1. Sensex nosedives nearly 1,400 points in 11 sessions

Sensex nosedives nearly 1,400 points in 11 sessions

Amid a slowdown in FII flows and a strong rally in Chinese stocks, Indian benchmark indices have come down by...

By: | Mumbai | Updated: December 16, 2014 6:05 AM

Amid a slowdown in FII flows and a strong rally in Chinese stocks, Indian benchmark indices have come down by close to 5% from their highs in a fortnight or so.

After touching a record peak of 28,693.99 on November 28, the Sensex has lost 1,374 points in the last 11 sessions. During this period, the trend in FII purchases, as represented by the five-day moving average of net buying activity, has slowed from a net buying of $166 million to net selling of $50 million as on December 12.

IT majors TCS, Infosys and Wipro have contributed more than a third of the total fall. While Infosys led the decline with 281 points, Reliance Industries and Capital goods major Larsen & Toubro contributed 226 points and 129 points, respectively. ONGC and Tata Motors accounted for another 88 points and 83 points to the Sensex decline. As commodity prices nosedived, metal stocks, including Tata Steel, Hindalco and Sesa Sterlite, were responsible for a 115-point down-move in the 30-share benchmark.

graph-sensex

With the retreat, the market value of all listed firms, which touched a record R100 lakh crore in the first week of December, has come off by about R4 lakh crore to R96.44 lakh crore.

Investors of nine Sensex firms, which each contributed a minimum of 50-point decline from the peak collectively, have lost over R2 lakh crore in their market value.

These include Infosys, RIL, TCS, L&T, ONGC, Tata Motors, HDFC, Tata Steel and Bharti Airtel. The total market value of all these firms stood at R21.06 lakh crore at the beginning of this month. While TCS witnessed the highest drop in market cap, having lost R54,903 crore, Reliance and ONGC lost R36,336 crore and R31,313 crore, respectively.

FMCG and auto saw buying interest. ITC, Maruti Suzuki, HUL and Hero MotoCorp bucked the trend with gains of 8% to  0.1%, supporting a 197-point increase for Sensex. Even Coal India, a prominent FY15 divestment candidate, rallied over 6% in the last 11 trading days.

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  1. H
    Harry Potter
    Dec 30, 2014 at 11:31 am
    Dear Investors/Analysts/Advisers - Watch Out! L&T top-bres were on selling spree March-2014, leading the pack Chairman Mr Naik sold his L&T shares (Rs 1200 apiece) worth 70 crores in 20 days - March 2014. Post Q1-2014 results L&T share has seen biggest intraday decline of 8 % since July 2009, Citi Group had raised multiple red flags on earnings. Hydrocarbon subsidiary suffered losses of 900 crores, sans stake at Dhamra Port (2500 crores) L&T would have posted losses. Modi Euphoria and upbeat in market saved L&T going below Rs 1300 during q2, a striking closed range of 1200 of March 2014. Part stakes at L&T Inra sold to Canadian FII - (2000 crores). Expecting VGF - Viability Gap Funding) of 3000 crores to complete Hyderabad Metro project. Stake or post losses, Deep Sea or devil? Post Q2 results L&T share plummeted from high of 1673 to low of 1450 (17 Dec, 2014). Before Q3 results it will reach range of 1200 a piece, the rate L&T top bres has made a kill. Post Q3 results another big intra-day fall of 8-10 %, decline to 52 week low of 900. By Feb (end)-2015 no wonder, 5 year low of Rs 600 a piece?
    Reply
    1. H
      Harry Potter
      Dec 16, 2014 at 2:04 pm
      L&T top-bres were on selling spree March-2014, leading the pack Chairman Mr Naik sold his L&T shares (in range of Rs 1200 apiece) worth 70 crores in 20 days - March 2014. Post Q1-2014 results L&T share has seen biggest intraday decline of 8 % since July 2009, Citi Group had raised multiple red flags on earnigs. Hydrocarbon subsidiary suffered losses of 900 crores, sans stake at Dhamra Port (2500 crores) L&T would have posted losses. Modi Euphoria (rock star at Madison Square, Make In India, Swachch Bharat etc) and upbeat in international outlooks of Indian economy saved L&T going below Rs 1300 a piece during q2, a striking closed range of 1200 (plus) of March 2014, in this quarter they have done L&T Inra stake to Canadian FII. So stake or post losses are the hard choices at L&T. Deep Sea or devil? Post Q2 results L&T share has plummeted from high of 1673 to l1492 (as on today 16 Dec, 2014) a piece, by the time they are out with Q3 results it will reach its valuation of 1200 a piece, the rate L&T top bres has made a kill. Post Q3 results it will see another big fall of 8-10 % than gradually head for 52 week low of 900 a piece than depending on badly bruised fundamentals no wonder it will reach 2 year low of 600 a piece------------------------------------------------------------------------------------------------------------------------Expensive CXO Kumbh Mela at LnT . What is the number of CEOs at LnT and all its subsidiaries (138), their CTC? How far higher, this is to manage LnT group $14 bln of revenues than Mr Sikka of Infosys highest paid professional CEO (Rs 30 cr) in India, entrusted with business $ 8 bln in revenues and 1.6 lakhs employees. At LnT, just Chairman Mr Naik and group CEO Mr Vankatraman are pegged at 21 cr and 14 cr, both are nearly/above 70 years. LnT Infotech - 2 CEOs left last month, now LnT looking for two new. 1 COO (Infy CEO contender), 1 CEO for LnT Tech Services. Infotech is claiming to touch $1 bln revenues since 2010, still not there. Mr Naik (aged 72) and all above age of 60 at LnT should retire NOW. Please make way for Information Age leaders like top-man of TATA, Infosys, Microsoft all are in their 40s. Why this super 70s at LnT? Chairman Naik’s jaw-dropping ugly corporate joke on succession – “You find a man in the world who will kill himself four times a day, has worked for more than a hundred years-- There is no such person.-- None of us here (at senior level) are working for money”. Not working for money? LnT top bres were on a selling spree, leading the pack AM Naik sold shares worth 70 cr in 20 days, March 2014. Mr Naik (aged 72) and all above age of 60 at LnT should retire NOW Biggest shareholders (Insutional Investors) at LnT are state owned LIC and UTI. Please save LnT, fix retirement age to 60 from current 75.----------------------------------------Infosys BPO CFO sacked for ‘failing to comply with the company’s code of conduct, subsidiary CEO has resigned owing moral responsibility, 6 more are expected to be sacked. What are codes of conduct at LnT and standards of corporate governance at LnT? Any CXO/MD level official ever got fired in last 10 years or has resigned on morals grounds? Please refer TOI article – “whistleblower was right: CBI”. Excerpts – “CBI confirmed slain National Highway project engineer Satyendra Dubey's allegation --illegally sub-contracted the multi-crore works awarded to them in the Golden Quadrilateral Project -- M/s LnT had misrepresented the facts”. BS Article – “Rajya Sabha nods for whistle blowers bill” – excerpts – “Prasad recalled the sacrifice of Satyendra Dubey, an Indian Engineering Service officer who was killed after he tried to reveal corruption in the Golden Quadrilateral”. Please GOOGLE – white collar criminal equivalent of rape and murder- “Cl Action Suit Seeks $100 Million for Pregnancy Discrimination, Other Violations”. Please refer International Business Times article – “$100 Million Sought as New Discrimination, Immigration Violations Complaint Filed against LnT”. Got slapped with ban by World Bank – please refer ET article – “World Bank bars LnT for 6 months over forgery”.
      Reply

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