The Key benchmark indices lost most of the earlier strong gains in
late trade after the chief Election Commissioner (EC) announced
dates for assembly elections in five states today afternoon. Though
the BSE Sensex provisionally rose 78.26 points, it lost nearly 500
points from the day's high. Reliance Communications fell more than
5%. Hindalco Industries and ONGC were the other major losers from
the Sensex pack.
The fall on the bourses from higher level materialised soon after a
sharp surge. The Reserve Bank of India's announcement before start
of trading to infuse more liquidity and strong global markets had
boosted the Sensex more than 550 points early afternoon
Mid-cap and small-cap indices also pared gains after an initial
spurt. The market breadth was strong.
India's central bank today said it would allow Indian commercial
banks to accept as collateral certificate of deposits (CDs) held by
mutual funds for the next 15 days. The move followed the earlier
announcement of a 14-day repo auction to enable banks to meet the
liquidity requirements of mutual funds, which had met with
redemption pressures.
As per the provisional figures, the BSE 30-share Sensex rose 78.26
points or 0.69% to 11,410.49 which was also the day's low. The
Sensex surged 561.13 points at day's high of 11,870.22, in early
afternoon trade.
The S&P CNX Nifty rose 7.70 points or 0.22% to 3,498.40 as per the
provisional figures.
BSE clocked a turnover of Rs 4,237 crore today as compare to a
turnover of Rs 3,966.25 crore on 13 October 2008.
The BSE Mid-Cap index was up 1.46% at 3,886.68 and The BSE
Small-Cap index was up 2.27% at 4,616.73. Both the indices
outperformed Sensex
The market breadth was strong. On BSE, 1,645 shares advanced as
compared to 974 that declined. 62 shares remained unchanged.
Jaiprakash Associates (up 5.94% to Rs 85.60), Tata Power Company
(up 5.04% to Rs 830) and Reliance Infrastructure (up 5.29% to Rs
633.50) were major gainers from the sensex pack.
Hindalco Industries (down 4.11% to Rs 85.10), HDFC Bank (down 3.47%
to Rs 1,138.45) and NTPC (down 2.7% to Rs 174.45) were major losers
from the Sensex pack.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries was up 3.14% to Rs 1,619.70 off
day's high of Rs 1,668.
IT stocks rose. India's largest IT exporter by sales Tata
Consultancy Services rose 2.84%. The Ministry of External Affairs
on 13 October 2008 awarded Passport Seva Project valued over Rs
1000 crore, to the company.
India's second largest IT exporter by sales Infosys rose 5.87% to
Rs 1,397.05. Infosys ADR galloped 23.42% to $29.51 on 13 October
2008. On Friday, 10 October 2008, the company revised downwards its
earnings and revenue guidance in dollar terms at the time of
announcing Q1 June 2008 results.
Wipro jumped more than 3% after its ADR advanced 39.67% on 13
October 2008 overnight. Satyam Computer Services rose 7.38%. ICSA
(India) surged close to 42%.
India's second largest bank by net profit ICICI Bank rose 5.18% to
Rs 458.25 off day's high of Rs 447.10. ICICI Bank's ADR jumped
29.96% to $18 overnight. The stock had spurted 16.75% on 13 October
2008 after the bank's chief executive K.V. Kamath said deposits
with the bank are safe, and that the bank had a cushion to take
domestic and overseas shocks. His statements came amid concerns
about ICICI Bank's exposure to the global financial crisis, which
has send the stock crashing on the bourses. The stock had fallen
19.7% on Friday, 10 October 2008, recording a sharpest single day
fall.
India's largest tractor maker by sales Mahindra & Mahindra fell
2.55% to Rs 507.25. Mahindra Systech, the auto component arm of
Mahindra & Mahindra, is reportedly looking to more than double its
revenues by diversifying its clientele to power plants, railways,
defence, aerospace and oil refineries. This comes as dipping
automobile sales in the US, Europe and many of the emerging markets
are forcing auto component companies to explore options to de-risk
their businesses.
India's largest engineering and construction firm by sales Larsen &
Toubro moved up 1.15% to Rs 1,003.65, ahead of its Q2 September
2008 results on Wednesday, 15 October 2008.
India's largest oil exploration firm by revenue ONGC lost 3.81% to
Rs 880.70 after Goldman Sachs Group reduced its rating on stock
citing concerns about lower oil price forecasts and poor production
growth. The stock came off from session's high of Rs 950.
India's second largest telecom services provider by sales Reliance
Communications fell 4.83% to Rs 268.70 off day's high of Rs 303.
The company added 1.76 million mobile subscribers in September
2008, taking its total mobile user base to more than 56 million,
the company said in a statement on Monday, 13 October 2008.
India's largest commercial vehicle maker by sales Tata Motors fell
0.12% to Rs 298.90 after commpany said its UK subsidiary, Tata
Motors European Technical Centre Plc., has bought 50.3% of
Norwegian electric vehicle firm Miljoe Grenland/Innovasjon for Rs
9.40 crore ($2 million).
Kingfisher Airlines rose 0.97% while Jet Airways fell 5.58%. Both
the stocks came sharply off from an initial surge after the two
carriers on Monday, 13 October 2008, decided to team up to share
some facilities to reduce costs as the country's airline industry
heads for its worst loss on record. The two airlines will jointly
manage fuel expenses, share some pilots and allow cross-selling of
tickets in each other's network, the Mumbai-based carriers said in
a statement yesterday.
Cadila Healthcare slipped 0.58% to Rs 284.20, even as the company
said on Tuesday, 14 October 2008, it has received approval from
World Heath Organization for Lyssavae N, a new drug which is used
for the treatment of rabies.
Bank of India rose 5.83% on reports it has raised Rs 500 crore
through a private placement of bonds with state-run insurer, Life
Insurance Corp of India.
India's central bank said it would conduct a special 14-day repo
auction, at which it infuses liquidity into the banking system, for
Rs 20000 crore ($4.2 billion) on Tuesday, 14 October 2008. The
auction was announced to enable banks to meet the liquidity
requirements of mutual funds, the central bank said.
EC today said Chattisgarh will go to vote in two phases on 14
November 2008 and 20 November 2008. The other four states - Madhya
Pradesh, Mizoram, Delhi and Rajasthan - will have a single-phase
election. While Madhya Pradesh will vote on 25 November 2008,
Mizoram and Delhi will vote on 29 November 2008. Rajasthan will go
to polls on 4 December 2008. The counting of votes in all states on
will take place 8 December 2008.
Asian stocks surged after governments around the world readied
plans to take stakes in banks to keep the global financial system
from collapsing. Japan's Nikkei, Hong Kong's Hang Seng, China's
Shanghai Composite, Singapore's Straits Times, South Korea's Seoul
Composite, and Taiwan's Taiwan Weighted jumped 3.49% to 14.15%.
China's Shanghai Composite fell 0.25%.
Trading in US index futures suggested the Dow would rise 42 points
at the opening bell.
European markets were firm. France's CAC 40, Germany's DAX and UK's
FTSE 100 rose between 3.21% to 5.17%.
Crude oil for November delivery rose as much as $2.26 to $83.45 a
barrel on the New York Mercantile Exchange.
The rupee climbed in opening deals today. The partially convertible
rupee was at 47.80 per dollar, 0.94 % above Monday's close of
48.25/27.
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