Fresh selling derailed recovery from lower level in highly choppy
mid-morning trade. The BSE 30-share Sensex was down 407.70 points.
The market tumbled for the sixth day in a row today, 16 September
2008, mirroring mayhem in global markets triggered by fears of the
state of the US financial system after Lehman Brothers filed for
bankruptcy, insurer AIG struggled for survival and Merrill Lynch
was sold to Bank of America. Nifty cracked below 4,000 in opening
trade.
Banking and financial sector pivotals slumped on global financial
turmoil, with ICICI Bank plunging over 7%. However state run
refinery shares rose after crude hit 7-month low. Index heavyweight
Reliance Industries hit a 52-week low of Rs 1800. The market
breadth was extremely weak.
US markets collapsed on Monday, 15 September 2008 falling the most
since 11 September 2001 as investors worried about the impact of
the latest twists in the credit crisis on the economy and the
outlook for profits. The Dow Jones Industrial Average plunged
504.48 points, or 4.42%, to 10,917.51, the Nasdaq Composite index
dropped 81.36 points, or 3.60%, to 2,179.91 and the Standard &
Poor's 500 index fell 59 points, or 4.71% to 1,192.70.
Asian markets were trading weak today, 16 September 2008 as fears
of a global financial crisis gripped investors across Asia. Key
benchmark indices in China, Japan, Hong Kong, Taiwan, Singapore,
and South Korea were down by between 2.17% and 6.48%.
At 11:21 IST, the BSE 30-share Sensex was down 407.70 points or
3.01% to 13,119.02. The Sensex opened with a downward gap of 479.54
at 13,051.73, which is also its day's low so far. At the day's high
of 13,297.10 hit in mid-morning trade, the Sensex lost 233.85
points.
The S&P CNX Nifty tumbled 122 points or 3% to 3,950.90.
The market breadth was weak on BSE with 1903 shares declining as
compared to just 339 that rose. 51 remained unchanged.
The total turnover on BSE amounted to Rs 1227 crore by 11:30 IST as
compared to Rs 506 crore by 10:30 IST
Tata Motors was the lone gainer from the 30-member Sensex pack.
India's top truck maker by sales rose 0.38% to Rs 392.10, off day's
low of Rs 377.
Banking and financial pivotals were under pressure on global
financial turmoil. India's largest private sector bank in terms of
net profit ICICI Bank plunged 7.31% to Rs 579 on 10.78 lajh shares
and was the top loser from Sensex pack. India's second largest
private sector bank in terms of net profit HDFC Bank slipped 2.21%
to Rs 1177.50.
India's largest state run bank in terms of net assets State Bank of
India slipped 0.87% to Rs 1476. As per reports, the bank paid 50%
higher advance tax to Rs 1560 crore in Q2 September 2008 over Q2
September 2007. It was the top gainer from Sensex pack.
India's largest dedicated housing finance company by total revenue,
Housing Development Finance Corporation lost 3.34% to Rs 2133.
Ranbaxy Laboratories, India's top drug maker by sales slumped 5.46%
to Rs 396.25. The stock has been on sustained downtrend ever since
the Japanese drug maker Daiichi Sankyo's open offer to acquire an
additional 20% stake at Rs 737 a share in the company ended on 4
September 2008.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 1.86% to Rs
1849 on 3.53 lakh shares. The stock hit a 52-week low of Rs 1800 in
intra-day trade. Reliance Industries reportedly paid 5% higher
advance tax at Rs 680 crore in Q2 September 2008 over Q2 September
2007.
IT pivotals tumbled due to heavy selling on reports that hedging
positions taken by the companies are improper with rupee falling to
two-year low against the dollar. India's fourth largest software
services exporter Satyam Computer Services slumped 6.85% to Rs
342.95 and was the worst hit among the IT pivotals. The company
said it has bagged a SAP implementation contract from Oman-based
Khimji Ramdas LLC. The company made this announcement during
trading hours on Monday, 15 September 2008.
India's second largest software services exporter Infosys lost
2.12% to Rs 1541, after striking high of Rs 1576 in early trade.
Wipro (down 4.82% to Rs 382.90), DLF (down 6.82% to Rs 403.10), and
Jaiprakash Associates (down 6.55% to Rs 137.65), edged lower from
the Sensex pack.
State-run oil refiners surged after crude oil price declined
further to a 7-month low. Indian Oil Corporation (up 1.57% at Rs
420), BPCL (up 4.23% at Rs 362.15), and HPCL (up 3.89% at Rs
249.60), rose.
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