Sensex escapes Asian crash; loses only 52 points

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Frontline Indian indexes escaped significant losses even as other Asian markets lost heavily today. The Indian economy is less reliant on exports as compared to other economies in the region and hence the decline in US dollar is not as disconcerting. Expectations about good quarterly results by large Indian companies also helped prevent a sell off.

Sensex closed with losses of 52 points at 13620 and the Nifty lost 14 points to end at 3998. Nifty April futures closed at a discount of 12 points to the spot index.

Technology stocks slipped further today, led by Satyam, which lost 2.99 per cent. Infosys lost 1.75 per cent and Wipro gave up 1.71 per cent.

Zee Entertainment was the worst performer among Nifty stocks as it corrected 4.43 per cent after the recent gains.

ACC lost 3.37 per cent, despite announcing better than expected Jan-March quarterly results.

HDFC slipped 1.96 per cent.

Bajaj Auto lost 2.03 per cent and M&M ended 1.61 per cent lower.

Among other major losers, BHEL gave up 1.94 per cent and Nalco lost 1.32 per cent.

Banking stocks did well today, led by SBI, which ended 1.86 per cent higher. PNB gained 1.08 per cent and ICICI Bank closed 0.69 per cent higher.

Select FMCG stocks remained firm. ITC added 1.4 per cent while Dabur added another 1.11 per cent.

Gail India closed 1.07 per cent higher and IPCL added 0.71 per cent.

Maruti, ABB and Graism were the other major Nifty gainers.

Global markets / crude oil
US markets were once again mixed yesterday as the broader indexes gained modestly on the back of goof corporate numbers and positive news flows. However, technology stocks remained subdued as results of some frontline technology companies disappointed.

The Dow gained 0.24 per cent to a record high and the S&P 500 index added more than 0.05 per cent. The weakness in technology stocks pulled down the NASDAQ by nearly 0.25 per cent.

Asian markets crashed today on concerns that the weak US dollar would affect exports from the region. Better than expected Chinese GDP growth led to fears of higher interest rates. Shanghai slumped more than 4.5 per cent while Singapore lost 3.2 per cent.

Hong Kong gave up 2.3 per cent as the weakness from mainland Chinese markets spread. Indonesia lost 2.1 per cent while Japan and Malaysia ended nearly 1.7 per cent each lower. Thailand lost nearly 0.75 per cent.

European markets once again opened weak, but have come off their lows. Major European indexes are trading with losses of between 0.55 per cent and 1.05 per cent each in afternoon trading.

Crude oil prices were mostly unchanged yesterday. Near month NYMEX futures ended just 3 cents higher at $63.13 per barrel yesterday and are trading with modest gains in European trading today.

Large-cap news flow

Mid-Cap Action
Mid-caps and small caps started the day with modest gains but slipped into the red in afternoon trading. The CNX Mid-cap index lost 3 points, or 0.06 per cent, to end at 5113. The BSE mid-cap index lost 0.02 per cent and the BSE small cap index closed 0.05 per cent lower.

Advanta India got listed on the exchanges today. Issued at Rs640 per share, the stock opened at Rs665 and saw a high of Rs1,000. It finally ended at Rs851.5.

VST Industries and Pyramid Saimira closed at 10 per cent upper circuits.

Tyre manufacturing stocks had a good day. JK Industries added 14.78 per cent and Ceat ended 9.53 per cent higher. Apollo Tyre ended 6.09 per cent higher.

Tata Tele Maharashtra rallied 7.47 per cent.

SB&T International, JK Industries, Adhunik Metaliks, India Glycols and Bihar Caustic were the other major gainers among mid and small-caps.

Sugar stocks came under fresh selling pressure. Bajaj Hindustan lost 6.56 per cent and Dharani Sugar lost 6.09 per cent. Simbhaoli Sugar ended 5.07 per cent lower.

India Bulls saw a decline and closed 4.96 per cent lower.

Steel Strips Wheels, Panorama Universal, Orient Press and IFB Agro were the other major losers among mid-cap and small-cap stocks.

Mid-cap news flow

Thomas White Global Research, part of the Thomas White International Group, publishes capital market research for global institutions and investment banks, and is headed by Thomas White, a former managing director of Morgan Stanley Asset Management.

*Disclaimer: Thomas White International may have recommended some of the stocks specifically mentioned in this report to our clients. Lord Asset Management Trust, our mutual fund management associate, and our asset management division may also have positions in some of the stocks specifically mentioned in this report. As a policy, employees of Thomas White International are not allowed to invest or trade in common stocks and common stock derivatives. This report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content, the author or publisher shall not be held responsible for any loss caused to any person whatsoever.