We expected a small bounce back yesterday before a bigger decline. This has not happened. Is a big vicious decline on the cards?

The market closed lower as the government lowered its GDP growth estimate for the current fiscal to 5%. We expected a small bounce back yesterday before a bigger decline. This has not happened. Is a big vicious decline on the cards?

The National Stock Exchange (NSE) saw a volume of 67.39 crore shares and advance-decline ratio of 966:1062.

The market opened marginally lower on cautiousness ahead of the GDP estimate for the current fiscal later in the day. Markets in Asia were mostly lower on lower-than-expected forecasts from corporates and nervousness ahead of the outcome of the European Central Bank’s meeting later today. US markets closed flat overnight on profit booking after the recent gains.

The Nifty opened 23 points down at 5,936 and the Sensex resumed trade at 19,589, a cut of 51 points from its previous close. Buying activity in early trade soon lifted the indices into the positive terrain. Gains in IT, technology and realty stocks led the market to its high in mid-morning trade. At the highs, the Nifty rose to 5,979 and the Sensex climbed to 19,703.

However, the lower estimate of the country’s GDP at 5% for the current fiscal by the Central Statistical Organisation weighed on the market, which then witnessed a downward trend. Across-the-board selling led the indices further southwards in noon trade. International investors are awaiting announcements from the ECB and the Bank of England on policy rates.

Feeble recovery attempts were thwarted by strong selling pressure. The benchmarks fell to their lows around 2.30pm with the Nifty falling to 5,928 and the Sensex going back to 19,540.

The benchmarks settled near the lows weighed down by the government’s downward revision of the economic growth estimate for the current fiscal. The Nifty closed 20 points (034%) lower at 5,939 and the Sensex dipped 59 points (0.30%) to 19,580.

The broader indices were punished in today’s trade, as the BSE Mid-cap index declined 0.88% and the BSE Small-cap index dropped 1.34%.

The sectoral gainers were BSE IT (up 0.63%); BSE Auto (up 0.30%) and BSE Fast Moving Consumer Goods (up 0.03%). The main losers were BSE Consumer Durables (down 3.34%); BSE Realty (down 1.47%); BSE Power (down 1.39%); BSE Metal (down 1.16%) and BSE Capital Goods (down 1.12%).

Twelve of the 30 stocks on the Sensex closed in the positive. The chief gainers were Mahindra & Mahindra (up 1.26%); TCS (up 1.20%); Tata Motors (up 0.89%); Infosys (up 0.56%) and Coal India (up 0.47%). The top losers were Sterlite Industries (down 2.92%); NTPC (down 2.72%); Cipla (down 2.61%); GAIL India (down 2.29%) and Bharti Airtel (down 2.08%).

The top two A Group gainers on the BSE were—Hexaware Technologies (up 3.73%) and Jubilant Foodworks (up 3.41%).

The top two A Group losers on the BSE were—Strides Arcolabs (down 12.52%) and Titan Industries (down 5.16%).

The top two B Group gainers on the BSE were—Sankhya Infotech (up 19.60%) and Ennore Coke (up 16.50%).

The top two B Group losers on the BSE were—20 Microns (down 19.99%) and Jay Mahesh Infra (down 19.98%).

Out of the 50 stocks listed on the Nifty, 18 stocks settled in the positive. The major gainers were Power Grid Corporation (up 2.42%); IDFC (up 1.75%); M&M (up 1.37%); ACC (up 1.19%) and TCS (up 1.13%). The key losers were Reliance Infrastructure (down 4.63%); Sesa Goa (down 3.01%); Bank of Baroda (down 2.94%); Ambuja Cement (down 2.84%) and NTPC (down 2.70%).

Most markets in Asia lower on worries that the Chinese government might put in additional curbs to rein in property prices. Sentiment was weak as investors wait for a policy decision from the ECB later in the day.

The Shanghai Composite declined 0.66%; the Hang Seng fell 0.34%; the Nikkei 225 dropped 0.93%; the Straits Times contracted by 0.45% and the Seoul Composite tumbled 4.42%. On the other hand, the Jakarta Composite added 0.09%; the KLSE Composite rose 0.345 and the Taiwan Weighted settled 0.25% higher.

At the time of writing, the key European markets were up between 0.12% and 0.35% and the US stock futures were trading with minor gains.

Back home, foreign institutional investors were net buyers of equities totalling Rs1,137.95 crore whereas domestic institutional investors were net sellers of shares amounting to Rs1,224.07 crore on Wednesday.

Bharat Forge, belonging to the Kalyani Group, and lbit Systems Land and C41, a wholly-owned subsidiary of Elbit Systems of the US, have announced the establishment of a joint venture company to address the needs of the Indian ministry of defence and other potential Indian customers’ requirement for the most advanced artillery and mortars systems solutions. The stock gained 0.92% to close at Rs225.90 on the NSE.

Cholamandalam Investment and Finance Company has decided to raise Rs300 crore through the Qualified Institutional Placement (QIP) route. The company has set the floor price of the issue at Rs279.69 per share, it said in its filing with the exchanges. The stock closed at Rs288 on the NSE, down 0.02% from its previous close.