The market indices broke all recent supports today. Any rally will be met by selling
A clutch of weak corporate earnings and the persistent European debt issues led the market lower for the fourth day in a row. While trying to hold on to yesterday’s close throughout the morning session, the Nifty had a free-fall in the post noon session. The index hit a 14-day intraday low today (including today) and closed in the negative. The indicators show the fall to continue. However, if today’s low holds, the index may see a bounce back to 5,125-5145 at the fresh selling will emerge, or else the fall may continue to reach till 5,020. The National Stock Exchange witnessed a volume of 61.61 crore shares.
Extending its decline into the fourth day, the market opened weak on subdued corporate earnings reports and weak global cues as a surge in Eurozone bond yields stoked fresh concerns that a resolution to debt crisis plaguing the continent is yet to be worked out. The Nifty opened at 5,131, down 17 points from its previous close, and the Sensex declined 37 points to start the day at 17,082. Realty, banking auto and IT sectors were under pressure in early trade.
The indices hit their intraday high in the first hour with the Nifty touching 5,159 and the Sensex going up to 17,172. The market soon entered the negative territory as higher levels led to profit booking.
Trading in a narrow range, the market witnessed a high degree of volatility with the benchmarks hovering on both sides of the neutral line till the post-noon session. A sharp sell-off, which began around 1.45pm after the European indices opened lower, pushed all sectoral gauges into the red with the realty sector as the top loser.
The market fell to the day’s low towards the fag end of the session with the Nifty going down to 5,053 and the Sensex going below the 17,000 mark at 16,838. Closing slightly above those levels, the Nifty lost 80 points at 5,069 and the Sensex settled at 16,883, down 236 points.
The advance-decline ratio on the NSE was a dismal 226:1518.
The broader indices underperformed the Sensex today as the BSE Mid-cap index skidded 2.58% and the BSE Small-cap index plunged 2.77%.
All sectoral indices settled lower with the BSE Realty index (down 5.22%) emerging as the biggest loser. It was followed by BSE Capital Goods (down 2.77%); BSE Power (down 2.14%); BSE Bankex (down 2.02%) and BSE Consumer Durables (down 1.91%).
Cipla (up 6.51%); Tata Motors (up 1.91%) and HDFC Bank (up 0.23%) were the top performers on the Sensex. The top losers were DLF (down 6.66%); Jaiprakash Associates (down 5.84%); Mahindra & Mahindra (down 3.97%); ICICI Bank (down 3.70%) and Larsen & Toubro (down 2.81%).
The major gainers on the Nifty were Cipla (up 6.30%); Tata Motors (up 2.14%) and Grasim Industries (up 0.30%). The losers were led by DLF (down 7.43%); JP Associates (down 6.89%); Reliance Communications (down 5.26%); Siemens (down 4.84%) and Axis Bank (down 4.24%).
Markets in Asia settled lower following a surge in Eurozone bond yields overnight, igniting fresh worries that the European debt crisis might spread to other nations in the continent. A remark by German finance minister Wolfgang Schaeuble that Europe’s permanent bailout fund may not come into force before 2013 also added to the woes.
The Hang Seng declined 1.82%; the Jakarta Composite fell 0.50%; the KLSE Composite shed 0.11%; the Nikkei 225 slipped 0.72%; the Straits Times was down 0.66%; the Seoul Composite fell 0.88% and the Taiwan Weighted settled 0.46% lower. Bucking the trend, the Shanghai Composite added 0.04%.
Back home, foreign institutional investors were net buyers of stocks totalling Rs321.62 crore on Monday. On the other hand, domestic institutional investors were net sellers of equities aggregating Rs9.30 crore.
Promoters of FMCG major Dabur India, the Burman family, has formed a joint venture with global investment banking firm Espirito Santo Investment Bank (ESIB) for equity research brokerage businesses in India. ESIB said in a statement that the new joint venture—Espirito Santo Securities—will be its subsidiary. The stock declined 3.05% to close at Rs96.90 on the NSE today.
State-run exploration giant ONGC plans to spend Rs2,200 crore in phases for increasing output from its ageing oilfields located in Ankleshwar and Gandhar in Gujarat. These oilfields account for 25% of total onshore production of the country. The stock fell 0.90% to settle at Rs258.85 on the NSE.
Strides Arcolab’s US subsidiary Onco Therapies has received approval from the USFDA for marketing a generic carboplatin injection for the treatment of ovarian cancer. The approval is for carboplatin injections in strengths of 10 mg/ml, packaged in 50 mg/5 ml, 150 mg/15 ml, 450 mg/45 ml and 600 mg/60 ml multi-dose vials. Strides gained 0.82% to close at Rs416 in the NSE.
Investigation into financial scandals never leads to logical punitive action
Under the DRI scheme, SBI will disburse loans ranging between Rs5,000 and Rs15,000 at 4% interest rate. The beneficiaries would have to repay the loans in 16 months
Dehra Dun: State Bank of India (SBI), the country's largest lender, today reactivated its differential rate of interest (DRI) scheme to provide loans to weaker sections as part of the financial inclusion programme, reports PTI.
Under the scheme, SBI provided loans to nearly 1,500 people to start entrepreneurial projects with the Uttarakhand government and urged other banks to come forward to launch similar schemes.
Loans ranging between Rs5,000 and Rs15,000 would be disbursed under the DRI scheme, said SBI officials, adding that the interest rate would be 4% in this regard.
SBI has given the beneficiaries 16 months to repay the loans, they said.
The bank also launched a pilot mobile van for providing banking services in the remote areas of the state. It will be fitted with biometric cards and driven by business correspondents.
“Under the financial inclusion programme, this van will be stationed on the roadside of a village where people will be provided banking facilities through biometric cards,” said Jyotish Ghildyal, chief manager of SBI here.
Welcoming the scheme, principal secretary finance of the Uttarakhand government Alok Kumar Jain urged the banks to play vital role in providing true financial independence in the country. Mr Jain also exhorted the self-help groups and NGOs to come forward and take benefits of these programme.
Mr Jain also complimented the SBI for launching the pilot mobile van and expressed hope that more such vans would be launched in all the remote areas of the state.