Sensex sinks 169 points on global worries

Fall across the globe due to growth worries disturbed the sentiment in India as well. The Sensex down 169 points and the Nifty down 52 points at the close

Major headlines

Bharti Airtel Q1 consolidated net profit down nearly 28%

CEAT Q1 net loss at Rs42 crore

Oberoi Realty Q1 consolidated PAT surges 33%




Indian indices

Renewed fears about weakening economic growth dented the sentiment across the globe. Persistent selling by investors on mounting concerns about slowing global growth led the Sensex and the Nifty to fall below the levels of 18000 and 5400 respectively. The trading sentiment remained bearish and the markets closed the session on a negative note amid a world-wide carnage. The markets touched the lowest level in six weeks and witnessed a second straight day fall.

Investors were worried over the health of the global economy due to poor economic data that overshadowed a congressional deal to raise America’s debt ceiling to avoid a first-ever default.

The major heavyweight draggers were — L&T down by 4.33%, Tata Motors down by 3%, DLF down by 2.15%, ICICI Bank down by 1.97%, Bharti Airtel down by 1.23% and RIL down by 1.19%.

Sensex movements: Tracking losses across the globe, the Sensex opened the trade 140 points lower at 17970 and remained under pressure for the rest of the day. In early afternoon session, the index hit the day’s low of 17860 on selling across the board. However, the index trimmed some losses and touched the day’s high of 18006 in afternoon trade. The Sensex closed lower by 169 points at 17941 and the Nifty fell 52 points to shut at 5405.

Bonds & Rupee

India’s 10-year bonds rose, pushing yields to the lowest level in more than a week, on speculation that slowing economic growth will prompt the central bank to refrain from raising interest rates too aggressively.

India’s rupee fell to a one-week low owing to an unexpected drop in the US consumer sp ending.

Market sentiment

The market breadth was in favour of declines with 1,706 scrips losing and 1,160 scrips advancing. However, 111 scrips remained unchanged.

Viewing volumes

An integrated infrastructure development company - Lanco Infratech was the most traded share, with over 0.86 crore shares changing hands on the BSE. Following that India's largest hotel chain that operates under the brand of Taj Hotels - Indian Hotels Company (0.39 crore shares), a Jaypee Group firm - Jaiprakash Associates (0.31 crore shares), Asia's third- largest maker of wind turbines - Suzlon Energy (0.27 crore shares) and a pioneering leader in the management and application of electrical energy - Crompton Greaves (0.26 crore shares).

Sectoral & stock screening

Only two sectoral indices managed to rise - BSE Metal gained by 0.30% and BSE FMCG went up by 0.26%. Among losers, BSE Capital Goods (CG) lost the most by 2.65%, then comes BSE Auto down by 1.45% and BSE Healthcare (HC) slipped by 1.02%.

In 'A' group stocks, Lanco Infratech was the biggest gainer surging by 9.38%, JSW Steel rose by 5.24% and National Aluminium Company went up by 3.79%. On the flip side, Jubilant FoodWorks was the major loser declining by 4.83%, L&T slid by 4.33% and Engineers India dropped by 4.26%.

Global signals

The European shares dropped sharply on Wednesday, tracking steep price falls on the Wall Street and Asia, on escalating worries about the global economy after a raft of weak data and fears over the euro zone debt crisis spreading to Italy.

The Asian indices closed the trade on a negative note on Wednesday owing to global economy concerns. Nikkei index hit a five-week low; fell over 2%.

The US stock index futures pointed to a higher opening on the Wall Street on Wednesday.

Market Outlook: In the US, MBA Mortgage Applications, ADP Employment Change and Factory Orders data will be in focus on Wednesday.