The market opened on a subdued note tracking decline in Asian markets. Nevertheless, the market recovered from lower level. IT stocks were battered after TCS' Q4 March 2008 results fell short of market expectations. Reliance Industries declined despite good Q4 numbers. The market breadth was strong.
Asian markets were trading lower today, 22 April 2008, after disappointing results posted by Bank of America Corp, the largest US retail bank, kept concerns about the fallout of the global credit crisis alive. Japan's Nikkei (Hong Kong's Hang Seng,Taiwan's Taiwan Weighted,Singapore's Straits Times and South Korea's Seoul Composite were down by between 0.37% to 3.03%.
At 10:24 IST, the 30-share BSE Sensex was down 33.59 points or 0.17% at 16,711.43. At day’s low of 16597.53 Sensex lost 141.8 points in early trade.
The market breadth was strong. 1239 stocks advanced while 834 stocks declined. 40 stocks remained unchanged.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 0.41% to Rs 2,630.25. After trading hours on Monday, 21 April 2008, Reliance Industries (RIL) reported 24% growth in net profit to Rs 3912 crore on 36.2 % growth in total income to Rs 37575 crore in Q4 March 2008 over Q4 March 2007. Higher refining margins offset fall in margins in the petrochemicals business. The gross refining margin stood at $15.5 a barrel compared to $13 a barrel in Q4 March 2007.
With the commercial production of gas slated to being in the next quarter, RIL expects oil & gas to account for higher share of revenues going forward.
TCS declined 7.41% to Rs 920. After trading hours on Monday, 21 April 2008, TCS reported 7% growth in net profit as per US GAAP at Rs 1256 crore on 18.4% growth in revenue at Rs 6095 crore in Q4 March 2008 over Q4 March 2007. The company’s management sounded positive on growth prospects despite worries that a weak US economy would hurt outsourcing deals.
The company said the deal pipeline is encouraging and client ramp-ups have started happening
Jaiprakash Associates (up 2.17% to Rs 238.10), NTPC (up 1.83% to Rs 197.75), Bharat Heavy Electricals (up 1.44% to Rs 1,799), Cipla (up 1.46% to Rs 229) edged higher.
Satyam Computer Services (down 4.4% to Rs 438.75), Wipro (down 3.12% to Rs 439.50) and Infosys (down 2.8% to Rs 1599) edged lower.
In the near-term the quality of earnings rolled out by corporate India in Q4 March 2008 will dictate the trend on the bourses. Important corporate numbers due today, 22 April 2008, are Ranbaxy Laboratories, UltraTech Cement and Biocon.
Market may turn volatile in coming days ahead of the expiry of April 2008 derivative series on Thursday, 24 April 2008. As per reports, Nifty rollover from April 2008 series to May 2008 series stood at 34% while marketwide rollover was 15%.
US markets ended mixed yesterday, 21 April 2008, as quarterly results from Bank of America fueled worries about bank earnings, while energy and tech stocks gained. The Dow Jones industrial average slipped 24.34 points, or 0.19%, to 12,825.02. The Standard & Poor's 500 index fell 2.16 points, or 0.16%, to 1,388.17, while the Nasdaq composite index gained 5.07 points, or 0.21%, to 2,408.04.
Back home, the Indian stock market posted fgains for the fifth straight session yesterday, 21 April 2008, shrugging off a steep 50 basis points hike in cash reserve ratio (CRR) announced by the Reserve Bank of India late on Thursday, 17 April 2008. The 30-share BSE Sensex was up 258.13 points or 1.57% at 16,739.33 and the S&P CNX Nifty advanced 78.60 points or 1.59% at 5,037 on that day.
The BSE Sensex has now gained 1,044.23 points or 6.65% in five straight sessions from 15,695.10 on 10 April 2008.
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