooked the reports that despite the ongoing debt
crisis in Euro-zone and economic slowdown in US, India's exports surged
to $22.3 billion in November while import in November 2011 stood at
$35.9 billion, narrowing trade deficit to $13.6 billion compared to
$19.6 billion in last month. Also, domestic car sales registered a
growth of 7% in November, after seeing negative sales growth for four
consecutive months, but worries persisted that the automakers will miss
out even on the modest growth forecast of 2-4% this fiscal.
Earlier on Dalal Street, the benchmark got off to a gap-down beginning tracking the somberness prevailing in Asian markets as investors chose to take profits off the table amid discouraging developments from the European front. After trading on a weak note in early trades, the indices showed some signs of recovery but it was short lived as hefty position squaring battered the key gauges to their lowest levels in early afternoon session. However, optimistic European market opening spurred some optimism in local bourses as investors started to cover the short positions to take the indices to intraday highs in mid noon trades. But bears had the last say as they stalled the resurgence of the benchmarks amid volatile trades, leading the indices to close around the day's lows. Eventually, the NSE's 50-share broadly followed index - Nifty, suffered large cuts of over one and half a percent, while Bombay Stock Exchange's Sensitive Index -Sensex- got pulverized by over two hundred fifty points. Moreover, the broader markets too settled on a pessimistic note with cuts of under a percent but outperformed their larger peers. On the BSE sectoral space, the Capital Goods counter continued to bear the maximum brunt and nosedived by around two and half a percent, being the top laggard in the space followed by the rate sesnsitive Auto pocket that sank over two percent. The markets advanced on larger volumes of over Rs 1.53 lakh crore while the turnover for NSE F&O segment too remained on the higher side as compared to Thursday at over 1.39 lakh crore. The market breadth remained pessimistic as there were 1040 shares on the gaining side against 1648 shares on the losing side while 160 shares remained unchanged.
Finally, the BSE Sensex plummeted by 274.78 points or 1.67% to settle at 16,213.46, while the S&P CNX Nifty shaved off 76.95 points or 1.56% to close at 4,866.70.
The BSE Sensex touched a high and a low of 16,382.57 and 16,142.32 respectively. The BSE Mid cap and Small cap index were down by 0.86% and 0.89% respectively.
The top gainers on the Sensex were coal India up 1.10%, Maruti Suzuki up 1.08%, Hindalco Industries up 1.00%, Jindal Steel up 0.62% and NTPC up 0.39%. While, Jaiprakash Associates down 4.67%, M&M down 3.62%, BHEL down 3.45%, Bajaj Auto down 3.36% and Sterlite Industries down 3.20% were the top losers on the index.
The top losers on the BSE sectoral space were, Capital Goods (CG) down 2.58%, Auto down 2.26%, Oil & Gas down 2.04%, Power down 1.80% and Realty down 1.31%, while there was no gainer on the BSE sectoral space.
Meanwhile, after reporting negative sales number for four consecutive months, domestic car sales posted a growth of 7% in November 2011. According to the data by Society of Indian Automobile Manufacturers (SIAM), car makers sold around 1, 71,131 units during last month compared to 1, 59,939 units in November 2010. However, according to SAIM this increase in growth in car sales is because of lower base for November 2010 and increase in demand.
"The growth in November is still not enough to revive the industry. We don't expect to meet our forecast of 2% to 4% growth in car sales for this fiscal and we may revise the forecast in January," Sugato Sen, senior director at SIAM, said.
Earlier in October, the SAIM has downgraded its growth outlook for car sales to 2%-4% from its earlier projection of 10%-12% in July and 16%-18% in April. This downgrade in projects shows the sector is under pressure due to the surge in fuel prices and high interest rates.
According to SAIM data, in November 2011 overall domestic sale of vehicles saw growth of 22.22% as compared to November 2010 and during April-November 2011, the overall domestic car sales grew by 13.08%.
Segment wise, the Passenger Vehicle segment in month of November grew by 8.30% as compared to November 2010. Despite the slowdown in economic activities the Commercial Vehicles segment saw growth of 34.99%. In November 2011, the Three Wheelers and Two Wheelers sales grew by 5.85% and 25.27% respectively.
The overall Commercial Vehicles segment registered growth of 19.95% during April-November 2011 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered growth of 9.39%, Light Commercial Vehicles grew at 29.26%. Three Wheelers sales recorded marginal growth of 0.37% in April-November 2011. While Passenger Carriers registered decline by -2.95% during April-November 2011, Goods Carriers registered growth of 15.34%. Two Wheelers registered a growth of 16.11% during April-November 2011. Mopeds, Motorcycles and Scooters grew by 10.99%, 14.87% and 23.40% respectively.
In November 2011, the overall automobile exports grew by 38.17%. During April-November 2011, overall automobile exports registered a growth rate of 30.68%. Passenger Vehicles registered growth at 21.15% in this period. Two Wheelers, Commercial Vehicles and Three Wheelers segments recorded growth of 31.09%, 25.95% and 44.21% respectively during the said period.
The S&P CNX Nifty touched a high and low of 4,918.35 and 4,841.75 respectively.
The top gainers on the Nifty were Reliance Power up 1.26%, Hindalco up 1.23%, Kotak Bank up 1.22%, Dr Reddy up 1.09% and Jindal Steel up 0.94%. On the flip side, SAIL down 5.65%, JP Associates down 4.89%, Siemens down 4.18%, M&M down 3.80% and Tata Power down 3.77% were the top losers on the index.
Chinese benchmark declined over half a percent after country's lower-than-expected inflation data failed to provide much of a sentiment boost around the region, despite hopes for further policy loosening, as it also spurred concerns over growth in the world's second-largest economy. China's consumer price index for November was up 4.2% on-year, compared with expectations for 4.4% and October's 5.5%. While, Nikkei fell about one and a half percent on Friday and tested key support at its 25-day moving average after steps by the European Central Bank to help Europe.
Earlier on Dalal Street, the benchmark got off to a gap-down beginning tracking the somberness prevailing in Asian markets as investors chose to take profits off the table amid discouraging developments from the European front. After trading on a weak note in early trades, the indices showed some signs of recovery but it was short lived as hefty position squaring battered the key gauges to their lowest levels in early afternoon session. However, optimistic European market opening spurred some optimism in local bourses as investors started to cover the short positions to take the indices to intraday highs in mid noon trades. But bears had the last say as they stalled the resurgence of the benchmarks amid volatile trades, leading the indices to close around the day's lows. Eventually, the NSE's 50-share broadly followed index - Nifty, suffered large cuts of over one and half a percent, while Bombay Stock Exchange's Sensitive Index -Sensex- got pulverized by over two hundred fifty points. Moreover, the broader markets too settled on a pessimistic note with cuts of under a percent but outperformed their larger peers. On the BSE sectoral space, the Capital Goods counter continued to bear the maximum brunt and nosedived by around two and half a percent, being the top laggard in the space followed by the rate sesnsitive Auto pocket that sank over two percent. The markets advanced on larger volumes of over Rs 1.53 lakh crore while the turnover for NSE F&O segment too remained on the higher side as compared to Thursday at over 1.39 lakh crore. The market breadth remained pessimistic as there were 1040 shares on the gaining side against 1648 shares on the losing side while 160 shares remained unchanged.
Finally, the BSE Sensex plummeted by 274.78 points or 1.67% to settle at 16,213.46, while the S&P CNX Nifty shaved off 76.95 points or 1.56% to close at 4,866.70.
The BSE Sensex touched a high and a low of 16,382.57 and 16,142.32 respectively. The BSE Mid cap and Small cap index were down by 0.86% and 0.89% respectively.
The top gainers on the Sensex were coal India up 1.10%, Maruti Suzuki up 1.08%, Hindalco Industries up 1.00%, Jindal Steel up 0.62% and NTPC up 0.39%. While, Jaiprakash Associates down 4.67%, M&M down 3.62%, BHEL down 3.45%, Bajaj Auto down 3.36% and Sterlite Industries down 3.20% were the top losers on the index.
The top losers on the BSE sectoral space were, Capital Goods (CG) down 2.58%, Auto down 2.26%, Oil & Gas down 2.04%, Power down 1.80% and Realty down 1.31%, while there was no gainer on the BSE sectoral space.
Meanwhile, after reporting negative sales number for four consecutive months, domestic car sales posted a growth of 7% in November 2011. According to the data by Society of Indian Automobile Manufacturers (SIAM), car makers sold around 1, 71,131 units during last month compared to 1, 59,939 units in November 2010. However, according to SAIM this increase in growth in car sales is because of lower base for November 2010 and increase in demand.
"The growth in November is still not enough to revive the industry. We don't expect to meet our forecast of 2% to 4% growth in car sales for this fiscal and we may revise the forecast in January," Sugato Sen, senior director at SIAM, said.
Earlier in October, the SAIM has downgraded its growth outlook for car sales to 2%-4% from its earlier projection of 10%-12% in July and 16%-18% in April. This downgrade in projects shows the sector is under pressure due to the surge in fuel prices and high interest rates.
According to SAIM data, in November 2011 overall domestic sale of vehicles saw growth of 22.22% as compared to November 2010 and during April-November 2011, the overall domestic car sales grew by 13.08%.
Segment wise, the Passenger Vehicle segment in month of November grew by 8.30% as compared to November 2010. Despite the slowdown in economic activities the Commercial Vehicles segment saw growth of 34.99%. In November 2011, the Three Wheelers and Two Wheelers sales grew by 5.85% and 25.27% respectively.
The overall Commercial Vehicles segment registered growth of 19.95% during April-November 2011 as compared to the same period last year. While Medium & Heavy Commercial Vehicles (M&HCVs) registered growth of 9.39%, Light Commercial Vehicles grew at 29.26%. Three Wheelers sales recorded marginal growth of 0.37% in April-November 2011. While Passenger Carriers registered decline by -2.95% during April-November 2011, Goods Carriers registered growth of 15.34%. Two Wheelers registered a growth of 16.11% during April-November 2011. Mopeds, Motorcycles and Scooters grew by 10.99%, 14.87% and 23.40% respectively.
In November 2011, the overall automobile exports grew by 38.17%. During April-November 2011, overall automobile exports registered a growth rate of 30.68%. Passenger Vehicles registered growth at 21.15% in this period. Two Wheelers, Commercial Vehicles and Three Wheelers segments recorded growth of 31.09%, 25.95% and 44.21% respectively during the said period.
The S&P CNX Nifty touched a high and low of 4,918.35 and 4,841.75 respectively.
The top gainers on the Nifty were Reliance Power up 1.26%, Hindalco up 1.23%, Kotak Bank up 1.22%, Dr Reddy up 1.09% and Jindal Steel up 0.94%. On the flip side, SAIL down 5.65%, JP Associates down 4.89%, Siemens down 4.18%, M&M down 3.80% and Tata Power down 3.77% were the top losers on the index.
The
European markets were trading in green. France's CAC 40 gained 0.99%,
Britain's FTSE 100 up by 0.01% and Germany's DAX up by 0.27%.
Sentiments remained bearish in Asian region and
all the regional indices butchered on fears that Europe's leaders will
not agree a deal to tackle their debt crisis as the first day of a
crucial summit broke up with plans for a full treaty change in tatters.
With the mood already soured by the European Central Bank (ECB) saying
it would not indefinitely buy the bonds of debt-wracked countries, news
of the split within the 27-nation bloc left investors' nerves on edge. Chinese benchmark declined over half a percent after country's lower-than-expected inflation data failed to provide much of a sentiment boost around the region, despite hopes for further policy loosening, as it also spurred concerns over growth in the world's second-largest economy. China's consumer price index for November was up 4.2% on-year, compared with expectations for 4.4% and October's 5.5%. While, Nikkei fell about one and a half percent on Friday and tested key support at its 25-day moving average after steps by the European Central Bank to help Europe.
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