Indian markets are now battling massive fear across the world. Rallies will be sold
We had mentioned in Monday’s closing report that Nifty and Sensex are making an attempt to stabilise and rise, but a rally will materialise only if Nifty closes above 8270.
Today the market opened lower and started to move sharply down. Every attempt to revive was met with further selling. The indices made the highest losses today since 8 July 2014.
Sensex opened at 27,181 and hit a high almost at the same time at 27,199. Nifty opened at 8,173 and reached up to 8,189. The indices moved lower to hit a low at 26,736 and 8,053. Sensex closed at 26,781 (down 538 points or 1.97%) while Nifty closed at 8,068 (down 152 points or 1.85%). NSE recorded a higher volume of 102.38 crore shares. India VIX rose 16.32% to close at 16.3075.
India's merchandise exports rose 7.27% to $25.96 billion in November 2014 over November 2013, data released by the Ministry of Commerce & Industry after trading hours yesterday showed. Imports jumped 26.79% at $42.82 billion in November 2014 over November 2013. The trade deficit rose sharply to $16.86 billion in November 2014, from $9.57 billion in November 2013.
India's gold imports in November reached 151.58 tonnes, according to data provided by India's trade ministry on Tuesday, marking a 38% increase from 109.55 tonnes in October.
A fall in oil prices favours airlines and Jet Airways (7.20%) was the top gainer in ‘A’ group on the BSE. The Indian rupee slumped to low of 63.45 per dollar in the early trade today. This is the weakest level in past 11 months. IT stocks were among the major gainers today. HCL Technologies (4.58%), TCS (3.40%) and CMC (2.48%) were among the top four gainers in the group. TCS was at the top in the Sensex 30 pack followed by Infosys (0.69%).
Reserve Bank of India on Monday eased rules for long-term loans by banks to the infrastructure sector and heavy industry. The RBI said only loans where the combined exposure by lenders in a single project is more than Rs 500 crore would be eligible under the eased regulations. Unitech (10.75%) was among the top two losers in ‘A’ group on the BSE. Sharp fall in the crude oil price brought Sesa Sterlite (7.77%) to the bottom of the Sensex 30 stocks.
On Monday US indices closed in the red. US manufacturing output recorded its largest increase in nine months in November as production expanded across the board, pointing to underlying strength in the economy. Factory production rose 1.1% after advancing 0.4% in October, the Federal Reserve said on Monday.
Most of the Asian indices closed in the red. Nikkei 225 (2.01%) was the top loser. China's flash manufacturing purchasing managers' index from HSBC Holdings Plc and Markit Economics fell to 49.5 for December, from 50 last month. It's the first time since May that the gauge has slipped below 50, the threshold between expansion and contraction.
In a move to try to arrest the rouble's crash, Russia's central bank made a drastic interest rate move overnight, raising its key rate from 10.5% to 17%.
European indices were showing mixed trading. US Futures were trading sharply lower.
The PMI data out of Germany showed multi-month lows for the services and composite PMIs, but the manufacturing PMI rose to 2-month high. France's manufacturing PMI fell to a four-month low.