The key benchmark indices were range bound in early afternoon
trade. The BSE 30-share Sensex was up 69.69 points. The barometer
index hovered in a range of 14050 and 14150. FMCG shares were in
demand. Banking shares recouped early losses. India's largest real
estate developer by market capitalisation DLF moved higher.
At 12:20 IST, the BSE 30-share Sensex was up 69.69 points or 0.50%
to 14,112.01. The Sensex rose 178.72 points at day's high of
14,221.04, hit in early trade. The index shed 27.05 points at the
day's low of 14,015.27, hit in early trade.
The S&P CNX Nifty was up 9.60 points or 0.23% to 4254.85.
The BSE Mid-Cap index was up 0.86% at 5,273.50 and the BSE
Small-Cap index was down 0.78% at 6,264.75.
The market breadth was positive on BSE with 1404 shares advancing
as compared to 925 that declined. 77 shares remained unchanged.
India's largest real estate developer by market capitalisation DLF
rose 1.75% at 434.20. As per reports, the company is retrenching
around 300 employees across all its centres and subsidiaries as it
decides to slow down its project execution, especially in Tier II
cities, in the face of shrinking demand and expensive borrowing.
Tata Steel (up 3.11% at Rs 494.50), Housing Development Finance
Corporation (up 1.28% at Rs 2338), and Sterlite Industries (up
1.15% at Rs 474), were the prominent gainers from the Sensex pack.
Satyam Computer (down 2.46% at Rs 361.40), Ranbaxy Laboratories
(down 1.78% at Rs 350.25), Maruti Suzuki (down 1.56% at Rs 730.10),
Tata Motors (down 0.86% at Rs 419.20), and Wipro (down 0.535 at Rs
414.65), were the major losers from the Sensex pack.
India's largest state-run oil explorer Oil & Natural Gas
Corporation (ONGC) dropped 1.13% to Rs 1058. As per reports, ONGC
Videsh (OVL), the overseas investment arm of ONGC, may take a $1
billion short-term loan to partly fund the $2.8 billion acquisition
of London Stock Exchange-listed Imperial Energy.
India's largest aluminium producer Hindalco Industries fell 0.53%
at 112.25. The company's Rs 5050 crore rights share offering for
subscription today, 22 September 2008. The sale in a ratio of three
shares for every seven held at Rs 96 a share will close on 10
October 2008. The company aims to use the funds to repay a bridge
loan it had taken to buy Canada's Novelis in 2007.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) rose 1.22% at Rs 2077.15. The
company began production of crude oil from its KG-D6 block of the
Krishna Godavari basin on 17 September 2008 and the firm plans to
commercially release gas from the well by January 2009. The company
aims to supply at least 40% of the nation's requirement of oil and
gas and become one of the world's largest deep-water developers.
According to reports, the company can technically sell its
Krishna-Godavari (KG) basin gas at a price higher than the
government-discovered price of $4.20 per million British thermal
units (mBtu).
India's second largest software exporter by sales Infosys
Technologies rose 0.22% at 1627.40.
Banking stocks recovered. India's largest private sector bank by
market capitalisation ICICI Bank rose 0.43% at Rs 630.70. It came
of early low of 616.20. State Bank of India (up 0.97% at Rs
1579.85), HDFC Bank (up 0.14% at Rs 1301), Axis Bank (up 0.63% at
Rs 713.30), and Bank of India (up 3.40% at Rs 293.10), moved up.
The BSE Bankex was up 0.70% at 7,159.66. The index recovered from
early low of 7,064.58.
FMCG shares were in demand. ITC (up 2.22% at Rs 195.30), Hindustan
Unilever (up 1.37% at Rs 248.50), United Breweries (up 3.04% at Rs
149), and Godrej Consumer Products (up 2.24% at Rs 118.70), soared.
The BSE FMCG index was up 1.57% at 2,209.37.
Telecom solutions provider Tulip Telecom surged 7.61% to Rs 1,002
after the company bagged a project worth Rs 95 crore for supply and
installation of network equipment across Madhya Pradesh.
Asian stocks rose after the US government proposed a $700 billion
plan to solve the world financial crisis by rescuing banks from
billions of dollars in risky mortgage debt. Key benchmark indices
in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were
up by between 0.19% to 6.96%.
However, uncertainty about the workings of the government's $700
billion bank bailout drove US stock index futures lower, suggesting
the US market may open lower today, 22 September 2008. The S&P 500
futures were down 5.90 points, Nasdaq 100 futures were down 6.75
points and the Dow futures were down 76 points. The drop in stock
index futures came on the heels of Friday's (19 September 2008)
massive rally in stocks worldwide -- the largest ever one-day
advance as measured by market value.
According to the US administration's proposal, the federal
government would buy up as much as $700 billion of illiquid
mortgage assets at a deep discount from banks. The Treasury
Department would run the program directly, unlike the savings and
loan crisis of the 1990s when Congress created the Resolution Trust
Company to spearhead a financial bailout. The $700 billion plan,
the most sweeping intervention in the financial markets since the
Great Depression, is aimed at stemming the credit crisis roiling
Wall Street and threatening the global markets.
Back home, the current week will see expiry of September 2008
derivatives contracts. The September 2008 contracts expire on
Thursday, 25 September 2008. Roll over in Nifty futures till
Friday, 19 September 2008, was about 18% whereas Mini Nifty has
seen rollover of about 31% of positions.
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