WASHINGTON (AP) -- Regulators shut down Houston-based Franklin Bank
and Security Pacific Bank in Los Angeles on Friday, bringing the
number of failures of federally insured banks this year to 19.
The Federal Deposit Insurance Corp. was appointed receiver of Franklin
Bank, which had $5.1 billion in assets and $3.7 billion in deposits as
of Sept. 30, and of Security Pacific Bank, with $561.1 million in
assets and $450.1 million in deposits as of Oct. 17
The co-founder and chairman of parent Franklin Bank Corp., Lewis
Ranieri, is credited with inventing mortgage-backed securities two
decades ago, but apparently was unable to save his own company from
getting ensnared in the home-loan bust.
The bank's failure is a bitter irony because it is the mortgage
securitization business of which Ranieri is known as a pioneer -- the
repackaging of home loans as bonds that are sold to investors -- that
was at the heart of the mortgage and credit crises. Last spring, the
audit committee of the company's board found in an investigation
certain weaknesses in accounting, disclosure and other issues relating
to residential real estate loans.
Franklin Bank Corp. just Sunday said it had received proposals for
transactions to strengthen Franklin Bank's capital position and was
keeping regulators informed of the talks' progress.
Saturday, November 8, 2008
Friday, November 7, 2008
Post Market Report:07/11/2008
Data showing rise in infrastructure sector output and positive
global cues helped the domestic bourses snap losses in the
preceding two trading session. The BSE Sensex rose 230.07 points or
2.36%. The barometer index breached the psychological 10,000 level
many times in intraday trade though it ended below that level.
Metal stocks rose on recovery in metal prices on the London Metal
Exchange. PSU banks rose on cut in lending rates. IT stocks rose as
a weak rupee offset fall in American depository receipts overnight.
Data showing rise in infrastructure output offset concerns of
economic slowdown triggered by productions cuts announced by
commercial vehicle makers in the last two days and steel maker JSW
Steel today and reduction in gross domestic product (GDP) forecast
for 2009 by the International Monetary Fund. India's infrastructure
sector output grew 5.1% in September 2008 from a year earlier, well
above 2.3% annual growth in August 2008, government data released
earlier in the day showed.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
European shares edged higher as commodities stocks tracked stronger
crude and metals prices and banking shares gained following
interest rate cuts in the previous session. Key benchmark indices
in France, Germany and UK were up by between 0.31% to 1.9%. The
Bank of England slashed the key interest rate by a steep 1.5% on
Thursday, 6 November 2008 and on the same day the European Central
Bank cut the key rate by 50 basis points.
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, and rate cut in
Europe triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Singapore, Hong Kong, Taiwan, rose by
between 1.034% to 3.29%. Japan's Nikkei average was down 3.55% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 100 points
at the opening bell.
The 30-share BSE Sensex was up 230.07 points or 2.36% at 9,964.29.
The index rose 331.15 points at the day's high of 10,065.37 in late
trade. The index fell 121 points at the day's low of 9,631.59 hit
in early trade.
The 50-unit S&P Nifty was up 80.35 points or 2.78% to 2,973.
The BSE clocked a turnover of Rs 3447 crore today as compared to a
turnover of Rs 4010.92 crore on 6 November 2008
The market recovered after a sharp slide in the past two trading
sessions. From the recent high of 10631.12 on 4 November 2008 the
Sensex had lost 896.90 points or 8.43% to 9734.22 on 6 November
2008. There has been a massive erosion in investors' wealth this
year. The Sensex is down 10,322.70 points or 50.88% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 11,242.48 points or 53.01% below its all-time high of
21,206.77 struck on 10 January 2008.
Nifty November 2008 futures were at 2989.10, at a premium of 16.10
points as compared to spot closing of 2973. NSE's futures & options
(F&O) segment turnover was Rs 36,963.32 crore, which was lower than
Rs 43,836.07 crore on Thursday, 6 November 2008.
The BSE Mid-cap index was up 1.11% to 3,355.38, while the BSE
Small-cap index was up 0.51% to 3,900.10. Both the indices
underperformed the Sensex.
The BSE Power index (up 4.43% to 1,777.57), the BSE Oil & Gas index
(up 3.38% to 6,013.57), the BSE Metal index (up 3.18% to 5,152.33),
the BSE PSU index (up 3.01% to 4,965.80), the BSE Realty index (up
2.72% to 2,342.82) outperformed the Sensex.
The BSE Auto index (up 0.5% to 2,661.53), the BSE HealthCare index
(up 0.54% to 2,937.11), the BSE Consumer Durables index (up 1.29%
to 2,094.87), the BSE Capital Goods index (up 1.61% to 7,635.41),
the BSE Bankex (up 1.66% to 5,532.15), the BSE IT index (up 2.01%
to 2,670.54), the BSE Teck index (up 2.16% to 2,085.84) and BSE
FMCG index (up 2.22% to 1,968.70) underperformed the Sensex.
The market breadth turned positive later in the day from earlier
weak breadth. On BSE, 1124 stocks declined while 1417 gained. 75
stocks remained unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 3.95% to Rs 1,217.85 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Reliance Communications (up 5.53% to Rs 228.15), Jaiprakash
Associates (up 4.65% to Rs 87.70) and ITC (up 3.59% to Rs 174.80)
were the major gainers from the Sensex pack.
Power stocks gained. NTPC, Tata Power Company, Reliance
Infrastructure, Reliance Power, Power Grid Corporation of India
rose by between 2.61% to 10.92%.
Metal stocks gained tracking recovery in metal prices on the London
Metal Exchange. Tata Steel, Sterlite Industries, Steel Authority of
India, Hindustan Zinc, National Aluminum Company rose by between
2.07% to 10.68%.
Indiaâ€(TM)s largest aluminum maker by sales, Hindalco Industries
spurted 6.61% on reports the company has cleared the bridge loan
taken to acquire Canada's Novelis. But steel maker JSW Steel
plunged 5.18%, on production cut plan.
Shares of iron ore exporters rose on a television report that the
railway freight rates for iron ore has been cut by 50% from 8
November to 31 December 2008. Sesa Goa rose 3.10% and NMDC gained
2.4%.
The reductions would be applicable for iron ore traffic loaded in
South Eastern, East Coast and South Western Railways and for
distances above 350 kilometer to 400 kilometer
Auto pivotals fell after commercial vehicle makers announced
production cut amid falling demand for vehicles. Ashok Leyland,
India's second-biggest commercial vehicle maker by sales, fell
4.57% on a decision to cut production at its plants to three days a
week until the end of 2008 because of falling demand for its
vehicles.
But India's largest commercial vehicle maker by sales Tata Motors
recovered from the day's low. The stock was down 0.16% to Rs
158.90, off the day's low of Rs 148. Its ADR lost 3.81% overnight
after the company on 6 November 2008 had announced closing of the
commercial vehicle plant at Jamshedpur owing to a demand slump.
The country's largest passenger car maker by sales Maruti Suzuki
fell 0.38%. The company on 1 November 2008 said its sales in
October 2008 dipped 7% at 64,490 units, against 69,415 units in the
same month last year.
Shares of the two-wheeler makers were mixed. Indiaâ€(TM)s largest
motorbike maker by sales Hero Honda Motor rose 4.15%, and TVS Motor
Company fell 1.98%. Indiaâ€(TM)s largest scooter maker by sales Bajaj
Auto was up 0.94%. Last month, reports quoted a senior executive in
Bajaj Auto, India's second biggest motorcycle maker by sales, as
saying that it could cut production in November 2008 after the
festive season.
Meanwhile, the Petroleum Secretary, R S Pandey on Thursday (6
November 2008) said the government was not considering any fuel
price cut at the moment as public sector oil marketing companies
are still incurring revenue loss on sale of various petroleum
products.
Most of the IT stocks spurted after dismal start as a weak rupee
offset slide in weak American depository receipts overnight caused
by worries the US outsourcing business will be curtailed and the
direct impact will be on IT sector after Barack Obama won the US
presidential election early this week. India's third largest IT
exporter by sales Satyam Computer Services rose 3.16% to Rs 277.75,
off the dayâ€(TM)s low of Rs 263. Its American depository receipt
(ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys rose 1.15% to
Rs 1262.50, off the dayâ€(TM)s low of Rs 1205.25 even as ADR fell
10.47%. India's fourth largest IT exporter by sales Wipro rose 2.9%
to Rs 260.45 even as ADR slipped 8.56%. The stock had slipped 6.31%
in previous trading session. India's largest IT exporter by sales
Tata Consultancy Services rose 4.87% to Rs 524.55 off dayâ€(TM)s low
of Rs 485.10. The stock had slipped 1.08% in previous trading
session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee weakened on Friday as expectations of
further foreign investor outflows from the stock market weighed on
sentiment. The partially convertible rupee was at 47.77/78 per
dollar, 0.1 % weaker than 47.66/69 at close on Thursday.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). Bank of Baroda,
Allahabad Bank, Central Bank of India, Oriental Bank of Commerce
and Corporation Bank rose by between 2.09% to 6.21%. All of them
reduced lending rates by 75 bps to 13.25% with effect from 10
November 2008.
India's largest commercial bank State Bank of India (SBI) rose
2.79% on a decision to cut the PLR by 75 basis points (bps) with
effect from 10 November 2008 and deposit rates by 25 to 50 bps
across all maturities effective 1 December 2008.
India's largest private sector bank by net profit ICICI Bank fell
0.67% as American depository receipt (ADR) lost 2.68% overnight.
ICICI Bank's chief executive K.V. Kamath said on 3 November 2008,
the bank will review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 2.64% to Rs 1,088.55 off dayâ€(TM)s low of Rs 1,032 even as ADR
slumped 4.81% on Thursday.
India's largest home loan lender by operating income HDFC jumped
2.64%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous weekâ€(TM)s
10.68% rise.
PSU OMCs rose after the Petroleum Secretary, R.S. Pandey, said, the
government is not considering any fuel price cut at the moment as
public sector oil marketing companies are still incurring revenue
loss on sale of various petroleum products. BPCL, HPCL and Indian
Oil Corporation fell by between 6.85% to 8.94%. Meanwhile, crude
oil rose from a 19-month low in New York as rising stock indexes
allayed concern about waning demand and a weaker dollar bolstered
the appeal of commodities. Oil for December delivery climbed as
much as 2.9%, to $62.50 a barrel on the New York Mercantile
Exchange.
Indiaâ€(TM)s largest state-run oil explorer by market capitalization
ONGC fell 0.29% despite reports Russia has allowed the company to
purchase London-listed Imperial Energy.
India's largest drug maker by sales Ranbaxy Laboratories rose 0.95%
recovering from earlier fall as Daiichi Sankyo Co, Japan's No. 3
drugmaker, said on Friday it had completed the takeover of Ranbaxy
Laboratories, buying a 63.9 % stake for Rs 19980 crore ($4.20
billion). Daiichi Sankyo reached an agreement with the generic
drugmaker in June 2008 to buy a stake of at least 50.1% through a
tender offer, the private placement of new shares and the purchase
of outstanding shares from the founding family.
Plethico Pharmaceuticals was locked at the upper limit of 5% on BSE
on reports the company may pick up stake in a UAE based pharma
retail chain.
Alembic galloped 12.3%on BSE, on buyback plan.
Airline stocks rose on reports Indiaâ€(TM)s two largest private
airlines, Kingfisher Airlines and Jet Airways, are likely to cut
ticket prices by up to Rs 1,000 on domestic routes by December
2008. SpiceJet, Kingfisher Airlines and Jet Airways rose by between
1.26% to 2.89%. The two carriers Kingfisher Airlines and Jet
Airways are under pressure to act, as the aviation ministry wants
them to pass on the benefits of a series of measures announced by
the government to bail out the beleaguered industry.
Last week, oil marketing companies had announced a 17% cut in
aviation turbine fuel (ATF) prices, while the government reduced
customs duty on jet fuel by 5%.
Shares of fertiliser makers extended gains after the fertiliser
minister said on Thursday, 6 November 2008, he expected gas supply
to fertiliser units to more than triple by 2011/12 from current
levels. Rashtriya Chemicals , Tata Chemicals, Chambal Fertilisers &
Chemicals, GNFC, Nagarjuna Fertilizers & Chemicals and National
Fertilizers were up by 2% to 5%.
United Phosphorus surged 3.62% after an interse transfer of shares
took place between the promoter group at 10.3% premium to the
ruling price.
Roman Tarmat rose 10%, on bagging runways upgradation order.
Suzlon Energy clocked the highest volume of 2.72 crore shares on
BSE. GVK Power & Infrastructure (2.23 crore shares), Reliance
Natural Resources (1.1 crore shares), Housing Development &
Infrastructure (87.16 lakh shares) and Tata Tele Maharashtra (79.52
lakh shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 292.84 crore
on BSE. Suzlon Energy (Rs 183.77 crore), State Bank of India (Rs
159.91 crore), Reliance Capital (Rs 151.72 crore) and ICICI Bank
(Rs 123.52 crore) were the other turnover toppers in that order.
global cues helped the domestic bourses snap losses in the
preceding two trading session. The BSE Sensex rose 230.07 points or
2.36%. The barometer index breached the psychological 10,000 level
many times in intraday trade though it ended below that level.
Metal stocks rose on recovery in metal prices on the London Metal
Exchange. PSU banks rose on cut in lending rates. IT stocks rose as
a weak rupee offset fall in American depository receipts overnight.
Data showing rise in infrastructure output offset concerns of
economic slowdown triggered by productions cuts announced by
commercial vehicle makers in the last two days and steel maker JSW
Steel today and reduction in gross domestic product (GDP) forecast
for 2009 by the International Monetary Fund. India's infrastructure
sector output grew 5.1% in September 2008 from a year earlier, well
above 2.3% annual growth in August 2008, government data released
earlier in the day showed.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
European shares edged higher as commodities stocks tracked stronger
crude and metals prices and banking shares gained following
interest rate cuts in the previous session. Key benchmark indices
in France, Germany and UK were up by between 0.31% to 1.9%. The
Bank of England slashed the key interest rate by a steep 1.5% on
Thursday, 6 November 2008 and on the same day the European Central
Bank cut the key rate by 50 basis points.
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, and rate cut in
Europe triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Singapore, Hong Kong, Taiwan, rose by
between 1.034% to 3.29%. Japan's Nikkei average was down 3.55% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 100 points
at the opening bell.
The 30-share BSE Sensex was up 230.07 points or 2.36% at 9,964.29.
The index rose 331.15 points at the day's high of 10,065.37 in late
trade. The index fell 121 points at the day's low of 9,631.59 hit
in early trade.
The 50-unit S&P Nifty was up 80.35 points or 2.78% to 2,973.
The BSE clocked a turnover of Rs 3447 crore today as compared to a
turnover of Rs 4010.92 crore on 6 November 2008
The market recovered after a sharp slide in the past two trading
sessions. From the recent high of 10631.12 on 4 November 2008 the
Sensex had lost 896.90 points or 8.43% to 9734.22 on 6 November
2008. There has been a massive erosion in investors' wealth this
year. The Sensex is down 10,322.70 points or 50.88% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 11,242.48 points or 53.01% below its all-time high of
21,206.77 struck on 10 January 2008.
Nifty November 2008 futures were at 2989.10, at a premium of 16.10
points as compared to spot closing of 2973. NSE's futures & options
(F&O) segment turnover was Rs 36,963.32 crore, which was lower than
Rs 43,836.07 crore on Thursday, 6 November 2008.
The BSE Mid-cap index was up 1.11% to 3,355.38, while the BSE
Small-cap index was up 0.51% to 3,900.10. Both the indices
underperformed the Sensex.
The BSE Power index (up 4.43% to 1,777.57), the BSE Oil & Gas index
(up 3.38% to 6,013.57), the BSE Metal index (up 3.18% to 5,152.33),
the BSE PSU index (up 3.01% to 4,965.80), the BSE Realty index (up
2.72% to 2,342.82) outperformed the Sensex.
The BSE Auto index (up 0.5% to 2,661.53), the BSE HealthCare index
(up 0.54% to 2,937.11), the BSE Consumer Durables index (up 1.29%
to 2,094.87), the BSE Capital Goods index (up 1.61% to 7,635.41),
the BSE Bankex (up 1.66% to 5,532.15), the BSE IT index (up 2.01%
to 2,670.54), the BSE Teck index (up 2.16% to 2,085.84) and BSE
FMCG index (up 2.22% to 1,968.70) underperformed the Sensex.
The market breadth turned positive later in the day from earlier
weak breadth. On BSE, 1124 stocks declined while 1417 gained. 75
stocks remained unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 3.95% to Rs 1,217.85 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Reliance Communications (up 5.53% to Rs 228.15), Jaiprakash
Associates (up 4.65% to Rs 87.70) and ITC (up 3.59% to Rs 174.80)
were the major gainers from the Sensex pack.
Power stocks gained. NTPC, Tata Power Company, Reliance
Infrastructure, Reliance Power, Power Grid Corporation of India
rose by between 2.61% to 10.92%.
Metal stocks gained tracking recovery in metal prices on the London
Metal Exchange. Tata Steel, Sterlite Industries, Steel Authority of
India, Hindustan Zinc, National Aluminum Company rose by between
2.07% to 10.68%.
Indiaâ€(TM)s largest aluminum maker by sales, Hindalco Industries
spurted 6.61% on reports the company has cleared the bridge loan
taken to acquire Canada's Novelis. But steel maker JSW Steel
plunged 5.18%, on production cut plan.
Shares of iron ore exporters rose on a television report that the
railway freight rates for iron ore has been cut by 50% from 8
November to 31 December 2008. Sesa Goa rose 3.10% and NMDC gained
2.4%.
The reductions would be applicable for iron ore traffic loaded in
South Eastern, East Coast and South Western Railways and for
distances above 350 kilometer to 400 kilometer
Auto pivotals fell after commercial vehicle makers announced
production cut amid falling demand for vehicles. Ashok Leyland,
India's second-biggest commercial vehicle maker by sales, fell
4.57% on a decision to cut production at its plants to three days a
week until the end of 2008 because of falling demand for its
vehicles.
But India's largest commercial vehicle maker by sales Tata Motors
recovered from the day's low. The stock was down 0.16% to Rs
158.90, off the day's low of Rs 148. Its ADR lost 3.81% overnight
after the company on 6 November 2008 had announced closing of the
commercial vehicle plant at Jamshedpur owing to a demand slump.
The country's largest passenger car maker by sales Maruti Suzuki
fell 0.38%. The company on 1 November 2008 said its sales in
October 2008 dipped 7% at 64,490 units, against 69,415 units in the
same month last year.
Shares of the two-wheeler makers were mixed. Indiaâ€(TM)s largest
motorbike maker by sales Hero Honda Motor rose 4.15%, and TVS Motor
Company fell 1.98%. Indiaâ€(TM)s largest scooter maker by sales Bajaj
Auto was up 0.94%. Last month, reports quoted a senior executive in
Bajaj Auto, India's second biggest motorcycle maker by sales, as
saying that it could cut production in November 2008 after the
festive season.
Meanwhile, the Petroleum Secretary, R S Pandey on Thursday (6
November 2008) said the government was not considering any fuel
price cut at the moment as public sector oil marketing companies
are still incurring revenue loss on sale of various petroleum
products.
Most of the IT stocks spurted after dismal start as a weak rupee
offset slide in weak American depository receipts overnight caused
by worries the US outsourcing business will be curtailed and the
direct impact will be on IT sector after Barack Obama won the US
presidential election early this week. India's third largest IT
exporter by sales Satyam Computer Services rose 3.16% to Rs 277.75,
off the dayâ€(TM)s low of Rs 263. Its American depository receipt
(ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys rose 1.15% to
Rs 1262.50, off the dayâ€(TM)s low of Rs 1205.25 even as ADR fell
10.47%. India's fourth largest IT exporter by sales Wipro rose 2.9%
to Rs 260.45 even as ADR slipped 8.56%. The stock had slipped 6.31%
in previous trading session. India's largest IT exporter by sales
Tata Consultancy Services rose 4.87% to Rs 524.55 off dayâ€(TM)s low
of Rs 485.10. The stock had slipped 1.08% in previous trading
session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee weakened on Friday as expectations of
further foreign investor outflows from the stock market weighed on
sentiment. The partially convertible rupee was at 47.77/78 per
dollar, 0.1 % weaker than 47.66/69 at close on Thursday.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). Bank of Baroda,
Allahabad Bank, Central Bank of India, Oriental Bank of Commerce
and Corporation Bank rose by between 2.09% to 6.21%. All of them
reduced lending rates by 75 bps to 13.25% with effect from 10
November 2008.
India's largest commercial bank State Bank of India (SBI) rose
2.79% on a decision to cut the PLR by 75 basis points (bps) with
effect from 10 November 2008 and deposit rates by 25 to 50 bps
across all maturities effective 1 December 2008.
India's largest private sector bank by net profit ICICI Bank fell
0.67% as American depository receipt (ADR) lost 2.68% overnight.
ICICI Bank's chief executive K.V. Kamath said on 3 November 2008,
the bank will review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 2.64% to Rs 1,088.55 off dayâ€(TM)s low of Rs 1,032 even as ADR
slumped 4.81% on Thursday.
India's largest home loan lender by operating income HDFC jumped
2.64%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous weekâ€(TM)s
10.68% rise.
PSU OMCs rose after the Petroleum Secretary, R.S. Pandey, said, the
government is not considering any fuel price cut at the moment as
public sector oil marketing companies are still incurring revenue
loss on sale of various petroleum products. BPCL, HPCL and Indian
Oil Corporation fell by between 6.85% to 8.94%. Meanwhile, crude
oil rose from a 19-month low in New York as rising stock indexes
allayed concern about waning demand and a weaker dollar bolstered
the appeal of commodities. Oil for December delivery climbed as
much as 2.9%, to $62.50 a barrel on the New York Mercantile
Exchange.
Indiaâ€(TM)s largest state-run oil explorer by market capitalization
ONGC fell 0.29% despite reports Russia has allowed the company to
purchase London-listed Imperial Energy.
India's largest drug maker by sales Ranbaxy Laboratories rose 0.95%
recovering from earlier fall as Daiichi Sankyo Co, Japan's No. 3
drugmaker, said on Friday it had completed the takeover of Ranbaxy
Laboratories, buying a 63.9 % stake for Rs 19980 crore ($4.20
billion). Daiichi Sankyo reached an agreement with the generic
drugmaker in June 2008 to buy a stake of at least 50.1% through a
tender offer, the private placement of new shares and the purchase
of outstanding shares from the founding family.
Plethico Pharmaceuticals was locked at the upper limit of 5% on BSE
on reports the company may pick up stake in a UAE based pharma
retail chain.
Alembic galloped 12.3%on BSE, on buyback plan.
Airline stocks rose on reports Indiaâ€(TM)s two largest private
airlines, Kingfisher Airlines and Jet Airways, are likely to cut
ticket prices by up to Rs 1,000 on domestic routes by December
2008. SpiceJet, Kingfisher Airlines and Jet Airways rose by between
1.26% to 2.89%. The two carriers Kingfisher Airlines and Jet
Airways are under pressure to act, as the aviation ministry wants
them to pass on the benefits of a series of measures announced by
the government to bail out the beleaguered industry.
Last week, oil marketing companies had announced a 17% cut in
aviation turbine fuel (ATF) prices, while the government reduced
customs duty on jet fuel by 5%.
Shares of fertiliser makers extended gains after the fertiliser
minister said on Thursday, 6 November 2008, he expected gas supply
to fertiliser units to more than triple by 2011/12 from current
levels. Rashtriya Chemicals , Tata Chemicals, Chambal Fertilisers &
Chemicals, GNFC, Nagarjuna Fertilizers & Chemicals and National
Fertilizers were up by 2% to 5%.
United Phosphorus surged 3.62% after an interse transfer of shares
took place between the promoter group at 10.3% premium to the
ruling price.
Roman Tarmat rose 10%, on bagging runways upgradation order.
Suzlon Energy clocked the highest volume of 2.72 crore shares on
BSE. GVK Power & Infrastructure (2.23 crore shares), Reliance
Natural Resources (1.1 crore shares), Housing Development &
Infrastructure (87.16 lakh shares) and Tata Tele Maharashtra (79.52
lakh shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 292.84 crore
on BSE. Suzlon Energy (Rs 183.77 crore), State Bank of India (Rs
159.91 crore), Reliance Capital (Rs 151.72 crore) and ICICI Bank
(Rs 123.52 crore) were the other turnover toppers in that order.
Market extends gains as European stocks rise
The key benchmark indices extended gains to hit fresh intraday
highs in mid-afternoon trade as European markets, which opened
after the Indian market, rose in early trade. The BSE Sensex was up
232.58 points or 2.4%. Sensex breached the psychological 10,000
mark in mid-afternoon trade but was now below that level. Data
showing rise in infrastructure sector output and positive global
cues boosted the domestic bourses
Most of the IT stocks came off the day's lows as a weak rupee
offset fall in American depository receipts overnight. PSU banks
rose on cut in lending rates.
Data showing rise in infrastructure output offset concerns of
economic slowdown triggered by productions cuts announced by
commercial vehicle makers in the last two days and steel maker JSW
Steel today and reduction in gross domestic product (GDP) forecast
for 2009 by the International Monetary Fund. India's infrastructure
sector output grew 5.1% in September 2008 from a year earlier, well
above 2.3% annual growth in August 2008, government data released
earlier in the day showed.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
European shares rose in early trade on Friday, as commodities
stocks tracked stronger crude and metals prices and banking shares
gained following interest rate cuts in the previous session. Key
benchmark indices in France, Germany and UK were up by between 0.7%
to 1.81%. The Bank of England slashed interest rate by a steep 1.5%
on Thursday, 6 November 2008 and on the same day the European
Central Bank cut rate by 50 basis points
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, and rate cut in
Europe triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Singapore, Hong Kong, Taiwan, rose by
between 1.034% to 3.29%. Japan's Nikkei average was down 3.55% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 163 points
at the opening bell.
At 14:24 IST, the 30-share BSE Sensex was up 232.58 points or 2.4%
at 9,972.41. The index fell 121 points at the day's low of 9,631.59
hit in early trade. The barometer index rose 291.58 points at the
day's high of 10,025.80 in mid-afternoon trade.
The 50-unit S&P Nifty was up 78.50 points or 2.71% to 2,971.15.
The BSE Mid-cap index was up 0.58% to 3,337.73, while the BSE
Small-cap index was up 0.41% to 3,896.19. Both the indices
underperformed the sensex.
The market breadth turned positive from earlier weak breadth. On
BSE, 1080 stocks declined while 1322 gained. 86 stocks remained
unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 3.88% to Rs 1,217 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Reliance Infrastrucutre (up 7.32% to Rs 542.50), Sterlite
Industries (up 5.15% to Rs 449.90), Jaiprakash Associates (up 4.65%
to Rs 87.70) and were the major gainers from the Sensex pack.
Grasim Industries (down 0.8% to Rs 1,016) and Maruti Suzuki India
(down 0.16% to Rs 599) were the major losers from the Sensex pack.
India's largest drug maker by sales Ranbaxy Laboratories fell 0.32%
even as Daiichi Sankyo Co, Japan's No. 3 drugmaker, said on Friday
it had completed the takeover of Ranbaxy Laboratories, buying a
63.9 % stake for Rs 19980 crore ($4.20 billion). Daiichi Sankyo
reached an agreement with the generic drugmaker in June 2008 to buy
a stake of at least 50.1 % through a tender offer, the private
placement of new shares and the purchase of outstanding shares from
the founding family.
India�s largest aluminum maker by sales, Hindalco Industries
spurted 9.26% on reports the company has cleared the bridge loan
taken to acquire Canada's Novelis.
Telecom stocks rose on bargain hunting after steep losses of the
past two days caused by reports of the government planning to levy
higher spectrum fee. Bharti Airtel, Reliance Communications, Spice
Communictions and Idea Cellular rose by between 0.24% to 2.85%.
Most of the IT stocks spurted after weak start as a weak rupee
offset slide in weak American depository receipts overnight caused
by worries the US outsourcing business will be curtailed and the
direct impact will be on IT sector after Barack Obama won the US
presidential election early this week. India's third largest IT
exporter by sales Satyam Computer Services rose 3.06% to Rs 277.95,
off the day�s low of Rs 263. Its American depository receipt
(ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys rose 2.45% to
Rs 1277, off the day�s low of Rs 1205.25 even as ADR fell 10.47%.
India's fourth largest IT exporter by sales Wipro rose 4.03% to Rs
263.30 even as ADR slipped 8.56%. The stock had slipped 6.31% in
previous trading session. India's largest IT exporter by sales Tata
Consultancy Services rose 5.36% to Rs 526.50 off day�s low of Rs
485.10. The stock had slipped 1.08% in previous trading session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee weakened on Friday as expectations of
further foreign investor outflows from the stock market weighed on
sentiment. The partially convertible rupee was at 47.77/78 per
dollar, 0.1 % weaker than 47.66/69 at close on Thursday.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). Bank of Baroda,
Allahabad Bank, Central Bank of India, Oriental Bank of Commerce
and Corporation Bank rose by between 0.81% to 4.16%. All of them
reduced lending rates by 75 bps to 13.25% with effect from 10
November 2008.
India's largest commercial bank State Bank of India (SBI) rose
1.19% on a decision to cut the PLR by 75 basis points (bps) with
effect from 10 November 2008 and deposit rates by 25 to 50 bps
across all maturities effective 1 December 2008.
India's largest private sector bank by net profit ICICI Bank rose
0.17% to Rs 435 off day�s low of Rs 406.60 even as American
depository receipt (ADR) lost 2.68% overnight. ICICI Bank's chief
executive K.V. Kamath said on 3 November 2008, the bank will review
interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 2.47% to Rs 1085.20 off day�s low of Rs 1,032 even as ADR
slumped 4.81% on Thursday.
India's largest home loan lender by operating income HDFC jumped
3.39%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous week�s
10.68% rise.
India's largest commercial vehicle maker by sales Tata Motors
recovered from the day's low. The stock was now down 0.69% to Rs
158.15, off the day's low of Rs 148. Its ADR lost 3.81% overnight
after the company on 6 November 2008 had announced closing of the
commercial vehicle plant at Jamshedpur owing to a demand slump.
Shares in iron ore exporters such as Sesa Goa and NMDC rose by
between 3.12% to 3.23% after a TV channel said railway freight
rates for iron ore have been cut by 50% from 8 November 2008 to 31
December 2008.
highs in mid-afternoon trade as European markets, which opened
after the Indian market, rose in early trade. The BSE Sensex was up
232.58 points or 2.4%. Sensex breached the psychological 10,000
mark in mid-afternoon trade but was now below that level. Data
showing rise in infrastructure sector output and positive global
cues boosted the domestic bourses
Most of the IT stocks came off the day's lows as a weak rupee
offset fall in American depository receipts overnight. PSU banks
rose on cut in lending rates.
Data showing rise in infrastructure output offset concerns of
economic slowdown triggered by productions cuts announced by
commercial vehicle makers in the last two days and steel maker JSW
Steel today and reduction in gross domestic product (GDP) forecast
for 2009 by the International Monetary Fund. India's infrastructure
sector output grew 5.1% in September 2008 from a year earlier, well
above 2.3% annual growth in August 2008, government data released
earlier in the day showed.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
European shares rose in early trade on Friday, as commodities
stocks tracked stronger crude and metals prices and banking shares
gained following interest rate cuts in the previous session. Key
benchmark indices in France, Germany and UK were up by between 0.7%
to 1.81%. The Bank of England slashed interest rate by a steep 1.5%
on Thursday, 6 November 2008 and on the same day the European
Central Bank cut rate by 50 basis points
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, and rate cut in
Europe triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Singapore, Hong Kong, Taiwan, rose by
between 1.034% to 3.29%. Japan's Nikkei average was down 3.55% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 163 points
at the opening bell.
At 14:24 IST, the 30-share BSE Sensex was up 232.58 points or 2.4%
at 9,972.41. The index fell 121 points at the day's low of 9,631.59
hit in early trade. The barometer index rose 291.58 points at the
day's high of 10,025.80 in mid-afternoon trade.
The 50-unit S&P Nifty was up 78.50 points or 2.71% to 2,971.15.
The BSE Mid-cap index was up 0.58% to 3,337.73, while the BSE
Small-cap index was up 0.41% to 3,896.19. Both the indices
underperformed the sensex.
The market breadth turned positive from earlier weak breadth. On
BSE, 1080 stocks declined while 1322 gained. 86 stocks remained
unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 3.88% to Rs 1,217 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Reliance Infrastrucutre (up 7.32% to Rs 542.50), Sterlite
Industries (up 5.15% to Rs 449.90), Jaiprakash Associates (up 4.65%
to Rs 87.70) and were the major gainers from the Sensex pack.
Grasim Industries (down 0.8% to Rs 1,016) and Maruti Suzuki India
(down 0.16% to Rs 599) were the major losers from the Sensex pack.
India's largest drug maker by sales Ranbaxy Laboratories fell 0.32%
even as Daiichi Sankyo Co, Japan's No. 3 drugmaker, said on Friday
it had completed the takeover of Ranbaxy Laboratories, buying a
63.9 % stake for Rs 19980 crore ($4.20 billion). Daiichi Sankyo
reached an agreement with the generic drugmaker in June 2008 to buy
a stake of at least 50.1 % through a tender offer, the private
placement of new shares and the purchase of outstanding shares from
the founding family.
India�s largest aluminum maker by sales, Hindalco Industries
spurted 9.26% on reports the company has cleared the bridge loan
taken to acquire Canada's Novelis.
Telecom stocks rose on bargain hunting after steep losses of the
past two days caused by reports of the government planning to levy
higher spectrum fee. Bharti Airtel, Reliance Communications, Spice
Communictions and Idea Cellular rose by between 0.24% to 2.85%.
Most of the IT stocks spurted after weak start as a weak rupee
offset slide in weak American depository receipts overnight caused
by worries the US outsourcing business will be curtailed and the
direct impact will be on IT sector after Barack Obama won the US
presidential election early this week. India's third largest IT
exporter by sales Satyam Computer Services rose 3.06% to Rs 277.95,
off the day�s low of Rs 263. Its American depository receipt
(ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys rose 2.45% to
Rs 1277, off the day�s low of Rs 1205.25 even as ADR fell 10.47%.
India's fourth largest IT exporter by sales Wipro rose 4.03% to Rs
263.30 even as ADR slipped 8.56%. The stock had slipped 6.31% in
previous trading session. India's largest IT exporter by sales Tata
Consultancy Services rose 5.36% to Rs 526.50 off day�s low of Rs
485.10. The stock had slipped 1.08% in previous trading session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee weakened on Friday as expectations of
further foreign investor outflows from the stock market weighed on
sentiment. The partially convertible rupee was at 47.77/78 per
dollar, 0.1 % weaker than 47.66/69 at close on Thursday.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). Bank of Baroda,
Allahabad Bank, Central Bank of India, Oriental Bank of Commerce
and Corporation Bank rose by between 0.81% to 4.16%. All of them
reduced lending rates by 75 bps to 13.25% with effect from 10
November 2008.
India's largest commercial bank State Bank of India (SBI) rose
1.19% on a decision to cut the PLR by 75 basis points (bps) with
effect from 10 November 2008 and deposit rates by 25 to 50 bps
across all maturities effective 1 December 2008.
India's largest private sector bank by net profit ICICI Bank rose
0.17% to Rs 435 off day�s low of Rs 406.60 even as American
depository receipt (ADR) lost 2.68% overnight. ICICI Bank's chief
executive K.V. Kamath said on 3 November 2008, the bank will review
interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 2.47% to Rs 1085.20 off day�s low of Rs 1,032 even as ADR
slumped 4.81% on Thursday.
India's largest home loan lender by operating income HDFC jumped
3.39%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous week�s
10.68% rise.
India's largest commercial vehicle maker by sales Tata Motors
recovered from the day's low. The stock was now down 0.69% to Rs
158.15, off the day's low of Rs 148. Its ADR lost 3.81% overnight
after the company on 6 November 2008 had announced closing of the
commercial vehicle plant at Jamshedpur owing to a demand slump.
Shares in iron ore exporters such as Sesa Goa and NMDC rose by
between 3.12% to 3.23% after a TV channel said railway freight
rates for iron ore have been cut by 50% from 8 November 2008 to 31
December 2008.
RCom snaps two-day losses
RCom snaps two-day losses Meanwhile, the BSE Sensex was up 81.99 points, or 0.84%, to 9816.21.
On BSE, 33,872 shares were traded in the counter. The scrip had an average daily volume of 26.65 lakh shares in the past one quarter.
The stock hit a high of Rs 224.80 and a low of Rs 241.20 so far during the day. The stock had a 52-week high of Rs 844 on 10 January 2008 and a 52-week low of Rs 148.60 on 27 October 2008.
The stock had underperformed the market over the past one month till 6 November 2008, declining 27.95% as compared to the Sensex's decline of 17.52%. It had also underperformed the market in the past one quarter, falling 51.58% as compared to the Sensex's decline of 35.42%.
India's second largest listed telecom service provider by sales has an equity capital of Rs 1032.01 crore. Face value per share is Rs 5.
The current price of Rs 224.40 discounts its Q2 September 2008 annualised EPS of Rs 9.08, by a PE multiple of 24.71.
The stock shed 13.69% in the past two straight sessions to Rs 216.20 on 6 November 2008 from Rs 250.50 on 4 November 2008 after Morgan Stanley cut price estimate on the stock by 45% to Rs 280.
Reliance Communication's (RCom) net profit fell 41.5% to Rs 468.74 crore on a 6.5% rise in sales to Rs 3545.65 crore in Q2 September 2008 over Q2 September 2007.
RCom provides telecommunication services. The company provides wireless, wire line, voice, data and Internet communication services.
On BSE, 33,872 shares were traded in the counter. The scrip had an average daily volume of 26.65 lakh shares in the past one quarter.
The stock hit a high of Rs 224.80 and a low of Rs 241.20 so far during the day. The stock had a 52-week high of Rs 844 on 10 January 2008 and a 52-week low of Rs 148.60 on 27 October 2008.
The stock had underperformed the market over the past one month till 6 November 2008, declining 27.95% as compared to the Sensex's decline of 17.52%. It had also underperformed the market in the past one quarter, falling 51.58% as compared to the Sensex's decline of 35.42%.
India's second largest listed telecom service provider by sales has an equity capital of Rs 1032.01 crore. Face value per share is Rs 5.
The current price of Rs 224.40 discounts its Q2 September 2008 annualised EPS of Rs 9.08, by a PE multiple of 24.71.
The stock shed 13.69% in the past two straight sessions to Rs 216.20 on 6 November 2008 from Rs 250.50 on 4 November 2008 after Morgan Stanley cut price estimate on the stock by 45% to Rs 280.
Reliance Communication's (RCom) net profit fell 41.5% to Rs 468.74 crore on a 6.5% rise in sales to Rs 3545.65 crore in Q2 September 2008 over Q2 September 2007.
RCom provides telecommunication services. The company provides wireless, wire line, voice, data and Internet communication services.
Alembic Board to consider buy back of equity shares
Alembic Board to consider buy back of equity shares The board meeting of Alembic will be held on 14 November 2008 to consider buy back of equity shares of the company
Ranbaxy and Daiichi Sankyo successfully completes landmark deal
Ranbaxy and Daiichi Sankyo successfully completes landmark deal Ranbaxy Laboratories and Daiichi Sankyo Company has announced the successful closure of their transformational deal with the execution of the final transfer of the remaining equity shares of the Singh family, in Ranbaxy. Pursuant to this, Daiichi Sankyo has now acquired 63.92% of the equity share capital of Ranbaxy comprising 268,711,323 shares. The company made this announcement during the trading hours today, 07 November 2008
Volatility to the fore
Volatility ruled the roost on the bourses in mid-morning trade. The
BSE Sensex was down 7.75 points or 0.08%. The barometer index swung
218.80 points between the day's high and low so far. The market
sentiment was edgy after the International Monetary Fund (IMF) cut
India's growth forecast for 2,009. But higher US index futures and
recovery in Asian stocks after from intraday steep fall supported
the domestic bourses.
Most of the IT stocks were down on fall in American depository
receipts overnight. FMCG stocks were higher on defensive buying.
PSU bank stocks edged higher on cut in lending rates.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, a steep 1.5% cut in
rate by the Bank of England on Thursday, 6 November 2008 and a 50
basis points cut in rate by the European Central Bank (ECB) on that
day, triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Hong Kong,Taiwan, Singapore rose by
between 1.03% to 3.71%. Japan's Nikkei average was down 2.5% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 88 points
at the opening bell.
At 11:23 IST, the 30-share BSE Sensex was down 7.75 points or 0.08%
at 9,726.47. The index fell 121 points at the day's low of 9,631.59
hit in early trade. The barometer index rose 116.17 points at the
day's high of 9,850.39 in early trade.
The 50-unit S&P Nifty was up 16 points or 0.55% to 2908.65.
The BSE Mid-cap index was down 0.58% to 3,299.30, while the BSE
Small-cap index was down 0.35% to 3,866.75.
The market breadth was weak. On BSE, 1108 stocks declined while 875
gained. 67 stocks remained unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 0.47% to Rs 1,177.10 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Maruti Suzuki India (down 3.38% to Rs 579.70), Tata Power Company
(down 2.03% to Rs 704) and Tata Steel (down 2.15% to Rs 182.25)
were the major losers from the Sensex pack.
NTPC (up 1.87% to Rs 147), Bharti Airtel (up 1.7% to Rs 650.70) and
Hindalco Industries (up 1.06% to Rs 57.30) were the major gainers
from the Sensex pack.
FMCG stocks rose on defensive buying. Britannia Industries,
Hindustan Unilever, ITC, Marico, Tata Tea rose by between 0.53% to
2.28%.
Most of the IT stocks were down on weak American depository
receipts on worries the US outsourcing business will be curtailed
and the direct impact will be on IT sector after Barack Obama won
the US presidential election early this week. India's third largest
IT exporter by sales Satyam Computer Services fell 0.59% extending
previous trading session's loss of 3.36% as its American depository
receipt (ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys slipped 1.31%,
as ADR fell 10.47%. But India's fourth largest IT exporter by sales
Wipro rose 0.71% even as ADR slipped 8.56%. The stock had slipped
6.31% in previous trading session. India's largest IT exporter by
sales Tata Consultancy Services rose 0.16%. The stock had slipped
1.08% in previous trading session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee fell more than half a percent in
opening deals on Friday, 7 November 2008, on expectations that
losses in overseas markets would lead the stock market to drop and
spur foreigners to continue withdrawing their investments. The
partially convertible rupee was at 47.95/96 per dollar, compared to
Thursday's close of 47.66/69 per dollar. A falling rupee augurs
well for the sector as IT companies earn most of their revenues in
dollar terms.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). India's largest
commercial bank State Bank of India (SBI) rose 0.46% on a decision
to cut the PLR by 75 basis points (bps) with effect from 10
November 2008 and deposit rates by 25 to 50 bps across all
maturities effective 1 December 2008.
Bank of Baroda, Allahabad Bank, Central Bank of India, Oriental
Bank of Commerce and Corporation Bank rose by between 0.04% to
0.73%. All of them reduced lending rates by 75 bps to 13.25% with
effect from 10 November 2008.
India's largest private sector bank by net profit ICICI Bank fell
4.18% as American depository receipt (ADR) lost 11.92% overnight.
ICICI Bank's chief executive K.V. Kamath said on 3 November 2008,
the bank will review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
fell 1.26% as ADR slumped 10.78% on Thursday.
India's largest home loan lender by operating income HDFC jumped
1.25%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, Inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous weekâ€(TM)s
10.68% rise.
India's largest commercial vehicle maker by sales Tata Motors
dipped 1.92% to Rs 156.10, off the day's low of Rs 148. Its ADR
lost 8.24% overnight. . The company on 6 November 2008 had
announced closing of the commercial vehicle plant at Jamshedpur
owing to a demand slump.
India's second largest telecom services provider by sales Reliance
Communication rose 3.79% on bargain hunting after a steep slide in
the past two trading sessions.
BSE Sensex was down 7.75 points or 0.08%. The barometer index swung
218.80 points between the day's high and low so far. The market
sentiment was edgy after the International Monetary Fund (IMF) cut
India's growth forecast for 2,009. But higher US index futures and
recovery in Asian stocks after from intraday steep fall supported
the domestic bourses.
Most of the IT stocks were down on fall in American depository
receipts overnight. FMCG stocks were higher on defensive buying.
PSU bank stocks edged higher on cut in lending rates.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, a steep 1.5% cut in
rate by the Bank of England on Thursday, 6 November 2008 and a 50
basis points cut in rate by the European Central Bank (ECB) on that
day, triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Hong Kong,Taiwan, Singapore rose by
between 1.03% to 3.71%. Japan's Nikkei average was down 2.5% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 88 points
at the opening bell.
At 11:23 IST, the 30-share BSE Sensex was down 7.75 points or 0.08%
at 9,726.47. The index fell 121 points at the day's low of 9,631.59
hit in early trade. The barometer index rose 116.17 points at the
day's high of 9,850.39 in early trade.
The 50-unit S&P Nifty was up 16 points or 0.55% to 2908.65.
The BSE Mid-cap index was down 0.58% to 3,299.30, while the BSE
Small-cap index was down 0.35% to 3,866.75.
The market breadth was weak. On BSE, 1108 stocks declined while 875
gained. 67 stocks remained unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 0.47% to Rs 1,177.10 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Maruti Suzuki India (down 3.38% to Rs 579.70), Tata Power Company
(down 2.03% to Rs 704) and Tata Steel (down 2.15% to Rs 182.25)
were the major losers from the Sensex pack.
NTPC (up 1.87% to Rs 147), Bharti Airtel (up 1.7% to Rs 650.70) and
Hindalco Industries (up 1.06% to Rs 57.30) were the major gainers
from the Sensex pack.
FMCG stocks rose on defensive buying. Britannia Industries,
Hindustan Unilever, ITC, Marico, Tata Tea rose by between 0.53% to
2.28%.
Most of the IT stocks were down on weak American depository
receipts on worries the US outsourcing business will be curtailed
and the direct impact will be on IT sector after Barack Obama won
the US presidential election early this week. India's third largest
IT exporter by sales Satyam Computer Services fell 0.59% extending
previous trading session's loss of 3.36% as its American depository
receipt (ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys slipped 1.31%,
as ADR fell 10.47%. But India's fourth largest IT exporter by sales
Wipro rose 0.71% even as ADR slipped 8.56%. The stock had slipped
6.31% in previous trading session. India's largest IT exporter by
sales Tata Consultancy Services rose 0.16%. The stock had slipped
1.08% in previous trading session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee fell more than half a percent in
opening deals on Friday, 7 November 2008, on expectations that
losses in overseas markets would lead the stock market to drop and
spur foreigners to continue withdrawing their investments. The
partially convertible rupee was at 47.95/96 per dollar, compared to
Thursday's close of 47.66/69 per dollar. A falling rupee augurs
well for the sector as IT companies earn most of their revenues in
dollar terms.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). India's largest
commercial bank State Bank of India (SBI) rose 0.46% on a decision
to cut the PLR by 75 basis points (bps) with effect from 10
November 2008 and deposit rates by 25 to 50 bps across all
maturities effective 1 December 2008.
Bank of Baroda, Allahabad Bank, Central Bank of India, Oriental
Bank of Commerce and Corporation Bank rose by between 0.04% to
0.73%. All of them reduced lending rates by 75 bps to 13.25% with
effect from 10 November 2008.
India's largest private sector bank by net profit ICICI Bank fell
4.18% as American depository receipt (ADR) lost 11.92% overnight.
ICICI Bank's chief executive K.V. Kamath said on 3 November 2008,
the bank will review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
fell 1.26% as ADR slumped 10.78% on Thursday.
India's largest home loan lender by operating income HDFC jumped
1.25%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, Inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous weekâ€(TM)s
10.68% rise.
India's largest commercial vehicle maker by sales Tata Motors
dipped 1.92% to Rs 156.10, off the day's low of Rs 148. Its ADR
lost 8.24% overnight. . The company on 6 November 2008 had
announced closing of the commercial vehicle plant at Jamshedpur
owing to a demand slump.
India's second largest telecom services provider by sales Reliance
Communication rose 3.79% on bargain hunting after a steep slide in
the past two trading sessions.
Pre Market Report 07/11/2008
The market may extend last two days' fall that followed an earlier strong rebound tracking weak Asian stocks. Asian stocks fell sharply for a third day as layoffs and corporate profit warnings piled up in the face of a rapidly slowing global economy. Back home, an unexpected rise in inflation pulled the Sensex down nearly 4% on Thursday, 6 November 2008, in a highly choppy trade.
The rise in inflation shattered hopes of further interest rate cuts by the Reserve Bank of India. Inflation based on the wholesale price index rose 10.72% in the year through 25 October 2008, higher than previous week's 10.68% rise.
The Indian rupee fell more than half a percent in opening deals on Friday, 7 November 2008, on expectations that losses in overseas markets would lead the stock market to drop and spur foreigners to continue withdrawing their investments. At 9:02 IST, the partially convertible rupee was at 47.95/96 per dollar, compared to Thursday's close of 47.66/69 per dollar.
South Korea's central bank cut interest rates on Friday for the third time in a month, joining a global wave of monetary easing aimed at shoring up the world economy and calming panicked financial markets. The Bank of England spooked investors on Thursday, 6 November 2008, by slashing its key rate by 1.5%, bringing borrowing costs down to the lowest since the 1950s.
US stocks overnight posted their worst two-day slide since October 1987, though S&P 500 futures were mostly unchanged as investors awaited the latest US payroll report due on Friday
US crude oil futures fell to a 1-1/2-year low below $60 a barrel on expectations for a drastic pullback in energy demand
The BSE Sensex lost 8.4% in two trading sessions to 9,734.22 on Thursday, 6 November 2008, from 10,631.12 on 4 November 2008. The slide followed a 24.93% jump in the preceding five trading sessions.
The rise in inflation shattered hopes of further interest rate cuts by the Reserve Bank of India. Inflation based on the wholesale price index rose 10.72% in the year through 25 October 2008, higher than previous week's 10.68% rise.
The Indian rupee fell more than half a percent in opening deals on Friday, 7 November 2008, on expectations that losses in overseas markets would lead the stock market to drop and spur foreigners to continue withdrawing their investments. At 9:02 IST, the partially convertible rupee was at 47.95/96 per dollar, compared to Thursday's close of 47.66/69 per dollar.
South Korea's central bank cut interest rates on Friday for the third time in a month, joining a global wave of monetary easing aimed at shoring up the world economy and calming panicked financial markets. The Bank of England spooked investors on Thursday, 6 November 2008, by slashing its key rate by 1.5%, bringing borrowing costs down to the lowest since the 1950s.
US stocks overnight posted their worst two-day slide since October 1987, though S&P 500 futures were mostly unchanged as investors awaited the latest US payroll report due on Friday
US crude oil futures fell to a 1-1/2-year low below $60 a barrel on expectations for a drastic pullback in energy demand
The BSE Sensex lost 8.4% in two trading sessions to 9,734.22 on Thursday, 6 November 2008, from 10,631.12 on 4 November 2008. The slide followed a 24.93% jump in the preceding five trading sessions.
Post Market Report:06/11/2008
The market tumbled in a highly volatile trading session as an
unexpected increase in inflation shattered hopes of further
interest rate cuts by the Reserve Bank of India. Volatility in
index heavyweight Reliance Industries (RIL) caused volatility in
the key benchmark indices. Weak global markets also weighed on the
domestic bourses, as the BSE Sensex plunged 385.79 points or 3.81%
to 9,734.22. Most of the sectoral indices on BSE declined
Asian markets, which opened before Indian market, mirrored
overnight losses in the US as a fresh batch of dismal economic data
underscored the upbeat market mood from Democrat Barack Obama's
victory in the US presidential election. Hong Kong's Hang Seng was
down 7.7% and Japan's Nikkei plunged 6.5%. Key benchmark indices in
China, Singapore, South Korea and Taiwan ended down by 2.44% to
7.56%.
US stocks slumped on Wednesday, 5 November 2008. The Dow Jones
industrial average slid 486.01 points, or 5.05%, to 9,139.27. The
Standard & Poor's 500 Index plunged 52.98 points, or 5.27%, to
close at 952.77. The Nasdaq Composite Index lost 98.48 points, or
5.53% to 1,681.64.
Companies in the US cut an estimated 1,57,000 jobs in October 2008,
the most in almost six years, a private report based on payroll
data showed on Wednesday, 5 November 2008. Meanwhile, the Institute
for Supply Management said the US service sector contracted sharply
in October 2008.
The 30-share BSE Sensex fell 385.79 points or 3.81% to 9,734.22.
The index fell 484.79 points to 9,635.22 in afternoon trade. It
fell 10.56 points at day's high of 10,109.45 in mid-afternoon
trade.
The 50-unit S&P Nifty was down 102.30 points or 3.42% to 2892.65.
The BSE Mid-cap index was down 2.24% to 3,318.41, while the BSE
Small-cap index was down 2.13% to 3,880.27.
The market breadth was weak with 1633 shares losing and 869 stocks
gaining on BSE. A total of 83 stocks were unchanged.
BSE clocked a turnover of Rs 3841 crore as against Rs 4,983.72
crore on 5 November 2008.
Nifty November 2008 futures were at 2883.30, at a discount of 9.35
points as compared to spot closing of 2892.65. NSE's futures &
options (F&O) segment turnover was Rs 43836.07 crore, which was
higher than Rs 38550.94 crore on Wednesday, 5 November 2008.
The BSE Oil & Gas index underperformed the Sensex, falling 4.83%.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by 0.91% to 2.03%
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries extended losses for the second
session. The stock fell 7.71% even as the firm denied a newspaper
report that it had shut five polyester and petrochemical plants
near Mumbai amid falling demand. The stock had tumbled 12.76% in
the previous trading session hit by the media report.
Volatility in the stock was immense. The scrip declined 8.7% at the
day's low of Rs 1159 in late trade. The stock declined 2.3% at the
day's high of Rs 1240 in early trade. The stock had tumbled 12.76%
in the previous trading session hit by the media report about the
plant closure.
Oil exploration and offshore oil services firms fell on fall in
global crude oil prices. Cairn India, Aban Offshore, and Shiv Vani
Oil fell by 3.85% to 8.19%
India's largest state-run oil explorer by market capitalisation
ONGC fell 1.43% despite reports the French oil major Total is
picking up stakes in ONGC Mittal's Nigerian oil blocks.
Oil fell towards $65 a barrel on Thursday, 6 November 2008,
extending its 7% overnight drop caused by weak US economic data and
growing US fuel stockpiles.
State-run GAIL India rose 1.15% on reports it may be nominated as
the sole agency to sell natural gas from Reliance Industries'
eastern offshore KG-D6 block to fuel-starved fertilizer units.
Gains in sector bellwether DLF helped the BSE Realty index
outperformed the Sensex. The index rose 0.60%. DLF, India's biggest
realty developer by market capitalisation, rose 2.46% even as
Morgan Stanley cut price estimate on the stock by 82% to Rs 256.
Indiabulls Real Estate (up 3.13%) and Puravankara Projects (up
1.77%), were other gainers from the realty pack.
Stocks from the broader healthcare sector gained on defensive
buying. The BSE Healthcare index outperformed the Sensex, rising
0.28%. Ranbaxy Laboratories, Glenmark Pharmaceuticals, Dr Reddy's
Laboratories, Lupin, Apollo Hospitals, Glaxosmit Pharmaceuticals,
and Biocon rose between 0.04% to 3.72%.
Drug maker Sun Pharmaceuticals Industries rose 1.67% after the
company received US Food & Drug Administration approval to market
generic version of Sinemet in tablet form in multiple strengths.
Gains in index heavyweight Hindustan Unilever supported the BSE
FMCG index. The index outperformed the Sensex, falling merely
0.08%. Hindustan Unilever, which makes daily use products like
soaps and detergents, rose 3.05%. It has 29.06% weightage on the
BSE FMCG index.
Other FMCG stocks like ITC, United Spirits, Tata Tea, Nestle India,
Dabur India, GlaxoSmithkline Consumer Healthcare, United Breweries,
and Marico declined by 0.32% to 8.33%.
Heavy electrical equipments maker Bharat Heavy Electricals (Bhel)
helped the BSE Capital Goods index outpeforme the Sensex. The index
fell 1.02%. Bhel rose 0.52%. The stock has 23.49% weightage on the
BSE Capital Goods index. Suzlon Energy (up 2.74%), and Punj Lloyd
(up 2.34%), were the other gainers in the pack.
However, stocks like Larsen & Toubro, Crompton Greaves, Siemens,
ABB, Areva T&D and Thermax fell by 0.71% to 5.28%
The BSE Consumer Durables outperformed the Sensex, falling 1.90%.
This was on the back of strong gains in Gitanjali Gems and Rajesh
Exports, which rose 10.21% and 3.36% respectively. Meanwhile,
Videocon Industries, Titan Industries, Lloyd Electric and Blue Star
fell by 1.16% to 4.92%.
The BSE Power index outperformed the Sensex, falling 2%. GVK Power
& Infrastructure rose 9%. Power and allied projects developer GMR
Infrastructure rose 3.83% after the company said the group is
pursing possibility of acquiring a coal mine in Indonesia.
Meanwhile, Neyveli Lignite, Tata Power and Reliance Infrastructure
fell by 2.76% to 5.12%.
The BSE Auto index outperformed the Sensex, falling 2.92%. This was
despite the massive fall witnessed by Tata Motors.
Tata Motors, India's largest commercial vehicle maker by sales,
tumbled 12.17%, extending losses for the second session, as the
firm closed its commercial vehicle plant in Jamshedpur for three
days starting today to avoid a build-up of inventory. The stock
moved in the range of Rs 154.55 and Rs 175. The stock had declined
6.53% in the previous session, ahead of the announcement.
Commercial vehicles maker Ashok Leyland plunged 9.33% after the
company posted 50.2% fall in sales to 3397 units in October 2008
over October 2007.
Banking shares fell in volatile trade on higher inflation and on
comments by State Bank of India chief O.P. Bhatt that there is not
enough liquidity in the banking system. India's largest commercial
bank State Bank of India fell 4.58% after Bhatt said the bank will
announce a 75 basis point cut in its prime lending rate later
today.
India's largest private sector bank by market capitalisation ICICI
Bank fell 3.87%. HDFC Bank and Axis Bank fell 3.10% and 3.51%
respectively. The BSE Bankex outperformed the Sensex, falling
3.41%.
Shares of the software exporters fell as American depository
receipt (ADR) of Infosys Technologies, Wipro, and Satyam Computer
fell between 4.28% to 7.72% overnight. TCS, Infosys Technologies,
Wipro and Satyam Computer were down by 1.08% to 6.31%. The BSE IT
index underperformed the Sensex, falling 4.26%
World's largest steel maker, ArcelorMittal's poor earnings outlook
for the fourth quarter hit metal shares. World's sixth largest
steel maker Tata Steel fell 13.67%. JSW Steel, Steel Authority of
India, and Jindal Steel & Power, were down 6.02% to 10.80%.
ArcelorMittal, on Wednesday, 5 November 2008, reported
third-quarter net profit below expectations and forecast
significantly lower earnings in the fourth quarter. The company
also announced a series of measures, including more temporary
production cuts and a pause in its growth strategy, in response to
the economic slowdown.
India's largest aluminium maker by sales Hindalco Industries
slipped 7.50% on reports the company bought $2 billion from the
foreign exchange market to part-repay a $3.03 billion bridge loan
it took to buy Canadian aluminium can manufacturer, Novelis.
Sterlite Industries India, a leading producer of copper, tumbled
11.33% after parent Vedanta Resources reported 24.73% fall in net
profit to $350 million in the half year ended 2008 over the half
year ended 2007. The BSE Metal index underperformed the Sensex,
falling 8.41%
Reliance Industries clocked the highest turnover of Rs 391.47 crore
on BSE. Reliance Capital (Rs 202.90 crore), State Bank of India (Rs
173.15 crore), ICICI Bank (Rs 165.32 crore), and Alkali Metals (Rs
161.38 crore), were the other turnover toppers on BSE in that
order.
GVK Power & Infrastructure reported the highest volume of 3.30
crore shaes on BSE. Suzlon Energy (2.27 crore shares), Reliance
Natural Resources (1.39 crore shares), Unitech (1.21 crore shares),
and IFCI (1.16 crore shares), were the other volume toppers on BSE
in that order.
There has been a massive erosion in investors' wealth this year.
The barometer index BSE Sensex is down 10551.78 points or 52.01% in
the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11471.78 points or 54% below its all-time high
of 21,206.77 struck on 10 January 2008.
unexpected increase in inflation shattered hopes of further
interest rate cuts by the Reserve Bank of India. Volatility in
index heavyweight Reliance Industries (RIL) caused volatility in
the key benchmark indices. Weak global markets also weighed on the
domestic bourses, as the BSE Sensex plunged 385.79 points or 3.81%
to 9,734.22. Most of the sectoral indices on BSE declined
Asian markets, which opened before Indian market, mirrored
overnight losses in the US as a fresh batch of dismal economic data
underscored the upbeat market mood from Democrat Barack Obama's
victory in the US presidential election. Hong Kong's Hang Seng was
down 7.7% and Japan's Nikkei plunged 6.5%. Key benchmark indices in
China, Singapore, South Korea and Taiwan ended down by 2.44% to
7.56%.
US stocks slumped on Wednesday, 5 November 2008. The Dow Jones
industrial average slid 486.01 points, or 5.05%, to 9,139.27. The
Standard & Poor's 500 Index plunged 52.98 points, or 5.27%, to
close at 952.77. The Nasdaq Composite Index lost 98.48 points, or
5.53% to 1,681.64.
Companies in the US cut an estimated 1,57,000 jobs in October 2008,
the most in almost six years, a private report based on payroll
data showed on Wednesday, 5 November 2008. Meanwhile, the Institute
for Supply Management said the US service sector contracted sharply
in October 2008.
The 30-share BSE Sensex fell 385.79 points or 3.81% to 9,734.22.
The index fell 484.79 points to 9,635.22 in afternoon trade. It
fell 10.56 points at day's high of 10,109.45 in mid-afternoon
trade.
The 50-unit S&P Nifty was down 102.30 points or 3.42% to 2892.65.
The BSE Mid-cap index was down 2.24% to 3,318.41, while the BSE
Small-cap index was down 2.13% to 3,880.27.
The market breadth was weak with 1633 shares losing and 869 stocks
gaining on BSE. A total of 83 stocks were unchanged.
BSE clocked a turnover of Rs 3841 crore as against Rs 4,983.72
crore on 5 November 2008.
Nifty November 2008 futures were at 2883.30, at a discount of 9.35
points as compared to spot closing of 2892.65. NSE's futures &
options (F&O) segment turnover was Rs 43836.07 crore, which was
higher than Rs 38550.94 crore on Wednesday, 5 November 2008.
The BSE Oil & Gas index underperformed the Sensex, falling 4.83%.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by 0.91% to 2.03%
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries extended losses for the second
session. The stock fell 7.71% even as the firm denied a newspaper
report that it had shut five polyester and petrochemical plants
near Mumbai amid falling demand. The stock had tumbled 12.76% in
the previous trading session hit by the media report.
Volatility in the stock was immense. The scrip declined 8.7% at the
day's low of Rs 1159 in late trade. The stock declined 2.3% at the
day's high of Rs 1240 in early trade. The stock had tumbled 12.76%
in the previous trading session hit by the media report about the
plant closure.
Oil exploration and offshore oil services firms fell on fall in
global crude oil prices. Cairn India, Aban Offshore, and Shiv Vani
Oil fell by 3.85% to 8.19%
India's largest state-run oil explorer by market capitalisation
ONGC fell 1.43% despite reports the French oil major Total is
picking up stakes in ONGC Mittal's Nigerian oil blocks.
Oil fell towards $65 a barrel on Thursday, 6 November 2008,
extending its 7% overnight drop caused by weak US economic data and
growing US fuel stockpiles.
State-run GAIL India rose 1.15% on reports it may be nominated as
the sole agency to sell natural gas from Reliance Industries'
eastern offshore KG-D6 block to fuel-starved fertilizer units.
Gains in sector bellwether DLF helped the BSE Realty index
outperformed the Sensex. The index rose 0.60%. DLF, India's biggest
realty developer by market capitalisation, rose 2.46% even as
Morgan Stanley cut price estimate on the stock by 82% to Rs 256.
Indiabulls Real Estate (up 3.13%) and Puravankara Projects (up
1.77%), were other gainers from the realty pack.
Stocks from the broader healthcare sector gained on defensive
buying. The BSE Healthcare index outperformed the Sensex, rising
0.28%. Ranbaxy Laboratories, Glenmark Pharmaceuticals, Dr Reddy's
Laboratories, Lupin, Apollo Hospitals, Glaxosmit Pharmaceuticals,
and Biocon rose between 0.04% to 3.72%.
Drug maker Sun Pharmaceuticals Industries rose 1.67% after the
company received US Food & Drug Administration approval to market
generic version of Sinemet in tablet form in multiple strengths.
Gains in index heavyweight Hindustan Unilever supported the BSE
FMCG index. The index outperformed the Sensex, falling merely
0.08%. Hindustan Unilever, which makes daily use products like
soaps and detergents, rose 3.05%. It has 29.06% weightage on the
BSE FMCG index.
Other FMCG stocks like ITC, United Spirits, Tata Tea, Nestle India,
Dabur India, GlaxoSmithkline Consumer Healthcare, United Breweries,
and Marico declined by 0.32% to 8.33%.
Heavy electrical equipments maker Bharat Heavy Electricals (Bhel)
helped the BSE Capital Goods index outpeforme the Sensex. The index
fell 1.02%. Bhel rose 0.52%. The stock has 23.49% weightage on the
BSE Capital Goods index. Suzlon Energy (up 2.74%), and Punj Lloyd
(up 2.34%), were the other gainers in the pack.
However, stocks like Larsen & Toubro, Crompton Greaves, Siemens,
ABB, Areva T&D and Thermax fell by 0.71% to 5.28%
The BSE Consumer Durables outperformed the Sensex, falling 1.90%.
This was on the back of strong gains in Gitanjali Gems and Rajesh
Exports, which rose 10.21% and 3.36% respectively. Meanwhile,
Videocon Industries, Titan Industries, Lloyd Electric and Blue Star
fell by 1.16% to 4.92%.
The BSE Power index outperformed the Sensex, falling 2%. GVK Power
& Infrastructure rose 9%. Power and allied projects developer GMR
Infrastructure rose 3.83% after the company said the group is
pursing possibility of acquiring a coal mine in Indonesia.
Meanwhile, Neyveli Lignite, Tata Power and Reliance Infrastructure
fell by 2.76% to 5.12%.
The BSE Auto index outperformed the Sensex, falling 2.92%. This was
despite the massive fall witnessed by Tata Motors.
Tata Motors, India's largest commercial vehicle maker by sales,
tumbled 12.17%, extending losses for the second session, as the
firm closed its commercial vehicle plant in Jamshedpur for three
days starting today to avoid a build-up of inventory. The stock
moved in the range of Rs 154.55 and Rs 175. The stock had declined
6.53% in the previous session, ahead of the announcement.
Commercial vehicles maker Ashok Leyland plunged 9.33% after the
company posted 50.2% fall in sales to 3397 units in October 2008
over October 2007.
Banking shares fell in volatile trade on higher inflation and on
comments by State Bank of India chief O.P. Bhatt that there is not
enough liquidity in the banking system. India's largest commercial
bank State Bank of India fell 4.58% after Bhatt said the bank will
announce a 75 basis point cut in its prime lending rate later
today.
India's largest private sector bank by market capitalisation ICICI
Bank fell 3.87%. HDFC Bank and Axis Bank fell 3.10% and 3.51%
respectively. The BSE Bankex outperformed the Sensex, falling
3.41%.
Shares of the software exporters fell as American depository
receipt (ADR) of Infosys Technologies, Wipro, and Satyam Computer
fell between 4.28% to 7.72% overnight. TCS, Infosys Technologies,
Wipro and Satyam Computer were down by 1.08% to 6.31%. The BSE IT
index underperformed the Sensex, falling 4.26%
World's largest steel maker, ArcelorMittal's poor earnings outlook
for the fourth quarter hit metal shares. World's sixth largest
steel maker Tata Steel fell 13.67%. JSW Steel, Steel Authority of
India, and Jindal Steel & Power, were down 6.02% to 10.80%.
ArcelorMittal, on Wednesday, 5 November 2008, reported
third-quarter net profit below expectations and forecast
significantly lower earnings in the fourth quarter. The company
also announced a series of measures, including more temporary
production cuts and a pause in its growth strategy, in response to
the economic slowdown.
India's largest aluminium maker by sales Hindalco Industries
slipped 7.50% on reports the company bought $2 billion from the
foreign exchange market to part-repay a $3.03 billion bridge loan
it took to buy Canadian aluminium can manufacturer, Novelis.
Sterlite Industries India, a leading producer of copper, tumbled
11.33% after parent Vedanta Resources reported 24.73% fall in net
profit to $350 million in the half year ended 2008 over the half
year ended 2007. The BSE Metal index underperformed the Sensex,
falling 8.41%
Reliance Industries clocked the highest turnover of Rs 391.47 crore
on BSE. Reliance Capital (Rs 202.90 crore), State Bank of India (Rs
173.15 crore), ICICI Bank (Rs 165.32 crore), and Alkali Metals (Rs
161.38 crore), were the other turnover toppers on BSE in that
order.
GVK Power & Infrastructure reported the highest volume of 3.30
crore shaes on BSE. Suzlon Energy (2.27 crore shares), Reliance
Natural Resources (1.39 crore shares), Unitech (1.21 crore shares),
and IFCI (1.16 crore shares), were the other volume toppers on BSE
in that order.
There has been a massive erosion in investors' wealth this year.
The barometer index BSE Sensex is down 10551.78 points or 52.01% in
the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11471.78 points or 54% below its all-time high
of 21,206.77 struck on 10 January 2008.
Thursday, November 6, 2008
Mkts see mild recovery; Nifty pulls back above 2900
The markets are still trading sharply lower, despite showing some recovery from the day's lows. Weak global cues and a 400 points dip in the Dow on poor economic numbers is cited as reason for the gap down. Asian markets are also trading in the red. The Nifty has clawed back above the 2,900 mark. Selling is seen in metal, power, auto, capital goods, banking, and select oil stocks. Midcap and smallcap stocks are also under pressure.
The Sensex lost 234 points to 9885 and the Nifty plunged 61 points to 2,933, at 10:42 am. BSE Midcap and Small Cap indices fell over 2% each.
Market breadth is negative; about 962 shares have advanced while 1990 shares have declined. Nearly 239 shares are unchanged.
Tata Steel, Tata Motors, Tata Power and Sterlite Industries are top losers.
The Sensex lost 234 points to 9885 and the Nifty plunged 61 points to 2,933, at 10:42 am. BSE Midcap and Small Cap indices fell over 2% each.
Market breadth is negative; about 962 shares have advanced while 1990 shares have declined. Nearly 239 shares are unchanged.
Tata Steel, Tata Motors, Tata Power and Sterlite Industries are top losers.
ICICI Bank plunges 4.7%
ICICI Bank had touched an intraday high of Rs 433.80 and an intraday low of Rs 420.55. At 09:58 am, the share was quoting at Rs 429.40, down Rs 21.45, or 4.76% on the NSE.
It was trading with volumes of 457,024 shares. Yesterday the share closed down 1.52% or Rs 6.95 at Rs 450.85.
It was trading with volumes of 457,024 shares. Yesterday the share closed down 1.52% or Rs 6.95 at Rs 450.85.
Tata Motors continues to slip
Tata Motors had touched an intraday high of Rs 177 and an intraday low of Rs 166.05. At 09:58 am, the share was quoting at Rs 167.90, down Rs 14.3, or 7.85% on the NSE.
It was trading with volumes of 59,827 shares. Yesterday the share closed down 6.06% or Rs 11.75 at Rs 182.20.
It was trading with volumes of 59,827 shares. Yesterday the share closed down 6.06% or Rs 11.75 at Rs 182.20.
Tata Steel melts down 6%
Tata Steel has touched an intraday high of Rs 210 and an intraday low of Rs 200.20. At 09:58 am, the share was quoting at Rs 202.85, down Rs 12.9, or 5.98%.
It was trading with volumes of 90,899 shares. Yesterday the share closed down 10.05% or Rs 24.10 at Rs 215.75.
It was trading with volumes of 90,899 shares. Yesterday the share closed down 10.05% or Rs 24.10 at Rs 215.75.
Sell RIL, RPL on rallies
Subramanian told CNBC-TV18, "We are coming after few years of significant upturn on the refining side and now margins are slowing down and even for complex refineries like Reliance petroleum and Reliance the mix of the margin between transportation fuel and other side has turned against them. So when any of these big trends turns down the market always tries to see where it’s going to bottom out and not anticipate a bottom based on what has happened in the last one-two years, so to that extent till the refining margins stabilise and say, we can now say this is the base minimum that you can work with. The earnings estimates are going to be all over the place. So I think that’s not the space where you are going to get any joy in the near-term. I would still be cautious on stocks like Reliance and Reliance Petroleum and would sell them on rallies than look to buy them."
Asian markets tumble; Hang Seng slips 6%
Asian markets were trading lower. China's Shanghai Composite fell 2.73% or 48.07 points at 1,712.54.
Hong Kong's Hang Seng slipped 5.95% or 882.48 points at 13,957.68.
Japan's Nikkei plunged 5.68% or 541.06 points at 8,980.18.
Singapore's Straits Times tumbled 4.69% or 87.65 points at 1,781.17.
South Korea's Seoul Composite lost 6.66% or 78.70 points at 1,102.80.
Taiwan's Taiwan Weighted declined 4.85% or 241.47 points at 4,736.7
Hong Kong's Hang Seng slipped 5.95% or 882.48 points at 13,957.68.
Japan's Nikkei plunged 5.68% or 541.06 points at 8,980.18.
Singapore's Straits Times tumbled 4.69% or 87.65 points at 1,781.17.
South Korea's Seoul Composite lost 6.66% or 78.70 points at 1,102.80.
Taiwan's Taiwan Weighted declined 4.85% or 241.47 points at 4,736.7
Sensex drops nearly 5%
Weakness in European stocks and lower US index futures pulled the
market sharply lower in what was a volatile trading session. The
BSE Sensex declined 511.11 points or 4.81% %, with index
heavyweight Reliance Industries (RIL) plunging close to 13% on
brokerage downgrade. The S&P CNX Nifty fell below the psychological
3,000 mark. Realty, banking and metal stocks dropped on profit
taking after recent strong gains.
Firm Asian stocks had triggered an intra-day recovery on the
domestic market in afternoon trade after it had slipped into the
red in mid-morning trade after a strong start. The market had
surged earlier in the day boosted by rally in Asian stocks,
Democrat Barack Obama's election as the next US president and
expectations that a cut in interest rates by state-run banks would
result in lower borrowing costs for the corporates.
The early rally was also triggered by a sentiment by the Commerce
and Industry Minister Kamal Nath after trading hours on Tuesday, 3
November 2008, that the government will further ease foreign
investment rules, including those relating to defence production.
Trading in US futures suggested the Dow would fall 82 points at the
opening bell, as the focus shifted to the weak economy after
Obama's decisive win in the US presidential election. European
markets which opened after the Indian market, fell as the spotlight
moved back to the troubled economy after the US presidential
election. Key benchmark indices in France, Europe and UK were down
by between 1.44% to 1.88%.
Asian markets, which opened before the Indian market, surged
boosted end of the uncertainty about who will lead the US economy
in the midst of great financial peril. Key benchmark indices in
China, Japan, Singapore, Hong Kong, and South Korea were up by
between 1.76% to 4.46%. But the Taiwan Weighted fell 0.29%.
Obama captured the White House today, defeating Republican John
McCain to make history as the first black to be elected as the US
president.
The BSE 30-share Sensex plunged 511.11 points or 4.81% to
10,120.01. The Sensex surged 314.29 points at day's high of
10,945.41 in early trade. The index slumped 579.60 points at the
day's low of 10,051.52 in late trade.
The S&P CNX Nifty was down 147.15 points or 4.68% to 2,994.95.
The market snapped gains of the last five trading sessions. From a
low of 8,509.56 on 27 October 2008, the BSE Sensex had risen
2,121.56 points or 24.93% to 10,631.12 on 4 November 2008. But
there has been a massive erosion in investors' wealth this year.
The barometer index BSE Sensex is down 10,166.98 points or 50.15%
in the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11,086.76 points or 52.27% below its all-time
high of 21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 4,973 crore today as compared to a
turnover of Rs 4,431.22 on 4 November 2008.
Nifty November 2008 futures were at 2973.50, at a discount of 21.45
points as compared to spot closing of 2994.95. NSE's futures &
options (F&O) segment turnover was Rs 38,550.94 crore, which was
higher than Rs 33,758.52 crore on Tuesday, 4 November 2008.
The BSE Mid-Cap index was down 1.5% at 3,394.61 and the BSE
Small-Cap index was down 1.74% at 3,964.78. Both the indices
outperformed the Sensex.
The BSE Oil & Gas index (down 9.44% to 6,112.11), the BSE Metal
index (down 6.88% to 5,451.74), the BSE Realty index (down 5.64% to
2,267) underperformed the Sensex.
The BSE Capital Goods index (down 4.42% to 7,591.64), the BSE PSU
index (down 2.82% to 4,935.52), the BSE Teck index (down 2.64% to
2,142.67), the BSE Power index (down 2.5% to 1,736.92), the BSE
Auto index (down 2.28% to 2,727,82), the BSE Bankex (down 1.87% to
5,633.94), BSE FMCG index (down 1.72% to 1,927.53), the BSE
Consumer Durables index (down 0.82% to 2,108.29), the BSE IT index
(down 0.57% to 2,734.35), the BSE HealthCare index (up 1.18% to
2,913.22), outperformed the Sensex.
The market breadth turned weak in late trade in contrast to a
strong breadth earlier in the day. On BSE, 1,000 shares advanced as
compared to 1,565 that declined. 73 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) slumped 12.76% to Rs 1,269.45
after ABN Amro recommended a 'sell' on the stock and cut its target
price by whopping 38% to Rs 1,150 from Rs 1,850 earlier. The scrip
was the biggest loser from the Sensex pack.
Jaiprakash Associates (down 10.01% to Rs 80.50), Grasim Industries
(down 7.28% to Rs 1,049.45), Tata Motors (down 6.53% to Rs 181.20),
and ACC (down 7% to Rs 470.95) were the other major losers from
Sensex pack.
Telecom stocks fell on concerns that a government move to charge
more for radio spectrum may impact their earnings. India's largest
telecom services provider by sales Bharti Airtel fell 4.54%.
India's second largest telecom services provider by sales, Reliance
Communication slipped 9.5% after Morgan Stanley cut price estimate
on the stock by 45% to Rs 280.
As per reports, the government plans to increase fees telecom firms
pay for using additional spectrum by up to 2% of the firms'
revenue, and would also levy a one-time charge for granting
additional spectrum.
Metal stocks declined after recent sharp fall in metal prices on
global recession worries. Hindalco Industries, Hiindustan Zinc,
Sterlite Industries, Steel Authority of India fell by between 2.75%
to 12.76%. Tata Steel, the world's sixth largest steel maker, was
down 10.05% after ArcelorMittal on reported quarterly operating
profit and sales below expectations.
IT stocks were mixed amid strong rupee and on worries the US
outsourcing business will be curtailed after Obama won the US
presidential election. India's third largest IT exporter by sales
Satyam Computer Services rose 0.27% even as American depository
receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 2.72% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
fell 0.91%, even as ADR rose 4.84%. India's largest IT exporter by
sales Tata Consultancy Services slipped 0.5% off day's high of Rs
548.90.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
The rupee strengthened 0.5% to 47.46/50 per dollar. A strong rupee
affects the IT companies as they earn most of their revenues in
dollar terms.
Bank stocks fell following reports private sector banks are
expected to cut their lending and deposit rates in the next 15 days
and will support credit lines to finance companies and mutual
funds. India's largest commercial bank State Bank of India was down
3.59% after its chairman O P Bhatt said on 4 November 2008 the bank
was likely to cut interest rates by up to 50 basis points.
Bank of India gained 0.04% on reports it has cut its prime lending
rate by 75 basis points to 13.25% with effect from Thursday, 6
November 2008. But Indian Bank fell 3,12% after early gains after
the bank said yesterday it will consider cutting its lending and
deposit rates by 50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
State Bank of Travancore rose 5% after bank fixed 20 December 2008
as the record date for 10 for 1 stock split.
India's largest private sector bank by net profit ICICI Bank fell
1.62% even as the American depository receipt (ADR) spurted 7.28%
overnight. ICICI Bank's chief executive K.V. Kamath said on 3
November 2008, the bank will review interest rates in the next few
days.
India's second largest private sector bank by net profit HDFC Bank
slipped 1.46%, even as ADR jumped 7.63% on Tuesday.
India's largest home loan lender by operating income HDFC fell
8.63%.
As per recent reports, public sector banks are likely to cut
deposit and lending rates by 50 to 75 basis points within one week.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Most realty stocks plunged in late trade from their gains earlier
in the day despite hopes lower interest rates will spur demand for
residential properties. Realty majors, Unitech, Anant Raj
Industries, Parsvnath Developers, DLF slipped by between 2.6% to
11.59%. Indiabulls Real Estate rose 5.15%.
IVRCL Infrastructures & Projects rose 0.33%, extending gains for
the fourth session in a row, on strong Q2 results and healthy order
book.
GMR Infrastructure spurted 4.26% on reports the company is set to
buy a coal mine in Indonesia
Gammon India surged 6.76% extending gains for the fourth day in a
row, on bargain hunting after a recent sharp fall caused by poor
quarterly performance.
Healthcare stocks were mixed following reports the drug regulator
National Pharmaceutical Pricing Authority has issued notices to
Cipla, Ranbaxy Laboratories and Piramal Healthcare among others for
overcharging. Cipla, Glenmark Pharmaceuticals, and Ranbaxy
Laboratories fell between 0.38% to 2.06%. Dr. Redddy's
Laboratories, Piramal Healthcare rose between 0.04% to 1.18%. The
drug regulator has asked these firms to deposit Rs 1630 crore with
the government exchequer besides explaining the hike.
Auto stocks were mixed on reports the government may cut petrol and
diesel prices to drum up support with voters ahead of key state
elections later this month. Maruti Suzuki India and Hero Honda
Motors rose by between 0.08% to 1.41%. Mahindra & Mahindra and Tata
Motors fell by between 6.07% to 6.53%.
Ashok Leyland was fell 8.96% on reports of plans to reduce monthly
production target for November 2008 to 1,500 units from the average
6,800 units it clocked each month in the first six months of this
fiscal.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 2.21% to 3.02%.
Meanwhile, Crude oil fell in New York as investors judged
yesterday's 10 percent gain excessive, and on forecasts that a
government report will show U.S. crude inventories swelling as
demand ebbs. Crude oil for December delivery declined as much as
$3.47, or 4.9 %, to $67.06 a barrel on the New York Mercantile
Exchange.
GAIL India slumped 15.34% even on signing a cooperation agreement
with the Himachal Pradesh state government for extension of the
proposed Dadri-Bawana-Nangal natural gas pipeline to the state.
Airlines stocks declined on reports of Kingfisher Airlines
defaulting on payment of lease rentals on aircrafts. Kingfisher
Airlines tumbled 16.57%. SpiceJet and Jet Airways fell by between
4.49% to 6.39%. The government had recently scrapped customs duty
on jet fuel.
Shri Dinesh Mills was locked 10% upper limit at Rs 795.95 at 11:36
IST on BSE, on setting record date for 10-for-1 stock split.
Shree Cement rose 2.56% after cement shipments rose 12.81% to 6.25
lakh tonnes in October 2008 over October 2007.
Compact Disc India galloped 5.52% after the company said it would
issue convertible warrants at a sharp premium to the prevailing
stock price.
GVK Power & Infrastructure clocked the highest volume of 3.69 crore
shares on BSE. Suzlon Energy (3.46 crore shares), Reliance Natural
resources (1.76 crore shares), IFCI (1.29 crore shares) and
Reliance Petroleum (1.19 crore shares) were the other volume
toppers in that order.
market sharply lower in what was a volatile trading session. The
BSE Sensex declined 511.11 points or 4.81% %, with index
heavyweight Reliance Industries (RIL) plunging close to 13% on
brokerage downgrade. The S&P CNX Nifty fell below the psychological
3,000 mark. Realty, banking and metal stocks dropped on profit
taking after recent strong gains.
Firm Asian stocks had triggered an intra-day recovery on the
domestic market in afternoon trade after it had slipped into the
red in mid-morning trade after a strong start. The market had
surged earlier in the day boosted by rally in Asian stocks,
Democrat Barack Obama's election as the next US president and
expectations that a cut in interest rates by state-run banks would
result in lower borrowing costs for the corporates.
The early rally was also triggered by a sentiment by the Commerce
and Industry Minister Kamal Nath after trading hours on Tuesday, 3
November 2008, that the government will further ease foreign
investment rules, including those relating to defence production.
Trading in US futures suggested the Dow would fall 82 points at the
opening bell, as the focus shifted to the weak economy after
Obama's decisive win in the US presidential election. European
markets which opened after the Indian market, fell as the spotlight
moved back to the troubled economy after the US presidential
election. Key benchmark indices in France, Europe and UK were down
by between 1.44% to 1.88%.
Asian markets, which opened before the Indian market, surged
boosted end of the uncertainty about who will lead the US economy
in the midst of great financial peril. Key benchmark indices in
China, Japan, Singapore, Hong Kong, and South Korea were up by
between 1.76% to 4.46%. But the Taiwan Weighted fell 0.29%.
Obama captured the White House today, defeating Republican John
McCain to make history as the first black to be elected as the US
president.
The BSE 30-share Sensex plunged 511.11 points or 4.81% to
10,120.01. The Sensex surged 314.29 points at day's high of
10,945.41 in early trade. The index slumped 579.60 points at the
day's low of 10,051.52 in late trade.
The S&P CNX Nifty was down 147.15 points or 4.68% to 2,994.95.
The market snapped gains of the last five trading sessions. From a
low of 8,509.56 on 27 October 2008, the BSE Sensex had risen
2,121.56 points or 24.93% to 10,631.12 on 4 November 2008. But
there has been a massive erosion in investors' wealth this year.
The barometer index BSE Sensex is down 10,166.98 points or 50.15%
in the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11,086.76 points or 52.27% below its all-time
high of 21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 4,973 crore today as compared to a
turnover of Rs 4,431.22 on 4 November 2008.
Nifty November 2008 futures were at 2973.50, at a discount of 21.45
points as compared to spot closing of 2994.95. NSE's futures &
options (F&O) segment turnover was Rs 38,550.94 crore, which was
higher than Rs 33,758.52 crore on Tuesday, 4 November 2008.
The BSE Mid-Cap index was down 1.5% at 3,394.61 and the BSE
Small-Cap index was down 1.74% at 3,964.78. Both the indices
outperformed the Sensex.
The BSE Oil & Gas index (down 9.44% to 6,112.11), the BSE Metal
index (down 6.88% to 5,451.74), the BSE Realty index (down 5.64% to
2,267) underperformed the Sensex.
The BSE Capital Goods index (down 4.42% to 7,591.64), the BSE PSU
index (down 2.82% to 4,935.52), the BSE Teck index (down 2.64% to
2,142.67), the BSE Power index (down 2.5% to 1,736.92), the BSE
Auto index (down 2.28% to 2,727,82), the BSE Bankex (down 1.87% to
5,633.94), BSE FMCG index (down 1.72% to 1,927.53), the BSE
Consumer Durables index (down 0.82% to 2,108.29), the BSE IT index
(down 0.57% to 2,734.35), the BSE HealthCare index (up 1.18% to
2,913.22), outperformed the Sensex.
The market breadth turned weak in late trade in contrast to a
strong breadth earlier in the day. On BSE, 1,000 shares advanced as
compared to 1,565 that declined. 73 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) slumped 12.76% to Rs 1,269.45
after ABN Amro recommended a 'sell' on the stock and cut its target
price by whopping 38% to Rs 1,150 from Rs 1,850 earlier. The scrip
was the biggest loser from the Sensex pack.
Jaiprakash Associates (down 10.01% to Rs 80.50), Grasim Industries
(down 7.28% to Rs 1,049.45), Tata Motors (down 6.53% to Rs 181.20),
and ACC (down 7% to Rs 470.95) were the other major losers from
Sensex pack.
Telecom stocks fell on concerns that a government move to charge
more for radio spectrum may impact their earnings. India's largest
telecom services provider by sales Bharti Airtel fell 4.54%.
India's second largest telecom services provider by sales, Reliance
Communication slipped 9.5% after Morgan Stanley cut price estimate
on the stock by 45% to Rs 280.
As per reports, the government plans to increase fees telecom firms
pay for using additional spectrum by up to 2% of the firms'
revenue, and would also levy a one-time charge for granting
additional spectrum.
Metal stocks declined after recent sharp fall in metal prices on
global recession worries. Hindalco Industries, Hiindustan Zinc,
Sterlite Industries, Steel Authority of India fell by between 2.75%
to 12.76%. Tata Steel, the world's sixth largest steel maker, was
down 10.05% after ArcelorMittal on reported quarterly operating
profit and sales below expectations.
IT stocks were mixed amid strong rupee and on worries the US
outsourcing business will be curtailed after Obama won the US
presidential election. India's third largest IT exporter by sales
Satyam Computer Services rose 0.27% even as American depository
receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 2.72% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
fell 0.91%, even as ADR rose 4.84%. India's largest IT exporter by
sales Tata Consultancy Services slipped 0.5% off day's high of Rs
548.90.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
The rupee strengthened 0.5% to 47.46/50 per dollar. A strong rupee
affects the IT companies as they earn most of their revenues in
dollar terms.
Bank stocks fell following reports private sector banks are
expected to cut their lending and deposit rates in the next 15 days
and will support credit lines to finance companies and mutual
funds. India's largest commercial bank State Bank of India was down
3.59% after its chairman O P Bhatt said on 4 November 2008 the bank
was likely to cut interest rates by up to 50 basis points.
Bank of India gained 0.04% on reports it has cut its prime lending
rate by 75 basis points to 13.25% with effect from Thursday, 6
November 2008. But Indian Bank fell 3,12% after early gains after
the bank said yesterday it will consider cutting its lending and
deposit rates by 50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
State Bank of Travancore rose 5% after bank fixed 20 December 2008
as the record date for 10 for 1 stock split.
India's largest private sector bank by net profit ICICI Bank fell
1.62% even as the American depository receipt (ADR) spurted 7.28%
overnight. ICICI Bank's chief executive K.V. Kamath said on 3
November 2008, the bank will review interest rates in the next few
days.
India's second largest private sector bank by net profit HDFC Bank
slipped 1.46%, even as ADR jumped 7.63% on Tuesday.
India's largest home loan lender by operating income HDFC fell
8.63%.
As per recent reports, public sector banks are likely to cut
deposit and lending rates by 50 to 75 basis points within one week.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Most realty stocks plunged in late trade from their gains earlier
in the day despite hopes lower interest rates will spur demand for
residential properties. Realty majors, Unitech, Anant Raj
Industries, Parsvnath Developers, DLF slipped by between 2.6% to
11.59%. Indiabulls Real Estate rose 5.15%.
IVRCL Infrastructures & Projects rose 0.33%, extending gains for
the fourth session in a row, on strong Q2 results and healthy order
book.
GMR Infrastructure spurted 4.26% on reports the company is set to
buy a coal mine in Indonesia
Gammon India surged 6.76% extending gains for the fourth day in a
row, on bargain hunting after a recent sharp fall caused by poor
quarterly performance.
Healthcare stocks were mixed following reports the drug regulator
National Pharmaceutical Pricing Authority has issued notices to
Cipla, Ranbaxy Laboratories and Piramal Healthcare among others for
overcharging. Cipla, Glenmark Pharmaceuticals, and Ranbaxy
Laboratories fell between 0.38% to 2.06%. Dr. Redddy's
Laboratories, Piramal Healthcare rose between 0.04% to 1.18%. The
drug regulator has asked these firms to deposit Rs 1630 crore with
the government exchequer besides explaining the hike.
Auto stocks were mixed on reports the government may cut petrol and
diesel prices to drum up support with voters ahead of key state
elections later this month. Maruti Suzuki India and Hero Honda
Motors rose by between 0.08% to 1.41%. Mahindra & Mahindra and Tata
Motors fell by between 6.07% to 6.53%.
Ashok Leyland was fell 8.96% on reports of plans to reduce monthly
production target for November 2008 to 1,500 units from the average
6,800 units it clocked each month in the first six months of this
fiscal.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 2.21% to 3.02%.
Meanwhile, Crude oil fell in New York as investors judged
yesterday's 10 percent gain excessive, and on forecasts that a
government report will show U.S. crude inventories swelling as
demand ebbs. Crude oil for December delivery declined as much as
$3.47, or 4.9 %, to $67.06 a barrel on the New York Mercantile
Exchange.
GAIL India slumped 15.34% even on signing a cooperation agreement
with the Himachal Pradesh state government for extension of the
proposed Dadri-Bawana-Nangal natural gas pipeline to the state.
Airlines stocks declined on reports of Kingfisher Airlines
defaulting on payment of lease rentals on aircrafts. Kingfisher
Airlines tumbled 16.57%. SpiceJet and Jet Airways fell by between
4.49% to 6.39%. The government had recently scrapped customs duty
on jet fuel.
Shri Dinesh Mills was locked 10% upper limit at Rs 795.95 at 11:36
IST on BSE, on setting record date for 10-for-1 stock split.
Shree Cement rose 2.56% after cement shipments rose 12.81% to 6.25
lakh tonnes in October 2008 over October 2007.
Compact Disc India galloped 5.52% after the company said it would
issue convertible warrants at a sharp premium to the prevailing
stock price.
GVK Power & Infrastructure clocked the highest volume of 3.69 crore
shares on BSE. Suzlon Energy (3.46 crore shares), Reliance Natural
resources (1.76 crore shares), IFCI (1.29 crore shares) and
Reliance Petroleum (1.19 crore shares) were the other volume
toppers in that order.
Wednesday, November 5, 2008
Tata Steel slides as ArcelorMittal's Q3 results fall short of expectations
Tata Steel slides as ArcelorMittal's Q3 results fall short of expectations
Meanwhile, the BSE Sensex was down 200.95 points, or 1.89%, to 10426.75.
On BSE, 24.46 lakh shares were traded in the counter. The scrip had an average daily volume of 20.98 lakh shares in the past one quarter.
The stock hit a high of Rs 249.80 and a low of Rs 218.60 so far during the day. The stock had a 52-week high of Rs 952 on 1 January 2008 and a 52-week low of Rs 150 on 27 October 2008.
The stock had underperformed the market over the past one month till 4 November 2008, declining 39.09% as compared to the Sensex's decline of 15.13%. It had also underperformed the market in the past one quarter, falling 65.33% as compared to the Sensex's decline of 27.07%.
Tata Steel, the world's sixth largest steel maker has an equity capital of Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 219.90 discounts its Q2 September 2008 annualised EPS of Rs 97.86, by a PE multiple of 2.24.
ArcelorMittal, the world's largest steelmaker, reported third-quarter net profit below expectations today and forecast significantly lower earnings in the fourth quarter. The company also announced a series of measures, including more temporary production cuts and a pause in its growth strategy, in response to the economic slowdown.
ArcelorMittal reported a 29% growth in net income at $3.8 billion on a 38% increase in sales to $35.2 billion in Q3 September 2008 over Q3 September 2007.
ArcelorMittal's lower-than-expected earnings reflects the slowdown in the sector. Steel prices have come under pressure as the global economy has slowed, prompting the steel makers across the world to scale back production.
Recently, Moody's Investors Service lowered outlook on corporate family rating of Tata Steel to negative from stable. The change in outlook reflects the more challenging operating conditions now facing Tata Steel UK (formerly Corus) as a result of the likely deterioration in demand in Europe and the UK in the next 18 months, with declining steel prices and reduced production volumes, Moody's had said.
Tata Steel UK is the 100% subsidiary of Tata Steel, and is the holding company for the European steel operations principally consisting of the Corus group.
Tata Steel's net profit rose 50.1% to Rs 1787.81 crore on a 43.1% rise in sales to Rs 6850.67 crore in Q2 September 2008 over Q2 September 2008.
Tata Steel is an integrated steel producer, which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
Meanwhile, the BSE Sensex was down 200.95 points, or 1.89%, to 10426.75.
On BSE, 24.46 lakh shares were traded in the counter. The scrip had an average daily volume of 20.98 lakh shares in the past one quarter.
The stock hit a high of Rs 249.80 and a low of Rs 218.60 so far during the day. The stock had a 52-week high of Rs 952 on 1 January 2008 and a 52-week low of Rs 150 on 27 October 2008.
The stock had underperformed the market over the past one month till 4 November 2008, declining 39.09% as compared to the Sensex's decline of 15.13%. It had also underperformed the market in the past one quarter, falling 65.33% as compared to the Sensex's decline of 27.07%.
Tata Steel, the world's sixth largest steel maker has an equity capital of Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 219.90 discounts its Q2 September 2008 annualised EPS of Rs 97.86, by a PE multiple of 2.24.
ArcelorMittal, the world's largest steelmaker, reported third-quarter net profit below expectations today and forecast significantly lower earnings in the fourth quarter. The company also announced a series of measures, including more temporary production cuts and a pause in its growth strategy, in response to the economic slowdown.
ArcelorMittal reported a 29% growth in net income at $3.8 billion on a 38% increase in sales to $35.2 billion in Q3 September 2008 over Q3 September 2007.
ArcelorMittal's lower-than-expected earnings reflects the slowdown in the sector. Steel prices have come under pressure as the global economy has slowed, prompting the steel makers across the world to scale back production.
Recently, Moody's Investors Service lowered outlook on corporate family rating of Tata Steel to negative from stable. The change in outlook reflects the more challenging operating conditions now facing Tata Steel UK (formerly Corus) as a result of the likely deterioration in demand in Europe and the UK in the next 18 months, with declining steel prices and reduced production volumes, Moody's had said.
Tata Steel UK is the 100% subsidiary of Tata Steel, and is the holding company for the European steel operations principally consisting of the Corus group.
Tata Steel's net profit rose 50.1% to Rs 1787.81 crore on a 43.1% rise in sales to Rs 6850.67 crore in Q2 September 2008 over Q2 September 2008.
Tata Steel is an integrated steel producer, which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
Market off lows
The key benchmark indices recovered from the lower levels in early
afternoon trade led by recovery in banking stocks. But a sharp fall
in index heavyweight Reliance Industries (RIL) capped the recovery.
The BSE Sensex was down 192.87 points or 1.91%, recovering close to
140 points from the day's low.
The slide on the domestic bourses was despite firm Asian stocks
which rose as investors welcomed the end to the uncertainty around
the US presidential election. Key benchmark indices in China,
Japan, Singapore, Hong Kong, and South Korea were up by between
2.44% to 5.33%. But the Taiwan Weighted fell 0.29%.
Democrat Barack Obama captured the White House today, defeating
Republican John McCain to make history as the first black to be
elected as the US president.
At 12:25 IST, the BSE 30-share Sensex was down 192.87 points or
1.91% to 10,428.15. The market had surged earlier in the day
boosted by rally in Asian stocks, Barack Obama's election as the
next US president and expectations that a cut in interest rates by
state-run banks that would result in lower borrowing costs for the
corporates. The early rally was also triggered by a sentiment by
the Commerce and Industry Minister Kamal Nath after trading hours
on Tuesday, 3 November 2008, that the government will further ease
foreign investment rules, including those relating to defence
production.
The Sensex surged 314.29 points at day's high of 10,945.41 in early
trade. The index declined 331.01 points at the day's low of
10,300.11 in early afternoon trade.
The S&P CNX Nifty was down 47.80 points or 1.52% to 3,094.30.
The BSE Mid-Cap index was up 0.95% at 3,479.12 and the BSE
Small-Cap index was up 0.39% at 4,053.10. Both the indices
outperformed the Sensex.
The market breadth was strong. On BSE, 1,230 shares advanced as
compared to 1,073 that declined. 74 shares remained unchanged.
India's second largest telecoms services provider by sales,
Reliance Communication slipped 7.39% on BSE after Morgan Stanley
cut price estimate on the stock by 45% to Rs 280.
Tata Steel (down 5.36% to Rs 227) and Bharti Airtel (down 3.95% to
Rs 689) were the major losers from Sensex pack.
The BSE Oil & Gas index fell 5.33% and was the biggest loser from
the sectoral indices on BSE. India's largest private sector company
by market capitalization and oil refiner Reliance Industries (RIL)
slumped 9.57% to Rs 1,316 after ABN Amro recommended a 'sell' on
the stock and cut its target price by whopping 38% to Rs 1,150 from
Rs 1,850 earlier. The scrip was the biggest loser from the Sensex
pack.
GAIL India fell 8.82% despite signing a cooperation agreement with
the Himachal Pradesh state government for extension of the proposed
Dadri-Bawana-Nangal natural gas pipeline to the state.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 1.44% to 3.28%.
Meanwhile, crude oil fell in New York as investors judged
yesterday's 10% gain as excessive on signs of slowing fuel demand
after US auto sales dropped to their lowest in 17 years. Crude oil
for December delivery declined as much as $2.08, or 3 %, to $68.45
a barrel on the New York Mercantile Exchange today.
FMCG stocks were mixed. Britannia Industries, United Breweries,
United Spirits, ITC fell by between 0.19% to 6.22%. On the other
hand, Dabur India, Hindustan Unilever, Marico, Nestle India, Tata
Tea rose by between 0.99% to 3.44%.
Power stocks, too, were mixed. NTPC, Tata Power Company, Power Grid
Corporation of India fell by between 0.27% to 1.86%. Reliance
Infrastructure and Reliance Power rose by between 0.16% to 0.24%.
IT stocks jumped despite strong rupee and also shrugging off
worries the US outsourcing business will be curtailed after Obama
won the US presidential election. India's third largest IT exporter
by sales Satyam Computer Services rose 2.57% even as its American
depository receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 2.51% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
gained 2.01%, as ADR rose 4.84%.
India's largest IT exporter by sales Tata Consultancy Services
jumped 6.55%.
Democrat Barack Obama has strong reservations on outsourcing from
the US. He had made many statements during his election speeches
that he would discourage outsourcing from the US when he comes into
power.
The rupee strengthened 1.61% to 47.40. A strong rupee affects the
IT companies as they earn most of their revenues in dollar terms.
Bank stocks came off the day's lows on reports public sector banks
are likely to cut deposit and lending rates by 50 to 75 basis
points within one week. India's largest commercial bank State Bank
of India was down 1.9% to Rs 1,296.10, off the day's low of Rs
1,265.60, after its chairman O P Bhatt said on 4 November 2008 the
bank was likely to cut interest rates by up to 50 basis points.
But Indian Bank fell 1.48% after early gains after the bank said
yesterday it will consider cutting its lending and deposit rates by
50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
State Bank of Travancore rose 1.92% after bank fixed 20 December
2008 as the record date for 10 for 1 stock split.
India's largest private sector bank by net profit ICICI Bank lost
0.28% to Rs 459, off the day's low of Rs 441.10, after the American
depository receipt (ADR) spurted 7.28% overnight. ICICI Bank's
chief executive K.V. Kamath said on 3 November 2008, the bank will
review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 1.38% to Rs 1,126 off the day's lowof Rs 1105. The ADR jumped
7.63% on Tuesday.
However, India's largest home loan lender by operating income HDFC
fell 1.22% to Rs 1,902 off day's high of Rs 1,999.
Gammon India surged 6.40% extending gains for the fourth day in a
row, on bargain hunting after a recent sharp fall caused by poor
quarterly performance.
Shri Dinesh Mills hit 10% upper circuit after company fixed 27
November 2008 as the record date for for 10 for 1 stock split.
afternoon trade led by recovery in banking stocks. But a sharp fall
in index heavyweight Reliance Industries (RIL) capped the recovery.
The BSE Sensex was down 192.87 points or 1.91%, recovering close to
140 points from the day's low.
The slide on the domestic bourses was despite firm Asian stocks
which rose as investors welcomed the end to the uncertainty around
the US presidential election. Key benchmark indices in China,
Japan, Singapore, Hong Kong, and South Korea were up by between
2.44% to 5.33%. But the Taiwan Weighted fell 0.29%.
Democrat Barack Obama captured the White House today, defeating
Republican John McCain to make history as the first black to be
elected as the US president.
At 12:25 IST, the BSE 30-share Sensex was down 192.87 points or
1.91% to 10,428.15. The market had surged earlier in the day
boosted by rally in Asian stocks, Barack Obama's election as the
next US president and expectations that a cut in interest rates by
state-run banks that would result in lower borrowing costs for the
corporates. The early rally was also triggered by a sentiment by
the Commerce and Industry Minister Kamal Nath after trading hours
on Tuesday, 3 November 2008, that the government will further ease
foreign investment rules, including those relating to defence
production.
The Sensex surged 314.29 points at day's high of 10,945.41 in early
trade. The index declined 331.01 points at the day's low of
10,300.11 in early afternoon trade.
The S&P CNX Nifty was down 47.80 points or 1.52% to 3,094.30.
The BSE Mid-Cap index was up 0.95% at 3,479.12 and the BSE
Small-Cap index was up 0.39% at 4,053.10. Both the indices
outperformed the Sensex.
The market breadth was strong. On BSE, 1,230 shares advanced as
compared to 1,073 that declined. 74 shares remained unchanged.
India's second largest telecoms services provider by sales,
Reliance Communication slipped 7.39% on BSE after Morgan Stanley
cut price estimate on the stock by 45% to Rs 280.
Tata Steel (down 5.36% to Rs 227) and Bharti Airtel (down 3.95% to
Rs 689) were the major losers from Sensex pack.
The BSE Oil & Gas index fell 5.33% and was the biggest loser from
the sectoral indices on BSE. India's largest private sector company
by market capitalization and oil refiner Reliance Industries (RIL)
slumped 9.57% to Rs 1,316 after ABN Amro recommended a 'sell' on
the stock and cut its target price by whopping 38% to Rs 1,150 from
Rs 1,850 earlier. The scrip was the biggest loser from the Sensex
pack.
GAIL India fell 8.82% despite signing a cooperation agreement with
the Himachal Pradesh state government for extension of the proposed
Dadri-Bawana-Nangal natural gas pipeline to the state.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 1.44% to 3.28%.
Meanwhile, crude oil fell in New York as investors judged
yesterday's 10% gain as excessive on signs of slowing fuel demand
after US auto sales dropped to their lowest in 17 years. Crude oil
for December delivery declined as much as $2.08, or 3 %, to $68.45
a barrel on the New York Mercantile Exchange today.
FMCG stocks were mixed. Britannia Industries, United Breweries,
United Spirits, ITC fell by between 0.19% to 6.22%. On the other
hand, Dabur India, Hindustan Unilever, Marico, Nestle India, Tata
Tea rose by between 0.99% to 3.44%.
Power stocks, too, were mixed. NTPC, Tata Power Company, Power Grid
Corporation of India fell by between 0.27% to 1.86%. Reliance
Infrastructure and Reliance Power rose by between 0.16% to 0.24%.
IT stocks jumped despite strong rupee and also shrugging off
worries the US outsourcing business will be curtailed after Obama
won the US presidential election. India's third largest IT exporter
by sales Satyam Computer Services rose 2.57% even as its American
depository receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 2.51% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
gained 2.01%, as ADR rose 4.84%.
India's largest IT exporter by sales Tata Consultancy Services
jumped 6.55%.
Democrat Barack Obama has strong reservations on outsourcing from
the US. He had made many statements during his election speeches
that he would discourage outsourcing from the US when he comes into
power.
The rupee strengthened 1.61% to 47.40. A strong rupee affects the
IT companies as they earn most of their revenues in dollar terms.
Bank stocks came off the day's lows on reports public sector banks
are likely to cut deposit and lending rates by 50 to 75 basis
points within one week. India's largest commercial bank State Bank
of India was down 1.9% to Rs 1,296.10, off the day's low of Rs
1,265.60, after its chairman O P Bhatt said on 4 November 2008 the
bank was likely to cut interest rates by up to 50 basis points.
But Indian Bank fell 1.48% after early gains after the bank said
yesterday it will consider cutting its lending and deposit rates by
50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
State Bank of Travancore rose 1.92% after bank fixed 20 December
2008 as the record date for 10 for 1 stock split.
India's largest private sector bank by net profit ICICI Bank lost
0.28% to Rs 459, off the day's low of Rs 441.10, after the American
depository receipt (ADR) spurted 7.28% overnight. ICICI Bank's
chief executive K.V. Kamath said on 3 November 2008, the bank will
review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 1.38% to Rs 1,126 off the day's lowof Rs 1105. The ADR jumped
7.63% on Tuesday.
However, India's largest home loan lender by operating income HDFC
fell 1.22% to Rs 1,902 off day's high of Rs 1,999.
Gammon India surged 6.40% extending gains for the fourth day in a
row, on bargain hunting after a recent sharp fall caused by poor
quarterly performance.
Shri Dinesh Mills hit 10% upper circuit after company fixed 27
November 2008 as the record date for for 10 for 1 stock split.
RIL tumbles
A sharp fall in Reliance Industries (RIL) pulled the market down in
mid-morning trade led by fall in index heavyweight Reliance
Industries. The BSE Sensex was down 262.85 points or 2.47%. The
barometer index shed close to 570 points from the day's high.
Banking stocks which spurted earlier in the day on possible rate
cuts came off the higher levels.
The slide on the domestic bourses was despite firm Asian stocks
which rose as investors welcomed the end to the uncertainty around
the US presidential election. Key benchmark indices in China,
Japan, Singapore, Hong Kong, and South Korea were up by between
2.34% to 5.85%. But the Taiwan Weighted fell 0.29%.
Democrat Barack Obama captured the White House today, defeating
Republican John McCain to make history as the first black to be
elected US president.
At 11:22 IST, the BSE 30-share Sensex was down 262.85 points or
2.47% to 10,365.82. The market had surged earlier in the day
boosted by rally in Asian stocks, Barack Obama's election as the
next US president and expectations that a cut in interest rates by
state-run banks that would result in lower borrowing costs for the
corporates. The early rally was also triggered by a sentiment by
the Commerce and Industry Minister Kamal Nath after trading hours
on Tuesday, 3 November 2008, that the government will further ease
foreign investment rules, including those relating to defence
production.
The Sensex surged 314.29 points at day's high of 10,945.41 in early
trade. The index declined 268 points at the day's low of 10,363.12
in mid-morning trade.
The S&P CNX Nifty was down 55.80 points or 1.78% to 3,086.30.
The BSE Mid-Cap index was up 0.14% at 3,451.10 and the BSE
Small-Cap index was up 0.45% at 4,053.10. Both the indices
outperformed the Sensex.
The market breadth was strong. On BSE, 1,166 shares advanced as
compared to 958 that declined. 54 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) slumped 8.62% to Rs 1,329.70
after ABN Amro recommended a 'sell' on the stock and cut its target
price by whopping 38% to Rs 1,150 from Rs 1,850 earlier. The scrip
was the biggest loser from the Sensex pack.
Reliance Communications (down 6.19% to Rs 235.40), Bharti Airtel
(down 3.1% to Rs 695.05), Hindalco Industries (down 2.5% to Rs
62.40) were the other major losers from Sensex pack.
Healthcare stocks were mixed following reports the drug regulator
National Pharmaceutical Pricing Authority has issued notices to
Cipla, Ranbaxy Laboratories and Nicholas Piramal among others for
overcharging. Cipla and Ranbaxy Laboratories fell between 0.6% to
2.15% while Glenmark Pharmaceuticals, Dr. Redddy's Laboratories,
Nicholas Piramal HealthCare rose between 0.15% to 3%. The drug
regulator has asked these firms to deposit Rs 1630 crore with the
government exchequer besides explaining the hike.
Most realty stocks extended gains on hopes lower interest rates
will spur demand for residential properties. Realty majors,
Indiabulls Real Estate,Anant Raj Industries, Parsvnath Developers,
DLF jumped by between 2.02% to 12.53%. While, Unitech fell 1.25%.
As per reports public sector banks are likely to cut deposit and
lending rates by 50 to 75 basis points within one week, after the
Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 1.5% to 2.52%.
Meanwhile, crude oil fell in New York as investors judged
yesterday's 10% gain as excessive on signs of slowing fuel demand
after US auto sales dropped to their lowest in 17 years. Crude oil
for December delivery declined as much as $2.08, or 3 %, to $68.45
a barrel on the New York Mercantile Exchange.
GAIL India gained 2.57% on signing a cooperation agreement with the
Himachal Pradesh state government for extension of the proposed
Dadri-Bawana-Nangal natural gas pipeline to the state.
Auto stocks were up on reports the government may cut petrol and
diesel prices to drum up support with voters ahead of key state
elections later this month. Maruti Suzuki India, Mahindra &
Mahindra, Hero Honda Motors, Tata Motors rose by between 0.15% to
2.31%.
Ashok Leyland was flat at Rs 21.10 on reports of planning to reduce
monthly production target for November 2008 to 1,500 units from the
average 6,800 units it clocked each month in the first six months
of this fiscal.
IT stocks jumped despite strong rupee and also shrugging off
worries the US outsourcing business will be curtailed after Obama
won the US presidential election. India's third largest IT exporter
by sales Satyam Computer Services rose 0.84% even as its American
depository receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 1.48% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
gained 1.22%, as ADR rose 4.84%.
India's largest IT exporter by sales Tata Consultancy Services
jumped 4.86%.
Democrat Barack Obama has strong reservations on outsourcing from
the US. He had made many statements during his election speeches
that he would discourage outsourcing from the US when he comes into
power.
The Indian rupee strengthened by 1% in opening deals on Wednesday
on expectations the stock market may rise for a sixth successive
session and attract foreign inflows. The partially convertible
rupee was at 47.20/21 per dollar, compared to Tuesday's close of
47.69/71 per dollar. A strong rupee affects the IT companies as
they earn most of their revenues in dollar terms.
Bank stocks came off the day's high even on reports public sector
banks are likely to cut deposit and lending rates by 50 to 75 basis
points within one week. India's largest commercial bank State Bank
of India fell 3.27% to Rs 1,277 off day's high of Rs 1,375 even
after its chairman O P Bhatt said on 4 November 2008 the bank was
likely to cut interest rates by up to 50 basis points.
Indian Bank fell 1.48% after early gains after the bank said
yesterday it will consider cutting its lending and deposit rates by
50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
India's largest private sector bank by net profit ICICI Bank lost
3.08% to Rs 445 off the day's high of Rs 491 even as American
depository receipt (ADR) spurted 7.28% overnight. ICICI Bank's
chief executive K.V. Kamath said on 3 November 2008, the bank will
review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 0.92% to Rs 1119.90 off the day's high of Rs 1171. The ADR
jumped 7.63% on Tuesday.
India's largest home loan lender by operating income HDFC fell
1.22% to Rs 1,902 off day's high of Rs 1,999.
Aksh Optifibre jumped 3.66% on reports of plans to raise its
Internet protocol television (IPTV) subscriber base to 40,000
across 22 cities in India by end-2008. Currently, it has a 8,000
subscribers in Delhi and 2,000 in Mumbai.
Thermax fell 1.3% on foraying into the South East Asian markets
with an investment of around $22 million. It plans to set up two
green power plants in the Philippines and Indonesia, using miltiple
biomass as feedstock.
Shree Cement surged 3.97% after cement shipments rose 12.81% to
6.25 lakh tonnes in October 2008 over October 2007.
Dalmia Cement (Bharat) rose 0.7% even as October 2008 cement
shipments fell an annual 10.7% to 216,000 tonnes.
Kingfisher Airlines fell 2.86 on reports the of defaulting on lease
rentals to GE Commercial Aviation Services for four A 320
aircrafts.
US stocks had their biggest Election Day rally ever on Tuesday as
investors looked forward to the end of the uncertainty surrounding
the long fight for the White House, while global credit markets
showed more signs of a thaw. The Dow Jones Industrial Average
jumped 305.45 points or 3.28%. The tech-laden Nasdaq Composite
Index surged 53.79 points or 3.12%.
mid-morning trade led by fall in index heavyweight Reliance
Industries. The BSE Sensex was down 262.85 points or 2.47%. The
barometer index shed close to 570 points from the day's high.
Banking stocks which spurted earlier in the day on possible rate
cuts came off the higher levels.
The slide on the domestic bourses was despite firm Asian stocks
which rose as investors welcomed the end to the uncertainty around
the US presidential election. Key benchmark indices in China,
Japan, Singapore, Hong Kong, and South Korea were up by between
2.34% to 5.85%. But the Taiwan Weighted fell 0.29%.
Democrat Barack Obama captured the White House today, defeating
Republican John McCain to make history as the first black to be
elected US president.
At 11:22 IST, the BSE 30-share Sensex was down 262.85 points or
2.47% to 10,365.82. The market had surged earlier in the day
boosted by rally in Asian stocks, Barack Obama's election as the
next US president and expectations that a cut in interest rates by
state-run banks that would result in lower borrowing costs for the
corporates. The early rally was also triggered by a sentiment by
the Commerce and Industry Minister Kamal Nath after trading hours
on Tuesday, 3 November 2008, that the government will further ease
foreign investment rules, including those relating to defence
production.
The Sensex surged 314.29 points at day's high of 10,945.41 in early
trade. The index declined 268 points at the day's low of 10,363.12
in mid-morning trade.
The S&P CNX Nifty was down 55.80 points or 1.78% to 3,086.30.
The BSE Mid-Cap index was up 0.14% at 3,451.10 and the BSE
Small-Cap index was up 0.45% at 4,053.10. Both the indices
outperformed the Sensex.
The market breadth was strong. On BSE, 1,166 shares advanced as
compared to 958 that declined. 54 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) slumped 8.62% to Rs 1,329.70
after ABN Amro recommended a 'sell' on the stock and cut its target
price by whopping 38% to Rs 1,150 from Rs 1,850 earlier. The scrip
was the biggest loser from the Sensex pack.
Reliance Communications (down 6.19% to Rs 235.40), Bharti Airtel
(down 3.1% to Rs 695.05), Hindalco Industries (down 2.5% to Rs
62.40) were the other major losers from Sensex pack.
Healthcare stocks were mixed following reports the drug regulator
National Pharmaceutical Pricing Authority has issued notices to
Cipla, Ranbaxy Laboratories and Nicholas Piramal among others for
overcharging. Cipla and Ranbaxy Laboratories fell between 0.6% to
2.15% while Glenmark Pharmaceuticals, Dr. Redddy's Laboratories,
Nicholas Piramal HealthCare rose between 0.15% to 3%. The drug
regulator has asked these firms to deposit Rs 1630 crore with the
government exchequer besides explaining the hike.
Most realty stocks extended gains on hopes lower interest rates
will spur demand for residential properties. Realty majors,
Indiabulls Real Estate,Anant Raj Industries, Parsvnath Developers,
DLF jumped by between 2.02% to 12.53%. While, Unitech fell 1.25%.
As per reports public sector banks are likely to cut deposit and
lending rates by 50 to 75 basis points within one week, after the
Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 1.5% to 2.52%.
Meanwhile, crude oil fell in New York as investors judged
yesterday's 10% gain as excessive on signs of slowing fuel demand
after US auto sales dropped to their lowest in 17 years. Crude oil
for December delivery declined as much as $2.08, or 3 %, to $68.45
a barrel on the New York Mercantile Exchange.
GAIL India gained 2.57% on signing a cooperation agreement with the
Himachal Pradesh state government for extension of the proposed
Dadri-Bawana-Nangal natural gas pipeline to the state.
Auto stocks were up on reports the government may cut petrol and
diesel prices to drum up support with voters ahead of key state
elections later this month. Maruti Suzuki India, Mahindra &
Mahindra, Hero Honda Motors, Tata Motors rose by between 0.15% to
2.31%.
Ashok Leyland was flat at Rs 21.10 on reports of planning to reduce
monthly production target for November 2008 to 1,500 units from the
average 6,800 units it clocked each month in the first six months
of this fiscal.
IT stocks jumped despite strong rupee and also shrugging off
worries the US outsourcing business will be curtailed after Obama
won the US presidential election. India's third largest IT exporter
by sales Satyam Computer Services rose 0.84% even as its American
depository receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 1.48% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
gained 1.22%, as ADR rose 4.84%.
India's largest IT exporter by sales Tata Consultancy Services
jumped 4.86%.
Democrat Barack Obama has strong reservations on outsourcing from
the US. He had made many statements during his election speeches
that he would discourage outsourcing from the US when he comes into
power.
The Indian rupee strengthened by 1% in opening deals on Wednesday
on expectations the stock market may rise for a sixth successive
session and attract foreign inflows. The partially convertible
rupee was at 47.20/21 per dollar, compared to Tuesday's close of
47.69/71 per dollar. A strong rupee affects the IT companies as
they earn most of their revenues in dollar terms.
Bank stocks came off the day's high even on reports public sector
banks are likely to cut deposit and lending rates by 50 to 75 basis
points within one week. India's largest commercial bank State Bank
of India fell 3.27% to Rs 1,277 off day's high of Rs 1,375 even
after its chairman O P Bhatt said on 4 November 2008 the bank was
likely to cut interest rates by up to 50 basis points.
Indian Bank fell 1.48% after early gains after the bank said
yesterday it will consider cutting its lending and deposit rates by
50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
India's largest private sector bank by net profit ICICI Bank lost
3.08% to Rs 445 off the day's high of Rs 491 even as American
depository receipt (ADR) spurted 7.28% overnight. ICICI Bank's
chief executive K.V. Kamath said on 3 November 2008, the bank will
review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 0.92% to Rs 1119.90 off the day's high of Rs 1171. The ADR
jumped 7.63% on Tuesday.
India's largest home loan lender by operating income HDFC fell
1.22% to Rs 1,902 off day's high of Rs 1,999.
Aksh Optifibre jumped 3.66% on reports of plans to raise its
Internet protocol television (IPTV) subscriber base to 40,000
across 22 cities in India by end-2008. Currently, it has a 8,000
subscribers in Delhi and 2,000 in Mumbai.
Thermax fell 1.3% on foraying into the South East Asian markets
with an investment of around $22 million. It plans to set up two
green power plants in the Philippines and Indonesia, using miltiple
biomass as feedstock.
Shree Cement surged 3.97% after cement shipments rose 12.81% to
6.25 lakh tonnes in October 2008 over October 2007.
Dalmia Cement (Bharat) rose 0.7% even as October 2008 cement
shipments fell an annual 10.7% to 216,000 tonnes.
Kingfisher Airlines fell 2.86 on reports the of defaulting on lease
rentals to GE Commercial Aviation Services for four A 320
aircrafts.
US stocks had their biggest Election Day rally ever on Tuesday as
investors looked forward to the end of the uncertainty surrounding
the long fight for the White House, while global credit markets
showed more signs of a thaw. The Dow Jones Industrial Average
jumped 305.45 points or 3.28%. The tech-laden Nasdaq Composite
Index surged 53.79 points or 3.12%.
US STOCKS-Wall St jumps in record Election Day rall
U.S. stocks rose in the biggest Election Day rally ever on Tuesday, as investors looked forward to the end of the uncertainty surrounding the long fight for the White House, and as energy companies' shares followed oil prices higher.
The rally pushed stocks to their highest close since Oct. 6, with the S&P 500 crossing the 1,000 mark for the first time since Oct. 13. The three major U.S. stock indexes are all up around 18 percent from their closing low points on Oct. 27.
Adding to the positive tone, the Treasury Department is exploring how to best expand its capital injection program and is considering specialty finance firms, such as General Electric's GE Capital unit, a source familiar with the government's thinking said. Shares of GE, an economic bellwether and a Dow component, rose more than 7 percent.
ed the Dow higher after U.S. crude futures CLc1 jumped $6.62, or 10.4 percent, to settle at $70.53 a barrel on signals that OPEC members were cutting output to comply with the group's recent decision.
More signs of thawing credit markets prompted investors to snap up shares at multi-year lows. The interest rates banks charge each other for short-term loans fell again, providing further hope that measures to shore up the credit markets are taking hold.
But the presidential election was first and foremost on investors' minds. Opinion polls indicate Democrat Barack Obama is running ahead of Republican John McCain in enough states to give him more than the 270 electoral votes he needs to win.
"There is new leadership tomorrow and whoever it is, it has to be better than what we've got," said Jim Paulsen, chief investment officer of Wells Capital Management.
Also, with regard to the credit markets, "you've got that relief that they've got that plumbing unplugged and working again that should be a catalyst to go back into the equity market," Paulsen said.
The Dow Jones industrial average .DJI rose 305.45 points, or 3.28 percent, to 9,625.28. The Standard & Poor's 500 Index .SPX jumped 39.45 points, or 4.08 percent, to 1,005.75. The Nasdaq Composite Index .IXIC gained 53.79 points, or 3.12 percent, to 1,780.12.
It was the biggest Election Day rally ever. Election Day was a market holiday before 1984, according to Standard & Poor's.
Strong earnings from MasterCard Inc (MA.N: Quote, Profile, Research) and Archer Daniels Midland Co (ADM.N: Quote, Profile, Research) improved optimism about consumer spending and pricing power even as economic data pointed to a worsening slowdown.
MasterCard, the world's second-largest card network, surged 18.3 percent to $170.24 after the company reported stronger-than-expected earnings late on Monday.
The rally pushed stocks to their highest close since Oct. 6, with the S&P 500 crossing the 1,000 mark for the first time since Oct. 13. The three major U.S. stock indexes are all up around 18 percent from their closing low points on Oct. 27.
Adding to the positive tone, the Treasury Department is exploring how to best expand its capital injection program and is considering specialty finance firms, such as General Electric's GE Capital unit, a source familiar with the government's thinking said. Shares of GE, an economic bellwether and a Dow component, rose more than 7 percent.
ed the Dow higher after U.S. crude futures CLc1 jumped $6.62, or 10.4 percent, to settle at $70.53 a barrel on signals that OPEC members were cutting output to comply with the group's recent decision.
More signs of thawing credit markets prompted investors to snap up shares at multi-year lows. The interest rates banks charge each other for short-term loans fell again, providing further hope that measures to shore up the credit markets are taking hold.
But the presidential election was first and foremost on investors' minds. Opinion polls indicate Democrat Barack Obama is running ahead of Republican John McCain in enough states to give him more than the 270 electoral votes he needs to win.
"There is new leadership tomorrow and whoever it is, it has to be better than what we've got," said Jim Paulsen, chief investment officer of Wells Capital Management.
Also, with regard to the credit markets, "you've got that relief that they've got that plumbing unplugged and working again that should be a catalyst to go back into the equity market," Paulsen said.
The Dow Jones industrial average .DJI rose 305.45 points, or 3.28 percent, to 9,625.28. The Standard & Poor's 500 Index .SPX jumped 39.45 points, or 4.08 percent, to 1,005.75. The Nasdaq Composite Index .IXIC gained 53.79 points, or 3.12 percent, to 1,780.12.
It was the biggest Election Day rally ever. Election Day was a market holiday before 1984, according to Standard & Poor's.
Strong earnings from MasterCard Inc (MA.N: Quote, Profile, Research) and Archer Daniels Midland Co (ADM.N: Quote, Profile, Research) improved optimism about consumer spending and pricing power even as economic data pointed to a worsening slowdown.
MasterCard, the world's second-largest card network, surged 18.3 percent to $170.24 after the company reported stronger-than-expected earnings late on Monday.
Yahoo-Google deal may founder, analyst says
The new search advertising deal between Yahoo Inc and Google Inc is unlikely to win U.S. antitrust approval, and therefore may open the door to a new bid for Yahoo from Microsoft Corp, an analyst said on Tuesday.
Under the revised deal the two companies have proposed to the Justice Department, Yahoo and Google significantly scaled back the scope of their agreement, including shortening the length of the partnership to two years from 10, a source told Reuters on Monday.
Sanford Bernstein analyst Jeffrey Lindsay called the revised offer a "desperate gambit." He said in a note that he expected the Justice Department to defer a decision until next year, and expects the agreement to eventually fall apart.
Should that happen, Microsoft might renew its effort for Yahoo with an offer of around $20 a share, Lindsay said. Microsoft had offered as much as $33 per share for Yahoo earlier this year.
"We expect the DoJ to defer a decision to next year and believe they are preparing for an antitrust showdown with Google," Lindsay wrote. "We expect the Google-Yahoo deal to founder, leaving Yahoo unable to acquire AOL's portal and stuck in a stand-alone value trap."
Yahoo has been in talks with Time Warner Inc about the advertising and content assets of AOL.
Shares of Yahoo rose 4.71 percent to close at $13.35, while Google shares climbed 5.9 percent to $366.94. Microsoft added 4.02 percent at $23.53 on Nasdaq.
Under the revised deal the two companies have proposed to the Justice Department, Yahoo and Google significantly scaled back the scope of their agreement, including shortening the length of the partnership to two years from 10, a source told Reuters on Monday.
Sanford Bernstein analyst Jeffrey Lindsay called the revised offer a "desperate gambit." He said in a note that he expected the Justice Department to defer a decision until next year, and expects the agreement to eventually fall apart.
Should that happen, Microsoft might renew its effort for Yahoo with an offer of around $20 a share, Lindsay said. Microsoft had offered as much as $33 per share for Yahoo earlier this year.
"We expect the DoJ to defer a decision to next year and believe they are preparing for an antitrust showdown with Google," Lindsay wrote. "We expect the Google-Yahoo deal to founder, leaving Yahoo unable to acquire AOL's portal and stuck in a stand-alone value trap."
Yahoo has been in talks with Time Warner Inc about the advertising and content assets of AOL.
Shares of Yahoo rose 4.71 percent to close at $13.35, while Google shares climbed 5.9 percent to $366.94. Microsoft added 4.02 percent at $23.53 on Nasdaq.
US STOCKS-S&P 500, Dow futures rise as Obama's lead grows
S&P 500 and Dow equity index futures turned higher on Tuesday after Democrat Barack Obama took a commanding lead in the U.S. presidential vote tally.
S&P 500 futures SPc1 rose 0.80 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 climbed 16 points, and Nasdaq 100 NDc1 futures were little changed.
With network television projections in from states whose polls have closed, the latest tally of projected electoral votes showed Obama with 200 votes by 9:54 p.m. (1454 GMT), while rival Republican John McCain had 121. A candidate must get 270 electoral votes to win the presidency
S&P 500 futures SPc1 rose 0.80 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures DJc1 climbed 16 points, and Nasdaq 100 NDc1 futures were little changed.
With network television projections in from states whose polls have closed, the latest tally of projected electoral votes showed Obama with 200 votes by 9:54 p.m. (1454 GMT), while rival Republican John McCain had 121. A candidate must get 270 electoral votes to win the presidency
Asian markets end mixed
The stock markets across the Asian region closed mixed ahead of the U.S. presidential election. Taking a cue from Wall Street where the stocks finished the first day of the week on a mixed note as investors looked past a weak reading on the manufacturing sector and focused on the election. The Dow Jones industrial average fell 5.2 points to 9,319.8, and the broader S&P 500 index fell 2.5 points to 966, while the Nasdaq composite index rose 5.4 points to 1,726.
In the commodity market, crude oil extended its losses on renewed recession concerns. Light, sweet crude for December delivery dropped 33 cents to $63.58 a barrel by 02:08 a.m. ET after the contract plunged $3.9 to settle at $63.91 a barrel on the New York Mercantile Exchange on Monday. Brent crude oil for December settlement on London's ICE Futures Europe exchange fell as much as $2.10, or 3.5 percent, to $58.38 a barrel. That's the lowest since Feb. 20, 2007. It traded at $58.91 at 9:25 a.m. London time.
In the currency market, the U.S. dollar strengthened against most major Asian currencies.
Against yen the U.S. dollar traded in the upper 98-yen levels in late Tokyo deals. The dollar was quoted at 98.92- 98.96 yen, up 1.92 yen from Friday's close in Tokyo.
The Australian dollar closed weaker after a larger-than-expected interest rate cut from the Reserve Bank of Australia. The Aussie finished the session at US$0.6651-0.6655, down 2.5% from Monday's close of US$0.6823-0.6828.
The South Korean won fell against the U.S. dollar. The won ended the domestic session at 1,288.0 a dollar compared to Monday's close of 1,262.0 a dollar. China's yuan traded at 6.8365 to the U.S. dollar in over-the-counter trading, up from yesterday's close of 6.8380.
Coming back in equities, Japanese stocks surged after the market remained closed for a holiday on Monday, but the Australian market closed slightly lower after the nation's central bank cut interest rates.
The Japanese stock market closed sharply higher after an extended weekend, rebounding after Friday's 5% plunge. The Japanese markets were closed on Monday for a public holiday. A weaker yen and reports of a possible takeover of struggling electronics maker Sanyo by its bigger rival Panasonic boosted investor sentiment. The benchmark Nikkei Stock Average closed up 537.6 points or 6.3% at a two-week high of 9,114.6. The broader Topix index of all first-section issues gained 43.6 points or 5.0% to 910.7.
On the economic front, total cash earnings in Japan inched higher by 0.1% on year in September, but remained flat compared to August. Contractual cash earnings rose 0.1%, while scheduled earnings climbed 0.4%, while non-scheduled earnings fell 3.3%. Cash earnings for the third quarter were also up 0.1% on year following a 0.7% annual expansion in the second quarter.
Meanwhile, the Japan Automobile Dealers' Association said that Japan's auto sales continued to decline for the third straight month in October as unfavorable and uncertain economic conditions reduced purchasing power. Auto sales dropped by a sharp 13.1% year-over-year in October, compared to a 5.3% fall recorded in September. With the fall in October, vehicle sales slipped for the third consecutive month. In August, vehicle sales had fallen 14.9%.
The Chinese stock market closed lower for the third consecutive day as worries about an economic slowdown weighed on investor sentiment. The benchmark Shanghai composite index lost 13.01 points or 0.76% to close 26-month low of 1,706.70.
On the economic front, the output value of China's construction industry in the first nine months of this year totaled 3.76 trillion yuan, up 22.9% from that for the same period of last year, according to statistics released by the National Bureau of Statistics.
In Hong Kong, the Hang Seng Index reversed declines to end 0.3% higher at 14,384.34. The Hang Seng China Enterprise Index gained 0.80% to end at 6,860.88.
The Australian stock market finished slightly lower, ending a four-day winning streak. Market losses were trimmed by gains in banks and financials after the Australian central bank cut interest rates by 75 basis points to 5.25%. The benchmark S&P/ASX200 index closed down 6.4 points, or 0.2%, at 4,215.1 and the broader All Ordinaries index shed 3.2 points, or 0.1%, to 4,169.8.
The Reserve Bank of Australia cut its cash rate by a 0.75% to 5.25%, citing the effects of the global slowdown, falling commodity prices and a likely downturn in domestic spending.
On the economic front, the Australian Chamber of Commerce and Industry and the Commonwealth Bank of Australia data showed that the business confidence index tumbled in the third quarter ended September to 29.9 from 33.8 in the second quarter, and 51.3 in the year-ago quarter.
In New Zealand, the benchmark NZX 50 began the day with a small rise, but descended by 12.35 points or 0.43% to close the day at 2844.31 points.
In South Korea, the stock market closed sharply higher, extending its gains for the fourth consecutive trading session, as the government's recent economic stimulus measures boosted investor sentiment. After a volatile trading session, the benchmark Korea composite stock price index or Kospi closed up 24.3 points or 2.2% at 1,153.4.
The market closed higher for the fourth day after the central bank announced a $30 billion currency swap deal with the U.S. Federal Reserve on Thursday. Yesterday, the Finance Ministry unveiled a sweeping economic stimulus package worth 14 trillion won, which includes a 10 trillion won budget increase for next year and diverse deregulatory moves for the slumping construction sector. The package came in addition to 19 trillion won worth of tax cuts unveiled earlier, bringing the total for economic relief measures to 33 trillion won.
On the economic front, South Korea's foreign exchange reserves recorded their steepest monthly fall since the 1997-98 Asian financial crisis in October, mainly due to an increased liquidity supply meant to ease financial jitters, according to the central bank. The nation's foreign reserves stood at US$212.3 billion as of the end of October, down US$27.4 billion from a month earlier, marking the seventh straight month of decline.
In the commodity market, crude oil extended its losses on renewed recession concerns. Light, sweet crude for December delivery dropped 33 cents to $63.58 a barrel by 02:08 a.m. ET after the contract plunged $3.9 to settle at $63.91 a barrel on the New York Mercantile Exchange on Monday. Brent crude oil for December settlement on London's ICE Futures Europe exchange fell as much as $2.10, or 3.5 percent, to $58.38 a barrel. That's the lowest since Feb. 20, 2007. It traded at $58.91 at 9:25 a.m. London time.
In the currency market, the U.S. dollar strengthened against most major Asian currencies.
Against yen the U.S. dollar traded in the upper 98-yen levels in late Tokyo deals. The dollar was quoted at 98.92- 98.96 yen, up 1.92 yen from Friday's close in Tokyo.
The Australian dollar closed weaker after a larger-than-expected interest rate cut from the Reserve Bank of Australia. The Aussie finished the session at US$0.6651-0.6655, down 2.5% from Monday's close of US$0.6823-0.6828.
The South Korean won fell against the U.S. dollar. The won ended the domestic session at 1,288.0 a dollar compared to Monday's close of 1,262.0 a dollar. China's yuan traded at 6.8365 to the U.S. dollar in over-the-counter trading, up from yesterday's close of 6.8380.
Coming back in equities, Japanese stocks surged after the market remained closed for a holiday on Monday, but the Australian market closed slightly lower after the nation's central bank cut interest rates.
The Japanese stock market closed sharply higher after an extended weekend, rebounding after Friday's 5% plunge. The Japanese markets were closed on Monday for a public holiday. A weaker yen and reports of a possible takeover of struggling electronics maker Sanyo by its bigger rival Panasonic boosted investor sentiment. The benchmark Nikkei Stock Average closed up 537.6 points or 6.3% at a two-week high of 9,114.6. The broader Topix index of all first-section issues gained 43.6 points or 5.0% to 910.7.
On the economic front, total cash earnings in Japan inched higher by 0.1% on year in September, but remained flat compared to August. Contractual cash earnings rose 0.1%, while scheduled earnings climbed 0.4%, while non-scheduled earnings fell 3.3%. Cash earnings for the third quarter were also up 0.1% on year following a 0.7% annual expansion in the second quarter.
Meanwhile, the Japan Automobile Dealers' Association said that Japan's auto sales continued to decline for the third straight month in October as unfavorable and uncertain economic conditions reduced purchasing power. Auto sales dropped by a sharp 13.1% year-over-year in October, compared to a 5.3% fall recorded in September. With the fall in October, vehicle sales slipped for the third consecutive month. In August, vehicle sales had fallen 14.9%.
The Chinese stock market closed lower for the third consecutive day as worries about an economic slowdown weighed on investor sentiment. The benchmark Shanghai composite index lost 13.01 points or 0.76% to close 26-month low of 1,706.70.
On the economic front, the output value of China's construction industry in the first nine months of this year totaled 3.76 trillion yuan, up 22.9% from that for the same period of last year, according to statistics released by the National Bureau of Statistics.
In Hong Kong, the Hang Seng Index reversed declines to end 0.3% higher at 14,384.34. The Hang Seng China Enterprise Index gained 0.80% to end at 6,860.88.
The Australian stock market finished slightly lower, ending a four-day winning streak. Market losses were trimmed by gains in banks and financials after the Australian central bank cut interest rates by 75 basis points to 5.25%. The benchmark S&P/ASX200 index closed down 6.4 points, or 0.2%, at 4,215.1 and the broader All Ordinaries index shed 3.2 points, or 0.1%, to 4,169.8.
The Reserve Bank of Australia cut its cash rate by a 0.75% to 5.25%, citing the effects of the global slowdown, falling commodity prices and a likely downturn in domestic spending.
On the economic front, the Australian Chamber of Commerce and Industry and the Commonwealth Bank of Australia data showed that the business confidence index tumbled in the third quarter ended September to 29.9 from 33.8 in the second quarter, and 51.3 in the year-ago quarter.
In New Zealand, the benchmark NZX 50 began the day with a small rise, but descended by 12.35 points or 0.43% to close the day at 2844.31 points.
In South Korea, the stock market closed sharply higher, extending its gains for the fourth consecutive trading session, as the government's recent economic stimulus measures boosted investor sentiment. After a volatile trading session, the benchmark Korea composite stock price index or Kospi closed up 24.3 points or 2.2% at 1,153.4.
The market closed higher for the fourth day after the central bank announced a $30 billion currency swap deal with the U.S. Federal Reserve on Thursday. Yesterday, the Finance Ministry unveiled a sweeping economic stimulus package worth 14 trillion won, which includes a 10 trillion won budget increase for next year and diverse deregulatory moves for the slumping construction sector. The package came in addition to 19 trillion won worth of tax cuts unveiled earlier, bringing the total for economic relief measures to 33 trillion won.
On the economic front, South Korea's foreign exchange reserves recorded their steepest monthly fall since the 1997-98 Asian financial crisis in October, mainly due to an increased liquidity supply meant to ease financial jitters, according to the central bank. The nation's foreign reserves stood at US$212.3 billion as of the end of October, down US$27.4 billion from a month earlier, marking the seventh straight month of decline.
GAIL signs co-operation agreement with Government of Himachal Pradesh
GAIL (India) and Government of Himachal Pradesh has signed a co-operation agreement. The co-operation agreement was signed by B.C. Tripathi, director (marketing), GAIL and Manoj Kumar, director industries, Government of Himachal Pradesh in the presence of Prem Kumar Dhumal, Hon'ble Chief Minister of Himachal Pradesh and U.D. Choubey, chairman and managing director, GAIL, Abbay Shukia, additional chief secretary (industries), Himachal Pradesh, Ajay Tyagi, principal resident commissioner, Himachal Pradesh and other senior officials of GAIL and the State Government were also present on the occasion.
The co-operation agreement signed with the department of industries provides for enlisting State level co-operation for extension of the proposed Dadri-Bawana-Nangal natural gas pipeline up-to this region, a joint exercise for assessment of the demand potential of natural gas and allied products in the state of Himachal Pradesh and for looking into feasibility of extending the proposed Dadri-Bawana-Nangal natural gas pipeline upto Himachal Pradesh. The gas pipeline will bring clean and environment friendly fuel to various consumers in the region, which include industrial, domestic and transport sectors. The availability of gas in the region would herald the use of a more efficient energy resource, which will increase the competitive edge of the industries using natural gas.
Under the co-operation agreement, GAIL will use its technical and commercial expertise to study the various options and collate the gas demand potential of the state of Himachal Pradesh. In this regard, GAIL. has already conducted a sample survey of some of industrial areas in Himachal Pradesh.
The company made this announcement during the trading hours today, 04 November 2008
The co-operation agreement signed with the department of industries provides for enlisting State level co-operation for extension of the proposed Dadri-Bawana-Nangal natural gas pipeline up-to this region, a joint exercise for assessment of the demand potential of natural gas and allied products in the state of Himachal Pradesh and for looking into feasibility of extending the proposed Dadri-Bawana-Nangal natural gas pipeline upto Himachal Pradesh. The gas pipeline will bring clean and environment friendly fuel to various consumers in the region, which include industrial, domestic and transport sectors. The availability of gas in the region would herald the use of a more efficient energy resource, which will increase the competitive edge of the industries using natural gas.
Under the co-operation agreement, GAIL will use its technical and commercial expertise to study the various options and collate the gas demand potential of the state of Himachal Pradesh. In this regard, GAIL. has already conducted a sample survey of some of industrial areas in Himachal Pradesh.
The company made this announcement during the trading hours today, 04 November 2008
Wipro to issue & allot equity shares
The committee of Wipro has resolved to issue and allot 600 equity shares of Rs 2 each pursuant to exercise of the stock options by the eligible employees under Wipro Employees Restricted Stock Unit Plan 2004.
This was resolved by the committee of directors on 04 November 2008.
This was resolved by the committee of directors on 04 November 2008.
Market gains on firm Asia, Obama win
Investors cheered Barack Obama's election as the next US president.
However, the market soon sharply cut its early strong gains. Though
the BSE Sensex was up 95.44 points or 0.9%, the barometer index had
shed close to 220 points from the day's high.
Rally in Asian stocks and expectations that a cut in interest rates
by state-run banks that would result in lower borrowing costs for
the corporates supported the market. The sentiment was also firm
following a statement by the Commerce and Industry Minister Kamal
Nath after trading hours on Tuesday, 3 November 2008, that the
government will further ease foreign investment rules, including
those relating to defence production.
Asian stocks surged as investors welcomed the end to the
uncertainty around the US presidential election. Japan's Nikkei
average pared gains briefly after news of Democrat Barack Obama
winning the US presidential election but still remained up 2.6%,
buoyed by exporters boosted by a softer yen. Key benchmark indices
in China, Singapore, Hong Kong, Taiwan and South Korea were up by
between 0.29% to 5.63%.
Democrat Barack Obama captured the White House today, defeating
Republican John McCain to make history as the first black to be
elected US president.
At 10:10 IST, the BSE 30-share Sensex was up 95.44 points or 0.9%
to 10,726.56. The Sensex surged 314.29 points at day's high of
10,945.41 in early trade. The index rose 19.04 points at the day's
low of 10,650.16 in early trade.
The S&P CNX Nifty was down 37 points or 1.18% to 3,179.10.
The BSE Mid-Cap index was up 1.92% at 3,513.94 and the BSE
Small-Cap index was up 2.01% at 4,116.07. Both the indices
outperformed the Sensex.
The market breadth was strong. On BSE, 1,176 shares advanced as
compared to 379 that declined. 29 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) slipped 1.39% to Rs 1432.90
on reports of shutting down five of its seven polyester and
petrochemical units at Patalganga near Mumbai soon after offering
exit option to employees. The move, which comes in the backdrop of
a global slowdown, aims to improve profit margin amid falling
demand for polyester products worldwide, reports suggest.
Reliance Infrastructure (up 4.64% to Rs 568.50), Jaiprakash
Associates (up 4.42% to Rs 93.60) and DLF (up 3.57% to Rs 300.50)
were the major gainers from Sensex pack.
Reliance Communications (down 1.56% to Rs 246.60), ACC (down 0.47%
to Rs 504) were the major losers from Sensex pack.
IT stocks were mixed on strong rupee and on worries the US
outsourcing business will be curtailed and the direct impact will
be on IT sector after Barack Obama won the US presidential
election. India's third largest IT exporter by sales Satyam
Computer Services fell 0.74% as its American depository receipt
(ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 0.76% as ADR
rose 5.25%. India's second largest IT exporter by sales Infosys
slipped 1.33%, even as ADR rose 4.84%.
India's largest IT exporter by sales Tata Consultancy Services
slipped 0.04%.
Democrat Barack Obama has strong reservations on outsourcing from
the US. He had made many statements during his election speeches
that he would discourage outsourcing from the US when he comes into
power.
The Indian rupee strengthened by 1% in opening deals on Wednesday
on expectations the stock market may rise for a sixth successive
session and attract foreign inflows. The partially convertible
rupee was at 47.20/21 per dollar, compared to Tuesday's close of
47.69/71 per dollar. A strong rupee affects the IT companies as
they earn most of their revenues in dollar terms.
Bank stocks extended yesterday's (4 November 2008)'s gains on
reports public sector banks are likely to cut deposit and lending
rates by 50 to 75 basis points within one week. India's largest
commercial bank State Bank of India rose 2.25% after its chairman O
P Bhatt said on 4 November 2008 the bank was likely to cut interest
rates by up to 50 basis points.
Punjab National Bank, Bank of India, Union Bank of India, Federal
Bank, IDBI Bank, Canara Bank, Indian Overseas Bank, Allahabad Bank
and IndusInd Bank rose by between 2.84% to 6..97%. Indian Bank rose
1.53% after the bank said yesterday it will consider cutting its
lending and deposit rates by 50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
India's largest private sector bank by net profit ICICI Bank rose
4.29% as American depository receipt (ADR) spurted 7.28% overnight.
ICICI Bank's chief executive K.V. Kamath said on 3 November 2008,
the bank will review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 2.81% as ADR jumped 7.63% on Tuesday.
India's largest home loan lender by operating income HDFC jumped
2.28%.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
India Infoline rose 0.72% after the company received an
in-principle approval from the market regulator, Securities and
Exchange Board of India (Sebi), to set up an asset management
company.
Kingfisher Airlines fell 2.86 on reports the of defaulting on lease
rentals to GE Commercial Aviation Services for four A 320
aircrafts.
Balaji Telefilms rose 0.57% on reports of plans to enter
broadcasting
GMR Infrastructure surged 6.43% on reports it is close to acquiring
a coal mine in Indonesia for over $100 million
US stocks had their biggest Election Day rally ever on Tuesday as
investors looked forward to the end of the uncertainty surrounding
the long fight for the White House, while global credit markets
showed more signs of a thaw. The Dow Jones Industrial Average
jumped 305.45 points or 3.28%. The tech-laden Nasdaq Composite
Index surged 53.79 points or 3.12%.
However, the market soon sharply cut its early strong gains. Though
the BSE Sensex was up 95.44 points or 0.9%, the barometer index had
shed close to 220 points from the day's high.
Rally in Asian stocks and expectations that a cut in interest rates
by state-run banks that would result in lower borrowing costs for
the corporates supported the market. The sentiment was also firm
following a statement by the Commerce and Industry Minister Kamal
Nath after trading hours on Tuesday, 3 November 2008, that the
government will further ease foreign investment rules, including
those relating to defence production.
Asian stocks surged as investors welcomed the end to the
uncertainty around the US presidential election. Japan's Nikkei
average pared gains briefly after news of Democrat Barack Obama
winning the US presidential election but still remained up 2.6%,
buoyed by exporters boosted by a softer yen. Key benchmark indices
in China, Singapore, Hong Kong, Taiwan and South Korea were up by
between 0.29% to 5.63%.
Democrat Barack Obama captured the White House today, defeating
Republican John McCain to make history as the first black to be
elected US president.
At 10:10 IST, the BSE 30-share Sensex was up 95.44 points or 0.9%
to 10,726.56. The Sensex surged 314.29 points at day's high of
10,945.41 in early trade. The index rose 19.04 points at the day's
low of 10,650.16 in early trade.
The S&P CNX Nifty was down 37 points or 1.18% to 3,179.10.
The BSE Mid-Cap index was up 1.92% at 3,513.94 and the BSE
Small-Cap index was up 2.01% at 4,116.07. Both the indices
outperformed the Sensex.
The market breadth was strong. On BSE, 1,176 shares advanced as
compared to 379 that declined. 29 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) slipped 1.39% to Rs 1432.90
on reports of shutting down five of its seven polyester and
petrochemical units at Patalganga near Mumbai soon after offering
exit option to employees. The move, which comes in the backdrop of
a global slowdown, aims to improve profit margin amid falling
demand for polyester products worldwide, reports suggest.
Reliance Infrastructure (up 4.64% to Rs 568.50), Jaiprakash
Associates (up 4.42% to Rs 93.60) and DLF (up 3.57% to Rs 300.50)
were the major gainers from Sensex pack.
Reliance Communications (down 1.56% to Rs 246.60), ACC (down 0.47%
to Rs 504) were the major losers from Sensex pack.
IT stocks were mixed on strong rupee and on worries the US
outsourcing business will be curtailed and the direct impact will
be on IT sector after Barack Obama won the US presidential
election. India's third largest IT exporter by sales Satyam
Computer Services fell 0.74% as its American depository receipt
(ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 0.76% as ADR
rose 5.25%. India's second largest IT exporter by sales Infosys
slipped 1.33%, even as ADR rose 4.84%.
India's largest IT exporter by sales Tata Consultancy Services
slipped 0.04%.
Democrat Barack Obama has strong reservations on outsourcing from
the US. He had made many statements during his election speeches
that he would discourage outsourcing from the US when he comes into
power.
The Indian rupee strengthened by 1% in opening deals on Wednesday
on expectations the stock market may rise for a sixth successive
session and attract foreign inflows. The partially convertible
rupee was at 47.20/21 per dollar, compared to Tuesday's close of
47.69/71 per dollar. A strong rupee affects the IT companies as
they earn most of their revenues in dollar terms.
Bank stocks extended yesterday's (4 November 2008)'s gains on
reports public sector banks are likely to cut deposit and lending
rates by 50 to 75 basis points within one week. India's largest
commercial bank State Bank of India rose 2.25% after its chairman O
P Bhatt said on 4 November 2008 the bank was likely to cut interest
rates by up to 50 basis points.
Punjab National Bank, Bank of India, Union Bank of India, Federal
Bank, IDBI Bank, Canara Bank, Indian Overseas Bank, Allahabad Bank
and IndusInd Bank rose by between 2.84% to 6..97%. Indian Bank rose
1.53% after the bank said yesterday it will consider cutting its
lending and deposit rates by 50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
India's largest private sector bank by net profit ICICI Bank rose
4.29% as American depository receipt (ADR) spurted 7.28% overnight.
ICICI Bank's chief executive K.V. Kamath said on 3 November 2008,
the bank will review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 2.81% as ADR jumped 7.63% on Tuesday.
India's largest home loan lender by operating income HDFC jumped
2.28%.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
India Infoline rose 0.72% after the company received an
in-principle approval from the market regulator, Securities and
Exchange Board of India (Sebi), to set up an asset management
company.
Kingfisher Airlines fell 2.86 on reports the of defaulting on lease
rentals to GE Commercial Aviation Services for four A 320
aircrafts.
Balaji Telefilms rose 0.57% on reports of plans to enter
broadcasting
GMR Infrastructure surged 6.43% on reports it is close to acquiring
a coal mine in Indonesia for over $100 million
US stocks had their biggest Election Day rally ever on Tuesday as
investors looked forward to the end of the uncertainty surrounding
the long fight for the White House, while global credit markets
showed more signs of a thaw. The Dow Jones Industrial Average
jumped 305.45 points or 3.28%. The tech-laden Nasdaq Composite
Index surged 53.79 points or 3.12%.
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