Key benchmark indices staged a late comeback after struggling in
the red for a major part of the day, boosted by fall in crude oil
prices and higher US stock futures. Banking and auto shares
recovered sharply from early lows. Volatility was high throughout
the day. The barometer index BSE Sensex saw wild swings above and
below the 15,000 mark. The market breadth was negative. European
shares edged higher while Asian markets were trading mixed.
US stock futures hinted higher opening on Wall Street. The Dow
Jones futures are up 0.3% while Nasdaq futures are up 0.4%. US
light crude slumped $2.06 to $117.96 a barrel today, 8 August 2008,
as supply concerns eased after an indication that a key oil
pipeline through Turkey, still burning after an explosion, may come
back on line earlier than some previous expectations.
India's inflation, represented by the wholesale price index (WPI),
rose 12.01% in the year to 26 July 2008, slightly above the
previous week's 11.98% rise. The reading was the highest in the
last 13 years. The figure was released after market hours
yesterday, 7 August 2008.
Science and Technology Minister Kapil Sibal today, 8 August 2008,
said the June-September monsoon rains have revived across the
country and are expected to be normal.
The BSE 30-share Sensex was up 50.57 points or 0.33% at 15,167.82.
It opened 80.68 points lower at 15,036.57 and slipped further to
hit an intra-day low of 14,888.12 in early afternoon trade. At the
day's low, the Sensex lost 229.13 points. At the day's high of
15,228.82 struck in mid-afternoon trade, the Sensex 111.57 gained
points.
The S&P CNX Nifty was up 5.65 points or 0.12% at 4529.50. Nifty
August 2008 futures were at 4549, at a premium of 19.50 points as
compared to spot closing.
The BSE Sensex is down 5,119.17 points or 25.23% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 6038.95 points or 28.47% away from its all-time high of
21,206.77 struck on 10 January 2008.
Sentiment may remain cautious in the forthcoming week, as the
market regulator Securities & Exchange Board of India (Sebi) meets
on 13 August 2008 to review the rules relating to issuance of
Participatory Notes (PNs) by foreign portfolio investors, which it
had revised in October 2007. A review of securities lending &
borrowing mechanism, know your client (KYC) norms for FIIs and
status on launch of currency futures are likely to be discussed in
the meeting.
The market breadth was negative on BSE with 1409 shares declining
as compared to 1306 that advanced. 67 remained unchanged.
The BSE Mid-Cap index was up 0.09% to 5,886.97 and the BSE
Small-Cap index was up 0.21% to 7,181.74.
The total turnover on BSE amounted to Rs 5375 crore as compared to
Rs 5691 crore yesterday, 7 August 2008. NSE's futures & options
turnover amounted to Rs 49917.63 crore as compared to Rs 61180.08
crore yesterday, 7 August 2008.
Among the 30-member Sensex pack, 17 declined while the rest
advanced.
Banking and auto shares rebounded sharply from early lows. ICICI
Bank (up 2.80% to Rs 728.35, off day's low of Rs 683.10), and HDFC
Bank (up 1.54% to Rs 1273, off day's low of Rs 1225), advanced.
India's largest state-run bank in terms of net profit State Bank of
India fell marginally by 0.07% to Rs 1523. The stock came sharply
off the day's low of Rs 1477.40.
Fall in crude oil prices fuelled rally in auto stocks from day's
low. India's top truck maker by sales, Tata Motors recovered from
day's low of Rs 427. It ended 0.21% lower at Rs 443.25. Mahindra &
Mahindra, the nation's top tractor maker by sales ended 0.68% lower
at Rs 572.05 after hitting day's low of Rs 551.10.
India's top small car maker by sales Maruti Suzuki India rose 1.26%
to Rs 677, after sliding to day's day's low of Rs 655.05.
Oil and Natural Gas Corporation (ONGC), the country's largest oil
exploration company by market capitalisation surged 4.21% to Rs
1066.20. It was the top gainer from the Sensex pack. The company
reportedly plans to scale up its gas production in Tripura and has
revised the project cost to Rs 4376 crore from Rs 1817 crore.
India's third largest pharma company by sales, Cipla advanced 3.19%
to Rs 234.70. As per reports the hearing in the Delhi High Court
between Cipla and Swiss drug maker Roche has been adjourned to 11
August 2008. Roche had dragged Cipla to court due to patent
infringement of Roche's HIV/AIDS drug Valcyte by Cipla.
Capital goods heavyweights, Larsen & Toubro (up 3.02% to Rs
2841.05), and Bharat Heavy Electricals (up 0.30% to Rs 1780),
gained.
India's largest private sector steelmaker by sales, Tata Steel
gained 1.16% to Rs 650.25 after three straight days of fall. Top
steel producers have decided not to raise steel prices even as the
three month moratorium with the government on price freeze ended on
7 August 2008
Hindalco (up 2.04% to Rs 144.90), HDFC (up 1.35% to Rs 2510), and
NTPC (up 0.60% to Rs 184.55), edged higher from Sensex pack.
India's largest private sector firm by market capitalization and
oil refiner Reliance Industries (RIL) was down 1.29% at Rs 2242 on
9.34 lakh shares. The stock recovered from day's low of Rs 2230.
Reliance Natural Resources (RNRL) gained 3.82% to Rs 104.75.
As per reports, the Bombay High Court (HC) has once again postponed
hearing on the RIL-RNRL case till 12 August 2008. The court will
decide in its next hearing whether the government can intervene in
this case at this stage. The government had filed a petition in the
HC to become a party to the case, supporting RIL.
Cement counters slipped on selling pressure. North India's largest
cement producer Ambuja Cements lost 3.66% to Rs 86.85 on 4.77 lakh
shares. It was the top loser from the Sensex pack.
Other cement counters, Grasim (down 2.65% to Rs 2034), and ACC
(down 1.89% to Rs 627), declined.
India's largest cigarette maker in terms of sales ITC was down
0.63% to Rs 190.50 on reports the company may hike prices of some
of its premium brands by end-August 2008.
Frontline telecom shares slipped. Bharti Airtel, the nation's top
mobile operator by revenue lost 1.18% to Rs 840.15. The company
yesterday, 6 August 2008, said it would launch Apple Inc's
third-generation iPhone in India on 22 August 2008.
India's number two cellular services provider in terms of market
capitalisation Reliance Communications (RCom) was down 0.07% to Rs
438.25. According to recent reports, the company is all set to
float a $500-million tender for GSM 3G networks. At present, RCom
is predominantly a CDMA-based operator which is now looking at 3G
services only in the GSM space.
IT pivotals were under selling pressure. Wipro (down 2.68% to Rs
436.50), TCS (down 1.10% to Rs 842.05), Satyam Computer Services
(down 2.03% to Rs 408.10), and Infosys (down 2.78% to Rs 1673.55),
edged lower.
Interest rate sensitive realty shares declined. DLF (down 0.91% to
Rs 549.80), Parsvnath Developers (down 1.49% to Rs 126.50), Unitech
(down 1.39% to Rs 176.90), fell from the realty space.
Ranbaxy (down 0.14% to Rs 503.25), and Jaiprakash Associates (down
2% to Rs 183.65), and edged lower from the Sensex pack.
Reliance Capital topped turnover charts on BSE notching turnover of
Rs 346.35 crore followed by Reliance Natural Resources (Rs 293.50
crore), Reliance Industries (Rs 211 crore), ICICI Bank (Rs 193.80
crore) and Larsen & Toubro (Rs 178.40 crore), in that order.
Reliance Natural Resources was the volume topper clocking volumes
of 2.90 crore shares followed by Chambal Fertilisers & Chemicals
(1.62 crore shares), Nagarjuna Fertilisers (1.35 crore shares),
Ispat Industries (1.05 crore shares) and IFCI (88.70 lakh shares),
in that order.
Fertilizer shares edged higher on reports the government approved
the investment policy for urea, linking cost of production to the
import parity price, a key demand of the industry.
National Fertilizer (up 5% at Rs 60.45), Rastriya Chemical &
Fertilizer (up 2.08% at Rs 68.70), Nagarjuna Fertilizers &
Chemicals (up 3.22% at Rs 41.65), Chambal Fertilizers & Chemicals
(up 2.65% at Rs 81.50), and Tata Chemicals (up 7.46% at Rs 350),
spurted.
Among side counters, Noida Toll Bridge (up 14.40% to Rs 42.90),
Zuari Industries (up 20% to Rs 327.70), and MRO Teck (up 20% to Rs
61), surged.
Josts Engineering (down 11.40% to Rs 264.90), Hester Pharma (down
10.26% to Rs 105), and Man Aluminium (down 9.88% to Rs 34.20),
slipped.
Shares of state-run oil marketing companies slipped. Hindustan
Petroleum Corporation (down 3.5% to Rs 229.60), Bharat Petroleum
Corporation (down 3.25% to Rs 318.30), and Indian Oil Corporation
(down 2.32% to Rs 432.50), slipped.
Financial Technologies (India) jumped 2.53% to Rs 1405 on reports
its subsidiary, the Multi Commodity Exchange, has sought regulatory
nod for trading in currency futures. Financial Technologies holds
32% in the Multi Commodity Exchange (MCX).
SEL Manufacturing Company plunged 20% to Rs 500.90 even as the
company received an export order for supplying 1.1 million pieces
of readymade garments to a Russian customer. The company made this
announcement during trading hours today, 8 August 2008.
Cairn India slipped 5.31% to Rs 232.50 on reports the government
could impose a special tax on oil firms' incremental revenues
beyond $75 per barrel as part of the subsidy-sharing regime of the
oil sector.
Shanthi Gears surged 9.27% to Rs 73.65 on reports Suzlon Energy,
through its Belgium-based unit, is planning to buy 50% and 100%
stake in Shanthi Gears at around a 30% premium to the market price.
Housing Development & Infrastructure rose 2.84% to Rs 495.40 after
the Reserve Bank of India on Thursday, 7 August 2008, raised
foreign institutional investors limit in the company to 100%.
European markets, which opened after Indian market, edged higher.
Key benchmark indices in France, UK and Germany were up by between
0.13% and 0.58%.
Asian markets were trading mixed today, 8 August 2008. Key
benchmark indices in Taiwan, Japan, and South Korea were up by
between 0.30% and 2.63%. However indices in China, Hong Kong and
Singapore were down 0.69% and 4.47% respectively.
US stocks declined yesterday, 7 August 2008, after American
International Group (AIG) posted its third consecutive quarterly
loss of more than $5 billion, which fueled fears of more fallout
from the credit crisis. Wal-Mart's cautious sales forecast added to
concerns about consumer spending.
The Dow Jones Industrial Average slumped 224.64 points, or 1.93% to
11,431.43, the Standard & Poor's 500 index fell 23.11 points, or
1.79% to 1,266.08, while the Nasdaq Composite index dropped 22.64
points, or 0.95% to 2,355.73.
The European Central Bank and the Bank of England both left their
benchmark interest rates unchanged at 4.25% and 5% respectively in
a meeting yesterday, 7 August 2008, as they ponder how best to
steer their economies between the shoals of mounting inflation and
slowing growth.
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