The acquisition will cost Videocon-BPCL $165 million. The deal was signed in September last year.
Videocon Industries' 50:50 JV with BPCL-- VB (Brasil) Petroleo Private Ltd, has completed the transaction to acquire 100% stake of EnCana Brasil Petroleo Limitada , for $165 million. The JV firm has also paid an amount of $ 118 million as reimbursement of all the expenses of the Brazilian firm since January 01, 2007.
The unit was the Brazilian arm of Canadian gas producer EnCana and the Indian firms had entered into an agreement to acquire the stake in September last year with the effective date of the transaction agreed to be January 01, 2007. It marked EnCana's exit from Brazil as part of its refocus on natural gas and oil assets in North America.
EnCana Brasil's assets include ten deep water offshore petroleum exploration blocks in four basins in Brazil. Petrobras, the national oil Company of Brazil, operates three of these four basins whereas US-based Anadarko Corp is the operator in fourth basin. Out of the total 10 blocks Petrobras are operators in seven.
Videocon has been partnering public sector oil and gas firms in both India and overseas to expand its energy business. Besides its venture with BPCL, it also has domestic JV with ONGC among others in the Ravva oil and gas fields.
Most recently, it had partnered with BPCL in picking 10% stake each in an offshore oil exploration block in Mozambique. The capital outlay for the transaction was estimated at $75 million for Videocon
Friday, September 19, 2008
Europe's Stoxx 600, FTSE 100 Surge Most on Record; Banks Gain
Sept. 19 (Bloomberg) -- European stocks surged, sending the Dow Jones Stoxx 600 Index and the FTSE 100 to their biggest gains on record, after the U.S. government announced plans to halt the credit-market seizure and regulators cracked down on short sellers.
UBS AG, the European bank hardest hit by the subprime crisis, climbed 32 percent after U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke proposed removing troubled assets from the balance sheets of financial companies. Barclays Plc advanced 29 percent as the U.K.'s Financial Services Authority banned speculators from betting against financial shares until Jan. 16.
The Stoxx 600 rose the most since data for the index began in 1987, adding 8.3 percent to 278 at 4:37 p.m. in London, led by a rally in banks, insurers and basic resource companies. The FTSE 100 posted a record advance of 9.3 percent, while Russia's RTS Index jumped 22 percent after a two-day suspension and President Dmitry Medvedev's pledge of $20 billion to prop up the market.
``At the start of the week, equity investors weren't just facing a loss but an absolute loss,'' said Gary Dugan, London- based chief investment officer for Europe at Merrill Lynch Global Wealth Management, which oversees $2 trillion. ``Now what they are saying is every financial institution is virtually underwritten by this proposal to drop those assets into a life boat.''
Lehman, AIG
The Stoxx 600 still lost 0.9 percent this week after Lehman Brothers Holdings Inc. filed for bankruptcy, the U.S. government seized control of American International Group Inc. and Merrill Lynch & Co. was forced to sell itself to Bank of America Corp. More than $500 billion in credit losses and writedowns at banks have pushed the global economy toward a recession.
U.S. Treasuries and European government bonds fell today on speculation Paulson and Bernanke's plan will increase demand for stocks over bonds. The Treasury also announced a $50 billion program to insure the holdings of money-market mutual funds for a year.
The dollar rose the most in more than five months against the yen, while the cost of default protection on corporate bonds dropped by the most since the bailout of Bear Stearns Cos. in March.
National benchmark indexes climbed in all 18 western European markets. Germany's DAX jumped 5.6 percent while France's CAC 40 rose 9.3 percent, the most on record.
`Arms Around'
``This resolution will get its arms around the entire financial sector and allow them to no longer be an anchor on the rest of the economy,'' said Neil Dwane, chief investment officer for Europe at Allianz Global Investors' RCM unit, where he helps oversee $65 billion. ``For sentiment the worst could be over for financials.''
UBS added 32 percent to 21 francs. Deutsche Bank AG, Germany's largest bank, jumped 14 percent to 57.50 euros, while Credit Suisse Group, Switzerland's second-biggest bank, climbed 19 percent to 56 francs.
HBOS Plc gained 29 percent to 222.5 pence, trimming its weekly decline to 21 percent. Barclays rose 29 percent to 389 pence, leaving it with a 11 percent gain for the week. Lloyd's TSB Group Plc, the U.K.'s biggest provider of checking accounts, advanced 20 percent to 285.75 pence.
The U.K. Financial Services Authority said today its ban on short selling of financial shares will apply to 29 companies including HBOS and Barclays.
Irish Shorts
Ireland's financial regulator also banned short selling of the country's banking stocks to ``ensure the orderly conduct of the market,'' following the move by its U.K. counterpart. Bank of Ireland Plc gained 39 percent to 5.27 euros amid speculation Spain's Banco Santander SA may bid for the country's second biggest bank.
The Irish lender said today it has not received an approach or entered into discussions with Banco Santander or any other party.
Volkswagen AG was one of just 27 stocks in the Stoxx 600 to fall today. Europe's largest carmaker dropped 14 percent to 262 euros as investors decided recent gains were overdone following a 47 percent surge in the past three days.
Christian Aust, an analyst with Munich-based Unicredit, said the ``irrational levels'' that Volkswagen stock reached this week, amid a rally that included short-sellers unwinding positions in the wake of the bankruptcy of Lehman Brothers, couldn't be sustained
UBS AG, the European bank hardest hit by the subprime crisis, climbed 32 percent after U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke proposed removing troubled assets from the balance sheets of financial companies. Barclays Plc advanced 29 percent as the U.K.'s Financial Services Authority banned speculators from betting against financial shares until Jan. 16.
The Stoxx 600 rose the most since data for the index began in 1987, adding 8.3 percent to 278 at 4:37 p.m. in London, led by a rally in banks, insurers and basic resource companies. The FTSE 100 posted a record advance of 9.3 percent, while Russia's RTS Index jumped 22 percent after a two-day suspension and President Dmitry Medvedev's pledge of $20 billion to prop up the market.
``At the start of the week, equity investors weren't just facing a loss but an absolute loss,'' said Gary Dugan, London- based chief investment officer for Europe at Merrill Lynch Global Wealth Management, which oversees $2 trillion. ``Now what they are saying is every financial institution is virtually underwritten by this proposal to drop those assets into a life boat.''
Lehman, AIG
The Stoxx 600 still lost 0.9 percent this week after Lehman Brothers Holdings Inc. filed for bankruptcy, the U.S. government seized control of American International Group Inc. and Merrill Lynch & Co. was forced to sell itself to Bank of America Corp. More than $500 billion in credit losses and writedowns at banks have pushed the global economy toward a recession.
U.S. Treasuries and European government bonds fell today on speculation Paulson and Bernanke's plan will increase demand for stocks over bonds. The Treasury also announced a $50 billion program to insure the holdings of money-market mutual funds for a year.
The dollar rose the most in more than five months against the yen, while the cost of default protection on corporate bonds dropped by the most since the bailout of Bear Stearns Cos. in March.
National benchmark indexes climbed in all 18 western European markets. Germany's DAX jumped 5.6 percent while France's CAC 40 rose 9.3 percent, the most on record.
`Arms Around'
``This resolution will get its arms around the entire financial sector and allow them to no longer be an anchor on the rest of the economy,'' said Neil Dwane, chief investment officer for Europe at Allianz Global Investors' RCM unit, where he helps oversee $65 billion. ``For sentiment the worst could be over for financials.''
UBS added 32 percent to 21 francs. Deutsche Bank AG, Germany's largest bank, jumped 14 percent to 57.50 euros, while Credit Suisse Group, Switzerland's second-biggest bank, climbed 19 percent to 56 francs.
HBOS Plc gained 29 percent to 222.5 pence, trimming its weekly decline to 21 percent. Barclays rose 29 percent to 389 pence, leaving it with a 11 percent gain for the week. Lloyd's TSB Group Plc, the U.K.'s biggest provider of checking accounts, advanced 20 percent to 285.75 pence.
The U.K. Financial Services Authority said today its ban on short selling of financial shares will apply to 29 companies including HBOS and Barclays.
Irish Shorts
Ireland's financial regulator also banned short selling of the country's banking stocks to ``ensure the orderly conduct of the market,'' following the move by its U.K. counterpart. Bank of Ireland Plc gained 39 percent to 5.27 euros amid speculation Spain's Banco Santander SA may bid for the country's second biggest bank.
The Irish lender said today it has not received an approach or entered into discussions with Banco Santander or any other party.
Volkswagen AG was one of just 27 stocks in the Stoxx 600 to fall today. Europe's largest carmaker dropped 14 percent to 262 euros as investors decided recent gains were overdone following a 47 percent surge in the past three days.
Christian Aust, an analyst with Munich-based Unicredit, said the ``irrational levels'' that Volkswagen stock reached this week, amid a rally that included short-sellers unwinding positions in the wake of the bankruptcy of Lehman Brothers, couldn't be sustained
Medical Equipment Firm Opto Circuits To Acquire European Co For $100M
Healthcare equipment maker Opto Circuits has acquired an unnamed European company for over $100 million. This would be Opto's biggest overseas acquisition. Informing the BSE about its acquisition Opto said that the privately held company is involved in manufacturing medical equipments. It also said that it has signed a non binding letter of Intent (LOI) for the proposed purchase with the target company. Opto is also plannning to raise up to Rs 1,000 crore ($250 million) to fund its acquisitions and retire its debt. The company will seek shareholders approval regarding this at the AGM on September 30.
For FY08, Opto reported net profits of Rs 132.39 crore, up by 80% over revenues of Rs 468 crore. The company has several overeas acquisitions under its belt. Earlier this year it acquired US-based Criticare Systems, a non-invasive medical devices manufacturer, for $70 million. It raised a debt of $52 million for this acquisition. Opto also acquired EuroCOR GmbH of Germany, a company that designs and manufactures various kinds of stents, for around $15 million in 2005. It had also acquired patient monitoring division of Palco Labs, USA in 2003 and renamed the same as MediAid Inc.
Opto has a manufacturing & R&D facility at Electronics City, Bangalore. Opto's shares are currently trading at Rs 295, nearly half of its 52-week low of Rs 580, and has a market capitalisation of Rs 290 crore.
For FY08, Opto reported net profits of Rs 132.39 crore, up by 80% over revenues of Rs 468 crore. The company has several overeas acquisitions under its belt. Earlier this year it acquired US-based Criticare Systems, a non-invasive medical devices manufacturer, for $70 million. It raised a debt of $52 million for this acquisition. Opto also acquired EuroCOR GmbH of Germany, a company that designs and manufactures various kinds of stents, for around $15 million in 2005. It had also acquired patient monitoring division of Palco Labs, USA in 2003 and renamed the same as MediAid Inc.
Opto has a manufacturing & R&D facility at Electronics City, Bangalore. Opto's shares are currently trading at Rs 295, nearly half of its 52-week low of Rs 580, and has a market capitalisation of Rs 290 crore.
US Stocks Skyrocket on Government Rescue Plan, Ban on Short-Selling of Financials-
NEW YORK (AP) -- Wall Street extended a huge rally Friday as investors stormed back into the market, relieved that the government plans to rescue banks from billions of dollars in bad debt. The Dow Jones industrials rose more than 400 points, giving them a massive gain of more than 800 points over two days.
A new ban on short selling, or placing bets that a stock will fall, was likely adding to the market's gains. And Friday was a quarterly "quadruple witching" day, which marks the simultaneous expiration of options contracts, an event that often adds to volatility.
Treasury Secretary Henry Paulson will be speaking at 10 a.m. Eastern time about the rescue plan, which is expected to help alleviate the year-old credit crisis by removing soured real estate debt from financial institutions' books.
If a plan is put in place to help the banking industry, it could help alleviate the uncertainty that has been sending the markets into tumult over the past week. Lending has grinded to a virtual standstill in the wake of the bankruptcy of Lehman Brothers Holdings Inc. and the bailout of teetering insurer American International Group Inc.
The Federal Reserve said Friday it will expand its emergency lending and let commercial banks finance purchases of asset-backed paper from money market funds. The Fed will also buy short-term debt obligations issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
And to help calm investors' anxieties, the Treasury Department has decided to use a Depression-era fund to provide guarantees for U.S. money market mutual funds. Money market mutual funds are typically considered safe, but many investors have been fleeing them due to worries about the funds' exposure to the embattled financial industry.
To help limit the freefall in financial stocks, the Securities and Exchange Commission announced it is temporarily banning the short-selling of nearly 800 financial stocks. Short-selling is the common practice of betting against company stocks by borrowing its shares, selling them, and pocketing the difference when they fall.
"The federal government has been petitioned by Wall Street to take evasive action in the money markets, the stock and bond markets, to avoid a complete meltdown of the credit system," said Joe Battipaglia, market strategist at Stifel, Nicolaus & Co. "Once the credit system melts down, the economy falls. We can hand-ring about if this is the proper thing for the government to do, or if Wall Street pulled the panic button too soon, but that's something for the historians to sort out."
In the first minutes of trading, the Dow Jones industrial average rose 412.31, or 3.74 percent, to 11,432.00.
Broader stock indicators also surged. The Standard & Poor's 500 index rose 50.02, or 4.15 percent, to 1,256.53, and the Nasdaq composite index rose 85.82, or 3.90 percent, to 2,284.92.
A new ban on short selling, or placing bets that a stock will fall, was likely adding to the market's gains. And Friday was a quarterly "quadruple witching" day, which marks the simultaneous expiration of options contracts, an event that often adds to volatility.
Treasury Secretary Henry Paulson will be speaking at 10 a.m. Eastern time about the rescue plan, which is expected to help alleviate the year-old credit crisis by removing soured real estate debt from financial institutions' books.
If a plan is put in place to help the banking industry, it could help alleviate the uncertainty that has been sending the markets into tumult over the past week. Lending has grinded to a virtual standstill in the wake of the bankruptcy of Lehman Brothers Holdings Inc. and the bailout of teetering insurer American International Group Inc.
The Federal Reserve said Friday it will expand its emergency lending and let commercial banks finance purchases of asset-backed paper from money market funds. The Fed will also buy short-term debt obligations issued by Fannie Mae, Freddie Mac and the Federal Home Loan Banks.
And to help calm investors' anxieties, the Treasury Department has decided to use a Depression-era fund to provide guarantees for U.S. money market mutual funds. Money market mutual funds are typically considered safe, but many investors have been fleeing them due to worries about the funds' exposure to the embattled financial industry.
To help limit the freefall in financial stocks, the Securities and Exchange Commission announced it is temporarily banning the short-selling of nearly 800 financial stocks. Short-selling is the common practice of betting against company stocks by borrowing its shares, selling them, and pocketing the difference when they fall.
"The federal government has been petitioned by Wall Street to take evasive action in the money markets, the stock and bond markets, to avoid a complete meltdown of the credit system," said Joe Battipaglia, market strategist at Stifel, Nicolaus & Co. "Once the credit system melts down, the economy falls. We can hand-ring about if this is the proper thing for the government to do, or if Wall Street pulled the panic button too soon, but that's something for the historians to sort out."
In the first minutes of trading, the Dow Jones industrial average rose 412.31, or 3.74 percent, to 11,432.00.
Broader stock indicators also surged. The Standard & Poor's 500 index rose 50.02, or 4.15 percent, to 1,256.53, and the Nasdaq composite index rose 85.82, or 3.90 percent, to 2,284.92.
Sensex shuts shop above 14,000 mark, spurts over 700 point
Frenzied buying in battered index pivotals along with short
covering triggered a solid rally in the key benchmark indices
today, 19 September 2008. Markets across the globe rallied on hopes
of a more comprehensive US government approach in taming the global
credit crisis.
Strong US futures after the US market regulator securities &
exchange commission reportedly halted short-selling of financial
stocks in the US, boosted the domestic bourses in late trade.
Realty, banking and IT stocks were at the forefront of the rally.
Index heavyweight Reliance Industries (RIL) surged over 6%. The
market breadth was strong. 29 from the 30-member Sensex pack logged
gains. Satyam Computer Services and ICICI Bank spurted over 10%
each. Turnover on BSE was above Rs 6,000 crore.
The BSE 30-share Sensex jumped 726.72 points or 5.46% to 14,042.32.
The Sensex opened with a huge 448.23-point upward gap at 13,763.83.
At the day's high of 14,097.44 hit in late trade, the Sensex gained
781.84 points. At the day's low of 13,674.96, the Sensex rose
359.36 points in early trade.
The S&P CNX Nifty advanced 207.1 points or 5.13%, to settle at
4245.25. Nifty September 2008 futures were at 4283.10, at a premium
of 37.85 points as compared to spot closing.
The barometer index is down 6224.67 points or 30.78% in the
calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 7164.45 points or 33.78% below its all-time
high of 21,206.77 struck on 10 January 2008.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
Markets across the globe rallied after major central bank's infused
funds in a bid to rescue ailing financial giants. The Bank of Japan
said today it had injected two trillion yen ($19 billion) into
money markets amid continuing concerns over turmoil in financial
markets. The Japanese central bank has made emergency injections
daily for the past four days. The latest brings the total to 10
trillion yen since Tuesday, 16 September 2008. The US Federal
Reserve agreed to inject $180 billion as part of a global total of
$300 billion.
European markets, which opened after Indian markets, also joined
the global rally, boosted by a four-month ban by UK on
short-selling of financial stocks. Key benchmark indices in UK,
Germany and France were up by between 4.33% to 8.29%.
Asian markets advanced today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 4.55% and 9.61%. Battered Chinese stocks
soared 9.46% in response to an unprecedented package of government
measures to support the market.
Back home, the market breadth was strong on BSE with 1873 shares
advancing as compared to 777 that declined. 68 remained unchanged.
The BSE Mid-Cap index rose 2.95% to 5,228.78 and the BSE Small-Cap
index gained 2.31% to 6,215.99.
The total turnover on BSE amounted to Rs 6202 crore as compared to
Rs 7,376.23 crore on Thursday, 18 September 2008. NSE's futures &
options (F&O) segment turnover was Rs 73,792.36 crore, which was
lower than Rs 74,094.75 crore on Thursday, 18 September 2008.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 6.38%
to Rs 2056.25 on 16.60 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. India's fourth largest software services
exporter Satyam Computer Services galloped 10.97% to Rs 371.75 on
13.39 lakh shares. It was the top gainer from Sensex pack.
Other IT pivotals, Infosys (up 6.52% to Rs 1622.90), Wipro (up
5.09% to Rs 417.30), and TCS (up 6.94% to Rs 770.10), edged higher.
Indian IT firms count US financial services firms among their top
clients.
Battered realty stocks made a strong comeback today. India's
largest real estate developer by market capitalisation DLF galloped
7.70% to Rs 426.60 on high volumes of 31.29 lakh shares.
Ansal Infrastructure (up 18.49% to Rs 90.10), Akruti City (up
11.52% at Rs 908.20), Indiabulls Real Estate (up 17.65% to Rs
225.30), Unitech (up 3.15% to Rs 125.90), and Housing Development &
Infrastructure (up 8.08% to Rs 224.05), advanced.
The BSE Realty index surged 7.59% to 4,102.64 and was the top
gainer among the BSE sectoral indices today, after striking a
52-week low of 3,598.36 on Thursday, 18 September 2008.
India's largest private sector bank in terms of net profit ICICI
Bank surged 10.17% to Rs 634.40, after its chief executive officer
K V Kamath said the bank is an extremely healthy institution and
has ample capital. The bank had on Wednesday, 17 September 2008,
denied rumours of top management selling shares following a
sell-off in the counter.
Other banking shares HDFC Bank (up 6.22% to Rs 1298), and State
Bank of India (up 0.30% to Rs 1566), edged higher.
India's top tractor maker by sales Mahindra & Mahindra was the lone
loser from Sensex pack. The stock lost 0.10% to Rs 550.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
Telecom pivotals surged in late trade. India's top cellular
services provider by market capitalisation Bharti Airtel jumped
6.54% to Rs 810.10. In late trade, 12.23 lakh shares, or 0.06% of
company's equity changed hands in a block deal at Rs 798.50 on BSE.
India's second largest cellular services provider by market
capitalisation Reliance Communcations rose 5.63% to Rs 375.50.
Capital goods heavyweights advanced. India's largest power
equipment maker by sales Bharat Heavy Electricals surged 6.57% to
Rs 1715. Larsen & Toubro, the country's largest engineering &
construction company by sales, advanced 4.27% to Rs 2650.
India's largest oil exploration company by market capitalisation
Oil & Natural Gas Corporation soared 7.27% to Rs 1071.80 on reports
the company would invest Rs 19,338 crore in oil and gas hunt during
the current fiscal year, 10% higher than last year.
India's largest private sector aluminium maker by sales Hindalco
Industries rose 0.31% to Rs 112.80. The company's rights issue will
open on Monday, 22 September 2008.
HDFC (up 8.86% to Rs 2320), Tata Power (up 8.69% to Rs 1031), and
Jaiprakash Associates (up 6.08% to Rs 135.15) edged higher from
Sensex pack.
Reliance Capital was the top traded counter on BSE with turnover of
Rs 441 crore followed by Reliance Industries (Rs 336.25 crore),
Bharti Airtel (Rs 266 crore), ICICI Bank (Rs 229.35 crore) and
State Bank of India (Rs 197 crore), in that order.
Jaiprakash Associates topped volumes chart on BSE with volumes of
1.48 crore shares followed by Reliance Natural Resources (1.34
crore shares), IFCI (1.27 crore shares), Sesa Goa (1.13 crore
shares) and Kohinoor Broadcasting (75.66 lakh shares) in that
order. Among side counters, Reliance Capital (up 14.27% to Rs
1284), Engineers India (up 14.31% to Rs 620), and Educomp Solutions
(up 14.65% to Rs 3800), surged.
HCL Technologies spurted 8.28% to Rs 213.25 on reports the company
would go for a large $1-2 billion acquisition in the US or Europe
before 2011.
Patel Engineering jumped 3.02% to Rs 363 after the company bagged
an order worth Rs 695.57 crore from the Andhra Pradesh state
government. The company made this announcement during trading hours
today, 19 September 2008.
Phoenix Mills spurted 2.06% to Rs 146 after 20.45 lakh shares, or
1.41% the company's equity, changed hands in a block deal at Rs
151.50 each on BSE at 10:07 IST.
Videocon Industries surged 6.26% to Rs 230.95 after the company
said its overseas unit VB (Brasil) Petroleo has acquired 100% stake
in EnCana Brasil Petroleo of Brazil for consideration of $165
million. The company made this announcement during trading hours
today, 19 September 2008.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
covering triggered a solid rally in the key benchmark indices
today, 19 September 2008. Markets across the globe rallied on hopes
of a more comprehensive US government approach in taming the global
credit crisis.
Strong US futures after the US market regulator securities &
exchange commission reportedly halted short-selling of financial
stocks in the US, boosted the domestic bourses in late trade.
Realty, banking and IT stocks were at the forefront of the rally.
Index heavyweight Reliance Industries (RIL) surged over 6%. The
market breadth was strong. 29 from the 30-member Sensex pack logged
gains. Satyam Computer Services and ICICI Bank spurted over 10%
each. Turnover on BSE was above Rs 6,000 crore.
The BSE 30-share Sensex jumped 726.72 points or 5.46% to 14,042.32.
The Sensex opened with a huge 448.23-point upward gap at 13,763.83.
At the day's high of 14,097.44 hit in late trade, the Sensex gained
781.84 points. At the day's low of 13,674.96, the Sensex rose
359.36 points in early trade.
The S&P CNX Nifty advanced 207.1 points or 5.13%, to settle at
4245.25. Nifty September 2008 futures were at 4283.10, at a premium
of 37.85 points as compared to spot closing.
The barometer index is down 6224.67 points or 30.78% in the
calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 7164.45 points or 33.78% below its all-time
high of 21,206.77 struck on 10 January 2008.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
Markets across the globe rallied after major central bank's infused
funds in a bid to rescue ailing financial giants. The Bank of Japan
said today it had injected two trillion yen ($19 billion) into
money markets amid continuing concerns over turmoil in financial
markets. The Japanese central bank has made emergency injections
daily for the past four days. The latest brings the total to 10
trillion yen since Tuesday, 16 September 2008. The US Federal
Reserve agreed to inject $180 billion as part of a global total of
$300 billion.
European markets, which opened after Indian markets, also joined
the global rally, boosted by a four-month ban by UK on
short-selling of financial stocks. Key benchmark indices in UK,
Germany and France were up by between 4.33% to 8.29%.
Asian markets advanced today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 4.55% and 9.61%. Battered Chinese stocks
soared 9.46% in response to an unprecedented package of government
measures to support the market.
Back home, the market breadth was strong on BSE with 1873 shares
advancing as compared to 777 that declined. 68 remained unchanged.
The BSE Mid-Cap index rose 2.95% to 5,228.78 and the BSE Small-Cap
index gained 2.31% to 6,215.99.
The total turnover on BSE amounted to Rs 6202 crore as compared to
Rs 7,376.23 crore on Thursday, 18 September 2008. NSE's futures &
options (F&O) segment turnover was Rs 73,792.36 crore, which was
lower than Rs 74,094.75 crore on Thursday, 18 September 2008.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 6.38%
to Rs 2056.25 on 16.60 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. India's fourth largest software services
exporter Satyam Computer Services galloped 10.97% to Rs 371.75 on
13.39 lakh shares. It was the top gainer from Sensex pack.
Other IT pivotals, Infosys (up 6.52% to Rs 1622.90), Wipro (up
5.09% to Rs 417.30), and TCS (up 6.94% to Rs 770.10), edged higher.
Indian IT firms count US financial services firms among their top
clients.
Battered realty stocks made a strong comeback today. India's
largest real estate developer by market capitalisation DLF galloped
7.70% to Rs 426.60 on high volumes of 31.29 lakh shares.
Ansal Infrastructure (up 18.49% to Rs 90.10), Akruti City (up
11.52% at Rs 908.20), Indiabulls Real Estate (up 17.65% to Rs
225.30), Unitech (up 3.15% to Rs 125.90), and Housing Development &
Infrastructure (up 8.08% to Rs 224.05), advanced.
The BSE Realty index surged 7.59% to 4,102.64 and was the top
gainer among the BSE sectoral indices today, after striking a
52-week low of 3,598.36 on Thursday, 18 September 2008.
India's largest private sector bank in terms of net profit ICICI
Bank surged 10.17% to Rs 634.40, after its chief executive officer
K V Kamath said the bank is an extremely healthy institution and
has ample capital. The bank had on Wednesday, 17 September 2008,
denied rumours of top management selling shares following a
sell-off in the counter.
Other banking shares HDFC Bank (up 6.22% to Rs 1298), and State
Bank of India (up 0.30% to Rs 1566), edged higher.
India's top tractor maker by sales Mahindra & Mahindra was the lone
loser from Sensex pack. The stock lost 0.10% to Rs 550.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
Telecom pivotals surged in late trade. India's top cellular
services provider by market capitalisation Bharti Airtel jumped
6.54% to Rs 810.10. In late trade, 12.23 lakh shares, or 0.06% of
company's equity changed hands in a block deal at Rs 798.50 on BSE.
India's second largest cellular services provider by market
capitalisation Reliance Communcations rose 5.63% to Rs 375.50.
Capital goods heavyweights advanced. India's largest power
equipment maker by sales Bharat Heavy Electricals surged 6.57% to
Rs 1715. Larsen & Toubro, the country's largest engineering &
construction company by sales, advanced 4.27% to Rs 2650.
India's largest oil exploration company by market capitalisation
Oil & Natural Gas Corporation soared 7.27% to Rs 1071.80 on reports
the company would invest Rs 19,338 crore in oil and gas hunt during
the current fiscal year, 10% higher than last year.
India's largest private sector aluminium maker by sales Hindalco
Industries rose 0.31% to Rs 112.80. The company's rights issue will
open on Monday, 22 September 2008.
HDFC (up 8.86% to Rs 2320), Tata Power (up 8.69% to Rs 1031), and
Jaiprakash Associates (up 6.08% to Rs 135.15) edged higher from
Sensex pack.
Reliance Capital was the top traded counter on BSE with turnover of
Rs 441 crore followed by Reliance Industries (Rs 336.25 crore),
Bharti Airtel (Rs 266 crore), ICICI Bank (Rs 229.35 crore) and
State Bank of India (Rs 197 crore), in that order.
Jaiprakash Associates topped volumes chart on BSE with volumes of
1.48 crore shares followed by Reliance Natural Resources (1.34
crore shares), IFCI (1.27 crore shares), Sesa Goa (1.13 crore
shares) and Kohinoor Broadcasting (75.66 lakh shares) in that
order. Among side counters, Reliance Capital (up 14.27% to Rs
1284), Engineers India (up 14.31% to Rs 620), and Educomp Solutions
(up 14.65% to Rs 3800), surged.
HCL Technologies spurted 8.28% to Rs 213.25 on reports the company
would go for a large $1-2 billion acquisition in the US or Europe
before 2011.
Patel Engineering jumped 3.02% to Rs 363 after the company bagged
an order worth Rs 695.57 crore from the Andhra Pradesh state
government. The company made this announcement during trading hours
today, 19 September 2008.
Phoenix Mills spurted 2.06% to Rs 146 after 20.45 lakh shares, or
1.41% the company's equity, changed hands in a block deal at Rs
151.50 each on BSE at 10:07 IST.
Videocon Industries surged 6.26% to Rs 230.95 after the company
said its overseas unit VB (Brasil) Petroleo has acquired 100% stake
in EnCana Brasil Petroleo of Brazil for consideration of $165
million. The company made this announcement during trading hours
today, 19 September 2008.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
Post Market 19 Sep 2008 Sensex gallops above 14,000 mark in global rally
Frenzied buying in battered index pivotals along with short
covering triggered a solid rally in the key benchmark indices
today, 19 September 2008. The BSE 30-share Sensex was up 764.28
points, as per provisional closing. Markets across the globe
rallied on hopes of a more comprehensive US government approach in
taming the global credit crisis.
Strong US futures markets further boosted the domestic bourses in
late trade. Realty, banking and IT stocks were at the forefront of
the rally. Index heavyweight Reliance Industries (RIL) surged over
6%. The market breadth was strong. 29 from the 30-member Sensex
pack logged gains. Satyam Computer Services and ICICI Bank spurted
over 10% each. Turnover on BSE was above Rs 6,000 crore.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
European markets, which opened after Indian markets, also joined
the global rally, boosted by a four-month ban by UK on
short-selling of financial stocks. Key benchmark indices in UK,
Germany and France were up by between 4.33% to 8.29%.
Asian markets advanced today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 4.55% and 9.61%. Battered Chinese stocks
soared 9.46% in response to an unprecedented package of government
measures to support the market.
The BSE 30-share Sensex was up 764.28 points or 5.75% to 14,079.88,
as per provisional closing. The Sensex opened with a huge
448.23-point upward gap at 13,763.83. At the day's high of
14,097.44 hit in late trade, the Sensex gained 781.84 points. At
the day's low of 13,674.96, the Sensex rose 359.36 points in early
trade.
The S&P CNX Nifty advanced 213.45 points or 5.29% to 4,251.60 as
per provisional closing
The market breadth was strong on BSE with 1873 shares advancing as
compared to 777 that declined. 68 remained unchanged.
The total turnover on BSE amounted to Rs 6202 crore as compared to
Rs 4335 crore by 14:30 IST.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 6.38%
to Rs 2056.25 on 16.60 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. India's fourth largest software services
exporter Satyam Computer Services galloped 10.97% to Rs 371.75 on
13.39 lakh shares. It was the top gainer from Sensex pack.
Other IT pivotals, Infosys (up 6.52% to Rs 1622.90), Wipro (up
5.09% to Rs 417.30), and TCS (up 6.94% to Rs 770.10), edged higher.
Indian IT firms count US financial services firms among their top
clients.
Battered realty stocks made a strong comeback today. India's
largest real estate developer by market capitalisation DLF galloped
7.70% to Rs 426.60 on high volumes of 31.29 lakh shares.
India's largest private sector bank in terms of net profit ICICI
Bank surged 10.17% to Rs 634.40, after its chief executive officer
K V Kamath said the bank is an extremely healthy institution and
has ample capital. The bank had on Wednesday, 17 September 2008,
denied rumours of top management selling shares following a
sell-off in the counter.
Other banking shares HDFC Bank (up 6.22% to Rs 1298), and State
Bank of India (up 0.30% to Rs 1566), edged higher.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
Telecom pivotals surged in late trade. India's top cellular
services provider by market capitalisation Bharti Airtel jumped
6.54% to Rs 810.10. In late trade, 12.23 lakh shares, or 0.06% of
company's equity changed hands in a block deal at Rs 798.50 on BSE.
India's second largest cellular services provider by market
capitalisation Reliance Communcations rose 5.63% to Rs 375.50.
Capital goods heavyweights advanced. India's largest power
equipment maker by sales Bharat Heavy Electricals surged 6.57% to
Rs 1715. Larsen & Toubro, the country's largest engineering &
construction company by sales, advanced 4.27% to Rs 2650.
India's largest oil exploration company by market capitalisation
Oil & Natural Gas Corporation soared 7.27% to Rs 1071.80 on reports
the company would invest Rs 19,338 crore in oil and gas hunt during
the current fiscal year, 10% higher than last year.
HDFC (up 8.86% to Rs 2320), Tata Power (up 8.69% to Rs 1031), and
Jaiprakash Associates (up 6.08% to Rs 135.15) edged higher from
Sensex pack.
Among side counters, Ansal Infrastructure (up 18.49% to Rs 90.10),
Indiabulls Real Estate (up 17.65% to Rs 225.30), Reliance Capital
(up 14.27% to Rs 1284), Engineers India (up 14.31% to Rs 620), and
Educomp Solutions (up 14.65% to Rs 3800), surged.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
Short covering in index heavyweights towards the fag end of the
session had helped key benchmark indices post small gains on
Thursday, 18 September 2008 after a dismal start. The BSE 30-share
Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P
CNX Nifty rose 29.90 points or 0.75% at 4038.15.
covering triggered a solid rally in the key benchmark indices
today, 19 September 2008. The BSE 30-share Sensex was up 764.28
points, as per provisional closing. Markets across the globe
rallied on hopes of a more comprehensive US government approach in
taming the global credit crisis.
Strong US futures markets further boosted the domestic bourses in
late trade. Realty, banking and IT stocks were at the forefront of
the rally. Index heavyweight Reliance Industries (RIL) surged over
6%. The market breadth was strong. 29 from the 30-member Sensex
pack logged gains. Satyam Computer Services and ICICI Bank spurted
over 10% each. Turnover on BSE was above Rs 6,000 crore.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
European markets, which opened after Indian markets, also joined
the global rally, boosted by a four-month ban by UK on
short-selling of financial stocks. Key benchmark indices in UK,
Germany and France were up by between 4.33% to 8.29%.
Asian markets advanced today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 4.55% and 9.61%. Battered Chinese stocks
soared 9.46% in response to an unprecedented package of government
measures to support the market.
The BSE 30-share Sensex was up 764.28 points or 5.75% to 14,079.88,
as per provisional closing. The Sensex opened with a huge
448.23-point upward gap at 13,763.83. At the day's high of
14,097.44 hit in late trade, the Sensex gained 781.84 points. At
the day's low of 13,674.96, the Sensex rose 359.36 points in early
trade.
The S&P CNX Nifty advanced 213.45 points or 5.29% to 4,251.60 as
per provisional closing
The market breadth was strong on BSE with 1873 shares advancing as
compared to 777 that declined. 68 remained unchanged.
The total turnover on BSE amounted to Rs 6202 crore as compared to
Rs 4335 crore by 14:30 IST.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 6.38%
to Rs 2056.25 on 16.60 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. India's fourth largest software services
exporter Satyam Computer Services galloped 10.97% to Rs 371.75 on
13.39 lakh shares. It was the top gainer from Sensex pack.
Other IT pivotals, Infosys (up 6.52% to Rs 1622.90), Wipro (up
5.09% to Rs 417.30), and TCS (up 6.94% to Rs 770.10), edged higher.
Indian IT firms count US financial services firms among their top
clients.
Battered realty stocks made a strong comeback today. India's
largest real estate developer by market capitalisation DLF galloped
7.70% to Rs 426.60 on high volumes of 31.29 lakh shares.
India's largest private sector bank in terms of net profit ICICI
Bank surged 10.17% to Rs 634.40, after its chief executive officer
K V Kamath said the bank is an extremely healthy institution and
has ample capital. The bank had on Wednesday, 17 September 2008,
denied rumours of top management selling shares following a
sell-off in the counter.
Other banking shares HDFC Bank (up 6.22% to Rs 1298), and State
Bank of India (up 0.30% to Rs 1566), edged higher.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
Telecom pivotals surged in late trade. India's top cellular
services provider by market capitalisation Bharti Airtel jumped
6.54% to Rs 810.10. In late trade, 12.23 lakh shares, or 0.06% of
company's equity changed hands in a block deal at Rs 798.50 on BSE.
India's second largest cellular services provider by market
capitalisation Reliance Communcations rose 5.63% to Rs 375.50.
Capital goods heavyweights advanced. India's largest power
equipment maker by sales Bharat Heavy Electricals surged 6.57% to
Rs 1715. Larsen & Toubro, the country's largest engineering &
construction company by sales, advanced 4.27% to Rs 2650.
India's largest oil exploration company by market capitalisation
Oil & Natural Gas Corporation soared 7.27% to Rs 1071.80 on reports
the company would invest Rs 19,338 crore in oil and gas hunt during
the current fiscal year, 10% higher than last year.
HDFC (up 8.86% to Rs 2320), Tata Power (up 8.69% to Rs 1031), and
Jaiprakash Associates (up 6.08% to Rs 135.15) edged higher from
Sensex pack.
Among side counters, Ansal Infrastructure (up 18.49% to Rs 90.10),
Indiabulls Real Estate (up 17.65% to Rs 225.30), Reliance Capital
(up 14.27% to Rs 1284), Engineers India (up 14.31% to Rs 620), and
Educomp Solutions (up 14.65% to Rs 3800), surged.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
Short covering in index heavyweights towards the fag end of the
session had helped key benchmark indices post small gains on
Thursday, 18 September 2008 after a dismal start. The BSE 30-share
Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P
CNX Nifty rose 29.90 points or 0.75% at 4038.15.
RIL breaches Rs 2000 level
Key benchmark indices surged to day's high in early afternoon trade
led by Index heavyweight Reliance Industries (RIL) which moved past
Rs 2,000 level. The BSE 30-share Sensex was up 556.66 points.
Realty shares made a comeback after recent slide. The market
breadth was strong. All the 30-members from Sensex pack were in
green. Markets across the globe rallied on hopes of a more
comprehensive US government approach in taming the global credit
crisis.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
At 12:25 IST, the BSE 30-share Sensex was up 556.66 points or 4.13%
to 13,865.95. The Sensex opened with a huge 448.23-point upward gap
at 13,763.83. At the day's high of 13,877.85 hit in early afternoon
trade, the Sensex gained 562.25 points. At the day's low of
13,674.96, the Sensex rose 359.36 points in early trade.
The S&P CNX Nifty advanced 155.60 points or 3.85% to 4,193.75
Asian markets rallied today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 3.76 and 9.46%.
Back home, the market breadth was strong on BSE with 1721 shares
advancing as compared to 635 that declined. 65 remained unchanged.
The BSE Mid-Cap index rose 2.49% to 5,205.46 and BSE Small-Cap
index gained 2.06% to 6,200.63.
The total turnover on BSE amounted to Rs 2353 crore by 12:30 IST as
compared to Rs 1535 crore by 11:30 IST.
All the 30-members from Sensex pack were in green.
Recently battered realty stocks made a strong comeback with the BSE
Realty index surging 5.30% to 4,015.35. It was the top gainer among
the sectoral indices on BSE. The BSE Realty index had struck a
52-week low of 3,598.36 on Thursday, 18 September 2008.
DLF (up 5.34% to Rs 417.25), Unitech (up 3.36% to Rs 126.15), Anant
Raj Industries (up 2.20% to Rs 110), Indiabulls Real Estate (up
12.01% to Rs 214.50), and Housing Development & Infrastructure (up
5.35% to Rs 218.40), advanced.
Banking and financial shares vaulted despite latest data showing
rise in inflation. India's largest dedicated housing finance
company by total revenue Housing Development Finance Corporation
surged 7.84% to Rs 2298.25 on 2.08 shares. It was the top gainer
from Sensex pack.
India's largest private sector bank in terms of net profit ICICI
Bank rose 4.81% to Rs 603.55. The bank on Wednesday, 17 September
2008 denied rumours of top management selling shares over the last
few days.
Other banking shares HDFC Bank (up 5.44% to Rs 1288.50), and State
Bank of India (up 1.45% to Rs 1584.05), edged higher.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. Infosys (up 5.46% to Rs 1606.70), Wipro (up
4.76% to Rs 416), Satyam Computer Services (up 6.57% to Rs 357),
and TCS (up 4.92% to Rs 755.50), edged higher. Indian IT firms
count the US financial services firms among their top clients
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 3.75%
to Rs 2006.55 on 6.70 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
Reliance Infrastructure (up 4.43% to Rs 887.25), Bharti Airtel (up
5.64% to Rs 803.20), and Reliance Communications (up 4.44% to Rs
371.10), edged higher from Sensex pack.
Phoenix Mills spurted 8.70% to Rs 155.50 after 20.45 lakh shares,
or 1.41% the company's equity, changed hands in a block deal at Rs
151.50 each on BSE at 10:07 IST.
Natco Pharma gained 2.36% to Rs 71.45 after the company said it has
launched its nano technology drug Albupax, which is used for the
treatment of breast cancer. The company made this announcement
during trading hours today, 19 September 2008.
Videocon Industries surged 4.90% to Rs 228 after the company said
its overseas unit VB (Brasil) Petroleo has acquired 100% stake in
EnCana Brasil Petroleo of Brazil for consideration of $165 million.
The company made this announcement during trading hours today, 19
September 2008.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
Short covering in index heavyweights towards the fag end of the
session had helped key benchmark indices post small gains on
Thursday, 18 September 2008 after a dismal start. The BSE 30-share
Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P
CNX Nifty rose 29.90 points or 0.75% at 4038.15.
led by Index heavyweight Reliance Industries (RIL) which moved past
Rs 2,000 level. The BSE 30-share Sensex was up 556.66 points.
Realty shares made a comeback after recent slide. The market
breadth was strong. All the 30-members from Sensex pack were in
green. Markets across the globe rallied on hopes of a more
comprehensive US government approach in taming the global credit
crisis.
US markets on Thursday, 18 September 2008, recorded biggest one-day
percentage gain since October 2002 after the US Treasury Secretary
Henry Paulson proposed to congressional lawmakers a proposal to
create an entity to deal with the billions of dollars of bad debt
still choking the financial system. The Dow Jones industrial
average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500
index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq
Composite index surged 100.25 points, or 4.78%, to 2,199.10.
At 12:25 IST, the BSE 30-share Sensex was up 556.66 points or 4.13%
to 13,865.95. The Sensex opened with a huge 448.23-point upward gap
at 13,763.83. At the day's high of 13,877.85 hit in early afternoon
trade, the Sensex gained 562.25 points. At the day's low of
13,674.96, the Sensex rose 359.36 points in early trade.
The S&P CNX Nifty advanced 155.60 points or 3.85% to 4,193.75
Asian markets rallied today, 19 September 2008. Key benchmark
indices in China, Hong Kong, Singapore, Japan, Taiwan, and South
Korea were up by between 3.76 and 9.46%.
Back home, the market breadth was strong on BSE with 1721 shares
advancing as compared to 635 that declined. 65 remained unchanged.
The BSE Mid-Cap index rose 2.49% to 5,205.46 and BSE Small-Cap
index gained 2.06% to 6,200.63.
The total turnover on BSE amounted to Rs 2353 crore by 12:30 IST as
compared to Rs 1535 crore by 11:30 IST.
All the 30-members from Sensex pack were in green.
Recently battered realty stocks made a strong comeback with the BSE
Realty index surging 5.30% to 4,015.35. It was the top gainer among
the sectoral indices on BSE. The BSE Realty index had struck a
52-week low of 3,598.36 on Thursday, 18 September 2008.
DLF (up 5.34% to Rs 417.25), Unitech (up 3.36% to Rs 126.15), Anant
Raj Industries (up 2.20% to Rs 110), Indiabulls Real Estate (up
12.01% to Rs 214.50), and Housing Development & Infrastructure (up
5.35% to Rs 218.40), advanced.
Banking and financial shares vaulted despite latest data showing
rise in inflation. India's largest dedicated housing finance
company by total revenue Housing Development Finance Corporation
surged 7.84% to Rs 2298.25 on 2.08 shares. It was the top gainer
from Sensex pack.
India's largest private sector bank in terms of net profit ICICI
Bank rose 4.81% to Rs 603.55. The bank on Wednesday, 17 September
2008 denied rumours of top management selling shares over the last
few days.
Other banking shares HDFC Bank (up 5.44% to Rs 1288.50), and State
Bank of India (up 1.45% to Rs 1584.05), edged higher.
The wholesale price index rose 12.14% in the 12 months to 6
September 2008, marginally above the previous week's rise of
12.10%, data released after market hours on Thursday, 18 September
2008 showed.
IT pivotals rallied on fresh buying on hopes of a solution to the
US financial crisis. Infosys (up 5.46% to Rs 1606.70), Wipro (up
4.76% to Rs 416), Satyam Computer Services (up 6.57% to Rs 357),
and TCS (up 4.92% to Rs 755.50), edged higher. Indian IT firms
count the US financial services firms among their top clients
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries advanced 3.75%
to Rs 2006.55 on 6.70 lakh shares. The stock had hit a 52-week low
of Rs 1764 yesterday, 18 September 2008. The company has reportedly
struck gas at eight more locations in the Krishna-Godavari basin,
which it intends to develop at an approximate cost of $3 billion.
Reliance Infrastructure (up 4.43% to Rs 887.25), Bharti Airtel (up
5.64% to Rs 803.20), and Reliance Communications (up 4.44% to Rs
371.10), edged higher from Sensex pack.
Phoenix Mills spurted 8.70% to Rs 155.50 after 20.45 lakh shares,
or 1.41% the company's equity, changed hands in a block deal at Rs
151.50 each on BSE at 10:07 IST.
Natco Pharma gained 2.36% to Rs 71.45 after the company said it has
launched its nano technology drug Albupax, which is used for the
treatment of breast cancer. The company made this announcement
during trading hours today, 19 September 2008.
Videocon Industries surged 4.90% to Rs 228 after the company said
its overseas unit VB (Brasil) Petroleo has acquired 100% stake in
EnCana Brasil Petroleo of Brazil for consideration of $165 million.
The company made this announcement during trading hours today, 19
September 2008.
Light, sweet crude for October 2008 delivery added 72 cents to
settle at $97.88 a barrel on Thursday, 18 September 2008 on the New
York Mercantile Exchange.
Short covering in index heavyweights towards the fag end of the
session had helped key benchmark indices post small gains on
Thursday, 18 September 2008 after a dismal start. The BSE 30-share
Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P
CNX Nifty rose 29.90 points or 0.75% at 4038.15.
Pre Market Report 19/09/2008
A rally across the globe on hopes for a more comprehensive US government approach in taming the global credit crisis is likely to propel key benchmark indices today, 19 September 2008. However latest data showing rise in inflation may dampen the sentiment.
The wholesale price index rose 12.14% in the 12 months to 6 September 2008, marginally above the previous week's rise of 12.10%, data released after market hours on Thursday, 18 September 2008 showed.
Light, sweet crude for October 2008 delivery added 72 cents to settle at $97.88 a barrel on Thursday, 18 September 2008 on the New York Mercantile Exchange.
Meanwhile, speaking on the financial crisis, the US President George W Bush defended the government's actions over the last few days and said that the market may take a while to normalize. George W Bush added that in recent weeks the Federal Government has taken extraordinary measures to address the challenges confronting financial markets.
Asian markets rallied today, 19 September 2008. China's Shanghai Composite gained 9.40% or 178.14 points at 2,073.97, Hong Kong's Hang Seng was up 6.13% or 1081.39 points at 18,713.85, Japan's Nikkei rose 3.30% or 378.90 points at 11,868.20, Singapore's Straits Times advanced 4.01% or 97.10 points at 2,516.31, South Korea's Seoul Composite surged 4.60% or 63.99 points at 1,456.41, and Taiwan's Taiwan Weighted added 5.40% or 304.58 points at 5,946.53.
US markets recorded biggest one-day percentage gain since October 2002 after the US Treasury Secretary Henry Paulson proposed to congressional lawmakers that would create an entity to deal with the billions of dollars of bad debt still choking the financial system. The Dow Jones industrial average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500 index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq Composite index surged 100.25 points, or 4.78%, to 2,199.10.
Back home, short covering in index heavyweights towards the fag end of the session helped key benchmark indices post small gains on Thursday, 18 September 2008 after a dismal start. The BSE 30-share Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P CNX Nifty rose 29.90 points or 0.75% at 4038.15.
The BSE Sensex had lost 1682.07 points or 11.25% in seven consecutive trading sessions from a recent high of 14,944.97 on 8 September 2008 to 13,262.90 on Wednesday, 17 September 2008.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 1201.64 crore while mutual funds bought shares worth Rs 1192.20 crore on Thursday, 18 September 2008, according to provisional data on NSE.
FIIs were net buyers of Rs 995.58 crore in the futures & options segment on Thursday, 18 September 2008. They were net buyers of index futures to the tune of Rs 511.58 crore and bought index options worth Rs 461.71 crore. They were net buyers of stock futures to the tune of Rs 44.20 crore and sold stock options worth Rs 21.91 crore.
The wholesale price index rose 12.14% in the 12 months to 6 September 2008, marginally above the previous week's rise of 12.10%, data released after market hours on Thursday, 18 September 2008 showed.
Light, sweet crude for October 2008 delivery added 72 cents to settle at $97.88 a barrel on Thursday, 18 September 2008 on the New York Mercantile Exchange.
Meanwhile, speaking on the financial crisis, the US President George W Bush defended the government's actions over the last few days and said that the market may take a while to normalize. George W Bush added that in recent weeks the Federal Government has taken extraordinary measures to address the challenges confronting financial markets.
Asian markets rallied today, 19 September 2008. China's Shanghai Composite gained 9.40% or 178.14 points at 2,073.97, Hong Kong's Hang Seng was up 6.13% or 1081.39 points at 18,713.85, Japan's Nikkei rose 3.30% or 378.90 points at 11,868.20, Singapore's Straits Times advanced 4.01% or 97.10 points at 2,516.31, South Korea's Seoul Composite surged 4.60% or 63.99 points at 1,456.41, and Taiwan's Taiwan Weighted added 5.40% or 304.58 points at 5,946.53.
US markets recorded biggest one-day percentage gain since October 2002 after the US Treasury Secretary Henry Paulson proposed to congressional lawmakers that would create an entity to deal with the billions of dollars of bad debt still choking the financial system. The Dow Jones industrial average jumped 410.03 points, or 3.86%, to 11,019.69. The S&P 500 index advanced 50.12 points, or 4.33%, to 1,206.51, and the Nasdaq Composite index surged 100.25 points, or 4.78%, to 2,199.10.
Back home, short covering in index heavyweights towards the fag end of the session helped key benchmark indices post small gains on Thursday, 18 September 2008 after a dismal start. The BSE 30-share Sensex rose 52.70 points or 0.4%, to close at 13,315.60 and the S&P CNX Nifty rose 29.90 points or 0.75% at 4038.15.
The BSE Sensex had lost 1682.07 points or 11.25% in seven consecutive trading sessions from a recent high of 14,944.97 on 8 September 2008 to 13,262.90 on Wednesday, 17 September 2008.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 1201.64 crore while mutual funds bought shares worth Rs 1192.20 crore on Thursday, 18 September 2008, according to provisional data on NSE.
FIIs were net buyers of Rs 995.58 crore in the futures & options segment on Thursday, 18 September 2008. They were net buyers of index futures to the tune of Rs 511.58 crore and bought index options worth Rs 461.71 crore. They were net buyers of stock futures to the tune of Rs 44.20 crore and sold stock options worth Rs 21.91 crore.
Thursday, September 18, 2008
Post-Market Report September 18, 2008
An across-the-board rally saw the market bounce back sharply from its early losses of more than 700 points to end 52 points higher.
Today the market saw a smart rally despite weakness in global markets. Despite slipping over 700 points in early trades, the Sensex witnessed a relief rally led by across-the-spectrum buying.
The index recovered from its lows and closed posstive, as value buying emerged at lower levels. The Sensex received major support from banking, oil & gas and power stocks. The market gathered steam towards the close and the Sensex crossed the mark of 13,300 and touched the day's high of 13,347 before closing at 13,263, up 53 points. The Nifty too bounced back sharply and advanced 30 points to close at 4,038.
Movers & Shakers
Pratibha Industries lost despite receiving orders worth Rs156 crore from Delhi Jal Board.
The breadth of the market was extremely negative, as of the 2,690 stocks traded on the BSE, where only 676 stocks advanced, 1,944 stocks declines. 70 stocks ended unchanged. Most of the sectoral indices closed with significant gains. The BSE Bankex was the major gainer and soared 2.68% followed by the BSE Oil & Gas index (up 2.36%) and the BSE CG index (up 0.95%). However, the BSE Realty and BSE CD index slipped over 4% each. The BSE IT index, BSE Teck index, BSE HC index and the BSE Metal index closed with marginal losses.
Attracting strong buying support, Sterlite Industries surged by 3.43% at Rs454.50, HDFC Bank shot up by 3.17% at Rs1,222, Reliance Industries jumped by 3.16% at Rs1,932.85, NTPC advanced by 3.05% at Rs174, ICICI Bank scaled up 2.78% at Rs575.85, Maruti Suzuki India zoomed 2.70% at Rs718.45, Mahindra & Mahindra added 2.46% at Rs550.55, Reliance Infrastructure vaulted by 2.43% at Rs849.60, ONGC firmed up by 2.14% at Rs999.15 and ACC climbed 2.02% at Rs601.35. Among the laggards, Ranbaxy Laboratories slipped 10.06% at Rs340.95, Jaiprakash Associates shed 6.73% at Rs127.40, Satyam Computer Services declined by 4.16% at Rs335, while Infosys Technologies, Tata Steel, DLF, Tata Power and HDFC fell 1-4% each.
Banking stocks witnessed sustained buying support. Indian Overseas Bank soared 7.49% at Rs110.45, Bank of Baroda added 5.80% at Rs327.35, Kotak Bank scaled up by 4.72% at Rs579.45 and Punjab National Bank gained 4.38% at Rs517.
Over 1.97 crore shares of Reliance Natural Resources changed hands on the BSE followed by IFCI (1.34 crore shares), S Kumars (1.33 crore shares), KS Oils (1.20 crore shares) and Jaiprakash Associates (1.10 crore shares).
Today the market saw a smart rally despite weakness in global markets. Despite slipping over 700 points in early trades, the Sensex witnessed a relief rally led by across-the-spectrum buying.
The index recovered from its lows and closed posstive, as value buying emerged at lower levels. The Sensex received major support from banking, oil & gas and power stocks. The market gathered steam towards the close and the Sensex crossed the mark of 13,300 and touched the day's high of 13,347 before closing at 13,263, up 53 points. The Nifty too bounced back sharply and advanced 30 points to close at 4,038.
Movers & Shakers
Pratibha Industries lost despite receiving orders worth Rs156 crore from Delhi Jal Board.
The breadth of the market was extremely negative, as of the 2,690 stocks traded on the BSE, where only 676 stocks advanced, 1,944 stocks declines. 70 stocks ended unchanged. Most of the sectoral indices closed with significant gains. The BSE Bankex was the major gainer and soared 2.68% followed by the BSE Oil & Gas index (up 2.36%) and the BSE CG index (up 0.95%). However, the BSE Realty and BSE CD index slipped over 4% each. The BSE IT index, BSE Teck index, BSE HC index and the BSE Metal index closed with marginal losses.
Attracting strong buying support, Sterlite Industries surged by 3.43% at Rs454.50, HDFC Bank shot up by 3.17% at Rs1,222, Reliance Industries jumped by 3.16% at Rs1,932.85, NTPC advanced by 3.05% at Rs174, ICICI Bank scaled up 2.78% at Rs575.85, Maruti Suzuki India zoomed 2.70% at Rs718.45, Mahindra & Mahindra added 2.46% at Rs550.55, Reliance Infrastructure vaulted by 2.43% at Rs849.60, ONGC firmed up by 2.14% at Rs999.15 and ACC climbed 2.02% at Rs601.35. Among the laggards, Ranbaxy Laboratories slipped 10.06% at Rs340.95, Jaiprakash Associates shed 6.73% at Rs127.40, Satyam Computer Services declined by 4.16% at Rs335, while Infosys Technologies, Tata Steel, DLF, Tata Power and HDFC fell 1-4% each.
Banking stocks witnessed sustained buying support. Indian Overseas Bank soared 7.49% at Rs110.45, Bank of Baroda added 5.80% at Rs327.35, Kotak Bank scaled up by 4.72% at Rs579.45 and Punjab National Bank gained 4.38% at Rs517.
Over 1.97 crore shares of Reliance Natural Resources changed hands on the BSE followed by IFCI (1.34 crore shares), S Kumars (1.33 crore shares), KS Oils (1.20 crore shares) and Jaiprakash Associates (1.10 crore shares).
US Market still in negetive @ 10PM IST
Dow 10,596.39 -13.27 -0.13%
Nasdaq 2,088.76 -10.09 -0.48%
S&P 500 1,150.24 -6.15 -0.53%
Nasdaq 2,088.76 -10.09 -0.48%
S&P 500 1,150.24 -6.15 -0.53%
Financial strains ease but Street remains cautious
NEW YORK (AP) -- Financial markets appeared less strained Thursday, but investors were still nervous, seeking safe investments like gold and Treasury bills and showing some reluctance to return to stocks.
The modest moves in stocks were a welcome sign, though the advances the Dow Jones industrial average showed at times did little to offset the 800-point decline the blue chips had logged over the first three sessions this week.
Investors appeared somewhat relieved after the Federal Reserve and other major central banks around the world on Thursday acted in concert to inject as much as $180 billion into global money markets, an attempt to keep the credit crisis from worsening. The Fed added another $55 billion in overnight loans Thursday.
Market participants still appear to be treading carefully to determine how to proceed in what is looking to be the most troubling period for the world's financial system in most investors' memory.
Grinding gears in the world's credit markets have driven up the cost of borrowing for businesses, while investors are also contending with fears that more big-name financial companies could falter. The fear in the markets had led to speculation about the future of such major players as thrift bank Washington Mutual Inc. and investment bank Morgan Stanley. Media reports have been saying that Wells Fargo & Co. and Citigroup Inc. are interested in a possible takeover of Washington Mutual; and a person familiar with the negotiations said Morgan Stanley and Wachovia Corp. are in talks about a possible combination. He spoke on condition of anonmyity because the talks are ongoing.
"We are in uncharted territory," said Linda Duessel, the equity market strategist at Federated Investors. "The seriousness and the size of this fallout has been underestimated from the beginning. It's most disconcerting what's going on in the credit market."
In late morning trading, the Dow Jones industrial average rose 21.01, or 0.20 percent, to 10,630.67.
Broader stock indicators were mixed. The Standard & Poor's 500 index rose 1.03, or 0.09 percent, to 1,155.36, and the Nasdaq composite index slipped 5.01, or 0.24 percent, to 2,093.84.
Monday's 504-point loss in the Dow was its biggest drop since the drop following the September 2001 terror attacks. The blue-chip index is now about 24 percent below its Oct. 9, 2007, record close of 14,164.53.
On Wednesday, the 3-month Treasury bill -- considered one of the safest short-duration assets -- saw demand surge so high that its yield briefly dipped into negative territory for the first time since 1940. Investors are so focused on parking their money in safe assets that they're willing to take very little return on such investments.
The prices for short-duration Treasurys fell from Wednesday's levels. But the yield on the 3-month T-bill was still extremely low at 0.19 percent -- up from 0.2 percent late Wednesday, but well below its yield of 1.60 percent just a week ago.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.44 percent in early Thursday trading from 3.42 percent late Wednesday.
Gold, another safe haven, rose further on Thursday, after posting their largest one-day price jump ever on Wednesday.
Oil is not considered as safe as gold but it, too, has been drawing investors who deem it safer than stocks. Light, sweet crude on the New York Mercantile Exchange rose 55 cents to $97.71 a barrel, after jumping more than $6 a barrel Wednesday.
The dollar fell against most other major currencies.
In economic data, the Labor Department reported that initial claims for unemployment benefits rose by 10,000 last week to 455,000, due primarily to Louisiana's job losses from Hurricane Gustav.
The Philadelphia Fed said its regional manufacturing report improved to a 3.8 in September from a negative 12.7 in August. It marks the first positive reading since November.
In earnings news, FedEx Inc. posted a 22 percent decline in quarterly earnings, as the package delivery company cut costs to offset slowing global growth. The fiscal first-quarter results came in as expected. The stock fell $1.19 to $86.88.
Overseas, Japan's Nikkei stock average dropped 2.22 percent to its lowest closing level in over three years. Hong Kong's Hang Seng index lost 0.03 percent.
In afternoon trading, Britain's FTSE 100 rose 0.81 percent, Germany's DAX index rose 1.13 percent, and France's CAC-40 fell 0.64 percent.
The modest moves in stocks were a welcome sign, though the advances the Dow Jones industrial average showed at times did little to offset the 800-point decline the blue chips had logged over the first three sessions this week.
Investors appeared somewhat relieved after the Federal Reserve and other major central banks around the world on Thursday acted in concert to inject as much as $180 billion into global money markets, an attempt to keep the credit crisis from worsening. The Fed added another $55 billion in overnight loans Thursday.
Market participants still appear to be treading carefully to determine how to proceed in what is looking to be the most troubling period for the world's financial system in most investors' memory.
Grinding gears in the world's credit markets have driven up the cost of borrowing for businesses, while investors are also contending with fears that more big-name financial companies could falter. The fear in the markets had led to speculation about the future of such major players as thrift bank Washington Mutual Inc. and investment bank Morgan Stanley. Media reports have been saying that Wells Fargo & Co. and Citigroup Inc. are interested in a possible takeover of Washington Mutual; and a person familiar with the negotiations said Morgan Stanley and Wachovia Corp. are in talks about a possible combination. He spoke on condition of anonmyity because the talks are ongoing.
"We are in uncharted territory," said Linda Duessel, the equity market strategist at Federated Investors. "The seriousness and the size of this fallout has been underestimated from the beginning. It's most disconcerting what's going on in the credit market."
In late morning trading, the Dow Jones industrial average rose 21.01, or 0.20 percent, to 10,630.67.
Broader stock indicators were mixed. The Standard & Poor's 500 index rose 1.03, or 0.09 percent, to 1,155.36, and the Nasdaq composite index slipped 5.01, or 0.24 percent, to 2,093.84.
Monday's 504-point loss in the Dow was its biggest drop since the drop following the September 2001 terror attacks. The blue-chip index is now about 24 percent below its Oct. 9, 2007, record close of 14,164.53.
On Wednesday, the 3-month Treasury bill -- considered one of the safest short-duration assets -- saw demand surge so high that its yield briefly dipped into negative territory for the first time since 1940. Investors are so focused on parking their money in safe assets that they're willing to take very little return on such investments.
The prices for short-duration Treasurys fell from Wednesday's levels. But the yield on the 3-month T-bill was still extremely low at 0.19 percent -- up from 0.2 percent late Wednesday, but well below its yield of 1.60 percent just a week ago.
The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.44 percent in early Thursday trading from 3.42 percent late Wednesday.
Gold, another safe haven, rose further on Thursday, after posting their largest one-day price jump ever on Wednesday.
Oil is not considered as safe as gold but it, too, has been drawing investors who deem it safer than stocks. Light, sweet crude on the New York Mercantile Exchange rose 55 cents to $97.71 a barrel, after jumping more than $6 a barrel Wednesday.
The dollar fell against most other major currencies.
In economic data, the Labor Department reported that initial claims for unemployment benefits rose by 10,000 last week to 455,000, due primarily to Louisiana's job losses from Hurricane Gustav.
The Philadelphia Fed said its regional manufacturing report improved to a 3.8 in September from a negative 12.7 in August. It marks the first positive reading since November.
In earnings news, FedEx Inc. posted a 22 percent decline in quarterly earnings, as the package delivery company cut costs to offset slowing global growth. The fiscal first-quarter results came in as expected. The stock fell $1.19 to $86.88.
Overseas, Japan's Nikkei stock average dropped 2.22 percent to its lowest closing level in over three years. Hong Kong's Hang Seng index lost 0.03 percent.
In afternoon trading, Britain's FTSE 100 rose 0.81 percent, Germany's DAX index rose 1.13 percent, and France's CAC-40 fell 0.64 percent.
Morgan Stanley seeks deal with Wachovia
NEW YORK (AP) -- Morgan Stanley's stock price plunged again Thursday as the investment bank scrambled to strike a major deal or raise more cash that will assuage investors and prevent more damage to its free-falling shares.
John Mack, the No. 2 U.S. investment bank's chief executive, has reached out to China's Citic Group overnight about a possible investment, according to a person familiar with the talks. Morgan Stanley is also considering a combination with retail bank Wachovia Corp. and an investment from Singapore Investment Corp., one of the world's biggest sovereign wealth funds, said the person, who spoke on the condition of anonymity because the discussions were still ongoing,
Morgan Stanley shares have fallen 38 percent in the past week amid unprecedented turmoil in the global banking system. Investors remain anxious after Lehman Brothers filed for bankruptcy protection, Merrill Lynch & Co. was forced into a sale to Bank of America Corp. and the federal government bailed out insurer American International Group.
Mack made telephone calls late Wednesday to Wachovia executives and also to Citigroup Inc. CEO Vikram Pandit, exploring all options to help restore confidence in the investment house, the person said. Citigroup was not interested in a tie-up, but talks remain ongoing with Wachovia, he said.
Wachovia declined to comment about a potential deal, while Citigroup confirmed that Mack and Pandit spoke.
Spokesmen for GIC and Citic could not immediately be reached for comment.
Mack isn't the only CEO looking to strike some kind of a deal or capital infusion. Washington Mutual Inc., which has lost billions and seen its shares plummet due to subprime mortgage exposure, is selling itself or looking for a deep-pocketed investor.
And overnight in London, Britain's Lloyds TSB Lloyds TSB announced a $21.85-billion deal to take over struggling HBOS PLC, Britain's biggest mortgage lender.
The U.S. government, which helped organize an $85 billion bailout of insurer AIG on Tuesday, also sought to break the grip of worsening global credit crisis by pumping billions into financial markets in a concerted action with central banks of other countries. The Federal Reserve Bank of New York, in two operations, injected $55 billion into temporary reserves in the United States, a move aimed to help ease a strained financial system in danger of freezing up.
The move helped steady Wall Street after the previous session's massive rout. However, market participants still moved into safe assets such as gold and Treasury bills, a sign that they remain skittish during the most troubling period for the world's financial system in most investors' memory.
AP Economics Writer Jeannine Aversa in Washington and AP Business Writer Tim Paradis in New York contributed to this report.
John Mack, the No. 2 U.S. investment bank's chief executive, has reached out to China's Citic Group overnight about a possible investment, according to a person familiar with the talks. Morgan Stanley is also considering a combination with retail bank Wachovia Corp. and an investment from Singapore Investment Corp., one of the world's biggest sovereign wealth funds, said the person, who spoke on the condition of anonymity because the discussions were still ongoing,
Morgan Stanley shares have fallen 38 percent in the past week amid unprecedented turmoil in the global banking system. Investors remain anxious after Lehman Brothers filed for bankruptcy protection, Merrill Lynch & Co. was forced into a sale to Bank of America Corp. and the federal government bailed out insurer American International Group.
Mack made telephone calls late Wednesday to Wachovia executives and also to Citigroup Inc. CEO Vikram Pandit, exploring all options to help restore confidence in the investment house, the person said. Citigroup was not interested in a tie-up, but talks remain ongoing with Wachovia, he said.
Wachovia declined to comment about a potential deal, while Citigroup confirmed that Mack and Pandit spoke.
Spokesmen for GIC and Citic could not immediately be reached for comment.
Mack isn't the only CEO looking to strike some kind of a deal or capital infusion. Washington Mutual Inc., which has lost billions and seen its shares plummet due to subprime mortgage exposure, is selling itself or looking for a deep-pocketed investor.
And overnight in London, Britain's Lloyds TSB Lloyds TSB announced a $21.85-billion deal to take over struggling HBOS PLC, Britain's biggest mortgage lender.
The U.S. government, which helped organize an $85 billion bailout of insurer AIG on Tuesday, also sought to break the grip of worsening global credit crisis by pumping billions into financial markets in a concerted action with central banks of other countries. The Federal Reserve Bank of New York, in two operations, injected $55 billion into temporary reserves in the United States, a move aimed to help ease a strained financial system in danger of freezing up.
The move helped steady Wall Street after the previous session's massive rout. However, market participants still moved into safe assets such as gold and Treasury bills, a sign that they remain skittish during the most troubling period for the world's financial system in most investors' memory.
AP Economics Writer Jeannine Aversa in Washington and AP Business Writer Tim Paradis in New York contributed to this report.
Sensex plunges 600 points in global rout in equities
Key benchmark indices tumbled in opening trade today, 18 September
2008, as fears that the global credit crisis could worsen further
rattled investors confidence across the globe. The BSE 30-share
Sensex was down 620.08 points. Reports that the number two US
investment bank Morgan Stanley was likely to the next victim of the
credit crisis and spurt in crude oil prices dampened the sentiment.
The market breadth was extremely weak. All the 30-members from the
Sensex pack were in red. Reliance Industries hit 52-week low below
Rs 1800. Bharti Airtel plunged a little under 8%.
At 10:21 IST, the BSE 30-share Sensex was down 620.08 points or
4.68% to 12,647.26. The Sensex opened with a huge downward gap of
550.08 points at 12,712.82, which is also its day's high so far. At
the day's low of 12,558.14 hit in early trade, the Sensex lost
704.76 points.
The S&P CNX Nifty lost 169.55 points or 4.23% to 3,838.70
Asian markets tumbled today, 18 September 2008, tracking declines
on Wall Street as investors feared more companies could succumb to
the global financial crisis that forced the US to bail out troubled
insurer American International Group Inc. Key benchmark indices in
China, Hong Kong, Singapore, Japan, Taiwan, and South Korea were
down by between 3.50% and 7.38%.
Wall Street tumbled to a three-year low on Wednesday, 17 September
2008 as the Federal Reserve's rescue of insurer AIG failed to calm
a crisis of confidence in global markets. The Dow Jones industrial
average plunged 449.36 points, or 4.06%, to 10,609.66. The S&P 500
index slipped 57.21 points, or 4.71%, to 1,156.39, while the Nasdaq
Composite index declined 109.05 points, or 4.94%, to 2,098.85.
US crude oil prices jumped $6.01, the largest one-day percentage
gain in three months, to $97.16 a barrel, on Wednesday, 17
September 2008 as a US government report showed nationwide energy
inventories fell in the aftermath of the Gulf Coast hurricanes and
as the greenback slid against the euro.
The market breadth was extremely weak on BSE with 1478 shares
declining as compared to just 142 that rose. 18 remained unchanged.
The total turnover on BSE amounted to Rs 661 crore by 10:30 IST
All the 30-members from the Sensex pack were in red.
India's largest cellular services provider by market capitalisation
Bharti Airtel plunged 7.79% to Rs 710.05 and was the top loser from
Sensex pack.
Banking shares were weak ahead of the weekly inflation data due
after market hours today, 18 September 2008. India's largest
private sector bank in terms of net profit ICICI Bank plunged 5.67%
to Rs 528.90. The bank on Wednesday, 17 September 2008 denied
rumours of top management selling shares over the last few days.
Other banking shares HDFC Bank (down 5.33% to Rs 1121.40), and
State Bank of India (down 3.31% to Rs 1478.05), edged lower.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 4.20% to Rs
1794.90 on 2.45 lakh shares. The stock had hit a 52-week low of Rs
1764 in opening trade.
Ranbaxy Laboratories, India's top drug maker by sales slumped 6.34%
to Rs 355.05. The US government has banned more than 30 generic
drugs made by the company citing poor quality in two of its Indian
factories.
Jaiprakash Associates (down 7.16% to Rs 126.20), DLF (down 7.22% to
Rs 379.20), and Reliance Communications (down 7.49% to Rs 331.50),
edged lower from Sensex pack.
Among side counters, Indisbulls Financial Services (down 14.70% to
Rs 161.90), Gujarat NRE Coke (down 13.66% to Rs 57.50), Orient
Abrasives (down 12.96% to Rs 22.50), Indiabulls Real Estate (down
13.29% to Rs 182.10), and Bank of Rajasthan (down 12.38% to Rs
66.55), plunged
2008, as fears that the global credit crisis could worsen further
rattled investors confidence across the globe. The BSE 30-share
Sensex was down 620.08 points. Reports that the number two US
investment bank Morgan Stanley was likely to the next victim of the
credit crisis and spurt in crude oil prices dampened the sentiment.
The market breadth was extremely weak. All the 30-members from the
Sensex pack were in red. Reliance Industries hit 52-week low below
Rs 1800. Bharti Airtel plunged a little under 8%.
At 10:21 IST, the BSE 30-share Sensex was down 620.08 points or
4.68% to 12,647.26. The Sensex opened with a huge downward gap of
550.08 points at 12,712.82, which is also its day's high so far. At
the day's low of 12,558.14 hit in early trade, the Sensex lost
704.76 points.
The S&P CNX Nifty lost 169.55 points or 4.23% to 3,838.70
Asian markets tumbled today, 18 September 2008, tracking declines
on Wall Street as investors feared more companies could succumb to
the global financial crisis that forced the US to bail out troubled
insurer American International Group Inc. Key benchmark indices in
China, Hong Kong, Singapore, Japan, Taiwan, and South Korea were
down by between 3.50% and 7.38%.
Wall Street tumbled to a three-year low on Wednesday, 17 September
2008 as the Federal Reserve's rescue of insurer AIG failed to calm
a crisis of confidence in global markets. The Dow Jones industrial
average plunged 449.36 points, or 4.06%, to 10,609.66. The S&P 500
index slipped 57.21 points, or 4.71%, to 1,156.39, while the Nasdaq
Composite index declined 109.05 points, or 4.94%, to 2,098.85.
US crude oil prices jumped $6.01, the largest one-day percentage
gain in three months, to $97.16 a barrel, on Wednesday, 17
September 2008 as a US government report showed nationwide energy
inventories fell in the aftermath of the Gulf Coast hurricanes and
as the greenback slid against the euro.
The market breadth was extremely weak on BSE with 1478 shares
declining as compared to just 142 that rose. 18 remained unchanged.
The total turnover on BSE amounted to Rs 661 crore by 10:30 IST
All the 30-members from the Sensex pack were in red.
India's largest cellular services provider by market capitalisation
Bharti Airtel plunged 7.79% to Rs 710.05 and was the top loser from
Sensex pack.
Banking shares were weak ahead of the weekly inflation data due
after market hours today, 18 September 2008. India's largest
private sector bank in terms of net profit ICICI Bank plunged 5.67%
to Rs 528.90. The bank on Wednesday, 17 September 2008 denied
rumours of top management selling shares over the last few days.
Other banking shares HDFC Bank (down 5.33% to Rs 1121.40), and
State Bank of India (down 3.31% to Rs 1478.05), edged lower.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 4.20% to Rs
1794.90 on 2.45 lakh shares. The stock had hit a 52-week low of Rs
1764 in opening trade.
Ranbaxy Laboratories, India's top drug maker by sales slumped 6.34%
to Rs 355.05. The US government has banned more than 30 generic
drugs made by the company citing poor quality in two of its Indian
factories.
Jaiprakash Associates (down 7.16% to Rs 126.20), DLF (down 7.22% to
Rs 379.20), and Reliance Communications (down 7.49% to Rs 331.50),
edged lower from Sensex pack.
Among side counters, Indisbulls Financial Services (down 14.70% to
Rs 161.90), Gujarat NRE Coke (down 13.66% to Rs 57.50), Orient
Abrasives (down 12.96% to Rs 22.50), Indiabulls Real Estate (down
13.29% to Rs 182.10), and Bank of Rajasthan (down 12.38% to Rs
66.55), plunged
Pre Market Report 18/09/2008
Key benchmark indices are likely to witness a gap down opening today, 18 September 2008 as fears that the global credit crisis could worsen further rattled investor confidence across the globe. Reports of Morgan Stanley being the next victim of credit crunch and spurt in crude oil may dampen the sentiment further. Volatility will be high ahead of the inflation data, which will be announced after market hours today, 18 September 2008.
The wholesale price index figure in the 12 months to 6 September 2008 will be watched closely. The wholesale price index-based inflation rose 12.10% in the week ended 30 August 2008, below the previous week's annual rise of 12.34%, Government data released after market hours on Thursday, 11 September 2008 showed. The annual inflation rate was 3.72% during the corresponding week of the previous year.
US crude oil prices jumped $6.01, the largest one-day percentage gain in three months, to $97.16 a barrel, on Wednesday, 17 September 2008 as a US government report showed nationwide energy inventories fell in the aftermath of the Gulf Coast hurricanes and as the greenback slid against the euro.
Asian markets tumbled today, 18 September 2008, tracking declines on Wall Street as investors feared more companies could succumb to the global financial crisis that forced the US to bail out troubled insurer American International Group Inc.
China's Shanghai Composite plunged 5.12% or 98.80 points at 1,830.24, Hong Kong's Hang Seng slipped 5.19% or 914.66 points at 16,722.53, Japan's Nikkei tumbled 3.18% or 374.22 points at 11,375.57, Singapore's Straits Times was down 3.72% or 89.98 points at 2,329.31, South Korea's Seoul Composite declined 3.57% or 50.88 points at 1,374.38 and Taiwan's Taiwan Weighted fell 3.50% or 202.83 points at 5,598.04.
Wall Street tumbled to a three-year low on Wednesday, 17 September 2008 as the Federal Reserve's rescue of insurer AIG failed to calm a crisis of confidence in global markets. The Dow Jones industrial average plunged 449.36 points, or 4.06%, to 10,609.66. The S&P 500 index slipped 57.21 points, or 4.71%, to 1,156.39, while the Nasdaq Composite index declined 109.05 points, or 4.94%, to 2,098.85.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 1064.17 crore while mutual funds bought shares worth Rs 948.93 crore on Wednesday, 17 September 2008, according to provisional data on NSE.
FIIs were net buyers of Rs 382.80 crore in the futures & options segment on Wednesday, 17 September 2008. They were net buyers of index futures to the tune of Rs 267.58 crore and sold index options worth Rs 72.33 crore. They were net buyers of stock futures to the tune of Rs 196.31 crore and sold stock options worth Rs 8.87 crore
The wholesale price index figure in the 12 months to 6 September 2008 will be watched closely. The wholesale price index-based inflation rose 12.10% in the week ended 30 August 2008, below the previous week's annual rise of 12.34%, Government data released after market hours on Thursday, 11 September 2008 showed. The annual inflation rate was 3.72% during the corresponding week of the previous year.
US crude oil prices jumped $6.01, the largest one-day percentage gain in three months, to $97.16 a barrel, on Wednesday, 17 September 2008 as a US government report showed nationwide energy inventories fell in the aftermath of the Gulf Coast hurricanes and as the greenback slid against the euro.
Asian markets tumbled today, 18 September 2008, tracking declines on Wall Street as investors feared more companies could succumb to the global financial crisis that forced the US to bail out troubled insurer American International Group Inc.
China's Shanghai Composite plunged 5.12% or 98.80 points at 1,830.24, Hong Kong's Hang Seng slipped 5.19% or 914.66 points at 16,722.53, Japan's Nikkei tumbled 3.18% or 374.22 points at 11,375.57, Singapore's Straits Times was down 3.72% or 89.98 points at 2,329.31, South Korea's Seoul Composite declined 3.57% or 50.88 points at 1,374.38 and Taiwan's Taiwan Weighted fell 3.50% or 202.83 points at 5,598.04.
Wall Street tumbled to a three-year low on Wednesday, 17 September 2008 as the Federal Reserve's rescue of insurer AIG failed to calm a crisis of confidence in global markets. The Dow Jones industrial average plunged 449.36 points, or 4.06%, to 10,609.66. The S&P 500 index slipped 57.21 points, or 4.71%, to 1,156.39, while the Nasdaq Composite index declined 109.05 points, or 4.94%, to 2,098.85.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 1064.17 crore while mutual funds bought shares worth Rs 948.93 crore on Wednesday, 17 September 2008, according to provisional data on NSE.
FIIs were net buyers of Rs 382.80 crore in the futures & options segment on Wednesday, 17 September 2008. They were net buyers of index futures to the tune of Rs 267.58 crore and sold index options worth Rs 72.33 crore. They were net buyers of stock futures to the tune of Rs 196.31 crore and sold stock options worth Rs 8.87 crore
Stock tips for 18th sep 2008
AUSTRAL ( Austral Coke & Projects Limited )
S.SELL BELOW 258 Stoploss 263 target 250 235
ACC ( ACC Limited )
S.SELL BELOW 586 Stoploss 591 target 577 560
KSK ( KSK Energy Ventures Limited )
S.SELL BELOW 204 Stoploss 209 target 197 184
PATNI ( PATNI COMPUTER SYST LTD)
BUY ABOVE 199.47 Stoploss 198.47 target 204.29 208.82
S.SELL BELOW 258 Stoploss 263 target 250 235
ACC ( ACC Limited )
S.SELL BELOW 586 Stoploss 591 target 577 560
KSK ( KSK Energy Ventures Limited )
S.SELL BELOW 204 Stoploss 209 target 197 184
PATNI ( PATNI COMPUTER SYST LTD)
BUY ABOVE 199.47 Stoploss 198.47 target 204.29 208.82
NMDC to buy SIIL for Rs 800 cr
National Minerals Development Corporation (NMDC), India's largest iron ore producer and exporter, will acquire the Hyderabad-based Sponge Iron India (SIIL) for a maximum of Rs 800 crore. The acquisition proposal is yet to be approved by SIIL.
NMDC has formed a draft proposal to merge with SIIL by acquiring the Hyderabad company's shares. It will also have to pay Rs 80 crore to the Government of India as purchase consideration and buy Andhra Pradesh Government's 1.23% stake in SIIL.
A company official said, "We want to diversify our portfolio and add value to our products and in the process we realised that we have no assets in Andhra Pradesh. So, we decided to buy SIIL."
The acquisition of SIIL is of strategic importance to NMDC, as it expands its iron ore production. The official said that NMDC plans to leverage SIIL's production capabilities. SIIL produces 60,000 tonnes sponge iron, 1,40,000 tonnes iron ore and 70,000 tonnes coal annually.
With an investment of Rs 23,000 crore, NMDC hopes to increase its turnover six-fold to Rs 35,000 crore by 2014. By FY15, the company plans to take its overall production capacity to 50 million tonne per year.
The company is setting up a Rs 14,000-crore integrated steel plant in Chhattisgarh and a Rs 1,400-crore pig iron plant. It is also expanding capacity at three of its mines at a cost of Rs 4,500 crore.
Source: Sify
NMDC has formed a draft proposal to merge with SIIL by acquiring the Hyderabad company's shares. It will also have to pay Rs 80 crore to the Government of India as purchase consideration and buy Andhra Pradesh Government's 1.23% stake in SIIL.
A company official said, "We want to diversify our portfolio and add value to our products and in the process we realised that we have no assets in Andhra Pradesh. So, we decided to buy SIIL."
The acquisition of SIIL is of strategic importance to NMDC, as it expands its iron ore production. The official said that NMDC plans to leverage SIIL's production capabilities. SIIL produces 60,000 tonnes sponge iron, 1,40,000 tonnes iron ore and 70,000 tonnes coal annually.
With an investment of Rs 23,000 crore, NMDC hopes to increase its turnover six-fold to Rs 35,000 crore by 2014. By FY15, the company plans to take its overall production capacity to 50 million tonne per year.
The company is setting up a Rs 14,000-crore integrated steel plant in Chhattisgarh and a Rs 1,400-crore pig iron plant. It is also expanding capacity at three of its mines at a cost of Rs 4,500 crore.
Source: Sify
Wednesday, September 17, 2008
US Stocks sink over 3 percent on bank fears
NEW YORK (Reuters) - Stocks plunged more than 3 percent on Wednesday as a spike in inter-bank lending rates fanned fears about the health of global markets and the U.S. rescue of American International Group failed to reassure the market.
Anxious investors spent the morning wondering which company might be next to come under serious strain due to tight credit conditions, prompting them to dump financial shares across the board. The S&P 500 financial index (^GSPF - News) slid nearly 8 percent.
Morgan Stanley (NYSE:MS - News) shares tumbled 32.5 percent to $19.37 as investors worried whether it would survive as an independent investment bank in the current environment.
Shares of the other remaining U.S. investment bank, Goldman Sachs(NYSE:GS - News), plunged 21.5 percent to $104.39 after several brokerages cut their profit outlooks for the firm.
The S&P 500 sank 4.2 percent to 1,163.02, its lowest level since May 2005, while the Dow has shed 700 points since the start of the week.
"The fear is, 'Who is next?"' said John O'Brien, senior vice president at MKM Partners LLC in Cleveland. "It almost feels like people scour the books and say, 'Who is the next likely target that we can put a short on?' and that spreads continuous fear."
Strategists said the damage threatens to go beyond the financial services sector, hurting the corporate profit outlook and spreading panic among increasingly overstretched consumers.
"What does tomorrow bring? Will it start spilling over into consumers? Will there be runs on the banks? There's a million things going on," said Angel Mata, managing director of listed equity trading at Stifel Nicolaus Capital Markets.
"Hopefully, we'll see a capitulation soon when everybody throws in the towel," he added.
The Dow Jones industrial average (DJI:^DJI - News) was down 352.06 points, or 3.18 percent, at 10,706.96. The Standard & Poor's 500 Index (^SPX - News) was down 45.15 points, or 3.72 percent, at 1,168.44. The Nasdaq Composite Index (Nasdaq:^IXIC - News) was down 80.16 points, or 3.63 percent, at 2,127.74.
Also worrying investors was news on Tuesday that the Reserve Primary Fund, a money-market mutual fund whose assets have fallen 65 percent in recent weeks, fell below $1 a share in net asset value because of losses on debt issued by the now bankrupt Lehman Brothers Holdings (NYSE:LEH - News; NYSE:LEH - News).
"Every investor is now questioning each and every investment they have anywhere on the planet," said John Schloegel, vice president of investment strategies at Capital Cities Asset Management in Austin, Texas.
"It's leading them to sell anything that has any type of risk -- to sell first. It's an unusual situation we are in right now."
A break below important technical support for both the Dow and S&P 500 accelerated the market's slide, traders said.
The bank-to-bank cost of borrowing overnight dollars fell more than a percentage point on Wednesday, but the premium paid for the greenback and sterling over three months swelled, fanning fears that the supply of credit might be drying up in the global financial system.
The drop in Morgan Stanley's shares came despite the bank's posting quarterly results after the bell on Tuesday that beat Wall Street's estimates.
The government agreed on Tuesday to rescue AIG (NYSE:AIG - News) through an emergency $85 billion loan. The insurance company's shares were off almost 46 percent at $2.04 on the NYSE.
Banks frantically seeking dollar funds have been stonewalled by others increasingly reluctant to lend amid uncertainty and nervousness following the collapse of Lehman Brothers and the bailout of AIG.
Anxious investors spent the morning wondering which company might be next to come under serious strain due to tight credit conditions, prompting them to dump financial shares across the board. The S&P 500 financial index (^GSPF - News) slid nearly 8 percent.
Morgan Stanley (NYSE:MS - News) shares tumbled 32.5 percent to $19.37 as investors worried whether it would survive as an independent investment bank in the current environment.
Shares of the other remaining U.S. investment bank, Goldman Sachs(NYSE:GS - News), plunged 21.5 percent to $104.39 after several brokerages cut their profit outlooks for the firm.
The S&P 500 sank 4.2 percent to 1,163.02, its lowest level since May 2005, while the Dow has shed 700 points since the start of the week.
"The fear is, 'Who is next?"' said John O'Brien, senior vice president at MKM Partners LLC in Cleveland. "It almost feels like people scour the books and say, 'Who is the next likely target that we can put a short on?' and that spreads continuous fear."
Strategists said the damage threatens to go beyond the financial services sector, hurting the corporate profit outlook and spreading panic among increasingly overstretched consumers.
"What does tomorrow bring? Will it start spilling over into consumers? Will there be runs on the banks? There's a million things going on," said Angel Mata, managing director of listed equity trading at Stifel Nicolaus Capital Markets.
"Hopefully, we'll see a capitulation soon when everybody throws in the towel," he added.
The Dow Jones industrial average (DJI:^DJI - News) was down 352.06 points, or 3.18 percent, at 10,706.96. The Standard & Poor's 500 Index (^SPX - News) was down 45.15 points, or 3.72 percent, at 1,168.44. The Nasdaq Composite Index (Nasdaq:^IXIC - News) was down 80.16 points, or 3.63 percent, at 2,127.74.
Also worrying investors was news on Tuesday that the Reserve Primary Fund, a money-market mutual fund whose assets have fallen 65 percent in recent weeks, fell below $1 a share in net asset value because of losses on debt issued by the now bankrupt Lehman Brothers Holdings (NYSE:LEH - News; NYSE:LEH - News).
"Every investor is now questioning each and every investment they have anywhere on the planet," said John Schloegel, vice president of investment strategies at Capital Cities Asset Management in Austin, Texas.
"It's leading them to sell anything that has any type of risk -- to sell first. It's an unusual situation we are in right now."
A break below important technical support for both the Dow and S&P 500 accelerated the market's slide, traders said.
The bank-to-bank cost of borrowing overnight dollars fell more than a percentage point on Wednesday, but the premium paid for the greenback and sterling over three months swelled, fanning fears that the supply of credit might be drying up in the global financial system.
The drop in Morgan Stanley's shares came despite the bank's posting quarterly results after the bell on Tuesday that beat Wall Street's estimates.
The government agreed on Tuesday to rescue AIG (NYSE:AIG - News) through an emergency $85 billion loan. The insurance company's shares were off almost 46 percent at $2.04 on the NYSE.
Banks frantically seeking dollar funds have been stonewalled by others increasingly reluctant to lend amid uncertainty and nervousness following the collapse of Lehman Brothers and the bailout of AIG.
Oil prices rebound on AIG bailout, weaker dollar
Oil prices bounce higher after government bails out AIG, dollar gains vs euro
NEW YORK (AP) -- Oil prices rebounded Wednesday as a government rescue of American International Group Inc. soothed skittish investors who feared the insurer's collapse could have triggered a wholesale exodus from commodities.
ADVERTISEMENT
Light, sweet crude for October delivery rose $1.45 to $92.60 a barrel in early trading on the New York Mercantile Exchange.
Meanwhile at the pump, retail gas prices were virtually flat compared with the previous session as more Gulf Coast refineries began ramping up operations after the passage of Hurricane Ike. A gallon of regular inched up one-tenth of a penny to a new national average of $3.855, according to auto club AAA, the Oil Price Information Service and Wright Express.
Some recovery in crude was expected after the contract dropped $10 in the previous two sessions, bringing prices to their lowest level in seven months and down 8 percent for the year. At one point Tuesday, oil touched $90.51 a barrel, its lowest since Feb. 8, and down 39 percent from a record $147.27 on July 11.
Still, recent rallies often have been followed by sharp selloffs as oil market traders try to wring whatever money they can out of the quickly deflating oil bubble.
Wednesday's oil gain was energized by the bailout of AIG. The Federal Reserve on Tuesday agreed to pump $85 million in taxpayer money into the insurance giant in return for a 79.9 percent ownership stake. The lifeline was aimed at avoiding an AIG collapse due to massive losses tied to the subprime mortgage crisis and the credit crunch.
If AIG had been allowed to fail, investors feared the company would move to unwind positions in energy and other commodities to raise cash, setting in motion another big commodities liquidation. Oil's big two-day price drop this week was due in part to similar concerns that surfaced after Lehman Brothers Holdings Inc. filed for bankruptcy Monday.
"The fear was that if AIG was allowed to go down, we could be looking at a huge exit from financial instruments across the spectrum: equities, oil futures, everything," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill.
A slightly weaker dollar also gave oil prices a boost. A falling greenback encourages investors to shift funds into commodities, which are often bought as safe-haven assets used to hedge against inflation or weakness in the U.S. currency.
With so much uncertainty surrounding the U.S. financial system and fears that slowing economic growth will undermine crude demand, Wednesday's jump in oil prices probably has not broken the recent downward trend.
Events that would usually boost prices -- such as OPEC cutting output by 520,000 barrels a day last week, or damage to oil installations on the Texas coast by Ike last weekend -- haven't done so.
"The OPEC cut didn't have any impact," said Peter McGuire, managing director at investment firm Commodity Warrants Australia in Sydney. "Then Ike didn't slow the market either."
Also Wednesday, the U.S. government reported a bigger-than-expected drop in crude supplies, reflecting the shutdown of virtually all Gulf Coast oil production because of Ike and Hurricane Gustav.
The Energy Information Administration said U.S. crude stocks fell by 6.3 million barrels for the week ending Sept. 12, much bigger than the 3.7 million barrel drop expected by analysts surveyed by energy research firm Platts expected.
Gasoline inventories fell by 3.3 million barrels to 184.6 million barrels. Analysts expected stockpiles of the motor fuel to fall by 3.6 million barrels.
Meanwhile, inventories of distillate fuel, which include diesel and heating oil, fell by 900,000 barrels to 129.6 million barrels for the week ended Sept. 12. Analysts expected distillate stocks to slip by 1.7 million barrels.
Violence continued Wednesday across Nigeria's restive Niger Delta oil region. Nigeria's main militant group said it destroyed an oil-pumping station and a pipeline that crosses southern Nigeria, extending a spate of violence into a fifth day. The Movement for the Emancipation of the Niger Delta also said it attacked an oil pumping station overnight, destroying the flow station run by the local unit of Royal Dutch Shell PLC after battling security forces protecting the site.
In other Nymex trading, heating oil futures fell about half a penny to $2.716 a gallon, while gasoline prices lost 2.3 cents to $2.3775 a gallon. Natural gas for October delivery added 38 cents to $7.939 per 1,000 cubic feet.
In London, November Brent crude rose $1.72 to $90.94 a barrel on the ICE Futures exchange.
Associated Press writers Louise Watt in London and Alex Kennedy contributed to this report from Singapore.
NEW YORK (AP) -- Oil prices rebounded Wednesday as a government rescue of American International Group Inc. soothed skittish investors who feared the insurer's collapse could have triggered a wholesale exodus from commodities.
ADVERTISEMENT
Light, sweet crude for October delivery rose $1.45 to $92.60 a barrel in early trading on the New York Mercantile Exchange.
Meanwhile at the pump, retail gas prices were virtually flat compared with the previous session as more Gulf Coast refineries began ramping up operations after the passage of Hurricane Ike. A gallon of regular inched up one-tenth of a penny to a new national average of $3.855, according to auto club AAA, the Oil Price Information Service and Wright Express.
Some recovery in crude was expected after the contract dropped $10 in the previous two sessions, bringing prices to their lowest level in seven months and down 8 percent for the year. At one point Tuesday, oil touched $90.51 a barrel, its lowest since Feb. 8, and down 39 percent from a record $147.27 on July 11.
Still, recent rallies often have been followed by sharp selloffs as oil market traders try to wring whatever money they can out of the quickly deflating oil bubble.
Wednesday's oil gain was energized by the bailout of AIG. The Federal Reserve on Tuesday agreed to pump $85 million in taxpayer money into the insurance giant in return for a 79.9 percent ownership stake. The lifeline was aimed at avoiding an AIG collapse due to massive losses tied to the subprime mortgage crisis and the credit crunch.
If AIG had been allowed to fail, investors feared the company would move to unwind positions in energy and other commodities to raise cash, setting in motion another big commodities liquidation. Oil's big two-day price drop this week was due in part to similar concerns that surfaced after Lehman Brothers Holdings Inc. filed for bankruptcy Monday.
"The fear was that if AIG was allowed to go down, we could be looking at a huge exit from financial instruments across the spectrum: equities, oil futures, everything," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates in Galena, Ill.
A slightly weaker dollar also gave oil prices a boost. A falling greenback encourages investors to shift funds into commodities, which are often bought as safe-haven assets used to hedge against inflation or weakness in the U.S. currency.
With so much uncertainty surrounding the U.S. financial system and fears that slowing economic growth will undermine crude demand, Wednesday's jump in oil prices probably has not broken the recent downward trend.
Events that would usually boost prices -- such as OPEC cutting output by 520,000 barrels a day last week, or damage to oil installations on the Texas coast by Ike last weekend -- haven't done so.
"The OPEC cut didn't have any impact," said Peter McGuire, managing director at investment firm Commodity Warrants Australia in Sydney. "Then Ike didn't slow the market either."
Also Wednesday, the U.S. government reported a bigger-than-expected drop in crude supplies, reflecting the shutdown of virtually all Gulf Coast oil production because of Ike and Hurricane Gustav.
The Energy Information Administration said U.S. crude stocks fell by 6.3 million barrels for the week ending Sept. 12, much bigger than the 3.7 million barrel drop expected by analysts surveyed by energy research firm Platts expected.
Gasoline inventories fell by 3.3 million barrels to 184.6 million barrels. Analysts expected stockpiles of the motor fuel to fall by 3.6 million barrels.
Meanwhile, inventories of distillate fuel, which include diesel and heating oil, fell by 900,000 barrels to 129.6 million barrels for the week ended Sept. 12. Analysts expected distillate stocks to slip by 1.7 million barrels.
Violence continued Wednesday across Nigeria's restive Niger Delta oil region. Nigeria's main militant group said it destroyed an oil-pumping station and a pipeline that crosses southern Nigeria, extending a spate of violence into a fifth day. The Movement for the Emancipation of the Niger Delta also said it attacked an oil pumping station overnight, destroying the flow station run by the local unit of Royal Dutch Shell PLC after battling security forces protecting the site.
In other Nymex trading, heating oil futures fell about half a penny to $2.716 a gallon, while gasoline prices lost 2.3 cents to $2.3775 a gallon. Natural gas for October delivery added 38 cents to $7.939 per 1,000 cubic feet.
In London, November Brent crude rose $1.72 to $90.94 a barrel on the ICE Futures exchange.
Associated Press writers Louise Watt in London and Alex Kennedy contributed to this report from Singapore.
Stocks sink after government bailout of AIG
Wall Street tumbles again after government bails out AIG, Barclays buys Lehman businesses
NEW YORK (AP) -- Wall Street stumbled again Wednesday, with anxieties about the financial system still running high even after the government bailed out the insurer American International Group Inc. The Dow Jones industrial average dropped about 300 points.
The Federal Reserve is giving a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent stake in the insurer, after it lost billions in the risky business of insuring against bond defaults. Wall Street had feared that the conglomerate, which has its tentacles in various financial services industries around the world, would follow the investment bank Lehman Brothers Holdings Inc. into bankruptcy.
"People are scared to death," said Bill Stone, chief investment strategist for PNC Wealth Management. "Who would have imagined that AIG would have gotten into this position?"
He said the fear gripping the market reflects investors' concerns that AIG wasn't able to find a lifeline in the private sector and that Wall Street is now fretting about what other institutions could falter.
The two independent Wall Street investment banks left standing -- Goldman Sachs Group Inc. and Morgan Stanley -- remain under scrutiny, as does Washington Mutual Inc., the country's largest thrift bank. Morgan Stanley revealed its quarterly earnings early late Tuesday, posting a better-than-expected 7 percent slide in fiscal third-quarter profit. It insisted that it is surviving the credit crisis that has ravaged many of its peers.
Lehman filed for bankruptcy protection on Monday, and by late Tuesday had sold its North American investment banking and trading operations to Barclays, Britain's third-largest bank, for the bargain price of $250 million. Over the weekend, Merrill Lynch, the world's largest brokerage, sold itself in a last-ditch effort to avoid failure to Bank of America Corp.
The troubles in the financial sector could exacerbate the problems facing the weak U.S. economy, given that individuals and businesses rely on the nation's money centers.
The Commerce Department reported Wednesday that new home construction fell by 6.2 percent in August to 895,000 units, the slowest building pace since January 1991. Slumping demand for houses, sinking home prices and mortgage defaults have been the catalysts behind Wall Street's turmoil -- and the risky mortgage-backed assets held by the nation's banks are not apt to regain in value until the housing market turns around.
The Dow fell 298.00, or 2.69 percent, to 10,761.02 a day after Wall Street regained some of Monday's nosedive, in which the blue chips fell 504 points. The index is down more than 5 percent on the week, and has fallen more than 23 percent since reaching a record close of 14,164.53 on Oct. 9 last year.
Broader stock indicators also plunged. The Standard & Poor's 500 index dropped 42.68, or 3.52 percent, to 1,170.92, while the Nasdaq composite index fell 76.11, or 3.45 percent, to 2,131.79.
The stock market is likely to see heavy back-and-forth movement as traders continue to assess the flood of news that has poured in over the past several days.
On Monday, the Dow lost 504 points, the largest tumble since its drop following the September 2001 terror attacks. On Tuesday, it rose 141 points, after the Fed decided to leave interest rates unchanged.
"It's still uncertain ground we're treading. We just have to move on a daily basis," said Jack A. Ablin, chief investment officer at Harris Private Bank.
The government took other measures Tuesday to help alleviate the turmoil in the markets. The Treasury said it will start selling bonds for the Fed to aid it with its lending efforts, while the Securities and Exchange Commission said it will strictly prohibit naked short-selling starting Thursday.
Short-selling is when traders borrow shares of a stock they expect to fall and sell them -- if the stock does indeed fall, the traders buy the cheaper shares to cover the borrowed ones and profit from the difference. Naked short-selling occurs when sellers don't actually borrow the shares before selling them; it's a practice some say is partially responsible for the huge drop in the shares of investment banks like Lehman, Merrill Lynch and Bear Stearns Cos., which JPMorgan Chase & Co. bought earlier this year.
Bond prices wavered Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, slipped to 3.39 percent from 3.43 percent late Tuesday. The dollar was lower against other major currencies, while gold prices rose.
Crude oil rebounded $2.27 to $93.42 a barrel on the New York Mercantile Exchange. Crude has dropped by about $10 a barrel over the past two days due to concerns that troubles in the financial sector will dampen the economy and cause big funds to unwind their commodities bets.
Declining issues outnumbered advancers by nearly 10 to 1 on the New York Stock Exchange, where volume came to 655.9 million shares.
Overseas, Japan's Nikkei stock average rose 1.2 percent after AIG's rescue, but Hong Kong's Hang Seng index lost 3.6 percent.
In afternoon trading in Europe, Britain's FTSE 100 fell 1.37 percent, Germany's DAX index fell 2.25 percent, and France's CAC-40 fell 2.27 percent.
NEW YORK (AP) -- Wall Street stumbled again Wednesday, with anxieties about the financial system still running high even after the government bailed out the insurer American International Group Inc. The Dow Jones industrial average dropped about 300 points.
The Federal Reserve is giving a two-year, $85 billion loan to AIG in exchange for a nearly 80 percent stake in the insurer, after it lost billions in the risky business of insuring against bond defaults. Wall Street had feared that the conglomerate, which has its tentacles in various financial services industries around the world, would follow the investment bank Lehman Brothers Holdings Inc. into bankruptcy.
"People are scared to death," said Bill Stone, chief investment strategist for PNC Wealth Management. "Who would have imagined that AIG would have gotten into this position?"
He said the fear gripping the market reflects investors' concerns that AIG wasn't able to find a lifeline in the private sector and that Wall Street is now fretting about what other institutions could falter.
The two independent Wall Street investment banks left standing -- Goldman Sachs Group Inc. and Morgan Stanley -- remain under scrutiny, as does Washington Mutual Inc., the country's largest thrift bank. Morgan Stanley revealed its quarterly earnings early late Tuesday, posting a better-than-expected 7 percent slide in fiscal third-quarter profit. It insisted that it is surviving the credit crisis that has ravaged many of its peers.
Lehman filed for bankruptcy protection on Monday, and by late Tuesday had sold its North American investment banking and trading operations to Barclays, Britain's third-largest bank, for the bargain price of $250 million. Over the weekend, Merrill Lynch, the world's largest brokerage, sold itself in a last-ditch effort to avoid failure to Bank of America Corp.
The troubles in the financial sector could exacerbate the problems facing the weak U.S. economy, given that individuals and businesses rely on the nation's money centers.
The Commerce Department reported Wednesday that new home construction fell by 6.2 percent in August to 895,000 units, the slowest building pace since January 1991. Slumping demand for houses, sinking home prices and mortgage defaults have been the catalysts behind Wall Street's turmoil -- and the risky mortgage-backed assets held by the nation's banks are not apt to regain in value until the housing market turns around.
The Dow fell 298.00, or 2.69 percent, to 10,761.02 a day after Wall Street regained some of Monday's nosedive, in which the blue chips fell 504 points. The index is down more than 5 percent on the week, and has fallen more than 23 percent since reaching a record close of 14,164.53 on Oct. 9 last year.
Broader stock indicators also plunged. The Standard & Poor's 500 index dropped 42.68, or 3.52 percent, to 1,170.92, while the Nasdaq composite index fell 76.11, or 3.45 percent, to 2,131.79.
The stock market is likely to see heavy back-and-forth movement as traders continue to assess the flood of news that has poured in over the past several days.
On Monday, the Dow lost 504 points, the largest tumble since its drop following the September 2001 terror attacks. On Tuesday, it rose 141 points, after the Fed decided to leave interest rates unchanged.
"It's still uncertain ground we're treading. We just have to move on a daily basis," said Jack A. Ablin, chief investment officer at Harris Private Bank.
The government took other measures Tuesday to help alleviate the turmoil in the markets. The Treasury said it will start selling bonds for the Fed to aid it with its lending efforts, while the Securities and Exchange Commission said it will strictly prohibit naked short-selling starting Thursday.
Short-selling is when traders borrow shares of a stock they expect to fall and sell them -- if the stock does indeed fall, the traders buy the cheaper shares to cover the borrowed ones and profit from the difference. Naked short-selling occurs when sellers don't actually borrow the shares before selling them; it's a practice some say is partially responsible for the huge drop in the shares of investment banks like Lehman, Merrill Lynch and Bear Stearns Cos., which JPMorgan Chase & Co. bought earlier this year.
Bond prices wavered Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, slipped to 3.39 percent from 3.43 percent late Tuesday. The dollar was lower against other major currencies, while gold prices rose.
Crude oil rebounded $2.27 to $93.42 a barrel on the New York Mercantile Exchange. Crude has dropped by about $10 a barrel over the past two days due to concerns that troubles in the financial sector will dampen the economy and cause big funds to unwind their commodities bets.
Declining issues outnumbered advancers by nearly 10 to 1 on the New York Stock Exchange, where volume came to 655.9 million shares.
Overseas, Japan's Nikkei stock average rose 1.2 percent after AIG's rescue, but Hong Kong's Hang Seng index lost 3.6 percent.
In afternoon trading in Europe, Britain's FTSE 100 fell 1.37 percent, Germany's DAX index fell 2.25 percent, and France's CAC-40 fell 2.27 percent.
US government announces $85 bn loan to save AIG
WASHINGTON: The US government has agreed to provide an $85 billion emergency loan to rescue the huge insurer AIG, the The Federal Reserve said on Tuesday. The Fed said the US Treasury Department was in full support of the decision.
The Fed determined that a "disorderly failure" of AIG could undermine already fragile financial markets.
The government will receive an 79.9 percent equity stake in AIG, the Fed said
The deal would avoid the biggest corporate bankruptcy ever and follows a government bailout of mortgage lenders Freddie Mac and Fannie Mae just over a week ago.
Earlier, US stocks clawed back from their biggest one-day drop in seven years, soothed by speculation about a government rescue of AIG, a likely sale of Lehman Brothers' investment bank to Britain's Barclays, and a better-than-expected quarterly profit from Goldman Sachs.
The Fed determined that a "disorderly failure" of AIG could undermine already fragile financial markets.
The government will receive an 79.9 percent equity stake in AIG, the Fed said
The deal would avoid the biggest corporate bankruptcy ever and follows a government bailout of mortgage lenders Freddie Mac and Fannie Mae just over a week ago.
Earlier, US stocks clawed back from their biggest one-day drop in seven years, soothed by speculation about a government rescue of AIG, a likely sale of Lehman Brothers' investment bank to Britain's Barclays, and a better-than-expected quarterly profit from Goldman Sachs.
Post Market Report:17/09/2008
Intense selling pressure in key index pivotals dragged the key
benchmark indices lower in volatile trade. The BSE 30-share Sensex,
extended losses for the seventh straight day today, 17 September
2008, declining 255.90 points. The S&P CNX Nifty settled just above
the psychological 4,000 level.
ICICI Bank shed over 4.5% and Reliance Industries shed over 3%.
Sterlite Industries tumbled a little under 9% and ITC lost over 5%.
The market breadth was weak. All BSE sectoral indices ended in red.
The US Federal Reserve in a meeting on Tuesday, 16 September 2008
announced a $85 billion rescue plan to help American International
Group in exchange for a 79.9% stake. The deal would avoid the
biggest corporate bankruptcy ever and follows a government bailout
of mortgage lenders Freddie Mac and Fannie Mae earlier this month
Meanwhile, the US Federal Reserve at its policy meet on Tuesday, 16
September 2008, kept its target for the federal funds rate at 2%.
Fed said that the strains in financial markets have increased
significantly and labour markets have weakened further. Economic
growth appears to have slowed recently, partly reflecting a
softening of household spending.
European markets, which opened after Indian market, were mixed. Key
benchmark indices in Germany and France were up 0.32% and 0.63%
respectively. However UK's FTSE 100 lost 2.13%. Asian markets were
trading mixed today, 17 September 2008. Key benchmark indices in
China, Hong Kong and Singapore, were down by between 2.90% and
3.63%. However indices in Japan, Taiwan, and South Korea rose by
between 0.77% and 2.70%.
In US, Dow futures were down 31 points and the Nasdaq futures were
down 8 points, pointing to a lower start of the US markets on
Wednesday, 17 September 2008.
The BSE 30-share Sensex lost 255.90 points or 1.89% at 13,262.90.
The Sensex opened with a upward gap of 101.94 points at 13,620.74,
which is also its day's high so far, boosted by Fed's rescue plan
for AIG. At the day's low of 13,127.96 hit mid-afternoon trade, the
Sensex lost 390.84 points.
The S&P CNX Nifty lost 66.65 points or 1.64%, to settle at 4008.25.
At the day's low of 3,974.60, the Nifty lost 100.30 points in
afternoon trade. Nifty September 2008 futures were at a marginal
0.75 premium as compared to spot closing. NSE's futures & options
(F&O) segment turnover was Rs 58,546.48 crore, which was higher
than Rs 56,509.60 crore on Tuesday, 16 September 2008.
The BSE Sensex has lost 1682.07 points or 11.25% in seven
consecutive trading sessions from a recent high of 14,944.97 on 8
September 2008. The barometer index is down 7024.09 points or
34.63% in the calendar year 2008 so far from its close of 20,286.99
on 31 December 2007. It is 7943.87 points or 37.45% below its
all-time high of 21,206.77 struck on 10 January 2008.
National Stock Exchange (NSE) on Tuesday, 16 September 2008, said
there are no outstanding open positions/settlement obligations of
Lehman Brothers Securities currently in the cash market segment and
derivatives segment of NSE. Lehman Brothers Securities can operate
only in the cash market segment on pre-funding of their trades, NSE
said.
The Reserve Bank of India (RBI) on late Tuesday, 16 September 2008
stepped in with measures to support the rupee -- which has been
battered to almost 47 against the dollar -- and supply cash in the
money market. The move will increase dollar supply and lower banks'
borrowing cost in the overnight call money market. RBI has hiked
the maximum interest that banks can pay on NRI deposits by 50 basis
points for dollar as well as rupee deposits.
The market breadth was weak on BSE with 1760 shares declining as
compared to 881 that advanced. 82 remained unchanged.
The total turnover on BSE amounted to Rs 5795 crore as compared to
Rs 5,208.35 crore yesterday, 16 September 2008.
The BSE Mid-Cap index fell 1.49% to 5,139.63 and the BSE Small-Cap
index slipped 1.19% to 6,214.75.
Among the 30-member Sensex pack, 24 slipped while the rest gained.
India's top copper producer by sales Sterlite Industries plunged
8.89% to Rs 435.25 on 11.02 lakh shares. It was the top loser from
Sensex pack.
India's largest private sector bank in terms of net profit ICICI
Bank plunged 4.75% to Rs 563.25, off day's low of Rs 530. The
sell-off was on reports the bank will have to take a hit of $28
million on account of the additional provisioning that ICICI Bank's
UK subsidiary will have to make after Lehman Brothers Holdings, the
fourth-largest investment bank filing for bankruptcy.
Meanwhile, the bank denied rumours of top management selling shares
over the last few days.
Other banking shares were also weak ahead of the release of the
weekly inflation figures after trading hours on Thursday, 18
September 2008. HDFC Bank (down 3.83% to Rs 1183), and State Bank
of India (down 4.12% to Rs 1520.25), edged lower. The Bankex fell
3.79% to 6,592.96.
Ranbaxy Laboratories, India's top drug maker by sales slumped 4.41%
to Rs 388. The stock tumbled on reports the US government has
banned more than 30 generic drugs made by the company citing poor
quality in two of its Indian factories. The stock was already on a
sustained downtrend ever since the Japanese drug maker Daiichi
Sankyo's open offer to acquire an additional 20% stake at Rs 737 a
share in the company ended on 4 September 2008.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 3.31% to Rs
1864.70 on 14.05 lakh shares. The stock had hit a 52-week low of Rs
1800 in intra-day trade on Tuesday, 16 September 2008. As per
reports, the company is expected to start pumping gas from November
2008 from its deep-water field off the east coast.
Real estate shares slipped. DLF (down 4.12% to Rs 405.20), Unitech
(down 9.32% to Rs 127), Indiabulls Real Estate (down 7.92% to Rs
205.70), and Ansal Infrastruture (down 2.10% to Rs 77), declined.
The BSE Realty index lost 4.13%, to 3,991.93.
India's largest private sector steel maker by sales, Tata Steel was
down 3.48% to Rs 470.60. It had touched a 52-week low of Rs 467.95
in intra-day trade. As per reports, the company paid lower advance
tax to Rs 300 crore in Q2 September 2008 as compared to Rs 350
crore in Q2 September 2007. The BSE metal index plunged 3.55%, to
9,814.93.
ITC (down 5.48% to Rs 183.60), and Jaiprakash Associates (down
3.58% to Rs 134.80), edged lower from the Sensex pack.
India's top truck maker by sales Tata Motors advanced 4.46% to Rs
416.15 and was the top gainer from Sensex pack. The company
reportedly paid lower advance tax to Rs 75 crore in Q2 September
2008 as compared to Rs 190 crore in Q2 September 2007.
Mahindra & Mahindra, the country's top tractor maker by sales
gained 0.14% to Rs 534. The company reportedly paid higher advance
tax of Rs 116 crore in Q2 September 2008 as compared to Rs 83 crore
in Q2 September 2007.
India's top oil exploration firm by market capitalisation Oil and
Natural Gas Corporation (ONGC) gained 2.86% to Rs 979.90, after the
company said it has agreed to give Rocksource ASA, a Norwegian
company, 10% participating interest in deep water block in the
eastern offshore. It was the top gainer from Sensex pack.
India's second largest software services firm Infosys Technologies
rose 1.01% to Rs 1580, off its day's high of Rs 1647.90. Its
American depositary receipt soared 4.60% in the US market
yesterday, 16 September 2008.
Other IT pivotals showed mixed trend. Satyam Computer Services
(down 1.87% to Rs 349.70), and TCS (down 2.88% to Rs 728), slipped.
The BSE IT index lost 0.58% to 3,524.32.
However India's third largest software services firm Wipro rose
1.15% to Rs 396.25 on reports the company's software business arm
Wipro Technologies and Copal Partners have expressed interest to
bid for the Indian back-office unit of Lehman Brothers.
State-run oil refiners slipped after crude oil price rebounded from
a 7-month low. Indian Oil Corporation (down 5.30% at Rs 396), BPCL
(down 7.02% at Rs 336.20), and HPCL (down 5.45% at Rs 235.25),
slipped. However Cairn India galloped 4.28% to Rs 207.
ICICI Bank was the top traded counter on BSE with a turnover of Rs
401.80 crore followed by United Spirits (Rs 341.76 crore), Reliance
Capital (Rs 307.75 crore), Reliance Industries (Rs 265.54 crore)
and Educomp Solutions(Rs 249.06 crore), in that order.
Reliance Natural Resources led the volumes chart on BSE clocking
volumes of 1.41 crore shares followed by IFCI (1.05 crore shares),
ICICI Bank (72.12 lakh shares), Austral Coke & Projects (62.27 lakh
shares) and Chambal Fertilisers (60.31 lakh shares) in that order.
Jaipan Industries was locked at upper limit of 5% of Rs 168.10, a
lifetime high, extending gains for the 24th trading session in a
row. The Jaipan stock has surged 220.49% in past 24 trading session
to Rs 168.10 today from Rs 52.45 on 12 August 2008.
benchmark indices lower in volatile trade. The BSE 30-share Sensex,
extended losses for the seventh straight day today, 17 September
2008, declining 255.90 points. The S&P CNX Nifty settled just above
the psychological 4,000 level.
ICICI Bank shed over 4.5% and Reliance Industries shed over 3%.
Sterlite Industries tumbled a little under 9% and ITC lost over 5%.
The market breadth was weak. All BSE sectoral indices ended in red.
The US Federal Reserve in a meeting on Tuesday, 16 September 2008
announced a $85 billion rescue plan to help American International
Group in exchange for a 79.9% stake. The deal would avoid the
biggest corporate bankruptcy ever and follows a government bailout
of mortgage lenders Freddie Mac and Fannie Mae earlier this month
Meanwhile, the US Federal Reserve at its policy meet on Tuesday, 16
September 2008, kept its target for the federal funds rate at 2%.
Fed said that the strains in financial markets have increased
significantly and labour markets have weakened further. Economic
growth appears to have slowed recently, partly reflecting a
softening of household spending.
European markets, which opened after Indian market, were mixed. Key
benchmark indices in Germany and France were up 0.32% and 0.63%
respectively. However UK's FTSE 100 lost 2.13%. Asian markets were
trading mixed today, 17 September 2008. Key benchmark indices in
China, Hong Kong and Singapore, were down by between 2.90% and
3.63%. However indices in Japan, Taiwan, and South Korea rose by
between 0.77% and 2.70%.
In US, Dow futures were down 31 points and the Nasdaq futures were
down 8 points, pointing to a lower start of the US markets on
Wednesday, 17 September 2008.
The BSE 30-share Sensex lost 255.90 points or 1.89% at 13,262.90.
The Sensex opened with a upward gap of 101.94 points at 13,620.74,
which is also its day's high so far, boosted by Fed's rescue plan
for AIG. At the day's low of 13,127.96 hit mid-afternoon trade, the
Sensex lost 390.84 points.
The S&P CNX Nifty lost 66.65 points or 1.64%, to settle at 4008.25.
At the day's low of 3,974.60, the Nifty lost 100.30 points in
afternoon trade. Nifty September 2008 futures were at a marginal
0.75 premium as compared to spot closing. NSE's futures & options
(F&O) segment turnover was Rs 58,546.48 crore, which was higher
than Rs 56,509.60 crore on Tuesday, 16 September 2008.
The BSE Sensex has lost 1682.07 points or 11.25% in seven
consecutive trading sessions from a recent high of 14,944.97 on 8
September 2008. The barometer index is down 7024.09 points or
34.63% in the calendar year 2008 so far from its close of 20,286.99
on 31 December 2007. It is 7943.87 points or 37.45% below its
all-time high of 21,206.77 struck on 10 January 2008.
National Stock Exchange (NSE) on Tuesday, 16 September 2008, said
there are no outstanding open positions/settlement obligations of
Lehman Brothers Securities currently in the cash market segment and
derivatives segment of NSE. Lehman Brothers Securities can operate
only in the cash market segment on pre-funding of their trades, NSE
said.
The Reserve Bank of India (RBI) on late Tuesday, 16 September 2008
stepped in with measures to support the rupee -- which has been
battered to almost 47 against the dollar -- and supply cash in the
money market. The move will increase dollar supply and lower banks'
borrowing cost in the overnight call money market. RBI has hiked
the maximum interest that banks can pay on NRI deposits by 50 basis
points for dollar as well as rupee deposits.
The market breadth was weak on BSE with 1760 shares declining as
compared to 881 that advanced. 82 remained unchanged.
The total turnover on BSE amounted to Rs 5795 crore as compared to
Rs 5,208.35 crore yesterday, 16 September 2008.
The BSE Mid-Cap index fell 1.49% to 5,139.63 and the BSE Small-Cap
index slipped 1.19% to 6,214.75.
Among the 30-member Sensex pack, 24 slipped while the rest gained.
India's top copper producer by sales Sterlite Industries plunged
8.89% to Rs 435.25 on 11.02 lakh shares. It was the top loser from
Sensex pack.
India's largest private sector bank in terms of net profit ICICI
Bank plunged 4.75% to Rs 563.25, off day's low of Rs 530. The
sell-off was on reports the bank will have to take a hit of $28
million on account of the additional provisioning that ICICI Bank's
UK subsidiary will have to make after Lehman Brothers Holdings, the
fourth-largest investment bank filing for bankruptcy.
Meanwhile, the bank denied rumours of top management selling shares
over the last few days.
Other banking shares were also weak ahead of the release of the
weekly inflation figures after trading hours on Thursday, 18
September 2008. HDFC Bank (down 3.83% to Rs 1183), and State Bank
of India (down 4.12% to Rs 1520.25), edged lower. The Bankex fell
3.79% to 6,592.96.
Ranbaxy Laboratories, India's top drug maker by sales slumped 4.41%
to Rs 388. The stock tumbled on reports the US government has
banned more than 30 generic drugs made by the company citing poor
quality in two of its Indian factories. The stock was already on a
sustained downtrend ever since the Japanese drug maker Daiichi
Sankyo's open offer to acquire an additional 20% stake at Rs 737 a
share in the company ended on 4 September 2008.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 3.31% to Rs
1864.70 on 14.05 lakh shares. The stock had hit a 52-week low of Rs
1800 in intra-day trade on Tuesday, 16 September 2008. As per
reports, the company is expected to start pumping gas from November
2008 from its deep-water field off the east coast.
Real estate shares slipped. DLF (down 4.12% to Rs 405.20), Unitech
(down 9.32% to Rs 127), Indiabulls Real Estate (down 7.92% to Rs
205.70), and Ansal Infrastruture (down 2.10% to Rs 77), declined.
The BSE Realty index lost 4.13%, to 3,991.93.
India's largest private sector steel maker by sales, Tata Steel was
down 3.48% to Rs 470.60. It had touched a 52-week low of Rs 467.95
in intra-day trade. As per reports, the company paid lower advance
tax to Rs 300 crore in Q2 September 2008 as compared to Rs 350
crore in Q2 September 2007. The BSE metal index plunged 3.55%, to
9,814.93.
ITC (down 5.48% to Rs 183.60), and Jaiprakash Associates (down
3.58% to Rs 134.80), edged lower from the Sensex pack.
India's top truck maker by sales Tata Motors advanced 4.46% to Rs
416.15 and was the top gainer from Sensex pack. The company
reportedly paid lower advance tax to Rs 75 crore in Q2 September
2008 as compared to Rs 190 crore in Q2 September 2007.
Mahindra & Mahindra, the country's top tractor maker by sales
gained 0.14% to Rs 534. The company reportedly paid higher advance
tax of Rs 116 crore in Q2 September 2008 as compared to Rs 83 crore
in Q2 September 2007.
India's top oil exploration firm by market capitalisation Oil and
Natural Gas Corporation (ONGC) gained 2.86% to Rs 979.90, after the
company said it has agreed to give Rocksource ASA, a Norwegian
company, 10% participating interest in deep water block in the
eastern offshore. It was the top gainer from Sensex pack.
India's second largest software services firm Infosys Technologies
rose 1.01% to Rs 1580, off its day's high of Rs 1647.90. Its
American depositary receipt soared 4.60% in the US market
yesterday, 16 September 2008.
Other IT pivotals showed mixed trend. Satyam Computer Services
(down 1.87% to Rs 349.70), and TCS (down 2.88% to Rs 728), slipped.
The BSE IT index lost 0.58% to 3,524.32.
However India's third largest software services firm Wipro rose
1.15% to Rs 396.25 on reports the company's software business arm
Wipro Technologies and Copal Partners have expressed interest to
bid for the Indian back-office unit of Lehman Brothers.
State-run oil refiners slipped after crude oil price rebounded from
a 7-month low. Indian Oil Corporation (down 5.30% at Rs 396), BPCL
(down 7.02% at Rs 336.20), and HPCL (down 5.45% at Rs 235.25),
slipped. However Cairn India galloped 4.28% to Rs 207.
ICICI Bank was the top traded counter on BSE with a turnover of Rs
401.80 crore followed by United Spirits (Rs 341.76 crore), Reliance
Capital (Rs 307.75 crore), Reliance Industries (Rs 265.54 crore)
and Educomp Solutions(Rs 249.06 crore), in that order.
Reliance Natural Resources led the volumes chart on BSE clocking
volumes of 1.41 crore shares followed by IFCI (1.05 crore shares),
ICICI Bank (72.12 lakh shares), Austral Coke & Projects (62.27 lakh
shares) and Chambal Fertilisers (60.31 lakh shares) in that order.
Jaipan Industries was locked at upper limit of 5% of Rs 168.10, a
lifetime high, extending gains for the 24th trading session in a
row. The Jaipan stock has surged 220.49% in past 24 trading session
to Rs 168.10 today from Rs 52.45 on 12 August 2008.
Breadth turns negative
Fresh selling pulled key benchmark indices to day's low in early
afternoon trade. But the market soon cut losses. The BSE 30-share
Sensex was down 123.95 points. The market breadth turned negative
after firm start. Refinery shares slipped after crude oil rebounded
from a 7-month low. However auto pivotals gained. Tata Steel staged
a smart recovery from early low.
The US Federal Reserve in a meeting on Tuesday, 16 September 2008
announced an $85 billion rescue plan to help American International
Group in exchange for a 79.9% stake. The deal would avoid the
biggest corporate bankruptcy ever and follows a government bailout
of mortgage lenders Freddie Mac and Fannie Mae earlier this month
Meanwhile, the US Federal Reserve at its policy meet on Tuesday, 16
September 2008, kept its target for the federal funds rate at 2%.
Fed said that the strains in financial markets have increased
significantly and labour markets have weakened further. Economic
growth appears to have slowed recently, partly reflecting a
softening of household spending.
At 12:25 IST, the BSE 30-share Sensex was down 123.95 points or
0.92% to 13,394.85. The Sensex opened with a upward gap of 101.94
points at 13,620.74, which is also its day's high so far, boosted
by Fed's rescue plan for AIG. At the day's low of 13,309.67 hit in
early afternoon trade, the Sensex lost 209.13 points.
The S&P CNX Nifty lost 34.70 points or 0.68% to 4,040.20.
National Stock Exchange (NSE) on Tuesday, 16 September 2008, said
there are no outstanding open positions/settlement obligations of
Lehman Brothers Securities currently in the cash market segment and
derivatives segment of NSE. Lehman Brothers Securities can operate
only in the cash market segment on pre-funding of their trades, NSE
said.
The Reserve Bank of India (RBI) on late Tuesday, 16 September 2008
stepped in with measures to support the rupee -- which has been
battered to almost 47 against the dollar -- and supply cash in the
money market. The move will increase dollar supply and lower banks'
borrowing cost in the overnight call money market. RBI has hiked
the maximum interest that banks can pay on NRI deposits by 50 basis
points for dollar as well as rupee deposits.
The market breadth turned negative on BSE with 1234 shares
declining as compared to 1076 that advanced. 78 remained unchanged.
The BSE Mid-Cap index fell 0.25% to 5,204.39 and the BSE Small-Cap
index rose 0.11% to 6,296.47
The total turnover on BSE amounted to Rs 2406 crore by 12:30 IST as
compared to Rs 1631 crore by 11:30 IST
Among the 30-member Sensex pack, 23 slipped while the rest gained.
State-run oil refiners slipped after crude oil price rebounded from
a 7-month low. Indian Oil Corporation (down 2.97% at Rs 405.75),
BPCL (down 5.97% at Rs 340), and HPCL (down 3.58% at Rs 239.90),
slipped. However Cairn India galloped 3.63% to Rs 205.70
US light crude for October 2008 delivery gained $3.15 to $94.30 a
barrel today, 17 September 2008, following a $85 billion bailout of
American International Group sparked a relief rally on Wall Street.
Auto shares gained on fresh buying. India's top truck maker by
sales Tata Motors rose 0.78% to Rs 401.50. The company reportedly
paid lower advance tax to Rs 75 crore in Q2 September 2008 as
compared to Rs 190 crore in Q2 September 2007.
Mahindra & Mahindra, the country's top tractor maker by sales
gained 0.70% to Rs 573. The company reportedly paid higher advance
tax of Rs 116 crore in Q2 September 2008 as compared to Rs 83 crore
in Q2 September 2007.
India's top oil exploration firm by market capitalisation Oil and
Natural Gas Corporation (ONGC) gained 3.18% to Rs 983, after the
company said it has agreed to give Rocksource ASA, a Norwegian
company, 10% participating interest in deep water block in the
eastern offshore. It was the top gainer from Sensex pack.
Most IT pivotals held firm. Infosys (up 2.57% to Rs 1598.05), Wipro
(up 0.29% to Rs 392.90), and Satyam Computer Services (up 1.72% to
Rs 362.45) gained.
However India's largest software services exporter TCS slipped
0.87% to Rs 743 despite reports of the company paying higher
advance tax to Rs 120 crore in Q2 September 2008 as compared to Rs
20 crore in Q2 September 2007.
Ranbaxy Laboratories, India's top drug maker by sales plunged 6.86%
to Rs 378.25 and was the top loser from Sensex pack. The stock
tumbled on reports the US government has banned more than 30
generic drugs made by the company citing poor quality in two of its
Indian factories. The stock was already on a sustained downtrend
ever since the Japanese drug maker Daiichi Sankyo's open offer to
acquire an additional 20% stake at Rs 737 a share in the company
ended on 4 September 2008.
India's largest private sector bank in terms of net profit ICICI
Bank plunged 5.78% to Rs 557.15 on reports the bank will have to
take a hit of $28 million on account of the additional provisioning
that ICICI Bank's UK subsidiary will have to make after Lehman
Brothers Holdings, the fourth-largest investment bank filing for
bankruptcy.
Other banking pivotals also edged lower. India's largest state run
bank in terms of net assets State Bank of India fell 2.40% to Rs
1547.40. As per recent reports, the bank paid 48% higher advance
tax to Rs 1560 crore in Q2 September 2008 over Q2 September 2007.
India's second largest private sector bank in terms of net profit
HDFC Bank fell 1.79% to Rs 1208.05
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 2.05% to Rs
1888.90 on 5.94 lakh shares. The stock had hit a 52-week low of Rs
1800 in intra-day trade on Tuesday, 16 September 2008. As per
reports, the company is expected to start pumping gas from November
2008 from its deep-water field off the east coast.
India's largest private sector steel maker by sales, Tata Steel
recovered sharply from day's low of Rs 467.95. It was now down
0.48% to Rs 485.30. As per reports, the company paid lower advance
tax to Rs 300 crore in Q2 September 2008 as compared to Rs 350
crore in Q2 September 2007.
Sterlite Industries (down 4% to Rs 458.60), ITC (down 3.63% to Rs
187.20), and Grasim (down 1.65% to Rs 1895.10), edged lower from
the Sensex pack.
Aurobindo Pharma rose 0.49% to Rs 310.05 after the company said it
has received tentative approval from US Food & Drug Administration
for Abacavir sulphate tablets in the strength of 60 miligram. The
company made this announcement during trading hours today, 17
September 2008.
JSW Steel rose 1.40% to Rs 655.95 on reports the company expects
prices and demand for the metal to revive soon as companies lower
production.
Asian markets were trading mixed today, 17 September 2008. Key
benchmark indices in China, Hong Kong and Singapore, were down by
between 0.86% and 1.85%. However indices in Japan, Taiwan, and
South Korea rose by between 0.77% and 2.84%.
afternoon trade. But the market soon cut losses. The BSE 30-share
Sensex was down 123.95 points. The market breadth turned negative
after firm start. Refinery shares slipped after crude oil rebounded
from a 7-month low. However auto pivotals gained. Tata Steel staged
a smart recovery from early low.
The US Federal Reserve in a meeting on Tuesday, 16 September 2008
announced an $85 billion rescue plan to help American International
Group in exchange for a 79.9% stake. The deal would avoid the
biggest corporate bankruptcy ever and follows a government bailout
of mortgage lenders Freddie Mac and Fannie Mae earlier this month
Meanwhile, the US Federal Reserve at its policy meet on Tuesday, 16
September 2008, kept its target for the federal funds rate at 2%.
Fed said that the strains in financial markets have increased
significantly and labour markets have weakened further. Economic
growth appears to have slowed recently, partly reflecting a
softening of household spending.
At 12:25 IST, the BSE 30-share Sensex was down 123.95 points or
0.92% to 13,394.85. The Sensex opened with a upward gap of 101.94
points at 13,620.74, which is also its day's high so far, boosted
by Fed's rescue plan for AIG. At the day's low of 13,309.67 hit in
early afternoon trade, the Sensex lost 209.13 points.
The S&P CNX Nifty lost 34.70 points or 0.68% to 4,040.20.
National Stock Exchange (NSE) on Tuesday, 16 September 2008, said
there are no outstanding open positions/settlement obligations of
Lehman Brothers Securities currently in the cash market segment and
derivatives segment of NSE. Lehman Brothers Securities can operate
only in the cash market segment on pre-funding of their trades, NSE
said.
The Reserve Bank of India (RBI) on late Tuesday, 16 September 2008
stepped in with measures to support the rupee -- which has been
battered to almost 47 against the dollar -- and supply cash in the
money market. The move will increase dollar supply and lower banks'
borrowing cost in the overnight call money market. RBI has hiked
the maximum interest that banks can pay on NRI deposits by 50 basis
points for dollar as well as rupee deposits.
The market breadth turned negative on BSE with 1234 shares
declining as compared to 1076 that advanced. 78 remained unchanged.
The BSE Mid-Cap index fell 0.25% to 5,204.39 and the BSE Small-Cap
index rose 0.11% to 6,296.47
The total turnover on BSE amounted to Rs 2406 crore by 12:30 IST as
compared to Rs 1631 crore by 11:30 IST
Among the 30-member Sensex pack, 23 slipped while the rest gained.
State-run oil refiners slipped after crude oil price rebounded from
a 7-month low. Indian Oil Corporation (down 2.97% at Rs 405.75),
BPCL (down 5.97% at Rs 340), and HPCL (down 3.58% at Rs 239.90),
slipped. However Cairn India galloped 3.63% to Rs 205.70
US light crude for October 2008 delivery gained $3.15 to $94.30 a
barrel today, 17 September 2008, following a $85 billion bailout of
American International Group sparked a relief rally on Wall Street.
Auto shares gained on fresh buying. India's top truck maker by
sales Tata Motors rose 0.78% to Rs 401.50. The company reportedly
paid lower advance tax to Rs 75 crore in Q2 September 2008 as
compared to Rs 190 crore in Q2 September 2007.
Mahindra & Mahindra, the country's top tractor maker by sales
gained 0.70% to Rs 573. The company reportedly paid higher advance
tax of Rs 116 crore in Q2 September 2008 as compared to Rs 83 crore
in Q2 September 2007.
India's top oil exploration firm by market capitalisation Oil and
Natural Gas Corporation (ONGC) gained 3.18% to Rs 983, after the
company said it has agreed to give Rocksource ASA, a Norwegian
company, 10% participating interest in deep water block in the
eastern offshore. It was the top gainer from Sensex pack.
Most IT pivotals held firm. Infosys (up 2.57% to Rs 1598.05), Wipro
(up 0.29% to Rs 392.90), and Satyam Computer Services (up 1.72% to
Rs 362.45) gained.
However India's largest software services exporter TCS slipped
0.87% to Rs 743 despite reports of the company paying higher
advance tax to Rs 120 crore in Q2 September 2008 as compared to Rs
20 crore in Q2 September 2007.
Ranbaxy Laboratories, India's top drug maker by sales plunged 6.86%
to Rs 378.25 and was the top loser from Sensex pack. The stock
tumbled on reports the US government has banned more than 30
generic drugs made by the company citing poor quality in two of its
Indian factories. The stock was already on a sustained downtrend
ever since the Japanese drug maker Daiichi Sankyo's open offer to
acquire an additional 20% stake at Rs 737 a share in the company
ended on 4 September 2008.
India's largest private sector bank in terms of net profit ICICI
Bank plunged 5.78% to Rs 557.15 on reports the bank will have to
take a hit of $28 million on account of the additional provisioning
that ICICI Bank's UK subsidiary will have to make after Lehman
Brothers Holdings, the fourth-largest investment bank filing for
bankruptcy.
Other banking pivotals also edged lower. India's largest state run
bank in terms of net assets State Bank of India fell 2.40% to Rs
1547.40. As per recent reports, the bank paid 48% higher advance
tax to Rs 1560 crore in Q2 September 2008 over Q2 September 2007.
India's second largest private sector bank in terms of net profit
HDFC Bank fell 1.79% to Rs 1208.05
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 2.05% to Rs
1888.90 on 5.94 lakh shares. The stock had hit a 52-week low of Rs
1800 in intra-day trade on Tuesday, 16 September 2008. As per
reports, the company is expected to start pumping gas from November
2008 from its deep-water field off the east coast.
India's largest private sector steel maker by sales, Tata Steel
recovered sharply from day's low of Rs 467.95. It was now down
0.48% to Rs 485.30. As per reports, the company paid lower advance
tax to Rs 300 crore in Q2 September 2008 as compared to Rs 350
crore in Q2 September 2007.
Sterlite Industries (down 4% to Rs 458.60), ITC (down 3.63% to Rs
187.20), and Grasim (down 1.65% to Rs 1895.10), edged lower from
the Sensex pack.
Aurobindo Pharma rose 0.49% to Rs 310.05 after the company said it
has received tentative approval from US Food & Drug Administration
for Abacavir sulphate tablets in the strength of 60 miligram. The
company made this announcement during trading hours today, 17
September 2008.
JSW Steel rose 1.40% to Rs 655.95 on reports the company expects
prices and demand for the metal to revive soon as companies lower
production.
Asian markets were trading mixed today, 17 September 2008. Key
benchmark indices in China, Hong Kong and Singapore, were down by
between 0.86% and 1.85%. However indices in Japan, Taiwan, and
South Korea rose by between 0.77% and 2.84%.
IT pivotals gain
Key benchmark indices stayed subdued weighed by index heavyweights
Reliance Industries and ICICI Bank. Fresh selling had pulled
bourses lower despite firm start which was boosted by the US
Federal Reserve's bailout package for the beleaguered US insurer
American International Group (AIG). Meanwhile, the US Federal
Reserve kept its target for the federal funds rate at 2%.
The US Federal Reserve in a meeting on Tuesday, 16 September 2008
announced an $85 billion rescue plan to help American International
Group in exchange for a 79.9% stake. The deal would avoid the
biggest corporate bankruptcy ever and follows a government bailout
of mortgage lenders Freddie Mac and Fannie Mae earlier this month
Most IT pivotals were in demand. Banking shares showed mixed trend.
However Ranbaxy Laboratories slumped over 8% and ICICI Bank shed
over 4%. The market breadth was positive.
At 11:21 IST, the BSE 30-share Sensex was down 102.26 points or
0.76% to 13,416.59. The Sensex opened with a upward gap of 101.94
points at 13,620.74, which is also its day's high so far. At the
day's low of 13,329.98 hit in mid-morning trade, the Sensex lost
188.82 points.
The S&P CNX Nifty lost 29.75 points or 0.73% to 4,045.15.
The market breadth was positive on BSE with 1063 shares advancing
as compared to 994 that declined. 76 remained unchanged.
The total turnover on BSE amounted to Rs 1631 crore by 11:30 IST as
compared to Rs 517 crore by 10:30 IST
The Fed said that the strains in financial markets have increased
significantly and labour markets have weakened further. Economic
growth appears to have slowed recently, partly reflecting a
softening of household spending.
Meanwhile, Barclays has agreed to acquire US fourth largest
investment banking firm Lehman Brothers' North American investment
banking and capital markets businesses. Barclays said it would
acquire trading assets with an estimated value of 40 billion pounds
and trading liabilities worth 38 billion pounds. It will also
acquire Lehman's New York headquarters.
Among the 30-member Sensex pack, 18 slipped while the rest gained.
Ranbaxy Laboratories, India's top drug maker by sales plunged 7.48%
to Rs 375.70 and was the top loser from Sensex pack. The stock
tumbled on reports the US government has banned more than 30
generic drugs made by the company citing poor quality in two of its
Indian factories. The stock was already on a sustained downtrend
ever since the Japanese drug maker Daiichi Sankyo's open offer to
acquire an additional 20% stake at Rs 737 a share in the company
ended on 4 September 2008.
India's largest private sector bank in terms of net profit ICICI
Bank plunged 3.71% to Rs 569.55 on reports the bank will have to
take a hit of $28 million on account of the additional provisioning
that ICICI Bank's UK subsidiary will have to make after Lehman
Brothers Holdings, the fourth-largest investment bank filing for
bankruptcy.
Other banking pivotals saw divergent trend. India's largest state
run bank in terms of net assets State Bank of India fell 1.44% to
Rs 1563. As per recent reports, the bank paid 48% higher advance
tax to Rs 1560 crore in Q2 September 2008 over Q2 September 2007.
India's second largest private sector bank in terms of net profit
HDFC Bank rose 0.12% to Rs 1231.50
India's largest private sector steel maker by sales, Tata Steel
fell 3.19% to Rs 472. As per reports, the company paid lower
advance tax to Rs 300 crore in Q2 September 2008 as compared to Rs
350 crore in Q2 September 2007.
Sterlite Industries (down 4% to Rs 458.60), Hindustan Unilever
(down 1.68% to Rs 236.70), and Grasim (down 1.90% to Rs 1890),
edged lower from the Sensex pack.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 2.05% to Rs
1888.90 on 4.48 lakh shares. The stock had hit a 52-week low of Rs
1800 in intra-day trade on Tuesday, 16 September 2008.
Most IT pivotals gained on fresh buying. India's second largest
software services exporter Infosys surged 3.73% to Rs 1622.60 and
was the top gainer among the Sensex pack.
Wipro (up 1.57% to Rs 397.70), Satyam Computer Services (up 2.71%
to Rs 366) and gained.
However India's largest software services exporter TCS slipped
0.21% to Rs 747.95 despite reports of the company paying higher
advance tax to Rs 120 crore in Q2 September 2008 as compared to Rs
20 crore in Q2 September 2007.
India's top oil exploration firm by market capitalisation Oil and
Natural Gas Corporation (ONGC) gained 2.76% to Rs 978.80, after the
company said it has agreed to give Rocksource ASA, a Norwegian
company, 10% participating interest in deep water block in the
eastern offshore.
Among the side counters, Mather & Platt Pumps (up 20% to Rs
168.60), Videocon (up 15.35% to Rs 38.70), and Prithvi Information
Systems (up 14.38% to Rs 98.80), surged.
Hydro S&S Industries galloped 7.93% to Rs 44.25 after the company
said its board has approved buyback of equity shares of the company
for an amount not exceeding Rs 2.63 crore. The company made this
announcement before trading hours today, 17 September 2008.
US light crude for October 2008 delivery gained $3.15 to $94.30 a
barrel today, 17 September 2008 as an $85 billion bailout of
American International Group sparked a relief rally on Wall Street.
Asian markets were trading mixed today, 17 September 2008. Key
benchmark indices in China, Hong Kong and Singapore, were down by
between 0.86% and 1.85%. However indices in Japan, Taiwan, and
South Korea rose by between 0.77% and 2.84%.
US markets rallied on Tuesday, 16 September 2008, on growing
optimism that US authorities may finance a rescue of insurer
American International Group (AIG). The Dow Jones Industrial
Average surged 141.51 points, or 1.30%, to 11,059.02, the Standard
& Poor's 500 Index rose 20.87 points, or 1.75%, to 1,213.57 and the
Nasdaq Composite index climbed 22.45 points, or 1.03%, to 2,202.36.
The US government announced rescue plan for AIG after trading
hours.
Back home, buying in index pivotals coupled with short covering
after five straight days of fall helped key benchmark indices erase
sharp early losses on Tuesday, 16 September 2008 in highly choppy
session. The BSE 30-share Sensex slipped 12.47 points or 0.09% at
13,518.80 and the S&P CNX Nifty rose 2 points or 0.05%, to 4074.90,
on that day.
Reliance Industries and ICICI Bank. Fresh selling had pulled
bourses lower despite firm start which was boosted by the US
Federal Reserve's bailout package for the beleaguered US insurer
American International Group (AIG). Meanwhile, the US Federal
Reserve kept its target for the federal funds rate at 2%.
The US Federal Reserve in a meeting on Tuesday, 16 September 2008
announced an $85 billion rescue plan to help American International
Group in exchange for a 79.9% stake. The deal would avoid the
biggest corporate bankruptcy ever and follows a government bailout
of mortgage lenders Freddie Mac and Fannie Mae earlier this month
Most IT pivotals were in demand. Banking shares showed mixed trend.
However Ranbaxy Laboratories slumped over 8% and ICICI Bank shed
over 4%. The market breadth was positive.
At 11:21 IST, the BSE 30-share Sensex was down 102.26 points or
0.76% to 13,416.59. The Sensex opened with a upward gap of 101.94
points at 13,620.74, which is also its day's high so far. At the
day's low of 13,329.98 hit in mid-morning trade, the Sensex lost
188.82 points.
The S&P CNX Nifty lost 29.75 points or 0.73% to 4,045.15.
The market breadth was positive on BSE with 1063 shares advancing
as compared to 994 that declined. 76 remained unchanged.
The total turnover on BSE amounted to Rs 1631 crore by 11:30 IST as
compared to Rs 517 crore by 10:30 IST
The Fed said that the strains in financial markets have increased
significantly and labour markets have weakened further. Economic
growth appears to have slowed recently, partly reflecting a
softening of household spending.
Meanwhile, Barclays has agreed to acquire US fourth largest
investment banking firm Lehman Brothers' North American investment
banking and capital markets businesses. Barclays said it would
acquire trading assets with an estimated value of 40 billion pounds
and trading liabilities worth 38 billion pounds. It will also
acquire Lehman's New York headquarters.
Among the 30-member Sensex pack, 18 slipped while the rest gained.
Ranbaxy Laboratories, India's top drug maker by sales plunged 7.48%
to Rs 375.70 and was the top loser from Sensex pack. The stock
tumbled on reports the US government has banned more than 30
generic drugs made by the company citing poor quality in two of its
Indian factories. The stock was already on a sustained downtrend
ever since the Japanese drug maker Daiichi Sankyo's open offer to
acquire an additional 20% stake at Rs 737 a share in the company
ended on 4 September 2008.
India's largest private sector bank in terms of net profit ICICI
Bank plunged 3.71% to Rs 569.55 on reports the bank will have to
take a hit of $28 million on account of the additional provisioning
that ICICI Bank's UK subsidiary will have to make after Lehman
Brothers Holdings, the fourth-largest investment bank filing for
bankruptcy.
Other banking pivotals saw divergent trend. India's largest state
run bank in terms of net assets State Bank of India fell 1.44% to
Rs 1563. As per recent reports, the bank paid 48% higher advance
tax to Rs 1560 crore in Q2 September 2008 over Q2 September 2007.
India's second largest private sector bank in terms of net profit
HDFC Bank rose 0.12% to Rs 1231.50
India's largest private sector steel maker by sales, Tata Steel
fell 3.19% to Rs 472. As per reports, the company paid lower
advance tax to Rs 300 crore in Q2 September 2008 as compared to Rs
350 crore in Q2 September 2007.
Sterlite Industries (down 4% to Rs 458.60), Hindustan Unilever
(down 1.68% to Rs 236.70), and Grasim (down 1.90% to Rs 1890),
edged lower from the Sensex pack.
India's largest private sector firm in terms of market
capitalization and oil refiner Reliance Industries fell 2.05% to Rs
1888.90 on 4.48 lakh shares. The stock had hit a 52-week low of Rs
1800 in intra-day trade on Tuesday, 16 September 2008.
Most IT pivotals gained on fresh buying. India's second largest
software services exporter Infosys surged 3.73% to Rs 1622.60 and
was the top gainer among the Sensex pack.
Wipro (up 1.57% to Rs 397.70), Satyam Computer Services (up 2.71%
to Rs 366) and gained.
However India's largest software services exporter TCS slipped
0.21% to Rs 747.95 despite reports of the company paying higher
advance tax to Rs 120 crore in Q2 September 2008 as compared to Rs
20 crore in Q2 September 2007.
India's top oil exploration firm by market capitalisation Oil and
Natural Gas Corporation (ONGC) gained 2.76% to Rs 978.80, after the
company said it has agreed to give Rocksource ASA, a Norwegian
company, 10% participating interest in deep water block in the
eastern offshore.
Among the side counters, Mather & Platt Pumps (up 20% to Rs
168.60), Videocon (up 15.35% to Rs 38.70), and Prithvi Information
Systems (up 14.38% to Rs 98.80), surged.
Hydro S&S Industries galloped 7.93% to Rs 44.25 after the company
said its board has approved buyback of equity shares of the company
for an amount not exceeding Rs 2.63 crore. The company made this
announcement before trading hours today, 17 September 2008.
US light crude for October 2008 delivery gained $3.15 to $94.30 a
barrel today, 17 September 2008 as an $85 billion bailout of
American International Group sparked a relief rally on Wall Street.
Asian markets were trading mixed today, 17 September 2008. Key
benchmark indices in China, Hong Kong and Singapore, were down by
between 0.86% and 1.85%. However indices in Japan, Taiwan, and
South Korea rose by between 0.77% and 2.84%.
US markets rallied on Tuesday, 16 September 2008, on growing
optimism that US authorities may finance a rescue of insurer
American International Group (AIG). The Dow Jones Industrial
Average surged 141.51 points, or 1.30%, to 11,059.02, the Standard
& Poor's 500 Index rose 20.87 points, or 1.75%, to 1,213.57 and the
Nasdaq Composite index climbed 22.45 points, or 1.03%, to 2,202.36.
The US government announced rescue plan for AIG after trading
hours.
Back home, buying in index pivotals coupled with short covering
after five straight days of fall helped key benchmark indices erase
sharp early losses on Tuesday, 16 September 2008 in highly choppy
session. The BSE 30-share Sensex slipped 12.47 points or 0.09% at
13,518.80 and the S&P CNX Nifty rose 2 points or 0.05%, to 4074.90,
on that day.
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