Market opens lower

Weak Asian markets pulled the domestic markets down in early trade. US crude closed at a record above $127 a barrel on Monday, 19 May 2009, raising concerns about its impact on consumer spending and corporate profits. However, market breadth was strong. Metal stocks rose while capital goods stocks declined.




At 10:21 IST, the 30-share BSE Sensex was down 150.60 points or 0.86% at 17,284.34. Sensex lost 163.41 points at day’s low of 17271.53 touched in early trade.

The broader based S&P CNX Nifty was down 33.7 points or 0.65% at 5,124.

The market breadth was strong on BSE with 1016 shares advancing as compared to 604 that declined. 54 remained unchanged.

Among the 30-member Sensex pack, 25 declined while the rest gained.




India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 0.84% to Rs 2,613. It has reportedly formed a $1 billion joint venture with New York-based Vornado Realty Trust to set up a real estate fund.

Metal stocks rose. Sterlite Industries (up 5.52% to Rs 945), Steel Authority of India (up 2.53% to Rs 190.60), Tata Steel (up 1.48% to Rs 905.25) edged higher. However, India’s largest aluminium manufacturer in terms of sales Hindalco Industries declined 0.1% to Rs 203.50.

India’s largest state-run aluminium maker by sales National Aluminium Company rose 0.42% to Rs 525.95. It has raised prices of the metal by 5.8% a tonne to about Rs 1.44 lakh a tonne to match a rise in prices in the global markets.

Capital goods stocks declined. Larsen & Toubro (down 0.81% to Rs 2,972), Suzlon Energy (down 0.54% to Rs 306.30) and Bharat Heavy Electricals (down 1.41% to Rs 1,770) edged lower.




India’s largest commercial bank State Bank of India declined 1.53% to Rs 1,678. 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 put on hold all future advances for farm equipment like tractors, power tillers and combined harvesters, the reports suggested.

India’s largest tractor maker by sales Mahindra & Mahindra declined 0.33% to Rs 660. 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 0.73% to Rs 824.90. It has reportedly increased prices of its cars by as much as Rs 18,000 because of higher raw material costs.

ACC (up 1.73% to Rs 691.80), Ranbaxy Laboratories (up 1% to Rs 515.50), and Tata Motors (up 0.61% to Rs 673.85) edged higher from the Sensex pack.




Wipro (down 2.39% to Rs 494.05), Bharti Airtel (down 2.04% to Rs 834), Jaiprakash Associates (down 2.15% to Rs 264.30), Reliance Communications (down 1.47% to Rs 593) and Reliance Infrastructure (down 1.77% to Rs 1,434.75) edged lower from Sensex pack.

IL&FS Investsmart declined 1.33% to Rs 196.20. Global financial giant HSBC reportedly plans to acquire 73.21% stake in the domestic brokerage firm for a consideration of around Rs 1,002.5 crore. HSBC will acquire 43.85% from a Mauritius-based unit of E*Trade Financial Corporation and the rest from the Indian brokerage's founder, Infrastructure Leasing & Financial Services, for Rs 200 a share, the reports added. HSBC will also make an offer to buy an additional 20% from other shareholders, the reports suggested.




Asian markets were trading lower today, 20 May 2008. Key benchmark indices in China, Hong Kong, Japan, Singapore, South Korean and Taiwan were down by between 0.27% to 2.07%.