5 bluechip cos lose Rs 20,000 cr; SBI leads decline on Kingfisher concerns
Gati may sell shipping biz to German co, stock soars 5%

Money Feb 27, 2012

Rising oil prices, German vote on Greece bailout pulls market down

By Shishir Asthana

3.30 p.m: Markets trended downward throughout the day taking the Sensex down to 17,445 down 477 points while Nifty fell 148 points to 5281.

Stocks across the board fell with Reliance falling sharply by nearly 5 percent to Rs 779.

Rising oil prices followed by a weak opening in the European markets, which traded lower ahead of a critical German parliament vote on the Greece bailout.

Rising oil prices would prevent the central bank from reducing interest rates as a result preventing growth. Banking sector stocks thus have taken a beating with SBI falling nearly 3.89 percent at Rs 2119.85, ICICI Bank trades at Rs 888.95 down 4.6 percent while Axis Bank closed 6.54 percent lower at Rs 1106.

Vedanta group stocks reacted to the restructuring announcement. Sterlite fell 2.74 percent while Sesa Goa, which has to bear the brunt of the debt burden was down 10 percent at Rs 203.80.

Tata Steel fell by 6.83 percent at Rs 443 after Arcelor Mittal said over the weekend that they remain cautious on Europe.

Reliance falls below Rs 800, Sensex plummets 450 pts

2.30 p.m: European markets have fallen sharply after a subdued opening, taking Indian markets lower. Sensex presently trades 471 points lower at Rs 17,452 while Nifty is down 150 points at 5279.

Europe has fallen ahead of a German vote on the Greece bailout package.

Tata Steel has slipped by 6.7 percent to Rs 445.50 while Reliance has fallen sharply at Rs 780.50 down 4.80 percent.

ICICI Bank has slipped 4.88 percent at Rs 886.75 while SBI is down 3.6 percent at Rs 2125 and Axis Bank has fallen by 6 percent at Rs 1115.85.

Realty, metals drag Sensex 340 pts lower, RIL drops 2%

1.30 p.m: Markets continue to remain weak as European markets opened in the red.

Sensex trades 311 points lower at 17,612 while Nifty is down 93 points at 5336.

Banking, realty and metal stocks have been pushed lower as rising crude oil prices reduces a chance of interest rate reduction.

SBI trades 2.7 percent lower at Rs 2146, ICICI Bank is down 4 percent at Rs 895 while Axis Bank trades 4.35 percent lower at Rs 1132.

Reliance has slipped 2.35 percent and trades at the Rs 800 mark.

HDIL is down 5.56 percent at Rs 101.80, DLF is down 4 percent at Rs 217.55.

Metal stocks are trading lower, led by Sesa Goa which trades 10 percent lower at Rs 204.50, Tata Steel is down 5 percent at Rs 451.70 while Sterlite is down 1.7 percent at Rs 116.65.

Oil at $125 per barrel spooks market, Sensex down 225 pts

11.45 a.m: Markets have slipped further with Nifty falling by 75 points to 5353 and Sensex trading 225 points lower at 17,701.

Rising oil prices have impacted the capital goods and banking sector as higher oil prices will keep interest rates high. L&T is trading 3.6 percent lower at Rs 1,299.50, BHEL is down 5 percent at Rs 288.35 and Crompton too trades 5 percent lower at Rs 142.10.

SBI trades 2.75 percent lower at Rs 2144.70, ICICI Bank is down 3.4 percent at Rs 899.50 while Axis Bank trades 3.9 percent lower at Rs 1137.30.

Sesa Goa continues to trade lower at Rs 204.75 down 10 percent and Sterlite is down 1.2 percent at Rs 116.85 down 1.5 percent.

Sesa Goa punished for Vedanta restructuring, stock down 9%

10.30 a.m: Markets have slipped further, with Sensex losing 162 points at 17,761 and Nifty trading at 5374, down 55 points.

Sesa Goa has dropped further and trades 9.5 percent lower at Rs 205, a clear sign that the restructuring has not gone well with the company. Sterlite has also fallen and presently trades at Rs 117 down 1.35 percent.

Banking counters are taking a beating as rising oil prices delays the recovery of the economy. SBI trades 2 percent lower at Rs 2158, ICICI Bank is down 2.5 percent at Rs 908.55 while Axis Bank is down 3.3 percent at Rs 1144.

Sensex trades lower, Sesa Goa down 7% on merger with Sterlite

9.30 a.m: Asian markets are trading flat with Japan rising a bit on a weak yen. US and European markets closed flat over the weekend.

Indian markets have slipped lower with BSE Sensex trading 97 points lower at 17,827 while Nifty is trading at 5393 down 36 points.

Indian markets have slipped lower with BSE Sensex trading 97 points lower at 17,827 while Nifty is trading at 5393 down 36 points. AFP

The Vedanta group shares are in the limelight, post announcement of their re-structuring proposal over the weekend. As against market expectation of Cairn's stake being transferred to Sterlite, the parent group has instead transferred the 38.8 percent stake to Sesa Goa, which will now have the burden of servicing the debt. Sterlite will now be merged with Sesa Goa in the ratio of 3 shares of Sesa Goa for 5 of Sterlite.

Sterlite trades 3 percent higher at Rs 121.90 while Sesa Goa trades 7 percent lower at Rs 209.90. Cairn is trading 1.7 percent higher at Rs 387.80.

Gati trades 3 percent higher at Rs 37 on news of the company selling its stake in the newly demerged shipping business Gati Ships.

Glenmark is down 1.2 percent at Rs 310 on news of the company calling back 7 lots of oral contracteptive drugs.

Pantaloon is trading 2.65 percent lower at Rs 170 on news of the company scaling back its expansion plans.

Zenith Info is down 3.5 percent at Rs 40 on news of its lenders moving the court for a liquidation on now payment of dues.

by Shishir Asthana

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