Monday, May 26, 2008

Sensex sheds 301 points on weak global cues

The market today extended last week`s steep losses on weak cues from Asian markets. Banking, and capital goods stocks suffered the most in today`s slide. Information technology stocks were star performers of the session.

As per provisional data, foreign funds sold shares worth a net Rs 1337.33 crore today. Domestic funds bought shares worth a net Rs 842.05 crore.

Asian stocks fell on Monday, 26 May 2008, as investors feared rising inflation and sluggish US economic growth would seriously dent consumer demand in the region`s biggest export market. Key indices in China, Japan, Hong Kong, Taiwan, Singapore and South Korea were down by 0.60% to 3.13%.

But European markets, which opened after the Indian markets, were positive. Key indices in France and Germany were up by 0.08% to 0.25%. UK market is closed today on account of Spring Bank holiday.

On Friday, 23 May 2008, the US markets declined on concerns about a worsening housing recession and rising crude oil prices. The Dow Jones industrial average plunged 145.99 points, or 1.16%, to 12,479.63. The S&P 500 index declined 18.42 points, or 1.32%, to 1,375.93, and the Nasdaq Composite index fell 19.91 points, or 0.81%, to 2,444.67.

The 30-share BSE Sensex was down 301.14 points or 1.81% at 16,348.50. The index lost 348.76 points at day`s low of 16,300.88, hit at the fag end of the session.

The broader based S&P CNX Nifty was down 71.5 points or 1.45% at 4875.05. Nifty futures were at 4878.35, a premium of 3.3 points against the spot closing.

The NSE`s futures & options (F&O) segment turnover was at Rs 44103.52 crore, higher than Rs 41317.97 crore on Friday, 23 May 2008. BSE clocked a turnover of Rs 4134 crore in the cash segment as against Rs 5,389.63 on Friday, 23 May 2008.

The market breadth was poor on BSE with 667 shares advancing as compared to 2043 stocks that declined. 48 stocks remained unchanged.

The BSE Mid-Cap index fell 2.54% to 6,760.77 and BSE Small-Cap index fell 2.34% to 8,318.20. Both the indices underperformed the Sensex.

India`s biggest listed cellular services provider by market share Bharti Airtel advanced 3.15% at Rs 863.15 after the company decided to disengage from the ongoing talks with the South African telecom major, MTN, to explore the possibility of a merger between the two emerging markets telecom giants

India`s largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 1.17% at Rs 2524.85. The stock recovered from the day`s low of Rs 2490.

India`s second largest listed telecom services provider by sales Reliance Communication shed 5.08% to Rs 543.20 after the company entered into negotiations with South Africa`s MTN Group for a possible merger after MTN`s merger deal with Bharti Airtel collapsed.

Other major Sensex losers were, Jaiprakash Associates (down 5.58% at Rs 224.40), Ambuja Cements (down 5.38% and Maruti Suzuki (down 3.83% at Rs 759.85).

The BSE Bankex underperformed the Sensex, falling 3.56% to 7,939.25. Federal Bank (down 6.09% at Rs 221.95), Kotak Mahindra Bank (down 6% at Rs 658.05), Indian Overseas Bank (down 4.75% at Rs 130.20), Axis Bank (down 4.61% at Rs 762.95), HDFC Bank (down 2.60% at Rs 1,347.45) and State Bank of India (down 2.26% at Rs 1,537.70), slipped.

India`s largest private sector bank by assets ICICI Bank fell 4.29% at Rs 826.70.

The BSE Capital Goods index underperformed the Sensex, falling 2.72% at 12,833.68. Bharat Heavy Electricals (down 5.21% at Rs 1,656.10), Punj Lloyd (down 3.81% at Rs 320.90) and Larsen & Toubro (down 3.34% at Rs 2,749.65), tumbled.

Information technology (IT) stocks rose after the Indian rupee had fellen 0.14% to 42.755 against the dollar in morning deals. However, the domestic curency recovered to trade at 42.55 per dollar in afternoon trade. The BSE IT index outperformed the Sensex, gaining 1.77% at 4,418. Infosys Technologies (up 3.29% at Rs 1,886.40), TCS (up 2.69% at Rs 958.80), HCL Technologies (up 1.28% at Rs 295.85) and Satyam Computer (up 0.25% at Rs 483.10), rose.

However, India`s third largest software exporter by sales Wipro fell 0.43% at Rs 478.65.

Cairn India clocked the highest turover of Rs 180.52 crore on BSE. Reliance Industries (Rs 148.18 crore), Reliance Capital (Rs 145.46 crore), Bajaj Auto (Rs 144.40 crore) and Reliance Power (Rs 142.14 crore), were the other turnover toppers on BSE in that order.

Ispat Industries registered a highest volume of 1.69 crore shares on BSE. IFCI (1.11 crore shares), Aishwarya Telecom (86.54 lakh shares), Spice Communication (80.18 lakh shares) and Reliance Natural Resources (65.51 lakh shares), were the other volume toppers on BSE in that order.

Commercial vehicles maker Eicher Motors rose 20% to Rs 384.30 on reports truck maker Volvo had inked a final agreement to set up a new truck and bus joint venture with the company. Some other reports suggested that Eicher Goodearth, part of the promoter group, was considering buying back 13.12% of the company`s shares at Rs 691.68 each.

Private sector lender Bank of Rajasthan surged 13.77% to Rs 116.05 after it scheduled a board meet on 31 May 2008 to consider issue of bonus shares.

Engineering firm Crompton Greaves gained 2.31% to Rs 237.35 after posting 47.4% surge in net profit to Rs 103.07 crore on 17.1% increase in net sales to Rs 1159.53 crore in Q4 March 2008 over Q4 March 2007.

Auto parts maker Federal-Mogul Goetze (India) rose 1.76% at Rs 75.35 after it said its board will meet on 3 June 2008 to consider a rights issue.

Relentless selling in realty, oil & gas and metal stocks spooked sell-off in late trade on Friday, 23 May 2008. The 30-share BSE Sensex settled 257.47 points or 1.52% lower at 16,649.64 and the broader based S&P CNX Nifty was down 78.9 points or 1.57% at 4,946.55, on that day.

The key benchmark indices suffered losses in the week ended Friday, 3 May 2008 with the BSE Sensex plunging 785.30 points or 4.50% to 16,649.64 and the S&P CNX Nifty sliding 211.15 points or 4.09% to 4,946.55 .

Inflation based on the whole price index rose 7.82% in the year through 10 May 2008, marginally lower than 7.83% rise in the previous week, government data released on Friday, 23 May 2008, showed. Meanwhile, inflation for the year through 15 March 2008 was revised upwards to 8.02% compared to provisional figure of 6.68%.

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