The key benchmark indices snapped last two sessions' rally, opening
weak, on subdued Asian markets. Cautious outlook by IT firm Wipro
at the time of announcing Q2 results and sustained selling by
foreign funds weighed on the sentiments. Sensex was down 247.63
points or 2.32% and was near the day's low.
IT stocks were the major losers from the Sensex pack on Wipro's
cautious outlook. Tata Steel and Sterlite Industries fell more than
4% each, on weak global metal prices. The market breadth was weak
Asian stocks fell as poor US corporate results and falling
commodity prices fanned worries of a protracted global economic
slowdown. Key benchmark indices in Hong Kong, Japan, China, South
Korea, Singapore and Taiwan were down by between 0.96% to 5.28%.
At 10:18 IST, the BSE 30-share Sensex was down 247.63 points or
2.32% to 10,435.76. The Sensex fell 271.45 points at day's low of
10,411.94 in early trade. The index declined 199.63 points at the
day's high of 10,483.76 in early trade.
The S&P CNX Nifty was down 71.45 points or 2.21% to 3,163.45.
The BSE Mid-Cap index was down 1.22% at 3,543.32 and The BSE
Small-Cap index was down 0.54% at 4,173.75. Both the indices
outperformed the Sensex.
The market breadth was weak. On BSE, 407 shares advanced as
compared to 802 that declined. 37 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries fell 2.36% to Rs 1,363.90, ahead of
Q2 September 2008 result tomorrow, 23 October 2008.
Tata Steel (down 4.67% to Rs 265.05), Sterlite Industries (down
4.31% to Rs 282), Grasim Industries (down 3.39% to 1,172), Reliance
Communications (down 3.78% to Rs 248.45) were the losers from the
Sensex pack.
India's largest cigarette maker by sales ITC rose 1.01% and was the
lone gainer from the Sensex pack.
IT stocks slumped on overnight fall in American depository receipts
(ADRs) and on cautious outlook by IT major Wipro. Weak rupee which
augurs well for the sector did not stem the slide. The BSE IT index
fell 3.31% and was the biggest loser from the sectoal indices on
BSE.
India's fourth largest IT exporter by sales Wipro fell 3.85% after
it said the outlook is cautious in the near term given the extent
of strain on the global economy. Wipro ADR fell 2.87% on Tuesday,
21 October 2008, ahead of the results. Wipro reported 56.13% spurt
in net profit to Rs 852.50 crore on a 15.48% increase in total
income to Rs 5551.60 crore in Q2 September 2008 over Q1 June 2008.
India's third largest IT exporter by sales Satyam Computer Services
lost 1.34%. Its ADR skidded 1.63% overnight. The company raised its
earnings guidance in rupee terms at the time of announcing Q2
September 2008 results on Friday, 17 October 2008.
India's second largest IT exporter by sales Infosys fell 4.56%.
Infosys ADR lost 5.21% overnight. India's largest IT services
provider by sales Tata Consultancy Services lost 3.76%, ahead of Q2
results today.
Infosys, Satyam Computer Services, Tata Consultancy Service and
Wipro have a weightage of 55.06%, 16.01%, 10.45% and 7.09%,
respectively, in the BSE IT index.
The rupee fell on Wednesday, matching an all-time low hit earlier
this month. The partially convertible rupee was at 49.26/28 per
dollar, weaker than Tuesday's close of 49.04/06. A weak rupee
results in higher revenues for IT companies as they earn most of
their revenues in dollar terms.
India's largest aluminum maker by sales Hindalco Industries skidded
1.09% on reports it may sell a part of its Rs 2,081.34-crore stake
in group companies, including Grasim Industries, Idea Cellular and
Aditya Birla Nuvo, to raise funds to repay a part of the $3-billion
bridge loan it obtained to buy Novelis.
India's largest commercial vehicle maker by sales Tata Motors
declined 1.96% on reports of missing its original Nano rollout
deadline of October-December 2008
Ashok Leyland fell 1.99% on 16.31% decline in net profit to Rs
67.24 crore on 6.9% rise in sales to Rs 1866.40 crore in Q2
September 2008 over Q2 September 2007.
Punjab Tractors surged 6.22% as net profit jumped 178.47% to Rs
27.29 crore on 48.85% rise in sales to Rs 307.98 crore in Q2
September 2008 over Q2 September 2007.
Reliance Power fell 1.5% on reports it has tied up with a
consortium of domestic banks led by IDBI Bank to secure the debt
portion for the second phase of a power project in Uttar Pradesh.
The consortium will lend around Rs 2000 crore out of the total
project cost of about Rs 2700 crore.
Pantaloon Retail India rose 1.08% on reports of exiting airport
retailing joint venture, Alpha Future Retail, with the UK-based
Alpha Airports Group Plc due to differences on some operational
issues.
J Kumar Infraprojects was flat at Rs 73,25 on reporting net profit
of Rs 6.21 crore on slaes of Rs 76.89 crore in the quarter ended
September 2008.
Power Finance Corporation gained 1.2% as net profit rose 16.69% to
Rs 329.33 crore on 29.12% rise in sales to Rs 1584.98 crore in Q2
September 2008 over Q2 September 2007.
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