Market opens weak

The market extended yesterday’s fall tracking weak global markets and record high oil prices. The market breadth was weak. All the sectoral indices on BSE were in red. Banking, realty and healthcare stocks declined. ICICI Bank and DLF were major losers from Sensex pack. Oil prices continued their steady rise and surged to a record high near $130 a barrel on Tuesday, 20 May 2008.




At 10:23 IST, the 30-share BSE Sensex was down 101.85 points or 0.59% at 17,128.33. Sensex lost 188.55 points at day’s low of 17,041.63 touched in early trade.

The broader based S&P CNX Nifty was down 31.05 points or 0.61% at 5,073.90.

The market breadth was weak on BSE with 722 shares advancing as compared to 966 that declined. 51 remained unchanged.

Among the 30-member Sensex pack, 25 declined while the rest gained.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 0.61% to Rs 2,618.




Banking stocks declined. India’s largest private sector bank in terms of net profit ICICI Bank declined 2.35% to Rs 905.85. HDFC Bank, India's second largest private sector bank in terms of net profit, declined 2.02% to Rs 1,435. The Reserve Bank of India has approved the Scheme of Amalgamation of Centurion Bank of Punjab with HDFC Bank. The Scheme of Amalgamation will come into effect from 23 May 2008.

India’s largest commercial bank State Bank of India (SBI) declined 0.42% to Rs 1,645.55. SBI said on Tuesday 20 May 2008 it had suspended giving loans to buy tractors and farm equipment because of rising defaults in the past year. "We have pockets in the country where there are large overdues in tractor loans," Chairman O.P. Bhatt said in a statement. Bhatt said SBI had set a 33% growth target for farm loans to Rs 13400 crore for the year ending in March 2009.





Realty stocks declined. DLF (down 1.68% to Rs 625.85),Unitech (down 1.72% to Rs 274.25) edged lower. Indiabulls Real Estate rose 2.5% to Rs 536.80.

Healthcare stocks declined. Dr Reddy’s Laboratories (down 0.99% to Rs 632.50), Cipla (down 1.15% to Rs 205.25) and Ranbaxy Laboratories (down 1.15% to Rs 505) edged lower.

Tata Steel (up 0.71% to Rs 901), Tata Consultancy Services (up 0.34% to Rs 956), Bharat Heavy Electricals (up 0.43% to Rs 1,744) and Hindalco Industries (up 0.98% to Rs 201) edged higher from Sensex pack.

Jaiprakash Associates (down 1.74% to Rs 251.65), Ambuja Cements (down 1.7% to Rs 107), ONGC (down 1.64% to Rs 920.90), Hindustan Unilever (down 1.34% to Rs 238.50) edged lower from Sensex pack.




Tata Teleservices (Maharashtra) declined 1.25% to Rs 35.50. The company on Tuesday, 20 May 2008, reported a net loss of Rs 20.59 crore in Q4 March 2008, as compared to net loss of Rs 45.90 crore in the quarter ended March 2007. Total income rose 25.6% to Rs 491.19 crore in Q4 March 2008 over Q4 March 2007.

GMR Infrastructure declined 1.85% to Rs 148.15. The board of GMR Infrastructure has approved the proposal of amalgamation of GMR Aviation with the company.

Sterlite Industries India declined 2% to Rs 921.10. It said on Tuesday 20 May 2008 its copper smelter at Tuticorin, will remain under planned maintenance shutdown for 22 days from 22 May 2008

Sun TV Network declined 1.14% to Rs 343.25. It has announced the launch of its FM radio station at Kochi under the brand 'S FM' from 21 May 2008 through its subsidiary Kal Radio. This station will cater to the audience of all age groups, Sun TV said in a statement.




Asian shares dropped today, 21 May 2008, as growing inflation worries and weak earnings from two top US retailers fuelled concerns about slowing consumer spending in the world's top economy, hitting US shares on Tuesday, 20 May 2008. Key benchmark indices in Hong Kong, China, Japan, South Korea, Singapore and Taiwan were down by between 0.44% to 1.98%. Oil prices hit a fresh record near $130 a barrel.