Mumbai: Indian equities slipped further again with the Sensex falling about 250 points following more cuts in European markets and US index futures, which indicating weak opening in US markets on Tuesday.
The 50-share NSE Nifty tumbled 91 points to 5,440 at 14:55 hours on fears that radiation levels may rise further after that third blast in nuclear power plant in northern part of Japan in early morning.
There were reports that two more blasts and a fire rocked a quake-stricken atomic power plant in Japan, sending radiation up to dangerous levels, according to sources.
Radiation around the Fukushima No.1 plant on the eastern coast had "risen considerably", Prime Minister Naoto Kan said, and his chief spokesman announced the level was now high enough to endanger human health.
European markets like France's CAC & Germany's DAX cracked over 4-5 per cent, and Britain's FTSE tumbled 3 per cent. US index futures like Dow Jones plunged more than 280 points.
The benchmark Sensex plummeted 316 points to 18,123. About 45 shares declined as against five shares advanced on the NSE Nifty 50.
Veteran on the market pulse, N Jayakumar of Prime Securities believes that the correction in the market will continue on the back of the events in Japan. "Risk capital will tend to move around faster searching for higher returns in different areas," he says. He also points out that few industries will undergo changes, the cost of insurance will move up, therefore, the cost of business in certain areas may move," He further adds that investors are staying cautious on Asia.
Financial, auto, realty, metal, infrastructure and technology shares continued to reel under selling pressure.
However, Reliance Industries was remained on buyers' radar. Reliance Capital, Reliance Communications, Sun Pharma, Suzlon and Siemens were other gainers.
(With inputs from PTI)
Japanese pain dulls, Nifty recovers on RIL performance
The 50-share NSE Nifty cut down its losses by more than 100 points and was inching towards the 5500 level at 13:56 hours today after priced in the news of third explosion at Fukushima power plant in north of Tokyo. But investors remained cautious as the risk of further radiation leaks due to blast may rise.
Reliance Industries was the biggest gainer with 2.5 per cent gain on hopes that the company will benefit due to refineries shut down in Japan post the quake.
The short-term demand is set to slump for sure because five of Japan’s refineries with a combine processing capacity of 1.2 million barrels a day have been shutdown post the devastating earthquake and Tsunami which rocked Japan.
There are some estimates of a slippage in terms of demand as well.
Yingxi Yu, Commodity Analyst at Barclays tells CNBC-TV18 that the shutting down of refineries in Japan is a positive for Asian refiners. She also finds that short-term risk aversion can lead to a further short-term correction in oil prices. "Brent crude seems to be well supported at $110 a barrel."
Sun Pharma, HUL, Siemens, Hero Honda and JSPL were other gainers in afternoon trade. Other largecaps too trimmed their losses - ONGC, Infosys, Wipro, NTPC, BHEL, ICICI Bank, SBI, Sterlite, Tata Motors and SAIL were down 1-2 per cent.
The benchmark Sensex fell 135 points to 18,303 and the Nifty declined 42 points to 5,489, after showing recovery of 380 points and 115 points from day's low of 17,920 & 5,374, respectively. The broader indices slipped 1 per cent.
On the global front, European markets were trading 1.5-2.5 per cent lower following sharp fall in Asian equities. Japan's Nikkei 225 Average ended down 10.55 per cent to 8,605.15. Other Asian markets like Shanghai, Hang Seng, Straits Times, Kospi and Taiwan slipped 1-3 per cent.
Ramesh Damani, member of BSE advises "wait and watch approach". "The Japanese economy is so resilient that they’d pick them up but who figured out that three nuclear plants would meltdown perhaps. It tends to make cost of capital higher. That is almost a great fall out. Oil prices will head higher which is again bad for equities. It is best to take a "wait and watch approach". I do not advocate going out and selling equities in the investment part of your portfolio but it looks like we are going to be in for a period of pain."
Sensex recoups over 300 points; RIL supports
Benchmark indices trimmed some early trade losses in afternoon trade led by heavyweight Reliance Industries. The 30-share BSE Sensex recouped more than 300 points from day's low to trade at 18,208, with loss of 231 points at 12:50 hours.
About 29 shares on the Sensex 30 were in red, including auto, financial, realty, metal, infrastructure and technology companies' shares. The 50-share NSE Nifty shed 74 points to 5,457.
Saurabh Mukherjee, head of equities at Ambit Capital said he would see some straightforward redemption by Japanese investors investing into India. "The panic in the air is not just in Asia but also in the western world. My sense is that you will see some straightforward redemption by Japanese investors investing into India. My sense is somewhere between the 2-7 per cent of the corpus in our country is directly or indirectly from Japan. Even before the earthquake we were seeing some redemption from Japanese investors and given the scale of the tragedy in Japan, I think some of that money will return to Japan. That will be the direct trigger for a correction over the next few days."
Among largecaps, ONGC, Infosys, Wipro, ICICI Bank, BHEL, NTPC, SBI, TCS, L&T, HDFC Bank, ITC, HDFC and Bharti Airtel were down 1-2.5 per cent in trade on Tuesday.
However, Reliance Industries gained 2 per cent as refining market dynamics are expected to be favorable at least for the next few months after refineries shut down in earthquake stricken Japan. About 2.5 mn tpa of naphtha crackers shut in Japan and Ethylene chain too impacted due to shutdowns.
PX prices also shot up on shut down at JX Holdings Kawasaki plant. JX Holdings owns 7 per cent of the global PX capacity. So improvement in PX and PE outlook will benefit RIL.
The Japan's Nikkei recovered from it's 14 per cent slide but investors remained nervous as the risk of further radiation leaks rise after a third explosion rocked the Fukushima power plant north of Tokyo. It closed at 8,605.15, down 10.55 per cent.
Among other Asian markets, Shanghai, Hang Seng, Kospi, Straits Times and Taiwan were down 1-3 per cent.
A concerned Adrian Mowat chief Asian and emerging equity strategist at JP Morgan said the market was vulnerable to a sell-off due to turmoil in the Middle East and the disasters in Japan. "Markets globally have now started to price in the implications of the nuclear blasts in Japan, which would impact production," he said.
Sensex recovers after initial hiccup; Nikkei in dumps
Indian equities showed some recovery after a massive sell-off in early trade in reaction to a third explosion at nuclear plant in northern region of quake-stricken Japan, with the fear of increasing radiation levels after blast.
The benchmark Sensex recovered more than 300 points from day's low to trade at 18,167, down 271 points. The 50-share NSE Nifty fell 85 points to 5,446 at 10:40 hours IST.
Ramesh Damani, Member BSE/NSE does not see Nifty crossing 5800 mark. However, he said, odds of Nifty breaking 5200 have opened up post quake. He advised investors to stay away from markets till we get clarity.
"Japan quake problem is more serious than crude oil issue. Cost of capital is likely to go up post quake," Damani said.
Asian shares were fallen quite sharply after a blast in nuclear plant in Japan. Japan's Nikkei 225 Average was down 10.43 per cent though it showed some recovery. Kospi fell nearly 2 per cent.
Authorities said an explosion at the No 2 reactor at the Fukushima Daiichi nuclear power plant, located 160 miles northeast of Tokyo, appears to have caused damage. Some staff had been evacuated from the facility as radiation levels at the site rose sharply.
Japan's Prime Minister Naoto Kan said there was a high risk of elevated levels of radiation from a reactor at the Fukushima nuclear power plant that exploded earlier in the day.
The recovery was led by heavyweight Reliance Industries with the moderate gains. Even buying in other stocks at lower levels too supported the markets to get recovered nearly half of losses from day's low on the Sensex.
About 12 shares declined as against one share advanced on the Nifty 50. Largecaps like Infosys, ONGC, NTPC, SBI, ICICI Bank, TCS, BHEL, Wipro, HDFC Bank, L&T, HDFC, ITC and Tata Motors were down 1-2 per cent.
Nifty cracks over 100 points on fresh nuke blast in Japan
Indian equities thrashed in opening trade on the back of huge meltdown across Asian markets after a fresh explosion heard in nuclear power plant in Japan.
At 9:15 hours IST, the benchmark Nifty crashed 143 points 5,387 and the Sensex fell 459 points to 17,982.
The CNX Midcap tanked 163 points to 7,490. About 54 shares advanced as against 872 shares declined on National Stock Exchange.
All BSE sectoral indices were down 1.5-3 per cent.
Asian markets were completely whacked after fresh explosion heard in nuclear plant in Japan.
The Nikkei 225 Average crashed 1,064 points or 11 per cent to 8,556.67.
Shanghai was down 2 per cent and Hang Seng down 3.8 per cent. Taiwan plunged 4 per cent.
An explosion rocked Fukushima Daiichi nuclear complex in Japan on Tuesday and some workers were ordered to leave the site, with radiation levels around the plant rising fast immediately after the blast.
Japan Chief Cabinet secretary says, radiation levels rising to levels that may affect health.
"This is just the first reaction after Fukushima, so it's more about sentiment. The nuclear plant issue is an unexpected, very serious additional factor for the market because we don't have any experience on that," Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd said.
French Embassy in Japan said low level radioactive wind could reach Tokyo In 10 Hours.
Tata Steel, JPSL, Maruti, M&M, Tata Motors, Jaiprakash Associates, Suzlon, L&T, Reliance Communication. Reliance Power, NTPC, ONGC, HUL, Reliance Capital, Reliance Industries, Bharti Airtel, ICICI Bank, SBI, and BHEL were dragging the markets down in early trade. However, only Cairn India was in green.
Midcap & Smallcap space:
IVRCL Infra, Punj Lloyd and Lanco Infratech fell 3-4 per cent.
Mercator Lines was down 4 per cent. Unitech, Delta Corp, HDIL and Orbit Corp were down 4-6 per cent.
Vijaya Bank, DCB and Shree Renuka tanked 3-4 per cent. Tata Global and Tata Coffee lost 3-4 per cent.
However, Vishal Retail gained 10 per cent.
(With inputs from Reuters)
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