The key benchmark indices extended steep losses of the previous
trading session as stocks fell across the globe as global financial
crisis deepened. A sell-off in index pivotals pulled down Sensex by
724.62 points today, 6 October 2008. US futures were down
indicating of lower opening of US markets. The Sensex hit its
lowest level in more than two years and the S&P CNX Nifty hit 1-½
year low.
In a major development, the market regulator Securities & Exchange
Board of India (Sebi) today, 6 October 2008, announced removal of
restriction on issue of participatory notes (P-notes) by foreign
institutional investors (FIIs) against securities, including
derivatives, as underlying. The announcement was made shortly after
trading hours. P-notes are issued by foreign funds registered in
India to unregistered overseas investors.
Consumer durables and realty stocks plummeted. Sterlite Industries
fell more than 15%. Reliance Infrastrucutre and Jaiprakash
Associates fell more than 13.5% each. Reliance Industries (RIL)
fell more than 6.5% while Infosys fell more than 5%. The market
breadth was weak as selling was witnessed across the board.
The global financial crisis spread further to Europe and doubts
persisted about the effectiveness of the US administration's $700
billion US financial sector bailout plan. Despite weeks of huge
liquidity injection by central banks, money markets remained tight,
reflecting deep-rooted reluctance by banks to lend to each other.
The uncertainty over the nuclear deal with the United States
persisted as Condoleezza Rice, US secretary of state, left New
Delhi at the weekend without signing the US-India nuclear deal. The
domestic bourses ignored fall in inflation and further fall in oil
& commodity prices.
US futures were trading lower. Nasdaq futures were down 30 points
and Dow futures were down 194 points.
The BSE 30-share Sensex lost 724.62 points or 5.78% to 11,801.70.
The index shed 793.75 points at the day's low of 11,732.97, hit in
late trade, its lowest level since 13 September 2006. The Sensex
fell 241.83 points at day's high of 12,284.49, in early trade.
The S&P CNX Nifty was down 215.95 points or 5.66% to 3,602.35.
Nifty hit a low of 3,581.60, its lowest level since 16 March 2007.
The BSE Sensex has lost 1,253.97 points or 9.6% in last two trading
sessions from its close of 13,055.67 on 1 October 2008. The
barometer index is down 8,489.29 points or 41.82% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 9,405.07 points or 44.34% below its all-time high of
21,206.77 struck on 10 January 2008.
Nifty October 2008 futures were at 3642, at a premium of 39.65
points as compared to spot closing of 3602.35. NSE's futures &
options (F&O) segment turnover was Rs 46,853.23 crore, which was
higher than Rs 44,983.07 crore on Friday, 3 October 2008.
BSE clocked a turnover Rs 3921 crore today, 6 October 2008 as
compared to a turnover of Rs 4801.25 crore on Friday, 3 October
2008.
The BSE Mid-Cap index was down 7.13% at 4,344.23 and the BSE
Small-Cap index was down 6.92% at 5,086.93.
BSE Consumer Durbles index (down 11.01% to 2,569.60), BSE Realty
index (down 9.91% to 2,999.99), BSE Metal index (down 9.27% to
7,636.65), BSE Capital Goods index (down 7.27% to 9,494.93), BSE
Power index (down 7.24% to 2,066.31), BSE Oil & Gas index (down
6.14% to 7,909.50), BSE IT index (down 5.82% to 2,929.25),
underperformed the Sensex.
BSE Auto index (down 3.5% to 3,526.40), BSE PSU index (down 3.9% to
5,931.10), BSE Bankex (down 4% to 6,172), BSE FMCG index (down
4.11% to 2,090.50), BSE HealthCare index (down 4.79% to 3,488.07),
BSE Teck index (down 5.62% to 2,381.71), outperformed the Sensex.
The market breadth was weak on BSE with 281 shares advancing as
compared to 2,369 that declined. 27 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries fell 6.76% to Rs 1,641.90. The
stock hit a 52-week low of Rs 1,632.10 today. The promoters of
Reliance Industries converted their 12 crore warrants into an equal
number of shares. Post-transaction, the promoter group holds 49%
stake in the company, with 52% voting rights. This involves an
infusion of around Rs 15,142 crore into the company. The shares
have a lock-in period of three years.
Reliance Industries is also reportedly mulling the merger of its
different formats -- Reliance Hypermart, Reliance Super and
Reliance Fresh -- to make its retail arm more efficient.
India's second largest IT exporter by sales Infosys declined 5.26%
to Rs 1,317.80. It recovered from the session's low of Rs 1,275.15.
Sterlite Industries (down 15.26% to Rs 335.35), Reliance
Infrastructure (down 13.93% to Rs 638), Jaiprakash Associates (down
13.57% to Rs 100.35), Tata Steel (down 11.06% to Rs 350.25), Tata
Power Company (down 10.15% to Rs 798.35), Grasim Industries (down
9.54% to Rs 1,590.80), declined sharply from the Sensex pack.
Realty stocks declined. Indiabulls Real Estate (down 9.89% to Rs
144.85), Unitech (down 9.85% to Rs 101.10) and DLF (down 10.33% to
Rs 301.65) edged lower.
Consumer durables stocks plummeted. Gitanjali Gems (down 16.75% to
Rs 155.85), Blue Star (down 12.3% to Rs 245.70), Titan Industries
(down 11.45% to Rs 953.85) and Videocon Industries (down 9.99% to
Rs 185.60) edged lower.
India's largest electric equipment maker by sales Bharat Heavy
Electricals declined 7.48% to Rs 1,449.40. Bharat Heavy Electricals
and Nuclear Power Corporation of India are reportedly in talks with
foreign firms Siemens, Alstom and GE for a third partner in their
planned joint venture to set up nuclear power projects in India.
IFCI clocked the highest volume of 1.05 crore shares on BSE.
Reliance Natural Resources (1.04 crore shares), Reliance Petroleum
(71.16 lakh shares), Jaiprakash Associates (59.01 lakh shares) and
Ispat Industries (56.97 lakh shares) were the other volume toppers
in that order.
Reliance Industries clocked the highest turnover of Rs 380.80 crore
on BSE. Reliance Capital (Rs 244.10 crore), Axis Bank (Rs 141.14
crore), ICICI Bank (Rs 119.17 crore) and Tata Steel (Rs 117.74
crore) were other turnover toppers in that order.
Asian stocks fell today, 6 October 2008, led by shares of
exporters, after a hectic weekend in Europe as the financial crisis
gathered steam there, knocking the euro to the lowest in a year.
Fears that damage from dysfunctional financial systems in developed
economies would almost certainly push them closer to recessions,
weighed on Asian stocks. Key benchmark indices in Hong Kong, China,
Japan, South Korea, Singapore and Taiwan were down by between 4.12%
to 5.23%.
In Europe, France's CAC 40, Germany's DAX and UK's FTSE 100 were
down between 3.06% to 5.63%.
BNP Paribas France's biggest listed bank, today, 6 October 2008,
said it was paying 14.5 billion euros ($20.1 billion) to take
control of European financial group Fortis. Germany gave blanket
bank deposit guarantee on Sunday, 5 October 2008, to prevent panic
as officials clinched deals to rescue Germany's Hypo Real Estate --
after an initial bailout failed -- and recapitalize two other
European banks.
In South Korea, banks were having trouble raising foreign currency
funds and the government pledged to give banks access to the
country's foreign exchange reserves, the world's sixth largest at
nearly $240 billion.
US stocks declined in volatile trade on Friday, 3 October 2008, on
concerns whether the $700 billion rescue plan, which was approved
by the US Congress would be quickly implemented and whether it
would be enough to shore up the economy. The Dow Jones Industrial
Average slid 157.47 points or 1.5% at 10,325.38. The tech laden
Nasdaq Composite index shed 29.33 points or 1.48% at 1,947.39.
With the end of third quarter of the calendar year 2008 on Tuesday,
30 September 2008, hedge fund are bracing for heavy redemption amid
US financial sector crisis which has already spread to Europe.
Investors in hedge funds are usually allowed to exit funds only on
the final day of the financial quarter. Large-scale investor
redemption in hedge funds may trigger further selling by foreign
funds in India. Hedge funds mainly operate through the
participatory notes route in India. However, there is no data
available on the quantum of hedge funds' investment in India.
The next major trigger for the market is Q2 September 2008 results.
IT bellwether Infosys kickstarts the reporting season on 10 October
2008.
Last-minute administrative hitches forced Condoleezza Rice, US
secretary of state, to leave New Delhi at the weekend without
signing the US-India nuclear deal to end more than three decades of
isolation for India's nuclear programme. The deal is now expected
to be signed by US president George Bush on Wednesday, 8 October
2008. Cautious Indian negotiators have been keen for Bush to sign
the deal into US law and to publish a presidential statement before
signing the agreement themselves.
The agreement allows US companies to provide India with technology
for its civilian nuclear programme, ending an embargo in place
since India tested a nuclear weapon in 1974. It also gives India
international status as an acceptable nuclear power, even though it
is not a signatory to the Nuclear Non-proliferation Treaty.
Inflation based on the wholesale price index rose 11.99% in 12
months to 20 September 2008, below the previous week's annual rise
of 12.14%, government data released after trading hours on Friday,
3 October 2008, showed. Inflation for the week ended 26 July 2008
was revised upwards to 12.53% from 12.01%.
US light crude fell 3.8% to $90.34 a barrel in Asian trading today,
6 October 2008, as concerns grew the slowing economy would choke
off energy demand.
The BSE 30-share Sensex plunged 529.35 points or 4.05% to
12,526.32, on Friday, 3 October 2008, its lowest closing in 18
months.
No comments:
Post a Comment