MARKETS CRUMBLE

Indian equity markets have extended their previous session's losses with Sensex slumped over 150 points breaching its crucial 16,200 mark. The domestic bourses crumbled in early trade tracking weakness in global stocks and the Indian currency. The rupee opened at a new record low of 56.50 against the dollar weighing down the sentiments. Global cues have been negative as investors turned their focus on Spain, where bond yields rose sharply. Moreover, all the Asian counters made a weak start and most of the indices are heading towards their biggest monthly drop since 2008. However, Japan's industrial production rising at 0.2 percent in March but, remaining much lower than estimated 0.5 percent weighed on the investors sentiments. Back home, markets may remain volatile today as traders will roll over positions from the near-month May 2012 series to June 2012 series. The May 2012 derivatives contracts will expire today. Moreover, the investors are also eying fourth quarter GDP data, which will be announced later in the day. Street expecting fourth quarter GDP to grow at 6.1%, the slowest in three years. All the sectoral indices on the BSE traded lower. Consumer durables, auto, banking, capital goods, oil and gas and realty stocks were witnessing the selling pressure in early trade. Moreover, the broader indices too were struggling to get some traction and the market breadth on the BSE was negative; there were 430 shares on the gaining side against 817 shares on the losing side while 48 shares remained unchanged. 

The BSE Sensex opened at 16,224.86; about 88 points higher compared to its previous closing of 16,312.15, and has touched a low of 16,134.83 while high remain its opening.

The index is currently trading at 16,144.40 down by 167.75 points or 1.03%. There were only 3 stocks advancing against 27 declines on the index.

The overall market breadth has made a negative start with 33.20% stocks advancing against 63.09% declines. The broader indices too were trading in the red; the BSE Mid cap and Small cap indices declined 0.48% and 0.32% respectively.

The major losing sectoral indices on the BSE were, CD down by 1.80%, Auto down by 1.50%, Bankex down by 1.38%, Oil and Gas down by 1.15% and Realty down by 0.77%, while there were no gainers on the index.

The few gainers on the Sensex were Hindalco up by 4.33%, GAIL up by 0.68% and Bharti Airtel up by 0.03%.

On the flip side, Tata Motors was down by 3.51%, ICICI Bank was down by 3.30%, Maruti Suzuki was down by 3.03%, Tata Steel was down by 1.77% and Reliance Industries was down by 1.61% were the top losers on the Sensex.

Meanwhile, a substantial fall in the non-oil imports of India will lead to a decline in current account deficit, stated a report by financial services firm - Nomura. This is expected due to the depreciation of the rupee which will make imports costlier, slumping commodity prices and subdued investment inflows.

India's current account deficit stood at an uncomfortable 4% of GDP. This was mainly due to the high prices of global crude oil whose imports totaled to $150 billion and diminishing exports. Also the non oil imports like gold, capital goods, coal, fertilisers and other metals contributed to the CAD significantly. In-fact imports of gold stood at $55 billion. The government in an attempt to discourage its imports of gold increased the import duty on it. As a result gold import is set to fall further with rising prices and taxes.

In FY12 the non oil imports grew by 24% and by 31% in FY11. However now as per Nomura, it is expected that this number will come down to a single digit. Infact the report cited that the non-oil commodity price growth will remain flat in FY13. Further the rising rupee will make imports costlier leading to greater focus on domestic production. A subdued investment demand is further expected to reduce the imports of non oil commodities.

The S&P CNX Nifty opened at 4,896.10; about 54 points lower compared to its previous closing of 4,950.75, and has touched a high and a low of 4,908.45 and 4,894.45 respectively.

The index is currently trading at 4,901.05, lower by 49.70 points or 1.00%. There were only 8 stocks advancing against 42 declines on the index.

The top gainers of the Nifty were Hindalco up by 4.50%, BPCL up by 0.83%, IDFC up by 0.58%, Reliance Infra up by 0.40% and GAIL up by 0.34%.

On the flip side, Tata Motors down by 3.41%, ICICI Bank down by 3.34%, Maruti Suzuki down by 3.21%, Tata Steel down by 1.72% and Sterlite Industries down by 1.68%, were the major losers on the index.

All the Asian equity indices were trading in the red; Shanghai Composite declined 11.01 points or 0.46% to 2,373.66, Hang Seng Index plunged 233.68 points or 1.25% to 18,456.54, Jakarta Composite got clobbered by 91.71 points or 2.34% to 3,826.20, KLSE Composite eased 2.05 points or 0.13% to 1,573.12, Nikkei 225 plummeted 138.90 points or 1.61% to 8,494.29, Straits Times Index dropped 15.59 points or 0.56% to 2,768.36, KOSPI Composite Index sank 23.84 points or 1.29% to 1,821.02 and Taiwan Weighted slumped 83.01 points or 1.14% to 7,178.79.