Tuesday, May 20, 2008

Market fails to sustain higher level

The market plunged in early afternoon trade to touch new intra-day low. The market had witnessed a recovery from lower level in mid-morning trade after weak Asian markets and record high oil prices had pulled it down in early trade. The market breadth was strong. IT stocks were mixed. Banking, capital goods and realty stocks declined.

At 12:22 IST, the 30-share BSE Sensex was down 159.69 points or 0.93% at 17,272.45. Sensex lost 193.44 points at day`s low of 17,241.50 touched in early afternoon trade.

The broader based S&P CNX Nifty was down 54.05 points or 1.05% at 5,103.65.

The market breadth was strong on BSE with 1,427 shares advancing as compared to 1,076 that declined. 84 remained unchanged.

Among the 30-member Sensex pack, 22 declined while the rest gained.

India`s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 1.1% to Rs 2,608. It has reportedly formed a $1 billion joint venture with New York-based Vornado Realty Trust to set up a real estate fund.

IT stocks were mixed. Infosys (up 1.83% to Rs 1,905.40) and Satyam Computer Services (up 1.2% to Rs 493) edged higher. Wipro (down 1.71% to Rs 497.50) and Tata Consultancy Services (down 1.67% to Rs 959.80) edged lower.

Banking stocks declined. ICICI Bank (down 1.44% to Rs 928) and HDFC Bank (down 1.48% to Rs 1,480.75) edged lower.

India`s largest commercial bank State Bank of India declined 2% to Rs 1,670. It has reportedly decided to stop giving loans for the purchase of tractors and other farm equipment. Due to mounting non-performing assets in the farm equipment loan segment, the bank has decided to temporarily put on hold all future advances for farm equipment like tractors, power tillers and combined harvesters, the reports suggested.

Realty stocks declined. Indiabulls Real Estate (down 1.27% to Rs 530.45), DLF (down 0.85% to Rs 643.70) and Unitech (down 2.16% to Rs 280.45) edged lower.

Capital goods stocks declined. Larsen & Toubro (down 1.11% to Rs 2,963.05) and Bharat Heavy Electricals (down 2.3% to Rs 1,754) edged lower. However Suzlon Energy rose 0.89% to Rs 310.70.

India`s largest tractor maker by sales Mahindra & Mahindra declined 1.54% to Rs 652. It is reportedly eyeing Italian motorcycle marque brands — Cagiva and MV Agusta. The Castiglioni family, which owns flagship MV Agusta and Cagiva motorcycle brands, has been facing financial troubles for some time and has been on the look out for a potential acquirer, the reports added.

India`s largest car maker by sales Maruti Suzuki India rose 0.22% to Rs 820.75. It has reportedly increased prices of cars by up to Rs 18,000 because of higher raw material costs.

ACC (up 0.93% to Rs 686.50), Tata Steel (up 0.6% to Rs 896.25) Ranbaxy Laboratories (up 0.32% to Rs 512.35), Reliance Communications (up 0.17% to Rs 602.90) edged higher from the Sensex pack.

Reliance Infrastructure (down 3.53% to Rs 1,409), Jaiprakash Associates (down 3.18% to Rs 261.40), Hindalco Industries (down 3.04% to Rs 197.15), Bharti Airtel (down 2.16% to Rs 832), NTPC (down 2.02% to Rs 187.20)edged lower from Sensex pack.

Educomp Solutions declined 0.31% to Rs 4,072.20. The company has acquired a 51% stake in Learning.com.for $ 25 million which includes the purchase of existing shares as well as infudsion of new capital into the company.

Bank of Baroda rose 1.2% to Rs 299. The bank`s net profit rose 12.52% to Rs 276.44 crore on 26.57% rise in total income to Rs 3885.7 crore in Q4 March 2008 over Q4 March 2007.

Asian markets were trading lower today, 20 May 2008. Key benchmark indices in China, Hong Kong, Japan, Singapore South Korean and Taiwan were down by between 0.65% to 2.92%.

US markets ended mixed on Monday 19 May 2008 after a late-day sell-off. Weakness in techs, retail and housing prompted traders to lock in some profits. The Dow gained 41.36 points, or 0.32%, to 13,028.16. The S&P 500 rose 1.28 points, or 0.09%, to 1,426.63. The Nasdaq composite index was down 12.76 points, or 0.50%, to 2,516.09.

Back home on Friday 16 May 2008, the 30-share BSE Sensex rose 81.40 points or 0.47% at 17,434.94. The broader based S&P CNX Nifty advanced 42.45 points or 0.83% at 5,157.70.

The BSE Sensex had risen 697.87 points or 4.17% to 17,434.94 in the week ended Friday, 16 May 2008. The S&P CNX Nifty rose 175.10 points or 3.51% to 5157.70 in the week.

As per provisional data, foreign funds purchased shares worth a net Rs 475.87 crore on 16 May 2008. Domestic funds bought shares worth a net Rs 392.1 crore on that day.

Crude-oil futures had marked their first close above $127 a barrel Monday 19 May 2008, with the market extending last week`s strength on growing concerns about energy supply and demand from China.

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