Bearish sentiment prevailed today as key benchmark indices snapped
last two days' rally on weak global cues. Sensex fell close to 600
points at the day's lows hit in late trade. The barometer index had
risen 459.92 points in the preceding two trading sessions. Index
heavyweight Reliance Industries (RIL) hit 52-week low, falling more
than 7.5%. Tata Steel fell more than 10% while Sterlite Industries
fell more than 8.5%. Ranbaxy Laboratories rose more than 4.5%. The
market breadth was weak.
Concerns about the effectiveness of the US bailout plan in averting
a recession in the global recession weighed on investor sentiments.
The US Senate on Wednesday, 1 October 2008, passed the government's
financial rescue plan. On the same day, the Senate also approved
the Indo-US nuclear deal.
US stock futures were trading higher. Nasdaq futures were up 8
points and Dow Jones futures gained 55 points. European markets
which opened after Indian market were in green. France's CAC 40,
and UK's FTSE 100 were down between 0.17% to 0.23%. However,
Germany's DAX was up 0.13%.
Asian stocks dropped today, 3 October 2008, on fears that the
global economy will worsen even if the US Congress passes a $700
billion bank rescue bill. Key benchmark indices in Hong Kong,
Japan, Singapore were down by between 1.39% to 2.9%. The key
benchmark index in Taiwan rose 0.68% as state funds bought index
heavyweights to boost the market. Stock markets in China and South
Korea were closed.
The BSE 30-share Sensex plunged 529.35 points or 4.05% to
12,526.32. The index shed 583.06 points at the day's low of
12,472.61, hit in late trade. The Sensex fell 54.48 points at day's
high of 13,001.19, in early trade.
The S&P CNX Nifty ended down 132.45 points or 3.35% to 3,818.30.
BSE clocked a turnover of Rs 4,767 crore today as compared to a
turnover of Rs 4,358.87 crore on 1 October 2008.
Nifty October 2008 futures were at 3851, at a premium of 32.70
points as compared to spot closing of 3818.30. NSE's futures &
options (F&O) segment turnover was Rs 44,983.07 crore, which was
lower than Rs 47,733.85 crore on Wednesday, 1 October 2008.
The BSE Sensex is down 7,760.67 points or 38.25% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 8,680.45 points or 40.93% below its all-time high of
21,206.77 struck on 10 January 2008.
The BSE Mid-Cap index was down 3.03% at 4,677.80 and the BSE
Small-Cap index was down 2.52% at 5,465.40.
BSE Metal index (down 7.01% to 8,417.11), BSE Oil & Gas index (down
5.74% to 8,426.67), BSE Consumer Durbles index (down 4.24% to
2,887.66), underperformed Sensex.
BSE FMCG index (down 0.49% to 2,180.14), BSE Auto index (down 0.91%
to 3,654.25), BSE HealthCare index (down 1.28% to 3,663.42), BSE
PSU index (down 2.28% to 6,171.50), BSE Power index (down 2.5% to
2,227.68), BSE Realty index (down 2.84% to 3,329.85), BSE Capital
Goods index (down 3.34% to 10,238.99), BSE IT index (down 3.34% to
3,110.28), BSE Teck index (down 3.39% to 2,523.49), BSE Bankex
(down 3.88% to 6,428.95), outperformed Sensex.
The market breadth was weak on BSE with 669 shares advancing as
compared to 1,924 that declined. 51 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries fell 7.67% to Rs 1,760.95. The
stock hit a 52-week low of Rs 1,745.10 today.
Metal stocks dropped after commodity prices fell overnight on fears
the global economic slowdown will hurt demand. Sterlite Industries
(down 7.84% to Rs 395.75), Steel Authority of India (down 7.09% to
Rs 114.65), National Aluminum Company (down 5.52% to Rs 349.20),
Hindalco Industries (down 0.86% to Rs 97.70), Hindustan Zinc (down
6.91% to Rs 404.80), edged lower.
The world's sixth largest steel maker Tata Steel fell 10.22% to Rs
393.80 and was the top loser from the Sensex pack. The company said
on Wednesday, 1 October 2008 its Singapore-based unit has agreed to
buy 19.9% stake in Canadian miner New Millenium Capital Corporation
for $22.6 million (Rs 106 crore).
ICICI Bank (down 8.51% to Rs 504.50), Tata Power Company (down
6.13% to Rs 888.50), Reliance Infrastructure (down 5.15% to Rs
741.25), HDFC (down 5.57% to Rs 2,081.85), Bharti Airtel (down
4.25% to Rs 756.45), edged lower from the Sensex pack.
Hindustan Unilever (up 0.81% to Rs 256.15) and Mahindra & Mahindra
(up 1.7% to Rs 515.15) edged higher from the Sensex pack.
India's largest drug maker by sales Ranbaxy Laboratories surged
4.83% to Rs 263.85 on reports the US Department of Justice may
withdraw the motion against the company next week in a local court
in the US. It was the major gainer from Sensex pack.
India's second largest IT services Infosys fell 4.33% to Rs
1,390.95. The stock recovered from session's low of Rs 1,382. Axon
raised the pressure on Indian outsourcer Infosys on Thursday, 2
October 2008, to raise its offer for the UK-based consultancy group
by recommending the counter-bid of HCL Technologies to its
shareholders.
HCL last week trumped Infosys's 600 pence per share bid for Axon
with a cash offer of 650 pence, which values Axon at £441m ($780m),
8.3 % higher than the Infosys bid.
India's largest commercial vehicle maker by sales Tata Motors
declined 2.52% to Rs 330.70. Tata Motors' sales rose 2.7% to 49,647
units in September 2008 over September 2007. Sales of commercial
vehicles rose 6% to 28,648 units in September 2008 over September
2007. Sales of passenger vehicles declined 2.5% to 16,586 units in
September 2008 over September 2007.
Cals Refineries clocked the highest volume of 1.23 crore shares on
BSE. Reliance Natural Resources (1.04 crore shares), IFCI (67.50
lakh shares), Chambal Fertilisers and Chemicals (51.08 lakh shares)
and Reliance Petroleum (49.2 lakh shares) were the other volume
toppers in that order.
Reliance Industries clocked the highest turnover of Rs 649.31 crore
on BSE. Reliance Capital (Rs 313.20 crore), Bharti Airtel (Rs
234.49 crore), ICICI Bank (Rs 207.31 crore) and Axis Bank (Rs
181.18 crore) were the other turnover toppers in that order.
The US Senate on Wednesday, 1 October 2008, passed the government's
financial rescue plan after the House of Representatives rejected
it in its original form. The House is expected to vote on the
revised bill on Friday, 3 October 2008. Under the plan, the
Treasury would buy illiquid assets held by financial institutions,
in the hope of restoring confidence and thawing credit markets
vital to the wider economy.
The Indo-US nuclear deal on Wednesday, 1 October 2008, secured the
approval of the US Senate which overwhelmingly voted a bill
rejecting all the killer amendments and paving the way for its
implementation. The landmark civil nuclear cooperation agreement,
entered into between Prime Minister Manmohan Singh and US President
George W. Bush in 2005, secured 86 votes while 13 Senators voted
against it. The legislation, which has already been cleared by the
House of Representatives, will now head to the White House for Mr.
Bush signing it into a law.
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