Mumbai: Sensex crashed over 500 points to 16,533 as the Indian rupee slumped below 49 per dollar with global sell-off adding fuel to the fire. The 50-share NSE Nifty also tumbled 161 points to 4,972.
The Indian rupee slipped to 49.08 per dollar, down 0.76 or 1.57 per cent from Wednesday's closing value, signalling huge outflow of money from India. Huge fresh shorts were seen in the market; Nifty 5000 put shed more than 20 lakh shares in open interest.
European markets too fell further; France's CAC, Germany's DAX and Britain's FTSE plunged 4 per cent each.
On the home turf, the broader indices too were following the same trend; the BSE Midcap and Smallcap indices lost more than 2 per cent.
Among sectors, the BSE Realty, Metal, Oil & Gas, Capital Goods, Bank and Auto indices were down 3-4 per cent. Power, IT, FMCG and Healthare dropped 2-2.7 per cent.
Heavyweights Reliance Industries and Bharti Airtel crashed 5 per cent each.
At 13:42 hours IST : Sensex drops over 450 pts; Re nears 49/USD, Europe dips 3-4per cent
Further fall in European markets and a sharp crack in major sectors has made the Indian equity benchmarks even weaker. The 30-share BSE Sensex slipped 469 points to 16,595 and the 50-share NSE Nifty fell 140 points to 4,992. A continuously depreciating rupee may be signaling offloading of exposure from foreign institutional investors.
Federal Reserve's statement spooked all global markets. European markets extended fall; France's CAC, Germany's DAX and Britain's FTSE were down 3-4 per cent. The Dow Jones Futures dropped over 1 per cent.
Fed said there was a significant downside risks to the US economy, though it plans to buy USD 400 billion of bonds.
Emil Wolter, head of regional Asian equity strategist at RBS believes that we are now looking at more downside risks for markets. In fact, the disappointment seen worldwide is a sign of things to come, he told CNBC-TV18.
On the home turf, Indian rupee depreciated to 48.97 per dollar, down 0.65 or 1.35 per cent. Dollar Index was quite strong in the afternoon trade; it rose 0.4 per cent to 78.10.
Wolter believes that the depreciating rupee is a factor that is working against India and he attributes this weakness to a vulnerable funding position. "The current account deficit is blowing out, the trade numbers seem consistent and meanwhile the government debt position and the whole reform programme are all but falling to tatters," he said.
Among largecaps, Jaiprakash Associates, Sterlite Industries, DLF, Tata Motors, Reliance Industries, Reliance Communication and SAIL plunged 5-7 per cent. However, only BPCL gained 0.5 per cent.
About six shares slipped for every share gaining. The BSE Midcap and Smallcap indices dipped 2 per cent each.
In the midcap space, KGN Industries rallied 5 per cent. BOC India, WABCO India, Trent and Blue Star were up 1 per cent each. However, Jubilant Life, HDIL, Shree Renuka, Pantaloon Retail and Kirloskar Oil were down 6-7 per cent.
In the smallcap space, Astral Poly, Marathon Nextgen and Nitin Fire Protection shot up 10-17 per cent. Borosil Glass and Everonn Education gained 5-6 per cent. However, Entegra, Parenteral Drug, AP Paper Mills, ISMT and Aptech slipped 8-10 per cent.
At 12:46 hours IST : Nifty slips below 5000; RIL, Europe cues play spoilsport
The 50-share NSE Nifty broke the key psychological 5,000 mark due to a 4 per cent fall in heavyweight Reliance Industries and sharp crack in European markets in opening trade. The index shed 145 points to 4988 and the 30-share BSE Sensex fell 478 points to 16587.
European markets opened with a sharp gap down following Fed's decision. France's CAC, Germany's DAX and Britain's FTSE were down 3-3.5 per cent. US Federal Reserve kept rates unchanged at 0.0-0.25 per cent and discount rate at 0.75 per cent. But it warned by saying "significant downside risks' to the US economy, which played a spoilsport across the globe on Thursday.
On the home turf, major frontline stock Reliance Industries lost more than 4 per cent as sources claimed that Oil Ministry and DGH may lower the company's cost recovery at D1D3.
CNBC-TV18 learnt from Oil Ministry sources that RIL's cost recovery may be cut by USD 1.8 billion to USD 3.4 billion. RIL has recovered USD 5.2 billion against expenditure of USD 5.6 billion.
All sectoral indices were trading in the red. The BSE Realty and Metal lost nearly 4 per cent. Auto, Capital Goods, Oil & Gas, Bank, Power and IT indices fell 2-3 per cent.
About six shares declined for every share rising on NSE.
At 12:14 hours IST : Sensex crashes 400 pts ahead of European mkts opening
It seems it's a bloody Thursday on Dalal Street. Indian equity benchmarks slipped further led by fall in global peers. The 30-share BSE Sensex shed 396 points to 16,669 and the 50-share NSE Nifty dropped 120 points to 5,013, led by dip in 48 stocks with no sector trading in the green.
Fed's indication of a "significant downside risks" to the US economy has dampened the mood of all global investors as it is the largest economy in the world. Billionaire investor George Soros said he believed the United States was already experiencing the pains of a double-dip recession and that Republican opposition to Obama's fiscal stimulus plans was to blame for sluggish growth.
On the home turf, heavyweight Reliance Industries crashed 2.6 per cent and ONGC was down just 0.8 per cent.
From the banking space, SBI, ICICI Bank and HDFC Bank were down 2-3 per cent. From the realty space, DLF lost more than 4 per cent.
Metal too has seen heavy sell-off. Sterlite Industries plunged 5.5 per cent. SAIL, JSPL and Tata Steel fell 3-.5 per cent.
Among other largecaps, TCS, Bharti Airtel, NTPC, L&T, Infosys and Tata Motors plummeted 2-4.6 per cent. However, only BPCL and ACC were in green.
On the global front, European markets futures like CAC, DAX and FTSE fell 2-4 per cent, which is pointing lower opening.
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