MUMBAI: The BSE Sensex slid to its lowest close in 14 months on Tuesday taking losses over six sessions to nearly 8 percent, as investors dumped risky assets across global markets on gloomy outlook for the world economy.
The BSE Sensex on Tuesday closed 132 points down - recovering from an early loss of 560 points - as government assurances failed to fully beat back the contagion impact of debt crisis in the US and Europe.
In highly volatile trading, stock markets opened with huge losses but staged a smart recovery, wiping off all the losses by mid-day and moving into the positive territory.
However, they plunged back into the red. After opening 472 points down on Tuesday morning, the Sensex widened its loss to 558 points within minutes. Thereafter, it recovered more than 700 points from early morning lows and was trading with a gain of over 100 points at one point.
However, it soon moved back into the red zone with over 300-point loss and after partial recovery closed 132.27 points down at 16857.91 points -- lowest close since June 9, 2010.
Marketmen said that finance minister Pranab Mukherjee's assurance about strong fundamentals of Indian economy, and capital market joint secretary Thomas Mathew's assertion that FIIs were unlikely to resort to heavy selling, helped the brief recovery but finally the negative global cues prevailed.
They said market would wait for the policy meeting of US central bank, scheduled for later tonight, in hope of some announcements aimed at boosting investor sentiments.
The global markets have been in a turmoil for past two days, after the creditworthiness of the US was downgraded by Standard and Poor's amid the American economy's mounting debt worries. The debt problems in Europe have already been hammering the market for about a week now.
During the intra-day trade, the Sensex dipped to 16,432 points - its lowest since June 1, 2010. During its brief uptrend, it regained the 17,000-level to scale a high of 17,135.04 points.
The Bombay Stock Exchange 30-share index, Sensex, has lost 1,454 points in the six straight trading sessions.
Another benchmark, National Stock Exchange's 50-scrip Nifty, touched a low of 4,946.45 points, lowest since May 27, 2010, before closing 45.65 points down at 5,072.85 -- the lowest close since June 9, 2010.
Tata Steel, Tata Motors, TCS, Infosys, Wipro and Coal India were among biggest losers, while stocks like RIL, ICICI Bank and Hindalco also lost substantially.
However, stocks like M&M, DLF, ITC, HDFC, ITC, Maruti and ONGC managed to record smart gains on a volatile day.
The overall market breadth was still very negative with nearly two-third of all listed stocks recording losses.
Oscillating between alternate bouts of rise and fall, the Sensex traversed a path of more than 2,000 points, leaving the traders and investors in a tizzy.
Experts said the brief recovery was mostly due to positive openings in European markets, which later pared their gains and the trend got reflected on the Indian bourses.
The overnight meltdown in the US and the subsequent fall in Asia this morning added to the woes of Indian bourses.
"The US Fed has a crucial meeting tonight with a possibility of announcing some measures to sooth investors confidence. The outcome of the meeting is likely to affect the short term sentiments of the world markets including India," Shanu Goel, senior research analyst, Bonanza Portfolio said.
Analysts said that value buying should take place after the heavy plunge of the past few days, as fundamentals of Indian economy remain strong.
Earlier, the finance minister said India's macro-economy was moving in the positive direction and its fundamentals were strong, capable of meeting any challenge posed by the US downgrade by the credit ratings agency S&P as well as the crisis in some euro zone nations.
He said they have created some problems for India, but the country could handle any situation arising out of global developments.
Meanwhile, Mathew said good capital flows were expected into the country in the medium term, although there could be some volatility in the next few days.
High volatility was also seen in the Asian and European markets on Tuesday, but the pre-open futures trade for the US stocks indicated a positive opening.
On Monday, Dow as well as Nasdaq registered their biggest slump since the collapse of Lehman Brothers in 2008, while all 500 shares from the S&P's 500 index closed with losses for the first time in history.
Key indices in China, Hong Kong, Japan, South Korea and Taiwan ended lower between 0.03 per cent and 5.66 per cent.
European shares too were quoting lower in afternoon trade. The CAC was down 1.47 per cent, the DAX by 3.95 per cent and the FTSE by 2.40 per cent.
Back home, IT counters continued to get heavy drubbing. TCS was down 4.16 per cent, Infosys Tech by 3.68 per cent and Wipro by 3.18 per cent.
Besides, RIL lost 1.95 per cent, Tata Steel (4.87 pc), Tata Motors (4.33 pc), ICICI Bank (1.17 pc), L&T (1.18 pc) and Coal India (2.98 pc).
However, smart rise in ITC (2.44 pc), HDFC (2.02 pc), M&M (4.29 pc), ONGC (1.27 pc) and HDFC Bank (0.7 pc), DLF (2.48 pc), Jaipra Asso (1.99 pc), Bajaj Auto (1.95 pc) and Maruti Suzuki (1.29 pc) cushioned the Sensex fall.
After pulling out Rs 1,609.60 crore last Friday, FIIs offloaded shares worth Rs 1,385.78 crore as per the provisional data.
In all, 18 of the 30 Sensex-based scrips recorded losses, while others finished with gains.
From the sectoral indices, the BSE-IT slumped by 3.47 per cent, Teck by 2.74 per cent, Metal by 2.73 per cent and Healthcare by 2.47 per cent. BSE-FMCG rose by 1.36 per cent.
The total market breadth at BSE remained negative as 1,026 shares finished with losses, while 829 settled with gains. The turnover rose to Rs 3,398.30 crore from Rs 2,990.96 crore on Monday.
The BSE Sensex on Tuesday closed 132 points down - recovering from an early loss of 560 points - as government assurances failed to fully beat back the contagion impact of debt crisis in the US and Europe.
In highly volatile trading, stock markets opened with huge losses but staged a smart recovery, wiping off all the losses by mid-day and moving into the positive territory.
However, they plunged back into the red. After opening 472 points down on Tuesday morning, the Sensex widened its loss to 558 points within minutes. Thereafter, it recovered more than 700 points from early morning lows and was trading with a gain of over 100 points at one point.
However, it soon moved back into the red zone with over 300-point loss and after partial recovery closed 132.27 points down at 16857.91 points -- lowest close since June 9, 2010.
Marketmen said that finance minister Pranab Mukherjee's assurance about strong fundamentals of Indian economy, and capital market joint secretary Thomas Mathew's assertion that FIIs were unlikely to resort to heavy selling, helped the brief recovery but finally the negative global cues prevailed.
They said market would wait for the policy meeting of US central bank, scheduled for later tonight, in hope of some announcements aimed at boosting investor sentiments.
The global markets have been in a turmoil for past two days, after the creditworthiness of the US was downgraded by Standard and Poor's amid the American economy's mounting debt worries. The debt problems in Europe have already been hammering the market for about a week now.
During the intra-day trade, the Sensex dipped to 16,432 points - its lowest since June 1, 2010. During its brief uptrend, it regained the 17,000-level to scale a high of 17,135.04 points.
The Bombay Stock Exchange 30-share index, Sensex, has lost 1,454 points in the six straight trading sessions.
Another benchmark, National Stock Exchange's 50-scrip Nifty, touched a low of 4,946.45 points, lowest since May 27, 2010, before closing 45.65 points down at 5,072.85 -- the lowest close since June 9, 2010.
Tata Steel, Tata Motors, TCS, Infosys, Wipro and Coal India were among biggest losers, while stocks like RIL, ICICI Bank and Hindalco also lost substantially.
However, stocks like M&M, DLF, ITC, HDFC, ITC, Maruti and ONGC managed to record smart gains on a volatile day.
The overall market breadth was still very negative with nearly two-third of all listed stocks recording losses.
Oscillating between alternate bouts of rise and fall, the Sensex traversed a path of more than 2,000 points, leaving the traders and investors in a tizzy.
Experts said the brief recovery was mostly due to positive openings in European markets, which later pared their gains and the trend got reflected on the Indian bourses.
The overnight meltdown in the US and the subsequent fall in Asia this morning added to the woes of Indian bourses.
"The US Fed has a crucial meeting tonight with a possibility of announcing some measures to sooth investors confidence. The outcome of the meeting is likely to affect the short term sentiments of the world markets including India," Shanu Goel, senior research analyst, Bonanza Portfolio said.
Analysts said that value buying should take place after the heavy plunge of the past few days, as fundamentals of Indian economy remain strong.
Earlier, the finance minister said India's macro-economy was moving in the positive direction and its fundamentals were strong, capable of meeting any challenge posed by the US downgrade by the credit ratings agency S&P as well as the crisis in some euro zone nations.
He said they have created some problems for India, but the country could handle any situation arising out of global developments.
Meanwhile, Mathew said good capital flows were expected into the country in the medium term, although there could be some volatility in the next few days.
High volatility was also seen in the Asian and European markets on Tuesday, but the pre-open futures trade for the US stocks indicated a positive opening.
On Monday, Dow as well as Nasdaq registered their biggest slump since the collapse of Lehman Brothers in 2008, while all 500 shares from the S&P's 500 index closed with losses for the first time in history.
Key indices in China, Hong Kong, Japan, South Korea and Taiwan ended lower between 0.03 per cent and 5.66 per cent.
European shares too were quoting lower in afternoon trade. The CAC was down 1.47 per cent, the DAX by 3.95 per cent and the FTSE by 2.40 per cent.
Back home, IT counters continued to get heavy drubbing. TCS was down 4.16 per cent, Infosys Tech by 3.68 per cent and Wipro by 3.18 per cent.
Besides, RIL lost 1.95 per cent, Tata Steel (4.87 pc), Tata Motors (4.33 pc), ICICI Bank (1.17 pc), L&T (1.18 pc) and Coal India (2.98 pc).
However, smart rise in ITC (2.44 pc), HDFC (2.02 pc), M&M (4.29 pc), ONGC (1.27 pc) and HDFC Bank (0.7 pc), DLF (2.48 pc), Jaipra Asso (1.99 pc), Bajaj Auto (1.95 pc) and Maruti Suzuki (1.29 pc) cushioned the Sensex fall.
After pulling out Rs 1,609.60 crore last Friday, FIIs offloaded shares worth Rs 1,385.78 crore as per the provisional data.
In all, 18 of the 30 Sensex-based scrips recorded losses, while others finished with gains.
From the sectoral indices, the BSE-IT slumped by 3.47 per cent, Teck by 2.74 per cent, Metal by 2.73 per cent and Healthcare by 2.47 per cent. BSE-FMCG rose by 1.36 per cent.
The total market breadth at BSE remained negative as 1,026 shares finished with losses, while 829 settled with gains. The turnover rose to Rs 3,398.30 crore from Rs 2,990.96 crore on Monday.
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