It was another dismal session for the market. Benchmark indices washed out completely; the Nifty has closed below 3000 for the first time since July 24, 2006. The BSE Sensex ended below 10000 yet again, after last week. FM statement on short positions could not helped out markets. Negative global cues and severe fall in the metal stocks led this crash.
However, the markets recoverd sharply to turn in green post FM announcement of SEBI asking FIIs to reverse short positions on borrowed shares but recovery did not last too long & fizzled out as viciously as it had gain.
Reliance Industries, Reliance Petroleum, Bharti Airtel, SAIL, SBI, HDFC, ICICI Bank, Tata Steel, Infosys, Tata Motors and Hindalco were big contributors to this fall.
Both benchmark indices have closed below their psychological levels. The Sensex plunged 398.20 points or 3.92%, to settle at 9,771.70. It has touched an intraday low of 9,681.28 and high of 10,260.55. The NSE Nifty Fifty closed at 2943.15, down 122 points or 3.98% from previous close. It has hit a high/low of 3085.10 and 2917.15.
Thursday, October 23, 2008
FIIs told to reverse short positions on borrowed scrips: FM
Finance Minister P Chidambaram stated that Sebi has asked FIIs to reverse short positions on borrowed shares. "Short transactions are likely to be reversed over the next few days." He disclosed this while addressing mediapersons today.
Reacting to the statement, Sandeep Parekh, Visiting Associate Faculty at IIM-A said the reversal of short positions is wrong as it removes cushion from the market.
Chidambaram added there is adequate liquidity and that banks must lend and not park in reverse repo.
According to Chidambaram, the inflation rate is still high. "Inflation is falling on easing crude prices. We see it easing further."
The Finance Minister also stated that reports of ICICI Bank increasing home loans rates is not correct.
Meanwhile, yesterday there were reports from CNBC-TV18, quoting sources, that the Sebi had re-affirmed its disapproval to overseas lending and borrowing by FIIs (foreign institutional investors). The Sebi has asked FIIs not to take fresh overseas lending and borrowing positions.
The Sebi had met top P-Note issuing FIIs earlier yesterday. Some P-Note issuers have already stopped overseas lending and borrowing.
Published on Thu, Oct 23, 2008 at 13:58 , Updated at Thu, Oct 23, 2008 at 15:40
Source : CNBC-TV18
Reacting to the statement, Sandeep Parekh, Visiting Associate Faculty at IIM-A said the reversal of short positions is wrong as it removes cushion from the market.
Chidambaram added there is adequate liquidity and that banks must lend and not park in reverse repo.
According to Chidambaram, the inflation rate is still high. "Inflation is falling on easing crude prices. We see it easing further."
The Finance Minister also stated that reports of ICICI Bank increasing home loans rates is not correct.
Meanwhile, yesterday there were reports from CNBC-TV18, quoting sources, that the Sebi had re-affirmed its disapproval to overseas lending and borrowing by FIIs (foreign institutional investors). The Sebi has asked FIIs not to take fresh overseas lending and borrowing positions.
The Sebi had met top P-Note issuing FIIs earlier yesterday. Some P-Note issuers have already stopped overseas lending and borrowing.
Published on Thu, Oct 23, 2008 at 13:58 , Updated at Thu, Oct 23, 2008 at 15:40
Source : CNBC-TV18
Mkts plummet; Tata Steel, Tata Motors, Idea top losers
The selling in metal, auto, oil, banking, telecom and realty stocks is putting pressure on the benchmark indices. The Nifty is trying to claw back above 3000, but has not succeeded till now. The Sensex is still trading below 10,000 mark. Asian markets have recovered a bit from lows of the day, but these are still under pressure.
The long only funds continue to be seller across the region. The mood is extremely cautious; selling pressure is seen at every higher level. Citi and Deutsche Bank have downgraded Reliance Petroleum (RPL) to sell. The Citi has revised RPL price target lower to Rs 105 from Rs 155. The Reliance Industries is under selling pressure ahead of its results.
The Sensex fell 292 points to 9,877 and the Nifty lost 81 points to 2,983, at 12:22 pm. BSE Midcap and Small Cap indices plunged over 2.5% each.
Among the frontliners, Tata Steel, Hindalco, Tata Motors, HDFC, Bharti Airtel and Idea Cellular slipped 8-11%. However, the gainers are ITC, BHEL, Grasim, Infosys, Wipro and BPCL.
The market breadth continues to be weak; about 842 shares have advanced while 2123 shares have declined. Nearly 225 shares are unchanged.
Ambareesh Baliga of Karvy Stock Broking said that it’s the time now to restructure the portfolios. One must exit from junks stocks as they have fallen 80-90% and move on to fresh sectors and stocks which seem to be leaders going ahead.
BSE Metal Index fell over 7%. Auto, Oil & Gas, Realty, Bankex and Healthcare indices lost 2-4.5%. Power and Capital Goods fell over 1%.
Inflation for the week ended October 11 stood at 11.07% versus 11.11% in earlier week.
The crude is hovering at around USD 67.55 to a barrel on the NYMEX. The Indian Crude Basket has fallen to 20-month low of USD 61.47/bbl on Wednesday.
On the global front, European markets have opened lower. CAC, DAX and FTSE fell 0.5-1%.
Asian markets have recovered a bit; down about 2-4%. Only Kospi fell over 7%.
The long only funds continue to be seller across the region. The mood is extremely cautious; selling pressure is seen at every higher level. Citi and Deutsche Bank have downgraded Reliance Petroleum (RPL) to sell. The Citi has revised RPL price target lower to Rs 105 from Rs 155. The Reliance Industries is under selling pressure ahead of its results.
The Sensex fell 292 points to 9,877 and the Nifty lost 81 points to 2,983, at 12:22 pm. BSE Midcap and Small Cap indices plunged over 2.5% each.
Among the frontliners, Tata Steel, Hindalco, Tata Motors, HDFC, Bharti Airtel and Idea Cellular slipped 8-11%. However, the gainers are ITC, BHEL, Grasim, Infosys, Wipro and BPCL.
The market breadth continues to be weak; about 842 shares have advanced while 2123 shares have declined. Nearly 225 shares are unchanged.
Ambareesh Baliga of Karvy Stock Broking said that it’s the time now to restructure the portfolios. One must exit from junks stocks as they have fallen 80-90% and move on to fresh sectors and stocks which seem to be leaders going ahead.
BSE Metal Index fell over 7%. Auto, Oil & Gas, Realty, Bankex and Healthcare indices lost 2-4.5%. Power and Capital Goods fell over 1%.
Inflation for the week ended October 11 stood at 11.07% versus 11.11% in earlier week.
The crude is hovering at around USD 67.55 to a barrel on the NYMEX. The Indian Crude Basket has fallen to 20-month low of USD 61.47/bbl on Wednesday.
On the global front, European markets have opened lower. CAC, DAX and FTSE fell 0.5-1%.
Asian markets have recovered a bit; down about 2-4%. Only Kospi fell over 7%.
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