Mumbai: Indian markets closed on a negative note with the 30-share BSE Sensex dropping more than 350 points, The Sensex closed at 15491.35, down by 345.12 points and the 50-share NSE Nifty was at 4651.60, down by 94.75 points.
The BSE Capital Goods, Realty, Bank, Power, Metal and Oil & Gas indices fell 2.5-4.6 per cent.
Among the largecaps, L&T, Sterlite Industries, TCS, Jaiprakash Associates, DLF, Axis Bank and Reliance Communications were biggest losers, falling between 4 per cent and 5 per cent.
However, only Cipla, Bharti Airtel, GAIL and Dr Reddy'ss Labs were in the green.
The market breadth turned in favour of declines; More than two shares slipped for every share rising on the BSE.
In the midcap space, S Kumars Nationwide, BGR Energy, Deccan Chronicle, Delta Corp and Arvind crashed 10-14.5 per cent while Apollo Hospital, HMT, Bombay Rayon, Hindustan National Glass and Bajaj Finserv were up 3-9 per cent.
Smallcap stocks like Unichem Labs, Spanco, Lloyds Metals, Astral Poly and INOX Leisure gained 6-16 per cent whereas Pratibha Industries, Bartronics, Garware Poly, IVRCL and Future Capital plunged 10-18 per cent.
At 14:50 hours IST : Nifty slips below 4700; L&T, BHEL, Reliance falter
The Nifty gave up all its early-afternoon gains, and slipped below the 4700-mark, to 4,678.35. The Bank Nifty lost more than 3 per cent from day's high while capital goods, metals, realty and select technology stocks added to the market woes. Index heavyweight Reliance Industries too was down 2.7 per cent.
The Sensex shed more than 350 points from day's high, which fell 240 points to 15,597.10.
Shares of L&T crashed 4.4 per cent and BHEL over 3.5 per cent on slowdown worries. These stocks were up earlier on hopes that RBI might do something to improve growth with perhaps a cash reserve ratio cut, which of course did not happen.
Experts feel that the third quarter numbers of infrastructure companies would be bad.
Meanwhile, the Reserve Bank insisted that downside risks to growth have clearly increased.
Among other major losers SBI, HDFC Bank and ICICI Bank were down 1.5-2.5 per cent.
In the metal space, Sterlite Industries tumbled 5 per cent; Tata Steel and Coal India fell 2.4 per cent.
ITC, TCS, HDFC, M&M, Sun Pharma, NTPC, Sun Pharma, Hero Motocorp, JSPL, Bajaj Auto and Wipro lost 1-1.7 per cent.
Only five stocks, namely ONGC, Bharti, Infosys, Tata Motors and Cipla were trading in the green.
At 13:53 hours IST : Sensex turns flat; capital goods, metals, banks down
The Sensex wiped out almost all gains led by profit booking in capital goods, banks and metals stocks. European markets too lost their early gains. The Sensex gained just 17 points at 15,853.30, after losing over 200 points from day's high. Meanwhile, the Nifty rose just 8 points to 4,753.95.
Nilesh Shah of Axis Direct said the developments on the local and global fronts will drive the markets ahead than the credit policy. He also said that the market wasn't expecting a rate cut so it is not be disappointed.
The Reserve Bank of India kept policy rates and CRR unchanged, but in a release it says, further rate hikes may not be warranted. "Further monetary policy is likely to reverse cycle," RBI said.
Shares of capital goods major L&T tumbled over 2 per cent while BHEL was down just 0.2 per cent. In the banking space, ICICI Bank, HDFC Bank and SBI went down 0.8-1 per cent.
Metal stocks too lost their shine; Coal India, Tata Steel and Sterlite dropped 1-1.5 per cent. Index heavyweights Reliance Industries and TCS slipped 0.5 per cent and 1.7 per cent, respectively.
However, ONGC, Tata Motors, Cipla and Bharti Airtel gained 2-3 per cent. Infosys, ITC and HUL were up 1 per cent each.
At 12:37 hours IST : Market off day's high on RBI's status quo
The market slipped from day's high after the RBI kept rates steady in his mid-quarter monetary policy review. Maintaining status quo, RBI has kept CRR, SLR, Repo and Reverse Repo rates unchanged.
Banks and auto stocks reacted to the policy and came off day's high while capital goods stocks turned negative. The Sensex was up 73 points at 159,09.10 and the Nifty rose 23 points to 4,769.65.
The Reserve Bank of India kept CRR unchanged at 6 per cent (the money banks have to necessarily park with the RBI), SLR at 24 per cent (money which every bank has to maintain in the form of cash, gold or approved securities), repo rate (at which banks borrow money from RBI) at 8.5 per cent, and even reverse repo rate (at which RBI borrow money from banks) remains unchanged at 7.5 per cent.
The central bank insisted that downside risks to growth have clearly increased and inflation is still above comfort level. But as a sigh of relief, it says, further rate hikes may not be warranted. "Further monetary policy is likely to reverse cycle."
According to SBI, RBI pausing on rates is a big positive for banks and growth emerging as priority for RBI is good for industry.
Shares of ICICI Bank was up 0.4 per cent while HDFC Bank fell 0.5 per cent. SBI lost 0.7 per cent. Capital goods majors L&T and BHEL were down 1.56 per cent and 0.26 per cent, respectively.
Infosys, Bharti, ITC, ONGC, Tata Motors and HUL gained 1-3 per cent, which was quite supportive. Reliance Industries too maintained uptrend.
At 11:38 hours IST : Sensex gains 200 pts ahead of RBI policy; Bharti up 4 per cent
The market extended the rally ahead of mid quarter review of monetary policy from the Reserve Bank of India today. The upmove was majorly led by banks, telecom, FMCG, auto and power stocks. The Sensex was up 201.5 points at 16,038 and the Nifty gained 63.75 points at 4,810.10.
After looking at inflation at 9 per cent level, experts firmly believe that the RBI won't consider cutting any policy rates and cash reserve ratio
Sanjeev Prasad, executive director and co head, Kotak Institutional Equities also expects Reserve Bank of India (RBI) to keep policy rates unchanged today. Speaking to CNBC-TV18, he said that it is unlikely for RBI to cut CRR today.
Shares of Bharti Airtel, Tata Motors, Bajaj Auto, Tata Power, M&M, Reliance Power and Dr Reddy's Labs were biggest gainers, rising 2.5-4 per cent.
However, Wipro and TCS topped the selling list due to appreciation in the rupee, falling 1-1.6 per cent. The Indian rupee gained 94 paise at 52.7 to the dollar.
Mohan Shenoi of Kotak Mahindra Bank indicated that rupee's recovery is along expected lines. The near-term range on the rupee is at about Rs 52-53.50 per dollar levels, he pointed out.
HCL Tech, Grasim and Sun Pharma were down 0.3-0.7 per cent.
Most active shares on exchanges were SBI, Godrej Properties, L&T, Apollo Hospital, Reliance Industries, Infosys, ICICI Bank and Tata Motors.
In the second line shares, Apollo Hospital, HMT, Bombay Rayon, Cox & Kings and Manappuram General gained 5-9 per cent while Kwality Dairy, Lakshmi Machine, KSK Energy, BGR Energy and S Mobility lost 2.5-5 per cent.
The market breadth too was strong; about two shares gained for every one share falling on the BSE.
At 10:33 hours IST : Nifty hits 4800; all sectoral indices up except tech
Further appreciation in rupee helped the Nifty touch 4800-mark and the Sensex above 16000-level. All sectoral indices were in a positive terrain barring technology. Even global markets were quite supportive; Asian markets gained 0.4-1 per cent after positive US economic data. The Sensex was up 165.72 points at 16,002.19 and the Nifty gained 53 points at 4,799.35. The market was witnessing some volatility ahead of RBI policy.
RBI announced some measures on Thursday to avoid speculation in the currency, which made the rupee more volatile in last few sessions. The Reserve Bank imposed restrictions with immediate effect on forward trading in the local currency by FIIs and traders. The central bank also capped banks exposure to the forex market.
The Indian rupee rose by 2.05 per cent to 52.54 a dollar and gained 1.65 per cent to 68.51 an euro. It seems good appreciation from a record low of 54.29 to the dollar touched yesterday.
The Reserve Bank will announce mid quarter review of monetary policy today. Experts don't expect any cut in policy rates and even feel the central bank won't change cash reserve ratio.
Shares of telecom major Bharti Airtel, which crashed 4 per cent yesterday, gained 3.5 per cent on short covering.
Among others, ITC, ICICI Bank, HDFC Bank, HUL, Tata Motors, ONGC, SBI, BHEL and NTPC moved up 1.5-2.5 per cent. HDFC, Reliance Industries and L&T were up 0.5-0.8 per cent.
However, shares of software services exporters turned negative after sharp appreciation in the rupee since yesterday. TCS and Wipro fell 1.5 per cent while Infosys lost 0.4 per cent.
At 9:19 hours IST : Sensex gains 150 pts; rupee rises to 52.67/ $
The Sensex rebounded with more than 100 points gains on Friday after sharp appreciation in the rupee. Even globally, the US economic data and Spanish bond auction improved sentiments on Thursday. At the moment, all eyes are on the RBI's mid-quarter review of monetary policy expected today at 12 noon.
The Sensex was up 148.6 points at 15,985.07 and the Nifty was trading at 4,791.95, up 45.60. Banks, capital goods, telecom, auto and metals stocks gained.
Shares of frontline companies like Tata Power, Tata Motors, SBI, BHEL, Sesa Goa, SAIL, Hindalco, M&M, JP Associates, Reliance Power, Reliance Communications, Bharti Airtel, DLF, HDFC and Coal India
However, Infosys, TCS, HCL Tech on sell-off mode following sharp appreciation in the rupee after RBI intervention.
The RBI on Thursday reduced net open position limits for dealers in forex market. The Indian rupee appreciated by 97 paise to 52.67 a dollar in the morning trade.
The CNX Midcap moved up 48 points to 6,446.
In the second line shares, Sintex Industries, Titan Industries, Indiabulls Real, GVK Power, Pantaloon Retail, Suzlon and Manappuram General gained 1-2.5 per cent.
HMT shot up 6 per cent post the company submited a revival plan of Rs 981 crore to government yesterday.
Apollo Hospital was up 5 per cent. Shares of power projects financiers - REC and PFC were up 3 per cent each.
Shares of airline companies were on buyers' radar after reports that IOC cut domestic Jet fuel prices by Rs 920/kl. Jet Airways jumped 3 per cent and SpiceJet up 5 per cent.
However, Bartronics crashed 18 per cent. Edserv, Mcleod Russel and Essar Oil were down 1.5-4 per cent.
Global cues
Asian markets bounced back, which were marginally higher following positive US economic data.
The Dow Jones Industrial Average ended up 0.4 per cent at 11,869. The S&P 500 Index rose 0.3 per cent to 1,215.7 and Nasdaq Composite was up 2 points at 2,541.
The US jobless claims went down to a 3.5-year low in the last week. It fell by 19000 to 366000 - lowest since May 2008.
Factory activity in US North East showed significant improvement.
Even Spain managed to sell over Euro 6 billion versus a targeted maximum of Euro 3.5 billion of bonds.
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