Data showing rise in infrastructure sector output and positive
global cues helped the domestic bourses snap losses in the
preceding two trading session. The BSE Sensex rose 230.07 points or
2.36%. The barometer index breached the psychological 10,000 level
many times in intraday trade though it ended below that level.
Metal stocks rose on recovery in metal prices on the London Metal
Exchange. PSU banks rose on cut in lending rates. IT stocks rose as
a weak rupee offset fall in American depository receipts overnight.
Data showing rise in infrastructure output offset concerns of
economic slowdown triggered by productions cuts announced by
commercial vehicle makers in the last two days and steel maker JSW
Steel today and reduction in gross domestic product (GDP) forecast
for 2009 by the International Monetary Fund. India's infrastructure
sector output grew 5.1% in September 2008 from a year earlier, well
above 2.3% annual growth in August 2008, government data released
earlier in the day showed.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
European shares edged higher as commodities stocks tracked stronger
crude and metals prices and banking shares gained following
interest rate cuts in the previous session. Key benchmark indices
in France, Germany and UK were up by between 0.31% to 1.9%. The
Bank of England slashed the key interest rate by a steep 1.5% on
Thursday, 6 November 2008 and on the same day the European Central
Bank cut the key rate by 50 basis points.
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, and rate cut in
Europe triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Singapore, Hong Kong, Taiwan, rose by
between 1.034% to 3.29%. Japan's Nikkei average was down 3.55% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 100 points
at the opening bell.
The 30-share BSE Sensex was up 230.07 points or 2.36% at 9,964.29.
The index rose 331.15 points at the day's high of 10,065.37 in late
trade. The index fell 121 points at the day's low of 9,631.59 hit
in early trade.
The 50-unit S&P Nifty was up 80.35 points or 2.78% to 2,973.
The BSE clocked a turnover of Rs 3447 crore today as compared to a
turnover of Rs 4010.92 crore on 6 November 2008
The market recovered after a sharp slide in the past two trading
sessions. From the recent high of 10631.12 on 4 November 2008 the
Sensex had lost 896.90 points or 8.43% to 9734.22 on 6 November
2008. There has been a massive erosion in investors' wealth this
year. The Sensex is down 10,322.70 points or 50.88% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 11,242.48 points or 53.01% below its all-time high of
21,206.77 struck on 10 January 2008.
Nifty November 2008 futures were at 2989.10, at a premium of 16.10
points as compared to spot closing of 2973. NSE's futures & options
(F&O) segment turnover was Rs 36,963.32 crore, which was lower than
Rs 43,836.07 crore on Thursday, 6 November 2008.
The BSE Mid-cap index was up 1.11% to 3,355.38, while the BSE
Small-cap index was up 0.51% to 3,900.10. Both the indices
underperformed the Sensex.
The BSE Power index (up 4.43% to 1,777.57), the BSE Oil & Gas index
(up 3.38% to 6,013.57), the BSE Metal index (up 3.18% to 5,152.33),
the BSE PSU index (up 3.01% to 4,965.80), the BSE Realty index (up
2.72% to 2,342.82) outperformed the Sensex.
The BSE Auto index (up 0.5% to 2,661.53), the BSE HealthCare index
(up 0.54% to 2,937.11), the BSE Consumer Durables index (up 1.29%
to 2,094.87), the BSE Capital Goods index (up 1.61% to 7,635.41),
the BSE Bankex (up 1.66% to 5,532.15), the BSE IT index (up 2.01%
to 2,670.54), the BSE Teck index (up 2.16% to 2,085.84) and BSE
FMCG index (up 2.22% to 1,968.70) underperformed the Sensex.
The market breadth turned positive later in the day from earlier
weak breadth. On BSE, 1124 stocks declined while 1417 gained. 75
stocks remained unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 3.95% to Rs 1,217.85 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Reliance Communications (up 5.53% to Rs 228.15), Jaiprakash
Associates (up 4.65% to Rs 87.70) and ITC (up 3.59% to Rs 174.80)
were the major gainers from the Sensex pack.
Power stocks gained. NTPC, Tata Power Company, Reliance
Infrastructure, Reliance Power, Power Grid Corporation of India
rose by between 2.61% to 10.92%.
Metal stocks gained tracking recovery in metal prices on the London
Metal Exchange. Tata Steel, Sterlite Industries, Steel Authority of
India, Hindustan Zinc, National Aluminum Company rose by between
2.07% to 10.68%.
Indiaâ€(TM)s largest aluminum maker by sales, Hindalco Industries
spurted 6.61% on reports the company has cleared the bridge loan
taken to acquire Canada's Novelis. But steel maker JSW Steel
plunged 5.18%, on production cut plan.
Shares of iron ore exporters rose on a television report that the
railway freight rates for iron ore has been cut by 50% from 8
November to 31 December 2008. Sesa Goa rose 3.10% and NMDC gained
2.4%.
The reductions would be applicable for iron ore traffic loaded in
South Eastern, East Coast and South Western Railways and for
distances above 350 kilometer to 400 kilometer
Auto pivotals fell after commercial vehicle makers announced
production cut amid falling demand for vehicles. Ashok Leyland,
India's second-biggest commercial vehicle maker by sales, fell
4.57% on a decision to cut production at its plants to three days a
week until the end of 2008 because of falling demand for its
vehicles.
But India's largest commercial vehicle maker by sales Tata Motors
recovered from the day's low. The stock was down 0.16% to Rs
158.90, off the day's low of Rs 148. Its ADR lost 3.81% overnight
after the company on 6 November 2008 had announced closing of the
commercial vehicle plant at Jamshedpur owing to a demand slump.
The country's largest passenger car maker by sales Maruti Suzuki
fell 0.38%. The company on 1 November 2008 said its sales in
October 2008 dipped 7% at 64,490 units, against 69,415 units in the
same month last year.
Shares of the two-wheeler makers were mixed. Indiaâ€(TM)s largest
motorbike maker by sales Hero Honda Motor rose 4.15%, and TVS Motor
Company fell 1.98%. Indiaâ€(TM)s largest scooter maker by sales Bajaj
Auto was up 0.94%. Last month, reports quoted a senior executive in
Bajaj Auto, India's second biggest motorcycle maker by sales, as
saying that it could cut production in November 2008 after the
festive season.
Meanwhile, the Petroleum Secretary, R S Pandey on Thursday (6
November 2008) said the government was not considering any fuel
price cut at the moment as public sector oil marketing companies
are still incurring revenue loss on sale of various petroleum
products.
Most of the IT stocks spurted after dismal start as a weak rupee
offset slide in weak American depository receipts overnight caused
by worries the US outsourcing business will be curtailed and the
direct impact will be on IT sector after Barack Obama won the US
presidential election early this week. India's third largest IT
exporter by sales Satyam Computer Services rose 3.16% to Rs 277.75,
off the dayâ€(TM)s low of Rs 263. Its American depository receipt
(ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys rose 1.15% to
Rs 1262.50, off the dayâ€(TM)s low of Rs 1205.25 even as ADR fell
10.47%. India's fourth largest IT exporter by sales Wipro rose 2.9%
to Rs 260.45 even as ADR slipped 8.56%. The stock had slipped 6.31%
in previous trading session. India's largest IT exporter by sales
Tata Consultancy Services rose 4.87% to Rs 524.55 off dayâ€(TM)s low
of Rs 485.10. The stock had slipped 1.08% in previous trading
session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee weakened on Friday as expectations of
further foreign investor outflows from the stock market weighed on
sentiment. The partially convertible rupee was at 47.77/78 per
dollar, 0.1 % weaker than 47.66/69 at close on Thursday.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). Bank of Baroda,
Allahabad Bank, Central Bank of India, Oriental Bank of Commerce
and Corporation Bank rose by between 2.09% to 6.21%. All of them
reduced lending rates by 75 bps to 13.25% with effect from 10
November 2008.
India's largest commercial bank State Bank of India (SBI) rose
2.79% on a decision to cut the PLR by 75 basis points (bps) with
effect from 10 November 2008 and deposit rates by 25 to 50 bps
across all maturities effective 1 December 2008.
India's largest private sector bank by net profit ICICI Bank fell
0.67% as American depository receipt (ADR) lost 2.68% overnight.
ICICI Bank's chief executive K.V. Kamath said on 3 November 2008,
the bank will review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 2.64% to Rs 1,088.55 off dayâ€(TM)s low of Rs 1,032 even as ADR
slumped 4.81% on Thursday.
India's largest home loan lender by operating income HDFC jumped
2.64%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous weekâ€(TM)s
10.68% rise.
PSU OMCs rose after the Petroleum Secretary, R.S. Pandey, said, the
government is not considering any fuel price cut at the moment as
public sector oil marketing companies are still incurring revenue
loss on sale of various petroleum products. BPCL, HPCL and Indian
Oil Corporation fell by between 6.85% to 8.94%. Meanwhile, crude
oil rose from a 19-month low in New York as rising stock indexes
allayed concern about waning demand and a weaker dollar bolstered
the appeal of commodities. Oil for December delivery climbed as
much as 2.9%, to $62.50 a barrel on the New York Mercantile
Exchange.
Indiaâ€(TM)s largest state-run oil explorer by market capitalization
ONGC fell 0.29% despite reports Russia has allowed the company to
purchase London-listed Imperial Energy.
India's largest drug maker by sales Ranbaxy Laboratories rose 0.95%
recovering from earlier fall as Daiichi Sankyo Co, Japan's No. 3
drugmaker, said on Friday it had completed the takeover of Ranbaxy
Laboratories, buying a 63.9 % stake for Rs 19980 crore ($4.20
billion). Daiichi Sankyo reached an agreement with the generic
drugmaker in June 2008 to buy a stake of at least 50.1% through a
tender offer, the private placement of new shares and the purchase
of outstanding shares from the founding family.
Plethico Pharmaceuticals was locked at the upper limit of 5% on BSE
on reports the company may pick up stake in a UAE based pharma
retail chain.
Alembic galloped 12.3%on BSE, on buyback plan.
Airline stocks rose on reports Indiaâ€(TM)s two largest private
airlines, Kingfisher Airlines and Jet Airways, are likely to cut
ticket prices by up to Rs 1,000 on domestic routes by December
2008. SpiceJet, Kingfisher Airlines and Jet Airways rose by between
1.26% to 2.89%. The two carriers Kingfisher Airlines and Jet
Airways are under pressure to act, as the aviation ministry wants
them to pass on the benefits of a series of measures announced by
the government to bail out the beleaguered industry.
Last week, oil marketing companies had announced a 17% cut in
aviation turbine fuel (ATF) prices, while the government reduced
customs duty on jet fuel by 5%.
Shares of fertiliser makers extended gains after the fertiliser
minister said on Thursday, 6 November 2008, he expected gas supply
to fertiliser units to more than triple by 2011/12 from current
levels. Rashtriya Chemicals , Tata Chemicals, Chambal Fertilisers &
Chemicals, GNFC, Nagarjuna Fertilizers & Chemicals and National
Fertilizers were up by 2% to 5%.
United Phosphorus surged 3.62% after an interse transfer of shares
took place between the promoter group at 10.3% premium to the
ruling price.
Roman Tarmat rose 10%, on bagging runways upgradation order.
Suzlon Energy clocked the highest volume of 2.72 crore shares on
BSE. GVK Power & Infrastructure (2.23 crore shares), Reliance
Natural Resources (1.1 crore shares), Housing Development &
Infrastructure (87.16 lakh shares) and Tata Tele Maharashtra (79.52
lakh shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 292.84 crore
on BSE. Suzlon Energy (Rs 183.77 crore), State Bank of India (Rs
159.91 crore), Reliance Capital (Rs 151.72 crore) and ICICI Bank
(Rs 123.52 crore) were the other turnover toppers in that order.
No comments:
Post a Comment