Market opened with a gap down on fear that the roll-back of US stimulus could spark selling pressure by the overseas investors in the equity space. After the Reserve Bank of India's moves to tighten capital outflows and curb gold imports spooked foreign investors and USD/INR hit an all time high of 62, Indian equity markets plunged more than 4%. Nifty nose down by 234.45 points and ended at 5507.85 after making a day low of 5496.05 whereas Sensex collapsed by 769.41 points to close at 18598.18; investors lost Rs two hundred twenty thousand crores. The Reserve Bank of India (RBI) announced certain measures late on Wednesday to restrict how much its citizens and companies can invest abroad. This raised fears of outright capital controls that would further undermine the confidence of foreign investors.
All the Sectoral Indices on the National Stock Exchange closed into red. CNX Realty was the top loser by 6.66% followed by BankNifty(5.74%), CNX Metal(5.47%), CNX PSU Bank(5.38%) and CNX Finance(5.27%) which closed down more than 5%.
In Nifty50 stocks, just three stocks closed positively. Heromotoco was the real hero which hit a new week high at 2004.3. It gained 2.17% and ended at 1978.
JPAssociat was the turnover topper by the traded quantity and ICICIBank was by the traded value on NSE today.
Four stocks hit 52 weeks' low viz.BHEL, LT, PNB & SBIN.
Advance/Decline ratio was 5.25 : 1 as 997 stocks declined and 190 gained today on NSE.
2nd August, 2013 Investors lost the confidence after Goldman sach's underweight marking on Indian stocks and resulted into bearishness. Nifty ended at 5678.45 with a downfall of 49.4 points whereas Sensex ended negatively with 153.75 points at 19163.44. Nifty closed at a month low, the tested level first time after 26th June.
INR was trading around 61 which is an all time low and a headache for the economy.
State-run banks continued recent falls on asset quality concern, while Bank of America-Merrill Lynch downgraded public sector lenders Bank of Baroda and Union Bank of India on worries about market-to-market losses on their bond portfolios.
Goldman Sachs downgraded Indian stocks to underweight in a note released Wednesday, saying it sees an increasing risk of a potential reversal of the foreign fund flows into equities seen over the past few years. "Recent activity data has been sluggish with no signs of a pick up in investment demand," Goldman analysts wrote in the report, adding they were looking for clearer growth signs to turn constructive.
Among NSE's sectoral indices, CNX Realty plunged the most by 4.06% folled by CNX Metal, PSU Bank, PSE which fell more than 2%. CNX IT and CNX Media was the only gainers and the IT rose the most by 1.04%.
In Nifty50 stocks, Ranbaxy gained the most by 4.06% and ended at 273 whereas Powergrid was the top loser by 11.52% as the company declared that they would sell shares to raise funds.The stock ended at 91.
Nifty Outlook :
Nifty has broken the crucial support of 5830 and entered into a bearish territory for a short period but a pullback will be expected up to 5840-5870 levels. Upholding the 5950-5970 levels will again reverse the trend with a habitual volatility.
Immediate Support : 5610 / 5560
Immediate Resistance : 5720 / 5830.
