Sensex underperforms global peers, ends 1% down; Re weighs

The BSE Sensex and NSE Nifty fell as much as 1.1% each on Tuesday, weighed down by sharp depreciation in the rupee. However, the global markets stayed positive, even after Fitch downgraded Japan to A+ from AA.

Indian equities underperformed global peers today. The BSE benchmark lost 156.85 points or 0.97%, to close at 16,026.41 led by 26 components. The NSE benchmark touched intraday high of 4,956.35, before closing down 45.55 points at 4,860.50 (a fall of 96 points from day's high).

However, global markets saw value punting on speculation that European leaders would agree on fresh action to tackle the region's debt crisis. Even the statement from Chinese Premier Wen Jiabao saying need to give priority to maintaining growth also helped markets. Asian markets were down 0.6-1.6% at close. European markets were trading 0.6-0.8% higher after paring some gains.

Japanese Yen fell after the Fitch downgraded Japan to A+ from AA due to growing risk of high public debt. The rating agency says the outlook is negative.

The Indian rupee touched a fresh record low of 55.38 to the dollar today, down 35 paise from previous close of 55.03 a dollar. It has been fallen 24% since April 4, 2011 (when it touched 44.50 a dollar) and over 6% in one month.

Regan Homavazir of Darashaw and Company sees 56.5 a dollar as the worse case scenario. ''We need to realize that the rupee has depreciated right from 45 to where it stands now, and people may just be complacently bearish on the rupee,'' he said.

His worst case scenario for the market is that the Nifty could move lower to retest its December lows (4,531).

The Bank Nifty fell over 1.5% as country's largest lender State Bank of India tanked 3.4%. Private sector lenders ICICI Bank and HDFC Bank were down 1.23% and 1.7%, respectively.

Engineering and construction major by sales Larsen & Toubro tumbled over 2% whereas state-owned capital goods company BHEL gained 1%.

Index heavyweight ITC dropped over 1% and FMCG company HUL slipped 1%. Oil & gas producers Reliance Industries and ONGC were down over 0.6%.

Private power producer Tata Power topped the selling list, falling over 5% ahead of fourth quarter numbers.

Country's largest car maker Maruti Suzuki tumbled 4.5% on fears that rising rupee may increase royalty payments and import cost. M&M, Hero Motocorp and Bajaj Auto fell 0.5-1% whereas Tata Motors went up 1%.

At 14:42 hours IST: Sensex down 1%; rupee hits new all-time low of 55.22/USD

The BSE Sensex and NSE Nifty extended losses after rupee touched a new record low of 55.22 a dollar (down 19 paise from previous close). Even European markets erased somewhat gains; France's CAC, Germany's DAX and Britain's FTSE were up 0.6% each.

The BSE benchmark went down 158 points or 0.97% to 16,025.62 and the NSE benchmark lost 48.55 points or 0.99% to 4,857.5. The broader markets too were in bears' grip.

Country's largest lender State Bank of India dropped over 3% as it may recast Rs 3,700 crore loans given via consortium.

Its rivals HDFC Bank and ICICI Bank were down 1% each. The Bank Nifty declined over 1%.

Engineering and construction major by sales Larsen & Toubro too tanked 2.5% whereas state-owned BHEL went up 0.7%.

Auto stocks lost ground as fall in rupee impacts their royalty payments and import cost. Top car maker Maruti Suzuki tumbled 4% while M&M, Hero Motocorp and Bajaj Auto were down 0.5-1%.

Cigarette major ITC slipped over 1%. Oil & gas producers Reliance Industries and ONGC too were under pressure, losing 0.6-0.9%.

Sterlite Industries and Tata Power (ahead of numbers) crashed 4-5%.

However, shares of Tata Motors, TCS and Bharti Airtel bucked the trend, rising 0.3-1.3%.

Declining shares outnumbered advancing by 865 to 510 on the National Stock Exchange.

On the global front, Fitch has downgraded Japan to A+ from AA due to growing risk of high public debt. The rating agency says the outlook is negative. Japanese Yen fell after the news.

At 13:17 hours IST: Sensex, Nifty erase gains; rupee touches 55.06/USD

The BSE Sensex and NSE Nifty shed all gains in afternoon trade due to fall in index heavyweights L&T, Reliance Industries and SBI. Infosys, ITC and HDFC Bank too were under pressure.

Even the Indian rupee touched fresh all-time low of 55.06 a dollar, down 3 paise from previous close of 55.03 a dollar.

The BSE benchmark fell 45.25 points to 16,138.01 and the NSE benchmark went down 13 points to 4,893, even after European markets staying 1%  higher.

FMCG majors ITC and HUL lost 0.85% and 0.6%, respectively.

Engineering and construction major by sales Larsen & Toubro tanked 1.6% whereas state-owned BHEL jumped 2%.

India's largest lender State Bank of India declined 0.8% while its rival HDFC Bank slipped 1%. Housing finance company HDFC declined 0.4%.

Private power producer Tata Power topped the selling list, losing over 3%. India's most valued stock Reliance Industries and software services exporter Infosys turned flat.

Top car maker Maruti Suzuki tumbled 2% on rising cost of royalty payments and imports due to depreciation in rupee.

However, shares of Tata Motors and TCS gained 1.8% and 1%, respectively. ICICI Bank and ONGC were up 0.5% each.

At 12:45 hours IST; Sensex, Nifty remain higher; European markets open 1% up

The BSE Sensex and NSE Nifty retained positive trend since early trade due to upmove in global markets. European markets like France's CAC, Germany's DAX and Britain's FTSE opened around 1% higher, respectively. Positive US and EU economic data, and statement from Chinese Premier Wen Jiabao saying need to give priority to maintaining growth, helped markets globally.

The BSE benchmark rose 99 points to 16,282.25 and the NSE benchmark was up 29.5 points at 4,935.55. The Indian rupee was trading at 54.94 a dollar, up 9 paise.

State-owned capital goods company BHEL and top commercial vehicle maker Tata Motors surged 3% each.

Country's largest private sector lenders ICICI Bank and HDFC Bank were up 0.5-1% while top lender State Bank of India turned positive.

Cigarette major ITC and top software services exporter Tata Consultancy Services gained over 1%.

Oil & gas producers Reliance Industries and ONGC moved up 0.7% and 1.3%, respectively. Private steel manufacturers Jindal Steel and Tata Steel gained 1-1.5%.

However, drum maker Sun Pharma and private power producer Tata Power (ahead of Q4 results today) lost 2% each.

Auto stocks like Maruti Suzuki, Hero Motocorp and Bajaj Auto were down around 1%; their royalty payments and import costs will increase due to depreciation in rupee.

India's largest engineering and construction company by sales Larsen & Toubro was down 0.6%.

At 11:28 hours IST: Sensex, Nifty rise 0.6%; Thomas Cook most active

The BSE Sensex and NSE Nifty stayed up 0.6% each led by buying interest in oil & gas, technology, private banks and metals stocks. Asian markets too gained strength - Hang Seng, Nikkei, Straits Times, Kospi and Taiwan Weighted were up 1-1.65%.

The Indian rupee continued to hover around 55 a dollar today. Regan F Homavazir, Associate VP - Technical Research at Darashaw and Company feels the rupee at its worse could go to 56.5 a dollar. It appreciated 9 paise to 54.94 a dollar.

The BSE benchmark went up 98.67 points or 0.61% to 16,281.93 and the NSE benchmark advanced 29.75 points or 0.61% to 4,935.80.

Siddharth Bhamre, Angel Broking feels that the Nifty is likely to bounce back to 5,000-5,100 levels.

Country's largest commercial vehicle maker Tata Motors and state-owned capital goods company BHEL topped the buying list, rising 2.5% each.

Top software services exporters TCS and Infosys rose 0.5-1%. Cigarette major ITC went up 1.5% and index heavyweight Reliance Industries moved up 0.65%.

Private sector lender ICICI Bank jumped over 1% whereas top lender State Bank of India trimmed losses to 0.12%.

Private power producer Tata Power lost 1.7% ahead of fourth quarter numbers today. Drug maker Sun Pharma extended losses, falling 2%.

Engineering and construction major by sales Larsen & Toubro, top two-wheeler manufacturer Hero Motocorp and FMCG company HUL were down 0.5% each.
 
Thomas Cook was the most active stock on the BSE after the parent company sold 77% stake in Indian unit to Fairbridge Capital at Rs 50 a share and announced open offer at Rs 65.48 a share. The stock gained 2% and its trading volumes jumped 2,000% to 32,15,432 shares as compared to its 5-day average of 154,445 shares.

In the second line shares, Rallis India, Hexaware Tech, Motilal Oswal, Berger Paints and National Fertiliser rallied 3-6% whereas India Cements, Kalpataru Power, Sadbhav Engg, Strides Arcolab and S Mobility lost 2-2.7%.

About two shares gained for every share falling on the National Stock Exchange.

At 10 hours IST: Sensex, Nifty pare some gains; rupee at 55/USD

The BSE Sensex and NSE Nifty pared somewhat initial gains as the Indian rupee touched 55.04 to the dollar again. Asian markets too came off day's high; Shanghai, Hang Seng, Nikkei, Straits Times, Kospi and Taiwan gained 0.5-1%.

The BSE benchmark climbed 77.29 points or 0.48% to 16,260.55 and the NSE benchmark was up 22.40 points or 0.46% at 4,928.45.

Country's largest lender State Bank of India fell 0.6% after rising more than 7% in previous two sessions due to strong numbers in Q4FY12 whereas rivals ICICI Bank and HDFC Bank gained 0.5-1%.

India's largest engineering and construction company by sales Larsen & Toubro was down 0.17% while state-owned BHEL rallied 1.5%.

Realty major DLF tanked 1.5% and drug maker Sun Pharma lost over 1%.

Top car maker Maruti Suzuki too was under pressure, falling 0.4% due to rising cost of royalty payments.

However, technology stocks like TCS, Wipro and Infosys gained 0.5-1% on depreciating rupee.

Oil & gas majors Reliance Industries and ONGC were up 0.22% and 0.85%, respectively.

Housing finance company HDFC rose 1% and top commercial vehicle maker Tata Motors surged 1.7%.

Advancing shares outnumbered declining by 788 to 316 on the National Stock Exchange.

At 9:20 hours IST: Sensex, Nifty open 1% higher on strong global cues

The BSE Sensex and NSE Nifty started off trade with 1% gap up following rally in global markets. Banks, capital gooods, metals, technology, auto and oil & gas stocks led the market higher.

The Indian rupee has seen a pull back from record low to trade at 54.75 to the dollar, up 28 paise. The rupee had closed at all-time low of 55.03 a dollar yesterday.

The BSE benchmark moved up 159.03 points or 0.98% to 16,342.29 and the NSE benchmark gained 46.60 points or 0.95% at 4,952.65. Asian markets trade 1% higher.

Among frontliners, JP Associates, Axis Bank, SBI, ICICI Bank, DLF, Tata Motors, BHEL, Reliance Infrastructure, L&T, Tata Steel, Hindalco, Sterlite Industries, TCS, Reliance Industries, Coal India and BPCL gained 1-2%.

However, Sun Pharma and Asian Paints were moderately lower.

The CNX Midcap Index went up 0.88% or 61 points to 6,963. About four shares advanced for every share falling on the National Stock Exchange.

In the second line shares, Thomas Cook tanked 4% in opening trade as parent company sold 77% stake in Indian unit to Fairbridge Capital at Rs 50 a share. However, immediately the stock bounced back to trade 1.5% higher after new company announced open offer at Rs 65.48 a share - higher than current price. Fairbridge bought Indian unit at Rs 817 crore.

PTC India was up 1.4% after fourth quarter numbers.

Non-banking finance companies: PFC was up 2.7% and Manappuram Finance went up 1.5%.

Media companies extended gains: TV Today rose 2.4%, and Zee Entertainment moved up 2% post numbers.

S Kumars gained 1.3%.