SENSEX 16030.09 -298.16
NIFTY 4858.25
-84.55
USD/INR 0054.27 +00.54
NASDAQ 2894.61 +00.85
|
UPDATEDTIME 09.28 PM 16 MAY 2012
|
The Sensex joined the freefall of its global peers, shedding about 300
points to close the day near its important support level as there was no
respite from the spate of bad news. While investors shied away on concerns of
the Greek crisis, back home the rupee fell to a record closing of 54.49 to the
greenback.
The BSE benchmark index closed at 16,030.09, down 298.16 points, or 1.83 percent. It touched an intraday high of 16,132.68 and a low of 15,974.60.
The Nifty ended at 4,858.25, down 84.55 points, or 1.71 percent. It touched an intraday high of 4,882.25 and a low of 4,837.05 in trade today.
The partially convertible rupee, which has been already under pressure due to domestic economic factors, fell to a record low against the dollar ending at 54.49, down 71 paise, against its previous close of 53.78.
The fundamental view on rupee is that it is down because of the huge deficit and we are also not seeing too many inflows happening on the capital account. This is being reflected in the rupee's movement. However, it is very important to cut volatility because if this continues, it is going to hurt everybody," S.J. Balesh, Senior Director-Treasurey, IDFC, said. He is of the view that if the RBI doesn't intervene strongly, the rupee may touch the 55 lvel soon.
However, the RBI is running out of options to stem the rupee's slide. It sold about $20 billion in spot market between September 2011 and March 2012 to help the rupee recover, analysts say.
A major impact of it (intervention) is seen on the volume of forex reserves. FX reserves have fallen to $293.173 billion from $295.361 billion. The declining reserves limit the RBI's ability to intervene in the local market and the burden of import bill also reduces the impact of the intervention.
Meanwhile, Finance Minister Pranab Mukherjee told Parliament that the eurozone crisis was the reason for India's economic slowdown, adding that "India's growth story is intact".
Mukherjee also said he would take austerity measures to ensure more fiscal discipline and send the right signals to the market.
"The market is being driven completely by global cues and the rupee's reaction is leading to fear among investors. Unless the currency stabilizes, the market won't recover. We are getting into a period where valuations are becoming attractive but investors will have to bear near-term volatility.
The BSE Midcap Index was down 0.78 percent and the BSE Smallcap Index fell 1.11 percent.
Among sectoral indices, the BSE Metal Index was down 2.68 percent, the BSE Auto Index moved 2.59 percent lower, the BSE Capital Goods Index fell 1.69 percent and the BSE Bankex was 1.65 percent lower.
Tata Motors (7.34 percent), Tata Steel (3.89 percent), BHEL (3.74 percent), HDFC (3.71 percent) and Hindalco Industries (3.28 percent) were among the leading Sensex losers.
Tata Motors fell after the automaker reported flat global sales in April at 87,377 units over the same period last year. Sales of luxury brands from Jaguar Land Rover were at 25,143 units during April, up 29 percent from the same month last year.
HDFC was under pressure after MSCI reduced the company's weightage in the MSCI Index.
Sterlite Industries (0.87 percent) and Bajaj Auto (0.47 percent) were the only gainers.
The market breadth was negative on the BSE with 983 gainers against 1,733 losers.
The European markets were down as debt-hit Greece gets set for fresh elections. The FTSE 100 was down 0.67 percent and the DAX was 0.62 percent lower.
The BSE benchmark index closed at 16,030.09, down 298.16 points, or 1.83 percent. It touched an intraday high of 16,132.68 and a low of 15,974.60.
The Nifty ended at 4,858.25, down 84.55 points, or 1.71 percent. It touched an intraday high of 4,882.25 and a low of 4,837.05 in trade today.
The partially convertible rupee, which has been already under pressure due to domestic economic factors, fell to a record low against the dollar ending at 54.49, down 71 paise, against its previous close of 53.78.
The fundamental view on rupee is that it is down because of the huge deficit and we are also not seeing too many inflows happening on the capital account. This is being reflected in the rupee's movement. However, it is very important to cut volatility because if this continues, it is going to hurt everybody," S.J. Balesh, Senior Director-Treasurey, IDFC, said. He is of the view that if the RBI doesn't intervene strongly, the rupee may touch the 55 lvel soon.
However, the RBI is running out of options to stem the rupee's slide. It sold about $20 billion in spot market between September 2011 and March 2012 to help the rupee recover, analysts say.
A major impact of it (intervention) is seen on the volume of forex reserves. FX reserves have fallen to $293.173 billion from $295.361 billion. The declining reserves limit the RBI's ability to intervene in the local market and the burden of import bill also reduces the impact of the intervention.
Meanwhile, Finance Minister Pranab Mukherjee told Parliament that the eurozone crisis was the reason for India's economic slowdown, adding that "India's growth story is intact".
Mukherjee also said he would take austerity measures to ensure more fiscal discipline and send the right signals to the market.
"The market is being driven completely by global cues and the rupee's reaction is leading to fear among investors. Unless the currency stabilizes, the market won't recover. We are getting into a period where valuations are becoming attractive but investors will have to bear near-term volatility.
The BSE Midcap Index was down 0.78 percent and the BSE Smallcap Index fell 1.11 percent.
Among sectoral indices, the BSE Metal Index was down 2.68 percent, the BSE Auto Index moved 2.59 percent lower, the BSE Capital Goods Index fell 1.69 percent and the BSE Bankex was 1.65 percent lower.
Tata Motors (7.34 percent), Tata Steel (3.89 percent), BHEL (3.74 percent), HDFC (3.71 percent) and Hindalco Industries (3.28 percent) were among the leading Sensex losers.
Tata Motors fell after the automaker reported flat global sales in April at 87,377 units over the same period last year. Sales of luxury brands from Jaguar Land Rover were at 25,143 units during April, up 29 percent from the same month last year.
HDFC was under pressure after MSCI reduced the company's weightage in the MSCI Index.
Sterlite Industries (0.87 percent) and Bajaj Auto (0.47 percent) were the only gainers.
The market breadth was negative on the BSE with 983 gainers against 1,733 losers.
The European markets were down as debt-hit Greece gets set for fresh elections. The FTSE 100 was down 0.67 percent and the DAX was 0.62 percent lower.
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RAKESH MAKIN
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Email:makin_97@yahoo.com
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