Analysis: Aviation to bleed further, Renuka down for fourth straight day

There was a carnage in the stock market today with share prices taking a beating in the last couple of hours of trade. Shares skidded 1.4 percent to their lowest close in more than three weeks on Tuesday, extending a slide into a fourth session, as sluggish corporate earnings and stubbornly high inflation dented investor confidence.

The main 30-share BSE stock index closed down 1.38 percent at 16,882.67 points, its lowest close since October 21, while the Nifty closed down 1.55 percent at 5,068.50 points.

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According to Firstpost Investing editor, Shishir Asthana, European markets will have a huge say in how Indian markets will perform in the next three days as a jump in bond yields of Italy and Spain led to a global sell-off.

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On the domestic front, financial, auto, realty and infrastructure stocks took a beating as Indian bond yields touched almost 9 percent today, while drugmaker Cipla bucked the trend and climbed on better-than-expected quarterly results late on Monday.

The realty index is down 5.2 percent today and power shares continued to be under pressure. Realty index down 5.2 percent today and power shares continued to be under pressure.

Lanco Infratech , Pantaloon, HDIL and Jet Airways were among the big losers today. Moreover, even as Vijay Mallya, the head of cash-strapped Kingfisher Airlines, announced that the airline did not need a government bailout, shares of Jet Airways took a massive beating, closing 8 percent down today. However, the overall scenario for the aviation industry looks bleak as FDI for the sector is likely to be delayed.

Meanwhile, continuing its downfall for the fourth straight session today, shares of Shree Renuka Sugars settled 11 percent lower on bourses today after the company reported weak results for the quarter ended September 30.

Shares of the country’s largest sugar refiner ended at Rs 34.25, down 10.81 percent from the last close on BSE. In the previous session, the scrip had slumped by over 30 percent. The company’s stock has lost nearly 40 percent in the past four trading sessions.

In the process, the company lost Rs 1,517 crore in its market vale at Rs 2,299 crore as on today, from Rs 3,816 crore on November 8.

For more on the market’s performance, listen to our market wrap below: