Spain‘s woes frightened investors today as the cascading effect of the debt ridden nation spilled on the global markets. Spain’s GDP data also came in lower, which added to the fact that the nation would soon suffer the fate Greece does. The week has started with the Sensex recording its biggest fall in over 2 months on global cues. Another news which also hurt investor sentiment in India was that multi-brand retail FDI policy would take longer than expected to pass through now that many other parties joined hands to oppose the move.
On the political front, Pranab Mukherjee will be sworn as President of India from tomorrow.
The Sensex declined 281.09 points to close at 16877.35 points (-1.64%). The index touched a high of 17047.73 and a low of 16849.28 points in trade today. The Nifty closed at 5119.95 points, lower by 87.15 points (-1.67%).
On the sectoral index front on the BSE, Midcap Index returned 1.26 percent lower today while the Smallcap Index declined 1.10 percent. The Metal Index lowered 3.30 percent, the Realty Index fell 2.80 percent, the Power Index declined 2.69 percent and the Auto Index was down 2.43 percent.
Global events dominated as Spain, Greece took centrestage. More than expected no. of regions could apply for aid, which shook investors on Monday. The contagion would spread on from Asia to Europe as these markets opened a percent lower in trade. Greece echoed words of the “Great Depression” of the 1930’s which struck the U.S, stating that their current crisis was similar to that. Italian markets declined 5 percent and over in trade on contagion. Italian banking stocks declined the most. The U.S markets would also most likely open lower in trade today.
On the individual stock front, L&T reported its 1Q12-13 earnings which exceeded expectations while EBITDA failed to, seeing the stock tank 3 percent to INR 1352 a share. Zee Entertainment hit a 52 week high of INR 155 on stronger 1Q12 earnings. Godrej Industries, declined 4 percent to INR 236 ahead of its qualified institutional buyer issue starting tomorrow. The price band is kept between INR 210 to 235 a share. Bajaj Finance gained 7 percent to INR 1075 on better than expected results declared last week. Other firms reporting today were Indian Bank, Dabur, Colgate Palmolive amongst others.
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(CNBC, Business Standard, Economic Times and Moneycontrol)
Categories: General News