Helping You Build Wealth With Honest Research
Since 1996. Try Now

MEMBER'S LOGIN

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Indian equity markets nosedive
Tue, 27 Aug Closing

The Indian equity markets nosedived and have ended on a weak note. Most of the decline was attributable to the fall in the Indian Rupee that plunged to a new lifetime low during the day. Stocks across the board ended on a weak note with those from the banking, capital goods, power and PSU space facing the maximum selling pressures. The BSE-Sensex closed down by about 590 points while the NSE-Nifty closed down by 189 points. The BSE Mid Cap and the BSE Small Cap indices closed on a weak note as well and were down by 2.1% and 1.7% respectively.

As regards global markets, most of the Asian indices also closed on a weak note. European indices have opened on a poor note as well. The rupee was trading at Rs 65.73 to the dollar at the time of writing.

All Energy stocks have ended the day in red with Bharat Petroleum Corporation Ltd (BPCL), Essar Oil, and Hindustan Petroleum Corporation Ltd (HPCL) facing maximum selling pressures. The consortium of Oil and Natural Gas Corporation (ONGC) and Oil India have signed an agreement with oil explorer Anadarko Petroleum Corp to acquire its 10% stake in the Rovuma Area 1 Offshore Block in Mozambique. This is considered to be one of the best acquisitions made by the consortium in recent times. The block is expected to have natural gas reserves of 50 trillion cubic feet which stands 8 times bigger than the asset of Reliance Industries in the Krishna-Godavari basin. However, the expected capital expenditure in the next 5-7 years could prove a major drag for ONGC. As per a leading daily, this could result in a net debt situation for ONGC as the company might have to shell out Rs 250 bn over the next 5-7 years towards capital expenditure. As at the end of March 2013, on a standalone basis, ONGC had cash reserves of Rs 132 bn and zero debt.

Except for Gujarat Industrial Power, CESC Ltd and Satluj Jal Vidyut, all thepower sector stocks have closed in red today with Jaiprakash Power and Reliance Infra facing the maximum selling pressures. The Prime Minister today has given a green signal to 36 infrastructure projects worth Rs 2 lakh crores across sectors such as power, ports, roads, cement and petroleum. With this 28 power projects have received a significant push from the higher level. These projects have been facing hurdles such as coal linkages, environment issues and forest clearances. Most of the power sector companies such as Power Grid, Tata Power, Adani Power, Reliance Infra and others are expected to benefit considerably.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

View all commentaries | Archives

Read the latest Market Commentary


Equitymaster requests your view! Post a comment on "Indian equity markets nosedive". Click here!

  
ABOUT EQUITYMASTER

Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.

PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
TRENDING TOPICS
FREE NEWSLETTERS
EQUITYMASTER SUPPORTS
  • HelpYourNGO
  • You Tube
  • Linkedin
  • Twitter
  • Telegram
  • Google Play

Copyright © Equitymaster Agora Research Private Limited.

Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap

Phone +91-9136015013

Equitymaster Agora Research Private Limited (Research Analyst)
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Email: info@equitymaster.com. Website: www.equitymaster.com.
CIN:U74999MH2007PTC175407

Name of the Compliance & Grievance Officer: Ms Sonal Ramachandran
Telephone: +91-22-61434003 | Email: compliance@equitymaster.com

LEGAL DISCLAIMER:
Investment in securities market are subject to market risks. Read all the related documents carefully before investing.
Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.