The BSE Sensex snapped four-day winning streak on Thursday, losing as much as 297 points intraday after the RBI maintained a dovish tone in its monetary policy review today that left policy rates unchanged. Profit booking ahead of a big event like Union Budget 2012-13 (tomorrow) may be another reason for driving the Nifty below 5400 level.
A section of the market was expecting rate cut announcement and was visibly disappointed. The rest said the non-event was already factored in. The central bank said high inflation, high fiscal deficit, rupee depreciation and high oil prices globally forced it to refrain from cutting policy rates. Prime Minister's economic advisory panel chief maintained that close to 7% inflation was very discomforting. Economic Survey said the Indian rupee depreciated by 12.4% on monthly basis in FY12 (it fell by 40 paise to 50.31/USD today) and the Brent crude is trading around USD 125 a barrel.
Market experts remain sceptical about rate cut in next policy meet as well, which is scheduled to be announced on April 17. They believe rate cut will be possible only if oil prices start falling.
Morgan Stanley is of the opinion that equity market participants were disappointed with the decision and expects a rate cut to come in April, depending upon crude prices.
The 30-share BSE Sensex fell 243.45 points or 1.36%, to close at 17,675.85, weighed down by 22 components. Meanwhile, the 50-share NSE Nifty shed 83.40 points or 1.53% to 5,380.50 led by sell-off in banks & financials, oil & gas, capital goods, realty and telecom stocks.
Now the market is eyeing Union Budget with lot of expectations. Consensus estimates for fiscal deficit for FY12 stands at 5.1-5.4% and net borrowing in the range of Rs 4.2-4.5 lakh crore.
All sectoral indices ended in the red barring technology. The BSE Realty and Bankex tanked 2.6% each while Capital Goods and Oil & Gas indices lost 2%.
Country's largest lenders SBI and ICICI Bank slipped 2-2.5% while rival HDFC Bank was down 3%. Housing finance company HDFC declined 2%.
Oil & gas producers and index heavyweights Reliance Industries and ONGC were down 2-2.5%. Capital goods majors L&T and BHEL dropped 2-3%.
Realty firm DLF tumbled nearly 5%. Anil Dhirubhai Ambani Group's stocks Reliance Communications and Reliance Power were down 5% & 2.5%, respectively after the NSE said it would remove both stocks from Nifty 50 w.e.f. April 27.
In the second line shares, infrastructure, banks and shipping stocks were down while aviation stocks outperformed the market.
Titan Industries, Sintex, Syndicate Bank, Andhra Bank, GE Shipping, Punj Lloyd, IVRCL, Allahabad Bank and HCC were down 4-6%.
However, Educomp Solutions shot up 4.5% ahead of Union Budget.
Aviation stocks witnessed huge buying interest today - Jet Airways was up 1.8%, SpiceJet jumped 6% and Kingfisher Airlines gained 4.8%.
The broader markets fell 1-1.4% and declining shares outnumbered advancing in the ratio of 3:1.
At 15:09 hours IST: Sensex in bear grip; rupee declines to 50.31/USD
The BSE Sensex shed 250 points while the NSE Nifty was trading below the 5400 level since the RBI's monetary policy review. The market breadth was pathetic, about three shares declined for every share rising on the NSE.
Among frontliners, shares of DLF topped the selling list, falling over 5% after the Reserve Bank of India has maintained status quo and left rates unchanged.
Anil Dhirubhai Ambani group's stocks - Reliance Communications and Reliance Power tanked 5% and 4%, respectively. The National Stock Exchange yesterday said it would remove these stocks from Nifty 50 and would add Asian Paints and Bank of Baroda.
The BSE benchmark fell 264 points to 17,655.50 and the NSE benchmark was down 90 points to 5,374.
IDFC, Reliance Power, Jaiprakash Associates, BHEL, HDFC Bank, L&T and Coal India were down 3-4.5%.
The Indian rupee extended its fall to 50.31 a dollar, down by 40 paise.
At 14:42 hours IST: Sensex slips 1.5%; aviation stocks outperform
The BSE Sensex stayed sharply lower, losing over 1.5% due to consistent fall in index heavyweights Reliance Industries, ICICI Bank, SBI and L&T. Experts still worried about rate cut in next policy meet in April after today the RBI left rates unchanged, which was on expected lines.
While explaining about the market mood, Sandeep Shah of Sampriti Capital said, "The market was hoping that there would be rate cut in the next credit policy in April, but at this stage it is uncertain whether we will see a repo rate cut even in April because what the RBI has said is that there are a lot of concerns (high inflation, high fiscal deficit etc) and there are a lot of clouds. That is the reason why the markets have corrected, but it is broadly in the price now what the RBI has said."
The BSE benchmark was trading at 17,630.5, down 289 points and the NSE benchmark moved down 97 points to 5,367, weighed down by 44 components.
Major components among 30-share Sensex like Reliance Industries, ICICI Bank, HDFC Bank, ITC, HDFC, Larsen & Toubro, SBI, ONGC and BHEL plunged 2-3.7%.
However, Tata Motors, HUL, TCS, GAIL and NTPC bucked the trend, gaining 0.2-1%.
Aviation stocks like SpiceJet, Jet Airways and Kingfisher Airlines gained 2-6%.
The market breadth remained in favour of declines; about three shares have fallen for every share rising on the National Stock Exchange.
In the second line shares, Sintex Industries, Syndicate Bank, IVRCL, Allahabad Bank, Andhra Bank, Punj Lloyd, MTNL, HCC, Unitech, IDBI Bank, Shipping Corporation and GE Shipping were down 4-6%.
At 13:53 hours IST: Sensex nosedives; Mangalore Chemical shoots up 11%
The BSE Sensex continued to trade with 250 points loss, pulled down by oil & gas, banks & financials, capital goods and realty stocks. The market looked sceptical about rate cut in next policy meet as well after RBI's dovish tone saying inflation is still above comfort level due to high crude oil prices and even fiscal deficit is still high. The RBI today kept rates unchanged. Overall inflation currently stands above 7% level.
The BSE Bankex tanked 2.6% or 326 points to 12,202 as country's largest lenders SBI and ICICI Bank fell 2.4% each while rival HDFC Bank was down 2.9%.
The 30-share Sensex tumbled 274 points to 17,665.58, led by 22 components while the 50-share Nifty was down 86 points to 5,378.20.
Engineering and construction major Larsen & Toubro slipped 2.2% and state-run Bharat Heavy Electricals fell 3%.
Index heavyweight and India's most valued stock Reliance Industries lost over 2% whereas ONGC dropped nearly 3%. Realty firm DLF went down more than 4%.
In the second line shares, DB Realty, MOIL, Educomp Solutions, Glodyne Tech and Godrej Industries were up 3-9% while VIP Industries, Indiabulls Financial, Sintex Industries, Jai Corp and Syndicate Bank slipped 5-6%.
Shares of Mangalore Chemical shot up 11% after reports indicated that Mangalore Refinery and Petchem, a unit of ONGC has written a letter to UB group chairman Vijay Mallya expressing interest to buy UB group's 30% stake.
About three shares declined for every shares rising on the National Stock Exchange.
At 12:45 hours IST: Sensex plunges 250 pts; Realty, Bankex down 2.5%
The BSE Sensex plunged more than 250 points in the afternoon trade as the RBI monetary policy review dampened market's sentiment by keeping rates unchanged. Even there may be less chance of cutting rates in April due to high inflation and fiscal deficit.
All major sectors like banks, capital goods, oil & gas and metals were in bear grip. The BSE Bank, Realty and PSU indices lost 2-2.5%.
The BSE benchmark fell 263 points to 17,656.59, weighed down by 24 stocks. Meanwhile, the NSE benchmark was down 87 points to 5,377.
Among banks, HDFC Bank, SBI and ICICI Bank dropped 2.5% each. Even capital goods majors BHEL and L&T tanked 2.5-3%.
Index heavyweights Reliance Industries and Bharti Airtel were down 1-1.5%. State-run ONGC plummeted 2.8%.
Stocks in news
Manappuram Finance gained 2.7% after the company's promoter sold 4% stake to PE players at Rs 40/share. Barings India bought 1.04 crore shares (1.23% equity).
Thomas Cook (India) surged 3% amid heavy volumes after Business Standard reports that UK's Travelex and PE giants are in race for buying the major stake in the company.
Suzlon Energy was down 3.5%. The company has refuted talks of Alstom eyeing REPower, reports CNBC-TV18.
A trust controlled by Wipro's billionaire founder Azim Premji raised Rs 750 crore in an auction of software company's shares, roughly half of the target. The company had planned to sell 3.5 crore equity shares.
At 12:02 hours IST: Nifty falls below 5400 after credit policy; banks down
The BSE Sensex tanked more than 200 points while the NSE Nifty broke the 5400 level after the Reserve Bank of India maintained status quo in its monetary policy review and left rates unchanged, citing inflation is still above the comfort level. Prime Minister's economic advisory panel chief says overall inflation close to 7% is very discomforting.
The RBI had slashed cash reserve ratio by 50 basis points to 4.75% on last Friday and injected about Rs 48,000 crore into banks. Now experts are divided in their opinions as some are expecting rate cut in April while some are denying the same.
The BSE benchmark was down 240 points to 17,679.81 and the NSE benchmark tumbled 79 points to 5,385.30. The BSE Midcap Index too was down 1.3%.
Even the depreciating rupee was another cause of concern because India imports more than exports and country imports more than 70% crude oil. The Indian rupee fell by 30 paise to 50.21 a dollar.
Rate sensitives extended fall. SBI and ICICI Bank, country's largest lenders plummeted 2.4-2.7% while rival HDFC Bank was down 2.4%. Realty firm DLF tanked 4%.
In the auto space, shares of Tata Motors, M&M, Hero Motocorp and Bajaj Auto slipped more than a percent.
Index heavyweights and oil & gas producers Reliance Industries and ONGC were down 1% and 2.7%, respectively.
Railway stocks remained under pressure since Railway Budget announcement. Kalindee Rail Nirman, Texmaco, Texmaco Rail and Kernex Microsystems crashed 5-7%.
At 11:12 hours IST: Sensex drops 1% after RBI leaves rates unchanged
The BSE Sensex dropped 1% after the Reserve Bank of India left key rates unchanged on Thursday. RBI said high inflation risk, upsurge in oil, fiscal deficit above comfort level and rupee depreciation are key concerns for keeping rates unchanged, even after satisfactory corporate sales growth in Q3 and better purchasing manager index in January and February.
Extending fall in the market suggests that it was having somewhat hopes of rate cut this time, but that did not happen. Now, we need to wait for April policy.
The BSE benchmark was down 182 points to 17,737 and the NSE benchmark fell 60 points to 5,403.
Private sector lenders ICICI Bank and HDFC Bank were down 2% each while state-run SBI was down 1.8%.
Capital goods majors L&T and BHEL tanked 3% and 1%, respectively.
At 10:56 hours IST: Nifty below 5450 ahead of RBI credit policy
The NSE Nifty dropped 0.5%, weighed down by banks, capital goods, metals and oil & gas stocks. Banks and financials stocks were down ahead of RBI's monetary policy review today.
Private banks like HDFC Bank and ICICI Bank fell 0.35% each, while rival SBI rebounded with 0.3% gains. Housing finance company HDFC was down 0.7%.
The NSE benchmark stayed below 5450 level since opening trade, which was down 27 points to 5,436.6. Meanwhile, the BSE benchmark was down 80 points at 17,839.24.
Oil & gas producers and index heavyweights Reliance Industries and ONGC were down 0.3% & 1.26%, respectively.
Capital goods majors L&T and BHEL declined 0.8-1.8%.
However, shares of country's top three software services exporter gained after falling rupee to 50.15 a dollar. Infosys, TCS and Wipro were up 0.4-0.6%.
The market breadth was negative; declining shares outnumbered advancing by 727 to 425 on the BSE.
Most active shares
SBI, United Breweries, Marico, HDIL, Reliance Industries, TCS and Yes Bank were most active shares.
MCX India too was the most active after the Bombay High Court on Wednesday asked the markets regulator SEBI to reconsider MCX's stock exchange application in one month and set aside its earlier order. Justices DY Chandrachud and Anoop V Mohta passed the order today after hearing an appeal filed by MCX-SX in October 2010 against market regulator for rejecting its application to set up a new equities trading platform.
At 10:16 hours IST: Sensex under pressure; rupee falls to 50.15/USD
The BSE Sensex continued to trade lower on the back of political uncertainty as Raliway Minister Dinesh Trivedi has been forced to quit on his 'bold' Rail Budget. The market is also worried on falling rupee, the Indian rupee gained by 24 paise at 50.15 to the dollar today.
The Reserve Bank of India will announce its monetary policy review today. Majority of experts ruled out rate cut today, but they insisted that there would be 75-100 basis points cut in repo rate in 2012.
The BSE benchmark was down 75 points at 17,844.13, weighed down by banks, capital goods and metals stocks. Meanwhile, the NSE benchmark slipped 27 points to 5,436.60.
Cigarette major ITC was down 1% ahead of Union Budget 2012-13. Brokerage houses in their report said the stock will fall more if government hikes excise duty on cigarettes tomorrow. However, HUL rose 0.7%.
SBI and ICICI Bank, country's largest lenders fell 0.4-0.6% while housing finance company HDFC declined 0.86%. Engineering and construction major Larsen & Toubro was down 0.85% and state-run BHEL lost 1.6%.
However, shares of technology majors TCS and Infosys gained 0.3-0.85% on falling rupee.
Stocks in news
Manappuram General Finance gained 4.4% after the company promoter sold 4% stake to PE players at Rs 40/share. Barings India bought 1.04 crore shares (1.23% equity), Beaver Investment Holdings bought 68.43 lakh shares and BRIC II Mauritius 50.47 lakh shares. Muthoot Finance too gained 1.2%.
Aban Offshore rose 1% after the company redeemed FCCBs worth USD 170 million. FCCBs were due on March 15.
At 9:19 hours IST: Sensex falls 100 pts in early trade on political drama
The BSE Sensex fell 100 points in early trade as the high volatage political drama still continues. Even profit booking may be another reason for falling markets as it rallied for previous four sessions.
The BSE benchmark was down 80 points to 17,839.19 and the NSE benchmark fell 30.5 points to 5,433.40.
After announcement of slight fare hikes in the Rail Budget, Railway Minister Dinesh Trived has been hardpressed to quit or rollback the fares. Giving away to party demands, Trivedi resigned as rail minister and now Mukul Roy will be replaced him. Investors looked somewhat cautious after this political drama.
Meanwhile, among frontliners, state-run BHEL and Coal India tanked 3% each.
Anil Dhirubhai Ambani Group's stocks Reliance Communications and Reliance Power were fell 2-3% after NSE said it would remove both stocks from Nifty 50 with effect from April 27. In place of that, NSE will add Bank of Baroda and Asian Paints, which rose 1% and 2.7%, respectively.
DLF, JP Associates, SBI, L&T, SAIL, Hindalco, ONGC and IDFC too were under pressure.
Wipro lost more than a percent after its offer for sale auction undersubscribed. Company accepted 1.78 crore shares versus book of 3.5 crore shares and fixed floor price at Rs 418 a share.
However, HUL, Infosys and Reliance Industries were up 0.5%.
The CNX Midcap fell 46 points to 7,840. About two shares declined for every share advancing on the National Stock Exchange.
In the second line shares, Man Industries shot up 4.4% after Business Standard reports that Japan's Kobe Steel bought 3.5% stake in the company for Rs 30 crore.
Manappuram General Finance rose 0.6% as promoter sold 4% stake to PE players at Rs 40/share.
Railway stocks has been falling since yesterday. Kalindee Rail, Texmaco and Kernex Microsystems were down 4-5% today.
Infrastructure stocks like HCC, GVK Power, Lanco Infratech and GMR Infrastructure were down 2% each.