Benchmark Indian equity indices, after recovering slightly, have once again fallen to the lows of the day. The slight recovery earlier was helped by buying in some counters. Auto, Pharma and Consumer Durables have seen some buying interest with Maruti Suzuki, Cipla and Hero MotoCorp leading the gains.
Key indices had lost ground early in the morning, tracking weakness in risky assets globally, as investors fret over slow progress of monsoon and the rupee's relentless slide against the US dollar. The rupee's fall to a new record low versus the greenback at 56.99 has offset the steep decline in crude oil prices.
The fall in the Indian and other Asian markets is not as much as the selloff witnessed in the US markets overnight. Even the European markets managed to ward off a bigger fall despite lingering concerns about the region's long-running debt crisis.
At 11:51 am (IST), the BSE Sensex was at 16,906, down 126 points or 0.7% from the previous close. It had earlier been as low as 16,855 and as high as 16,984. It opened at 16,882.
The NSE Nifty was at 5,122, down 42 points from the last close. It earlier hit a day’s low of 5,097 and a day’s high of 5,148. It opened at 5,101.
The broader market is faring a tad better than the Large-Cap peers. The BSE Small-Cap index was down 0.15% while the BSE Mid-Cap index was flat.
While most sectoral indices are in the red, almost all of them have lost less than 1%. Metals is the biggest laggard followed by Capital Goods, Banking, Realty and Oil&Gas
The INDIA VIX is up ~4.8% at 20.89 after being as high as 20.94 and as low as 19.61. It opened at 19.94.
The froth seems to be coming off now. Crude oil has plunged and so has safe haven gold. US dollar appears to be the king right now. Despite a bailout for Spanish banks and a favourable Greek election, uncertainties abound about the Eurozone debt crisis.
The troublesome Europe has gradually taken toll on US and China, two largest economies of the world. Markets are clamouring for fresh round of stimulus from the central banks.
Central banks like the ECB and the RBI are reluctant to act, putting the onus of reviving growth on the government instead. The Fed too has resisted calls for a QE3 so far.
So, it remains to be seen who blinks first in this standoff. Central banks might have to surrender in case things get worse on the macro-economic front.
The opening was in the red but things could turn around for the Indian stocks later in the session given the intensity of fall in crude oil.
A weak rupee and slow start to the monsoon are the two big worries.
Maruti Suzuki, Cipla and Hero MotoCorp and Bajaj Auto are the leading winners in the key indices so far in the session.
The list of top losers is being led by the cement majors in the wake of the CCI order on price cartelisation.
JP Associates, Ambuja Cement, ACC, Hindalco Inds, Tata Steel, Sesa Goa, Axis Bank, Tata Power DLF, L&T and HDFC and are the biggest laggards in the frontline indices.