Tuesday, the Indian market fell sharply on profit taking, as investors squared their long positions ahead of the expiry of April series derivative contracts amid extremely negative global cues. Renewed concerns about the impact of swine flu outbreak on global trade and consumer confidence and reports that U.S. banks may have to raise more capital, also weighed on investor sentiment. Analysts said that a sharp correction was overdue as the market rallied more than 36% over the past seven weeks.
After opening almost flat at 11,371, the BSE Sensex fell to a low of 11,002 before recouping some of its loss to finish at 11,002, down 370 points or 3.25% over the previous close. Likewise, the S&P CNX Nifty fell 108 points or 3.10% to 3,362.
Benchmarks for second-line stocks, the small-cap and the mid-cap indexes on the BSE also fell more than 3% each. The market breadth was extremely negative, with decliners outnumbering advancers by 1807 to 654.
Rate-sensitive realty and banking stocks were the worst hit. Metal and capital good stocks also corrected sharply on concerns over the impact of Swine flu on the global economy.
Among the major decliners, DLF, Tata Steel, HDFC and Reliance Communication plunged more than 7% each. Reliance Infrastructure plummeted 6.82%, Tata Motors slumped 6.41%, ICICI Bank tumbled 6.11% and BHEL fell 4.12%.
Hindalco, HDFC Bank, Larsen & Toubro, State Bank of India, ITC, Tata Power, Wipro and Reliance Industries were the other prominent losers. All the 30 Sensex stocks ended in the red.
Aditya Birla Nuvo plunged 10.54% after its net profit for the March quarter fell 62% year-over-year to Rs.26.39 crore. Hindustan Zinc tumbled 5.32% after the company cut the prices of lead and zinc by 2.5-3%, in line with price changes on the London Metal Exchange.
Aban Offshore plummeted 10.56% on reporting a consolidated net loss of Rs.93.08 crore in the fourth quarter ended March compared to a net profit of Rs.33.92 crore in the corresponding quarter last year.
Oil -explorer Reliance Industries fell 2.69%, ONGC shed 1.91% and Cairn India lost 2.75% after crude oil price dropped nearly 2% in Tuesday's Asian trading. On the other hand, state-owned oil companies HPCL, BPCL and IOC closed firm.
Media and Entertainment Group UTV Software Communications slumped 6.52% after its consolidated net profit for the fourth quarter ended March declined 40.16% year-over-year to Rs.11.22 crore.
Biotechnology firm Biocon slipped 0.34% on reporting a consolidated net profit of Rs.24.88 crore for the quarter ended March, nearly a 62% decline over the same period a year ago.
Britannia Industries rose 1.44% after it has entered into an agreement with Fonterra Brands (Mauritius Holding), Mauritius, for acquiring the latter's 49% equity and preference shareholding in Britannia New Zealand Foods Pvt, their joint venture company engaged in dairy business.
SKF India tumbled 5.56% after it announced the beginning of work for its new manufacturing site in Haridwar, Uttarakhand, at a cost of Rs.150 cr.
Tata Motors slumped 6.41% amid reports that it will raise Rs.3750 crore ($745 million) through bonds sale in the domestic market between mid and late May, to bridge the $2 billion residual Jaguar and Land Rover loan in June.
Drug maker GlaxoSmithKline Pharma closed up 0.96% after its net profit for the first quarter ended March, rose 18.14% to Rs.143.27 crore from Rs.121.27 crore in the corresponding quarter last year. Cadila Health Care ended down 1.90% despite reporting strong results for the March quarter. Bharti Airtel declined 2.30% ahead of its March quarter earnings announcement on Wednesday.
Reliance Capital topped the traded value with a turnover of Rs.221.25 crore followed by Jaiprakash Associates (Rs.211.20 crore), ICICI Bank (Rs.205.22 crore), Reliance (Rs.190.49 crore) and Reliance Infrastructure (Rs.171.25 crore).
Unitech topped the traded volume chart with trades of 23.10 million shares followed by Jaiprakash Associates (16 million), Reliance Natural Resources (13.90 million), Suzlon (10.13 million) and IFCI (8.62 million).
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