Friday, May 9, 2008

Market extends losses on weak global cues; RIL slips

The market extended losses in the mid-afternoon trade. Weak global cues and a surge in inflation to more than three year high dampened the investor sentiments today. Consumer durables and FMCG stocks bucked the weak market trend. Bharti Airtel held firm.

Inflation based on wholesale prices rose 7.61% in the 12 months to 26 April 2008, marginally higher than previous week`s annual rise of 7.5%, government data released in early afternoon trade showed.

European markets, which open after Indian markets, were trading lower. Key indices in UK, France and Germay were down by 1.13% to 2.04%. Asian markets, which opened before Indian market, were trading lower. Key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan were down by 0.36% to 2.06%.

At 14:20 IST, the 30-share BSE Sensex was down 198.65 points or 1.16% at 16,882.01. The index lost 236.56 points at day`s low of 16,844.09, hit in the mid-afternoon trade. Sensex rose 45.3 points at the day`s high of 17,125.95, hit in early trade.

The broader based S&P CNX Nifty was down 63.75 points or 1.25% at 5017.95.

The market breadth was weak on BSE with 928 shares advancing as compared to 1704 stocks that declined. 61 stocks remained unchanged.

The BSE Mid-Cap index fell 0.92% to 7,087.48 and BSE Small-Cap index fell 0.68% to 8,629.84.

India`s biggest cellular service provider by market share Bharti Airtel spurted 3.55% to Rs 856.75. Some reports suggested Bharti Airtel may make an offer to acquire MTN Group next week.

India`s largest private sector firm by market capitalization and oil refiner Reliance Industries slipped 3.34% to Rs 2577.

India`s largest private sector bank by assets ICICI Bank slipped 2.03% to Rs 873.20. State Bank of India (down 1.49% to Rs 1704.85) and HDFC Bank (down 3.67% at Rs 1451.60), declined.

The BSE Consumer Durables index was up 0.66% at 4,439.22. Rajesh Exports (2.46% at Rs 99.90), Blue Star (down 2.43% at Rs 454), Gitanjali Gems (down 1.46% at Rs 274) and Videocon Industries (down 0.55% at Rs 368.25), moved higher.

The BSE FMCG index was up 0.17% to 2,449.18. Nestle (up 2.33% at Rs 1,795), Godrej Consumer Products (up 0.70% at Rs 137.05), ITC (up 0.70% at Rs 216.55), Tata Tea (up 0.52% at Rs 915) and Britannia Industries (up 0.37% at Rs 1,370.05), gained.

Electronic display units maker MIC Electronics jumped 2.02% to Rs 920.85 after the firm said its board will meet on 19 May 2008 to consider splitting each share into five.

India`s largest dry cell battery manufacturer by sales Eveready Industries India jumped 3.92% to Rs 46.40 after the company reported lower net loss of Rs 8.16 crore in Q4 March 2008 compared to net loss of Rs 26.45 crore in Q4 March 2007. Sales rose 10.40% to Rs 193.20 crore in Q4 March 2008 over Q4 March 2007.

Moser Baer (down 5.70% at Rs 180.40), Reliance Petroleum (down 5.46% at Rs 186.10), Reliance Capital (down 5.42% at Rs 1,309.90), MRPL (down 4.45% at Rs 93.30), Chennai Petroleum (down 4.32% at Rs 364), and Essar Oil (down 272), fell.

US markets rebounded from early lows on Thursday, 8 May 2008, led by technology stocks. Retailers` monthly sales reports also helped ease concerns about an economic downturn. The Dow Jones industrial average rose 52.43 points, or 0.41%, to 12,866.78. The Standard & Poor`s 500 index gained 5.11 points, or 0.37%, to 1,397.68, and the Nasdaq Composite index advanced 12.75 points, or 0.52%, to 2,451.24.

Back home, the market succumbed to selling pressure for the forth straight session yesterday, 8 May 2008, as weak global equities and soaring crude oil prices worried investors. The 30-share BSE Sensex fell 258.66 points or 1.49% at 17,080.65 whereas the broader based S&P CNX Nifty slipped 53.8 points or 1.05% at 5081.70 on that day.

As per provisional data, foreign funds sold shares worth a net Rs 724.49 crore yesterday, 8 May 2008. Domestic funds bought shares worth a net Rs 609.51 crore on that day.

Foreign institutional investors (FIIs) were net sellers of Rs 1,368.90 crore in the futures & options segment on Thursday, 8 May 2008. They were net sellers of index futures to the tune of Rs 1,234.72 crore and bought index options worth Rs 129.46 crore. They were net sellers of stock futures to the tune of Rs 227 crore and sold stock options worth Rs 36.63 crore.

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