Markets end below key levels on heavy sell-off

The Indian markets closed the session with losses on account of selling pressure in capital goods, IT, oil & gas stocks, with the Sensex below 19K and the Nifty below 5700

Major headlines

Hindustan Zinc Q3 net profit rises by 12% yoy

LIC Housing Finance Q3 net profit rises 39% yoy

Bajaj Auto Q3 net profit up 40% yoy



Indian indices

The Indian markets lost ground after its strong rise in the previous session. Relentless selling pressure was seen in the second half of the trade in capital goods (CG), information technology (IT) and oil & gas stocks and also in index heavyweights, which dragged the Sensex and the Nifty below crucial levels of 19000 and 5700 respectively.

Among large-caps, Sterlite Industries, Hindalco Industries, Reliance Infrastructure, DLF, Bajaj Auto, SAIL and HCL Technologies jumped 1-4%. However, State Bank of India, L&T, Infosys Technologies, HDFC Bank, Jindal Steel, Ambuja Cements, GAIL, Suzlon Energy and ACC were down 1.4-2.9%. In mid-cap space, ARSS Infra, Manappuram, SRF, Ruchi Soya and HMT were up 5-7.4% while Future Capital, ING Vysya Bank, Sintex India, IVRCL Infrastructure and CESC fell 3-4.5%.

The Sensex began the session 61 points higher at 19153 tracking supportive Asian markets. The index fluctuated between gains and losses in the morning trade and in between hit the day’s high of 19167. The index tumbled in the afternoon session owing to selling pressure in heavyweights and IT, capital goods stocks. In late trade, the Sensex hit the day’s low of 18898 and ended the session with heavy losses.

The Sensex shut 114 points lower at 18978 and the Nifty fell 33 points to close at 5691.

Bond & Rupee update: India’s benchmark bond gained for the second day on speculation investors stepped up debt purchases to take advantage of yields at eight-month highs. India’s rupee rose for a second day on speculation the central bank will raise interest rates next week to cool inflation, boosting the appeal of local assets to overseas investors seeking higher yields.

Market sentiment

The market breadth stood marginally positive. Out of the 2,993 stocks traded on the BSE, 1,416 gained while 1,387 fell. Whereas, hundred and ninety stocks traded unchanged.

Sectoral & stock screening

Of the 13 sectoral indices, nine closed lower while four ended higher. Among losers, BSE CG slipped the most by 1.20%, while BSE IT and BSE Oil & Gas shed by 1.18% and 1.15% respectively. Among gainers, BSE Metal rallied by 1.78%, followed by BSE Realty up by 1.66% and BSE Auto rose by 0.10%.

Among 'A' group stocks, top three gainers - LIC Housing Finance surged by 9.58%, Canara Bank up by 7.89% and Opto Circuits gained by 5.53%. Top three losers - D B Realty slid by 7.14%, Sintex Industries down by 4.18% and Lanco Infrastructure declined by 3.74%.

Viewing volumes

Leading home finance company - LIC Hounding Finance was the most traded scrip with over 1.12 crore shares changing hands on the BSE, followed by wind turbine major - Suzlon Energy (0.44 crore shares), construction firm - Hindustan Construction Company (0.36 crore shares), India’s second largest developer - Unitech (0.34 crore shares) and industrial finance company - IFCI (0.23 crore shares).

Global signals

The European shares slipped from a 28-month high, with truckmakers lower on an anti-trust probe and with banks falling back after a recent strong run.

All the major Asian markets ended the session in the positive territory except Jakarta Composite and Straits Times.

The US stock index futures point to a marginally lower opening on the Wall Street ahead of Housing Starts data.

Market outlook: In the US, Building Permits and Housing Starts data will be out.