Market fails to sustain higher level

The market plunged in early afternoon trade to touch new intra-day low. The market had witnessed a recovery from lower level in mid-morning trade after weak Asian markets and record high oil prices had pulled it down in early trade. The market breadth was strong. IT stocks were mixed. Banking, capital goods and realty stocks declined.

At 12:22 IST, the 30-share BSE Sensex was down 159.69 points or 0.93% at 17,272.45. Sensex lost 193.44 points at day’s low of 17,241.50 touched in early afternoon trade.




The broader based S&P CNX Nifty was down 54.05 points or 1.05% at 5,103.65.

The market breadth was strong on BSE with 1,427 shares advancing as compared to 1,076 that declined. 84 remained unchanged.

Among the 30-member Sensex pack, 22 declined while the rest gained.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 1.1% to Rs 2,608. It has reportedly formed a $1 billion joint venture with New York-based Vornado Realty Trust to set up a real estate fund.

IT stocks were mixed. Infosys (up 1.83% to Rs 1,905.40) and Satyam Computer Services (up 1.2% to Rs 493) edged higher. Wipro (down 1.71% to Rs 497.50) and Tata Consultancy Services (down 1.67% to Rs 959.80) edged lower.




Banking stocks declined. ICICI Bank (down 1.44% to Rs 928) and HDFC Bank (down 1.48% to Rs 1,480.75) edged lower.

India’s largest commercial bank State Bank of India declined 2% to Rs 1,670. It has reportedly decided to stop giving loans for the purchase of tractors and other farm equipment. Due to mounting non-performing assets in the farm equipment loan segment, the bank has decided to temporarily put on hold all future advances for farm equipment like tractors, power tillers and combined harvesters, the reports suggested.

Realty stocks declined. Indiabulls Real Estate (down 1.27% to Rs 530.45), DLF (down 0.85% to Rs 643.70) and Unitech (down 2.16% to Rs 280.45) edged lower.




Capital goods stocks declined. Larsen & Toubro (down 1.11% to Rs 2,963.05) and Bharat Heavy Electricals (down 2.3% to Rs 1,754) edged lower. However Suzlon Energy rose 0.89% to Rs 310.70.

India’s largest tractor maker by sales Mahindra & Mahindra declined 1.54% to Rs 652. It is reportedly eyeing Italian motorcycle marque brands — Cagiva and MV Agusta. The Castiglioni family, which owns flagship MV Agusta and Cagiva motorcycle brands, has been facing financial troubles for some time and has been on the look out for a potential acquirer, the reports added.

India’s largest car maker by sales Maruti Suzuki India rose 0.22% to Rs 820.75. It has reportedly increased prices of cars by up to Rs 18,000 because of higher raw material costs.




ACC (up 0.93% to Rs 686.50), Tata Steel (up 0.6% to Rs 896.25) Ranbaxy Laboratories (up 0.32% to Rs 512.35), Reliance Communications (up 0.17% to Rs 602.90) edged higher from the Sensex pack.

Reliance Infrastructure (down 3.53% to Rs 1,409), Jaiprakash Associates (down 3.18% to Rs 261.40), Hindalco Industries (down 3.04% to Rs 197.15), Bharti Airtel (down 2.16% to Rs 832), NTPC (down 2.02% to Rs 187.20)edged lower from Sensex pack.

Educomp Solutions declined 0.31% to Rs 4,072.20. The company has acquired a 51% stake in Learning.com.for $ 25 million which includes the purchase of existing shares as well as infudsion of new capital into the company.

Bank of Baroda rose 1.2% to Rs 299. The bank's net profit rose 12.52% to Rs 276.44 crore on 26.57% rise in total income to Rs 3885.7 crore in Q4 March 2008 over Q4 March 2007.