BSE Sensex slumps 449 points as rupee hits record low,Tata Power shares plunge

The Bombay Stock Exchange 30-share barometer resumed weak and continued its downslide to end at 18,733.04,a steep fall of 449.22 points or 2.34 per cent. In the last ten trading sessions,Sensex has fallen in nine days while yesterday has managed to settle in positive terrain.

After today’s plunge and the rupee’s decline,India’s market capitalisation stood at Rs 60.18 lakh crore,which translates to USD 989 billion at exchange rate of 60.8 versus dollar. The rupee retreated from record lows to trade at 60.8 levels at 1710 hours.

Dipen Shah,Head of PCG Research,Kotak Securities said: “Markets ended sharply lower on the back of continuing concerns about the rupee and some disappointing results. The rupee traded at a new low and that caused concerns in market.”

Across-the-board selling was seen as all 13 sectoral indices closed in the red between 0.40 per cent and 5.62 per cent,with consumer durable,realty,banking,metal,power,refinery,PSU,capital goods and FMCG dragging markets down.

An estimated Rs 5,600 crore payment crisis continued to overhelm National Spot Exchange Ltd,which raised concerns that problems may spill over to stock markets,brokers said.

The NSE Nifty index on the National Stock Exchange tumbled 143.15 points,or 2.52 per cent,to 5,542.25,led by stocks of consumer durables,metals,banks and other interest-rate sensitive sectors. SX40 index,the flagship index of Multi Commodity Exchange of India Ltd (MCX-SX),closed at 11,125.38,down 303.34 points,or 2.65 per cent.

Globally,Asian stocks ended mixed as stronger growth in American service industries fuelled speculation that the US Federal Reserve will soon be able to reduce economic stimulus.

Key benchmark indices in China and Japan firmed up by 0.49 per cent to 1.00 per cent while indices in Hong Kong,Singapore,South Korea and Taiwan dropped by 0.50 per cent to 1.34 per cent.

European markets were trading marginally higher as indices in France,Germany and the UK inched up by 0.10 per cent to 0.44 per cent.

Turning back to the domestic market,27 scrips out of the 30-share Sensex ended lower while three finished higher.

Tata Power was the top loser from the Sensex pack with a fall of 14.76 per cent after company reported a consolidated net loss in its first quarter.

Other major losers were BHEL (6.58 pc),HDFC (5.90 pc),Sterlite Ind (5.18 pc),Tata Steel (4.47 pc),ICICI Bank (4.03 pc),Bharti Airtel (3.92 pc),HDFC Bank (3.91 pc),Bajaj Auto (3.49 pc),ONGC (3.29 pc),Jindal Steel (2.96 pc),SBI (2.47 pc),RIL (2.38 pc) and L&T (2.27 pc).

Among the sectoral indices,the S&P BSE-CD fell by 5.55 per cent,followed by S&P BSE-Realty (4.45 pc),S&P BSE-Bankex (3.90 pc),S&P BSE-Metal (3.24 pc),S&P BSE-Power (3.21 pc),S&P BSE-Oil&Gas (2.65 pc),S&P BSE-PSU (2.57 pc),S&P BSE-CG (2.56 pc) and S&P BSE FMCG (2.02 pc).

“Global markets are giving mixed cues and quarterly results for FY14 have also not been much encouraging. As most of the stocks and the index as well has reached oversold zone,we expect some recovery in coming sessions,” said Rakesh Goyal,Senior Vice President,Bonanza Portfolio Limited.

The market breadth remained negative,with 1,599 shares shares ending lower and 655 finishing higher. 124 shares ruled steady. Total turnover dropped further to Rs 1,682.11 crore from 1,765.97 crore yesterday.

Indian shares slump nearly 2.5 pct after rupee hits record low

(Reuters) Indian shares slumped nearly 2.5 percent on Tuesday as lenders such as Yes Bank Ltd fell on fears that the central bank would announce new cash-draining measures to defend the rupee which hit a record low.

The rupee’s depreciation is sapping the confidence of traders who are concerned that the central bank’s measures to tighten liquidity are already threatening economic growth. The broader NSE index has fallen 8.1 percent since July 15,the first time that the Reserve Bank of India announced steps to drain cash.

The rupee’s record low of 61.80 touched on Tuesday means new measures could follow or existing ones would be extended for a prolonged period to quell volatility.

Still,the after market-hours appointment of Raghuram Rajan, the chief economic adviser in the finance ministry,as RBI governor starting in early September could help support sentiment,raising expectations for a new approach.

“My sense is liquidity tightening measures are here to stay. There cannot be any time-frame as there is no clarity on (U.S.) Fed’s tapering programme,” said Aneesh Srivastava,chief investment officer at IDBI Federal Life Insurance Co Ltd.

The benchmark BSE index fell 2.34 percent,or 449.22 points,to end at 18,733.04. This was its biggest single-day percentage fall since June 20. It closed below the psychologically important 19,000 mark.

The broader NSE index slumped 2.52 percent,or 143.15 points,to end at 5,542.25,marking its lowest close since April 12.

The banking sub-index slumped 3.9 percent on continued speculation that the RBI may announce more steps to prop up the rupee.

Yes Bank fell 8.2 percent,while HDFC Bank Ltd lost 3.8 percent and ICICI Bank Ltd ended 4 percent lower. Financial Technologies shares lost 19.7 percent after its commodity exchange unit National Spot Exchange Ltd (NSEL) halted its electronics trading services.

The Multi Commodity Exchange of India Ltd,which is 26 percent owned by Financial Technologies,also fell 10 percent even as the exchange said it was a “totally different” entity from NSEL.

Bharat Heavy Electricals Ltd fell 6.8 percent,adding to Monday’s 19.3 percent decline,marking its lowest intraday level since Nov. 2,2005. The company’s quarterly profit dropped 49 percent on sharply lower sales in its power and industry businesses in a slowing economy.

Drug maker Lupin Ltd shares fell 0.9 percent a day ahead of its earnings. The company may miss the consensus operating profit forecast for the April-June quarter when it reports results on Wednesday,according to Thomson Reuters StarMine data.

Among the gainers,power equipment maker Crompton Greaves Ltd shares rose 3.1 percent after the company’s quarterly operating profit beat expectations,dealers said.