Key benchmark indices extended fall in the mid-morning trade as
Asian stocks dropped on persistent questions on the effectiveness
of the US bailout package and on continued instability in the
global banking sector. The BSE 30-share Sensex was down 289.44
points. The barometer index today fell below the 13,000 mark.
Banking and realty stocks edged lower. FMCG stocks rose. ICICI Bank
fell more than 9% while Jaiprakash Associates fell more than 6%.
The market breadth was very weak as selling was witnessed across
the counter.
The US lawmakers agreeing on a $700 billion bank-rescue package and
the House of Representatives approving the nuclear deal with India,
over the weekend failed to boost the investor sentiments.
Rather, the instability in the banking industry continued to weigh
on the investors sentiments in Asia with the Belgian, Dutch and
Luxembourg governments forced to rescue financial firm Fortis over
the weekend. In addition, reports suggest the British government
will take over mortgage lender Bradford & Bingley. Most Asian
markets were trading lower today, 29 September 2008. Hong Kong's
Hang Seng, Japan's Nikkei, Singapore's Straits Times, South Korea's
Seoul Composite fell between 0.52% 2.12%.
Democratic congressional leaders supported on Sunday, 28 September
2008, a massive financial rescue plan proposed by the Bush
administration, releasing a draft text trumpeting taxpayer
guarantees and caps on executive compensation. The bill will be
introduced in the House of Representatives today, 29 September 2008
and then head to the Senate.
Meanwhile, the Indo-US nuclear deal moved into the last lap
clearing a major hurdle when the House of Representatives approved
a legislation on it that will now go to the Senate before the two
countries can implement the civil nuclear agreement.
At 11:20 IST, the BSE 30-share Sensex was down 289.44 points or
2.21% to 12,812.74. The index shed 301.50 points at the day's low
of 12,800.68 hit in mid-morning trade. The Sensex edged up 11.35
points at day's high of 13,113.53, hit at the onset of the trading
session.
The S&P CNX Nifty was down 69.95 points or 1.76% to 3,915.30.
The BSE Mid-Cap index was down 2.68% at 4,808.24 and the BSE
Small-Cap index was down 2.66% at 5,705.64.
The market breadth was weak on BSE with 380 shares advancing as
compared to 1,757 that declined. 48 shares remained unchanged.
India's largest private firm by market capitalization and oil
refiner Reliance Industries fell 0.61% to Rs 1,950.
FMCG stocks rose on defensive buying. The BSE FMCG index rose 1.53%
to 2,222.57 and the index was the lone gainer from the sectoral
indices on BSE. Hindustan Unilever (up 4.28% to Rs 263.75), ITC (up
0.81% to Rs 193.75), REI Agro (up 0.01% to Rs 955) edged higher.
Nestle India rose 0.8% to Rs 1,653. The company has unveiled its
capital expenditure plan of Rs 600 crore in 2009, which is double
the Rs 300 crore that it is investing in the current year. The
investment would go in new research and development, advertising
and capacity building, Nestle's chairman and managing director,
Martial Rolland, said while addressing a press conference on
Friday, 26 September 2008.
Banking shares fell. The BSE Bankex fell 3.39% to 6,347.81. ICICI
Bank (down 9.27% to Rs 509.40), and State Bank of India Bank (down
3.45% to Rs 1,384.70), HDFC Bank (up 1.81% to Rs 1223.20) edged
lower from the frontline banking pack.
Rate sensitive realty stocks declined. The BSE Realty index fell
4.59% to 3,432.04 and was the major loser from the sectoral indices
on BSE. Akruti City (down 8.73% to Rs 729.80), Indiabulls Real
Estate (down 6.73% to Rs 172.50), Unitech (down 3.74% to Rs 106.90)
and DLF (down 3.9% to Rs 354.90) edged lower.
Jaiprakash Associates (down 7.09%to Rs 197.85), Tata Motors (down
5.18% to Rs 353.10), Satyam Computer Services (down 4.02% to Rs
309), Maruti Suzuki India (down 4.01% to Rs 654) edged lower from
the Sensex pack.
Ranbaxy Laboratories (up 1.98% to Rs 277.80), Bharat Heavy
Electricals (up 0.88% to Rs 1,564.05) edged higher from the Sensex
pack.
India's fifth-largest software exporter by sales HCL Technologies
fell 7.02% to Rs 198.40. HCL Technologies fell 7.42% to Rs 197.15.
On Friday, 26 September 2008, launched an all-cash offer for
UK-based SAP implementation consultancy Axon. The offer trumped an
earlier bid by Infosys, India's second largest IT services provider
by sales.
HCL's all-cash offer at 650 pence a share is 8.3% higher than the
600-pence offer by Infosys, which has promised a further
announcement 'in due course'. Reports suggest that Infosys is
expected to disclose its future plans on Axon on Monday, 29
September 2008.
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