Markets continue to fall; Sensex ends 296 pts lower

The Indian markets closed the session with heavy losses for the second day as technology shares continue to weigh

Major headlines

IFCI Q4 net profit dips 4%

Indusind Bank net profit soars 75% in Q4

HDFC Bank net profit up 33% in Q4



Indian indices

Again it turned out to be a tough day for markets, with realty and technology shares adding pressure. The IT index continued to slide after Infosys Technologies’ disappointing numbers; this led markets to decline heavily. Selling was seen across the board, pushing the markets lower. Weak global peers and concerns of possible rate hike by the Reserve Bank of India also weighed on sentiments.

The Sensex began the trade on a flat note, mere three points up at 19390. The index made a sharp recovery and hit the day’s high of 19649 in the mid-morning session. The Sensex failed to hold that level and started to trim gains as the session progressed. In late morning trade, a sudden bout of selling led the Sensex to post heavy losses. Weakness in the technology stocks dragged the Sensex to hit the day’s low of 19071 in late trade. The Sensex fell 296 points to close at 19091 and the Nifty settled at 5729, down by 95 points.

Bond and Rupee update: India’s bond yields rose to a two-month high after inflation exceeded the central bank’s forecast, fueling speculation that the monetary authority will boost borrowing costs for a third time this year. India’s rupee rose for a second day on speculation that the central bank will raise borrowing costs after inflation gathered pace in March.

Market sentiment

The market breadth stood weak. Of the 3,012 stocks traded on the BSE, 1,083 (36%) advanced while 1,826 (61%) declined. However, 103 (3%) stocks remained unchanged.

Viewing volumes

Industrial finance company - IFCI was traded the most, with over 0.67 crore shares changing hands on the BSE. It was followed by wind turbine major - Suzlon Energy (0.49 crore shares), India's second largest real estate developer - Unitech (0.35 crore shares), JP Group firm - Jaiprakash Associates (0.25 crore shares) and the major shipbuilding and offshore fabrication company - Pipavav Shipyard (0.16 crore shares).

Sectoral & stock screening

All the sectors closed on a negative note. BSE Realty was the major loser, declining by 3.17%, followed by BSE Information Technology (IT) down by 2.73% and BSE TECk slipped by 2.32%. Rest of the sectors lost in the range of 0.41 - 2.12%.

In the 'A' group stocks, top three gainers were - MMTC surged by 11.86%, Mangalore Refinery & Petrochemicals rose by 4.24% and Oberoi Realty gained by 2.71%. Top three losers were - Chambal Fertilisers & Chemicals dropped by 5.84%, Opto Circuits slipped by 5.71% and DLF fell by 4.69%.

Global signals

The European shares extended losses on Monday, with a key index slipping into negative territory for the year, as growing concerns over debt troubles in the euro zone periphery prompted investors to shun risky assets.

All the Asian indices closed the session in the red on Monday except Shanghai Composite that rose by 0.21%, hitting a new 5-month high.

The US stock index futures point to a lower opening on the Wall Street on Monday.

Market Outlook: In the US, NAHB Housing Market Index for the month of April will be out on Monday