Indian Stock Market: Sensex Down 387.10 Points As Huge Shorts Build Up And Weak Global Cues Weigh On The Markets

–Tightened RBI norms affect the markets badly
–Records the third highest total turnover ever at Rs 1.46 lakh crore while clocked highest F&O turnover ever.

Sensex fell 387.10 points or 2.3% to 16353.40
Nifty fell 124.20 points or 2.5% to 4846.70
Mid Cap fell 3.7%. Small Cap fell 4.4%.
BSE 500 fell 2.8%. Sensex losers: 23

Of 13 BSE Sectoral indices, 10 posted losses
Advancers: 442, Decliners: 2281, Unchanged: 67
Advance/Decline Ratio: 1:5

Sensex Day’s Range: 17031.54 - 16721.26
Nifty Day’s Range: 4970.55 - 4829.50
52-Week Range: 17493.17- 7697.39

Sensex losers included Hindalco -7.9%, Tata Steel -7.3%, Bharti Airtel -7.1%, Reliance Comm -6.6%, DLF -6.6%, ICICI Bank -6.1%, Sterlite Ind -5.5% and State Bank -4.5%.

Sensex gainers were: Wipro +2.2%, Tata Motors +1.6%, HUL +0.9%, Grasim +0.8%, Sun Pharma +0.4%, Bhel +0.1% and NTPC +0.1%.

Realty index was down 4.6% led by Omaxe -9.7%, HDIL -8.7%, Ansal Properties -8.4%, Unitech -7.7%, Parsvnath -7.2% and Phoenix Mills -7.1%.

Capital Goods index tanked 2.7% helped by Areva T & D -9.3%, Everest Kanto -7.5%, Punj Lloyd -7.2%, Jyoti Structure -6.9% and Praj Industries -6.6%.

Consumer Durables index nosedived 2.7% supported by Gitanjali Gems -5.8%, Blue Star -5.4%, Rajesh Exports -3.1%, Titan Ind -2.8% and Videocon Ind -1.3%.

Bankex declined 2.1% assisted by Indian Overseas Bank -8.3%, IDBI Bank -7.7%, IndusInd Bank -7.1%, Oriental Bank -6.8% and Canara Bank -6.5%.

Metal index suffered 1.8% due to selling in Sesa Goa -12.4%, Ispat Ind -7.9%, Hindalco -7.9%, Tata Steel -7.3%, Jindal Saw -6.8% and JSW Steel -6.5%.

Oil & Gas index lost 1.6% led by Essar Oil -6.6%, Reliance Natural -6.3%, GAIL -4.4%, Cairn India -2.7% and Aban Offshore -2.2%.

Other sectoral losers were: Healthcare -1.5%, PSU -1.4% and Auto -1%.

Sectoral gainers were: FMCG +1%, IT +0.8% and Teck +0.6%.

Turnover:
The markets clocked total turnover of Rs 1,47,675.17 crore. This included Rs 20,161.82 crore from the NSE cash segment, Rs 1,21,614.13 crore from the NSE F&O and the balance Rs 5,899.22 crore from the BSE cash segment.

Buzzers:
Madhusudan Securities +20% at Rs 72, Citurgia Biochem +20% at Rs 86.55, Lotus Chocolate +19.7% at Rs 31.25, Thinksoft +19.2% at Rs 195.90, NR Agarwal +10.7% at Rs 28.40, Deepak Nitrite (W) +9.8% at Rs 22.25 and Prime Securities +9.7% at Rs 42.85.

Heavy Losers:
Hexaware Technology -17.2% at Rs 71.75, Aptech -17.1% at Rs 211.65, Gujarat Hotels -15.6% at Rs 47.60, JSW Holdings -14.7% at Rs 1442.25, Metrochem -14.1% at Rs 36.55, MIC Electronics -12.9% at Rs 40.60 and Sesa Goa -12.4% at Rs 276.35.

Midcap Gainers:
PTC India, Gillette India and MindTree gained 3.5-6.7%.

Midcap Losers:
Emami and UTV Software went up 1.7%. However, Puravankara Projects, Reliance Media, Omaxe, Jet Airways and Sterling Biotech fell 8.8-10%.

Smallcap Gainers:
Prime Securities, Navin Fluorine, Zylog Systems, Welspun India and Zensar Tech went up 5-9.7%.

Smallcap Losers:
Hexaware Tech and Aptech lost 17% each. JSW Holdings, MIC Electronics and Indo Rama Synth declined 11-15%.

RBI tightens norms:
Today’s fall could be attributed to RBI’s credit policy. RBI tightened NPA (non-performing asset) norms for banks and increased real estate provision to 1% from 0.4%. It kept CRR (cash reserve ratio), Repo and Reverse Repo rate unchanged while hiked SLR (statutory liquidity ratio) to 25% from 24%.

Financial under pressure:
Banking and realty stocks witnessed huge selling pressure; respective indices fell 3.8% and 6.2%. CNBC-TV18 analysis showed that banks may need higher provisioning over next four quarters. SBI and ICICI currently have 50% coverage ratio; SBI may require additional provisioning of Rs 3,800 crore and ICICI Bank may require additional provisioning of Rs 1600 crore. SBI tumbled 4.5% and ICICI Bank lost over 6%.

Inflation pegged upside:
D Subbarao, 22nd governor of RBI said there were clear signs of rising inflation on high food prices, so WPI (Wholesale Price Index) for March 31, 2010 was seen at 6.5% Vs 5% projected earlier with upward bias. Bank credit growth continued to be sluggish RBI governor said.

Asian Markets:
Among Asian markets, Shanghai lost 2.8% and Hang Seng fell 1.9%. Nikkei and Jakarta slipped 1.5-1.7%. Straits Times and Kospi declined 0.5-0.8%. Taiwan Weighted was down just 0.14%.

European Markets:
European markets were tradin: FTSE: +0.4%, DAX: +0.3%, CAC +0.4%.

Crude:
Crude was quoting at $78.92 a barrel.

Concern:
The RBI is getting worried about asset prices increasing fast and that possibly explains the provisional risk weights that have been increased on the real estate sector.

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