Sensex closes above 17k-level after 10 weeks

   The Bombay Stock Exchange benchmark Sensex on Wednesday gained 81 points to close above 17,000-point level after 10 weeks on positive investor sentiment after the Reserve Bank of India shifted focus to economic growth in its policy review on Tuesday.

The Sensex added 81.41 points to close at 17,077.18, matching the highest level seen on November 14.

On similar lines, the National Stock Exchange index Nifty rose by 30.95 points to 5,158.30.

Traders said investors confidence got a boost after the RBI on Tuesday reduced the cash reserve ratio (CRR) for the first time since 2009, signalling to banks that they cut interest rates. The Sensex had gained 244 points on Tuesday as well.

Buying activity picked up also on account of investors covering their pending positions created on the last day of current month settlement in the derivatives segment.

Reliance Industries rose by 0.89 per cent to Rs. 790.10 and Infosys by 1.51 per cent to Rs. 2,659.75.

Banking sector stocks rose on expectations that the RBI move would boost revenue of lenders. HDFC jumped 1.12 per cent to Rs. 708.30 and State Bank by 0.75 per cent to Rs. 2,056.60.

The metal sector index gained the most, 1.79 per cent, followed by auto index at 1.15 per cent, IT sector index 1.06 per cent, oil and gas 0.57 per cent and banking index 0.33 per cent.

Stock markets will remain closed on Thursday on account of Republic Day.

Sensex falls 5th day to 28-month closing low

The BSE Sensex fell for a fifth session in a row on Tuesday, dropping 1.3% to their lowest close in 28 months, as risk aversion deepened in the absence of policy initiatives to revive slowing domestic growth.

Investor confidence was further dented when European shares initially

extended a two-week slide after a euro zone plan to boost crisis funds parked with the IMF failed to reach a hoped-for target.

Engineering and construction conglomerate Larsen and Toubro, which has been facing a slowdown in new orders as companies put off investment in large projects, was among the big losers.

"The whole India story was built around just one word -- growth," said Jagannadham Thunuguntla, research head at SMC Global Securities.

"Now that growth is not there and nobody is interested in this market."

The main 30-share BSE index shed 1.33%, or 204.26 points, to 15,175.08, its lowest close since August, 2009.

All but 5 of its components ended in the red.

Industrial output in India fell for the first time in two years in October, shrinking 5.1%, and the central bank held interest rates unchanged last week after 13 rounds of increases since early 2010.

Pushed to a corner by a series of corruption scandals, the ruling coalition has been unable to reach a consensus on policy decisions that are needed to lift investment and growth.

Foreign funds have pulled out a net $300 million from Indian shares this year till last Friday, after ploughing in a record of more than $29 billion in 2010.

"It is tough to find many optimists willing to bet their money on Indian equities at the moment," brokerage IIFL said in a research note on Tuesday.

Swelling fiscal deficit, widening current account gap, high interest rates, slowing economy and policy inaction were driving investors away, it said.

The benchmark BSE index has lost 5.2% over five sessions, taking the fall to 26% since the start of January and making it the worst performing major stock market in the world.

Larsen & Toubro fell 5.3% to 977.70 rupees, its lowest close since May, 2009.

Energy major Reliance Industries, which has about 10% weight on the main index, fell 3% and Bharti Airtel, the country's largest mobile operator, shed 3.9%.

Production cuts announced by European steelmakers this month because of gloomy outlook for steel demand weighed on metal makers.

Tata Steel, the world's seventh biggest steelmaker, dropped 5.7%, while Jindal Steel and Power fell 3.8%.

Media firm Network 18 bucked the trend and rose 6.9% after a newspaper report Mukesh Ambani, India's richest man and head of oil and gas major Reliance Industries , is seeking to buy a stake in the company.

A Reliance spokesman said the company was not interested in buying a stake in Network 18.

The 50-share NSE index fell 1.5% to 4,544.20.

There were about 2.8 losers for every gainer in the broader market. About 573 million shares changed hands.

At 1030 GMT, the FTSEurofirst 300 index of top European shares was up 0.4%. World stocks, as measured by the MSCI world equity index, rose 0.3%.

Markets crash: Sensex, Nifty hit 20-month low

India's benchmark indices fell sharply falling way below their 52-week lows admidst a selloff in markets across Asia. A slowdown in the US economic growth led to investors paring down exposure to equities. In the Indian context, a falling rupee has added to the pressure on profitability of companies.

At 1221 hours, the Sensex was down 450 points to 15,614 while the broader Nifty index declined 131 points to 4,680. The Nifty has fallen below the 4,700 mark for the first time in 20 months. The Nifty last traded below 4,700 levels on 8 February, 2010. Benchmark indices in Hong Kong, Korea and Taiwan also traded two to three per cent lower. 

"The Nifty support level was 4,720. Once it was taken off the markets witnessed a cascading effect. The Nifty can fall 200 points now as supply will overpower demand," Kiran Jadhav of Precision Technicals said.

Banking stocks saw the steepest cuts, falling 3.5 per cent. HDFC Bank plunged 6 per cent. ICICI Bank was down 4 per cent.

Energy and IT stocks also slumped nearly 3 per cent. Most other sectoral indices were trading with over 2 per cent cut.

All stocks were down on the Sensex. Jaiprakash Associates, Bharti, Reliance and JSPL were trading with over 4 per cent cuts.

Only two stocks were trading higher on the Nifty. RCom was up after three officials of Reliance ADAG were granted bail by the Supreme Court earlier today. GAIL was also trading higher.

The market breadth had collapsed with an overwhelming 92 per cent stocks falling on the broader BSE 500 points.

Among large cap stocks government oil major ONGC, India's largest PSU bank SBI, private sector lender ICICI Bank and Axis Bank made new lows today.

Sensex, Nifty crash to 52-week low amid global weakness

India's benchmark indices crashed over 2 per cent and have hit new 52-week lows as selling pressure gathered momentum on the bourses. A slowdown in economic growth in the US, which is the world's biggest economy, led to risk aversion across the globe.

At 1208 hours, the Sensex was down 360 points to 15,705 while the broader Nifty index declined 105 points to 4,707. The Nifty has broken the previous low of 4,720 made on 26 August this year.

Barring Cipla and Sun Pharm, all other Sensex stocks were trading lower. Similarly, only five stocks were trading higher on the Nifty.

Among large cap stocks government oil major ONGC, India's largest PSU bank SBI, private sector lender ICICI Bank and Axis Bank made new lows today.

Sensex, Nifty crash to near 2-year lows amid foreign funds exodus

Indian markets crashed Wednesday as the benchmark indices broke major support levels plunging to near two-year lows. The Sensex and Nifty were the worst performers among all Asian indices, falling nearly 3 per cent.

A slowdown in economic growth in the US, which is the world's biggest economy, led to risk aversion across the globe. Weakness in Chinese manufacturing data further raised concerns of another global recession.

At 1304 hours, the Sensex was down nearly 450 points to 15,614 while the broader Nifty index declined 130 points to 4,682. The Nifty has fallen below the 4,700 mark for the first time in over 18 months. The Nifty last traded below 4,700 levels on 8 February, 2010.

Analysts said the selloff was driven by foreign institutional investors (FII), who fear a slowdown in the country's economy and a possible downgrade by major rating agencies soon.

"The underlying retail investors in the western world are pulling out money from the risk assets, whether in the emerging markets or developed markets... FII fund managers have to find cash for which they have to sell," Saurav Mukherjea of Ambit Capital said.

"The currency factor is clearly not helping. It has really hurt investor returns. What is causing the sellout is that they (FIIs) don't see any reason for the rupee to pullback to 45," he added. The rupee has fallen nearly 14 per cent in the last quarter alone. However, the currency was trading higher today, possibly on the back of intervention by the central bank.

Technical analysts anticipate further weakness because key levels have been broken. "4,720 was a strong support and once it was taken off the markets are witnessing a cascading effect. The Nifty can fall 200 points now as supply will overpower demand," Kiran Jadhav of Precision Technicals said.

The volatility has increased ahead of the derivatives expiry on Thursday. The National Stock Exchange (NSE) volatility index was up nearly 14 per cent. "Intraday you might get some scare but you might want to test it further," Independent analyst Sarvendra Srivsatava said.

Banking stocks saw the steepest cuts, falling over 3 per cent. HDFC Bank plunged 5 per cent. ICICI Bank was down 3.5 per cent.

Energy and IT stocks also slumped nearly 3 per cent. Most other sectoral indices were trading with over 2 per cent cut.

Barring Cipla, all other stocks were down on the Sensex. Jaiprakash Associates, Bharti, JSPL, BHEL and Reliance were trading with over 3.5 per cent cuts. RCom was the only stock trading higher on the 50-stock Nifty index. It rose after three officials of Reliance ADAG were granted bail by the Supreme Court earlier today.

The market breadth had collapsed with an overwhelming 90 per cent stocks falling on the broader BSE 500 points.

Among large cap stocks, government owned oil major ONGC, India's largest PSU bank SBI, private sector lender ICICI Bank and Axis Bank made new lows today.

Sensex, Nifty crash amid growth, rupee concerns

Indian markets have closed with deep cuts Wednesday as foreign funds liquidated funds on the back of weakening rupee and economy. The Sensex and Nifty closed with over 2 per cent cuts after falling to near two-year lows in intraday trade.

The Sensex ended 365 points lower at 15,699.99 while the broader Nifty index closed at 4,706.45, falling 105.90 points. Earlier, the Sensex had fallen nearly 600 points (intraday low of 15,478.69) while the Nifty had slipped below the 4,700 mark (4,640) for the first time since February, 2010.

Indian markets have now fallen over 20 per cent year to date.

Global cues were not supportive. Economic growth slowed down in the US and Chinese manufacturing data raised further concerns of another recession. Asian markets witnessed sharp decline too. Markets in Taiwan and South Korea fell more than Indian indices. Most European markets were trading with 0.5-1 per cent losses when Indian markets closed.

Analysts said the selloff was driven by foreign institutional investors (FII), who fear a slowdown in the country's economy and a possible downgrade by major rating agencies soon.

"The underlying retail investors in the western world are pulling out money from the risk assets, whether in the emerging markets or developed markets... FII fund managers have to find cash for which they have to sell," Saurav Mukherjea of Ambit Capital said.

Finance Minister Pranab Mukherjee said that withdrawals by foreign institutional investors and weakness in the rupee led to the market crash.

"The currency factor is clearly not helping. It has really hurt investor returns. What is causing the sellout is that they (FIIs) don't see any reason for the rupee to pullback to 45," he added. The rupee has fallen nearly 14 per cent in the last quarter alone. However, the currency was trading higher today, possibly on the back of intervention by the central bank.

Banking, energy, capital goods and IT stocks ended with 2-3 per cent cuts. Consumer durables were the only group of stocks to close with gains. These stocks had fallen sharply yesterday. Most other sectoral indices ended with over 1 per cent cut.

Public sector power major NTPC was the only stock to end with gains on the Sensex. Infrastructure firm Jaiprakash Associates was the top loser on the Sensex, falling over 5 per cent. HDFC Bank, Bharti Airtel, BHEL and Wipro ended 3-4 per cent lower.

On the Nifty, Reliance Communications gained 0.5 per cent after the Supreme Court granted bail to three executives of ADAG group in the 2G case.

DB Realty and Unitech also gained after the court granted bail to their promoters. SKS Microfinance ended with 5 per cent gains ahead of the board meeting. The company's founder Vikram Akula is likely to resign.

The market breadth was extremely weak with an overwhelming 85 per cent stocks declining on the broader BSE 500 index.