Profit selling coupled with concerns arising from higher crude oil
prices dragged the market lower today, 22 September 2008. The
30-share BSE Sensex provisionally ended 89.55 points lower. All the
sectoral indices on BSE, barring FMCG and metal indices, were
negative.
At 15:30 IST, the crude oil was trading at $106.04 on the New York
Mercantile Exchange (NYMEX).
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, and Taiwan were up by
between 0.31% to 7.77%. However, Singapore's Straits Times was down
0.58%.
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 4.90 points, Nasdaq 100 futures were down 4.50
points and the Dow futures were down 28 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.
European markets, which opened after Indian market, recovered from
initial slide. Key indices in UK, France, and Germany were down
0.03% to 0.20%.
As per provisional data, the BSE 30-share Sensex was down 89.55
points or 0.64% to 13,952.77. The Sensex rose 178.72 points at
day's high of 14,221.04, hit in early trade. The index shed 124.84
points at the day's low of 13,917.48, hit in mid-afternoon trade.
The indices were choppy throughout the session. The BSE Sensex
showed a gap of 303.56 points between session's high and low.
The S&P CNX Nifty was down 36.10 points or 0.85% to 4209.15.
The BSE Mid-Cap index was down 0.51% at 5,202.21 and the BSE
Small-Cap index was down 0.49% at 6,185.28.
The market breadth was negative on BSE with 1217 shares advancing
as compared to 1376 that declined. 70 shares remained unchanged.
BSE clocked a turnover of Rs 4871 crore compared with Rs 6,226.77
on Friday, 19 September 2008.
Satyam Computer (down 4.62% at Rs 353), Jaiprakash Associates (down
4.14% at Rs 129.65), Maruti Suzuki (down 4% at Rs 712), and Ranbaxy
Laboratories (3.61% at Rs 343.95), were the prominent losers from
the Sensex pack.
ACC (up 3.74% at Rs 627.65), ITC (up 1.91% at Rs 194.70), Hindustan
Unilever (up 1.65% at Rs 249.20), Bharti Airtel (up 0.87% at Rs
806.05), Housing Development Finance Corporation (up 0.72% at Rs
2325), and Grasim Industries (up 0.66% at Rs 1930), were the major
gainers from the Sensex pack.
India's largest state-run oil explorer Oil & Natural Gas
Corporation (ONGC) dropped 1.41% to Rs 1057. 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 3.41%
at 109. The company's Rs 5050 crore rights share offering opened
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.
World's sixth largest steel maker Tata Steel rose 2.38% at 491. As
per reports, Tata Steel, through its indirect subsidiary TS Global
Minerals Holdings, has purchased a 7.3% stake in Riversdale, which
has a coking coal project in Mozambique.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) declined 1.20% at Rs 2027.30.
The stock accounts for 15.09% of Sensex's weightage.
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 largest private sector bank by market capitalisation ICICI
Bank rose 0.25% at Rs 629.70.
India's second largest software exporter by sales Infosys
Technologies was flat at Rs 1624.
India's largest engineering and construction firm by revenue Larsen
& Toubro fell 3.04% at Rs 2565 on reports company is planning to
sell as many as four business units that have not registered
significant growth.
Telecom solutions provider Tulip Telecom surged 8.87% to Rs 1,012
after the company bagged a project worth Rs 95 crore for supply and
installation of network equipment across Madhya Pradesh.
Offshore services provider Dolphin Offshore Enterprises India
surged 3.81% to Rs 252.05 after the company won two separate
contracts worth $16 million for charter hire of its diving support
vessels.
Automobile components maker Amtek India surged 1.90% to Rs 72.25 on
reports private equity firm Chrys Capital has acquired additional
4% stake in the company.
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