Weak global markets weighed heavily on the domestic bourse pulling
the BSE Sensex down 238.15 points. Nevertheless, the key benchmark
indices cut losses in late trade led by recovery in banking stocks.
Volatility was high
Metal shares were the chief casualty of the day with Sterlite
Industries plunging over 11% and Tata Steel sliding 5%. Index
heavyweight Reliance Industries dropped little under 3%. The market
breadth was extremely weak.
US stocks slumped on Tuesday, 9 September 2008 as financial shares
sold off on worries about Lehman Brothers' ability to raise
much-needed cash. The Dow Jones industrial average plunged 280.01
points, or 2.43%, to 11,230.73. The S&P 500 index fell 43.28
points, or 3.41%, to 1,224.51, and the Nasdaq Composite index
declined 59.95 points, or 2.64%, to 2,209.81.
European markets which opened after Indian market were subdued. Key
benchmark indices in UK, Germany and France were down by between
0.50% and 1.17%.
Asian markets which opened before Indian market were mixed today,
10 September 2008. Key benchmark indices in Japan, Hong Kong,
Singapore were down by between 0.44% and 2.40%. Indices in China,
South Korea, and Taiwan rose between 0.23% and 0.72%.
The BSE 30-share Sensex slipped 238.15 points or 1.6%, to settle at
14,662.61. It opened 188.23 points lower at 14,717.53. At the day's
low of 14,609.83 hit in late trade, the Sensex lost 290.93 points.
At the day's high of 14,866.32 hit in mid-morning trade, the Sensex
fell 34.44 points.
The S&P CNX Nifty slipped 68.45 points or 1.53% at 4400.25. Nifty
September 2008 futures were at 4415.30, at a premium of 15.05
points as compared to spot closing. NSE's futures & options (F&O)
segment turnover was Rs 52,717.79 crore, which was higher than Rs
43,958.71 crore on Tuesday, 9 September 2008.
The BSE Sensex is down 5624.38 points or 27.72% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 6554.16 points or 30.85% away from its all-time high of
21,206.77 struck on 10 January 2008.
Reliance Power was down 0.03% to Rs 169.35. The stock replaced Dr
Reddy's Labs in Nifty index from today. Dr Reddy's Labs slipped
1.97% to Rs 567.05.
The market breadth was weak on BSE with 1716 shares declining as
compared to 944 that advanced. 77 remained unchanged.
The total turnover on BSE amounted to Rs 5152 crore on BSE as
compared to Rs 4,587.35 crore on Tuesday, 9 September 2008.
The BSE Mid-cap index fell 1.20% at 5,708.93 and the BSE Small-cap
index slipped 0.88% to 6,903.42
Among the 30-member Sensex pack, 21 declined while the rest
advanced.
The BSE Metal index lost the most among the sectoral indices on
BSE, sliding 5.48% to 11,154 weighed by steep fall in Sterlite
Industries. Aluminium and copper maker Sterlite Industries tanked
11.76% to Rs 508 after plunging 7.50% to Rs 575.70 yesterday, 9
September 2008. It was the top loser from the Sensex pack. The
Sterlite ADR tumbled 16.23% yesterday, 9 September 2008 on the New
York Stock Exchange (NYSE) after the Vedanta group on Tuesday, 9
September 2008 announced a restructuring to simplify its corporate
structure into three commodity-focused groups: copper and
zinc-lead, aluminium-energy and iron ore.
As per the restructuring scheme, which will be effective from April
2009, Sterlite will demerge its aluminium and energy businesses to
Madras Aluminium Company (Malco) to be simultaneously renamed
Sterlite Aluminium. Vedanta will transfer its 79.4% equity interest
in Konkola Copper Mines Plc (KCM) to Sterlite.
Malco will issue seven shares of Rs 2 each to the shareholders of
Sterlite for every four shares of Rs 2 each held by them. Sterlite
will issue one share of Rs 2 each to Malco shareholders for every
51 shares of Rs 2 each held by them.
Madras Aluminium Company (Malco) was down 5.72% to Rs 201.95 on
26.87 lakh shares
Worlds sixth largest steel producer by capacity Tata Steel plunged
5.10% to Rs 535.60.
Other metal stocks JSW Steel (down 7.43% to Rs 662), Jindal Steel &
Power (down 7.97% to Rs 1656.70), Sesa Goa (down 3.73% to Rs 142),
Hindustan Zinc (down 3.57% to Rs 529.75), and Steel Authority of
India (down 6.40% to Rs 140.30), slumped.
India's largest private sector firm by market capitalization and
oil refiner Reliance Industries (RIL) lost 2.93% to Rs 2080 on 9.70
lakh shares. The stock came off its day's high of Rs 2135 hit in
early trade. As per reports, the Prime Minister's Office (PMO) may
recommend levy of export tax or even ban petroleum product exports
from Reliance's export oriented refineries in Jamnagar. The BSE Oil
& Gas index slipped 2.18% to 9,667.38.
Banking shares staged a comeback in late trade. The Bankex slipped
0.58% to 7,325.35. India's largest private sector bank in terms of
net profit ICICI Bank was down 1.52% to Rs 702, off day's low of Rs
686.60. HDFC Bank, India's second largest private sector bank in
terms of net profit was down 0.62% to Rs 1285.05, off day's low of
Rs 1250.10. India's largest state run bank in terms of net assets
State Bank of India rose 0.35% to Rs 1566 after sliding to a low of
Rs 1534.35.
Capital goods heavyweights slipped, leading a 1.07% fall to
12,233.80 in BSE Capital Goods index. India's largest power
equipment maker by sales, Bharat Heavy Electricals declined 1.95%
to Rs 1712.90. The company on Tuesday, 9 September 2008, said it
won a contract worth Rs 2,200 crore for setting up a combined cycle
power plant in Tripura on turnkey basis.
India's largest engineering & construction firm by outstanding
order book position Larsen & Toubro fell 0.97% to Rs 2710. Larsen &
Tobro today, 10 September 2008, said it had received an order worth
$160 million from Brazil's Petrobras
Telecom pivotals were also subdued. India's second largest cellular
services provider in terms of market capitalisation Reliance
Communications (RCom) slipped 0.68% to Rs 402.50. As per recent
reports, RCom's subsidiary Reliance Big Entertainment has acquired
a majority stake in the US-based cricket webcasting portal, Willow
TV, for an undisclosed amount.
Bharti Airtel, the country's largest cellular services provider in
terms of market capitalisation declined 3.04% to Rs 811
Reliance Infrastructure (down 3.17% to Rs 1037), Tata Power (down
3.54% to Rs 1048), and Jaiprakash Associates (down 2.44% to Rs
167.60), edged lower from Sensex pack.
North India's largest cement maker by sales ACC gained 1.30% to Rs
604.45 and was the top gainer from Sensex pack.
Real estate heavyweights slipped with the BSE Realty index sliding
1.52% to 4,999.99. DLF, the country's largest realty company by
market capitalisation slipped 0.19% to Rs 502.90. On Monday, 8
September 2008, the company received a clearance from the
Securities and Exchange Board of India (Sebi) to go ahead with a
buyback plan. In July 2008, DLF had announced its Rs 1,100-crore
plan to buy back shares from existing shareholders at a price not
exceeding Rs 600 a share.
Unitech, the country's second largest realty company by market
capitalisation, fell 2.55% to Rs 158.45.
Ranbaxy Laboratories, India's top drug maker by sales fell 0.32% to
Rs 455. 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.
IT pivotals were mixed despite the rupee sliding past the 45 mark
per dollar today, 10 September 2008. India's second largest
software services exporter Infosys Technologies rose 0.68% to Rs
1758.95. The stock came off day's low of Rs 1726.
Other IT pivotals Satyam Computer Services (down 0.79% to Rs
421.65), Wipro (down 0.24% to Rs 433.10), and TCS (down 1.98% to Rs
849.05), edged lower. IT firms derive a lion's share of revenue by
way of exports and therefore fall in the domestic currency benefits
the IT sector.
Austral Coke & Projects topped the turnover chart on BSE with a
turnover of Rs 275.65 crore followed by Sterlite Industries (Rs
212.85 crore), Reliance Industries (Rs 204.30 crore), Reliance
Capital (Rs 184.30 crore) and ICICI Bank (Rs 159.60 crore), in that
order.
IFCI led the volumes chart on BSE clocking volumes of 2.12 crore
shares followed by Reliance Natural Resources (93.55 lakh shares),
Tata Teleservices (Maharashtra) (72.60 lakh shares), Reliance Power
(46.75 lakh shares) and Sterlite Industries (40.65 lakh shares), in
that order.
SEL Manufacturing Company plunged 8.35% to Rs 215.65. The company
said it would set up a technical textile park in Himachal Pradesh.
The company made this announcement during trading hours today, 10
September 2008.
Usher Agro surged 12.05% to Rs 192 after company entered into a
memorandum of understanding with Satake Corporation, Japan for
expansion of rice milling capacity by another 1 million tonne. The
company announced the expansion plans during market hours today, 10
September 2008.
Hydro S&S Industries galloped 20% to Rs 41.45 after the company
said its board will meet on 16 September 2008 to consider buyback
of equity shares. The company made this announcement after trading
hours on Tuesday, 9 September 2008.
Madras Cements gained 4.16% to Rs 2620.10 after the company's board
fixed 10 October 2008 as the record date for 1:1 bonus issue and
10-for-1 stock split. The company fixed the record date after
trading hours on Tuesday, 9 September 2008.
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