Key benchmark indices jumped to trade in green for a brief period
and provisionally settled with small losses after the Indian
government on cut excise duties further and lowered service tax
rates in a move to protect the economy from the impact of the
global economic crisis. The BSE 30-share Sensex was provisionally
down 14.49 points, or 0.16%, recovering close to 210 points from
the day's low.
A bout of volatility was witnessed in the later part of the trading
session. The market slipped in mid-afternoon trade after the global
rating agency Standard & Poor's revised the outlook on the
long-term sovereign credit rating on India to negative from stable.
Just before the news of S&P cutting the outlook which hit the
market in mid-afternoon trade, a solid recovery was witnessed on
the domestic bourses
The BSE Sensex plunged as much as 2.53% in early trade on setback
in Asian stocks. The sharp sharp slide took it to the lowest level
in more than 2-1/2 months. It wiped out almost the entire losses at
about 13:50 IST just before the news of the S&P cutting the
outlook.
Government' announcement of the reductions in indirect taxes hit
the market in late trade and took the Sensex in green. However, the
barometer index slipped into the red again later
Finance Minister Pranab Mukherjee in his reply to a debate on the
2009/10 interim budget cut excise duty across the board to 8% from
10 %, and reduced the service tax rate to 10% from 12% on all
taxable services. Mukherjee also said excise duty cuts of 4%
unveiled earlier as part of a government stimulus package would be
extended into the new fiscal year. He also reduced the excise duty
on bulk cement to 8% and extended the exemption on customs cut on
naphtha beyond 31 March 2009.
Higher US index futures also supported domestic bourses. Trading in
the US index futures showed Dow could rise 24 points at the opening
bell on Tuesday, 24 February 2009. But sustained selling by foreign
institutional investors kept market sentiment edgy.
Meanwhile, S&P said the revision in rating outlook of India was due
to deterioration of the fiscal positions of the government to level
that is unsustainable in the medium term. S&P expects government
deficit, including off-budget measures such as oil and fertilizer
bonds, to increase to 11.4% in the fiscal year ending 31 March,
2009, from 5.7% in the previous fiscal year.
Standard & Poor's has, nonetheless, affirmed its 'BBB-' long-term
and 'A-3' short-term sovereign credit ratings on India.
Volatility is likely to remain high in the near term ahead of the
expiry of futures & options contracts for February 2009 series on
Thursday, 26 February 2009. As per reports, rollover of Nifty
positions from February 2009 series to March 2009 series stood at
40% while marketwide rollover of positions was 29%, as on Friday,
20 February 2009.
Heavy sales by foreign funds this year has hit market sentiment.
Foreign funds were sellers through most of last week. FII outflow
in February 2009 totaled Rs 1,180.70 crore (till 19 February 2009).
FII outflow in calendar year 2009 totaled Rs 5,425.90 crore (till
19 February 2009).
European stocks slipped on Tuesday, echoing sharp losses on Wall
Street and in Asia as lingering fears over the stability of the
banking sector rattled investors. The key benchmark indices in
France, Germany and UK fell by between 1.15% to 2.6%.
Asian shares slumped on Tuesday, some to multiyear lows, after a
broad sell-off on Wall Street left the Dow Jones Industrial Average
at levels not seen since 1997. Key benchmark indices in China,
Singapore, Taiwan, South Korea, Hong Kong fell by between 1.06% to
4.56%.
Japan's Nikkei stock average fell 1.46% dragged lower by exporters
such as Canon Inc.
Led by industrials and materials stocks, the US market fell on
recessionary fears and heightened risk aversion, which also drove
investors to the dollar. The Dow Jones industrial average dropped
250.89 points, or 3.41%, to 7,114.78, its lowest close since 7 May
1997. The Standard & Poor`s 500 index fell 26.72 points, or 3.47%,
to 743.33, lowest finish since 11 April 1997. The technology-laden
Nasdaq Composite index lost 53.51 points, or 3.71%, to 1,387.72.
Although US financial stocks actually rose on hopes that the
government will move soon to secure its most troubled banks, the
wider issue of the fragility of the US banking system remains to
the fore.
As per the provisional figures, the BSE 30-share Sensex was down
14.49 points, or 0.16%, to 8,828.72. At the day's high of 8,856.52
Sensex gained 13.31 points in late trade. At the day's low of
8,619.22, the Sensex lost 223.99 points in early trade and was the
lowest level for the Sensex since 3 December 2008.
The S&P CNX Nifty was down 5.10 points, or 0.19%, to 2,731.10.
The market breadth, indicating the overall health of the market,
was weak on BSE with 1,626 shares declining as compared with 818
that advanced. A total of 66 shares remained unchanged.
The BSE clocked a turnover of Rs 2,448 crore, lower than Rs
2,615.54 crore on Friday, 20 February 2009.
From the 30 share Sensex pack 17 stocks fell while rest gained.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) fell 0.02% to Rs 1,253.30 on
fears a worsening global economy will hit demand for
petrochemicals. Nevertheless, the stock came off the day's low of
Rs 1,201.10.
India's largest oil exploration firm by revenue ONGC rose 1.17% to
Rs 680.60 off day's low of Rs 656.25 on reports the company has
discovered oil in the hydrocarbon rich Krishna Godavari basin.
Auto stocks were mixed after the government cut excise duty
further. India's largest tractor maker by sales Mahindra & Mahindra
rose 4.92%. India's largest car maker by sales Maruti Suzuki India
rose 1.39%. But Tata Motors and Hero Honda Motor fell by between
1.23% to 2.02%.
Cement makers turned positive after the government cut excise duty
on bulk cement to 8% from 10%. ACC, Ultratech Cement, Grasim
Industries, Ambuja Cement rose by between 0.91% to 3.01%.
Banking stocks cut intraday losses on hopes the central bank would
cut rates to support faltering growth as inflation fell to its
lowest in more than 13 months in early February, dropping below 4%.
Bank stocks had slumped earlier in the day on fears of rising
defaults in a weakening economy and on overnight fall in American
Depository Receipts (ADRs). India's second largest private sector
bank by net profit HDFC Bank lost 1.16% to Rs 856.90, off the day's
low of Rs 835.10. Its ADR fell 4.31% on Monday, 23 February 2009.
India's largest private sector bank by net profit ICICI Bank
slipped 0.13% to Rs 335.50, off day's low of Rs 318.35. Life
Insurance Corporation of India has hiked its stake in ICICI Bank by
2.04% to 9.38%
India's largest bank in terms of assets and branch network State
Bank of India fell 1.75% to Rs 1,028.25, off the day's low of Rs
1,015.05. State Bank of India (SBI) on Friday, 20 February 2009,
capped interest rates on new auto loans at 10% for a year, sharply
down from the current 11.50%. Early this month, in a similar move,
SBI cut its home loan rate to 8% for a year. SBI will freeze
interest rates on new car loans taken between 23 February 2009 and
31 May 2009 for one year.
PSU bank stocks, Indian Overseas Bank, Union Bank of India, Bank of
Baroda, Bank of India fell by between 2.54% to 6.27%.
There are expectations that the Reserve Bank of India (RBI) will
cut interest rates further to support faltering growth. A sharp
fall in inflation has provided room for the central bank to cut
rates. The global financial sector crisis and recession in key
global economies have pushed economic growth in India down to a
six-year low. The Central Statistical Organisation (CSO) has pegged
India's projected GDP growth for the year ending March 2009 at
7.1%, the slowest in six years and below the previous year's 9%
rise.
Despite a steep cut in policy rates in India since October 2008,
there has not been a commensurate reduction in lending rates by
banks as fears of rising bad loans have made banks cautious in
increasing advances.
Metal stocks fell on worries a weakening domestic and global
economy will hit demand for metals. Tata Steel, Hindalco
Industries, Sterlite Indusries, Steel Authority of India fell by
between 0.64% to 4.46%.
IT pivotals recovered as lower rupee offset fears a weak global
economy would cut the amount firms spent on technology. India's
third largest software services exporter, Wipro slipped 1.44% to Rs
212.20 off the day's low of Rs 208.50. Its ADR fell 2.92% on
Monday, 23 February 2009. India's second largest software services
exporter Infosys Technologies rose 0.48% to Rs 1,184.10 off the
day's low of Rs 1,146.40. Its ADR fell 1.99% on Monday. India's
largest software services exporter by sales TCS slipped 1.57% to Rs
466.50 off the day's low of Rs 460.90.
The rupee fell on Tuesday as sharp falls in the global stock
markets raised concerns of more capital outflows from local shares.
The partially convertible rupee was at 49.89 per dollar weaker
compared to a closing of 49.72/74 per dollar on Friday. A weak
rupee boosts revenues of IT firms in rupee terms as IT companies
earn a lion's share of revenue from exports.
India's largest electric equipment maker by sales Bharat Heavy
Electricals was down 0.27% to Rs 1361.20, having recovered from the
session's low of Rs 1335, on bagging an order worth Rs 3150 crore.
Showing posts with label Post-Market report. Show all posts
Showing posts with label Post-Market report. Show all posts
Wednesday, February 25, 2009
Monday, February 23, 2009
Sensex falls below 9,000 on weak global stocks
Weak global markets pulled the domestic bourses lower with the
barometer index BSE Sensex falling below the psychologically
important 9,000 level. Nevertheless, a late recovery helped cut the
market cut steep intraday losses. The Sensex lost 199.42 points, or
2.21% at 8,843.21, off 80.13 points from the day's low.
Weak European bourses, lower US index futures and sustained selling
pressure by foreign institutional investors (FIIs), whose outflow
in calendar year 2009 has totaled Rs 5094.30 crore (till 18
February 2009), weighed on the sentiment. According to provisional
data on NSE, FIIs were net sellers worth Rs 363.48 crore while
mutual funds bought shares worth Rs 108.44 crore on Thursday, 19
February 2009.
The market opened on a weak note on weak global markets. An
intermittent recovery from lower level was witnessed during the
day. The recovery from lower level in early afternoon trade was
triggered by Finance Minister Pranab Mukherjee's comments that the
government will provide additional resources to stimulate demand
and provide more help to key sectors such as housing,
infrastructure and real estate. However, the intraday recovery
proved short-lived as the market came off the higher level later.
A sell-off gripped the market in mid-afternoon trade as European
markets, which opened after Indian markets, declined sharply in
early trade. At the day's low of 8763.08, the Sensex shed 3.09% in
mid-afternoon trade. After the sharp slide, the market immediately
witnessed a rebound from lower level as the finance minister's
statement raised hopes for more measures from the government for
the economy. Rate cut hopes also aided the intraday rebound in late
trade.
The government has so far announced two stimulus packages including
tax cuts and the capital injections for banks to shield the
domestic economy from the impact of the global financial sector
crisis and recession in key global economies.
Meanwhile Commerce minister Kamal Nath is likely to announce an
export booster package later this month which would address some of
the crucial concerns of the exporters. The sops under consideration
include simplification of rules for service tax refund, extension
of time given to exporters to meet export obligation and an
increase in rates of input duty reimbursement schemes like drawback
and DEPB for some sectors.
Global cues were weak. Trading in US index futures showed the Dow
could fall 130 points at the opening bell on Friday, 20 February
2009. European shares fell sharply on Friday, 20 February 2009,
with banks the worst performers, as investors continued to fret
about the outlook for the global economy. Key benchmark indices in
UK, Germany and France were down by between 2.38% and 3.08%.
Asian markets declined today, 20 February 2009, after Wall Street
tumbled to six-year low on Thursday, 19 February 2009, as a gloomy
US unemployment data reinforced fears the world's largest economy
is in a severe slump. Key benchmark indices in Hong Kong, Japan,
Singapore, South Korea and Taiwan were down by between 2.03% and
3.72%. However, China's Shanghai Composite rose 1.54%.
US markets tumbled on Thursday, 19 February 2009 on mounting
concerns about the fate of major banks and signs that the recession
is deepening, pushing the Dow to its lowest level in more than six
years. The Dow Jones industrial average lost 89.68 points, or
1.19%, at 7,465.95. The Standard & Poor's 500 Index fell 9.48
points, or 1.2%, at 778.94. The Nasdaq Composite index shed 25.15
points, or 1.71%, at 1,442.82.
US government data showed a record number of continuing
unemployment claims, at nearly 5 million, and a surprisingly sharp
drop in manufacturing in the mid-Atlantic states.
The BSE 30-share Sensex lost down 199.42 points or 2.21% at
8,843.21. The Sensex opened 98.85 points lower at 8,943.78, also
its day's high. At the day's low of 8,763.08, the Sensex lost
279.55 points in mid-afternoon trade.
The S&P CNX Nifty lost 52.90 points or 1.9% to 2736.45. Nifty
February 2009 futures were at 2722, a discount of 14.45 points as
compared to the spot closing.
The barometer index BSE Sensex is down 804.10 points or 8.33% in
calendar 2009 from its close of 9,647.31 on 31 December 2008. The
Sensex currently trades at a PE multiple of 10.19 based on
projected earnings per share (EPS) of about Rs 867 for the
30-Sensex firms in the year ending March 2010.
The market breadth, indicating the overall health of the market,
was weak on BSE with 1631 shares declining as compared with 793
that advanced. A total of 88 shares remained unchanged.
BSE clocked a turnover of Rs 2591 crore, lower than Rs 2,428.97
crore on Thursday, 19 February 2009. Turnover in NSE's futures &
options jumped to Rs 43149.65 crore compared with Rs 30637.67 crore
on Thursday, 19 February 2009.
All the sectoral indices on BSE were in the red. The BSE Power
index (down 1.41%), the BSE Auto index (down 1.11%), the BSE PSU
index (down 1.56%), BSE Consumer Durables index (down 1.09%), BSE
Realty index (down 1.93%), the BSE Capital Goods index (down
1.95%), and the FMCG index (down 0.28%), BSE Healthcare index (down
1.12%), BSE Oil & Gas index (down 2.17%), outperfomed the Sensex.
The BSE TECk index fell 2.21%, in line with Sensex's fall.
The BSE IT index (down 2.69%), BSE Bankex (down 3.49%), and BSE
Metal index (down 2.67%), underperformed the Sensex.
Among the 30-share Sensex pack 26 declined while only 4 of them
managed gains. DLF (up 0.74%), ACC (up 0.66%), and Maruti Suzuki
India (up 0.55%), gained from the Sensex pack.
Banking stocks were hard hit as fears of rising defaults in a
weakening economy and overnight fall in American Depository
Receipts (ADRs), offset hopes of rate cuts from the Reserve Bank of
India (RBI). India's largest private sector bank by net profit
ICICI Bank plunged 7.03% to Rs 336.10 on a 1.36% fall in its ADR on
Thursday, 19 February 2009. It was the top loser from the Sensex
pack.
India's second largest private sector bank by net profit HDFC Bank
lost 2.12% to Rs 866.10 as its ADR fell 0.26% on Thursday, 19
February 2009. After market hours on 19 February 2009, the bank on
a private placement basis issued unsecured, non-convertible,
redeemable subordinated bonds in the nature of debentures towards
tier - II capital as with upper tier - II bonds for an amount
aggregating Rs 200 crore and lower tier - II bonds for an amount
aggregating Rs 150 crore.
India's largest bank in terms of assets and branch network State
Bank of India shed 0.73% to Rs 1051.80
India's largest dedicated housing finance company by total income
Housing Development Finance Corporation dropped 2.35% to Rs 1359.90
as the company expects 2009/10 loan growth at about 20%, slightly
lower than the previous year's rise, as property demand falls.
Inflation rose at the lowest level in 13-months at 3.92% in the
year through 7 February 2009, much lower than previous week's
annual rise of 4.39%, data released by the government on Thursday,
19 February 2009, showed. Falling inflation provides room for the
Reserve Bank of India (RBI) to cut interest rates further to shield
the domestic economy from the global financial sector crisis and
recession in key global economies.
Only on Wednesday, 18 February 2009, the Reserve Bank of India
Governor D Subbarao said that there is room to cut interest rates
further. The statement comes at a time when the market is expecting
further action from the central bank.
Market men see a bigger role for RBI to shield the domestic economy
from the global financial sector crisis and recession in key global
economies in the coming months as election code will be in force by
the end of the month which means that there cannon be any policy
action from the government.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) shed 2.99% to Rs 1255 on
fears a worsening global economy will hit demand for
petrochemicals. Nevertheless the stock recovered from day's low of
Rs 1241.30.
India's second largest cellular services provider by sales Reliance
Communications (RCom) slumped 4.36% to Rs 155.60 on reports the
government on Thursday, 19 February 2009 reportedly informed the
Parliament that it will do a special audit on the books of RCom and
its subsidiaries over allegations that the telecommunications
company had diverted revenues earned from its mobile services to a
subsidiary to bring down the total amount it had to pay to the
government as licence fee and spectrum charge.
India's largest private sector power generation firm by sales
Reliance Infrastructure slipped 3.04% to Rs 493.05. The finance
ministry late evening on 18 February 2009 reportedly told
Parliament that companies Reliance Infrastructure and Reliance
Petroleum were being investigated for alleged violation of norms
governing insider trading and overseas borrowings, respectively.
Reliance Petroleum fell 2.01% to Rs 78.10
IT shares declined after research firm Gartner warned of an
unprecedented deceleration in IT spending across markets and
geographic regions in 2009, after its annual global survey of Chief
information officer (CIOs).
India's third largest software services exporter, Wipro slipped
2.16% to Rs 215.60 despite a 1.12% rise in ADR on Thursday, 19
February 2009. India's second largest software services exporter
Infosys Technologies lost 2.33% to Rs 1180 as its ADR fell 1.71% on
Thursday, 19 February 2009. India's largest software services
exporter by sales TCS slipped 3.01% to Rs 475 and India's fifth
largest IT exporter by sales HCL Technologies declined 5.08% to Rs
103.60.
Shares of computer hardware firms HCL Infosystems (down 2.50%),
Moser Baer India (down 5.08%), CMC (down 1.07%), Tata Elxsi (down
1.85%), declined.
Overall, the total IT market globally is expected to grow by only
0.5% in 2009, the Gartner report added.
Educomp Solutions tumbled 11.86% to Rs 1776.60 on reports the
market regulator Securities & Exchange Board of India (Sebi) is
probing the dealings in the shares of education software firm on
bourses.
IT shares fell despite a weak rupee. Indian rupee slipped today on
concerns of capital outflows following decline in global markets.
The partially convertible rupee was at 49.86/88 per dollar against
previous close of 49.62. A weaker rupee boosts operating margins of
IT firms which earn a lion's share of revenue from exports.
Rate sensitive real estate shares rebounded in late trade on hopes
lower rates will spur housing demand. India's largest realty
developer by market capitalisation DLF rose 0.74% to Rs 157.50, off
day's low of Rs 147.50. Foreign brokerage Goldman Sachs in its
recent research report lowered DLF's 12-month target price to Rs
124 post weak Q3 December 2008 results.
Unitech (down 1.40% to Rs 28.20, from day's low of Rs 27.60), HDIL
(down 2.15% to Rs 77.60 after touching day's low of Rs76.50), and
Indiabulls Real Estate (down 3.97% to Rs 93.20 after hitting day's
low of Rs 92.50), fell.
India's largest engineering and construction firm by sales Larsen &
Toubro fell 2.47% to Rs 624.80 after its chief A M Naik said it
will decide on Satyam deal after evaluating the Company Law Board's
order on the bidding process for the fraud-hit IT firm. L&T is the
single largest shareholder in Satyam with a 12% stake.
India's largest power equipment maker by sales Bharat Heavy
Electrical (Bhel) fell 0.58% to Rs 1374.25, off sharply from day's
low of Rs 1347.10. The early fall came on reports quoting Chairman
K. Ravi Kumar said the company expects profit growth to slow to 10%
in the year ending March 2009 on higher raw material costs and
wages, compared with 18% in March 2008.
ABB rose 1.82% to Rs 400.35 after the company reported higher than
expected net profit in the year ended December 2008. ABB's net
profit rose 11.3% to Rs 547.41 crore on a 16.1% increase in total
income to Rs 6967.45 crore in the year ended December 2008 over
December 2007. The company has recommended a dividend of Rs 2.20
per share of face value Rs 2 each for the year ended on December
2008.
Metal stocks fell on worries a weakening domestic and global
economy will hit demand for metals. India's largest copper maker by
sales Sterlite Industries India (down 3.02% to Rs 248.75), Sail
(down 2.50%), Sesa Goa (down 6.22%), Nalco (down 2.02%), declined.
India's largest private sector steel maker by sales Tata Steel
dropped 2.44%
India's largest private sector aluminium maker by sales Hindalco
Industries fell 1.50% to Rs 39.50. As per recent reports, the
company plans to raise Rs 25000 crore by pledging assets and future
earnings of its units.
Auto stocks fell on profit booking after a recent rise. The BSE
Auto index was down 1.11% to 2,544.47 today, 20 February 2009. The
BSE Auto index rose 2.15% in one month to 19 February 2009.
Tata Motors (down 0.45%), Mahindra & Mahindra (down 3.62%), Hero
Honda Motors (down 1.81%) declined. However Bajaj Auto (up 0.76%)
and Maruti Suzuki India (up 0.55%), rebounded from day's low.
FMCG shares were mixed, outperforming the Sensex, on defensive
buying. Hindustan Unilever (down 0.22%), Britannia Industries (down
0.28%), ITC (down 0.03%), United Spirits (down 1.38%), and Nestle
India (down 0.26%), declined. Some FMCG shares Dabur India (up
0.11%), Tata Tea (up 4.36%) and Marico Industries (up 0.60%) rose
Educomp Solutions was the top traded counter on BSE with turnover
of Rs 293.70 crore followed by Reliance Industries (Rs 170.30
crore), United Spirits (Rs 153.30 crore), ICICI Bank (Rs 127 crore)
and State Bank of India (Rs 92 crore).
Satyam Computer Services topped volumes chart on BSE clocking
volumes of 1.44 crore shares followed by Firstsource Solutions
(80.20 lakh shares), Wire & Wireless India (76.67 lakh shares),
Unitech (74.40 lakh shares) and Spice Communications (65.67 lakh
shares).
Great Eastern Shipping Company climbed 2.56% to Rs 172.05 as Baltic
Exchange's chief sea freight index Baltic Dry Index which tracks
rates to ship dry commodities, hit a four-month high on Thursday,
19 February 2009.
barometer index BSE Sensex falling below the psychologically
important 9,000 level. Nevertheless, a late recovery helped cut the
market cut steep intraday losses. The Sensex lost 199.42 points, or
2.21% at 8,843.21, off 80.13 points from the day's low.
Weak European bourses, lower US index futures and sustained selling
pressure by foreign institutional investors (FIIs), whose outflow
in calendar year 2009 has totaled Rs 5094.30 crore (till 18
February 2009), weighed on the sentiment. According to provisional
data on NSE, FIIs were net sellers worth Rs 363.48 crore while
mutual funds bought shares worth Rs 108.44 crore on Thursday, 19
February 2009.
The market opened on a weak note on weak global markets. An
intermittent recovery from lower level was witnessed during the
day. The recovery from lower level in early afternoon trade was
triggered by Finance Minister Pranab Mukherjee's comments that the
government will provide additional resources to stimulate demand
and provide more help to key sectors such as housing,
infrastructure and real estate. However, the intraday recovery
proved short-lived as the market came off the higher level later.
A sell-off gripped the market in mid-afternoon trade as European
markets, which opened after Indian markets, declined sharply in
early trade. At the day's low of 8763.08, the Sensex shed 3.09% in
mid-afternoon trade. After the sharp slide, the market immediately
witnessed a rebound from lower level as the finance minister's
statement raised hopes for more measures from the government for
the economy. Rate cut hopes also aided the intraday rebound in late
trade.
The government has so far announced two stimulus packages including
tax cuts and the capital injections for banks to shield the
domestic economy from the impact of the global financial sector
crisis and recession in key global economies.
Meanwhile Commerce minister Kamal Nath is likely to announce an
export booster package later this month which would address some of
the crucial concerns of the exporters. The sops under consideration
include simplification of rules for service tax refund, extension
of time given to exporters to meet export obligation and an
increase in rates of input duty reimbursement schemes like drawback
and DEPB for some sectors.
Global cues were weak. Trading in US index futures showed the Dow
could fall 130 points at the opening bell on Friday, 20 February
2009. European shares fell sharply on Friday, 20 February 2009,
with banks the worst performers, as investors continued to fret
about the outlook for the global economy. Key benchmark indices in
UK, Germany and France were down by between 2.38% and 3.08%.
Asian markets declined today, 20 February 2009, after Wall Street
tumbled to six-year low on Thursday, 19 February 2009, as a gloomy
US unemployment data reinforced fears the world's largest economy
is in a severe slump. Key benchmark indices in Hong Kong, Japan,
Singapore, South Korea and Taiwan were down by between 2.03% and
3.72%. However, China's Shanghai Composite rose 1.54%.
US markets tumbled on Thursday, 19 February 2009 on mounting
concerns about the fate of major banks and signs that the recession
is deepening, pushing the Dow to its lowest level in more than six
years. The Dow Jones industrial average lost 89.68 points, or
1.19%, at 7,465.95. The Standard & Poor's 500 Index fell 9.48
points, or 1.2%, at 778.94. The Nasdaq Composite index shed 25.15
points, or 1.71%, at 1,442.82.
US government data showed a record number of continuing
unemployment claims, at nearly 5 million, and a surprisingly sharp
drop in manufacturing in the mid-Atlantic states.
The BSE 30-share Sensex lost down 199.42 points or 2.21% at
8,843.21. The Sensex opened 98.85 points lower at 8,943.78, also
its day's high. At the day's low of 8,763.08, the Sensex lost
279.55 points in mid-afternoon trade.
The S&P CNX Nifty lost 52.90 points or 1.9% to 2736.45. Nifty
February 2009 futures were at 2722, a discount of 14.45 points as
compared to the spot closing.
The barometer index BSE Sensex is down 804.10 points or 8.33% in
calendar 2009 from its close of 9,647.31 on 31 December 2008. The
Sensex currently trades at a PE multiple of 10.19 based on
projected earnings per share (EPS) of about Rs 867 for the
30-Sensex firms in the year ending March 2010.
The market breadth, indicating the overall health of the market,
was weak on BSE with 1631 shares declining as compared with 793
that advanced. A total of 88 shares remained unchanged.
BSE clocked a turnover of Rs 2591 crore, lower than Rs 2,428.97
crore on Thursday, 19 February 2009. Turnover in NSE's futures &
options jumped to Rs 43149.65 crore compared with Rs 30637.67 crore
on Thursday, 19 February 2009.
All the sectoral indices on BSE were in the red. The BSE Power
index (down 1.41%), the BSE Auto index (down 1.11%), the BSE PSU
index (down 1.56%), BSE Consumer Durables index (down 1.09%), BSE
Realty index (down 1.93%), the BSE Capital Goods index (down
1.95%), and the FMCG index (down 0.28%), BSE Healthcare index (down
1.12%), BSE Oil & Gas index (down 2.17%), outperfomed the Sensex.
The BSE TECk index fell 2.21%, in line with Sensex's fall.
The BSE IT index (down 2.69%), BSE Bankex (down 3.49%), and BSE
Metal index (down 2.67%), underperformed the Sensex.
Among the 30-share Sensex pack 26 declined while only 4 of them
managed gains. DLF (up 0.74%), ACC (up 0.66%), and Maruti Suzuki
India (up 0.55%), gained from the Sensex pack.
Banking stocks were hard hit as fears of rising defaults in a
weakening economy and overnight fall in American Depository
Receipts (ADRs), offset hopes of rate cuts from the Reserve Bank of
India (RBI). India's largest private sector bank by net profit
ICICI Bank plunged 7.03% to Rs 336.10 on a 1.36% fall in its ADR on
Thursday, 19 February 2009. It was the top loser from the Sensex
pack.
India's second largest private sector bank by net profit HDFC Bank
lost 2.12% to Rs 866.10 as its ADR fell 0.26% on Thursday, 19
February 2009. After market hours on 19 February 2009, the bank on
a private placement basis issued unsecured, non-convertible,
redeemable subordinated bonds in the nature of debentures towards
tier - II capital as with upper tier - II bonds for an amount
aggregating Rs 200 crore and lower tier - II bonds for an amount
aggregating Rs 150 crore.
India's largest bank in terms of assets and branch network State
Bank of India shed 0.73% to Rs 1051.80
India's largest dedicated housing finance company by total income
Housing Development Finance Corporation dropped 2.35% to Rs 1359.90
as the company expects 2009/10 loan growth at about 20%, slightly
lower than the previous year's rise, as property demand falls.
Inflation rose at the lowest level in 13-months at 3.92% in the
year through 7 February 2009, much lower than previous week's
annual rise of 4.39%, data released by the government on Thursday,
19 February 2009, showed. Falling inflation provides room for the
Reserve Bank of India (RBI) to cut interest rates further to shield
the domestic economy from the global financial sector crisis and
recession in key global economies.
Only on Wednesday, 18 February 2009, the Reserve Bank of India
Governor D Subbarao said that there is room to cut interest rates
further. The statement comes at a time when the market is expecting
further action from the central bank.
Market men see a bigger role for RBI to shield the domestic economy
from the global financial sector crisis and recession in key global
economies in the coming months as election code will be in force by
the end of the month which means that there cannon be any policy
action from the government.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) shed 2.99% to Rs 1255 on
fears a worsening global economy will hit demand for
petrochemicals. Nevertheless the stock recovered from day's low of
Rs 1241.30.
India's second largest cellular services provider by sales Reliance
Communications (RCom) slumped 4.36% to Rs 155.60 on reports the
government on Thursday, 19 February 2009 reportedly informed the
Parliament that it will do a special audit on the books of RCom and
its subsidiaries over allegations that the telecommunications
company had diverted revenues earned from its mobile services to a
subsidiary to bring down the total amount it had to pay to the
government as licence fee and spectrum charge.
India's largest private sector power generation firm by sales
Reliance Infrastructure slipped 3.04% to Rs 493.05. The finance
ministry late evening on 18 February 2009 reportedly told
Parliament that companies Reliance Infrastructure and Reliance
Petroleum were being investigated for alleged violation of norms
governing insider trading and overseas borrowings, respectively.
Reliance Petroleum fell 2.01% to Rs 78.10
IT shares declined after research firm Gartner warned of an
unprecedented deceleration in IT spending across markets and
geographic regions in 2009, after its annual global survey of Chief
information officer (CIOs).
India's third largest software services exporter, Wipro slipped
2.16% to Rs 215.60 despite a 1.12% rise in ADR on Thursday, 19
February 2009. India's second largest software services exporter
Infosys Technologies lost 2.33% to Rs 1180 as its ADR fell 1.71% on
Thursday, 19 February 2009. India's largest software services
exporter by sales TCS slipped 3.01% to Rs 475 and India's fifth
largest IT exporter by sales HCL Technologies declined 5.08% to Rs
103.60.
Shares of computer hardware firms HCL Infosystems (down 2.50%),
Moser Baer India (down 5.08%), CMC (down 1.07%), Tata Elxsi (down
1.85%), declined.
Overall, the total IT market globally is expected to grow by only
0.5% in 2009, the Gartner report added.
Educomp Solutions tumbled 11.86% to Rs 1776.60 on reports the
market regulator Securities & Exchange Board of India (Sebi) is
probing the dealings in the shares of education software firm on
bourses.
IT shares fell despite a weak rupee. Indian rupee slipped today on
concerns of capital outflows following decline in global markets.
The partially convertible rupee was at 49.86/88 per dollar against
previous close of 49.62. A weaker rupee boosts operating margins of
IT firms which earn a lion's share of revenue from exports.
Rate sensitive real estate shares rebounded in late trade on hopes
lower rates will spur housing demand. India's largest realty
developer by market capitalisation DLF rose 0.74% to Rs 157.50, off
day's low of Rs 147.50. Foreign brokerage Goldman Sachs in its
recent research report lowered DLF's 12-month target price to Rs
124 post weak Q3 December 2008 results.
Unitech (down 1.40% to Rs 28.20, from day's low of Rs 27.60), HDIL
(down 2.15% to Rs 77.60 after touching day's low of Rs76.50), and
Indiabulls Real Estate (down 3.97% to Rs 93.20 after hitting day's
low of Rs 92.50), fell.
India's largest engineering and construction firm by sales Larsen &
Toubro fell 2.47% to Rs 624.80 after its chief A M Naik said it
will decide on Satyam deal after evaluating the Company Law Board's
order on the bidding process for the fraud-hit IT firm. L&T is the
single largest shareholder in Satyam with a 12% stake.
India's largest power equipment maker by sales Bharat Heavy
Electrical (Bhel) fell 0.58% to Rs 1374.25, off sharply from day's
low of Rs 1347.10. The early fall came on reports quoting Chairman
K. Ravi Kumar said the company expects profit growth to slow to 10%
in the year ending March 2009 on higher raw material costs and
wages, compared with 18% in March 2008.
ABB rose 1.82% to Rs 400.35 after the company reported higher than
expected net profit in the year ended December 2008. ABB's net
profit rose 11.3% to Rs 547.41 crore on a 16.1% increase in total
income to Rs 6967.45 crore in the year ended December 2008 over
December 2007. The company has recommended a dividend of Rs 2.20
per share of face value Rs 2 each for the year ended on December
2008.
Metal stocks fell on worries a weakening domestic and global
economy will hit demand for metals. India's largest copper maker by
sales Sterlite Industries India (down 3.02% to Rs 248.75), Sail
(down 2.50%), Sesa Goa (down 6.22%), Nalco (down 2.02%), declined.
India's largest private sector steel maker by sales Tata Steel
dropped 2.44%
India's largest private sector aluminium maker by sales Hindalco
Industries fell 1.50% to Rs 39.50. As per recent reports, the
company plans to raise Rs 25000 crore by pledging assets and future
earnings of its units.
Auto stocks fell on profit booking after a recent rise. The BSE
Auto index was down 1.11% to 2,544.47 today, 20 February 2009. The
BSE Auto index rose 2.15% in one month to 19 February 2009.
Tata Motors (down 0.45%), Mahindra & Mahindra (down 3.62%), Hero
Honda Motors (down 1.81%) declined. However Bajaj Auto (up 0.76%)
and Maruti Suzuki India (up 0.55%), rebounded from day's low.
FMCG shares were mixed, outperforming the Sensex, on defensive
buying. Hindustan Unilever (down 0.22%), Britannia Industries (down
0.28%), ITC (down 0.03%), United Spirits (down 1.38%), and Nestle
India (down 0.26%), declined. Some FMCG shares Dabur India (up
0.11%), Tata Tea (up 4.36%) and Marico Industries (up 0.60%) rose
Educomp Solutions was the top traded counter on BSE with turnover
of Rs 293.70 crore followed by Reliance Industries (Rs 170.30
crore), United Spirits (Rs 153.30 crore), ICICI Bank (Rs 127 crore)
and State Bank of India (Rs 92 crore).
Satyam Computer Services topped volumes chart on BSE clocking
volumes of 1.44 crore shares followed by Firstsource Solutions
(80.20 lakh shares), Wire & Wireless India (76.67 lakh shares),
Unitech (74.40 lakh shares) and Spice Communications (65.67 lakh
shares).
Great Eastern Shipping Company climbed 2.56% to Rs 172.05 as Baltic
Exchange's chief sea freight index Baltic Dry Index which tracks
rates to ship dry commodities, hit a four-month high on Thursday,
19 February 2009.
Friday, December 5, 2008
Post Market Report:04/12/2008
Likely government measures to pump prime the economy, hopes of a
further cut in interest rates, firm European stocks and rebound in
US index futures boosted the domestic bourses today. The BSE
30-share Sensex jumped 482.32 points, or 5.51%, led by a surge in
realty, metal, banking shares and index heavyweight Reliance
Industries (RIL). The barometer index breached the psychological
9,000 mark. All the sectoral indices on BSE were in the green.
Bank shares were in demand on as falling inflation heightened
expectations for an interest rate cute by the Reserve Bank of India
(RBI). As per the market buzz, the Reserve Bank of India (RBI) is
expected to cut repo and reverse repo rates to the extent of 200
basis points and 125 basis points respectively at the weekend, in
an attempt to shield the domestic economy from the global economic
slowdown. Repo rate is the rate at which RBI lends to commercial
banks and reverse repo rate is the rate at which RBI accepts
deposits from banks.
Inflation based on the wholesale price index rose 8.4% in the year
through 22 November 2008, lower than previous week's 8.84% rise,
data released by the government at about 13:15 IST showed.
Inflation had surged into double digits in early June this year
after an increase in state-set retail fuel prices, and peaked at
12.91% on, 2 August 2008, the highest reading since annual numbers
in the current data series became available in April 1995.
Reserve Bank of India (RBI) governor D Subbarao today, 4 December
2008, said India remains vulnerable to global financial and
economic developments and a period of painful adjustment was
inevitable. The RBI governor said India's economic fundamentals
were strong. He added that the outlook for India was mixed and
there was evidence of activity slowing down.
Meanwhile, the Indian government is slated to announce a slew of
measures at the weekend to pump prime the economy. The likely
measures include a Rs 2000-crore export package, a further
relaxation in external commercial borrowings norms and Rs
15,000-crore budgetary support for infrastructure.
A bout of volatility was witnessed earlier in the day. Likely
government measures to pump prime the economy and hopes of further
rate cuts by the Reserve bank of India gave a positive start to the
domestic bourses. But the market soon slipped into the red due to
lower US index futures, concerns about the weakening global economy
and due to tension between Indian and Pakistan following last
week's terror attacks in Mumbai may cap the upside. The market
firmed up again in early trade. After the recovery, the market
pared gains before bouncing back again. Sensex swung 518.35 points
between the day's high and low.
European stocks reversed early losses to rally on Thursday, 4
December 2008, rising for the third session in a row as investors
hoped deep interest rate cuts would help soothe the global economic
slump. The key benchmark indices in France, Germany and UK were up
by between 0.54% to 2.62%.
The Bank of England slashed interest rates by a full percentage
point today to shore up Britain's crumbling economy and head off
the threat of deflation. The cut took rates to 2% their lowest
level since 1951. The central bank in Sweden slashed its key
interest rate by a record 175 basis points to 2% on Thursday, a
shock move to try and prevent the economy from sliding deeper into
recession.
At its policy meeting later in the day, the European Central Bank
(ECB) is expected to cut rates by at least 75 basis points.
Meanwhile, economic, corporate and industry data continues to be
weak in major economies. Japan said on Thursday, 4 December 2008,
it may be in a deeper recession than first thought, in the latest
signal that the global economic downturn is sparing few corners of
the world. Earlier, a corporate survey in Japan signaled the
country's economic performance in the third quarter may have been
even worse than first reported. Australia's vehicle sales slumped
in November 2008.
US data on Wednesday, 3 December 2008, showed large job losses by
US employers and a slumping service sector. The US economy is
already in recession for a year.
Swiss Bank Credit Suisse today, 4 December 2008, reported a net
loss of about 3 billion Swiss francs ($2.5 billion) in the two
months to end-November 2008 and cut another 5,300 jobs.
Trading in US index futures indicated the Dow could rise 23 points
at the opening bell. The US index futures bounced back from steep
losses earlier in the day.
Closer home, the Indian government is reportedly considering
various options including a strike on Pakistan to dismantle its
terror bases in response to the recent Mumbai terror attacks. As a
strike on Pakistan could lead to a full scale war between the two
nuclear armed countries, India is maintaining a cautious approach
and wants to gauge every possible ramification of its decision,
reports suggest.
Tension between India and Pakistan have mounted after the Mumbai
attacks. India has blamed Islamist militants based in Pakistan for
the attacks.
The BSE 30-share Sensex was up 482.32 points, or 5.51%, to
9,229.75. At the day's high of 9,245.06 hit in late trade, the
Sensex rose 497.63 points. The Sensex lost 20.72 points at the
day's low of 8,726,71 hit in early trade.
The S&P CNX Nifty was up 131.55 points, or 4.95%, to 2,788.
The market breadth, indicating the overall health of the market,
was strong. On BSE, 1,503 shares rose as compared with 668 that
declined. 60 shares remained unchanged.
The BSE clocked a turnover of Rs 3727 crore today, higher than Rs
2,955.08 crore on Wednesday, 3 December 2008.
Nifty December 2008 futures were at 2796, at a premium of 8 points
as compared to the spot closing of 2788. Turnover in NSE's futures
& options (F&O) segment rose to Rs 34,123.92 crore from Rs
33,606.23 crore on Wednesday, 3 December 2008.
The barometer index BSE Sensex is down 11,057.24 points or 54.5% in
the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11,977.02 points or 56.47% below its all-time
high of 21,206.77 struck on 10 January 2008.
The BSE Realty index (up 12.44% to 1,753.65), the BSE Metal index
(up 7.93% to 4,803.91), the BSE Capital Goods index (up 6.91% to
6,506.98), the BSE Oil & Gas index (up 5.86% to 5,682.68), the BSE
Power index (up 5.7% to 1,676.43), the BSE Bankex (up 5.64% to
4,803.37) outperformed the Sensex.
The BSE HealthCare index (up 0.92% to 2,849.12), the BSE Consumer
Durables index (up 1.21% to 1,734.53), the BSE IT index (up 2.69%
to 2,464.74), the BSE FMCG index (up 2.8% to 1,954.75), the BSE
Auto index (up 3.22% to 2,243.11), the BSE Teck index (up 3.32% to
1,982.39) and the BSE PSU index (up 3.71% to 4,667.57),
underperformed the Sensex.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) surged 8.4% to Rs 1,159.30 on
recent reports it intends to restart retailing of petrol and diesel
soon after margins on the two fuels turned positive.
Realty stocks rose on reports the government will next week unveil
measures for the realty sector, which may include incentives for
low-cost housing and lower loan rates. Indiabulls Real Estate, DLF,
Unitech rose by between 11.28% to 17.17%.
Metal stocks rebounded from earlier slide on recovery in metal
prices on the London Metal Exchange (LME). Tata Steel, Hindalco
Industries, Sterlite Industries, Steel Authority of India, National
aluminum Company rose by between 2.65% to 13.84%.
Banking stocks edged higher on rate cut hopes. India's largest
private sector bank by net profit ICICI Bank rose 8.75% as American
depository receipt (ADR) gained 5.64% on Wednesday, 3 December
2008. India's largest commercial bank State Bank of India (SBI)
jumped 6.55%. India's second largest private sector bank by net
profit HDFC Bank gained 3.52% as ADR rose 2.6% on Wednesday.
Shares of housing finance firms rose on likely sops for the realty
sector, which may include incentives for low-cost housing and lower
loan rates. India's top mortgage lender by market capitalisation
Housing Development Finance Corporation (HDFC) rose 6.76% and
India's second-biggest mortgage lender by market capitalisation LIC
Housing Finance rose 10.37%.
Infrastructure Development Finance Company jumped 14.29% after a
block deal of 17.01 lakh shares was executed on BSE at Rs 58.50 per
share.
Indian Overseas Bank rose 3.04% after a block deal of ten lakh
shares was executed on BSE at Rs 67 per share.
IT stocks shrugged off a stronger rupee after India's second
largest IT exporter by sales Infosys' chief executive S.
Gopalakrishnan today, 4 December 2008, said though the company has
seen delays in orders there is no change in its third quarter
December 2008 guidance. Infosys rose 3.12%, recovering from a 4.29%
fall in the previous trading session.
India's fourth largest IT exporter by sales Wipro gained 4.71% as
ADR rose 1.95%. India's third largest IT exporter by sales Satyam
Computer Services rose 1.04% as ADR gained 2.43% on Wednesday, 3
December 2008. India's largest IT exporter by sales Tata
Consultancy Services rose 2.82%.
The Indian rupee was stronger in afternoon trade on Thursday as
hefty gains in the domestic share market raised expectations of
fresh capital inflows while a drop in oil prices also eased
concerns of a widening trade deficit. The partially convertible
rupee was at 49.78/80 per dollar, stronger than its Wednesday's
close of 49.99/50.01. On Tuesday, the rupee had hit a record low of
50.65. A stronger rupee affects IT firms negatively as they earn
most of their revenues from exports.
Auto stocks rose on hopes lower interest rates will spur demand
which is mainly driven by finance and on possible measures by the
government to boost the commercial vehicles sector. Mahindra &
Mahindra, Maruti Suzuki India and Hero Honda Motors rose by between
0.56% to 4.74%.
India's largest commercial vehicle maker by sales Tata Motors up
13.29% on reports of possible excise duty cut on commercial
vehicles as a part of the government's package to boost the
economy.
Capital goods stocks rose on hopes government efforts to boost
economy will lift orders. Larsen & Toubro, Suzlon Energy, Bharat
Heavy Electricals, Crompton Greaves and Thermax rose by between
2.87% to 10.24%.
Power stocks rose on reports the likely government measures to
boost the economy may include special credit window for the power
sector. Tata Power Company, Reliance Infrastructure, Reliance
Power, Power Grid Corporation of India jumped by between 3.21% to
7.46%.
India's largest drug maker by sales Ranbaxy Laboratories rose 3.57%
on signing a pact with a US drug firm.
Orchid Chemicals & Pharmaceuticals rose 2.51% on receiving US
approval for a new drug.
Infrastructure stocks extended gains for the second day in a row on
hopes a likely government package to boost the economy will give
thrust to the infrastructure sector. Hindustan Construction
Company, Nagarjuna Construction Company, and IVRCL Infrastructure &
Projects rose by between 5.46% to 11.88%.
Marg was locked at 5% upper limit at Rs 34.45 at 12:54 IST on BSE,
on bagging a contract for developing an airport at Bijapur in
Karnataka.
PSU OMCs rose on fall in crude oil prices. BPCL, HPCL and Indian
Oil Corporation rose by between 0.66% to 1.28%. Crude oil fell for
a fifth day to the lowest in almost four years after a report
showed US fuel demand extended declines because of the country's
deepening economic slump. Crude oil for January 2008 delivery
dropped as much as $1.49, or 3.2%, to $45.30 a barrel on the New
York Mercantile Exchange. Lower oil prices will reduce
underrecoveries at the state-run oil firms on domestic sale of
petrol, diesel, LPG and kerosene at a controlled price.
Hindustan Oil Exploration Company rose 6.12% on bagging two oil and
gas blocks.
Consumer durables stocks rose on hopes further rate cuts by the
Reserve Bank of India would spur demand which is mainly driven by
finance. Videocon Indusries, Blue Star,Titan Industries, Lloyd
Electric and Rajesh Exports rose by between 1.52% to 3.56%.
Cement stocks rose on hopes likely government measures to boost the
infrastructure sector will spurt demand. ACC, Birla Corporation of
India, Ultratech Cement, Ambuja Cements and Grasim Industries rose
by between 1.13% to 6.6%.
Unitech clocked the highest volume of 3.19 crore shares on BSE.
Suzlon Energy (2.46 crore shares), GVK Power & Infrastructure (1.82
crore shares), Housing Development & Infrastructure (1.1 crore
shares) and Jaiprakash Associates (82.64 lakh shares) were the
other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 404.61 crore
on BSE. State Bank of India (Rs 203.61 crore), Educomp Solutions
(Rs 178.33 crore), Reliance Infrastructure (Rs 153.18 crore) and
DLF (Rs 132.49 crore) were the other turnover toppers in that
order.
Haldyn Glass Gujarat spurted 8.51% on increase in the promoters'
stake in the company.
Nava Bharat Ventures jumped 20.28% on share buyback plan.
PVR galloped 4.88% on reports it plans to set up entertainment
centres across the country.
Chinese stocks rose after the government on Wednesday, 3 December
2008, announced measures whereby it will use financial policy to
support the economy. The Shanghai Composite was up 1.84%. But most
Asian shares weakened after earlier gains. Key benchmark indices in
South Korea, Hong Kong, Japan and Taiwan were down by between 0.58%
to 1.58%.
China will make use of required reserves as well as interest rates
and the exchange rate to ensure ample liquidity in the banking
system, the government said on Wednesday. The State Council,
China's cabinet, also approved measures aimed at stabilising the
domestic stock market, boosting bond issuance and increasing the
supply of credit.
further cut in interest rates, firm European stocks and rebound in
US index futures boosted the domestic bourses today. The BSE
30-share Sensex jumped 482.32 points, or 5.51%, led by a surge in
realty, metal, banking shares and index heavyweight Reliance
Industries (RIL). The barometer index breached the psychological
9,000 mark. All the sectoral indices on BSE were in the green.
Bank shares were in demand on as falling inflation heightened
expectations for an interest rate cute by the Reserve Bank of India
(RBI). As per the market buzz, the Reserve Bank of India (RBI) is
expected to cut repo and reverse repo rates to the extent of 200
basis points and 125 basis points respectively at the weekend, in
an attempt to shield the domestic economy from the global economic
slowdown. Repo rate is the rate at which RBI lends to commercial
banks and reverse repo rate is the rate at which RBI accepts
deposits from banks.
Inflation based on the wholesale price index rose 8.4% in the year
through 22 November 2008, lower than previous week's 8.84% rise,
data released by the government at about 13:15 IST showed.
Inflation had surged into double digits in early June this year
after an increase in state-set retail fuel prices, and peaked at
12.91% on, 2 August 2008, the highest reading since annual numbers
in the current data series became available in April 1995.
Reserve Bank of India (RBI) governor D Subbarao today, 4 December
2008, said India remains vulnerable to global financial and
economic developments and a period of painful adjustment was
inevitable. The RBI governor said India's economic fundamentals
were strong. He added that the outlook for India was mixed and
there was evidence of activity slowing down.
Meanwhile, the Indian government is slated to announce a slew of
measures at the weekend to pump prime the economy. The likely
measures include a Rs 2000-crore export package, a further
relaxation in external commercial borrowings norms and Rs
15,000-crore budgetary support for infrastructure.
A bout of volatility was witnessed earlier in the day. Likely
government measures to pump prime the economy and hopes of further
rate cuts by the Reserve bank of India gave a positive start to the
domestic bourses. But the market soon slipped into the red due to
lower US index futures, concerns about the weakening global economy
and due to tension between Indian and Pakistan following last
week's terror attacks in Mumbai may cap the upside. The market
firmed up again in early trade. After the recovery, the market
pared gains before bouncing back again. Sensex swung 518.35 points
between the day's high and low.
European stocks reversed early losses to rally on Thursday, 4
December 2008, rising for the third session in a row as investors
hoped deep interest rate cuts would help soothe the global economic
slump. The key benchmark indices in France, Germany and UK were up
by between 0.54% to 2.62%.
The Bank of England slashed interest rates by a full percentage
point today to shore up Britain's crumbling economy and head off
the threat of deflation. The cut took rates to 2% their lowest
level since 1951. The central bank in Sweden slashed its key
interest rate by a record 175 basis points to 2% on Thursday, a
shock move to try and prevent the economy from sliding deeper into
recession.
At its policy meeting later in the day, the European Central Bank
(ECB) is expected to cut rates by at least 75 basis points.
Meanwhile, economic, corporate and industry data continues to be
weak in major economies. Japan said on Thursday, 4 December 2008,
it may be in a deeper recession than first thought, in the latest
signal that the global economic downturn is sparing few corners of
the world. Earlier, a corporate survey in Japan signaled the
country's economic performance in the third quarter may have been
even worse than first reported. Australia's vehicle sales slumped
in November 2008.
US data on Wednesday, 3 December 2008, showed large job losses by
US employers and a slumping service sector. The US economy is
already in recession for a year.
Swiss Bank Credit Suisse today, 4 December 2008, reported a net
loss of about 3 billion Swiss francs ($2.5 billion) in the two
months to end-November 2008 and cut another 5,300 jobs.
Trading in US index futures indicated the Dow could rise 23 points
at the opening bell. The US index futures bounced back from steep
losses earlier in the day.
Closer home, the Indian government is reportedly considering
various options including a strike on Pakistan to dismantle its
terror bases in response to the recent Mumbai terror attacks. As a
strike on Pakistan could lead to a full scale war between the two
nuclear armed countries, India is maintaining a cautious approach
and wants to gauge every possible ramification of its decision,
reports suggest.
Tension between India and Pakistan have mounted after the Mumbai
attacks. India has blamed Islamist militants based in Pakistan for
the attacks.
The BSE 30-share Sensex was up 482.32 points, or 5.51%, to
9,229.75. At the day's high of 9,245.06 hit in late trade, the
Sensex rose 497.63 points. The Sensex lost 20.72 points at the
day's low of 8,726,71 hit in early trade.
The S&P CNX Nifty was up 131.55 points, or 4.95%, to 2,788.
The market breadth, indicating the overall health of the market,
was strong. On BSE, 1,503 shares rose as compared with 668 that
declined. 60 shares remained unchanged.
The BSE clocked a turnover of Rs 3727 crore today, higher than Rs
2,955.08 crore on Wednesday, 3 December 2008.
Nifty December 2008 futures were at 2796, at a premium of 8 points
as compared to the spot closing of 2788. Turnover in NSE's futures
& options (F&O) segment rose to Rs 34,123.92 crore from Rs
33,606.23 crore on Wednesday, 3 December 2008.
The barometer index BSE Sensex is down 11,057.24 points or 54.5% in
the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11,977.02 points or 56.47% below its all-time
high of 21,206.77 struck on 10 January 2008.
The BSE Realty index (up 12.44% to 1,753.65), the BSE Metal index
(up 7.93% to 4,803.91), the BSE Capital Goods index (up 6.91% to
6,506.98), the BSE Oil & Gas index (up 5.86% to 5,682.68), the BSE
Power index (up 5.7% to 1,676.43), the BSE Bankex (up 5.64% to
4,803.37) outperformed the Sensex.
The BSE HealthCare index (up 0.92% to 2,849.12), the BSE Consumer
Durables index (up 1.21% to 1,734.53), the BSE IT index (up 2.69%
to 2,464.74), the BSE FMCG index (up 2.8% to 1,954.75), the BSE
Auto index (up 3.22% to 2,243.11), the BSE Teck index (up 3.32% to
1,982.39) and the BSE PSU index (up 3.71% to 4,667.57),
underperformed the Sensex.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) surged 8.4% to Rs 1,159.30 on
recent reports it intends to restart retailing of petrol and diesel
soon after margins on the two fuels turned positive.
Realty stocks rose on reports the government will next week unveil
measures for the realty sector, which may include incentives for
low-cost housing and lower loan rates. Indiabulls Real Estate, DLF,
Unitech rose by between 11.28% to 17.17%.
Metal stocks rebounded from earlier slide on recovery in metal
prices on the London Metal Exchange (LME). Tata Steel, Hindalco
Industries, Sterlite Industries, Steel Authority of India, National
aluminum Company rose by between 2.65% to 13.84%.
Banking stocks edged higher on rate cut hopes. India's largest
private sector bank by net profit ICICI Bank rose 8.75% as American
depository receipt (ADR) gained 5.64% on Wednesday, 3 December
2008. India's largest commercial bank State Bank of India (SBI)
jumped 6.55%. India's second largest private sector bank by net
profit HDFC Bank gained 3.52% as ADR rose 2.6% on Wednesday.
Shares of housing finance firms rose on likely sops for the realty
sector, which may include incentives for low-cost housing and lower
loan rates. India's top mortgage lender by market capitalisation
Housing Development Finance Corporation (HDFC) rose 6.76% and
India's second-biggest mortgage lender by market capitalisation LIC
Housing Finance rose 10.37%.
Infrastructure Development Finance Company jumped 14.29% after a
block deal of 17.01 lakh shares was executed on BSE at Rs 58.50 per
share.
Indian Overseas Bank rose 3.04% after a block deal of ten lakh
shares was executed on BSE at Rs 67 per share.
IT stocks shrugged off a stronger rupee after India's second
largest IT exporter by sales Infosys' chief executive S.
Gopalakrishnan today, 4 December 2008, said though the company has
seen delays in orders there is no change in its third quarter
December 2008 guidance. Infosys rose 3.12%, recovering from a 4.29%
fall in the previous trading session.
India's fourth largest IT exporter by sales Wipro gained 4.71% as
ADR rose 1.95%. India's third largest IT exporter by sales Satyam
Computer Services rose 1.04% as ADR gained 2.43% on Wednesday, 3
December 2008. India's largest IT exporter by sales Tata
Consultancy Services rose 2.82%.
The Indian rupee was stronger in afternoon trade on Thursday as
hefty gains in the domestic share market raised expectations of
fresh capital inflows while a drop in oil prices also eased
concerns of a widening trade deficit. The partially convertible
rupee was at 49.78/80 per dollar, stronger than its Wednesday's
close of 49.99/50.01. On Tuesday, the rupee had hit a record low of
50.65. A stronger rupee affects IT firms negatively as they earn
most of their revenues from exports.
Auto stocks rose on hopes lower interest rates will spur demand
which is mainly driven by finance and on possible measures by the
government to boost the commercial vehicles sector. Mahindra &
Mahindra, Maruti Suzuki India and Hero Honda Motors rose by between
0.56% to 4.74%.
India's largest commercial vehicle maker by sales Tata Motors up
13.29% on reports of possible excise duty cut on commercial
vehicles as a part of the government's package to boost the
economy.
Capital goods stocks rose on hopes government efforts to boost
economy will lift orders. Larsen & Toubro, Suzlon Energy, Bharat
Heavy Electricals, Crompton Greaves and Thermax rose by between
2.87% to 10.24%.
Power stocks rose on reports the likely government measures to
boost the economy may include special credit window for the power
sector. Tata Power Company, Reliance Infrastructure, Reliance
Power, Power Grid Corporation of India jumped by between 3.21% to
7.46%.
India's largest drug maker by sales Ranbaxy Laboratories rose 3.57%
on signing a pact with a US drug firm.
Orchid Chemicals & Pharmaceuticals rose 2.51% on receiving US
approval for a new drug.
Infrastructure stocks extended gains for the second day in a row on
hopes a likely government package to boost the economy will give
thrust to the infrastructure sector. Hindustan Construction
Company, Nagarjuna Construction Company, and IVRCL Infrastructure &
Projects rose by between 5.46% to 11.88%.
Marg was locked at 5% upper limit at Rs 34.45 at 12:54 IST on BSE,
on bagging a contract for developing an airport at Bijapur in
Karnataka.
PSU OMCs rose on fall in crude oil prices. BPCL, HPCL and Indian
Oil Corporation rose by between 0.66% to 1.28%. Crude oil fell for
a fifth day to the lowest in almost four years after a report
showed US fuel demand extended declines because of the country's
deepening economic slump. Crude oil for January 2008 delivery
dropped as much as $1.49, or 3.2%, to $45.30 a barrel on the New
York Mercantile Exchange. Lower oil prices will reduce
underrecoveries at the state-run oil firms on domestic sale of
petrol, diesel, LPG and kerosene at a controlled price.
Hindustan Oil Exploration Company rose 6.12% on bagging two oil and
gas blocks.
Consumer durables stocks rose on hopes further rate cuts by the
Reserve Bank of India would spur demand which is mainly driven by
finance. Videocon Indusries, Blue Star,Titan Industries, Lloyd
Electric and Rajesh Exports rose by between 1.52% to 3.56%.
Cement stocks rose on hopes likely government measures to boost the
infrastructure sector will spurt demand. ACC, Birla Corporation of
India, Ultratech Cement, Ambuja Cements and Grasim Industries rose
by between 1.13% to 6.6%.
Unitech clocked the highest volume of 3.19 crore shares on BSE.
Suzlon Energy (2.46 crore shares), GVK Power & Infrastructure (1.82
crore shares), Housing Development & Infrastructure (1.1 crore
shares) and Jaiprakash Associates (82.64 lakh shares) were the
other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 404.61 crore
on BSE. State Bank of India (Rs 203.61 crore), Educomp Solutions
(Rs 178.33 crore), Reliance Infrastructure (Rs 153.18 crore) and
DLF (Rs 132.49 crore) were the other turnover toppers in that
order.
Haldyn Glass Gujarat spurted 8.51% on increase in the promoters'
stake in the company.
Nava Bharat Ventures jumped 20.28% on share buyback plan.
PVR galloped 4.88% on reports it plans to set up entertainment
centres across the country.
Chinese stocks rose after the government on Wednesday, 3 December
2008, announced measures whereby it will use financial policy to
support the economy. The Shanghai Composite was up 1.84%. But most
Asian shares weakened after earlier gains. Key benchmark indices in
South Korea, Hong Kong, Japan and Taiwan were down by between 0.58%
to 1.58%.
China will make use of required reserves as well as interest rates
and the exchange rate to ensure ample liquidity in the banking
system, the government said on Wednesday. The State Council,
China's cabinet, also approved measures aimed at stabilising the
domestic stock market, boosting bond issuance and increasing the
supply of credit.
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.
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.
Tuesday, November 4, 2008
Post Market Report:04/11/2008
Bank stocks led the rally on the domestic bourses in late trade,
with gains in key overseas equity markets supporting the upmove.
The BSE Sensex jumped 293.44 points or 2.84%. Bank stocks surged on
hopes interest rate cuts would help credit flow more freely. But IT
stocks tumbled on worries outsourcing business will be affected if
Barack Obama wins the US presidential election.
Trading in US index futures suggested the Dow would rise 187 points
at the opening bell. European markets, which opened after Indian
market, extended gains in morning trade led by banks, oils and
pharma stocks, as investors geared up for the long-awaited US
Presidential election day. Key benchmark indices in France, UK and
Germany were up by between 1.74% to 2.12%.
Japan's Nikkei average climbed 6.27% to its highest close in two
weeks on Tuesday, 4 November 2008, as exporters gained on reports
electronics maker Panasonic was planning to take over Sanyo
Electric. But other Asian markets were mixed. Key benchmark indices
in South Korea, China, and Taiwan were down by between 0.05% to
0.76%. Key benchmark indices in Hong Kong and Singapore were up by
between 0.24% to 2.15%.
Australia's All Ordinaries index moved between positive and
negative zone after Australia's central bank cut its benchmark cash
rate by a bigger-than-expected 75 basis points on Tuesday, 4
November 2008, in an increasingly urgent effort to save the economy
from the recession rapidly engulfing much of the developed world.
The BSE 30-share Sensex rose 293.44 points or 2.84% to 10,631.12.
Volatility was high. After an early slide, a sharp recovery was
witnessed in afternoon trade following a solid surge in Japanese
shares and on a rate cut by Australia's central bank. The index
rose 330.80 points at the day's high of 10,668.48 in late trade.
The Sensex declined 221.46 points at day's low of 10,116.22 in
early trade.
The S&P CNX Nifty was up 98.25 points or 3.23% to 3,142.10.
The market has staged a solid rebound after a recent steep fall.
From a low of 8,509.56 on 27 October 2008, the BSE Sensex has risen
2,121.56 points or 24.93% in five trading sessions. There has been
a massive erosion in investors' wealth this year. The barometer
index BSE Sensex is down 9,655.87 points or 47.59% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 10,575.65 points or 49.86% below its all-time high of
21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 4416 crore today, 4 November 2008 as
compared to a turnover of Rs 3,679.49 crore on 3 November 2008.
Nifty November 2008 futures were at 3167, at a premium of 24.90
points as compared to spot closing of 3142.10. NSE's futures &
options (F&O) segment turnover was Rs 33,758.52 crore, which was
lower than Rs 34,113.94 crore on Monday, 3 November 2008.
The BSE Mid-Cap index was up 2.7% at 3,446.12 and the BSE Small-Cap
index was up 2.75% at 4,035.11. Both the indices underperformed the
Sensex.
The BSE Realty index (up 12.14% to 2,402.44), ), the BSE Bankex (up
6.56% to 5,741.04), the BSE Power index (up 5.66% to 1,781.38), the
BSE PSU index (up 4.82% to 5,078.65), BSE FMCG index (up 4.77% to
1,961.19), the BSE Capital Goods index (up 4.61% to 7,942.57), the
BSE Metal index (up 4.13% to 5,854.67), the BSE Oil & Gas index (up
3.09% to 6,749.51) outperformed the Sensex.
The BSE IT index (down 4.33% to 2,749.95), the BSE Teck index (down
0.82% to 2,200.80), the BSE HealthCare index (up 0.75% to
2,879.38), the BSE Consumer Durables index (up 1.01% to 2,125.78),
the BSE Auto index (up 1.67% to 2,791.56), underperformed the
Sensex.
The market breadth was strong. On BSE, 1,809 shares advanced as
compared to 777 that declined. 69 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) came off the lower levels on
reports it is considering options to re-open most of its closed
petrol pumps, helped by an over 50% drop in crude oil prices. The
stock was up 2.01% to Rs 1466, off the day's low of Rs 1,376.
Ranbaxy Laboratories (up 9.88% to Rs 209.15), Jaiprakash Associates
(up 9.82% to Rs 89.45) and Tata Power Company (up 8.32% to Rs
750.95) were the top gainers from the Sensex pack.
India's largest electric equipment maker by sales Bharat Heavy
Electricals (BHEL) rose 5.38% on reports it is planning to triple
export orders to Rs 10300 crore by 2012 in a bid to hedge against
currency fluctuations related to raw material imports.
India's largest copper maker by sales Sterlite Industries fell 2%.
Bank stocks jumped 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 6.5%
extending gains after its chairman O P Bhatt said today 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 1.75% to 11.61%.
A few public sector banks have already announced their decision to
cut rates. Bank of Baroda rose 15.49% on a decision to reduce
lending rates by 75 basis points (bps) with effect from Wednesday 5
November 2008.
However, Indian Bank fell 1.53% after the bank said it will
consider cutting its lending and deposit rates by 50-75 basis
points this week.
India's largest private sector bank by net profit ICICI Bank rose
6.53% as American depository receipt (ADR) spurted 4.18% overnight.
ICICI Bank's chief executive K.V. Kamath said yesterday, 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 3.73% as ADR jumped 4.18% on Monday.
India's largest home loan lender by operating income HDFC jumped
1.31%.
Finance Minister P Chidambaram today said the Reserve Bank of India
(RBI) will keep a close watch on liquidity and state-run banks are
ready to provide credit to the small and medium business sectors.
The finance minister today met the chiefs of state-run banks.
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 rose on hopes lower interest rates will spur
demand for residential properties. Realty majors, Indiabulls Real
Estate and Unitech jumped by between 12.48% to 14.49%. India's
largest real estate major by market capitalization DLF soared
14.66% to after denying reports that suggested its joint venture
with Hilton was in trouble.
IT stocks tumbled on worries that if Barack Obama wins the US
presidential election, the outsourcing business of the country will
be curtailed and the direct impact will be on IT sector. India's
third largest IT exporter by sales Satyam Computer Services fell
7.41%.
India's fourth largest IT exporter by sales Wipro fell 4.8% even as
ADR rose 3.5%. Wipro is reported to be a front-runner to buy Citi
group's technology and infrastructure outsourcing arm, Citi
Technology Services, for about $150 million and is likely to be
announced by the end of the third quarter. India's second largest
IT exporter by sales Infosys slipped 5.47%, as ADR was down 2.7%.
India's largest IT exporter by sales Tata Consultancy Services
slipped 7.38%.
Zylog Systems rose 2.08%, after the company's board approved
acquisition of PEQ Consulting Inc and Fairfax Consulting Inc.
Democrat Obama has strong reservations on outsourcing and has made
many statements during his election speeches that he would
discourage this when he comes into power. The US Presidential
Election will be held later in the day today.
Airline stocks soared on reports of further reduction in jet fuel
prices. Jet Airways, Kingfisher Airlines and SpiceJet rose by
between 3.55% to 6.23%.
Responding to the government's decision to exempt jet fuel from
customs duty three days ago, state-owned refiners have reportedly
reduced the prices of the fuel by 4.5%. Earlier, there were
anticipations that the next revision in aviation turbine fuel (ATF)
prices may happen on 15 November 2008.
PSU OMCs rose on fall in crude oil prices. BPCL, HPCL and Indian
Oil Corporation rose by between 1.43% to 6.86%. Lower oil prices
will reduce underrecoveries at the state-run oil firms on domestic
sale of petrol, diesel, LPG and kerosene at a controlled price.
US sweet crude oil dropped $1.19 to $62.72 a barrel today as
traders continued to worry about the impact of a global economic
slowdown on energy demand.
Cement stocks were mixed on muted dispatches figures for the month
of October 2008. India's largest cement maker by sales ACC fell
1.04% as cement shipments in October 2008 fell 3.4% to 1.70 million
tonnes from 1.76 million tonnes a year earlier. Grasim Industries
rose 2.78% and Ultratech Cement jumped 5.54% after Aditya Birla
Group's cement dispatches in October 2008 rose 1.9% from a year ago
to 2.54 million tonnes. The group includes flagship Grasim
Industries and unit Ultratech Cement, with combined cement
production capacity of 35 million tonnes a year.
Telecom stocks rose on reports government will allocate spectrum
for next generation wireless networks to successful bidders by the
end of January 2009 after holding an auction as planned earlier in
the month. India's largest telecom services provider by market
share Bharti Airtel jumped 4.31% while Reliance Communications,
India's second largest telecom services provider by sales rose
7.67%.
Rice exporters Lakshmi Energy & Foods, KRBL and LT Overseas were up
2.23% to 11.13 % on reports India would include the premium
Pusa-1121 rice under the basmati brand, helping fetch higher
prices.
Mercator Lines jumped 10.74%, on Singapore unit posting 94.4% surge
in net profit to $24.9 million in Q2 September 2008 over Q2
September 2007.
Champagne Indage was locked at the upper limit of 5% on BSE after a
foreign fund bought a large stake in the company.
Suzlon Energy surged 20.57% after the company said it was
negotiating with Portugal-based Martifer for acquiring the latter's
22.48% stake in the German firm REpower.
Siemens rose 11.8% on BSE, on bagging an overseas order.
Epic Energy gained 1.34% on bagging a contract to conduct energy
audit in Arunachal Pradesh.
KEC International surged 10%, on bagging three orders aggregating
Rs 235 crore from three different clients.
Balaji Telefilms slipped 4.84% as the Bombay High Court dismissed
company's petition not to end a long-running daily serial on Star
TV.
Sun Pharmaceutical Industries declined 4.71% on BSE, after its US
unit Caraco Pharmaceutical Industries got a warning letter from the
Food and Drug Administration regarding its Detroit plant.
Suzlon Energy clocked the highest volume of 3.92 crore shares on
BSE. Cals Refineries (2.31 crore shares), Unitech (1.7 crore
shares), Reliance Natural Resources (1.7 crore shares) and GVK
Power & Infrastructure (1.66 crore shares) were the other volume
toppers in that order.
Reliance Industries clocked the highest turnover of Rs 279.78 crore
on BSE. Suzlon Energy (Rs 206.23 crore), State Bank of India (Rs
186.09 crore), Reliance Capital (Rs 184.76 crore) and ICICI Bank
(Rs 151.46 crore) were the other turnover toppers in that order.
with gains in key overseas equity markets supporting the upmove.
The BSE Sensex jumped 293.44 points or 2.84%. Bank stocks surged on
hopes interest rate cuts would help credit flow more freely. But IT
stocks tumbled on worries outsourcing business will be affected if
Barack Obama wins the US presidential election.
Trading in US index futures suggested the Dow would rise 187 points
at the opening bell. European markets, which opened after Indian
market, extended gains in morning trade led by banks, oils and
pharma stocks, as investors geared up for the long-awaited US
Presidential election day. Key benchmark indices in France, UK and
Germany were up by between 1.74% to 2.12%.
Japan's Nikkei average climbed 6.27% to its highest close in two
weeks on Tuesday, 4 November 2008, as exporters gained on reports
electronics maker Panasonic was planning to take over Sanyo
Electric. But other Asian markets were mixed. Key benchmark indices
in South Korea, China, and Taiwan were down by between 0.05% to
0.76%. Key benchmark indices in Hong Kong and Singapore were up by
between 0.24% to 2.15%.
Australia's All Ordinaries index moved between positive and
negative zone after Australia's central bank cut its benchmark cash
rate by a bigger-than-expected 75 basis points on Tuesday, 4
November 2008, in an increasingly urgent effort to save the economy
from the recession rapidly engulfing much of the developed world.
The BSE 30-share Sensex rose 293.44 points or 2.84% to 10,631.12.
Volatility was high. After an early slide, a sharp recovery was
witnessed in afternoon trade following a solid surge in Japanese
shares and on a rate cut by Australia's central bank. The index
rose 330.80 points at the day's high of 10,668.48 in late trade.
The Sensex declined 221.46 points at day's low of 10,116.22 in
early trade.
The S&P CNX Nifty was up 98.25 points or 3.23% to 3,142.10.
The market has staged a solid rebound after a recent steep fall.
From a low of 8,509.56 on 27 October 2008, the BSE Sensex has risen
2,121.56 points or 24.93% in five trading sessions. There has been
a massive erosion in investors' wealth this year. The barometer
index BSE Sensex is down 9,655.87 points or 47.59% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 10,575.65 points or 49.86% below its all-time high of
21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 4416 crore today, 4 November 2008 as
compared to a turnover of Rs 3,679.49 crore on 3 November 2008.
Nifty November 2008 futures were at 3167, at a premium of 24.90
points as compared to spot closing of 3142.10. NSE's futures &
options (F&O) segment turnover was Rs 33,758.52 crore, which was
lower than Rs 34,113.94 crore on Monday, 3 November 2008.
The BSE Mid-Cap index was up 2.7% at 3,446.12 and the BSE Small-Cap
index was up 2.75% at 4,035.11. Both the indices underperformed the
Sensex.
The BSE Realty index (up 12.14% to 2,402.44), ), the BSE Bankex (up
6.56% to 5,741.04), the BSE Power index (up 5.66% to 1,781.38), the
BSE PSU index (up 4.82% to 5,078.65), BSE FMCG index (up 4.77% to
1,961.19), the BSE Capital Goods index (up 4.61% to 7,942.57), the
BSE Metal index (up 4.13% to 5,854.67), the BSE Oil & Gas index (up
3.09% to 6,749.51) outperformed the Sensex.
The BSE IT index (down 4.33% to 2,749.95), the BSE Teck index (down
0.82% to 2,200.80), the BSE HealthCare index (up 0.75% to
2,879.38), the BSE Consumer Durables index (up 1.01% to 2,125.78),
the BSE Auto index (up 1.67% to 2,791.56), underperformed the
Sensex.
The market breadth was strong. On BSE, 1,809 shares advanced as
compared to 777 that declined. 69 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) came off the lower levels on
reports it is considering options to re-open most of its closed
petrol pumps, helped by an over 50% drop in crude oil prices. The
stock was up 2.01% to Rs 1466, off the day's low of Rs 1,376.
Ranbaxy Laboratories (up 9.88% to Rs 209.15), Jaiprakash Associates
(up 9.82% to Rs 89.45) and Tata Power Company (up 8.32% to Rs
750.95) were the top gainers from the Sensex pack.
India's largest electric equipment maker by sales Bharat Heavy
Electricals (BHEL) rose 5.38% on reports it is planning to triple
export orders to Rs 10300 crore by 2012 in a bid to hedge against
currency fluctuations related to raw material imports.
India's largest copper maker by sales Sterlite Industries fell 2%.
Bank stocks jumped 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 6.5%
extending gains after its chairman O P Bhatt said today 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 1.75% to 11.61%.
A few public sector banks have already announced their decision to
cut rates. Bank of Baroda rose 15.49% on a decision to reduce
lending rates by 75 basis points (bps) with effect from Wednesday 5
November 2008.
However, Indian Bank fell 1.53% after the bank said it will
consider cutting its lending and deposit rates by 50-75 basis
points this week.
India's largest private sector bank by net profit ICICI Bank rose
6.53% as American depository receipt (ADR) spurted 4.18% overnight.
ICICI Bank's chief executive K.V. Kamath said yesterday, 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 3.73% as ADR jumped 4.18% on Monday.
India's largest home loan lender by operating income HDFC jumped
1.31%.
Finance Minister P Chidambaram today said the Reserve Bank of India
(RBI) will keep a close watch on liquidity and state-run banks are
ready to provide credit to the small and medium business sectors.
The finance minister today met the chiefs of state-run banks.
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 rose on hopes lower interest rates will spur
demand for residential properties. Realty majors, Indiabulls Real
Estate and Unitech jumped by between 12.48% to 14.49%. India's
largest real estate major by market capitalization DLF soared
14.66% to after denying reports that suggested its joint venture
with Hilton was in trouble.
IT stocks tumbled on worries that if Barack Obama wins the US
presidential election, the outsourcing business of the country will
be curtailed and the direct impact will be on IT sector. India's
third largest IT exporter by sales Satyam Computer Services fell
7.41%.
India's fourth largest IT exporter by sales Wipro fell 4.8% even as
ADR rose 3.5%. Wipro is reported to be a front-runner to buy Citi
group's technology and infrastructure outsourcing arm, Citi
Technology Services, for about $150 million and is likely to be
announced by the end of the third quarter. India's second largest
IT exporter by sales Infosys slipped 5.47%, as ADR was down 2.7%.
India's largest IT exporter by sales Tata Consultancy Services
slipped 7.38%.
Zylog Systems rose 2.08%, after the company's board approved
acquisition of PEQ Consulting Inc and Fairfax Consulting Inc.
Democrat Obama has strong reservations on outsourcing and has made
many statements during his election speeches that he would
discourage this when he comes into power. The US Presidential
Election will be held later in the day today.
Airline stocks soared on reports of further reduction in jet fuel
prices. Jet Airways, Kingfisher Airlines and SpiceJet rose by
between 3.55% to 6.23%.
Responding to the government's decision to exempt jet fuel from
customs duty three days ago, state-owned refiners have reportedly
reduced the prices of the fuel by 4.5%. Earlier, there were
anticipations that the next revision in aviation turbine fuel (ATF)
prices may happen on 15 November 2008.
PSU OMCs rose on fall in crude oil prices. BPCL, HPCL and Indian
Oil Corporation rose by between 1.43% to 6.86%. Lower oil prices
will reduce underrecoveries at the state-run oil firms on domestic
sale of petrol, diesel, LPG and kerosene at a controlled price.
US sweet crude oil dropped $1.19 to $62.72 a barrel today as
traders continued to worry about the impact of a global economic
slowdown on energy demand.
Cement stocks were mixed on muted dispatches figures for the month
of October 2008. India's largest cement maker by sales ACC fell
1.04% as cement shipments in October 2008 fell 3.4% to 1.70 million
tonnes from 1.76 million tonnes a year earlier. Grasim Industries
rose 2.78% and Ultratech Cement jumped 5.54% after Aditya Birla
Group's cement dispatches in October 2008 rose 1.9% from a year ago
to 2.54 million tonnes. The group includes flagship Grasim
Industries and unit Ultratech Cement, with combined cement
production capacity of 35 million tonnes a year.
Telecom stocks rose on reports government will allocate spectrum
for next generation wireless networks to successful bidders by the
end of January 2009 after holding an auction as planned earlier in
the month. India's largest telecom services provider by market
share Bharti Airtel jumped 4.31% while Reliance Communications,
India's second largest telecom services provider by sales rose
7.67%.
Rice exporters Lakshmi Energy & Foods, KRBL and LT Overseas were up
2.23% to 11.13 % on reports India would include the premium
Pusa-1121 rice under the basmati brand, helping fetch higher
prices.
Mercator Lines jumped 10.74%, on Singapore unit posting 94.4% surge
in net profit to $24.9 million in Q2 September 2008 over Q2
September 2007.
Champagne Indage was locked at the upper limit of 5% on BSE after a
foreign fund bought a large stake in the company.
Suzlon Energy surged 20.57% after the company said it was
negotiating with Portugal-based Martifer for acquiring the latter's
22.48% stake in the German firm REpower.
Siemens rose 11.8% on BSE, on bagging an overseas order.
Epic Energy gained 1.34% on bagging a contract to conduct energy
audit in Arunachal Pradesh.
KEC International surged 10%, on bagging three orders aggregating
Rs 235 crore from three different clients.
Balaji Telefilms slipped 4.84% as the Bombay High Court dismissed
company's petition not to end a long-running daily serial on Star
TV.
Sun Pharmaceutical Industries declined 4.71% on BSE, after its US
unit Caraco Pharmaceutical Industries got a warning letter from the
Food and Drug Administration regarding its Detroit plant.
Suzlon Energy clocked the highest volume of 3.92 crore shares on
BSE. Cals Refineries (2.31 crore shares), Unitech (1.7 crore
shares), Reliance Natural Resources (1.7 crore shares) and GVK
Power & Infrastructure (1.66 crore shares) were the other volume
toppers in that order.
Reliance Industries clocked the highest turnover of Rs 279.78 crore
on BSE. Suzlon Energy (Rs 206.23 crore), State Bank of India (Rs
186.09 crore), Reliance Capital (Rs 184.76 crore) and ICICI Bank
(Rs 151.46 crore) were the other turnover toppers in that order.
Friday, October 31, 2008
Post Market Report:31/10/2008
A steep rate cut by the US Federal Reserve, decline in inflation
for the fifth successive week and market buzz the government is
considering more measures to pump in liquidity in the financial
system, triggered a solid surge on the bourses. The BSE Sensex
jumped 743.55 points or 8.22%.
After a strong rally in mid-morning trade, the market came off the
higher level on weak opening of the European markets only to bounce
back again in late trade. Bank stocks spurted on fall in inflation.
IT stocks jumped on rise in American depository receipts (ADR)
overnight. The market breadth was strong indicating a broad-based
buying.
The wholesale price index (WPI)-based year-on-year inflation
dropped to 10.68% in the week ended 18 October from 11.07% in the
previous week. Following the steady decline in headline inflation,
economists expect inflation to enter single digit domain by
end-November 2008.
Global markets had rallied on Thursday, 30 October 2008, after the
US Federal Reserve cut its main policy rate to 1% on Wednesday, 29
October 2008, to stave off the credit crunch. The Indian market was
closed on Thursday on for a public holiday and therefore it reacted
to the global rally today.
The BSE 30-share Sensex was up 743.55 points or 8.22% to 9,788.06.
The index jumped 825.91 points at the day's high of 9.870.42 in
late trade. The Sensex rose 317.15 points at day's low of 9,361.66
in early trade.
The S&P CNX Nifty was up 188.55 points or 6.99% to 2,885.60.
There has been a massive erosion in investors' wealth this year.
The barometer index BSE Sensex is down 10.498.93 points or 51.75%
in the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11,418.71 points or 53.84% below its all-time
high of 21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 3,699 crore today, 31 October 2008 as
compared to a turnover of Rs 3,104.10 on 29 October 2008.
Nifty November 2008 futures were at 2915, at a premium of 29.40
points as compared to spot closing of 2885.60. NSE's futures &
options (F&O) segment turnover was Rs 36,959.23 crore, which was
lower than Rs 54,223.24 crore on Wednesday, 29 October 2008.
The BSE Mid-Cap index was up 3.41% at 3,200.02 and the BSE
Small-Cap index was up 2.46% at 3,765.11. Both the indices
underperformed the Sensex.
The BSE Metal index (up 10.2% to 5,367.60), the BSE Oil & Gas index
(up 9.11% to 6,195.62) outperformed the Sensex.
The BSE Bankex (up 7.21% to 5,011.24), the BSE Teck index (up 6.6%
to 2,161.45),the BSE Auto index (up 6.39% to 2,685.62), the BSE IT
index (up 5.77% to 2,861.94), the BSE Power index (up 5.54% to
1,583.37), the BSE Capital Goods index (up 5% to 7,017.61), the BSE
FMCG index (up 3.32% to 1,799.83), the BSE HealthCare index (up
3.23% to 2,778.64), the BSE PSU index (up 2.74% to 4,564.92), the
BSE Realty index (up 2.3% to 1,978.24) and the BSE Consumer
Durables index (up 2.25% to 2,072.98) underperformed the Sensex.
The market breadth was strong. On BSE, 1577 shares advanced as
compared to 916 that declined. 82 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) surged 13.81% to Rs 1,37.75,
after the petroleum ministry said the $4.20 per metric million
British thermal units (mmBtu) price fixed by an empowered group of
ministers for gas from Reliance Industries' KG-D6 was only for the
purpose of valuation of government share and the selling price
could be higher.
Jaiprakash Associates (up 16.55% to Rs 71.85) and Tata Power
Company (up 11.86% to Rs 689.65) were from the major gainers from
the Sensex pack.
India's largest drug maker by sales Ranbaxy Laboratories fell 1.97%
to Rs 169.45, off day's high of Rs 200. The company reported a net
loss of Rs 352.93 crore in Q3 September 2008 compared to a net
profit of Rs 168.15 crore in Q3 September 2007. It announced the
result after the market hours today.
Telecom stocks rose after mixed Q2 results. India's largest telecom
service provider by sales Reliance Communications jumped 13.76% as
net profit on consolidated basis, rose 17.33% to Rs 1530.78 crore
on 23.29% rise in total income to Rs 5645 crore in Q2 September
2008 over Q2 September 2007.
India's largest telecom service provider by market share Bharti
Airtel rose 5.52% despite a 0.9% fall in net profit to Rs 1604.78
crore on 35.6% rise in total income to Rs 8302.8 crore in Q2
September 2008 over Q2 September 2007.
India's largest real estate major by market capitalization DLF
gained 8.79% ahead of Q2 September 2008 result today.
Metal stocks shrugged off fall in metal prices on the London Metal
Exchange yesterday, 30 October 2008 triggered by fears of fall in
demand as the US economy shrank at a 0.3% annual rate in the third
quarter, its sharpest contraction in seven years. Tata Steel,
Hindustan Zinc, Sterlite Indusries rose by between 0.13% to 14.48%.
India's second largest steel maker by sales Steel Authority of
India fell 0.18%.
India's largest aluminum maker by sales Hindalco Industries jumped
13.26% as net profit rose 13.26% to Rs 719.95 crore on 15.42% rise
in total income to Rs 5,859.95 crore in Q2 September 2008 over Q2
September 2007. State-run aluminium major National Aluminium
Company (Nalco) jumped 7.43% after net profit rose 1.07% to Rs
444.46 crore on 12.3% growth in total income to Rs 1654.50 crore in
Q2 September 2008 over Q2 September 2007.
Banking stocks jumped as the fifth successive week of decline in
inflation has given more room for the central bank to cut rates.
The BSE's banking sector index Bankex rose 7.21% and was the third
biggest gainer form the sectoral indices on BSE. India's largest
private sector bank by net profit ICICI Bank jumped 15.5% as ADR
spurted 13.64% overnight. India's largest commercial bank State
Bank of India rose 0.79%.
India's second largest private sector bank by net profit HDFC Bank
gained 8.29% to Rs 981 off day's high of Rs 1,059, as ADR soared
11.38% overnight.
ICICI Bank, State Bank of India and HDFC Bank have a weightage of
24.21%, 22.44% and 20.55%, respectively in the BSE Bankex.
Punjab National Bank rose 4.56% on 31.3% rise in net profit to Rs
707.09 crore on 35.1% rise in total income to Rs 5313.18 crore in
Q2 September 2008 over Q2 September 2007.
Kotak Mahindra Bank rose 3.1% even as net profit fell 36.50% to Rs
47.86 crore in Q2 September 2008 over Q2 September 2007.
India's largest home loan lender by sales HDFC rose 17.48%.
There is speculation and anticipation in the market that the
Reserve Bank of India may cut cash reserve ratio (CRR) -- the cash
deposits that banks are required to keep with the central bank -- by
one percentage point from the existing 6.5% to 5.5%.
IT stocks gained as rally in ADRs offset a stronger rupee. India's
third largest IT exporter by sales Satyam Computer Services rose
7.61%, as ADR rose 7.61%. India's fourth largest IT exporter by
sales Wipro rose 6.16%, as ADR jumped 7.78%. India's second largest
IT exporter by sales Infosys gained 6.06%, as ADR jumped 4.98%.
India's largest IT exporter by sales Tata Consultancy Services fell
0.93%.
The Indian rupee crept higher in opening deals on Friday on
expectations the local stock market will rise and help revive
investor appetite. The partially convertible rupee was at 49.50 per
dollar, 0.4% stronger than Wednesday's close of 49.69/70 per
dollar. A stronger rupee affects IT firms negatively as they earn
most of their revenues in dollar terms.
PSU OMCs fell as weak results by BPCL and Indian Oil Corporation
offset fall of crude oil prices. Bharat Petroleum Corporation
declined 7.12% after the company reported a net loss of Rs 2625.27
crore in Q2 September 2008 as compared to net profit of Rs 1038.16
crore in Q2 September 2007.
Indian Oil Corporation declined 3.05% after the company reported a
net loss of Rs 7047.13 crore in Q2 September 2008 as compared to
net profit of Rs 3817.75 crore in Q2 September 2007.
US crude oil futures by more than $2 a barrel to below $64 a barrel
on Friday after bearish U.S. economic data rekindled worries about
falling demand. Lower oil prices will reduce underrecoveries at the
state-run oil firms on domestic sale of petrol, diesel, LPG and
kerosene at a controlled price., diesel, LPG and kerosene at a
controlled price.
India's largest oil exploration firm by revenue ONGC rose 3.04%
despite a 5.7% fall in net profit to Rs 4808 crore in Q2 September
2008 over Q2 September 2007 caused by a steep rise in the subsidy
burden.
Cairn India galloped 10.85% after the company reported a net profit
of Rs 81.44 crore in Q3 September 2008 as compared to net loss of
Rs 8.39 crore in Q3 September 2007.
Aban Offshore jumped 13.2% as net profit surged 72.3% to Rs 81.34
crore in Q2 September 2008 over Q2 September 2007.
Essar Oil surged 11.1% on posting a net profit of Rs 26 crore in Q2
September 2008 compared to a net loss of Rs 14 crore in Q2
September 2007.
Cement stocks rose despite south based India Cements posting weak
results. India Cements surged 15.83% even as net profit fell 39.69%
to Rs 134.27 crore on 23% rise in total income to Rs 1096.59 crore
in Q2 September 2008 over Q2 September 2007. ACC, Ultratech
Cements, Grasim Industries and Birla Corporation rose by between
0.21% to 5.49%.
Rate sensitive auto stocks jumped on hopes lower interest rates.
Maruti Suzuki India, Mahindra & Mahindra gained by between 4% to
23.09%. However, India's largest motorbike maker by sales Hero
Honda Motors fell 1.42%. Lower interest rates may spur auto sales
which are largely driven through finance.
India's largest commercial vehicle maker by sales Tata motors rose
9.11% on a lower-than-expected 34.13% fall in net profit to Rs
346.99 crore in Q2 September 2008 over Q2 September 2007.
Realty stocks were mixed amid a capital crunch being faced by
realty firms. Indiabulls Real Estate and Unitech fell by between
3.27% to 3.71%. India's largest real estate major by market
capitalization DLF gained 8.79% ahead of Q2 September2008 result
today.
IVRCL Infrastructure & Projects surged 6.68% as net profit rose
61.98% to Rs 57.10 crore in Q2 September 2008 over Q2 September
2007.
Suzlon Energy fell 3.79% on reports of initiating talks with
private equity firms for sale of shares to raise funds
EID Parry India gained 4.43% after the company reported net profit
of Rs 611.89 crore in Q2 September 2008 as compared to a net loss
of Rs 5.74 crore in Q2 September 2007.
Rashtriya Chemicals & Fertilizers moved up 3.26% as net profit
surged 116.6% to Rs 84.37 crore in Q2 September 2008 over Q2
September 2007.
Tata Chemicals surged 18.1% as net profit jumped 51.39% to Rs
215.80 crore in Q2 September 2008 over Q2 September 2007.
MMTC rose 1.45% as net profit rose 24.98% to Rs 46.78 crore on
110.92% rise in total income to Rs 12497.23 crore in Q2 September
2008 over Q2 September 2007.
Kirloskar Electric Company rose 4.16% after the company decided to
set up a manufacturing unit for AC motors and AC generators.
Suzlon Energy clocked the highest volume of 1.68 crore shares on
BSE. Hindalco Industries (1.34 crore shares), Reliance Petroleum (1
crore shares), Unitech (84.98 lakh shares) and Core Projects &
Infrastructure (81.36 lakh shares) were the other volume toppers in
that order.
Reliance Industries clocked the highest turnover of Rs 435.8o crore
on BSE. Reliance Capital (Rs 186.92 crore), ICICI Bank (Rs 170.56
crore), State Bank of India (Rs 148.38 crore) and Reliance
Communications (Rs 135.56 crore) were the other turnover toppers in
that order.
European stocks fell as on concerns about the global economy
weighed on investors. Key benchmark indices in France, Germany and
UK were down by between 0.16% to 2.18%.
Japan's Nikkei average dropped 5% after a lower-than-expected 20
basis points cut in interest rate announced by Bank of Japan today,
31 October 2008. While Japanese stocks tumbled, other Asian stocks
were trading mixed. Key benchmark indices in China, Singapore and
Hong Kong, fell by between 0.66% to 3.09%. However, South Korea and
Taiwan rose by between 2.61% to 3.99%.
China cut rates on Wednesday, 29 October 2008 with Taiwan and Hong
Kong following up with rate cuts on Thursday.
for the fifth successive week and market buzz the government is
considering more measures to pump in liquidity in the financial
system, triggered a solid surge on the bourses. The BSE Sensex
jumped 743.55 points or 8.22%.
After a strong rally in mid-morning trade, the market came off the
higher level on weak opening of the European markets only to bounce
back again in late trade. Bank stocks spurted on fall in inflation.
IT stocks jumped on rise in American depository receipts (ADR)
overnight. The market breadth was strong indicating a broad-based
buying.
The wholesale price index (WPI)-based year-on-year inflation
dropped to 10.68% in the week ended 18 October from 11.07% in the
previous week. Following the steady decline in headline inflation,
economists expect inflation to enter single digit domain by
end-November 2008.
Global markets had rallied on Thursday, 30 October 2008, after the
US Federal Reserve cut its main policy rate to 1% on Wednesday, 29
October 2008, to stave off the credit crunch. The Indian market was
closed on Thursday on for a public holiday and therefore it reacted
to the global rally today.
The BSE 30-share Sensex was up 743.55 points or 8.22% to 9,788.06.
The index jumped 825.91 points at the day's high of 9.870.42 in
late trade. The Sensex rose 317.15 points at day's low of 9,361.66
in early trade.
The S&P CNX Nifty was up 188.55 points or 6.99% to 2,885.60.
There has been a massive erosion in investors' wealth this year.
The barometer index BSE Sensex is down 10.498.93 points or 51.75%
in the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11,418.71 points or 53.84% below its all-time
high of 21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 3,699 crore today, 31 October 2008 as
compared to a turnover of Rs 3,104.10 on 29 October 2008.
Nifty November 2008 futures were at 2915, at a premium of 29.40
points as compared to spot closing of 2885.60. NSE's futures &
options (F&O) segment turnover was Rs 36,959.23 crore, which was
lower than Rs 54,223.24 crore on Wednesday, 29 October 2008.
The BSE Mid-Cap index was up 3.41% at 3,200.02 and the BSE
Small-Cap index was up 2.46% at 3,765.11. Both the indices
underperformed the Sensex.
The BSE Metal index (up 10.2% to 5,367.60), the BSE Oil & Gas index
(up 9.11% to 6,195.62) outperformed the Sensex.
The BSE Bankex (up 7.21% to 5,011.24), the BSE Teck index (up 6.6%
to 2,161.45),the BSE Auto index (up 6.39% to 2,685.62), the BSE IT
index (up 5.77% to 2,861.94), the BSE Power index (up 5.54% to
1,583.37), the BSE Capital Goods index (up 5% to 7,017.61), the BSE
FMCG index (up 3.32% to 1,799.83), the BSE HealthCare index (up
3.23% to 2,778.64), the BSE PSU index (up 2.74% to 4,564.92), the
BSE Realty index (up 2.3% to 1,978.24) and the BSE Consumer
Durables index (up 2.25% to 2,072.98) underperformed the Sensex.
The market breadth was strong. On BSE, 1577 shares advanced as
compared to 916 that declined. 82 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) surged 13.81% to Rs 1,37.75,
after the petroleum ministry said the $4.20 per metric million
British thermal units (mmBtu) price fixed by an empowered group of
ministers for gas from Reliance Industries' KG-D6 was only for the
purpose of valuation of government share and the selling price
could be higher.
Jaiprakash Associates (up 16.55% to Rs 71.85) and Tata Power
Company (up 11.86% to Rs 689.65) were from the major gainers from
the Sensex pack.
India's largest drug maker by sales Ranbaxy Laboratories fell 1.97%
to Rs 169.45, off day's high of Rs 200. The company reported a net
loss of Rs 352.93 crore in Q3 September 2008 compared to a net
profit of Rs 168.15 crore in Q3 September 2007. It announced the
result after the market hours today.
Telecom stocks rose after mixed Q2 results. India's largest telecom
service provider by sales Reliance Communications jumped 13.76% as
net profit on consolidated basis, rose 17.33% to Rs 1530.78 crore
on 23.29% rise in total income to Rs 5645 crore in Q2 September
2008 over Q2 September 2007.
India's largest telecom service provider by market share Bharti
Airtel rose 5.52% despite a 0.9% fall in net profit to Rs 1604.78
crore on 35.6% rise in total income to Rs 8302.8 crore in Q2
September 2008 over Q2 September 2007.
India's largest real estate major by market capitalization DLF
gained 8.79% ahead of Q2 September 2008 result today.
Metal stocks shrugged off fall in metal prices on the London Metal
Exchange yesterday, 30 October 2008 triggered by fears of fall in
demand as the US economy shrank at a 0.3% annual rate in the third
quarter, its sharpest contraction in seven years. Tata Steel,
Hindustan Zinc, Sterlite Indusries rose by between 0.13% to 14.48%.
India's second largest steel maker by sales Steel Authority of
India fell 0.18%.
India's largest aluminum maker by sales Hindalco Industries jumped
13.26% as net profit rose 13.26% to Rs 719.95 crore on 15.42% rise
in total income to Rs 5,859.95 crore in Q2 September 2008 over Q2
September 2007. State-run aluminium major National Aluminium
Company (Nalco) jumped 7.43% after net profit rose 1.07% to Rs
444.46 crore on 12.3% growth in total income to Rs 1654.50 crore in
Q2 September 2008 over Q2 September 2007.
Banking stocks jumped as the fifth successive week of decline in
inflation has given more room for the central bank to cut rates.
The BSE's banking sector index Bankex rose 7.21% and was the third
biggest gainer form the sectoral indices on BSE. India's largest
private sector bank by net profit ICICI Bank jumped 15.5% as ADR
spurted 13.64% overnight. India's largest commercial bank State
Bank of India rose 0.79%.
India's second largest private sector bank by net profit HDFC Bank
gained 8.29% to Rs 981 off day's high of Rs 1,059, as ADR soared
11.38% overnight.
ICICI Bank, State Bank of India and HDFC Bank have a weightage of
24.21%, 22.44% and 20.55%, respectively in the BSE Bankex.
Punjab National Bank rose 4.56% on 31.3% rise in net profit to Rs
707.09 crore on 35.1% rise in total income to Rs 5313.18 crore in
Q2 September 2008 over Q2 September 2007.
Kotak Mahindra Bank rose 3.1% even as net profit fell 36.50% to Rs
47.86 crore in Q2 September 2008 over Q2 September 2007.
India's largest home loan lender by sales HDFC rose 17.48%.
There is speculation and anticipation in the market that the
Reserve Bank of India may cut cash reserve ratio (CRR) -- the cash
deposits that banks are required to keep with the central bank -- by
one percentage point from the existing 6.5% to 5.5%.
IT stocks gained as rally in ADRs offset a stronger rupee. India's
third largest IT exporter by sales Satyam Computer Services rose
7.61%, as ADR rose 7.61%. India's fourth largest IT exporter by
sales Wipro rose 6.16%, as ADR jumped 7.78%. India's second largest
IT exporter by sales Infosys gained 6.06%, as ADR jumped 4.98%.
India's largest IT exporter by sales Tata Consultancy Services fell
0.93%.
The Indian rupee crept higher in opening deals on Friday on
expectations the local stock market will rise and help revive
investor appetite. The partially convertible rupee was at 49.50 per
dollar, 0.4% stronger than Wednesday's close of 49.69/70 per
dollar. A stronger rupee affects IT firms negatively as they earn
most of their revenues in dollar terms.
PSU OMCs fell as weak results by BPCL and Indian Oil Corporation
offset fall of crude oil prices. Bharat Petroleum Corporation
declined 7.12% after the company reported a net loss of Rs 2625.27
crore in Q2 September 2008 as compared to net profit of Rs 1038.16
crore in Q2 September 2007.
Indian Oil Corporation declined 3.05% after the company reported a
net loss of Rs 7047.13 crore in Q2 September 2008 as compared to
net profit of Rs 3817.75 crore in Q2 September 2007.
US crude oil futures by more than $2 a barrel to below $64 a barrel
on Friday after bearish U.S. economic data rekindled worries about
falling demand. Lower oil prices will reduce underrecoveries at the
state-run oil firms on domestic sale of petrol, diesel, LPG and
kerosene at a controlled price., diesel, LPG and kerosene at a
controlled price.
India's largest oil exploration firm by revenue ONGC rose 3.04%
despite a 5.7% fall in net profit to Rs 4808 crore in Q2 September
2008 over Q2 September 2007 caused by a steep rise in the subsidy
burden.
Cairn India galloped 10.85% after the company reported a net profit
of Rs 81.44 crore in Q3 September 2008 as compared to net loss of
Rs 8.39 crore in Q3 September 2007.
Aban Offshore jumped 13.2% as net profit surged 72.3% to Rs 81.34
crore in Q2 September 2008 over Q2 September 2007.
Essar Oil surged 11.1% on posting a net profit of Rs 26 crore in Q2
September 2008 compared to a net loss of Rs 14 crore in Q2
September 2007.
Cement stocks rose despite south based India Cements posting weak
results. India Cements surged 15.83% even as net profit fell 39.69%
to Rs 134.27 crore on 23% rise in total income to Rs 1096.59 crore
in Q2 September 2008 over Q2 September 2007. ACC, Ultratech
Cements, Grasim Industries and Birla Corporation rose by between
0.21% to 5.49%.
Rate sensitive auto stocks jumped on hopes lower interest rates.
Maruti Suzuki India, Mahindra & Mahindra gained by between 4% to
23.09%. However, India's largest motorbike maker by sales Hero
Honda Motors fell 1.42%. Lower interest rates may spur auto sales
which are largely driven through finance.
India's largest commercial vehicle maker by sales Tata motors rose
9.11% on a lower-than-expected 34.13% fall in net profit to Rs
346.99 crore in Q2 September 2008 over Q2 September 2007.
Realty stocks were mixed amid a capital crunch being faced by
realty firms. Indiabulls Real Estate and Unitech fell by between
3.27% to 3.71%. India's largest real estate major by market
capitalization DLF gained 8.79% ahead of Q2 September2008 result
today.
IVRCL Infrastructure & Projects surged 6.68% as net profit rose
61.98% to Rs 57.10 crore in Q2 September 2008 over Q2 September
2007.
Suzlon Energy fell 3.79% on reports of initiating talks with
private equity firms for sale of shares to raise funds
EID Parry India gained 4.43% after the company reported net profit
of Rs 611.89 crore in Q2 September 2008 as compared to a net loss
of Rs 5.74 crore in Q2 September 2007.
Rashtriya Chemicals & Fertilizers moved up 3.26% as net profit
surged 116.6% to Rs 84.37 crore in Q2 September 2008 over Q2
September 2007.
Tata Chemicals surged 18.1% as net profit jumped 51.39% to Rs
215.80 crore in Q2 September 2008 over Q2 September 2007.
MMTC rose 1.45% as net profit rose 24.98% to Rs 46.78 crore on
110.92% rise in total income to Rs 12497.23 crore in Q2 September
2008 over Q2 September 2007.
Kirloskar Electric Company rose 4.16% after the company decided to
set up a manufacturing unit for AC motors and AC generators.
Suzlon Energy clocked the highest volume of 1.68 crore shares on
BSE. Hindalco Industries (1.34 crore shares), Reliance Petroleum (1
crore shares), Unitech (84.98 lakh shares) and Core Projects &
Infrastructure (81.36 lakh shares) were the other volume toppers in
that order.
Reliance Industries clocked the highest turnover of Rs 435.8o crore
on BSE. Reliance Capital (Rs 186.92 crore), ICICI Bank (Rs 170.56
crore), State Bank of India (Rs 148.38 crore) and Reliance
Communications (Rs 135.56 crore) were the other turnover toppers in
that order.
European stocks fell as on concerns about the global economy
weighed on investors. Key benchmark indices in France, Germany and
UK were down by between 0.16% to 2.18%.
Japan's Nikkei average dropped 5% after a lower-than-expected 20
basis points cut in interest rate announced by Bank of Japan today,
31 October 2008. While Japanese stocks tumbled, other Asian stocks
were trading mixed. Key benchmark indices in China, Singapore and
Hong Kong, fell by between 0.66% to 3.09%. However, South Korea and
Taiwan rose by between 2.61% to 3.99%.
China cut rates on Wednesday, 29 October 2008 with Taiwan and Hong
Kong following up with rate cuts on Thursday.
Wednesday, October 29, 2008
Post Market Report:29/10/2008
Volatility was the order of the day ahead of the expiry of the near
month October 2008 derivatives contracts. The market swung between
positive and negative negative zone throughout the day with Sensex
provisionally gaining 55.85 points or 0.62%. Gains in some Asian
and European marekts supported domestic bourses.
Reliance Communications slumped 10.59% wheeras Hindalco Industries
surged 18.24% ahead of their Q2 results due on Friday, 31 October
2008. The market breadth was weak, reflecting caution among
investors after a recent setback in share prices.
Major Asian markets rose on hopes the Bank of Japan and the Federal
Reserve will cut interest rates this week to spur growth, and as
credit markets continued to show signs of recovery. Key benchmark
indices in Japan and Taiwan were up by between 0.15% to 7.74%.
However, Key benchmark indices in China, Hong Kong, Singapore and
South Korea were down between 0.97% to 3.02%.
Key European markets also rose on Fed rate cut expectations. Key
benchmark indices in France and UK were up by between 3.93% to
6.24%. However, Germany's DAX fell 2.74%. The Fed is seen cutting
interest rates at a two-day policy meet that concludes today, 29
October 2008.
As per the provisional figures, the BSE 30-share Sensex was up
55.85 points or 0.62% to 9.063.93. The Sensex jumped 289.68 points
at the day's high of 9.297.76 in early trade. After a firm opening,
the market dipped in red for a while only to regain the positive
terrain. The Sensex fell 113.74 points at day's low of 8,894.34 in
mid-morning trade.
The S&P CNX Nifty was up 24.25 points or 0.9% to 2,708.85 as per
the provisional figures.
Most of the derivatives positions are normally rolled over at the
time of expiry of near month contracts. This is done by closing the
derivative position for the near month and taking a similar
position in the subsequent's month's series.
The BSE clocked a turnover of Rs 3,091 crore today, 29 October 2008
compared to a turnover of Rs 3388.65 on Monday, 27 October 2008.
The BSE Mid-Cap index was down 1.73% at 3,102.73. The BSE Small-Cap
index was down 0.72% at 3,684.80. Both the indices underperformed
the Sensex.
The market breadth was weak. On BSE, 1121 shares advanced as
compared to 1302 that declined. 74 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) jumped 5.65% to Rs 1,218 on
shutting down polypropylene plant at the Jamnagar refinery complex
with the objective of improving product swing capability and
increasing propylene yield. The shutdown is expected to last for
approximately four weeks.
ACC (up 8.8% to Rs 482), Tata Power Company (up 5.25% to Rs 622),
Jaiprakash Associates (up 3.27% to Rs 61.60), were the major
gainers from the Sensex pack.
India's largest oil exploration firm by revenue ONGC rose 1.49%
ahead of Q2 September 2008 result to be announced today.
DLF (down 8.16% to Rs 19.90), Ranbaxy Laboratories (down 5.59% to
Rs 180.55), Hindustan Unilever (down 4.83% to Rs 208) were the
major losers from the Sensex pack.
Reliance Communications slumped 10.59% ahead of its Q2 results due
on Friday, 31 October 2008.
Auto stocks rose after Mahindra & Mahindra (M&M), India's largest
tractor maker by sales, said the demand for its products remains
healthy despite fears of a global recession. M&M rose 7.35%,
despite 20.6% fall in net profit to Rs 226.77 crore on 13.25% rise
in total income to Rs 3252.26 crore in Q2 September 2008 over Q2
September 2007. Maruti Suzuki India, Hero Honda Motors, Tata Motors
rose by between 0.15% to 5.28%.
Metal stocks rose on rebound in metal prices triggered by strong
rally in global stocks. The BSE Metal index gained 7.73% and was
the biggest gainer from the sectoral indices on BSE. Tata Steel,
Sterlite Industries, Hindustan Zinc rose between 2.49% to 15.13%.
India's largest aluminum maker by sales Hindalco Industries surged
18.24% ahead of Q2 September 2008 result due on riday 31 October
2008.
India's second largest aluminum producer by sales National Aluminum
Company dipped 1.85%, ahead of Q2 September 2008 result to be
announced today.
Banking stocks were mixed despite overnight spurt in American
depository receipts (ADRs). India's second largest private sector
bank by net profit HDFC Bank fell 1.98%. HDFC Bank ADR ended up
16.17%. India's largest private sector bank by net profit ICICI
Bank gained 3.19%, as ADR rose 18.96%. India's largest commercial
bank State Bank of India slipped 2.01%.
IT stocks were mixed as a strong rupee offset rally in ADRs.
India's third largest IT exporter by sales Satyam Computer Services
fell 5.44%, even as ADR rose 16.83%, India's fourth largest IT
exporter by sales Wipro rose 7.33%, as ADR jumped 22.84%. India's
second largest IT exporter by sales Infosys gained 1.82%, as ADR
jumped 15.55%. India's largest IT exporter by sales Tata
Consultancy Services jumped 0.37%.
Oracle Financial Services Software galloped 11.76% on winning an
overseas order.
India's rupee rose for a second day as local stocks extended their
best gains in two weeks made yesterday on optimism measures by
governments worldwide will ease the global credit crunch. The rupee
rose 0.1 % to 49.8325 per dollar from 49.8575 on 27 October.
Tata Tea lost 2.61% on reports it may cut tea prices.
month October 2008 derivatives contracts. The market swung between
positive and negative negative zone throughout the day with Sensex
provisionally gaining 55.85 points or 0.62%. Gains in some Asian
and European marekts supported domestic bourses.
Reliance Communications slumped 10.59% wheeras Hindalco Industries
surged 18.24% ahead of their Q2 results due on Friday, 31 October
2008. The market breadth was weak, reflecting caution among
investors after a recent setback in share prices.
Major Asian markets rose on hopes the Bank of Japan and the Federal
Reserve will cut interest rates this week to spur growth, and as
credit markets continued to show signs of recovery. Key benchmark
indices in Japan and Taiwan were up by between 0.15% to 7.74%.
However, Key benchmark indices in China, Hong Kong, Singapore and
South Korea were down between 0.97% to 3.02%.
Key European markets also rose on Fed rate cut expectations. Key
benchmark indices in France and UK were up by between 3.93% to
6.24%. However, Germany's DAX fell 2.74%. The Fed is seen cutting
interest rates at a two-day policy meet that concludes today, 29
October 2008.
As per the provisional figures, the BSE 30-share Sensex was up
55.85 points or 0.62% to 9.063.93. The Sensex jumped 289.68 points
at the day's high of 9.297.76 in early trade. After a firm opening,
the market dipped in red for a while only to regain the positive
terrain. The Sensex fell 113.74 points at day's low of 8,894.34 in
mid-morning trade.
The S&P CNX Nifty was up 24.25 points or 0.9% to 2,708.85 as per
the provisional figures.
Most of the derivatives positions are normally rolled over at the
time of expiry of near month contracts. This is done by closing the
derivative position for the near month and taking a similar
position in the subsequent's month's series.
The BSE clocked a turnover of Rs 3,091 crore today, 29 October 2008
compared to a turnover of Rs 3388.65 on Monday, 27 October 2008.
The BSE Mid-Cap index was down 1.73% at 3,102.73. The BSE Small-Cap
index was down 0.72% at 3,684.80. Both the indices underperformed
the Sensex.
The market breadth was weak. On BSE, 1121 shares advanced as
compared to 1302 that declined. 74 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) jumped 5.65% to Rs 1,218 on
shutting down polypropylene plant at the Jamnagar refinery complex
with the objective of improving product swing capability and
increasing propylene yield. The shutdown is expected to last for
approximately four weeks.
ACC (up 8.8% to Rs 482), Tata Power Company (up 5.25% to Rs 622),
Jaiprakash Associates (up 3.27% to Rs 61.60), were the major
gainers from the Sensex pack.
India's largest oil exploration firm by revenue ONGC rose 1.49%
ahead of Q2 September 2008 result to be announced today.
DLF (down 8.16% to Rs 19.90), Ranbaxy Laboratories (down 5.59% to
Rs 180.55), Hindustan Unilever (down 4.83% to Rs 208) were the
major losers from the Sensex pack.
Reliance Communications slumped 10.59% ahead of its Q2 results due
on Friday, 31 October 2008.
Auto stocks rose after Mahindra & Mahindra (M&M), India's largest
tractor maker by sales, said the demand for its products remains
healthy despite fears of a global recession. M&M rose 7.35%,
despite 20.6% fall in net profit to Rs 226.77 crore on 13.25% rise
in total income to Rs 3252.26 crore in Q2 September 2008 over Q2
September 2007. Maruti Suzuki India, Hero Honda Motors, Tata Motors
rose by between 0.15% to 5.28%.
Metal stocks rose on rebound in metal prices triggered by strong
rally in global stocks. The BSE Metal index gained 7.73% and was
the biggest gainer from the sectoral indices on BSE. Tata Steel,
Sterlite Industries, Hindustan Zinc rose between 2.49% to 15.13%.
India's largest aluminum maker by sales Hindalco Industries surged
18.24% ahead of Q2 September 2008 result due on riday 31 October
2008.
India's second largest aluminum producer by sales National Aluminum
Company dipped 1.85%, ahead of Q2 September 2008 result to be
announced today.
Banking stocks were mixed despite overnight spurt in American
depository receipts (ADRs). India's second largest private sector
bank by net profit HDFC Bank fell 1.98%. HDFC Bank ADR ended up
16.17%. India's largest private sector bank by net profit ICICI
Bank gained 3.19%, as ADR rose 18.96%. India's largest commercial
bank State Bank of India slipped 2.01%.
IT stocks were mixed as a strong rupee offset rally in ADRs.
India's third largest IT exporter by sales Satyam Computer Services
fell 5.44%, even as ADR rose 16.83%, India's fourth largest IT
exporter by sales Wipro rose 7.33%, as ADR jumped 22.84%. India's
second largest IT exporter by sales Infosys gained 1.82%, as ADR
jumped 15.55%. India's largest IT exporter by sales Tata
Consultancy Services jumped 0.37%.
Oracle Financial Services Software galloped 11.76% on winning an
overseas order.
India's rupee rose for a second day as local stocks extended their
best gains in two weeks made yesterday on optimism measures by
governments worldwide will ease the global credit crunch. The rupee
rose 0.1 % to 49.8325 per dollar from 49.8575 on 27 October.
Tata Tea lost 2.61% on reports it may cut tea prices.
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