Asian Market Commentary
Indian Market Plunges On Weak Global Cues
11/3/2009 6:37 AM ET
(RTTNews) -
An uninspiring manufacturing report for October and continued profit taking on valuation concerns amid extremely weak global cues dragged the Indian market sharply lower on Tuesday.
After moving in a choppy fashion in early trading, the BSE Sensex fell sharply in the afternoon to end near the day's lows at 15,405, down 491 points or 3.09%.
The S&P CNX Nifty tumbled 148 points or 3.14% to 4,564, the BSE mid-cap index moved down 3.74% and the small-cap index shed 4.50%. The market breadth on the BSE was extremely negative, as decliners outnumbered gainers by 2170 to 534.
Globally, Asian stocks edged mostly lower on Tuesday on concerns stimulus measures if withdrawn prematurely may undermine a global economic recovery. The Reserve Bank of Australia raised its interest rates by 25 basis points to 3.5 percent, but said it may pause its tightening cycle in December. Traders awaited interest rates announcements from the U.S, U. K and Eurozone this week.
European stocks are now trading sharply lower, dragged down by banks and heavyweight energy and mining stocks, and the Dow futures point towards a negative opening on Wall Street Tuesday morning.
Back home, high-beta realty, commodity prices-driven metals and oil & gas stocks bore the brunt of the selling pressure.
Market heavyweight Reliance Industries (RIL) plunged 5.73% on reports the Controller and Auditor General of India has set up a panel to examine the company's expenses incurred on its D6 oil blocks in the KG basin. However, Anil Ambani-controlled RNRL, which is fighting a legal dispute with RIL in the Supreme Court, rallied 4.56% ahead of an apex court hearing on Wednesday.
Among the major decliners, Hindalco Industries plummeted over 10%, DLF slumped over 9%, Jaiprakash Associates tumbled 7.52%, Sterlite Industries shed 6.40%, ACC fell 6.20% and Tata Steel tumbled 5.51%.
In the IT space, Wipro fell 4.36%, while TCS and Infosys declined by 3% each. Larsen & Toubro gave off 2.65% despite winning a contract worth Rs 6,897 crore from Mahagenco for a 2000-MW Supercritical power plant.
Hindustan Unilever fell 3.60% and Reliance Infrastructure tumbled nearly 6% after reporting disappointing quarterly earnings. Mahindra & Mahindra eased over 3% despite reporting a 32% rise in domestic sales of its utility vehicles in October.
Hero Honda Motors fell 3.50% on reporting a modest rise in October sales at 354,156 units versus 352,449 units in the corresponding month.
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