Bearish sentiment prevailed today as key benchmark indices snapped
last two days' rally on weak global cues. Sensex fell close to 600
points at the day's lows hit in late trade. The barometer index had
risen 459.92 points in the preceding two trading sessions. Index
heavyweight Reliance Industries (RIL) hit 52-week low, falling more
than 7.5%. Tata Steel fell more than 10% while Sterlite Industries
fell more than 8.5%. Ranbaxy Laboratories rose more than 4.5%. The
market breadth was weak.
Concerns about the effectiveness of the US bailout plan in averting
a recession in the global recession weighed on investor sentiments.
The US Senate on Wednesday, 1 October 2008, passed the government's
financial rescue plan. On the same day, the Senate also approved
the Indo-US nuclear deal.
US stock futures were trading higher. Nasdaq futures were up 8
points and Dow Jones futures gained 55 points. European markets
which opened after Indian market were in green. France's CAC 40,
and UK's FTSE 100 were down between 0.17% to 0.23%. However,
Germany's DAX was up 0.13%.
Asian stocks dropped today, 3 October 2008, on fears that the
global economy will worsen even if the US Congress passes a $700
billion bank rescue bill. Key benchmark indices in Hong Kong,
Japan, Singapore were down by between 1.39% to 2.9%. The key
benchmark index in Taiwan rose 0.68% as state funds bought index
heavyweights to boost the market. Stock markets in China and South
Korea were closed.
The BSE 30-share Sensex plunged 529.35 points or 4.05% to
12,526.32. The index shed 583.06 points at the day's low of
12,472.61, hit in late trade. The Sensex fell 54.48 points at day's
high of 13,001.19, in early trade.
The S&P CNX Nifty ended down 132.45 points or 3.35% to 3,818.30.
BSE clocked a turnover of Rs 4,767 crore today as compared to a
turnover of Rs 4,358.87 crore on 1 October 2008.
Nifty October 2008 futures were at 3851, at a premium of 32.70
points as compared to spot closing of 3818.30. NSE's futures &
options (F&O) segment turnover was Rs 44,983.07 crore, which was
lower than Rs 47,733.85 crore on Wednesday, 1 October 2008.
The BSE Sensex is down 7,760.67 points or 38.25% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 8,680.45 points or 40.93% below its all-time high of
21,206.77 struck on 10 January 2008.
The BSE Mid-Cap index was down 3.03% at 4,677.80 and the BSE
Small-Cap index was down 2.52% at 5,465.40.
BSE Metal index (down 7.01% to 8,417.11), BSE Oil & Gas index (down
5.74% to 8,426.67), BSE Consumer Durbles index (down 4.24% to
2,887.66), underperformed Sensex.
BSE FMCG index (down 0.49% to 2,180.14), BSE Auto index (down 0.91%
to 3,654.25), BSE HealthCare index (down 1.28% to 3,663.42), BSE
PSU index (down 2.28% to 6,171.50), BSE Power index (down 2.5% to
2,227.68), BSE Realty index (down 2.84% to 3,329.85), BSE Capital
Goods index (down 3.34% to 10,238.99), BSE IT index (down 3.34% to
3,110.28), BSE Teck index (down 3.39% to 2,523.49), BSE Bankex
(down 3.88% to 6,428.95), outperformed Sensex.
The market breadth was weak on BSE with 669 shares advancing as
compared to 1,924 that declined. 51 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries fell 7.67% to Rs 1,760.95. The
stock hit a 52-week low of Rs 1,745.10 today.
Metal stocks dropped after commodity prices fell overnight on fears
the global economic slowdown will hurt demand. Sterlite Industries
(down 7.84% to Rs 395.75), Steel Authority of India (down 7.09% to
Rs 114.65), National Aluminum Company (down 5.52% to Rs 349.20),
Hindalco Industries (down 0.86% to Rs 97.70), Hindustan Zinc (down
6.91% to Rs 404.80), edged lower.
The world's sixth largest steel maker Tata Steel fell 10.22% to Rs
393.80 and was the top loser from the Sensex pack. The company said
on Wednesday, 1 October 2008 its Singapore-based unit has agreed to
buy 19.9% stake in Canadian miner New Millenium Capital Corporation
for $22.6 million (Rs 106 crore).
ICICI Bank (down 8.51% to Rs 504.50), Tata Power Company (down
6.13% to Rs 888.50), Reliance Infrastructure (down 5.15% to Rs
741.25), HDFC (down 5.57% to Rs 2,081.85), Bharti Airtel (down
4.25% to Rs 756.45), edged lower from the Sensex pack.
Hindustan Unilever (up 0.81% to Rs 256.15) and Mahindra & Mahindra
(up 1.7% to Rs 515.15) edged higher from the Sensex pack.
India's largest drug maker by sales Ranbaxy Laboratories surged
4.83% to Rs 263.85 on reports the US Department of Justice may
withdraw the motion against the company next week in a local court
in the US. It was the major gainer from Sensex pack.
India's second largest IT services Infosys fell 4.33% to Rs
1,390.95. The stock recovered from session's low of Rs 1,382. Axon
raised the pressure on Indian outsourcer Infosys on Thursday, 2
October 2008, to raise its offer for the UK-based consultancy group
by recommending the counter-bid of HCL Technologies to its
shareholders.
HCL last week trumped Infosys's 600 pence per share bid for Axon
with a cash offer of 650 pence, which values Axon at £441m ($780m),
8.3 % higher than the Infosys bid.
India's largest commercial vehicle maker by sales Tata Motors
declined 2.52% to Rs 330.70. Tata Motors' sales rose 2.7% to 49,647
units in September 2008 over September 2007. Sales of commercial
vehicles rose 6% to 28,648 units in September 2008 over September
2007. Sales of passenger vehicles declined 2.5% to 16,586 units in
September 2008 over September 2007.
Cals Refineries clocked the highest volume of 1.23 crore shares on
BSE. Reliance Natural Resources (1.04 crore shares), IFCI (67.50
lakh shares), Chambal Fertilisers and Chemicals (51.08 lakh shares)
and Reliance Petroleum (49.2 lakh shares) were the other volume
toppers in that order.
Reliance Industries clocked the highest turnover of Rs 649.31 crore
on BSE. Reliance Capital (Rs 313.20 crore), Bharti Airtel (Rs
234.49 crore), ICICI Bank (Rs 207.31 crore) and Axis Bank (Rs
181.18 crore) were the other turnover toppers in that order.
The US Senate on Wednesday, 1 October 2008, passed the government's
financial rescue plan after the House of Representatives rejected
it in its original form. The House is expected to vote on the
revised bill on Friday, 3 October 2008. Under the plan, the
Treasury would buy illiquid assets held by financial institutions,
in the hope of restoring confidence and thawing credit markets
vital to the wider economy.
The Indo-US nuclear deal on Wednesday, 1 October 2008, secured the
approval of the US Senate which overwhelmingly voted a bill
rejecting all the killer amendments and paving the way for its
implementation. The landmark civil nuclear cooperation agreement,
entered into between Prime Minister Manmohan Singh and US President
George W. Bush in 2005, secured 86 votes while 13 Senators voted
against it. The legislation, which has already been cleared by the
House of Representatives, will now head to the White House for Mr.
Bush signing it into a law.
Saturday, October 4, 2008
Tuesday, September 30, 2008
Market recovers after weak start
Key benchmark indices opened weak mirroring carnage in global
markets triggered by US lawmakers voting aganist the $700 billion
financial rescue plan of the US government. The market, however,
staged a strong rebound from lower level. The BSE 30-share Sensex
was down 134.06 points. Sensex came off from a 2-year low and Nifty
recovered from 17-month low.
IT stocks slumped. Jaiprakash Associates and Tata Steel were down
more than 5% each. Reliance Communications and Tata Power Company
down more than 4% each. ICICI Bank rose snapping yesterday's sharp
fall. Asian markets which opened before Indian market were weak.
Meanwhile, global central banks on Tuesday, 30 September 2008, more
than doubled the amount of dollar funding to $620 billion, but the
move showed no signs of thawing the freeze in money markets where
banks are hoarding cash and bracing for more trouble ahead in the
deepening year-long credit crisis.
At 10:18 IST, the BSE 30-share Sensex was down 134.06 points or
1.06% to 12,460.22. The index shed 442.2 points at the day's low of
12,153.55, hit in early trade, its lowest level in two years. The
Sensex edged down 42.2 points at day's high of 15,523.49, in early
trade
The S&P CNX Nifty was down 32.10 points or 0.83% to 3,817.95. Nifty
hit a low of 3,715.05 in early trade, its lowest level in 17
months.
The BSE Mid-Cap index was down 3.2% at 4,577.98 and the BSE
Small-Cap index was down 3.45% at 5,361.36.
The market breadth was very weak on BSE with 167 shares advancing
as compared to 1,204 that declined. 21 shares remained unchanged.
India's largest privates sector bank by market capitalization and
oil refiner Reliance Industries fell 1.24% to Rs 1,909.
India's largest private sector bank in terms of net profit ICICI
Bank rose 2.26% to Rs 504.45. The stock had slumped 12.11% to Rs
493.30 yesterday despite the bank clarifying that 98% of ICICI Bank
UK PLC's non-India investment book is rated investment grade and
above. ICICI Bank UK PLC has zero exposure to US subprime-credit,
it said.
ONGC (up 1.14% to Rs 1,035), State Bank of India (up 0.31% to Rs
1,409.30), HDFC (up 1.34% to Rs 2,060.25), Reliance Infrastructure
(up 0.45% to Rs 797.50) and Mahindra & Mahindra (up 0.59% to Rs
505) edged higher from the Sensex pack.
Jaiprakash Associates (down 5.67% to Rs 100.65), Tata Steel (down
5.03% to Rs 422.95), Reliance Communications (down 4.32% to Rs
312.20), Tata Power Company (down 4.38% to Rs 877) edged lower from
the Sensex pack.
IT stocks slumped. Infosys (down 3.38% to Rs 1,344.90), Satyam
Computer Services (down 4.65% to Rs 278.50), Tata Consultancy
Services (down 3.66% to Rs 594) and Wipro (down 4.37% to Rs 328.10)
edged lower.
markets triggered by US lawmakers voting aganist the $700 billion
financial rescue plan of the US government. The market, however,
staged a strong rebound from lower level. The BSE 30-share Sensex
was down 134.06 points. Sensex came off from a 2-year low and Nifty
recovered from 17-month low.
IT stocks slumped. Jaiprakash Associates and Tata Steel were down
more than 5% each. Reliance Communications and Tata Power Company
down more than 4% each. ICICI Bank rose snapping yesterday's sharp
fall. Asian markets which opened before Indian market were weak.
Meanwhile, global central banks on Tuesday, 30 September 2008, more
than doubled the amount of dollar funding to $620 billion, but the
move showed no signs of thawing the freeze in money markets where
banks are hoarding cash and bracing for more trouble ahead in the
deepening year-long credit crisis.
At 10:18 IST, the BSE 30-share Sensex was down 134.06 points or
1.06% to 12,460.22. The index shed 442.2 points at the day's low of
12,153.55, hit in early trade, its lowest level in two years. The
Sensex edged down 42.2 points at day's high of 15,523.49, in early
trade
The S&P CNX Nifty was down 32.10 points or 0.83% to 3,817.95. Nifty
hit a low of 3,715.05 in early trade, its lowest level in 17
months.
The BSE Mid-Cap index was down 3.2% at 4,577.98 and the BSE
Small-Cap index was down 3.45% at 5,361.36.
The market breadth was very weak on BSE with 167 shares advancing
as compared to 1,204 that declined. 21 shares remained unchanged.
India's largest privates sector bank by market capitalization and
oil refiner Reliance Industries fell 1.24% to Rs 1,909.
India's largest private sector bank in terms of net profit ICICI
Bank rose 2.26% to Rs 504.45. The stock had slumped 12.11% to Rs
493.30 yesterday despite the bank clarifying that 98% of ICICI Bank
UK PLC's non-India investment book is rated investment grade and
above. ICICI Bank UK PLC has zero exposure to US subprime-credit,
it said.
ONGC (up 1.14% to Rs 1,035), State Bank of India (up 0.31% to Rs
1,409.30), HDFC (up 1.34% to Rs 2,060.25), Reliance Infrastructure
(up 0.45% to Rs 797.50) and Mahindra & Mahindra (up 0.59% to Rs
505) edged higher from the Sensex pack.
Jaiprakash Associates (down 5.67% to Rs 100.65), Tata Steel (down
5.03% to Rs 422.95), Reliance Communications (down 4.32% to Rs
312.20), Tata Power Company (down 4.38% to Rs 877) edged lower from
the Sensex pack.
IT stocks slumped. Infosys (down 3.38% to Rs 1,344.90), Satyam
Computer Services (down 4.65% to Rs 278.50), Tata Consultancy
Services (down 3.66% to Rs 594) and Wipro (down 4.37% to Rs 328.10)
edged lower.
Market headed for a slump on US bailout plan denial
Key benchmark indices are headed for a plunge mirroring global carnage triggered post rejection of the $700 billion financial rescue plan of the US government. Singapore Nifty futures were trading at over 200 points discount pointing to a sharp gap-down opening.
On Monday, 29 September 2008, the House of Representatives voted down the US government's financial rescue plan intended to restore confidence in the US banking system. The House rejected by a vote of 228-205, triggering a wide based sell-off in US markets. The rejection of the US plan has heightened concerns that more banks will fail and global credit-losses will widen, leading to a global slowdown.
US stocks slumped on Monday, 29 September 2008 as the House of Representatives rejected the $700 billion bailout plan to rescue the financial system. The S&P 500 index tumbled the most since the 1987 crash and the Dow Jones saw it's biggest single day point fall ever. The Dow Jones Industrial Average plunged 777.68 points, or 6.98%, to 10,365.45. The S&P 500 index fell 106.62 points, or nearly 9%, to 1,106.39. The Nasdaq Composite index declined 199.61 points, more than 9%, to 1,983.73.
US light crude for November 2008 delivery fell 59 cents to $95.78 a barrel today, 30 September 2008 plunging $10.52 its second biggest fall since 23 April 2003, on the previous day.
Asian markets were trading weak today, 30 September 2008, post overnight bloodbath on the US markets. Hong Kong's Hang Seng plunged 4.48% or 801.31 points at 17,079.37, Japan's Nikkei tumbled 4.64% or 544.54 points at 11,199.07, Singapore's Straits Times fell 3.77% or 88.95 points at 2,272.39, South Korea's Seoul Composite declined 2.56% or 37.22 points at 1,419.14 and Taiwan's Taiwan Weighted was down 5.82% or 344.81 points at 5,584.82.
Back home, key indices plunged on Monday, 29 September 2008, to multi-month lows, on uncertainty about the $700 billion US bailout package. The BSE 30-share Sensex plunged 506.43 points or 3.87% to 12,595.75 and The S&P CNX Nifty was down 135.20 points or 3.39% to 3,850.05, on that day.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 476.94 crore while mutual funds bought shares worth Rs 554.82 crore on Monday, 29 September 2008, according to provisional data on NSE.
On Monday, 29 September 2008, the House of Representatives voted down the US government's financial rescue plan intended to restore confidence in the US banking system. The House rejected by a vote of 228-205, triggering a wide based sell-off in US markets. The rejection of the US plan has heightened concerns that more banks will fail and global credit-losses will widen, leading to a global slowdown.
US stocks slumped on Monday, 29 September 2008 as the House of Representatives rejected the $700 billion bailout plan to rescue the financial system. The S&P 500 index tumbled the most since the 1987 crash and the Dow Jones saw it's biggest single day point fall ever. The Dow Jones Industrial Average plunged 777.68 points, or 6.98%, to 10,365.45. The S&P 500 index fell 106.62 points, or nearly 9%, to 1,106.39. The Nasdaq Composite index declined 199.61 points, more than 9%, to 1,983.73.
US light crude for November 2008 delivery fell 59 cents to $95.78 a barrel today, 30 September 2008 plunging $10.52 its second biggest fall since 23 April 2003, on the previous day.
Asian markets were trading weak today, 30 September 2008, post overnight bloodbath on the US markets. Hong Kong's Hang Seng plunged 4.48% or 801.31 points at 17,079.37, Japan's Nikkei tumbled 4.64% or 544.54 points at 11,199.07, Singapore's Straits Times fell 3.77% or 88.95 points at 2,272.39, South Korea's Seoul Composite declined 2.56% or 37.22 points at 1,419.14 and Taiwan's Taiwan Weighted was down 5.82% or 344.81 points at 5,584.82.
Back home, key indices plunged on Monday, 29 September 2008, to multi-month lows, on uncertainty about the $700 billion US bailout package. The BSE 30-share Sensex plunged 506.43 points or 3.87% to 12,595.75 and The S&P CNX Nifty was down 135.20 points or 3.39% to 3,850.05, on that day.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 476.94 crore while mutual funds bought shares worth Rs 554.82 crore on Monday, 29 September 2008, according to provisional data on NSE.
Japan Nikkei down 4.6 pct after hitting 3-yr low
Japan's Nikkei average tumbled 4.6 percent by midday on Tuesday after touching a three-year low following Wall Street's plunge after U.S. lawmakers rejected a $700 billion financial bailout plan. Exporters and banks were particularly hard hit as Tokyo followed the lead of the Dow Jones industrial average, which posted its largest point decline ever and its biggest daily percentage slide since the 1987 stock market crash. [.N]
The benchmark Nikkei .N225 fell as low as 11,160.83, or 4.9 percent, its lowest since June 2005. But by midsession it had pulled back slightly to 11,199.07, still a loss of more than 500 points, as investors took a break from selling. The broader Topix was down 4.6 percent at 1,076.57 after earlier falling 5 percent.
The benchmark Nikkei .N225 fell as low as 11,160.83, or 4.9 percent, its lowest since June 2005. But by midsession it had pulled back slightly to 11,199.07, still a loss of more than 500 points, as investors took a break from selling. The broader Topix was down 4.6 percent at 1,076.57 after earlier falling 5 percent.
GLOBAL MARKETS-Thwarted bailout hammers Asia stocks; yen up
* U.S. House rejects $700 bln bank bailout plan
* Yen rises to 4-month high vs U.S. dollar
* Wall St fear gauge climbs to record high
* Asian share markets dive 4-7 percent
HONG KONG, Sept 30 (Reuters) - Asian stocks dropped sharply and the yen hit a 4-month high on Tuesday, after U.S. lawmakers' shock rejection of a $700 billion effort to end financial panic triggered the biggest fall in the U.S. S&P 500 since the 1987 stock market crash.
Raw fear gripped markets, with oil prices diving by a tenth and gold prices rising for a third day, as investors faced hard realities that big economies could all be headed for a recession and the crisis of confidence in the bank industry could persist.
The failure of Washington's biggest and most comprehensive bid to keep the financial sector shockwaves from tearing up the real economy accelerated a move by investors from perceived risky assets to more stable holdings and even plain cash.
"Those voting against it saw, like me, that there's no kind cure for excessive leverage," said Brett Williams, credit analyst with BNP Paribas in Hong Kong.
"A modified bill may likely be represented for another vote, in an effort to save some face, but better to brace for violent price swings in all asset classes," he said in a note.
Japan's Nikkei share average .N225 tumbled 4.5 percent to a 2008 low, and the MSCI index of Asia-Pacific stocks outside Japan .MIAPJ0000PUS fell more than 3 percent, not far off a 26-month low.
Global equities have had a high inverse correlation with the Chicago Board Options Exchange Volatility index, also known as the VIX .VIX. The last 24 hours have been no exception.
The VIX -- Wall Street's fear gauge -- closed at a record high overnight, reflecting immense needs to hedge positions in U.S. equities.
Investors around the world have been scrambling to eliminate any risk in their portfolios, loading up on traditional safe harbours in times of extreme volatility like short-term U.S. government debt and gold.
Gold prices in the spot market edged up 0.25 percent to $905.50 an ounce, after touching a 2-month high overnight of $920 an ounce.
Yields on Treasury debt with maturities below 1-year climbed, with the 1-month bill yield sinking to 0.035 percent. The 3-month bill yield was at 0.7 percent .
Another asset that has gained favour during times of widespread uncertainty is the yen.
Though central banks outside the United States have had to set up special currency swap programs to meet high demand for U.S. dollar funding, investors have been turning to the yen as a haven.
"For currencies, the only trade in town with any staying power is risk aversion and the yen remains the favored pick," said Alan Ruskin, chief international strategist with RBS Greenwich Capital, in a note.
"I think the yen positive story remains clear-cut against all the major Europeans, and particularly the emerging world."
The dollar dropped to a 4-month low near 103.50 yen before edging back up to 104.24 yen. The euro was down a modest 0.1 percent at 149.80 yen and off 0.35 percent at $1.4368 .
The U.S. House of Representatives voted 228-205 against a compromise bailout plan that would have allowed the Treasury Department to buy up illiquid assets from struggling banks.
House Republicans, in particular, balked at spending so much taxpayer money just before the Nov. 4 presidential election.
Australian Prime Minister Kevin Rudd called for global pressure to convince U.S. lawmakers to put the world's economy ahead of the U.S. presidential race and pass the bailout package.
"These are turbulent times, these are worrying times," Rudd told a news conference in Canberra.
"The call we need to make is for them to put aside party politics and pass this package because it is necessary for the stabilisation of U.S. financial markets and global financial markets," he said. "All of our interests are at stake here."
Banks continued to be toppled or swallowed up by other firms, both in the United States and in Europe, as the financial crisis spread.
In the latest big deal, Citigroup (C.N: Quote, Profile, Research, Stock Buzz) agreed to buy Wachovia Corp's (WB.N: Quote, Profile, Research, Stock Buzz) US banking operations for $2.2 billion. [ID:nN29399473]
* Yen rises to 4-month high vs U.S. dollar
* Wall St fear gauge climbs to record high
* Asian share markets dive 4-7 percent
HONG KONG, Sept 30 (Reuters) - Asian stocks dropped sharply and the yen hit a 4-month high on Tuesday, after U.S. lawmakers' shock rejection of a $700 billion effort to end financial panic triggered the biggest fall in the U.S. S&P 500 since the 1987 stock market crash.
Raw fear gripped markets, with oil prices diving by a tenth and gold prices rising for a third day, as investors faced hard realities that big economies could all be headed for a recession and the crisis of confidence in the bank industry could persist.
The failure of Washington's biggest and most comprehensive bid to keep the financial sector shockwaves from tearing up the real economy accelerated a move by investors from perceived risky assets to more stable holdings and even plain cash.
"Those voting against it saw, like me, that there's no kind cure for excessive leverage," said Brett Williams, credit analyst with BNP Paribas in Hong Kong.
"A modified bill may likely be represented for another vote, in an effort to save some face, but better to brace for violent price swings in all asset classes," he said in a note.
Japan's Nikkei share average .N225 tumbled 4.5 percent to a 2008 low, and the MSCI index of Asia-Pacific stocks outside Japan .MIAPJ0000PUS fell more than 3 percent, not far off a 26-month low.
Global equities have had a high inverse correlation with the Chicago Board Options Exchange Volatility index, also known as the VIX .VIX. The last 24 hours have been no exception.
The VIX -- Wall Street's fear gauge -- closed at a record high overnight, reflecting immense needs to hedge positions in U.S. equities.
Investors around the world have been scrambling to eliminate any risk in their portfolios, loading up on traditional safe harbours in times of extreme volatility like short-term U.S. government debt and gold.
Gold prices in the spot market edged up 0.25 percent to $905.50 an ounce
Yields on Treasury debt with maturities below 1-year climbed, with the 1-month bill yield
Another asset that has gained favour during times of widespread uncertainty is the yen.
Though central banks outside the United States have had to set up special currency swap programs to meet high demand for U.S. dollar funding, investors have been turning to the yen as a haven.
"For currencies, the only trade in town with any staying power is risk aversion and the yen remains the favored pick," said Alan Ruskin, chief international strategist with RBS Greenwich Capital, in a note.
"I think the yen positive story remains clear-cut against all the major Europeans, and particularly the emerging world."
The dollar dropped to a 4-month low near 103.50 yen before edging back up to 104.24 yen
The U.S. House of Representatives voted 228-205 against a compromise bailout plan that would have allowed the Treasury Department to buy up illiquid assets from struggling banks.
House Republicans, in particular, balked at spending so much taxpayer money just before the Nov. 4 presidential election.
Australian Prime Minister Kevin Rudd called for global pressure to convince U.S. lawmakers to put the world's economy ahead of the U.S. presidential race and pass the bailout package.
"These are turbulent times, these are worrying times," Rudd told a news conference in Canberra.
"The call we need to make is for them to put aside party politics and pass this package because it is necessary for the stabilisation of U.S. financial markets and global financial markets," he said. "All of our interests are at stake here."
Banks continued to be toppled or swallowed up by other firms, both in the United States and in Europe, as the financial crisis spread.
In the latest big deal, Citigroup (C.N: Quote, Profile, Research, Stock Buzz) agreed to buy Wachovia Corp's (WB.N: Quote, Profile, Research, Stock Buzz) US banking operations for $2.2 billion. [ID:nN29399473]
Nikkei tumbles to 2008 low as crisis fears grow
TOKYO, Sept 30 (Reuters) - Japan's Nikkei stock average fell 4.8 percent on Tuesday and hit a new low for the year, following Wall Street's plunge after U.S. lawmakers rejected a $700 billion financial bailout plan.
Techs and banks were particularly hard hit, as Tokyo followed the lead of the Dow Jones industrial average, which posted its largest point decline ever and its biggest daily percentage slide since the 1987 stock market crash. [.N] Adding to the woes were troubles in Europe, where authorities were scrambling to prop up a slew of banks. "It's hard to imagine what's going to happen. It's kind of scary," said Masayoshi Okamoto, head of dealing at Jujiya Securities.
"In particular, European banks were putting up a front that nothing was wrong, but now they're falling one after another."
The benchmark Nikkei .N225 tumbled more than 500 points within the first half an hour of trade, touching a new year's low of 11,160.83. The broader Topix lost 5 percent, also hitting a new low for the year.
The U.S. House of Representatives on Monday unexpectedly rejected a plan to buy toxic assets from struggling banks that had been designed to revitalise strained lending markets. [ID:nN22402709]
Okamoto said moves in the foreign exchange market were likely to be key in determining where the Nikkei slide will stop.
The dollar fell to a four-month low against the yen as investors fled risky positions, hitting 103.53 yen on trading platform EBS before rising to around 104.26 yen by 0031 GMT.
Techs and banks were particularly hard hit, as Tokyo followed the lead of the Dow Jones industrial average, which posted its largest point decline ever and its biggest daily percentage slide since the 1987 stock market crash. [.N] Adding to the woes were troubles in Europe, where authorities were scrambling to prop up a slew of banks. "It's hard to imagine what's going to happen. It's kind of scary," said Masayoshi Okamoto, head of dealing at Jujiya Securities.
"In particular, European banks were putting up a front that nothing was wrong, but now they're falling one after another."
The benchmark Nikkei .N225 tumbled more than 500 points within the first half an hour of trade, touching a new year's low of 11,160.83. The broader Topix lost 5 percent, also hitting a new low for the year.
The U.S. House of Representatives on Monday unexpectedly rejected a plan to buy toxic assets from struggling banks that had been designed to revitalise strained lending markets. [ID:nN22402709]
Okamoto said moves in the foreign exchange market were likely to be key in determining where the Nikkei slide will stop.
The dollar fell to a four-month low against the yen as investors fled risky positions, hitting 103.53 yen on trading platform EBS before rising to around 104.26 yen
House rejects $700B bailout in stunning defeat, driving stocks down; Treasury vows more work
WASHINGTON (AP) -- In a vote that shook the government, Wall Street and markets around the world, the House on Monday defeated a $700 billion emergency rescue for the nation's financial system, leaving both parties' lawmakers and the Bush administration scrambling to pick up the pieces. Dismayed investors sent the Dow Jones industrials plunging 777 points, the most ever for a single day.
"We need to put something back together that works," a grim-faced Treasury Secretary Henry Paulson said after he and Federal Reserve Chairman Ben Bernanke joined in an emergency strategy session at the White House. On Capitol Hill, Democratic leaders said the House would reconvene Thursday, leaving open the possibility that it could salvage a reworked version.
Senate leaders showed no inclination to try to bring the measure to a vote before they could determine its fate in the House. President Bush, meanwhile, was scheduled to make a statement on the rescue plan Tuesday morning, the White House said.
All sides agreed the effort to bolster beleaguered financial markets, potentially the biggest government intervention since the Great Depression, could not be abandoned.
But in a remarkable display on Monday, a majority of House members slapped aside the best version their leaders and the administration had been able to come up with, bucking presidential speeches, pleading visits from Paulson and Federal Reserve Chairman Ben Bernanke and urgent warnings that the economy could nosedive without the legislation.
In the face of thousands of phone calls and e-mails fiercely opposing the measure, many lawmakers were not willing to take the political risk of voting for it just five weeks before the elections.
The bill went down, 228-205.
The House Web site was overwhelmed as millions of people sought information about the measure through the day.
The legislation the administration promoted would have allowed the government to buy bad mortgages and other sour assets held by troubled banks and other financial institutions. Getting those debts off their books should bolster those companies' balance sheets, making them more inclined to lend and ease one of the biggest choke points in a national credit crisis. If the plan worked, the thinking went, it would help lift a major weight off the national economy, which is already sputtering.
Hoping to pick up enough GOP votes for the next try, Republicans floated several ideas. One would double the $100,000 ceiling on federal deposit insurance. Another would end rules that require companies to devalue assets on their books to reflect the price they could get in the market.
In the meantime, Paulson said he would work with other regulators "to use all the tools available to protect our financial system and our economy."
"Our tool kit is substantial but insufficient," he said, indicating the government intended to continue piecemeal fixes while pressing Congress for broader action.
Stocks started plummeting on Wall Street even before Monday's vote was over, as traders watched the rescue measure going down on television. Meanwhile, lawmakers were watching them back.
As a digital screen in the House chamber recorded a cascade of "no" votes against the bailout, Democratic Rep. Joe Crowley of New York shouted news of the falling Dow Jones industrials. "Six hundred points!" he yelled, jabbing his thumb downward.
The final stock carnage far surpassed the 684-point drop on the first trading day after the Sept. 11, 2001, terror attacks.
In the House, "no" votes came from both the Democratic and Republican sides of the aisle. More than two-thirds of Republicans and 40 percent of Democrats opposed the bill. Several Democrats in close election fights waited until the last moment, then went against the bill as it became clear the vast majority of Republicans were opposing it.
Thirteen of the 19 most vulnerable Republicans and Democrats in an Associated Press analysis voted against the bill despite the pleas from Bush and their party leaders to pass it.
In all, 65 Republicans joined 140 Democrats in voting "yes," while 133 Republicans and 95 Democrats voted "no."
The overriding question was what to do next.
"The legislation may have failed; the crisis is still with us," said House Speaker Nancy Pelosi, D-Calif., in a news conference after the defeat. "What happened today cannot stand."
Republican leader John Boehner, R-Ohio, the minority leader, said he and other Republicans were pained to back the measure, but in light of the potential consequences for the economy and all Americans, "We need to renew our efforts to find a solution that Congress can support."
Sen. Chris Dodd, D-Conn., said there was scant time to reopen legislation that was the product of hard-fought bipartisan negotiations.
"What happened today was not a failure of a bill, it was a failure of will," said Dodd, the Banking Committee chairman. "Our hope is that cooler heads will prevail, people will think about what they did today and recognize that this is not just scare tactics -- it's reality."
A brutal round of partisan finger-pointing followed the vote.
Republicans blamed Pelosi's scathing speech near the close of the debate -- which assailed Bush's economic policies and a "right-wing ideology of anything goes, no supervision, no discipline, no regulation" of financial markets -- for the defeat. It was not much different from her usual tough words against the president and his party.
"We could have gotten there today had it not been for the partisan speech that the speaker gave on the floor of the House," Boehner said.
Rep. Roy Blunt, R-Mo., the whip, estimated that Pelosi's speech changed the minds of a dozen Republicans who might otherwise have supported the plan.
That amounted to an appalling accusation by Republicans against Republicans, said Rep. Barney Frank, D-Mass., chairman of the Financial Services Committee: "Because somebody hurt their feelings, they decide to punish the country."
More than a repudiation of Democrats, Frank said, Republicans' refusal to vote for the bailout was a rejection of their own president.
Indeed, many GOP lawmakers spurned Bush's urgent calls for action. "We have a gun to our head," said Rep. Ginny Brown-Waite, R-Fla., who opposed the bill. "This isn't legislation -- it's extortion."
The two men campaigning to replace Bush watched the situation closely -- from afar -- and demanded action.
In Iowa, Republican John McCain said his rival Barack Obama and congressional Democrats "infused unnecessary partisanship into the process. Now is not the time to fix the blame; it's time to fix the problem."
Obama said, "Democrats, Republicans, step up to the plate, get it done."
Lawmakers were under extraordinary pressure from powerful outside groups, which gave notice they considered the legislation a "key vote" -- one they would consider when rating members of Congress.
The U.S. Chamber of Commerce said opponents of the bailout would pay for their stance.
"Make no mistake: When the aftermath of congressional inaction becomes clear, Americans will not tolerate those who stood by and let the calamity happen," said R. Bruce Josten, the Chamber's top lobbyist, in a letter to members.
The conservative Club for Growth made a similar threat to supporters of the bailout.
"We're all worried about losing our jobs," Rep. Paul Ryan, R-Wis., declared in an impassioned speech in support of the bill before the vote. "Most of us say, 'I want this thing to pass, but I want you to vote for it -- not me.'"
"We're in this moment, and if we fail to do the right thing, Heaven help us," he said.
If Congress doesn't come around on a bailout, more pressure would fall on the Federal Reserve.
The Fed, which has been providing billions in short-term loans to squeezed banks to help them overcome credit stresses, could keep expanding those loans to encourage lending. And, it could keep working with other central banks to inject billions into financial markets overseas.
It also has the power to expand emergency lending to other types of companies and even to individuals if they are unable to secure adequate credit.
"We need to put something back together that works," a grim-faced Treasury Secretary Henry Paulson said after he and Federal Reserve Chairman Ben Bernanke joined in an emergency strategy session at the White House. On Capitol Hill, Democratic leaders said the House would reconvene Thursday, leaving open the possibility that it could salvage a reworked version.
Senate leaders showed no inclination to try to bring the measure to a vote before they could determine its fate in the House. President Bush, meanwhile, was scheduled to make a statement on the rescue plan Tuesday morning, the White House said.
All sides agreed the effort to bolster beleaguered financial markets, potentially the biggest government intervention since the Great Depression, could not be abandoned.
But in a remarkable display on Monday, a majority of House members slapped aside the best version their leaders and the administration had been able to come up with, bucking presidential speeches, pleading visits from Paulson and Federal Reserve Chairman Ben Bernanke and urgent warnings that the economy could nosedive without the legislation.
In the face of thousands of phone calls and e-mails fiercely opposing the measure, many lawmakers were not willing to take the political risk of voting for it just five weeks before the elections.
The bill went down, 228-205.
The House Web site was overwhelmed as millions of people sought information about the measure through the day.
The legislation the administration promoted would have allowed the government to buy bad mortgages and other sour assets held by troubled banks and other financial institutions. Getting those debts off their books should bolster those companies' balance sheets, making them more inclined to lend and ease one of the biggest choke points in a national credit crisis. If the plan worked, the thinking went, it would help lift a major weight off the national economy, which is already sputtering.
Hoping to pick up enough GOP votes for the next try, Republicans floated several ideas. One would double the $100,000 ceiling on federal deposit insurance. Another would end rules that require companies to devalue assets on their books to reflect the price they could get in the market.
In the meantime, Paulson said he would work with other regulators "to use all the tools available to protect our financial system and our economy."
"Our tool kit is substantial but insufficient," he said, indicating the government intended to continue piecemeal fixes while pressing Congress for broader action.
Stocks started plummeting on Wall Street even before Monday's vote was over, as traders watched the rescue measure going down on television. Meanwhile, lawmakers were watching them back.
As a digital screen in the House chamber recorded a cascade of "no" votes against the bailout, Democratic Rep. Joe Crowley of New York shouted news of the falling Dow Jones industrials. "Six hundred points!" he yelled, jabbing his thumb downward.
The final stock carnage far surpassed the 684-point drop on the first trading day after the Sept. 11, 2001, terror attacks.
In the House, "no" votes came from both the Democratic and Republican sides of the aisle. More than two-thirds of Republicans and 40 percent of Democrats opposed the bill. Several Democrats in close election fights waited until the last moment, then went against the bill as it became clear the vast majority of Republicans were opposing it.
Thirteen of the 19 most vulnerable Republicans and Democrats in an Associated Press analysis voted against the bill despite the pleas from Bush and their party leaders to pass it.
In all, 65 Republicans joined 140 Democrats in voting "yes," while 133 Republicans and 95 Democrats voted "no."
The overriding question was what to do next.
"The legislation may have failed; the crisis is still with us," said House Speaker Nancy Pelosi, D-Calif., in a news conference after the defeat. "What happened today cannot stand."
Republican leader John Boehner, R-Ohio, the minority leader, said he and other Republicans were pained to back the measure, but in light of the potential consequences for the economy and all Americans, "We need to renew our efforts to find a solution that Congress can support."
Sen. Chris Dodd, D-Conn., said there was scant time to reopen legislation that was the product of hard-fought bipartisan negotiations.
"What happened today was not a failure of a bill, it was a failure of will," said Dodd, the Banking Committee chairman. "Our hope is that cooler heads will prevail, people will think about what they did today and recognize that this is not just scare tactics -- it's reality."
A brutal round of partisan finger-pointing followed the vote.
Republicans blamed Pelosi's scathing speech near the close of the debate -- which assailed Bush's economic policies and a "right-wing ideology of anything goes, no supervision, no discipline, no regulation" of financial markets -- for the defeat. It was not much different from her usual tough words against the president and his party.
"We could have gotten there today had it not been for the partisan speech that the speaker gave on the floor of the House," Boehner said.
Rep. Roy Blunt, R-Mo., the whip, estimated that Pelosi's speech changed the minds of a dozen Republicans who might otherwise have supported the plan.
That amounted to an appalling accusation by Republicans against Republicans, said Rep. Barney Frank, D-Mass., chairman of the Financial Services Committee: "Because somebody hurt their feelings, they decide to punish the country."
More than a repudiation of Democrats, Frank said, Republicans' refusal to vote for the bailout was a rejection of their own president.
Indeed, many GOP lawmakers spurned Bush's urgent calls for action. "We have a gun to our head," said Rep. Ginny Brown-Waite, R-Fla., who opposed the bill. "This isn't legislation -- it's extortion."
The two men campaigning to replace Bush watched the situation closely -- from afar -- and demanded action.
In Iowa, Republican John McCain said his rival Barack Obama and congressional Democrats "infused unnecessary partisanship into the process. Now is not the time to fix the blame; it's time to fix the problem."
Obama said, "Democrats, Republicans, step up to the plate, get it done."
Lawmakers were under extraordinary pressure from powerful outside groups, which gave notice they considered the legislation a "key vote" -- one they would consider when rating members of Congress.
The U.S. Chamber of Commerce said opponents of the bailout would pay for their stance.
"Make no mistake: When the aftermath of congressional inaction becomes clear, Americans will not tolerate those who stood by and let the calamity happen," said R. Bruce Josten, the Chamber's top lobbyist, in a letter to members.
The conservative Club for Growth made a similar threat to supporters of the bailout.
"We're all worried about losing our jobs," Rep. Paul Ryan, R-Wis., declared in an impassioned speech in support of the bill before the vote. "Most of us say, 'I want this thing to pass, but I want you to vote for it -- not me.'"
"We're in this moment, and if we fail to do the right thing, Heaven help us," he said.
If Congress doesn't come around on a bailout, more pressure would fall on the Federal Reserve.
The Fed, which has been providing billions in short-term loans to squeezed banks to help them overcome credit stresses, could keep expanding those loans to encourage lending. And, it could keep working with other central banks to inject billions into financial markets overseas.
It also has the power to expand emergency lending to other types of companies and even to individuals if they are unable to secure adequate credit.
Dow dives 777 points, biggest single day fall ever, as House rejects financial bailout package
NEW YORK (AP) -- The failure of the bailout package in Congress literally dropped jaws on Wall Street and triggered a historic selloff -- including a terrifying decline of nearly 500 points in mere minutes as the vote took place, the closest thing to panic the stock market has seen in years.
The Dow Jones industrial average lost 777 points Monday, its biggest single-day fall ever, easily beating the 684 points it lost on the first day of trading after the Sept. 11, 2001, terrorist attacks.
As uncertainty gripped investors, the credit markets, which provide the day-to-day lending that powers business in the United States, froze up even further.
At the New York Stock Exchange, traders watched with faces tense and mouths agape as TV screens showed the House vote rejecting the Bush administration's $700 billion plan to buy up bad debt and shore up the financial industry.
Activity on the trading floor became frenetic as the "sell" orders blew in. The selling was so intense that just 162 stocks on the Big Board rose, while 3,073 dropped.
The Dow Jones Wilshire 5000 Composite Index recorded a paper loss of $1 trillion across the market for the day, a first.
The Dow industrials, which were down 210 points at 1:30 p.m. EDT, nose-dived as traders on Wall Street and investors across the country saw "no" votes piling up on live TV feeds of the House vote.
By 1:42 p.m., the decline was 292 points. Then the bottom fell out. Within five minutes, the index was down about 700 points as it became clear the bill was doomed.
"How could this have happened? Is there such a disconnect on Capitol Hill? This becomes a problem because Wall Street is very uncomfortable with uncertainty," said Gordon Charlop, managing director with Rosenblatt Securities.
"The bailout not going through sends a signal that Congress isn't willing to do their part," he added.
While investors didn't believe that the plan was a cure-all and it could take months for its effects to be felt, most market watchers believed it was at least a start toward setting the economy right and unlocking credit.
"Clearly something needs to be done, and the market dropping 400 points in 10 minutes is telling you that," said Chris Johnson, president of Johnson Research Group. "This isn't a market for the timid."
Before trading even began came word that Wachovia Corp., one of the biggest banks to struggle from rising mortgage losses, was being rescued in a buyout by Citigroup Inc.
That followed the recent forced sale of Merrill Lynch & Co. and the failure of three other huge banking companies -- Bear Stearns Cos., Washington Mutual Inc. and Lehman Brothers Holdings Inc., all of them felled by bad mortgage investments.
And it raised the question: Which banks are next, and how many? The Federal Deposit Insurance Corp. lists more than 110 banks in trouble in the second quarter, and the number has probably grown since.
Wall Street is contending with all of it against the backdrop of a credit market -- where bonds and loans are bought and sold -- that is barely functioning because of fears that anyone lending money will never be paid back.
More evidence could be found Monday in the Treasury's three-month bill, where investors were stashing money, willing to accept the tiniest of returns simply to be sure that their principal would survive. The yield on the three-month bill was 0.15 percent, down from 0.87 percent and approaching zero, a level reached last week when fear was also running high.
Analysts said the government needs to find a way to help restore confidence in the markets.
"It's probably fair to say that we are not going to see any significant stability in the credit markets or the stock market until we see some sort of rescue package passed," said Fred Dickson, director of retail research for D.A. Davidson & Co.
The bailout bill failed 228-205 in the House, and Democratic leaders said the House would reconvene Thursday in hopes of a quick vote on a revised bill.
"We need to put something back together that works," Treasury Secretary Henry Paulson said. "We need it as soon as possible."
The Dow fell 777.68 points, just shy of 7 percent, to 10,365.45, its lowest close in nearly three years. The decline also surpasses the record for the biggest decline during a trading day -- 721.56 at one point on Sept. 17, 2001, when the market reopened after 9/11.
In percentage terms, it was only the 17th-biggest decline for the Dow, far less severe than the 20-plus-percent drops seen on Black Monday in 1987 and before the Great Depression.
Broader stock indicators also plummeted. The Standard & Poor's 500 index declined 106.62, or nearly 9 percent, to 1,106.39. It was the S&P's largest-ever point drop and its biggest percentage loss since the week after the October 1987 crash.
The Nasdaq composite index fell 199.61, more than 9 percent, to 1,983.73, its third-worst percentage decline. The Russell 2000 index of smaller companies fell 47.07, or 6.7 percent, to 657.72.
A huge drop in oil prices was another sign of the economic chaos that investors fear. Light, sweet crude fell $10.52 to settle at $96.36 on the New York Mercantile Exchange as investors feared energy demand would continue to slide amid further economic weakness. And gold, where investors flock when they need a relatively secure investment, rose $23.20 to $911.70 on the Nymex.
Marc Pado, U.S. market strategist at Cantor Fitzgerald, said investors are worried about the spread of troubles beyond banks in the U.S. to Europe and other markets.
"Things are dying and breaking apart," he said.
The federal Office of Thrift Supervision, one of the government's banking regulators, indicated that the market was overreacting to the House vote and that its fears about the financial system are misplaced.
"There is an irrational financial panic taking place today, and we support and applaud the continuing efforts of Secretary Paulson and congressional leadership to restore liquidity and public confidence," John Reich, Director of the federal Office of Thrift Supervision, said in a statement.
The plan would have placed caps on pay packages of top executives that accepted help from the government, and included assurances the government would ultimately be reimbursed by the companies for any losses.
The Treasury would have been permitted to spend $250 billion to buy banks' risky assets, giving them a much-needed cash infusion. There also would be another $100 billion for use at the president's discretion and a final $350 billion if Congress signs off.
But Wall Street found further reason for worry overseas. Three European governments agreed to a $16.4 billion bailout for Fortis NV, Belgium's largest retail bank, and the British government said it was nationalizing mortgage lender Bradford & Bingley, which has a $91 billion mortgage and loan portfolio. It was the latest sign that the credit crisis has spread beyond the U.S.
The Dow Jones industrial average lost 777 points Monday, its biggest single-day fall ever, easily beating the 684 points it lost on the first day of trading after the Sept. 11, 2001, terrorist attacks.
As uncertainty gripped investors, the credit markets, which provide the day-to-day lending that powers business in the United States, froze up even further.
At the New York Stock Exchange, traders watched with faces tense and mouths agape as TV screens showed the House vote rejecting the Bush administration's $700 billion plan to buy up bad debt and shore up the financial industry.
Activity on the trading floor became frenetic as the "sell" orders blew in. The selling was so intense that just 162 stocks on the Big Board rose, while 3,073 dropped.
The Dow Jones Wilshire 5000 Composite Index recorded a paper loss of $1 trillion across the market for the day, a first.
The Dow industrials, which were down 210 points at 1:30 p.m. EDT, nose-dived as traders on Wall Street and investors across the country saw "no" votes piling up on live TV feeds of the House vote.
By 1:42 p.m., the decline was 292 points. Then the bottom fell out. Within five minutes, the index was down about 700 points as it became clear the bill was doomed.
"How could this have happened? Is there such a disconnect on Capitol Hill? This becomes a problem because Wall Street is very uncomfortable with uncertainty," said Gordon Charlop, managing director with Rosenblatt Securities.
"The bailout not going through sends a signal that Congress isn't willing to do their part," he added.
While investors didn't believe that the plan was a cure-all and it could take months for its effects to be felt, most market watchers believed it was at least a start toward setting the economy right and unlocking credit.
"Clearly something needs to be done, and the market dropping 400 points in 10 minutes is telling you that," said Chris Johnson, president of Johnson Research Group. "This isn't a market for the timid."
Before trading even began came word that Wachovia Corp., one of the biggest banks to struggle from rising mortgage losses, was being rescued in a buyout by Citigroup Inc.
That followed the recent forced sale of Merrill Lynch & Co. and the failure of three other huge banking companies -- Bear Stearns Cos., Washington Mutual Inc. and Lehman Brothers Holdings Inc., all of them felled by bad mortgage investments.
And it raised the question: Which banks are next, and how many? The Federal Deposit Insurance Corp. lists more than 110 banks in trouble in the second quarter, and the number has probably grown since.
Wall Street is contending with all of it against the backdrop of a credit market -- where bonds and loans are bought and sold -- that is barely functioning because of fears that anyone lending money will never be paid back.
More evidence could be found Monday in the Treasury's three-month bill, where investors were stashing money, willing to accept the tiniest of returns simply to be sure that their principal would survive. The yield on the three-month bill was 0.15 percent, down from 0.87 percent and approaching zero, a level reached last week when fear was also running high.
Analysts said the government needs to find a way to help restore confidence in the markets.
"It's probably fair to say that we are not going to see any significant stability in the credit markets or the stock market until we see some sort of rescue package passed," said Fred Dickson, director of retail research for D.A. Davidson & Co.
The bailout bill failed 228-205 in the House, and Democratic leaders said the House would reconvene Thursday in hopes of a quick vote on a revised bill.
"We need to put something back together that works," Treasury Secretary Henry Paulson said. "We need it as soon as possible."
The Dow fell 777.68 points, just shy of 7 percent, to 10,365.45, its lowest close in nearly three years. The decline also surpasses the record for the biggest decline during a trading day -- 721.56 at one point on Sept. 17, 2001, when the market reopened after 9/11.
In percentage terms, it was only the 17th-biggest decline for the Dow, far less severe than the 20-plus-percent drops seen on Black Monday in 1987 and before the Great Depression.
Broader stock indicators also plummeted. The Standard & Poor's 500 index declined 106.62, or nearly 9 percent, to 1,106.39. It was the S&P's largest-ever point drop and its biggest percentage loss since the week after the October 1987 crash.
The Nasdaq composite index fell 199.61, more than 9 percent, to 1,983.73, its third-worst percentage decline. The Russell 2000 index of smaller companies fell 47.07, or 6.7 percent, to 657.72.
A huge drop in oil prices was another sign of the economic chaos that investors fear. Light, sweet crude fell $10.52 to settle at $96.36 on the New York Mercantile Exchange as investors feared energy demand would continue to slide amid further economic weakness. And gold, where investors flock when they need a relatively secure investment, rose $23.20 to $911.70 on the Nymex.
Marc Pado, U.S. market strategist at Cantor Fitzgerald, said investors are worried about the spread of troubles beyond banks in the U.S. to Europe and other markets.
"Things are dying and breaking apart," he said.
The federal Office of Thrift Supervision, one of the government's banking regulators, indicated that the market was overreacting to the House vote and that its fears about the financial system are misplaced.
"There is an irrational financial panic taking place today, and we support and applaud the continuing efforts of Secretary Paulson and congressional leadership to restore liquidity and public confidence," John Reich, Director of the federal Office of Thrift Supervision, said in a statement.
The plan would have placed caps on pay packages of top executives that accepted help from the government, and included assurances the government would ultimately be reimbursed by the companies for any losses.
The Treasury would have been permitted to spend $250 billion to buy banks' risky assets, giving them a much-needed cash infusion. There also would be another $100 billion for use at the president's discretion and a final $350 billion if Congress signs off.
But Wall Street found further reason for worry overseas. Three European governments agreed to a $16.4 billion bailout for Fortis NV, Belgium's largest retail bank, and the British government said it was nationalizing mortgage lender Bradford & Bingley, which has a $91 billion mortgage and loan portfolio. It was the latest sign that the credit crisis has spread beyond the U.S.
Monday, September 29, 2008
Market slumps on global financial instability; Sensex hits 18-month low
Stocks fell across the globe on persistent questions on the
effectiveness of the US bailout package and on continued
instability in the global banking sector. The domestic market fell
for the third consecutive trading session with Sensex declining
1,096.77 points in last three sessions. The barometer index today
ended 506.43 points down.
The market recovered after witnessing a sharp intra-day fall. The
BSE Sensex recovered close to 200 points from the day's low. The
barometer index hit 1-½ year low and the S&P CNX Nifty hit its
lowest level in 17 months in mid-afternoon trade. The market
breadth was extremely weak as selling was witnessed across the
board. ICICI Bank fell more than 12%.
The US lawmakers agreeing on a $700 billion bank-rescue package and
the House of Representatives approving the nuclear deal with India
over the weekend failed to boost the investor sentiments.
European markets which opened after Indian markets were down.
France's CAC 40, Germany's DAX and UK's FTSE 100 were down between
2.77% to 3.04%. European markets fell as the Belgian, Dutch and
Luxembourg governments were forced to rescue financial firm Fortis
over the weekend. Stricken UK lender Bradford & Bingley was also
nationalised after its branch network and deposit business was sold
to Spain's Banco Santander.
Most Asian markets were trading lower today, 29 September 2008.
Hong Kong's Hang Seng, Japan's Nikkei, Singapore's Straits Times,
South Korea's Seoul Composite fell between 1.26% 4.07%.
In US, congressional leaders from both parties said they had a
tentative agreement on Sunday, 28 September 2008 and lawmakers
prepared to vote on Monday, 29 September 2008, on a $700 billion US
government fund to buy bad debt. The bailout plan will be
introduced in the House of Representatives today, 29 September 2008
and then head to the Senate.
Meanwhile, the Indo-US nuclear deal moved into the last lap
clearing a major hurdle when the House of Representatives approved
a legislation on it that will now go to the Senate before the two
countries can implement the civil nuclear agreement.
The BSE 30-share Sensex plunged 506.43 points or 3.87% to
12,595.75. The index shed 699.34 points at the day's low of
12,402.82 hit in mid-afternoon trade. The Sensex edged up 11.35
points at day's high of 13,113.53, hit at the onset of the trading
session.
The S&P CNX Nifty was down 135.20 points or 3.39% to 3,850.05.
The BSE Sensex is down 7,691.24 points or 37.91% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 8,611.02 points or 40.6% below its all-time high of 21,206.77
struck on 10 January 2008. The index is down 1,096.77 points from a
recent high of 13,692.52 hit on 24 September 2008.
BSE clocked a turnover of Rs 4,579 crore today 29 September 2008 as
compared to a turnover of Rs 4,850.22 crore on Friday 26 September
2008.
Nifty October 2008 futures were at 3880.40, at a premium of 30.35
points as compared to spot closing of 3850.05. NSE's futures &
options (F&O) segment turnover was Rs 59,905.71 crore, which was
higher than Rs 44,297.14 crore on Friday, 26 September 2008.
The BSE Mid-Cap index was down 4.13% at 4,736.55 and the BSE
Small-Cap index was down 5.12% at 5,561.42.
BSE Bankex (down 6.02% to 6,175.10), BSE Consumer Durables index
(down 5.68% to 2,872.39), BSE IT index (down 5.47% to 3,057.92),
BSE Realty index (down 5.26% to 3407.87), BSE Power index (down
5.22% to 2225.08), BSE TEck index (down 5.13% to 2,490.01), BSE
Capital Goods index (down 4.86% to 10,270.60) underperformed
Sensex.
BSE Metal index (down 3.77% to 9,144.23), BSE HealthCare index
(down 3.06% to 3,651.18), BSE Auto index (down 2.95% to 3,624.24),
BSE PSU index (down 2.88% to 6,146.61), BSE Oil & Gas index (down
1.72% to 8,925.01) and BSE FMCG index (down 0.44% to 2,179.50)
outperformed Sensex.
The market breadth was weak on BSE with 357 shares advancing as
compared to 2,287 that declined. 41 shares remained unchanged.
India's largest private firm by market capitalization and oil
refiner Reliance Industries fell 1.53% to Rs 1,930.95. The stock
recovered from the session's low of Rs 1,881.
India's largest FMCG firm by sales Hindustan Unilever rose 0.79% to
Rs 254.50.
India's largest oil exploration firm by revenue ONGC was down 1.14%
at Rs 1,023.30. It recovered from the session's low of Rs 994.
India's fourth largest IT exporter by sales Wipro fell 0.19% to Rs
343.10. It recovered from the session's low of Rs 330.10.
India's largest private sector bank in terms of net profit ICICI
Bank slumped 12.11% to Rs 493.30. The bank clarified today during
the market hours that 98% of ICICI Bank UK PLC's non-India
investment book is rated investment grade and above. ICICI Bank UK
PLC has zero exposure to US subprime-credit, it said.
India's largest real estate player by market capitalization DLF
fell 5.12% to Rs 350.60. It recovered from the session's low of Rs
329.
India's largest electric equipment maker by sales Bharat Heavy
Electricals declined 2.65% to Rs 1,509.50. It recovered from the
session's low of Rs 1,441.
India's largest home loan lender HDFC fell 2.68% to Rs 2,032.75. It
recovered from the session's low of Rs 2000.
Jaiprakash Associates (down 11.85% to Rs 106.70), Satyam Computer
Services (down 9.13% to Rs 292.55), Tata Consultancy Services (down
8.4% to Rs 619.65), edged lower from the Sensex pack.
Reliance Natural Resources clocked the highest volume of 1.42 crore
shares on BSE. IFCI (89.91 lakh shares), Chambal Fertilisers and
Chemicals (71.69 lakh shares), Jaiprakash Associates (63.84 lakh
shares) and ICICI Bank (58.37 lakh shares) were the other volume
toppers in that order.
Reliance Capital clocked the highest turnover of Rs 309.01 crore on
BSE. Reliance Industries (Rs 299.81 crore), ICICI Bank (Rs 295.37
crore), Axis Bank (Rs 157.21 crore) and Larsen & Toubro (Rs 134.79
crore) were the other turnover toppers in that order.
US light crude for November delivery fell $1.09 to $105.85 a barrel
today, 29 September 2008 pressured by gains in the US dollar.
US stocks rose on Friday, 26 September 2008. The Dow Jones gained
121.07 points, or 1.10%, to 11,143.13. The S&P 500 index was up
3.83 points, or 0.32%, to 1,213.01, and the Nasdaq composite index
was down 3.23 points, or 0.15%, to 2,183.34.
Back home, indices tumbled on Friday, 26 September 2008 on
uncertainty about the future of the US financial system. The BSE
30-share Sensex fell 445 points or 3.28% to 13,102.18 and the S&P
CNX Nifty lost 137.10 points or 3.34% to 3985.25, on that day.
Key benchmark indices suffered a severe setback in the week ended
Friday, 26 September 2008, mirroring weak global market and amid
impasse over the proposed $700 billion bailout deal for the US
financial sector. The barometer index BSE Sensex lost 940.14 points
or 6.69% to 13,102.18 in and the S&P CNX Nifty shed 260 points or
6.12% at 3985.25, in the week.
effectiveness of the US bailout package and on continued
instability in the global banking sector. The domestic market fell
for the third consecutive trading session with Sensex declining
1,096.77 points in last three sessions. The barometer index today
ended 506.43 points down.
The market recovered after witnessing a sharp intra-day fall. The
BSE Sensex recovered close to 200 points from the day's low. The
barometer index hit 1-½ year low and the S&P CNX Nifty hit its
lowest level in 17 months in mid-afternoon trade. The market
breadth was extremely weak as selling was witnessed across the
board. ICICI Bank fell more than 12%.
The US lawmakers agreeing on a $700 billion bank-rescue package and
the House of Representatives approving the nuclear deal with India
over the weekend failed to boost the investor sentiments.
European markets which opened after Indian markets were down.
France's CAC 40, Germany's DAX and UK's FTSE 100 were down between
2.77% to 3.04%. European markets fell as the Belgian, Dutch and
Luxembourg governments were forced to rescue financial firm Fortis
over the weekend. Stricken UK lender Bradford & Bingley was also
nationalised after its branch network and deposit business was sold
to Spain's Banco Santander.
Most Asian markets were trading lower today, 29 September 2008.
Hong Kong's Hang Seng, Japan's Nikkei, Singapore's Straits Times,
South Korea's Seoul Composite fell between 1.26% 4.07%.
In US, congressional leaders from both parties said they had a
tentative agreement on Sunday, 28 September 2008 and lawmakers
prepared to vote on Monday, 29 September 2008, on a $700 billion US
government fund to buy bad debt. The bailout plan will be
introduced in the House of Representatives today, 29 September 2008
and then head to the Senate.
Meanwhile, the Indo-US nuclear deal moved into the last lap
clearing a major hurdle when the House of Representatives approved
a legislation on it that will now go to the Senate before the two
countries can implement the civil nuclear agreement.
The BSE 30-share Sensex plunged 506.43 points or 3.87% to
12,595.75. The index shed 699.34 points at the day's low of
12,402.82 hit in mid-afternoon trade. The Sensex edged up 11.35
points at day's high of 13,113.53, hit at the onset of the trading
session.
The S&P CNX Nifty was down 135.20 points or 3.39% to 3,850.05.
The BSE Sensex is down 7,691.24 points or 37.91% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 8,611.02 points or 40.6% below its all-time high of 21,206.77
struck on 10 January 2008. The index is down 1,096.77 points from a
recent high of 13,692.52 hit on 24 September 2008.
BSE clocked a turnover of Rs 4,579 crore today 29 September 2008 as
compared to a turnover of Rs 4,850.22 crore on Friday 26 September
2008.
Nifty October 2008 futures were at 3880.40, at a premium of 30.35
points as compared to spot closing of 3850.05. NSE's futures &
options (F&O) segment turnover was Rs 59,905.71 crore, which was
higher than Rs 44,297.14 crore on Friday, 26 September 2008.
The BSE Mid-Cap index was down 4.13% at 4,736.55 and the BSE
Small-Cap index was down 5.12% at 5,561.42.
BSE Bankex (down 6.02% to 6,175.10), BSE Consumer Durables index
(down 5.68% to 2,872.39), BSE IT index (down 5.47% to 3,057.92),
BSE Realty index (down 5.26% to 3407.87), BSE Power index (down
5.22% to 2225.08), BSE TEck index (down 5.13% to 2,490.01), BSE
Capital Goods index (down 4.86% to 10,270.60) underperformed
Sensex.
BSE Metal index (down 3.77% to 9,144.23), BSE HealthCare index
(down 3.06% to 3,651.18), BSE Auto index (down 2.95% to 3,624.24),
BSE PSU index (down 2.88% to 6,146.61), BSE Oil & Gas index (down
1.72% to 8,925.01) and BSE FMCG index (down 0.44% to 2,179.50)
outperformed Sensex.
The market breadth was weak on BSE with 357 shares advancing as
compared to 2,287 that declined. 41 shares remained unchanged.
India's largest private firm by market capitalization and oil
refiner Reliance Industries fell 1.53% to Rs 1,930.95. The stock
recovered from the session's low of Rs 1,881.
India's largest FMCG firm by sales Hindustan Unilever rose 0.79% to
Rs 254.50.
India's largest oil exploration firm by revenue ONGC was down 1.14%
at Rs 1,023.30. It recovered from the session's low of Rs 994.
India's fourth largest IT exporter by sales Wipro fell 0.19% to Rs
343.10. It recovered from the session's low of Rs 330.10.
India's largest private sector bank in terms of net profit ICICI
Bank slumped 12.11% to Rs 493.30. The bank clarified today during
the market hours that 98% of ICICI Bank UK PLC's non-India
investment book is rated investment grade and above. ICICI Bank UK
PLC has zero exposure to US subprime-credit, it said.
India's largest real estate player by market capitalization DLF
fell 5.12% to Rs 350.60. It recovered from the session's low of Rs
329.
India's largest electric equipment maker by sales Bharat Heavy
Electricals declined 2.65% to Rs 1,509.50. It recovered from the
session's low of Rs 1,441.
India's largest home loan lender HDFC fell 2.68% to Rs 2,032.75. It
recovered from the session's low of Rs 2000.
Jaiprakash Associates (down 11.85% to Rs 106.70), Satyam Computer
Services (down 9.13% to Rs 292.55), Tata Consultancy Services (down
8.4% to Rs 619.65), edged lower from the Sensex pack.
Reliance Natural Resources clocked the highest volume of 1.42 crore
shares on BSE. IFCI (89.91 lakh shares), Chambal Fertilisers and
Chemicals (71.69 lakh shares), Jaiprakash Associates (63.84 lakh
shares) and ICICI Bank (58.37 lakh shares) were the other volume
toppers in that order.
Reliance Capital clocked the highest turnover of Rs 309.01 crore on
BSE. Reliance Industries (Rs 299.81 crore), ICICI Bank (Rs 295.37
crore), Axis Bank (Rs 157.21 crore) and Larsen & Toubro (Rs 134.79
crore) were the other turnover toppers in that order.
US light crude for November delivery fell $1.09 to $105.85 a barrel
today, 29 September 2008 pressured by gains in the US dollar.
US stocks rose on Friday, 26 September 2008. The Dow Jones gained
121.07 points, or 1.10%, to 11,143.13. The S&P 500 index was up
3.83 points, or 0.32%, to 1,213.01, and the Nasdaq composite index
was down 3.23 points, or 0.15%, to 2,183.34.
Back home, indices tumbled on Friday, 26 September 2008 on
uncertainty about the future of the US financial system. The BSE
30-share Sensex fell 445 points or 3.28% to 13,102.18 and the S&P
CNX Nifty lost 137.10 points or 3.34% to 3985.25, on that day.
Key benchmark indices suffered a severe setback in the week ended
Friday, 26 September 2008, mirroring weak global market and amid
impasse over the proposed $700 billion bailout deal for the US
financial sector. The barometer index BSE Sensex lost 940.14 points
or 6.69% to 13,102.18 in and the S&P CNX Nifty shed 260 points or
6.12% at 3985.25, in the week.
Sensex down more than 500 points
Key benchmark indices slumped further in red in afternoon trade.
Sensex lost more than 500 points. Asian and European stocks dropped
on persistent questions on the effectiveness of the US bailout
package and on continued instability in the global banking sector.
The barometer index BSE Sensex today fell below the 13,000 mark.
Capital goods and power stocks declined . ICICI Bank fell more than
11% while Jaiprakash Associates fell more than 12%. Reliance
Industries dropped. The market breadth extremely weak as selling
was witnessed across the board.
The US lawmakers agreeing on a $700 billion bank-rescue package and
the House of Representatives approving the nuclear deal with India
over the weekend failed to boost the investor sentiments.
European markets which opened after Indian markets were down in
opening trade. France's CAC 40, Germany's DAX and UK's FTSE 100
were down between 2.53% to 2.88%. European markets fell as the
Belgian, Dutch and Luxembourg governments were forced to rescue
financial firm Fortis over the weekend. In addition, reports
suggest the British government will take over mortgage lender
Bradford & Bingley.
Most Asian markets were trading lower today, 29 September 2008.
Hong Kong's Hang Seng, Japan's Nikkei, Singapore's Straits Times,
South Korea's Seoul Composite fell between 1.26% 4.07%.
In US, congressional leaders from both parties said they had a
tentative agreement on Sunday, 28 September 2008 and lawmakers
prepared to vote on Monday, 29 September 2008, on a $700 billion US
government fund to buy bad debt. The bailout plan will be
introduced in the House of Representatives today, 29 September 2008
and then head to the Senate.
Meanwhile, the Indo-US nuclear deal moved into the last lap
clearing a major hurdle when the House of Representatives approved
a legislation on it that will now go to the Senate before the two
countries can implement the civil nuclear agreement.
At 13:23 IST, the BSE 30-share Sensex was down 510.17 points or
3.89% to 12,594.04. The index shed 533.14 points at the day's low
of 12,569.04 hit in afternoon trade. The Sensex edged up 11.35
points at day's high of 13,113.53, hit at the onset of the trading
session.
The S&P CNX Nifty was down 143.80 points or 3.61% to 3,841.45.
The BSE Mid-Cap index was down 4.76% at 4,705.49 and the BSE
Small-Cap index was down 5.02% at 5,567.79.
The market breadth was weak on BSE with 266 shares advancing as
compared to 2,178 that declined. 36 shares remained unchanged.
India's largest private firm by market capitalization and oil
refiner Reliance Industries fell 2.48% to Rs 1,915.
Capital goods stocks declined. The BSE Capital Goods index fell
4.22% to 10,339.97. Bharat Heavy Electricals (down 2.87% to Rs
1,506.10), Larsen & Toubro (down 4.02% to Rs 2,369) edged lower.
India's largest wind turbine manufacturer by sales Suzlon Energy
declined 9.01% to Rs 159, even as the company said on Monday, 29
September 2008, IDFC Private Equity would buy 17.1% in its
subsidiary SE Forge for Rs 400 crore.
Power stocks fell. The BSE Power index declined 3.68% to Rs
2,261.40. NTPC (down 3.22% to Rs 168.40), PowerGrid Corporation of
India (down 1.69% to Rs 87.50), Reliance Power (down 3.81% to Rs
155.40), Reliance Infrastructure (down 4.23% to Rs 813.70) and Tata
Power Company (down 0.58% to Rs 981) edged lower.
GAIL (India) (up 1.55% to Rs 408.25), Hero Honda Motor (up 1.39% to
Rs 256), Nestle India (up 0.92% to Rs 1,655) and Lanco Infratech
(up 0.7% to Rs 186.35) edged higher from BSE's A group.
United Breweries (Holdings) (down 16.04% to Rs 195.30), Housing
Development & Infrastructure (down 15.41% to Rs 162.80), Indiabulls
Real Estate (down 14.19% to Rs 158.70) edged lower from the A
group.
Hindustan Unilever (up 2.1% to Rs 257.80) and ITC (up 0.65% to Rs
193.50) edged higher from the Sensex pack.
Jaiprakash Associates (down 12.27% to Rs 106.20), DLF (down 8.93%
to Rs 3336.80), Ranbaxy Laboratories (down 7.67% to Rs 251.50),
Satyam Computer Services (down 7.11% to Rs 299.15), Tata Motors
(down 5.44% to Rs 352.60), edged lower from the Sensex pack.
India's largest private sector bank in terms of net profit ICICI
Bank slumped 11.27% to Rs 498 on reports the bank has
mark-to-market loss of about Rs 309 crore due to its investment in
instruments of troubled US financial giants - Lehman Brothers and
AIG.
India's fifth-largest software exporter by sales HCL Technologies
fell 10.75% to Rs 190.05. HCL Technologies fell 7.42% to Rs 197.15.
On Friday, 26 September 2008, launched an all-cash offer for
UK-based SAP implementation consultancy Axon. The offer trumped an
earlier bid by Infosys, India's second largest IT services provider
by sales.
HCL's all-cash offer at 650 pence a share is 8.3% higher than the
600-pence offer by Infosys, which has promised a further
announcement 'in due course'. Reports suggest that Infosys is
expected to disclose its future plans on Axon on Monday, 29
September 2008.
Sensex lost more than 500 points. Asian and European stocks dropped
on persistent questions on the effectiveness of the US bailout
package and on continued instability in the global banking sector.
The barometer index BSE Sensex today fell below the 13,000 mark.
Capital goods and power stocks declined . ICICI Bank fell more than
11% while Jaiprakash Associates fell more than 12%. Reliance
Industries dropped. The market breadth extremely weak as selling
was witnessed across the board.
The US lawmakers agreeing on a $700 billion bank-rescue package and
the House of Representatives approving the nuclear deal with India
over the weekend failed to boost the investor sentiments.
European markets which opened after Indian markets were down in
opening trade. France's CAC 40, Germany's DAX and UK's FTSE 100
were down between 2.53% to 2.88%. European markets fell as the
Belgian, Dutch and Luxembourg governments were forced to rescue
financial firm Fortis over the weekend. In addition, reports
suggest the British government will take over mortgage lender
Bradford & Bingley.
Most Asian markets were trading lower today, 29 September 2008.
Hong Kong's Hang Seng, Japan's Nikkei, Singapore's Straits Times,
South Korea's Seoul Composite fell between 1.26% 4.07%.
In US, congressional leaders from both parties said they had a
tentative agreement on Sunday, 28 September 2008 and lawmakers
prepared to vote on Monday, 29 September 2008, on a $700 billion US
government fund to buy bad debt. The bailout plan will be
introduced in the House of Representatives today, 29 September 2008
and then head to the Senate.
Meanwhile, the Indo-US nuclear deal moved into the last lap
clearing a major hurdle when the House of Representatives approved
a legislation on it that will now go to the Senate before the two
countries can implement the civil nuclear agreement.
At 13:23 IST, the BSE 30-share Sensex was down 510.17 points or
3.89% to 12,594.04. The index shed 533.14 points at the day's low
of 12,569.04 hit in afternoon trade. The Sensex edged up 11.35
points at day's high of 13,113.53, hit at the onset of the trading
session.
The S&P CNX Nifty was down 143.80 points or 3.61% to 3,841.45.
The BSE Mid-Cap index was down 4.76% at 4,705.49 and the BSE
Small-Cap index was down 5.02% at 5,567.79.
The market breadth was weak on BSE with 266 shares advancing as
compared to 2,178 that declined. 36 shares remained unchanged.
India's largest private firm by market capitalization and oil
refiner Reliance Industries fell 2.48% to Rs 1,915.
Capital goods stocks declined. The BSE Capital Goods index fell
4.22% to 10,339.97. Bharat Heavy Electricals (down 2.87% to Rs
1,506.10), Larsen & Toubro (down 4.02% to Rs 2,369) edged lower.
India's largest wind turbine manufacturer by sales Suzlon Energy
declined 9.01% to Rs 159, even as the company said on Monday, 29
September 2008, IDFC Private Equity would buy 17.1% in its
subsidiary SE Forge for Rs 400 crore.
Power stocks fell. The BSE Power index declined 3.68% to Rs
2,261.40. NTPC (down 3.22% to Rs 168.40), PowerGrid Corporation of
India (down 1.69% to Rs 87.50), Reliance Power (down 3.81% to Rs
155.40), Reliance Infrastructure (down 4.23% to Rs 813.70) and Tata
Power Company (down 0.58% to Rs 981) edged lower.
GAIL (India) (up 1.55% to Rs 408.25), Hero Honda Motor (up 1.39% to
Rs 256), Nestle India (up 0.92% to Rs 1,655) and Lanco Infratech
(up 0.7% to Rs 186.35) edged higher from BSE's A group.
United Breweries (Holdings) (down 16.04% to Rs 195.30), Housing
Development & Infrastructure (down 15.41% to Rs 162.80), Indiabulls
Real Estate (down 14.19% to Rs 158.70) edged lower from the A
group.
Hindustan Unilever (up 2.1% to Rs 257.80) and ITC (up 0.65% to Rs
193.50) edged higher from the Sensex pack.
Jaiprakash Associates (down 12.27% to Rs 106.20), DLF (down 8.93%
to Rs 3336.80), Ranbaxy Laboratories (down 7.67% to Rs 251.50),
Satyam Computer Services (down 7.11% to Rs 299.15), Tata Motors
(down 5.44% to Rs 352.60), edged lower from the Sensex pack.
India's largest private sector bank in terms of net profit ICICI
Bank slumped 11.27% to Rs 498 on reports the bank has
mark-to-market loss of about Rs 309 crore due to its investment in
instruments of troubled US financial giants - Lehman Brothers and
AIG.
India's fifth-largest software exporter by sales HCL Technologies
fell 10.75% to Rs 190.05. HCL Technologies fell 7.42% to Rs 197.15.
On Friday, 26 September 2008, launched an all-cash offer for
UK-based SAP implementation consultancy Axon. The offer trumped an
earlier bid by Infosys, India's second largest IT services provider
by sales.
HCL's all-cash offer at 650 pence a share is 8.3% higher than the
600-pence offer by Infosys, which has promised a further
announcement 'in due course'. Reports suggest that Infosys is
expected to disclose its future plans on Axon on Monday, 29
September 2008.
Market deep into the red
Key benchmark indices plunged deep into the red in early afternoon
trade after trading resumed at 12:10 IST after 45-minute stoppage
on account of sun outage, with Sensex losing more than 450 points.
Asian stocks dropped on persistent questions on the effectiveness
of the US bailout package and on continued instability in the
global banking sector. The barometer index BSE Sensex today fell
below the 13,000 mark.
Consumer durables stocks declined. FMCG stocks rose. ICICI Bank
fell more than 9% while Jaiprakash Associates fell more than 8%.
Reliance Industries dropped. The market breadth extremely weak as
selling was witnessed across the board.
The US lawmakers agreeing on a $700 billion bank-rescue package and
the House of Representatives approving the nuclear deal with India
over the weekend failed to boost the investor sentiments.
Rather, the instability in the banking industry continued to weigh
on the investors sentiments in Asia with the Belgian, Dutch and
Luxembourg governments forced to rescue financial firm Fortis over
the weekend. In addition, reports suggest the British government
will take over mortgage lender Bradford & Bingley. Most Asian
markets were trading lower today, 29 September 2008. Hong Kong's
Hang Seng, Japan's Nikkei, Singapore's Straits Times, South Korea's
Seoul Composite fell between 1.26% 2.9%.
In US, congressional leaders from both parties said they had a
tentative agreement on Sunday, 28 September 2008 and lawmakers
prepared to vote on Monday, 29 September 2008, on a $700 billion US
government fund to buy bad debt. The bailout plan will be
introduced in the House of Representatives today, 29 September 2008
and then head to the Senate.
Meanwhile, the Indo-US nuclear deal moved into the last lap
clearing a major hurdle when the House of Representatives approved
a legislation on it that will now go to the Senate before the two
countries can implement the civil nuclear agreement.
At 12:35 IST, the BSE 30-share Sensex was down 451.79 points or
3.45% to 12,650.39. The index shed 457.94 points at the day's low
of 12,644.24 hit in early afternoon trade. The Sensex edged up
11.35 points at day's high of 13,113.53, hit at the onset of the
trading session.
The S&P CNX Nifty was down 120.75 points or 3.03% to 3,864.50.
The BSE Mid-Cap index was down 4.21% at 4,732.73 and the BSE
Small-Cap index was down 4.21% at 5,615.17.
The market breadth was weak on BSE with 290 shares advancing as
compared to 2,020 that declined. 39 shares remained unchanged.
India's largest private firm by market capitalization and oil
refiner Reliance Industries fell 2.65% to Rs 1,909.
Hindustan Unilever (up 2.1% to Rs 257.80) and ITC (up 0.65% to Rs
193.50) edged higher from the Sensex pack.
Jaiprakash Associates (down 8.3% to Rs 111), DLF (down 6.51% to Rs
345.45), Tata Motors (down 6.07% to Rs 350.65), Serlite Industries
(down 4.2% to Rs 428.40), State Bank of India (down 4.2% to Rs
1,374), Satyam Computer Services (down 4.07% to Rs 309), Reliance
Infrastructure (down 3.96% to Rs 816) edged lower from the Sensex
pack.
India's largest private sector bank in terms of net profit ICICI
Bank slumped 9.17% to Rs 509.80 on reports the bank has
mark-to-market loss of about Rs 309 crore due to its investment in
instruments of troubled US financial giants - Lehman Brothers and
AIG.
Consumer Durables stocks declined. Rajesh Exports (down 10.65% to
Rs 29.35), Videocon Industries (down 7.46% to Rs 198), Blue Star
(down 5.79% to Rs 292) edged lower.
India's fifth-largest software exporter by sales HCL Technologies
fell 6.97% to Rs 198.40. HCL Technologies fell 7.42% to Rs 197.15.
On Friday, 26 September 2008, launched an all-cash offer for
UK-based SAP implementation consultancy Axon. The offer trumped an
earlier bid by Infosys, India's second largest IT services provider
by sales.
HCL's all-cash offer at 650 pence a share is 8.3% higher than the
600-pence offer by Infosys, which has promised a further
announcement 'in due course'. Reports suggest that Infosys is
expected to disclose its future plans on Axon on Monday, 29
September 2008.
Aztecsoft surged 14.09% to Rs 51 after its board approved the
scheme of amalgamation of Aztecsoft with MindTree. The board
approved the swap ratio of 2 equity share of MindTree of Rs 10 each
for every 11 shares of Rs 3 each of Aztecsoft.
trade after trading resumed at 12:10 IST after 45-minute stoppage
on account of sun outage, with Sensex losing more than 450 points.
Asian stocks dropped on persistent questions on the effectiveness
of the US bailout package and on continued instability in the
global banking sector. The barometer index BSE Sensex today fell
below the 13,000 mark.
Consumer durables stocks declined. FMCG stocks rose. ICICI Bank
fell more than 9% while Jaiprakash Associates fell more than 8%.
Reliance Industries dropped. The market breadth extremely weak as
selling was witnessed across the board.
The US lawmakers agreeing on a $700 billion bank-rescue package and
the House of Representatives approving the nuclear deal with India
over the weekend failed to boost the investor sentiments.
Rather, the instability in the banking industry continued to weigh
on the investors sentiments in Asia with the Belgian, Dutch and
Luxembourg governments forced to rescue financial firm Fortis over
the weekend. In addition, reports suggest the British government
will take over mortgage lender Bradford & Bingley. Most Asian
markets were trading lower today, 29 September 2008. Hong Kong's
Hang Seng, Japan's Nikkei, Singapore's Straits Times, South Korea's
Seoul Composite fell between 1.26% 2.9%.
In US, congressional leaders from both parties said they had a
tentative agreement on Sunday, 28 September 2008 and lawmakers
prepared to vote on Monday, 29 September 2008, on a $700 billion US
government fund to buy bad debt. The bailout plan will be
introduced in the House of Representatives today, 29 September 2008
and then head to the Senate.
Meanwhile, the Indo-US nuclear deal moved into the last lap
clearing a major hurdle when the House of Representatives approved
a legislation on it that will now go to the Senate before the two
countries can implement the civil nuclear agreement.
At 12:35 IST, the BSE 30-share Sensex was down 451.79 points or
3.45% to 12,650.39. The index shed 457.94 points at the day's low
of 12,644.24 hit in early afternoon trade. The Sensex edged up
11.35 points at day's high of 13,113.53, hit at the onset of the
trading session.
The S&P CNX Nifty was down 120.75 points or 3.03% to 3,864.50.
The BSE Mid-Cap index was down 4.21% at 4,732.73 and the BSE
Small-Cap index was down 4.21% at 5,615.17.
The market breadth was weak on BSE with 290 shares advancing as
compared to 2,020 that declined. 39 shares remained unchanged.
India's largest private firm by market capitalization and oil
refiner Reliance Industries fell 2.65% to Rs 1,909.
Hindustan Unilever (up 2.1% to Rs 257.80) and ITC (up 0.65% to Rs
193.50) edged higher from the Sensex pack.
Jaiprakash Associates (down 8.3% to Rs 111), DLF (down 6.51% to Rs
345.45), Tata Motors (down 6.07% to Rs 350.65), Serlite Industries
(down 4.2% to Rs 428.40), State Bank of India (down 4.2% to Rs
1,374), Satyam Computer Services (down 4.07% to Rs 309), Reliance
Infrastructure (down 3.96% to Rs 816) edged lower from the Sensex
pack.
India's largest private sector bank in terms of net profit ICICI
Bank slumped 9.17% to Rs 509.80 on reports the bank has
mark-to-market loss of about Rs 309 crore due to its investment in
instruments of troubled US financial giants - Lehman Brothers and
AIG.
Consumer Durables stocks declined. Rajesh Exports (down 10.65% to
Rs 29.35), Videocon Industries (down 7.46% to Rs 198), Blue Star
(down 5.79% to Rs 292) edged lower.
India's fifth-largest software exporter by sales HCL Technologies
fell 6.97% to Rs 198.40. HCL Technologies fell 7.42% to Rs 197.15.
On Friday, 26 September 2008, launched an all-cash offer for
UK-based SAP implementation consultancy Axon. The offer trumped an
earlier bid by Infosys, India's second largest IT services provider
by sales.
HCL's all-cash offer at 650 pence a share is 8.3% higher than the
600-pence offer by Infosys, which has promised a further
announcement 'in due course'. Reports suggest that Infosys is
expected to disclose its future plans on Axon on Monday, 29
September 2008.
Aztecsoft surged 14.09% to Rs 51 after its board approved the
scheme of amalgamation of Aztecsoft with MindTree. The board
approved the swap ratio of 2 equity share of MindTree of Rs 10 each
for every 11 shares of Rs 3 each of Aztecsoft.
Market extends fall; ICICI Bank tanks
Key benchmark indices extended fall in the mid-morning trade as
Asian stocks dropped on persistent questions on the effectiveness
of the US bailout package and on continued instability in the
global banking sector. The BSE 30-share Sensex was down 289.44
points. The barometer index today fell below the 13,000 mark.
Banking and realty stocks edged lower. FMCG stocks rose. ICICI Bank
fell more than 9% while Jaiprakash Associates fell more than 6%.
The market breadth was very weak as selling was witnessed across
the counter.
The US lawmakers agreeing on a $700 billion bank-rescue package and
the House of Representatives approving the nuclear deal with India,
over the weekend failed to boost the investor sentiments.
Rather, the instability in the banking industry continued to weigh
on the investors sentiments in Asia with the Belgian, Dutch and
Luxembourg governments forced to rescue financial firm Fortis over
the weekend. In addition, reports suggest the British government
will take over mortgage lender Bradford & Bingley. Most Asian
markets were trading lower today, 29 September 2008. Hong Kong's
Hang Seng, Japan's Nikkei, Singapore's Straits Times, South Korea's
Seoul Composite fell between 0.52% 2.12%.
Democratic congressional leaders supported on Sunday, 28 September
2008, a massive financial rescue plan proposed by the Bush
administration, releasing a draft text trumpeting taxpayer
guarantees and caps on executive compensation. The bill will be
introduced in the House of Representatives today, 29 September 2008
and then head to the Senate.
Meanwhile, the Indo-US nuclear deal moved into the last lap
clearing a major hurdle when the House of Representatives approved
a legislation on it that will now go to the Senate before the two
countries can implement the civil nuclear agreement.
At 11:20 IST, the BSE 30-share Sensex was down 289.44 points or
2.21% to 12,812.74. The index shed 301.50 points at the day's low
of 12,800.68 hit in mid-morning trade. The Sensex edged up 11.35
points at day's high of 13,113.53, hit at the onset of the trading
session.
The S&P CNX Nifty was down 69.95 points or 1.76% to 3,915.30.
The BSE Mid-Cap index was down 2.68% at 4,808.24 and the BSE
Small-Cap index was down 2.66% at 5,705.64.
The market breadth was weak on BSE with 380 shares advancing as
compared to 1,757 that declined. 48 shares remained unchanged.
India's largest private firm by market capitalization and oil
refiner Reliance Industries fell 0.61% to Rs 1,950.
FMCG stocks rose on defensive buying. The BSE FMCG index rose 1.53%
to 2,222.57 and the index was the lone gainer from the sectoral
indices on BSE. Hindustan Unilever (up 4.28% to Rs 263.75), ITC (up
0.81% to Rs 193.75), REI Agro (up 0.01% to Rs 955) edged higher.
Nestle India rose 0.8% to Rs 1,653. The company has unveiled its
capital expenditure plan of Rs 600 crore in 2009, which is double
the Rs 300 crore that it is investing in the current year. The
investment would go in new research and development, advertising
and capacity building, Nestle's chairman and managing director,
Martial Rolland, said while addressing a press conference on
Friday, 26 September 2008.
Banking shares fell. The BSE Bankex fell 3.39% to 6,347.81. ICICI
Bank (down 9.27% to Rs 509.40), and State Bank of India Bank (down
3.45% to Rs 1,384.70), HDFC Bank (up 1.81% to Rs 1223.20) edged
lower from the frontline banking pack.
Rate sensitive realty stocks declined. The BSE Realty index fell
4.59% to 3,432.04 and was the major loser from the sectoral indices
on BSE. Akruti City (down 8.73% to Rs 729.80), Indiabulls Real
Estate (down 6.73% to Rs 172.50), Unitech (down 3.74% to Rs 106.90)
and DLF (down 3.9% to Rs 354.90) edged lower.
Jaiprakash Associates (down 7.09%to Rs 197.85), Tata Motors (down
5.18% to Rs 353.10), Satyam Computer Services (down 4.02% to Rs
309), Maruti Suzuki India (down 4.01% to Rs 654) edged lower from
the Sensex pack.
Ranbaxy Laboratories (up 1.98% to Rs 277.80), Bharat Heavy
Electricals (up 0.88% to Rs 1,564.05) edged higher from the Sensex
pack.
India's fifth-largest software exporter by sales HCL Technologies
fell 7.02% to Rs 198.40. HCL Technologies fell 7.42% to Rs 197.15.
On Friday, 26 September 2008, launched an all-cash offer for
UK-based SAP implementation consultancy Axon. The offer trumped an
earlier bid by Infosys, India's second largest IT services provider
by sales.
HCL's all-cash offer at 650 pence a share is 8.3% higher than the
600-pence offer by Infosys, which has promised a further
announcement 'in due course'. Reports suggest that Infosys is
expected to disclose its future plans on Axon on Monday, 29
September 2008.
Asian stocks dropped on persistent questions on the effectiveness
of the US bailout package and on continued instability in the
global banking sector. The BSE 30-share Sensex was down 289.44
points. The barometer index today fell below the 13,000 mark.
Banking and realty stocks edged lower. FMCG stocks rose. ICICI Bank
fell more than 9% while Jaiprakash Associates fell more than 6%.
The market breadth was very weak as selling was witnessed across
the counter.
The US lawmakers agreeing on a $700 billion bank-rescue package and
the House of Representatives approving the nuclear deal with India,
over the weekend failed to boost the investor sentiments.
Rather, the instability in the banking industry continued to weigh
on the investors sentiments in Asia with the Belgian, Dutch and
Luxembourg governments forced to rescue financial firm Fortis over
the weekend. In addition, reports suggest the British government
will take over mortgage lender Bradford & Bingley. Most Asian
markets were trading lower today, 29 September 2008. Hong Kong's
Hang Seng, Japan's Nikkei, Singapore's Straits Times, South Korea's
Seoul Composite fell between 0.52% 2.12%.
Democratic congressional leaders supported on Sunday, 28 September
2008, a massive financial rescue plan proposed by the Bush
administration, releasing a draft text trumpeting taxpayer
guarantees and caps on executive compensation. The bill will be
introduced in the House of Representatives today, 29 September 2008
and then head to the Senate.
Meanwhile, the Indo-US nuclear deal moved into the last lap
clearing a major hurdle when the House of Representatives approved
a legislation on it that will now go to the Senate before the two
countries can implement the civil nuclear agreement.
At 11:20 IST, the BSE 30-share Sensex was down 289.44 points or
2.21% to 12,812.74. The index shed 301.50 points at the day's low
of 12,800.68 hit in mid-morning trade. The Sensex edged up 11.35
points at day's high of 13,113.53, hit at the onset of the trading
session.
The S&P CNX Nifty was down 69.95 points or 1.76% to 3,915.30.
The BSE Mid-Cap index was down 2.68% at 4,808.24 and the BSE
Small-Cap index was down 2.66% at 5,705.64.
The market breadth was weak on BSE with 380 shares advancing as
compared to 1,757 that declined. 48 shares remained unchanged.
India's largest private firm by market capitalization and oil
refiner Reliance Industries fell 0.61% to Rs 1,950.
FMCG stocks rose on defensive buying. The BSE FMCG index rose 1.53%
to 2,222.57 and the index was the lone gainer from the sectoral
indices on BSE. Hindustan Unilever (up 4.28% to Rs 263.75), ITC (up
0.81% to Rs 193.75), REI Agro (up 0.01% to Rs 955) edged higher.
Nestle India rose 0.8% to Rs 1,653. The company has unveiled its
capital expenditure plan of Rs 600 crore in 2009, which is double
the Rs 300 crore that it is investing in the current year. The
investment would go in new research and development, advertising
and capacity building, Nestle's chairman and managing director,
Martial Rolland, said while addressing a press conference on
Friday, 26 September 2008.
Banking shares fell. The BSE Bankex fell 3.39% to 6,347.81. ICICI
Bank (down 9.27% to Rs 509.40), and State Bank of India Bank (down
3.45% to Rs 1,384.70), HDFC Bank (up 1.81% to Rs 1223.20) edged
lower from the frontline banking pack.
Rate sensitive realty stocks declined. The BSE Realty index fell
4.59% to 3,432.04 and was the major loser from the sectoral indices
on BSE. Akruti City (down 8.73% to Rs 729.80), Indiabulls Real
Estate (down 6.73% to Rs 172.50), Unitech (down 3.74% to Rs 106.90)
and DLF (down 3.9% to Rs 354.90) edged lower.
Jaiprakash Associates (down 7.09%to Rs 197.85), Tata Motors (down
5.18% to Rs 353.10), Satyam Computer Services (down 4.02% to Rs
309), Maruti Suzuki India (down 4.01% to Rs 654) edged lower from
the Sensex pack.
Ranbaxy Laboratories (up 1.98% to Rs 277.80), Bharat Heavy
Electricals (up 0.88% to Rs 1,564.05) edged higher from the Sensex
pack.
India's fifth-largest software exporter by sales HCL Technologies
fell 7.02% to Rs 198.40. HCL Technologies fell 7.42% to Rs 197.15.
On Friday, 26 September 2008, launched an all-cash offer for
UK-based SAP implementation consultancy Axon. The offer trumped an
earlier bid by Infosys, India's second largest IT services provider
by sales.
HCL's all-cash offer at 650 pence a share is 8.3% higher than the
600-pence offer by Infosys, which has promised a further
announcement 'in due course'. Reports suggest that Infosys is
expected to disclose its future plans on Axon on Monday, 29
September 2008.
Market slips in early trade
Key benchmark indices continued their downward journey in openin
trade. The market opened higher but soon dipped in red on weak
Asian markets. The US lawmakers agreeing on a $700 billion
bank-rescue package and the House of Representatives approving the
nuclear deal with India, over the weekend failed to boost the
investor sentiments. The BSE Sensex fell below 13,000 mark. IT and
realty stocks edged lower.
Instability in the banking industry continued to weigh on the
investors sentiments in Asia with the Belgian, Dutch and Luxembourg
governments forced to rescue financial firm Fortis over the
weekend. In addition, reports suggest the British government will
take over mortgage lender Bradford & Bingley. Most Asian markets
were trading lower today, 29 September 2008. Hong Kong's Hang Seng,
Japan's Nikkei, Singapore's Straits Times, South Korea's Seoul
Composite fell between 0.47% to 2.12%.
Democratic congressional leaders supported on Sunday, 28 September
2008, a massive financial rescue plan proposed by the Bush
administration, releasing a draft text trumpeting taxpayer
guarantees and caps on executive compensation. The bill will be
introduced in the House of Representatives today, 29 September 2008
and then head to the Senate.
Meanwhile, the Indo-US nuclear deal moved into the last lap
clearing a major hurdle when the House of Representatives approved
a legislation on it that will now go to the Senate before the two
countries can implement the civil nuclear agreement.
At 10:19 IST, the BSE 30-share Sensex was down 179.82 points or
1.37% to 12,915.81. The index shed 197.38 points at the day's low
of 12,904.80, hit in early trade. The Sensex edged up 11.35 points
at day's high of 13,113.53, hit at the onset of the trading
session.
The S&P CNX Nifty was down 45.50 points or 1.14% to 3,939.75.
The BSE Mid-Cap index was down 1.4% at 4,871.82 and the BSE
Small-Cap index was down 1.19% at 5,792.14.
The market breadth was weak on BSE with 380 shares advancing as
compared to 1,019 that declined. 36 shares remained unchanged.
Rate sensitive realty stocks declined. Indiabulls Real Estate (down
4.79% to Rs 176.35), Unitech (down 3.6% to Rs 107.05) and DLF (down
3.9% to Rs 354.90) edged lower.
IT stocks fell. Satyam Computer Services (down 2.47% to Rs 313.80),
Tata Consultancy Services (down 2.42% to Rs 660), Infosys (down
3.02% to Rs 1,404) and Wipro (down 0.81% to Rs 340.95) edged lower.
India's fifth-largest software exporter by sales HCL Technologies
fell 7.42% to Rs 197.15. HCL Technologies fell 7.42% to Rs 197.15.
On Friday, 26 September 2008, launched an all-cash offer for
UK-based SAP implementation consultancy Axon. The offer trumped an
earlier bid by Infosys, India's second largest IT services provider
by sales.
HCL's all-cash offer at 650 pence a share is 8.3% higher than the
600-pence offer by Infosys, which has promised a further
announcement 'in due course'. Reports suggest that Infosys is
expected to disclose its future plans on Axon on Monday, 29
September 2008.
Tata Motors (down 3.59% to Rs 360), Sterlite Industries (down 3.03%
to Rs 433.65), State Bank of India (down 3.08% to Rs 1,391), ICICI
Bank (down 2.85% to Rs 545.25) edged lower from the Sensex pack.
Grasim Industries (up 0.54% to Rs 1,770), ITC (up 0.49% to Rs
193.20), Bharat Heavy Electricals (up 0.47% to Rs 1,557.90), ONGC
(up 0.18% to Rs 1,037) edged higher from the Sensex pack.
Dr. Reddy's Laboratories declined 0.71% to Rs 512. The company has
received final approval from the US Food and Drug Administration
for nabumetone tablets. Nabumetone is a non-steroidal
anti-inflammatory drug used to treat arthritis related pain.
Suzlon Energy fell 0.46% to Rs 173.95. The company said today, 29
September 2008, IDFC Private Equity would buy 17.1% in subsidiary
SE Forge for Rs 400 crore. SE Forge, which specialises in
large-scale foundry and forging materials, is expanding capacity at
its plants in Coimbatore and Vadodara to cater to the growing
demand in the wind energy sector. Suzlon will continue to hold the
remaining stake in SE Forge.
Dynamatic Technologies fell 1.63% to Rs 1,071. The company has
acquired a 12 megawatt wind farm at Coimbatore from Tamilnadu
Petroproducts. This acquisition will enable Dynamatic to achieve
85% reduction in monthly energy costs at its Chennai complex and
combat energy-price inflation in future, the company said.
DS Kulkarni Developers rose 1.09% to Rs 64.90. The board of DS
Kulkarni Developers has approved investment in DSK Global up to the
tune of Rs 3 crore so as to make it a subsidiary of the company.
Avanti Feeds rose 3.99% to Rs 30. The company has announced that
its board will meet on 4 October 2008 to consider and approve issue
of equity shares on preferential basis to Thai Union Frozen
Products Public Company and the promoters through postal ballot.
Nestle India fell 0.91% to Rs 1,625. The company has unveiled its
capital expenditure of Rs 600 crore in 2009, which is double the Rs
300 crore that it is investing in the current year. The investment
would go in new research and development, advertising and capacity
building, Nestle's chairman and managing director, Martial Rolland,
said while addressing a press conference on Friday, 26 September
2008.
US light crude for November delivery fell $1.09 to $105.85 a barrel
today, 29 September 2008 pressured by gains in the US dollar.
trade. The market opened higher but soon dipped in red on weak
Asian markets. The US lawmakers agreeing on a $700 billion
bank-rescue package and the House of Representatives approving the
nuclear deal with India, over the weekend failed to boost the
investor sentiments. The BSE Sensex fell below 13,000 mark. IT and
realty stocks edged lower.
Instability in the banking industry continued to weigh on the
investors sentiments in Asia with the Belgian, Dutch and Luxembourg
governments forced to rescue financial firm Fortis over the
weekend. In addition, reports suggest the British government will
take over mortgage lender Bradford & Bingley. Most Asian markets
were trading lower today, 29 September 2008. Hong Kong's Hang Seng,
Japan's Nikkei, Singapore's Straits Times, South Korea's Seoul
Composite fell between 0.47% to 2.12%.
Democratic congressional leaders supported on Sunday, 28 September
2008, a massive financial rescue plan proposed by the Bush
administration, releasing a draft text trumpeting taxpayer
guarantees and caps on executive compensation. The bill will be
introduced in the House of Representatives today, 29 September 2008
and then head to the Senate.
Meanwhile, the Indo-US nuclear deal moved into the last lap
clearing a major hurdle when the House of Representatives approved
a legislation on it that will now go to the Senate before the two
countries can implement the civil nuclear agreement.
At 10:19 IST, the BSE 30-share Sensex was down 179.82 points or
1.37% to 12,915.81. The index shed 197.38 points at the day's low
of 12,904.80, hit in early trade. The Sensex edged up 11.35 points
at day's high of 13,113.53, hit at the onset of the trading
session.
The S&P CNX Nifty was down 45.50 points or 1.14% to 3,939.75.
The BSE Mid-Cap index was down 1.4% at 4,871.82 and the BSE
Small-Cap index was down 1.19% at 5,792.14.
The market breadth was weak on BSE with 380 shares advancing as
compared to 1,019 that declined. 36 shares remained unchanged.
Rate sensitive realty stocks declined. Indiabulls Real Estate (down
4.79% to Rs 176.35), Unitech (down 3.6% to Rs 107.05) and DLF (down
3.9% to Rs 354.90) edged lower.
IT stocks fell. Satyam Computer Services (down 2.47% to Rs 313.80),
Tata Consultancy Services (down 2.42% to Rs 660), Infosys (down
3.02% to Rs 1,404) and Wipro (down 0.81% to Rs 340.95) edged lower.
India's fifth-largest software exporter by sales HCL Technologies
fell 7.42% to Rs 197.15. HCL Technologies fell 7.42% to Rs 197.15.
On Friday, 26 September 2008, launched an all-cash offer for
UK-based SAP implementation consultancy Axon. The offer trumped an
earlier bid by Infosys, India's second largest IT services provider
by sales.
HCL's all-cash offer at 650 pence a share is 8.3% higher than the
600-pence offer by Infosys, which has promised a further
announcement 'in due course'. Reports suggest that Infosys is
expected to disclose its future plans on Axon on Monday, 29
September 2008.
Tata Motors (down 3.59% to Rs 360), Sterlite Industries (down 3.03%
to Rs 433.65), State Bank of India (down 3.08% to Rs 1,391), ICICI
Bank (down 2.85% to Rs 545.25) edged lower from the Sensex pack.
Grasim Industries (up 0.54% to Rs 1,770), ITC (up 0.49% to Rs
193.20), Bharat Heavy Electricals (up 0.47% to Rs 1,557.90), ONGC
(up 0.18% to Rs 1,037) edged higher from the Sensex pack.
Dr. Reddy's Laboratories declined 0.71% to Rs 512. The company has
received final approval from the US Food and Drug Administration
for nabumetone tablets. Nabumetone is a non-steroidal
anti-inflammatory drug used to treat arthritis related pain.
Suzlon Energy fell 0.46% to Rs 173.95. The company said today, 29
September 2008, IDFC Private Equity would buy 17.1% in subsidiary
SE Forge for Rs 400 crore. SE Forge, which specialises in
large-scale foundry and forging materials, is expanding capacity at
its plants in Coimbatore and Vadodara to cater to the growing
demand in the wind energy sector. Suzlon will continue to hold the
remaining stake in SE Forge.
Dynamatic Technologies fell 1.63% to Rs 1,071. The company has
acquired a 12 megawatt wind farm at Coimbatore from Tamilnadu
Petroproducts. This acquisition will enable Dynamatic to achieve
85% reduction in monthly energy costs at its Chennai complex and
combat energy-price inflation in future, the company said.
DS Kulkarni Developers rose 1.09% to Rs 64.90. The board of DS
Kulkarni Developers has approved investment in DSK Global up to the
tune of Rs 3 crore so as to make it a subsidiary of the company.
Avanti Feeds rose 3.99% to Rs 30. The company has announced that
its board will meet on 4 October 2008 to consider and approve issue
of equity shares on preferential basis to Thai Union Frozen
Products Public Company and the promoters through postal ballot.
Nestle India fell 0.91% to Rs 1,625. The company has unveiled its
capital expenditure of Rs 600 crore in 2009, which is double the Rs
300 crore that it is investing in the current year. The investment
would go in new research and development, advertising and capacity
building, Nestle's chairman and managing director, Martial Rolland,
said while addressing a press conference on Friday, 26 September
2008.
US light crude for November delivery fell $1.09 to $105.85 a barrel
today, 29 September 2008 pressured by gains in the US dollar.
Pre Market Report 29/09/2008
Key benchmark indices are likely to see firm start with the US lawmakers agreeing on a $700 billion bank-rescue package and the House of Representatives approving the nuclear deal with India, over the weekend.
The proposal to establish a $700 billion fund to buy illiquid securities will be sent to Congress later today, 29 September 2008 which will save the financial system from ruin.
The Indo-US nuclear deal moved into the last lap clearing a major hurdle when the House of Representatives approved a legislation on it that will now go to the Senate before the two countries can implement the civil nuclear agreement. The deal on non-proliferation grounds was adopted with 298 voting for and 117 against.
Fall in oil prices may also lift the sentiment. US light crude for November delivery fell $1.09 to $105.85 a barrel today, 29 September 2008 pressured by gains in the US dollar.
Most Asian markets were trading lower today, 29 September 2008. Hong Kong's Hang Seng plunged 1.31% or 245.50 points at 18,436.59, Singapore's Straits Times was down 0.19% or 4.54 points at 2,406.92, South Korea's Seoul Composite fell 1.13% or 16.7 points at 1,459.63. However, Japan's Nikkei gained 0.46% or 54.49 points at 11,947.65.
The Dow Jones gained 121.07 points, or 1.10%, to 11,143.13. The S&P 500 index was up 3.83 points, or 0.32%, to 1,213.01, and the Nasdaq composite index was down 3.23 points, or 0.15%, to 2,183.34.
Back home, indices tumbled on Friday, 26 September 2008 on uncertainty about the future of the US financial system. The BSE 30-share Sensex fell 445 points or 3.28% to 13,102.18 and the S&P CNX Nifty lost 137.10 points or 3.34% to 3985.25, on that day.
Key benchmark indices suffered a severe setback in the week ended Friday, 26 September 2008, mirroring weak global market and amid impasse over the proposed $700 billion bailout deal for the US financial sector. The barometer index BSE Sensex lost 940.14 points or 6.69% to 13,102.18 in and the S&P CNX Nifty shed 260 points or 6.12% at 3985.25, in the week.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 643.04 crore while mutual funds bought shares worth Rs 543.27 crore on Friday, 26 September 2008, according to provisional data on NSE. They were net buyers of Rs 173.23 crore in the futures & options segment on that day.
The proposal to establish a $700 billion fund to buy illiquid securities will be sent to Congress later today, 29 September 2008 which will save the financial system from ruin.
The Indo-US nuclear deal moved into the last lap clearing a major hurdle when the House of Representatives approved a legislation on it that will now go to the Senate before the two countries can implement the civil nuclear agreement. The deal on non-proliferation grounds was adopted with 298 voting for and 117 against.
Fall in oil prices may also lift the sentiment. US light crude for November delivery fell $1.09 to $105.85 a barrel today, 29 September 2008 pressured by gains in the US dollar.
Most Asian markets were trading lower today, 29 September 2008. Hong Kong's Hang Seng plunged 1.31% or 245.50 points at 18,436.59, Singapore's Straits Times was down 0.19% or 4.54 points at 2,406.92, South Korea's Seoul Composite fell 1.13% or 16.7 points at 1,459.63. However, Japan's Nikkei gained 0.46% or 54.49 points at 11,947.65.
The Dow Jones gained 121.07 points, or 1.10%, to 11,143.13. The S&P 500 index was up 3.83 points, or 0.32%, to 1,213.01, and the Nasdaq composite index was down 3.23 points, or 0.15%, to 2,183.34.
Back home, indices tumbled on Friday, 26 September 2008 on uncertainty about the future of the US financial system. The BSE 30-share Sensex fell 445 points or 3.28% to 13,102.18 and the S&P CNX Nifty lost 137.10 points or 3.34% to 3985.25, on that day.
Key benchmark indices suffered a severe setback in the week ended Friday, 26 September 2008, mirroring weak global market and amid impasse over the proposed $700 billion bailout deal for the US financial sector. The barometer index BSE Sensex lost 940.14 points or 6.69% to 13,102.18 in and the S&P CNX Nifty shed 260 points or 6.12% at 3985.25, in the week.
Foreign institutional investors (FIIs) were net equity sellers worth Rs 643.04 crore while mutual funds bought shares worth Rs 543.27 crore on Friday, 26 September 2008, according to provisional data on NSE. They were net buyers of Rs 173.23 crore in the futures & options segment on that day.
Sunday, September 28, 2008
Profits from Indian operations to fall: Bosch
German auto component major Bosch has said it expects profit from the firm's Indian operations to drop in the current year on account of high interest rates, increased commodity prices and overall inflation.
"... overall in the first six months of 2008, we were making reasonably good margins, reasonably good profits, but they are nowhere near what we used to make in the past," Bosch Managing Director V K Viswanathan said here.
The company, however, would make profits on margins this year too, he added.
"In the last six months, our profits managed to keep in line with that of the first half of the previous year, primarily because we have had some other income. Our turnover so far has grown by about 13-14 per cent in terms of sales growth but our profit growth has not been very well," Viswanathan said.
Bosch had posted a total income of Rs 4,576.54 crore during 2007 with a net profit of Rs 609.21 crore.
He blamed high interest rates, rising commodity prices and overall inflation as causes for the current slowdown in the auto industry.
"Interest rates caused by a high inflation have led to a credit squeeze and also cost of borrowing going up significantly. More than 70 per cent of the vehicles (in India) are sold through finance," Viswanathan said.
Overall inflation has affected the consumer's ability to spend, resulting in a fall in demand, he added.
"Commodity prices have also shot up very strongly, like steel, aluminium, copper and crude prices. These have led to increase in vehicle prices. On the other hand, even running costs are going up," he said, adding, overall there has been a significant slowdown in the automotive industry
"... overall in the first six months of 2008, we were making reasonably good margins, reasonably good profits, but they are nowhere near what we used to make in the past," Bosch Managing Director V K Viswanathan said here.
The company, however, would make profits on margins this year too, he added.
"In the last six months, our profits managed to keep in line with that of the first half of the previous year, primarily because we have had some other income. Our turnover so far has grown by about 13-14 per cent in terms of sales growth but our profit growth has not been very well," Viswanathan said.
Bosch had posted a total income of Rs 4,576.54 crore during 2007 with a net profit of Rs 609.21 crore.
He blamed high interest rates, rising commodity prices and overall inflation as causes for the current slowdown in the auto industry.
"Interest rates caused by a high inflation have led to a credit squeeze and also cost of borrowing going up significantly. More than 70 per cent of the vehicles (in India) are sold through finance," Viswanathan said.
Overall inflation has affected the consumer's ability to spend, resulting in a fall in demand, he added.
"Commodity prices have also shot up very strongly, like steel, aluminium, copper and crude prices. These have led to increase in vehicle prices. On the other hand, even running costs are going up," he said, adding, overall there has been a significant slowdown in the automotive industry
Indian banks post Rs 410 cr MTM losses
The Indian banking sector saw a mark-to-market losses of around Rs 400 crore due to their investment in instruments of troubled US financial giants like Lehman Brothers and AIG, 75 per cent of which is accounted by ICICI Bank alone.
"In terms of MTM losses of the banking sector including private sector, stood at Rs 410 crore owing to financial crisis in some of financial institutions. Of this, ICICI Bank alone has MTM loss of about Rs 309 crore," a senior Finance Ministry official said in New Delhi.
MTM is based on the market value of underlying securities and keep varying. MTM is a notional loss but it would be reflected in the balance sheet.
Besides, some state-owned banks had exposure in the instruments of these troubled US financial institutions to the tune of Rs 234 crore.
"Exposure of a few public sector banks to credit-linked and floating rate notes of Lehman Brothers and other troubled institutions is about USD 52 million," he said.
In his first reaction after the collapse of Lehman Brothers and the bailout of the largest US insurer AIG, Finance Minister P Chidambaram had said India's financial institutions were on a sound foundation.
As far as PSU banks are concerned, in which the government is a majority owner, he had said they didn't have any ‘undue exposure’.
"In fact, many of them have no exposure at all. Whatever exposure they have are in accordance with RBI's prudential guidelines," he said, adding, ICICI Bank had some exposure which it has disclosed.
The London subsidiary of ICICI Bank had USD 80-million exposure in the senior bonds of Lehman Brothers.
ICICI Bank Joint Managing Director Chanda Kochhar had said the investment by the subsidiary constitutes less than one per cent of the total assets of the subsidiary and less than 0.1 per cent of the consolidated total assets of the ICICI Group.
On June 30, 2008, ICICI Bank and its subsidiaries had consolidated total assets of Rs 484,643 crore.
The Finance Minister had said while the country's banking system was reasonably insulated from the global crisis, the credit crunch could have some effect in India as well.
"If there is a credit crunch in the rest of the world, it will, to some extent, impact the credit availability in Indian market. RBI, day before yesterday, took steps to provide liquidity to the banks," he had said
"In terms of MTM losses of the banking sector including private sector, stood at Rs 410 crore owing to financial crisis in some of financial institutions. Of this, ICICI Bank alone has MTM loss of about Rs 309 crore," a senior Finance Ministry official said in New Delhi.
MTM is based on the market value of underlying securities and keep varying. MTM is a notional loss but it would be reflected in the balance sheet.
Besides, some state-owned banks had exposure in the instruments of these troubled US financial institutions to the tune of Rs 234 crore.
"Exposure of a few public sector banks to credit-linked and floating rate notes of Lehman Brothers and other troubled institutions is about USD 52 million," he said.
In his first reaction after the collapse of Lehman Brothers and the bailout of the largest US insurer AIG, Finance Minister P Chidambaram had said India's financial institutions were on a sound foundation.
As far as PSU banks are concerned, in which the government is a majority owner, he had said they didn't have any ‘undue exposure’.
"In fact, many of them have no exposure at all. Whatever exposure they have are in accordance with RBI's prudential guidelines," he said, adding, ICICI Bank had some exposure which it has disclosed.
The London subsidiary of ICICI Bank had USD 80-million exposure in the senior bonds of Lehman Brothers.
ICICI Bank Joint Managing Director Chanda Kochhar had said the investment by the subsidiary constitutes less than one per cent of the total assets of the subsidiary and less than 0.1 per cent of the consolidated total assets of the ICICI Group.
On June 30, 2008, ICICI Bank and its subsidiaries had consolidated total assets of Rs 484,643 crore.
The Finance Minister had said while the country's banking system was reasonably insulated from the global crisis, the credit crunch could have some effect in India as well.
"If there is a credit crunch in the rest of the world, it will, to some extent, impact the credit availability in Indian market. RBI, day before yesterday, took steps to provide liquidity to the banks," he had said
Congress leaders, White House reach tentative deal on $700 billion financial bailout deal
WASHINGTON (AP) -- Congressional leaders and the Bush administration reached a tentative deal early Sunday on a landmark bailout of imperiled financial markets whose collapse could plunge the nation into a deep recession.
House Speaker Nancy Pelosi announced the $700 billion accord just after midnight but said it still has to be put on paper.
"We've still got more to do to finalize it, but I think we're there," said Treasury Secretary Henry Paulson, who also participated in the negotiations in the Capitol.
"We worked out everything," said Sen. Judd Gregg, R-N.H., the chief Senate Republican in the talks.
Congressional leaders hope to have the House vote on the measure Monday. A Senate vote would come later.
The plan calls for the Treasury Department to buy deeply distressed mortgage-backed securities and other bad debts held by banks and other investors. The money should help troubled lenders make new loans and keep credit lines open. The government would later try to sell the discounted loan packages at the best possible price.
At the insistence of House Republicans, some money would be devoted to a program that would encourage holders of distressed mortgage-backed securities to keep them and buy government insurance to cover defaults.
The legislation would place "reasonable" limits on severance packages for executives of companies that benefit from the rescue plan, said a senior administration official who was authorized to speak only on background. It would affect fired executives of financial firms, and executives of firms that go bankrupt. Some of the provisions would be retroactive and some prospective, the official said.
Also, the government would receive stock warrants in return for the bailout relief, giving taxpayers a chance to share in financial companies' future profits.
To help struggling homeowners, the plan would require the government to try renegotiating the bad mortgages it acquires with the aim of lowering borrowers' monthly payments so they can keep their homes.
The measure's main elements were proposed a week ago by the Bush administration, with Paulson heading efforts to push it through the Democratic-controlled Congress. Democrats insisted on greater congressional oversight, more taxpayer protections, help for homeowners facing possible foreclosure, and restrictions on executives' compensation.
To some degree, all those items were added.
At the insistence of House Republicans, who threatened to sidetrack negotiations at midweek, the insurance provision was added as an alternative to having the government buy distressed securities. House Republicans say it will require less taxpayer spending for the bailout.
But the Treasury Department has said the insurance provision would not pump enough money into the financial sector to make credit sufficiently available. The department would decide how to structure the insurance provisions, said Sen. Kent Conrad, D-N.D., one of the negotiators.
Money for the rescue plan would be phased in, he said. The first $350 billion would be available as soon as the president requested it. Congress could try to block later amounts if it believed the program was not working. The president could veto such a move, however, requiring extra large margins in the House and Senate to override.
Despite the changes made during an intense week of negotiations, the heart of the program remains Bush's original idea: To have the government spend billions of dollars to buy mortgage-backed securities whose value has plummeted as hundreds of thousands of Americans have defaulted on their home loans.
Senate Majority leader Harry Reid, D-Nev., said Saturday that the goal was to come up with a final agreement before the Asian markets open Sunday night. "Everybody is waiting for this thing to tip a little bit too far," he said, so "we may not have another day."
Hours later, when he and others told reporters of the plan in a post-midnight news conference, Reid referred to the sometimes testy nature of the negotiations.
"We've had a lot of pleasant words," he said, "and some that haven't always been pleasant."
"We're very pleased with the progress made tonight," said White House spokesman Tony Fratto. "We appreciate the bipartisan effort to deal with this urgent issue."
It was not immediately clear how many House Republicans might vote for the measure. With the election five weeks away, Democrats have said they would not push a plan that appeared sharply partisan in nature.
House Speaker Nancy Pelosi announced the $700 billion accord just after midnight but said it still has to be put on paper.
"We've still got more to do to finalize it, but I think we're there," said Treasury Secretary Henry Paulson, who also participated in the negotiations in the Capitol.
"We worked out everything," said Sen. Judd Gregg, R-N.H., the chief Senate Republican in the talks.
Congressional leaders hope to have the House vote on the measure Monday. A Senate vote would come later.
The plan calls for the Treasury Department to buy deeply distressed mortgage-backed securities and other bad debts held by banks and other investors. The money should help troubled lenders make new loans and keep credit lines open. The government would later try to sell the discounted loan packages at the best possible price.
At the insistence of House Republicans, some money would be devoted to a program that would encourage holders of distressed mortgage-backed securities to keep them and buy government insurance to cover defaults.
The legislation would place "reasonable" limits on severance packages for executives of companies that benefit from the rescue plan, said a senior administration official who was authorized to speak only on background. It would affect fired executives of financial firms, and executives of firms that go bankrupt. Some of the provisions would be retroactive and some prospective, the official said.
Also, the government would receive stock warrants in return for the bailout relief, giving taxpayers a chance to share in financial companies' future profits.
To help struggling homeowners, the plan would require the government to try renegotiating the bad mortgages it acquires with the aim of lowering borrowers' monthly payments so they can keep their homes.
The measure's main elements were proposed a week ago by the Bush administration, with Paulson heading efforts to push it through the Democratic-controlled Congress. Democrats insisted on greater congressional oversight, more taxpayer protections, help for homeowners facing possible foreclosure, and restrictions on executives' compensation.
To some degree, all those items were added.
At the insistence of House Republicans, who threatened to sidetrack negotiations at midweek, the insurance provision was added as an alternative to having the government buy distressed securities. House Republicans say it will require less taxpayer spending for the bailout.
But the Treasury Department has said the insurance provision would not pump enough money into the financial sector to make credit sufficiently available. The department would decide how to structure the insurance provisions, said Sen. Kent Conrad, D-N.D., one of the negotiators.
Money for the rescue plan would be phased in, he said. The first $350 billion would be available as soon as the president requested it. Congress could try to block later amounts if it believed the program was not working. The president could veto such a move, however, requiring extra large margins in the House and Senate to override.
Despite the changes made during an intense week of negotiations, the heart of the program remains Bush's original idea: To have the government spend billions of dollars to buy mortgage-backed securities whose value has plummeted as hundreds of thousands of Americans have defaulted on their home loans.
Senate Majority leader Harry Reid, D-Nev., said Saturday that the goal was to come up with a final agreement before the Asian markets open Sunday night. "Everybody is waiting for this thing to tip a little bit too far," he said, so "we may not have another day."
Hours later, when he and others told reporters of the plan in a post-midnight news conference, Reid referred to the sometimes testy nature of the negotiations.
"We've had a lot of pleasant words," he said, "and some that haven't always been pleasant."
"We're very pleased with the progress made tonight," said White House spokesman Tony Fratto. "We appreciate the bipartisan effort to deal with this urgent issue."
It was not immediately clear how many House Republicans might vote for the measure. With the election five weeks away, Democrats have said they would not push a plan that appeared sharply partisan in nature.
Post Market Report:26/09/2008
The key benchmark indices ended sharply lower as uncertainty over
the fate of the US government's $700 billion rescue plan for the
financial sector hurt investor sentiment. As per provisional
closing, the BSE 30-share Sensex was down 485.64. News of the
biggest ever US bank failure compounded the bearish sentiments,
with the US government brokering a last-ditch purchase of thrift
Washington Mutual by JPMorgan.
All the sectoral indices on BSE, barring the FMCG index, ended in
red. Mid-cap and small-cap stocks, too, witnessed major selling
pressure. India's largest drug maker by sales Ranbaxy Laboratories
slumped.
Weak US economic data also weighed on market sentiments. Data
released overnight showed US-made durable goods fell 4.5% in August
2008, while sales of new homes in the US dropped 11.5% during the
month. First-time jobless claims in the US rose to their highest
count in seven years pointing to a slow down.
European market, which opened after Indian markets, were negative.
Key indices in UK, France and Germany were down 2.07% to 2.12%.
Asian market, which opened before Indian market, were in red. Key
benchmark indices in China, Hong Kong, Japan, South Korea,
Singapore and Taiwan were down by between 0.16% to 2.16%.
As per provisional closing, the BSE 30-share Sensex was down 485.64
points or 3.58% to 13,061.54. The index shed 492.76 points at the
day's low of 13,054.42 at the fag end of the trade. The Sensex fell
60.98 points at day's high of 13,486.20, hit at the onset of
trading session.
The S&P CNX Nifty was down 137.10 points or 3.34% to 3973.45.
The BSE Mid-Cap index was down 3.17% at 4,931.52 and the BSE
Small-Cap index was down 3.28% at 5,851.54.
The market breadth was poor on BSE with 455 shares advancing as
compared to 2158 that declined. 60 shares remained unchanged.
BSE clocked a turnover of Rs 4835 crore as against Rs 5,070.61
crore on Thursday, 25 September 2008.
ITC (up 1.11% at Rs 190.50), Hindustan Unilever (up 0.98% at Rs
252), and ACC (p 0.47% at Rs 614), were the only gainers from the
Sensex pack.
Ranbaxy Laboratories (down 7.07% at Rs 275.25), Mahindra & Mahindra
(down 6.235 at Rs 524), Sterlite Industries (down 5.95% at Rs
448.75), Bharat Heavy Electricals (down 5.635 at Rs 1541), and Tata
Steel (down 4.88% at Rs 461.40), were the major losers from the
Sensex pack.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) fell 3.17% at Rs 1960.90.
India's second largest software exporter by sales Infosys
Technologies fell 3.80% at Rs 1447.70.
India's largest private sector bank by market capitalisation ICICI
Bank fell 5.83% at Rs 561.25.
At 16:20 IST, the crude oil for November 2008 delivery hovered at
$105.34 a barrel on the New York Mercantile Exchange.
The US Congress struggled to find agreement on modifying the Bush
proposal to attack the housing market crisis. The Bush
administration, last week, proposed a $700 billion financial rescue
package, aimed at staving off the collapse of the US financial
system. Meanwhile, a group of conservative Republican lawmakers
proposed an alternative mortgage insurance plan.
In a major development, JPMorgan Chase acquired the banking assets
of Washington Mutual late on Thursday, 25 September 2008, after the
troubled thrift was seized by federal regulators, marking the
biggest bank failure in the United States and the latest stunning
twist in the ongoing credit crisis.
the fate of the US government's $700 billion rescue plan for the
financial sector hurt investor sentiment. As per provisional
closing, the BSE 30-share Sensex was down 485.64. News of the
biggest ever US bank failure compounded the bearish sentiments,
with the US government brokering a last-ditch purchase of thrift
Washington Mutual by JPMorgan.
All the sectoral indices on BSE, barring the FMCG index, ended in
red. Mid-cap and small-cap stocks, too, witnessed major selling
pressure. India's largest drug maker by sales Ranbaxy Laboratories
slumped.
Weak US economic data also weighed on market sentiments. Data
released overnight showed US-made durable goods fell 4.5% in August
2008, while sales of new homes in the US dropped 11.5% during the
month. First-time jobless claims in the US rose to their highest
count in seven years pointing to a slow down.
European market, which opened after Indian markets, were negative.
Key indices in UK, France and Germany were down 2.07% to 2.12%.
Asian market, which opened before Indian market, were in red. Key
benchmark indices in China, Hong Kong, Japan, South Korea,
Singapore and Taiwan were down by between 0.16% to 2.16%.
As per provisional closing, the BSE 30-share Sensex was down 485.64
points or 3.58% to 13,061.54. The index shed 492.76 points at the
day's low of 13,054.42 at the fag end of the trade. The Sensex fell
60.98 points at day's high of 13,486.20, hit at the onset of
trading session.
The S&P CNX Nifty was down 137.10 points or 3.34% to 3973.45.
The BSE Mid-Cap index was down 3.17% at 4,931.52 and the BSE
Small-Cap index was down 3.28% at 5,851.54.
The market breadth was poor on BSE with 455 shares advancing as
compared to 2158 that declined. 60 shares remained unchanged.
BSE clocked a turnover of Rs 4835 crore as against Rs 5,070.61
crore on Thursday, 25 September 2008.
ITC (up 1.11% at Rs 190.50), Hindustan Unilever (up 0.98% at Rs
252), and ACC (p 0.47% at Rs 614), were the only gainers from the
Sensex pack.
Ranbaxy Laboratories (down 7.07% at Rs 275.25), Mahindra & Mahindra
(down 6.235 at Rs 524), Sterlite Industries (down 5.95% at Rs
448.75), Bharat Heavy Electricals (down 5.635 at Rs 1541), and Tata
Steel (down 4.88% at Rs 461.40), were the major losers from the
Sensex pack.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries (RIL) fell 3.17% at Rs 1960.90.
India's second largest software exporter by sales Infosys
Technologies fell 3.80% at Rs 1447.70.
India's largest private sector bank by market capitalisation ICICI
Bank fell 5.83% at Rs 561.25.
At 16:20 IST, the crude oil for November 2008 delivery hovered at
$105.34 a barrel on the New York Mercantile Exchange.
The US Congress struggled to find agreement on modifying the Bush
proposal to attack the housing market crisis. The Bush
administration, last week, proposed a $700 billion financial rescue
package, aimed at staving off the collapse of the US financial
system. Meanwhile, a group of conservative Republican lawmakers
proposed an alternative mortgage insurance plan.
In a major development, JPMorgan Chase acquired the banking assets
of Washington Mutual late on Thursday, 25 September 2008, after the
troubled thrift was seized by federal regulators, marking the
biggest bank failure in the United States and the latest stunning
twist in the ongoing credit crisis.
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