Political stalemate, FII exit send Nifty, Sensex crashing

3.30 p.m: Sensex closed the day falling by over 2 percent at 15,700 down 365 points, while Nifty closed at 4706 down 106 points. A dull last session helped cool volatility in the market, which had shot up as Sensex was down nearly 575 points during the day.

Market grapevine has it that one of the ETF funds of a French bank is closing operations. The fund has asset under management of Rs 800 crore and has Infosys, Reliance and HDFC Bank as one of its top holding.

HDFC Bank in fact was one of the top losers during the day, falling by as high as 6 percent in mid session. The stock finally closed at Rs 424 down 4.5 percent.

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Telecom stocks were among the top losers as DoT and Trai issue over M&A and the 3G auction issue affected sentiment since market opening. Idea Cellular closed the day 5.3 percent lower at Rs 93.25, the stock was down by 9 percent at one point of time. Bharti Airtel closed 3.5 percent lower at Rs 365.5.

Among the major news of the day was executives arrested under 2G scam were given bail. As a result DB Realty hit the upper circuit of 20 percent, Unitech traded 4.2 percent higher while Reliance Communication closed the day 0.8 percent higher.

SKS Micro hit the upper circuit in anticipation of its Chairman Dr. Akula resigning from the company.

Markets recover from day’s low, Sensex down 370 points

2.30 p.m: Sensex has recovered from the day’s low and currently trades at 15,698 down 367 points over the previous day’s close while Nifty has fallen by 104 points at 4708.European markets have recovered part of their loss, leading to a recovery on Indian markets.

Idea continues to trade lower and currently is 6 percent down at Rs 92.6, while Bharti Airtel is down by 4.5 percent.

Reliance trades 3 percent lower at Rs 770.

Political stalemate, FII exit send Nifty, Sensex crashing

1.30 p.m: European markets have opened between 1 and 1.5 percent lower as reports hit the market that Dexia Bank bailout in ‘unworkable’.

Sensex trades 444 points lower at 15,622 while Nifty is down 125 points at 4687.

Telecom stocks continue to remain downwith Idea Cellular asthe biggest loser falling 8.8 percent at Rs 90 while Bharti Airtel is 5.5 percent at Rs 357.

Nifty at two year low, Sensex down 550 pts

12.30 p.m: Markets crashed through earlier support levels and currently trade at two year low levels. Sensex trades at 15,555 down 510 points while Nifty is at 4666 down 146.

Political stalemate, FII withdrawal and rollover issues of derivative positions has led to a fresh round of sell-off.

With the second day of parliament also being washed out, investors are getting jittery over passing of important reforms.

Low volume in the market is preventing rollover of derivative position, which is resulting in a sell off.

Among the top losers of the day are Idea, which is down 8 percent at Rs 90.50, HDFC Bank down 5.1 percent, Reliance down 4 percent and Bharti Airtel down 4 percent.

All the sectoral indices are in the red along with all the stocks which make the index.

“The rupee free fall has caught market by surprise” Suresh Mahadevan, managing director and head of Indian equities at UBS Securities told CNBC TV18. With the currency vulnerability adding to the fears over the global volatility, Mahadevan says the instability in the market is most likely to stay for over the next few months.

The Indian market is the worst performing, globally. The market is moving towards a final leg of capitulation and on a worst case scenario there could be a 20 percent downside from current levels," Mahadevan cautioned.

Ambreesh Baliga, chief operating office of Way2Wealth advisses staying out of the market now. “If Nifty breaks 4700, then we could easily see it breaking another 400-500 points.” he told CNBC TV18 in an interview.

Sensex down 500, HDFC Bank falls 6%

11.30 a.m: Markets continue to trade near the low of the day with Sensex down 256 points at 15,817 while Nifty is down 77 points at 4735.

Idea is the biggest loser falling 5.4 percent at Rs 93.15 followed by HDFC Bank which is down by 3.5 percent at Rs 428.75. SBI is down by 2 percent at Rs 1655.

Among the side counters SKS Microfinance has hit the 5 percent upper circuit at Rs 115.45 as its founder and Chairman is likely to quit the company today.

Parsvanath continued its downward trend and has hit the lower circuit falling by nearly 10 percent at Rs 40 as the promoters pledged shares are rumored to being sold in the market.

2G scam related companies whose executives were freed today are trading higher with DB Realty hitting the upper circuit of 20 percent at Rs 64.50, Unitech is up 4.7 percent at Rs 23.25 and RCom is at Rs 71.75 up by 2.5 percent.

RCom zooms on executives being granted bail

10.30 a.m: Reliance Communication has zoomed from a low of Rs 68.50 to Rs 74 after its executive were granted bail.

DB Realty has hit the upper circuit of 20 percent after its promoter was released from jail.

Unitech trades 5 percent higher at Rs 23.45.

Sensex however, continues to remain weak and trades 225 lower at 15,840 while Nifty is at 4737 down 75 points.

Telecom, Banks lead market fall, Sensex down 200 pts

10.00 a.m: Indian markets are trading near the low of the day and very close to one year low levels. BSE Sensex is down by 240 points at 15,825 and NSE Nifty is down 72 points to 4740.

Nifty is trading very close to a yearly low of 4720.

Telecom stocks have taken a beating after DoT rejected TRAI’s proposal for M&A. Some of the telecom majors have also approached the government to refund 3G license fees after TRAI changed to rule of the game on roaming. Idea Cellular is the biggest loser falling 4 percent at Rs 94.35, Bharti Airtel is down 2.6 percent at Rs 368.90 while Reliance Communication trades 1.4 percent lower at Rs 69.

Banking counters continue to feel the heat, with SBI trading at Rs 1650 down 2 percent, ICICI Bank is down 1.6 percent at Rs 733 and HDFC Bank trades 2.83 percent lower at Rs 431.

Reliance which continues to face a series of negative news trades nearly 2 percent lower at Rs 779.

Fall in China PMI to result in lower opening

9.00 a.m: Recently released manufacturing data from China show that PMI has fallen below the critical 50 mark. Hitting a 32 month low China's PM for the month of October is 48 .

This combined with a reduction in US GDP growth from 2.5 percent to 2 has resulted in Asian markets trading between 1 and 2 percent.

Euro also fell on account of reports suggesting that the bailout of the French-Belgium Bank has fallen through.

US markets ended the day on a flat note, falling by 0.46 percent.

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Indian markets are expected to open lower and remain volatile as traders roll over their derivative position.

Among the stocks that will see some action during the day are sugar counters. Government has allowed exports of sugar to the extent of 1 million tonnes in 2011-2012.

Reliance is likely to remain under pressure after 6 of the companies oil discoveries on KGD6 block has been rejected by the government.

Oil companies are likely to see some action as the Oil ministry has sought Rs 56,600 crore of additional cash subsidy, highlight the precarious situation of the refiners.

Coal India is expected to see some pressure after the company has said that it is finding it difficult to get environmental clearances for new mines.

Auto companies can see some selling on production cut reported by media.