News that China's central bank has cut interest rates helped the
domestic bourses cut steep intra-day losses. Despite the recovery,
the market ended the day with heavy losses. The BSE 30-share Sensex
was down 517.46 points as per provisional closing. Fears of more
foreign fund withdrawals weighed heavily on the Indian bourses
today, 15 September 2008, after US investment bank Lehman Brothers
filed for bankruptcy protection.
The financial upheaval also involved other US institutions. Bank of
America has agreed to acquire Merrill Lynch & Co for $50 billion in
an all-stock deal that will give the US bank the world's largest
brokerage.
Index heavyweight Reliance Industries (RIL) rebounded after
touching 52-week low. Maruti Suzuki India staged a sharp recovery
from day's low. Banking pivotals also rebounded from early lows
after China's central bank today, 15 September 2008, cut benchmark
lending rates by 0.27%. All the BSE sectoral indices declined with
stocks from IT and real estate worst hit.
US stock index futures were down sharply, pointing to a steep fall
at the opening on Wall Street. European markets which opened after
Indian markets were weak. Key benchmark indices in UK, Germany and
France were down by between 3.67% and 4.29%. Asian markets were
trading lower today, 15 September 2008. Key benchmark indices in
Taiwan and Singapore fell 4.09% and 3.27% respectively. Most major
Asian equity markets were closed for public holidays.
The BSE 30-share Sensex was down 517.46 points or 3.70% to
13,483.35, as per provisional closing. The Sensex opened with a
huge downward gap of 408.76 at 13,592.05. At the day's low of
13,150.81 hit in mid-morning trade, the Sensex lost 850 points.
The S&P CNX Nifty was down 167.45 points or 3.96% to 4,061 as per
provisional. It had touched an intra-day low of 3,955.40
The market breadth was extremely weak on BSE with 2258 shares
declining as compared to just 375 that rose. 38 remained unchanged.
The total turnover on BSE amounted to Rs 4468 crore.
27 from the 30-member Sensex pack suffered losses.
India's largest private sector power generation company in terms of
sales, Reliance Infrastructure tumbled 9.93% to Rs 837 on 17.35
lakh shares. It was the top loser from Sensex pack.
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 9.61% to Rs
367.50 and was the worst hit among the IT pivotals.
Other IT stocks Wipro (down 4.47% to Rs 401), Infosys (down 4.08%
to Rs 1577), TCS (down 5.94% to Rs 760.15), edged lower.
Banking pivotals rebounded from early lows. India's largest private
sector bank in terms of net profit ICICI Bank slipped 4.11% to Rs
626, off day's low of Rs 595.15. India's largest state run bank in
terms of net assets State Bank of India fell 1.68% to Rs 1486.95 ,
off day's low of Rs 1405.25
China's central bank, acting against a background of extreme stress
in global financial markets, cut benchmark lending rates by 27
basis points to 7.20% today, 15 September 2008. The People's Bank
of China (PBOC) also cut the reserve requirement for all except the
country's five biggest banks and the Postal Savings Bank by 1%. The
PBOC said the aim of the easing was to maintain fast and stable
economic growth.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries slumped 2.98% to
Rs 1873.80 on 19.05 lakh shares. The stock hit a 52-week low of Rs
1824.10 in intra-day trade. The stock slumped on reports the
government may impose a special oil tax on the domestic crude oil
production under the New Exploration Licensing Policy.
Other oil & gas stock, Essar Oil (down 9.33% at Rs 168.05), Cairn
India (down 7.47% at Rs 205.10), and Oil & Natural Gas Corporation
(down 6.74% at Rs 959.90), slumped.
Realty shares cracked on intense selling pressure. DLF (down 7.72%
to Rs 431.80), Unitech (down 7.67% to Rs 143.25), Indiabulls Real
Estate (down 6.05% to Rs 237.50), Ansal Infrastructure (down 11.81%
to Rs 78), Housing Development Infrastructure (down 12.11% to Rs
241), slumped.
Metal shares slipped. Ispat Industries (down 6.99% to Rs 21.30),
Jindal Steel & Power (down 5.62% to Rs 1497), Hindalco (down 5% to
Rs 115), Sesa Goa (down 4.71% to Rs 129.50), and Tata Steel (down
4.77% to Rs 498.50), slipped.
Ranbaxy Laboratories, India's top drug maker by sales fell 8.78% to
Rs 414.10. 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.
Reliance Communications (down 6.23% to Rs 366.80), Jaiprakash
Associates (down 6.51% to Rs 147.30), and Tata Motors (down 5.26%
to Rs 390.20), edged lower from Sensex pack.
India's top small car maker by sales Maruti Suzuki India staged a
smart recovery from day's low of Rs 666. It rose 2.03% to Rs 718
and was the top gainer from Sensex pack.
HDFC (up 1.33% to Rs 2208), and ACC (up 0.41% to Rs 593), were the
other gainers from Sensex pack.
US light crude for October 2008 delivery fell $1.52 to $99.66 a
barrel today, 15 September 2008 on early signs that Hurricane Ike
may have spared key Gulf Coast infrastructure, although traders
were cautious on Monday as they awaited status reports on more
Texas refineries.
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