Live: Shares off their low, but still not out of the woods

3.30 p.m: Markets have again slipped lower with the Sensex closing 302 points lower at 16,151 and the Nifty at 4849 down by 93 points. Realty stocks were the most hit, falling by 4.76 percent followed by metal stock which fell by 4 percent. Banking stocks were trading around 2.65 percent lower.

DLF was the worst performer falling 8.77 percent as investors reacted to Subramanian Swamy’s claims about Robert Vadra’s involvement in the 2G scam. Vadra has a stake in DLF.

Hero MotoCorp saw good buying after the company announced a positive set of numbers for September.

After Auto sector, cement sector companies have started announcing their monthly sales and production numbers. ACC has said that cement dispatches have moved up from 1.58 million tonnes in September 2010 to 1.73 million tonnes.

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MeanwhileCiti has upgraded Essar Oil from ‘Hold’ to ‘Buy’ as the company will be commissioning phase 1 of its refinery expansion which will not only increase its capacity by 30 percent but also improve the complexity of the refinery which will help improve the company’s gross refining margin (GRM). The stock trades at Rs 76.95 down 3.4 percent. Target price given by Citi for Essar Oil is Rs 120.

Union in Ceat’s Nasik unit have gone on a strike. After a knee jerk reaction, the stock is back to its old level and currently trades at Rs 77, down by 0.13 percent.

European markets continue to trade lower, falling between 2-3 percent.

1.30 p.m: Indian markets have bounced back off their day’s low with the Sensex trading at 16,196, but still down 256 points, while the Nifty is at 4,867, a slip of 77 points. European markets, too, have recovered from their lows and currently trade at around 2 percent lower than their previous close.

Petronet has witnessed good buying support on the news of GAIL interested in buying out Asian Development Bank’s 4.5 percent stake in the company for over Rs 600 crore. The stock currently trades at Rs 161, higher by 1.25 percent.

JSW Steel is the top loser among the highly-traded stocks, falling 5.57 percent to Rs 558.

Bharti Airtel is trading at a high of the day at Rs 378.50, ticking up 0.13 percent, on the news of the company buying ZTE’s 4G network for India.

Though the market has rebounded from the low, its breadth continues to remain negative. For every stock rising, there are three that are falling. All sectors continue to remain in the red with the realty stocks slumping 3.50 percent while metal stocks have come down 2.9 percent.

12.30 p.m: European markets have opened between 3-4 percent lower, reflecting the news that Greece will miss its deficit target. The Sensex, meanwhile, continues to trade near the low, dropping 360 points at 16,092. The Nifty, on the other hand, is trading at 4,834, down 110 points.

Oil marketing companies have started looking up, trading between 2-4 percent higher.These companies had announced a Rs 866 per KL hike in prices of aviation fuel.

Sintex continues to slide and is currently down by 13 percent at Rs 110. The stock is facing some pressure on account of questions being raised on its repayment capability of its FCCB.

Standard Chartered in its report on the Indian financial sector has said it’s cutting price targets of banks as it factors in higher stress, given the weak macro environment, rising rates and policy setback in key sectors.

The report says 30-40 percent of total loans for state banks and 10-30 percent for private banks are exposed to vulnerable sectors like state electricity boards, new private power projects, roads, telecom, including new telecom players, iron and steel, textiles, Air India, micro finance and other SMEs.

The likely provision of these sectors will be 2-3 percent for state banks and 0.8-1.2 percent for private banks. In the worst case scenario, state banks can go down by 20-30 percent while private banks can slide 7-12 percent.

11.30 a.m: Indian markets have plunged to a new low as Europe gets set to open. The Sensex has sharply fallen 325 points to 16,083 while the Nifty is down 110 points at 4,832.

Among the stocks that have seen some action is Coal India, which has moved to the positive zone at Rs 334.80, higher by 0.4 percent. Coal India is gaining as most of the bigger broking firms like CSFB and Nomura, among others, have maintained their ‘Buy’ rating on the company.

JSW Steel, meanwhile, has said there is no factual authenticity to the news of the CBI conducting a raid on its premises. The stock has moved up from its low of Rs 540 and currently trades at Rs 558.

The rupee, meanwhile, trades at 49.44 against the dollar while oil is down 1.5 percent and gold edging higher by 0.7 percent.

10.30 a.m: Indian markets have come off their low, with the Sensex trading at 16,160, down 293 points, and the Nifty at 4854, lower by 90 points.

While four wheeler companies are experiencing growth pangs, two wheeler ones are building up momentum. Bajaj Auto has said September 2011 was their best month ever in terms of sales. The stock trades 0.33 percent higher at Rs 1,541.

September PMI, at 50.4, confirms a slowdown, with the number being the slowest since March 2009.

Tata Motors is moving in the upper circuit, up by 0.5 percent, at Rs 156.80. The company has posted a 22 percent growth for September.

PG Electroplast, the company which was listed last week, is turning weaker and down 15 percent at Rs 257. The stock had touched a high of Rs 537 on Wednesday the previous week.

Sintex continues to slide and trades 11 percent lower at Rs 113. Goldman Sachs, however, maintains a ‘Buy’, saying market concerns on forex debt are overdone. The broker has a price target of Rs 225 for the stock in the next 12 months.

Meanwhile, sugar stocks are all moving at a new yearly low. Among other stocks that are trading at their year’s low are **Adani Enterprises** , Aurobindo Pharma, SCI and Tata Steel.

9.30 a.m: Weakness in Asian markets reflected on the opening in the Indian markets. BSE Sensex is trading near the low of the day at 16,099, down 350 points. NSE Nifty is trading 103 points lower at 4,838.

Among the sectors that have been worst affected are metal, which is down 3.6 percent, and the banking index, which is 2.7 percent weaker.

Sintex slips 9.6 percent to Rs 114.95 on expectations of downgrades by various broking firms. The volatility in the currency is expected to be reflected in the second quarter numbers, which are likely to register a mark to market loss.

Anil Ambani Group companies are showing some signs of life, which are marginally higher with the flagship company, Reliance Capital, hovering at Rs 325, higher by 3 percent. Reliance Infra is up by 1.6 percent.

Reliance Industries, on the other hand, is over 2 percent lower at Rs 788 while SBI and **Infosys** are turning weaker by 2 percent each.

Metal stock **JSW Steel** is edging down 7.35 percent on account of extremely poor response to its e-auction, which means the company might have to shut its plant. The CBI has carried out a raid at its Bellary office, which may further impact the stock movement.

The rupee, meanwhile, is at 49.51 against the dollar.

US remains subdued, may infect Sensex too

9.00 a.m: Weakness in the US and Asian markets is expected to slip on to India. Asian markets are trading between 2-4 percent lower, which points to a lower opening for Indian bourses.

Among the stocks that can see some action are Tata Motors, which has surprised experts by posting a 22 percent growth in its automobile division. The stock can see some sort of short covering. **Maruti** has announced that its labour issue is sorted out, though the company has logged a negative growth of 21 percent. This was expected, given the labour issues faced by the company.

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Airline companies are likely to take a hit after oil marketing companies raised prices of aviation turbine fuel by Rs 889 per kg litre.

Cairn India, along with the Sri Lankan authorities, have announced a gas find in the Mannar basin. The stock can see some buying interest on its first international hydrocarbon find.

Glenmark can see some pressure after a New Jersey court rejected its claim for double patenting. Though the company might appeal in the lower court, it might stand to lose $16 million by way of penalties.

Anil Ambani group stocks are likely to see some volatility amid claims and counter-claims that the chairman is being given a clean chit. There were reports that the CBI had given a clean chit to Ambani, which was later denied by the investigating agency. Meanwhile, Reliance Communications has asked the government to defer its plan to impose financial penalties on the company and has referred the revenue issue to TRAI.