With the selling pressure intensifying during the closing stages, indices in the Indian equity markets went further down and closed the day deep in the red. Thus, while BSE-Sensex ended lower by around 455 points (down 2.3%), NSE-Nifty closed around 140 points lower. BSE Mid Cap and BSE Small Cap indices were hurt relatively lesser but still closed 1.3% and 1.6% lower respectively. Only about three Sensex stocks managed to close the day in the green.
While Asian markets closed mixed today, Europe was trading mostly in the positive. The rupee was trading at 56.8 to the dollar at the time of writing.
Today's decline undid nearly all the gains the indices had achieved during the earlier days of the week. Weak GDP growth numbers, lower rupee and hawkish comments by India's central bank governor all contributed towards the massive decline that the indices saw today. However, what saved the markets from meeting the same fate as last week were the gains made earlier in the week. Having said that, in the context of the broader global economy, we don't seem to be doing that badly after all. We still have an economy that's growing and therefore, fundamentally strong companies that are growing at decent 12%-15% can still be found. The idea is to find such companies and stay invested in them for the long term and not worry about short term challenges that the country is likely to face.
GSK Pharma, one of India's largest MNC pharma companies traded quite strong today with the stock closing around 8% higher. The interest in the counter was perhaps triggered by reports that the company's promoter is looking to increase stake in the company. It should be noted that currently promoters hold around 51% stake in the company and is likely to raise the same through some sort of voluntary open offer. The company is one of the oldest pharma companies in India and is owner of blockbuster brands like Ribena, Tums and Zovirax amongst others.
Indian Hotels, one of India's largest players in the hospitality space, reported poor set of numbers for quarter and full year ended March 2013. It actually reported a net loss of Rs 3.4 bn for the quarter whereas loss for the full year stood at Rs 2.8 bn. On a consolidated basis, the loss stood at Rs 4.3 bn for the full year. on the topline front though there was a small growth for the year on a standalone basis while consolidated topline grew more than 8% for the full year. The profits were affected as the company took a one time hit of Rs 4.2 bn by way of diminution in the value of some of its long term investments and to account for the erosion in their net worth. The stock closed lower by around 2% today.