Sensex closes 100 pts lower, airlines rally on FDI prospects

3.30 p.m: A volatile session of the market ended with the indices trading near the high of the day on short covering as European markets traded higher. Sensex closed the day at16,775 down 100 points, while Nifty closed at 5030, down 38 points.

Rumors in the market of cabinet approving FDI’s in retail and aviation led to a sharp rally in aviation and retail counters. Kingfisher last traded 19 percent higher at Rs 25.90 while Jet Airways closed the day at Rs 252, up by 6 percent. Pantaloon last traded at Rs 173.30, up by 13.5 percent while Shoppers Shop was up by 5.9 percent at Rs 360.50.

Refinery stocks were one of the worst losers in the market with HPCL falling 5.27 percent, BPCL down 4.4 percent and IOC down 2.36 percent on petrol rollback.

Renuka Sugar continued its fall, losing 3.5 percent of its value at Rs 34.55.

Capital goods stocks L&T and BHEL have touched a new 52 week low as news of CAG raising questions of UMPP projects led to a feeling of further delays in the sector.

Titan meanwhile announced a brand acquisition of Favre Leuba, the 274 year old watch company. The stock closed the day 3.8 percent higher at Rs 214.

Earlier in the day news of MSCI including Idea, Bharti Airtel and PFC in their global index, led to a rally in these counters.

FM hints at forex intervention

3.00 p.m: Markets were spooked by finance ministers statement that RBI might intervene in the foreign exchange market as rupee approaches the 51 mark. Sensex has again fallen by 214 points to 16,667 while Nifty trades at 4998.

Rupee meanwhile trades at 50.72 to the dollar.

Markets recover on European cues, Kingfisher jumps 7%

1.45 p.m: Indian markets have moved higher as European markets turn positive after opening 0.5 percent lower. Sensex trades 56 points lower at 16,826 while Nifty is down 28 points at 5040.

SBI led the rally which currently trades 2 percent higher at Rs 1765. Idea continues to be the biggest gainer, rising by 5 percent at Rs 99.

Kingfisher Airlines trades 6.8 percent higher as the company says it has an investor to pick up a stake in the company once FDI is opened.

1.09pm: Listen to a mid market update on how stocks are performing and what trends you should be looking out for:

1.00 p.m: Markets continue to drift near the days low with Sensex trading at 16,712 diwn 170 points while Nifty flirts with the 5000 level currently trading at 5012, diwn 55 points.

Refining stocks continue to fall with HPCL falling the most by almost 9 percent at Rs 276. BPCL is down 5 percent while IOC is down 4 percent after the companies announced a rollback of petrol prices.

Renuka Sugar continued to slide after they announced a huge loss for the September quarter. The stock trades 6 percent lower at Rs 32.35.

Titan acquires Favre Leuba brand

12.00 p.m: In a notice to the stock exchanges by Titan has said that they will be acquiring the 274 year old Fevre Leuba of Switzerland. The company said that it will be acquiring brand of Favre Leuba with gloabl rights to the trademarks of this brand. The acquisition will cost the company Euro 2 million.

Markets, meanwhile have moved higher from their intra day lows. Sensex is trading at 16,755 down 126 points while Nifty is down 47.50 points at 5020.

Nifty below 5000 as capital goods stocks hammered

11.00 a.m: Markets have slipped further with the Sensex trading 220 points lower at 16,658 while Nifty trading at 4995, down 75 points.

Capital goods stocks have contributed the most to the fall as both L&T is trading 4.3 percent lower at Rs 1232 and BHEL is down 6.7 percent at Rs 288.70 are trading at their year’s low.

Capital goods stocks have been hit as government has again changed the rules of ultra mega power plants.

Refineries down on petrol rollback, Sensex down 100 pts

10.15 a.m: Refineries stocks took a beating after they were ‘asked’ to roll back the petrol price hike they announced earlier in the month. HPCL trades 6.25 percent, BPCL has fallen by 6 percent while IOC is down by 3.6 percent as they face under recovery issues duw to roll back of petrol prices, higher crude oil prices, which is again close to $100 a barrel mark (Nymex crude) and rupee depreciation (down to almost 51 against the dollar).

Sensex trades112 points lower at 16,765 and Nifty is down by 40 points at 5027.

Sensex down 100 pts, Idea up 7 percent

9.30 a.m: Inclusion of Idea Cellular in the MSCI index led to a sharp move in the stock which has gained 9 percent in early trades. The stock trades at Rs 102. Bharti Airtel has also been added in the index. The stock trades 1.6 percent higher at Rs 407.85.

Markets, meanwhile have opened lower with the BSE Sensex trading 113 points lower at 16,767 and NSE Nifty falling by 40 points at 5029.

Among the biggest losers in early trades are Sintex which is down over 8.3 percent at Rs 92. The company has said it is not being able to convert its FCCB on account of the depreciating rupee which would lead to a further dilution. If the company does not convert its FCCB, it will have to show the difference in the value in its bond due to currency appreciation in its quarterly results, which will add to the forex losses it popsted in the third quarter.

Tata Motors to be in limelight in a flat market

9.00 a.m: A strong set of economic data from US helped European and US market close near the high of the day on Tuesday. Though Asian markets too reflected the mood in early hours, all of them are trading near the day’s low around 1 percent lower than previous day’s close.

Indian markets are likely to open flat but will have a negative bias. European markets will decide the mood of the markets in the second session, as has been the case off late. Both Spain and France are going in for a bond sale. Yield on these sales will to an extent determine the short term trend of the market.

Though equity markets are slipping lower, crude oil is near its 16 week high, with the Nymex trading at 99.37 per barrel. Along with the weak rupee, high crude prices and roll back of petrol stock can result in selling pressure on PSU refinery stocks.

More negative news for Coal India appearing in the press. Earlier it was reported that Coal India will be buying its own share from the government to help meet their divestment target, but papers now report that the company will be asked to buy government’s share in SAIL, ONGC, IOC and Hindustan Copper.

Tata Motors has reported a 10 percent growth in its global sales for the month of October. Passenger car sales were higher by 14 percent while CV sales grew by 6 percent during the month. JLR sales posted a smart 39 percent growth due to a new product launch. The company had earlier in the week announced its results which were in line with the market. Robust global sales number can result in buying interest in the stock.