Weak global markets pulled the domestic bourses lower at the onset
of the trading session. Down 344.07 points, the BSE Sensex was at
the day's low. IT and metal stocks plunged in the early trade. Tata
Steel and Sterlite Industries fell more than 7% each. The market
breadth was weak as selling was witnessed across the board.
Asian stocks declined as concern earnings will deteriorate
overshadowed a $2 trillion global bank rescue.
At 10:20 IST, the BSE 30-share Sensex was down 344.07 points or 3%
to 11,139.33. The index declined 358.29 points at the day's low of
11,125.11 at the onset of the trading session. The Sensex fell
226.35 points at day's high of 11,257.15, in early trade.
The S&P CNX Nifty was down 92.55 points or 2.63% to 3,426.10.
The BSE Mid-Cap index was down 2.38% at 3,799.50 and The BSE
Small-Cap index was down 1.83% at 4,531.50. Both the indices
outperformed the Sensex.
The market breadth was weak. On BSE, 345 shares advanced as
compared to 968 that declined. 28 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries was down 2.56% to Rs 1,577.20.
Reliance Industries has reportedly tied up with three foreign firms
for its plans to set up an integrated coal mining, a coal-to-liquid
plant, and a 1,000 megawatt power plant and fly-ash utilisation
unit.
27 stocks from the Sensex pack of 30 stocks were in red. Reliance
Communications (down 6.22% to Rs 252), Jaiprakash Associates (down
4.47% to Rs 81.20) and Bharat Heavy Electricals (down 3.81% to Rs
1,431) were among major losers from the Sensex pack.
Ranbaxy Laboratories (up 1.07% t o Rs 283.55), HDFC Bank (up 0.02%
to Rs 1,139) and Tata Motors (up 0.33% to Rs 299.25) were the
gainers from the Sensex pack.
Metal stocks plunged in early trade with BSE Metasl index falling
4.13% and was the major loser from the sectoral indices on BSE.
Hindalco Industries, Sterlite Industries, Hindustan Zinc, National
Aluminum Company, Steel Authority of India and Tata Steel fell
between 1.45% to 5.53%.
As per reports, Q2 September 2008 might not bring much cheer, as
anticipated previously, to the metal companies. Correction in metal
prices, a slowdown in global economy and higher input cost would
adversely impact second quarter results for metal producers in
India. Unlike previous quarters, this time, both ferrous and
non-ferrous metal companies would be hit, the report said.
IT stocks fell with BSE IT index falling 4.29% and was the second
major loser from the sectoral indices on BSE. Satyam Computer
Services, Tata Consultancy Services, Infosys and Wipro fell between
2.74% to 4.5%.
India's largest engineering and construction firm Larsen & Toubro
fell 3/49% ahead of Q2 September 2008 result to be announced today.
Reliance Infrastructure fell 2.85%. Reliance Infrastructure
reportedly plans to raise Rs 2500 crore as loan this fiscal and is
in talks with banks including IDBI, Axis Bank and IIFCL for raising
the funds.
India's largest realty player by market capitalization DLF fell
2.35% to Rs 303.30. The company said on Tuesday, 14 October 2008
its share buyback for about Rs 1100 crore will open on Friday, 17
October 2008 after complying with regulatory requirements. The
buyback of up to 2.2 crore shares at a maximum of Rs 600 each was
set to open today, but was rescheduled following clarifications
sought by the Securities and Exchange Board of India (Sebi).
Jet Airways fell 1.52% while Kingfisher Airlines declined 3.25%.
The alliance between Jet Airways and Kingfisher Airlines could
reportedly result in a combined annual savings of Rs 800 crore and
a lay-off of 1,500 employees, or 5% of their combined workforce.
Meanwhile, Jet Airways and Kingfisher Airlines are reportedly open
to include state-owned Air India in their recently formed
operational alliance. The alliance would have a 72% market share if
Air India were to join, the reports added.
Britannia Industries fell 2%. Nusli Wadia Group is reportedly set
to acquire Groupe Danone's stake in Britannia Industries with a
committed $200 million funding from ICICI Bank.
Gemini Communication rose 4.94% after company said on Tuesday, 14
October 2008 its board will meet on 22 October 2008 to consider a
share buyback.
Hindustan Construction Company fell 2.28% to Rs 51.35. The company
said on Tuesday, 14 October 2008 that Bank of India has invested Rs
150 crore in its subsidiary Lavasa Corporation, in the form of
convertible debentures. This transaction would reconfirm the equity
valuation of Lavasa at Rs 10000 crore, it said in a statement.
Jubilant Organosys declined 1.61%. The company reported net loss of
Rs 24.39 crore in Q2 September 2008 as against net profit of Rs
111.72 crore in Q2 September 2007. Sales rose 37.72% to Rs 679
crore in Q2 September 2008 over Q2 September 2007.
New Delhi Television (NDTV) fell 4.43% to Rs 149.95. The company
reported a net loss of Rs 13.04 crore in Q2 September 2008 as
against net loss of Rs 3.95 crore in Q2 September 2007. Sales rose
9.06% to Rs 73.91 crore Q2 September 2008 over Q2 September 2007.
The Prime Minister Manmohan Singh met Finance Minister P
Chidambaram and Reserve Bank of India (RBI) Governor Duvvuri
Subbarao late Tuesday, 14 October 2008 to discuss the economic
crisis. Without divulging details of the meeting, Chidambaram said
that India economy was stable. A meeting of high-level bankers and
experts group led by Finance Secretary Arun Ramanathan is scheduled
today, 15 October 2008.
Among frontline companies, Larsen & Toubro and HCL Technologies
will declare their September quarterly results today, 15 October
2008.
The US government on Tuesday, 14 October 2008 said it will inject
$250 billion into the nation's banking system, with about half of
it going to nine major institutions. In return, the government will
receive equity stakes in the participating institutions. The
proposed cash injection is part of a $700 billion rescue plan,
which was approved by the US Congress earlier this month.
The beneficiaries of this effort include Citigroup, Goldman Sachs,
Wells Fargo, JPMorgan Chase, Bank of America, Merrill Lynch, Morgan
Stanley, State Street, and the Bank of New York Mellon. This move
follows pledges of more than $1.3 trillion by the governments of
Britain, Germany, France, and other European countries in an effort
to bolster their banks.
Asian markets were trading lower today, 15 October 2008 on concern
the rescue would come at a huge economic cost and do little to
repair the damage already done by a 14-month credit crunch. China's
Shanghai Composite, Hong Kong's Hang Seng, Japan's Nikkei,
Singapore's Straits Times, South Korea's Seoul Composite and
Taiwan's Taiwan Weighted fell between 1.6% to 2.92%.
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