RTTNews - The Indian market tumbled on Tuesday, as traders lacked positive catalysts to buy stocks after a sharp 15% rise last week. Weak cues from the Asian and the European markets, a lack of direction from Wall Street and caution ahead of the release of fourth quarter GDP numbers on Friday led to heavy profit taking. Trading was extremely volatile ahead of derivative contracts expiry on Thursday.
After remaining mostly range bound in early trading, the market fell sharply in the afternoon on relentless selling across the board. However, IT stocks bucked the declining trend, as the rupee dropped for a second day on the back of the dollar's gains overseas. Realty, banking, capital goods and consumer durable stocks bore the brunt of the selling pressure.
After trading in a range of 13,991-13,519, the BSE Sensex finished at 13,589, down 324 points or 2.33% from its previous close. The S&P CNX Nifty fell 121 points or 2.85% to 4,117.
The broader market indexes, represented by smallcaps and midcaps, also gave up their early gains and ended sharply lower for the day after outperforming the frontline indexes in the preceding sessions. While the broad-based BSE 500 index fell 2.68%, the mid-cap index moved down 3.40% and the small-cap index shed 3.12%. The market breadth was slightly negative. Decliners outnumbered advancers by 1453 to 1325 and 32 stocks closed unchanged.
Among the major decliners, Reliance Communication plunged 9.56%, Ranbaxy plummeted 8.36%, Tata Motors slumped 5.91%, NTPC tumbled 5.33%, ICICI Bank fell 5.25%, Bharti Airtel declined 5.05% and DLF ended down 4.30%.
Larsen & Toubro, Jaiprakash Associates, Mahindra & Mahindra, ITC, ONGC and Reliance Industries are the other major losers.
However, Hindalco Industries advanced 3.23%, Infosys rose 2.34%, Wipro gained 1.54% and Sterlite Industries added 0.33%.
Karnataka Bank slumped 7.13% after reporting a 10% rise in its FY09 net profit on the back of high cost of interest on deposits. The bank is also seeking shareholder nod to raise up to Rs.500 crore through the qualified institutional (QIP) route.
Bank of Baroda ended down 1.40% despite reporting a 54% jump in its consolidated net profit for the year ended March. Hindustan Construction Company tumbled 3.91% after the company proposed to raise Rs.1, 500 crore though the QIP route.
Jet Airways plunged 8.22% despite reporting better-than-expected results for the fourth quarter ended March. Kingfisher, JetAirways and SpiceJet also slumped more than 8% each.
Parsvnath Developers advanced 4.28% after its board of directors approved a proposal to raise up to Rs.2500 crore by issuing fresh shares to institutional buyers. Penland surged up 19.73%, Anant Raj rose 1.38% and Omaxe edged up 0.47%, but Sobha Developers slumped 6.57%, DLF fell 4.30% and Indiabulls Real Estate ended down 3.67%. Unitech tumbled 5.64% on reports that it has sold a hotel in Gurgaon for Rs.200 crore to a high networth individual.
Bharti Airtel ended sharply lower for the second day in a row on concerns about dilution in shareholder earnings after it revived talks with South Africa's MTN for a possible merger. The stock tumbled 5.05%. Reliance Communication plunged 9.56%, Idea Cellular tumbled 4.04% and Tata Teleservices fell 5.22%.
Pantaloon Retail ended down 3% after it received shareholder nod for business restructuring. GHCL fell 2.85% after it received the board approval for merger of its wholly owned subsidiary Colwell and Salmon with itself.
IG Petrochemicals rose 1.61% on reporting a 103% rise in its net profit for the March quarter. Spanco surged up 9.65% after a block deal of 10.90 lakh shares was executed on the Bombay Stock Exchange.
Ranbaxy Laboratories plunged 8.36% on reports that it would take a hit of as much as $50 million due to a delay in supplying a key ingredient to UK's AstraZeneca used to make anti-ulcer drug, Nexium.
ONGC fell 2.56% after UBS AG lowered rating on the stock to 'sell' from 'buy'. Reliance Industries declined 2.25% and Cairn India fell 2.80%. Among state-run oil-marketing companies, HPCL moved down 1.81%, BPCL tumbled 3.92% and IOC ended down 0.26%.
On the BSE, Reliance Capital topped the traded value chart with total turnover of Rs. 262.07 crore followed by HDIL (Rs.230.94 crore), Reliance (Rs.178.20), Unitech (Rs.170 crore), and Reliance Natural Resources (Rs. 159.37 crore).
Cals Refineries topped the traded volumes chart with trades of 141.65 million shares, followed by Ispat (33.64 million), Satyam Computers (27.87 million), Unitech (22.48 million) and Reliance Natural Resources (19.88 million).
Pranab Mukherjee took charge as the finance minister at North Block on Monday and held meetings with top ministry officials to deliberate on various issues affecting the country's economy, reports suggest Maintaining the country's growth momentum and fiscal prudence will be the priorities of the government, Mukherjee told a television channel. The government will release its 2009-10 budget in the first week of July, and the goal would be to put the economy on the high growth path, he said.
Elsewhere, barring the Australian market, which recovered gradually over the course of the session after an early plunge, the other Asian markets showed volatility in Tuesday's trading before ending on a downbeat note. The major European averages were uniformly lower and US stocks were poised to kick off an abbreviated week on a lackluster note Tuesday morning in New York.
For comments and feedback: contact firstname.lastname@example.org