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.
Wednesday, October 29, 2008
Pre Market Report 29/10/2008
Key benchmark indices are likely to open firm today, 29 October 2008, mirroring strong global equities buoyed by hopes of interest rate cut by the US Federal Reserve in its meeting scheduled later during the day. However volatility is likely to be at fore as derivative contracts for October 2008 series expire today, 29 October 2008.
As per reports, marketwide rollover of positions was 51% while that of Nifty stood at 52% from October 2008 series to November 2007, by Tuesday, 28 October 2008.
India Inc.'s report card for the September 2008 quarter so far shows a muted bottomline growth, due to ballooning interest cost. Aggregate results of 1072 companies showed a 6.8% rise in net profit on 29.10% increase in net sales in Q2 September 2008 over Q2 September 2007. Interest cost jumped 30% in Q2 September 2008 over Q2 September 2007.
Cairn India, Mahindra & Mahindra, ONGC, National Aluminium Company and Suzlon Energy will declare their September 2008 quarterly results today, 29 October 2008.
US markets rallied on Tuesday, 28 October 2008 on bargain-hunting with expectations of a interest rate cut by the US Federal Reserve in its meeting scheduled later during the day propelled the rally. The Dow Jones surged 889.35 points, or 10.88%, to 9,065.12. It was the second-biggest point gain on record and the seventh-largest percentage gain. The S&P 500 index advanced 91.59 points, or 10.79%, to 940.51, and the Nasdaq Composite index added 143.57 points, or 9.53%, to 1,649.47.
Most Asian markets were trading higher today, 29 October 2008, following an overnight rally on Wall Street as hopes mounted for further interest rate cuts to shore up the global economy. Hong Kong's Hang Seng gained 2.76% or 348.12 points at 12,944.41. Japan's Nikkei rose 6.39% or 487.42 points at 8,109.34, Singapore's Straits Times surged 2.28% or 38.01 points at 1,704.50, South Korea's Seoul Composite advanced 3.30% or 32.98 points at 1,032.14, Taiwan's Taiwan Weighted was up 2.43% or 106.99 points at 4,506.96. However, China's Shanghai Composite was down 1.13% or 20.06 points at 1,751.7.
Firm global markets and relaxation of creeping acquisition norms for promoters boosted the battered bourses on the special one-hour Muhurat trading session for Samvat 2065 on 28 October 2008. The BSE 30-share Sensex jumped 498.52 points, or 5.85%, to 9,008.08 and the S&P CNX Nifty was up 167.70 points, or 6.64%, to 2,691.90, recording its biggest Muhurat day gain in 18 years.
Foreign institutional investors (FIIs) were net sellers worth Rs 69.18 crore while mutual funds bought shares worth Rs 24.78 crore on Tuesday, 28 October 2008, according to provisional data on NSE.
US light crude for December 2008 delivery was up $2.32 at $65.05 a barrel today, 29 October 2008 after US stock indices rallied, helping draw some investors back into beaten-down risk assets.
As per reports, marketwide rollover of positions was 51% while that of Nifty stood at 52% from October 2008 series to November 2007, by Tuesday, 28 October 2008.
India Inc.'s report card for the September 2008 quarter so far shows a muted bottomline growth, due to ballooning interest cost. Aggregate results of 1072 companies showed a 6.8% rise in net profit on 29.10% increase in net sales in Q2 September 2008 over Q2 September 2007. Interest cost jumped 30% in Q2 September 2008 over Q2 September 2007.
Cairn India, Mahindra & Mahindra, ONGC, National Aluminium Company and Suzlon Energy will declare their September 2008 quarterly results today, 29 October 2008.
US markets rallied on Tuesday, 28 October 2008 on bargain-hunting with expectations of a interest rate cut by the US Federal Reserve in its meeting scheduled later during the day propelled the rally. The Dow Jones surged 889.35 points, or 10.88%, to 9,065.12. It was the second-biggest point gain on record and the seventh-largest percentage gain. The S&P 500 index advanced 91.59 points, or 10.79%, to 940.51, and the Nasdaq Composite index added 143.57 points, or 9.53%, to 1,649.47.
Most Asian markets were trading higher today, 29 October 2008, following an overnight rally on Wall Street as hopes mounted for further interest rate cuts to shore up the global economy. Hong Kong's Hang Seng gained 2.76% or 348.12 points at 12,944.41. Japan's Nikkei rose 6.39% or 487.42 points at 8,109.34, Singapore's Straits Times surged 2.28% or 38.01 points at 1,704.50, South Korea's Seoul Composite advanced 3.30% or 32.98 points at 1,032.14, Taiwan's Taiwan Weighted was up 2.43% or 106.99 points at 4,506.96. However, China's Shanghai Composite was down 1.13% or 20.06 points at 1,751.7.
Firm global markets and relaxation of creeping acquisition norms for promoters boosted the battered bourses on the special one-hour Muhurat trading session for Samvat 2065 on 28 October 2008. The BSE 30-share Sensex jumped 498.52 points, or 5.85%, to 9,008.08 and the S&P CNX Nifty was up 167.70 points, or 6.64%, to 2,691.90, recording its biggest Muhurat day gain in 18 years.
Foreign institutional investors (FIIs) were net sellers worth Rs 69.18 crore while mutual funds bought shares worth Rs 24.78 crore on Tuesday, 28 October 2008, according to provisional data on NSE.
US light crude for December 2008 delivery was up $2.32 at $65.05 a barrel today, 29 October 2008 after US stock indices rallied, helping draw some investors back into beaten-down risk assets.
ikkei surges over 7 pct on BOJ rate cut hopes, yen
TOKYO (Reuters) - Japan's Nikkei average rose 7.5 percent on Wednesday after the yen fell on hopes that the Bank of Japan will cut interest rates at a policy-setting meeting later this week, with exporters such as Sony Corp gaining.
The BOJ will consider cutting rates on this week, but the bank will watch market conditions before making a final decision, a source informed on the matter said.
The Nikkei business daily also reported earlier on Wednesday without citing sources that the central bank is leaning towards cutting its 0.5 percent target for the unsecured overnight call money rate to 0.25 percent.
"Hopes of a BOJ rate cut are everything," said Masayoshi Okamoto, head of trading at Jujiya Securities.
"But as long as the dollar is below 100 yen there will be worries about Japanese company earnings in the second half of this business year, and this will limit the Nikkei's rebound."
The yen posted its biggest daily fall against the U.S. currency since 1974 on the Nikkei report of a BOJ rate cut but later trimmed losses and was fetching around 97.70 yen .
Speculation over rate cuts by the BOJ and the Fed sparked a wave of bargain hunting in U.S. shares that helped Wall Street log its second-biggest one-day gain ever.
The benchmark Nikkei gained nearly 570 points to 8,190.56 although volume still appeared relatively thin after two days of heavy trade. On Tuesday it briefly touched a 26-year low before ending up more than 6 percent. The broader Topix was up 6.8 percent to 837.22. Sony climbed 4 percent to 2,075 yen and Canon Inc rose 7.8 percent to 2,750 yen.
Beaten-down Japanese banks also surged, with Mitsubishi UFJ Financial Group up 13 percent at 622 yen and Mizuho Financial Group up 9.3 percent at 234,900 yen
Wall St scores 2nd-best day ever on rate-cut hopes
NEW YORK (Reuters) - Wall Street marked its second-best day ever on Tuesday as investors, convinced that central banks worldwide will cut rates even more, scooped up stocks that had been driven down to their lowest prices in more than five years.
A big catalyst for the late-day surge was a huge drop in the Japanese yen after a news report that the Bank of Japan may cut interest rates later this week. A sudden strengthening of the yen during the past week had been destabilizing stock markets around the world, and Tuesday's reversal of that trend was greeted with relief by investors.
The Federal Reserve is expected to cut its benchmark fed funds rate by at least 50 basis points on Wednesday when it concludes a two-day meeting that began this afternoon.
Shares of capital-hungry companies such as telecoms posted the day's sharpest gains, including Verizon Communications, up over 14 percent, and AT&T, up over 13 percent.
Big oil companies gave the Dow its biggest boost after British major BP Plc reported a record quarterly profit, beating expectations. Exxon Mobil and Chevron both rose more than 13 percent.
Shares of Boeing jumped 15.5 percent to $48.91 after the aircraft manufacturer reached a tentative agreement with its largest union to end a strike and stop revenue losses estimated at $100 million a day.
Typically when the market gets to oversold extremes, stocks see a bounce back, said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.
"If you believe that governments around the world are going to be successful in reengerizing financial markets and gradually bringing back confidence and stability in the weeks and months ahead, then you probably want to be more of a buyer than a seller," Sheldon said.
The Dow Jones industrial average jumped 889.35 points, or 10.88 percent, to 9,065.12. The Standard & Poor's 500 Index surged 91.59 points, or 10.79 percent, to 940.51. The Nasdaq Composite Index ran up 143.57 points, or 9.53 percent, to 1,649.47.
It was the second-biggest point gain ever for the Dow and the S&P. These advances were surpassed only by the rally on Oct. 13, when the Dow jumped 936.42 points and the S&P 500 climbed 104.13 points after governments pledged to pour cash into struggling banks and a Japanese banking group completed its investment in Morgan Stanley.
The yen's recent rally forced an unwinding of the so-called "carry trade" -- a phenomenon of Japan's low interest rates, in which investors borrowed yen to finance investments in high er-yielding assets, such as U.S. stocks.
On Tuesday, the dollar achieved its biggest gain against the yen since 1974, according to Reuters data.
Wall Street also got a lift as investors moved to readjust their stock portfolios as a rough month for stocks draws to a close.
Wal-Mart's stock rose after the world's largest retailer stuck to its 2009 sales growth forecast, saying it will weather the economic turmoil now and could come out even stronger than its rivals when the economy rebounds. Wal-Mart shot up 11.1 percent to $55.17 on the New York Stock Exchange.
The rally came despite an economic picture that remained gloomy after data showed U.S. consumer confidence tumbled to a record low in October as the financial crisis made Americans anxious about their jobs and pessimistic about the future.
The gains were widespread, including shares of home builders that rose even in the face of data that showed prices of U.S. single-family homes plunged a record 16 .6 percent in August from a year earlier. D.R. Horton Inc climbed 9.8 percent to $5.16.
Even the Dow Jones index of home builders' shares finished up 6.01 percent.
Verizon ended at $31.65, up 14.6 percent, and AT&T finished at $27.61, up 13.2 percent, in NYSE trading.
In the oil sector, Exxon climbed 13.3 percent to $74.86, while Chevron soared 13.5 percent to $70.02. The big energy producers' shares gained even as front-month U.S. oil futures slipped 49 cents to settle at $62.73 a barrel.
Whirlpool Corp tumbled 8.3 percent to $45.87 after the world's biggest appliance maker said it would cut 7 percent of its workforce and slashed its 2008 earnings outlook amid weakening demand.
Trading was moderate on the New York Stock Exchange, with about 1.73 billion shares changing hands, below last year's estimated daily average of roughly 1.90 billion. Most of the volume came in the last hour of trading.
On Nasdaq, about 2.77 billion shares traded, above last year's daily average of 2.17 billion.
Advancing stocks outnumbered declining ones on the NYSE by about 4 to 1 while on the Nasdaq, slightly more than two stocks rose for every one that fell.
A big catalyst for the late-day surge was a huge drop in the Japanese yen after a news report that the Bank of Japan may cut interest rates later this week. A sudden strengthening of the yen during the past week had been destabilizing stock markets around the world, and Tuesday's reversal of that trend was greeted with relief by investors.
The Federal Reserve is expected to cut its benchmark fed funds rate by at least 50 basis points on Wednesday when it concludes a two-day meeting that began this afternoon.
Shares of capital-hungry companies such as telecoms posted the day's sharpest gains, including Verizon Communications, up over 14 percent, and AT&T, up over 13 percent.
Big oil companies gave the Dow its biggest boost after British major BP Plc reported a record quarterly profit, beating expectations. Exxon Mobil and Chevron both rose more than 13 percent.
Shares of Boeing jumped 15.5 percent to $48.91 after the aircraft manufacturer reached a tentative agreement with its largest union to end a strike and stop revenue losses estimated at $100 million a day.
Typically when the market gets to oversold extremes, stocks see a bounce back, said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.
"If you believe that governments around the world are going to be successful in reengerizing financial markets and gradually bringing back confidence and stability in the weeks and months ahead, then you probably want to be more of a buyer than a seller," Sheldon said.
The Dow Jones industrial average jumped 889.35 points, or 10.88 percent, to 9,065.12. The Standard & Poor's 500 Index surged 91.59 points, or 10.79 percent, to 940.51. The Nasdaq Composite Index ran up 143.57 points, or 9.53 percent, to 1,649.47.
It was the second-biggest point gain ever for the Dow and the S&P. These advances were surpassed only by the rally on Oct. 13, when the Dow jumped 936.42 points and the S&P 500 climbed 104.13 points after governments pledged to pour cash into struggling banks and a Japanese banking group completed its investment in Morgan Stanley.
The yen's recent rally forced an unwinding of the so-called "carry trade" -- a phenomenon of Japan's low interest rates, in which investors borrowed yen to finance investments in high er-yielding assets, such as U.S. stocks.
On Tuesday, the dollar achieved its biggest gain against the yen since 1974, according to Reuters data.
Wall Street also got a lift as investors moved to readjust their stock portfolios as a rough month for stocks draws to a close.
Wal-Mart's stock rose after the world's largest retailer stuck to its 2009 sales growth forecast, saying it will weather the economic turmoil now and could come out even stronger than its rivals when the economy rebounds. Wal-Mart shot up 11.1 percent to $55.17 on the New York Stock Exchange.
The rally came despite an economic picture that remained gloomy after data showed U.S. consumer confidence tumbled to a record low in October as the financial crisis made Americans anxious about their jobs and pessimistic about the future.
The gains were widespread, including shares of home builders that rose even in the face of data that showed prices of U.S. single-family homes plunged a record 16 .6 percent in August from a year earlier. D.R. Horton Inc climbed 9.8 percent to $5.16.
Even the Dow Jones index of home builders' shares finished up 6.01 percent.
Verizon ended at $31.65, up 14.6 percent, and AT&T finished at $27.61, up 13.2 percent, in NYSE trading.
In the oil sector, Exxon climbed 13.3 percent to $74.86, while Chevron soared 13.5 percent to $70.02. The big energy producers' shares gained even as front-month U.S. oil futures slipped 49 cents to settle at $62.73 a barrel.
Whirlpool Corp tumbled 8.3 percent to $45.87 after the world's biggest appliance maker said it would cut 7 percent of its workforce and slashed its 2008 earnings outlook amid weakening demand.
Trading was moderate on the New York Stock Exchange, with about 1.73 billion shares changing hands, below last year's estimated daily average of roughly 1.90 billion. Most of the volume came in the last hour of trading.
On Nasdaq, about 2.77 billion shares traded, above last year's daily average of 2.17 billion.
Advancing stocks outnumbered declining ones on the NYSE by about 4 to 1 while on the Nasdaq, slightly more than two stocks rose for every one that fell.
Monday, October 27, 2008
Sensex cuts sharp early losses in choppy trade; ends provisionally above 8,500 level
Key benchmark indices witnessed sharp intra-day pullback in second
half of the day's trading session helped by short covering of
derivative positions ahead of the expiry on Wednesday, 29 October
2008, after plunging to over 3-year low in the first half spooked
by weak global equities. Volatility was the hallmark of the day's
trading session. The market breadth was weak.
The opening volatility on the bourses followed the slump in Asian
markets to five-year lows, following the poor showing by the US
markets overnight on concerns of looming US recession worries and
global economic slowdown decelerating corporate earnings growth.
Key benchmark indices in China, Hong Kong, South Korea, Taiwan, and
Japan slipped between 0.80% and 6.36% today, 27 October 2008.
European markets were not spared from the global bloodbath either
as indices in France, Germany and UK fell between 3.16% to 6.31%.
The Dow Jones industrial average futures were down about 200 points
today, 24 October 2008. S&P 500 and Nasdaq 100 futures also fell
sharply as turmoil gripped markets around the world. Futures
measure current index values against perceived future performance
and give an indication of how markets may open when trading begins
in New York.
The BSE 30-share Sensex declined 180.49 points, or 2.07%, to
provisionally close at 8,520.58, after slumping 1,003.68 points to
7,697.39 in afternoon trade, its lowest since 28 October 2005. At
the day's high of 8,739.48 hit in early trade, the Sensex rose
38.41 points. The Sensex had opened 112.21 points lower at
8,588.86.
The S&P CNX Nifty lost 51.60 points, or 2%, to 2,532.40 as per the
provisional figures, after tanking to a low of 2252.75, its lowest
since 22 July 2005.
The market breadth, indicating the overall health of the market,
was weak with 1,996 shares declining compared with just 538 that
rose. 41 shares remained unchanged.
The volatility is attributed to the expiry of the derivative
contracts for October 2008 series on Wednesday, 29 October 2008. As
per reports, marketwide rollover of positions was 37%, while that
of Nifty stood at 45% from the October 2008 series to November
2007, by Friday, 24 October 2008. The rollovers are fairly high,
indicating market players are uncertain about the direction of the
market.
Among the 30-member Sensex pack, 21 declined while the rest gainer.
Mahindra & Mahindra (down 15.67% to Rs 241.80), Tata Motors (down
13.73% to Rs 1404.40), Grasim Industries (down 10.2% to Rs 946)
were the key losers from the Sensex pack.
India's largest state-run bank by net profit State Bank of India
(SBI) fell 9.2% to Rs 1050 on muted growth in consolidated net
profit in Q2 September 2008. In its results declared before market
hours today, 27 October 2008, SBI reported a 10.60% rise in
consolidated net profit to Rs 2378.19 crore on a 26.4% increase in
total income to Rs 27083.47 crore in Q2 September 2008 over Q2
September 2007. The consolidated earnings include numbers from
recently acquired State Bank of Saurashtra.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) jumped 6.25% to Rs 1,079,
making a strong recovery from day's low of Rs 930 . RIL's net
profit rose 7.4% to Rs 4122 crore on 39.8% growth in sales to Rs
44787 crore in Q2 September 2008 over Q2 September 2007, the
company said after market hours on Thursday, 23 October 2008.
Select Sensex stocks reversed early losses. India's second largest
IT exporter by sales Infosys was rose 0.3% to Rs 1252.50 after
hitting an intra-day low of Rs 1,161. Sterlite Industries rose
1.49% to Rs 211.45 off from day's low of Rs 164.50. India's largest
private sector bank by net profit ICICI Bank rose 1.61% to Rs 315
after declining to low of Rs 282.15. India's largest telecom
services provider by market share Reliance Communications surged
6.33% to Rs 205.65 off day's low of Rs 148.60. Bharti Airtel,
India's largest telecom services provider by market share jumped
10.17% to Rs 588.80, off day's low of Rs 484. Reliance
Infrastructure rose 5.13% to Rs 401, recovering from low of Rs 354.
India's third largest IT exporter by sales Satyam Computer Services
rose 2.28% to Rs 293.40 off day's low of Rs 240.25. Its ADR slid
6.9% in US on Friday.
India's fourth largest IT exporter by sales Wipro tumbled 6.4% to
Rs 220.10 off day's low of Rs 181.70. Its ADR shed 9.6% on Friday
in US.
India's second largest power generation company in terms of net
profit Tata Power Company slumped 8.75% to Rs 570.25 ahead of its
Q2 results today, 27 October 2008.
BSE Realty index rose 4.25% and was the major gainer from the
sectoral indices on BSE. Realty majors, Indiabulls Real Estate,
Unitech rose between 15.07% to 41.86%. However, India's largest
real estate player by market capitalization DLF fell 2.84% to Rs
198.10 off day's low of Rs 158.
Central banks across the globe are likely to launch new coordinated
emergency action this week to calm panic in financial markets.
Reports indicate the US Federal Reserve is widely expected to
announce a 50 basis-point cut in overnight rates on Wednesday, 29
October 2008 that would take them to 1%, the lowest level since
June 2004, with some expecting an even deeper reduction to 0.75%.
The US markets had declined in volatile trade on Friday, 24 October
2008, as fears of a full-blown global recession intensified and
investors dumped risky assets. The Dow Jones Industrial Average
plunged 312.30 points, or 3.59%, to 8,378.95. The S&P 500 index
slipped 31.34 points, or 3.45%, to 876.77, and the Nasdaq Composite
index lost 51.88 points, or 3.23%, to 1,552.03.
Back home, markets suffered a severe setback on Friday 24 October
2008, plunging to three-year lows mirroring weak global equities on
worries about a sharp global economic slowdown and disappointment
from the second quarter monetary policy review of the Reserve Bank
of India. The BSE 30-share Sensex plunged 1070.63 points, or
10.96%, to 8,701.07, recording its biggest fall in percentage terms
since May 2004 and the S&P CNX Nifty was down 359.50 points or
12.2% to 2,584.
Crude oil was little changed in New York near a 16-month low amid
expectations that OPEC's decision to cut production will start to
bring supply back in line with demand that is being curbed by the
global financial crisis. Crude oil for December delivery was at
$US63.93 a barrel down 22 cents, in after-hours electronic trading
on the New York Mercantile Exchange today.
The Indian currency continued its downward march and plunged to
50.05 against the greenback in early trade on Monday.
half of the day's trading session helped by short covering of
derivative positions ahead of the expiry on Wednesday, 29 October
2008, after plunging to over 3-year low in the first half spooked
by weak global equities. Volatility was the hallmark of the day's
trading session. The market breadth was weak.
The opening volatility on the bourses followed the slump in Asian
markets to five-year lows, following the poor showing by the US
markets overnight on concerns of looming US recession worries and
global economic slowdown decelerating corporate earnings growth.
Key benchmark indices in China, Hong Kong, South Korea, Taiwan, and
Japan slipped between 0.80% and 6.36% today, 27 October 2008.
European markets were not spared from the global bloodbath either
as indices in France, Germany and UK fell between 3.16% to 6.31%.
The Dow Jones industrial average futures were down about 200 points
today, 24 October 2008. S&P 500 and Nasdaq 100 futures also fell
sharply as turmoil gripped markets around the world. Futures
measure current index values against perceived future performance
and give an indication of how markets may open when trading begins
in New York.
The BSE 30-share Sensex declined 180.49 points, or 2.07%, to
provisionally close at 8,520.58, after slumping 1,003.68 points to
7,697.39 in afternoon trade, its lowest since 28 October 2005. At
the day's high of 8,739.48 hit in early trade, the Sensex rose
38.41 points. The Sensex had opened 112.21 points lower at
8,588.86.
The S&P CNX Nifty lost 51.60 points, or 2%, to 2,532.40 as per the
provisional figures, after tanking to a low of 2252.75, its lowest
since 22 July 2005.
The market breadth, indicating the overall health of the market,
was weak with 1,996 shares declining compared with just 538 that
rose. 41 shares remained unchanged.
The volatility is attributed to the expiry of the derivative
contracts for October 2008 series on Wednesday, 29 October 2008. As
per reports, marketwide rollover of positions was 37%, while that
of Nifty stood at 45% from the October 2008 series to November
2007, by Friday, 24 October 2008. The rollovers are fairly high,
indicating market players are uncertain about the direction of the
market.
Among the 30-member Sensex pack, 21 declined while the rest gainer.
Mahindra & Mahindra (down 15.67% to Rs 241.80), Tata Motors (down
13.73% to Rs 1404.40), Grasim Industries (down 10.2% to Rs 946)
were the key losers from the Sensex pack.
India's largest state-run bank by net profit State Bank of India
(SBI) fell 9.2% to Rs 1050 on muted growth in consolidated net
profit in Q2 September 2008. In its results declared before market
hours today, 27 October 2008, SBI reported a 10.60% rise in
consolidated net profit to Rs 2378.19 crore on a 26.4% increase in
total income to Rs 27083.47 crore in Q2 September 2008 over Q2
September 2007. The consolidated earnings include numbers from
recently acquired State Bank of Saurashtra.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) jumped 6.25% to Rs 1,079,
making a strong recovery from day's low of Rs 930 . RIL's net
profit rose 7.4% to Rs 4122 crore on 39.8% growth in sales to Rs
44787 crore in Q2 September 2008 over Q2 September 2007, the
company said after market hours on Thursday, 23 October 2008.
Select Sensex stocks reversed early losses. India's second largest
IT exporter by sales Infosys was rose 0.3% to Rs 1252.50 after
hitting an intra-day low of Rs 1,161. Sterlite Industries rose
1.49% to Rs 211.45 off from day's low of Rs 164.50. India's largest
private sector bank by net profit ICICI Bank rose 1.61% to Rs 315
after declining to low of Rs 282.15. India's largest telecom
services provider by market share Reliance Communications surged
6.33% to Rs 205.65 off day's low of Rs 148.60. Bharti Airtel,
India's largest telecom services provider by market share jumped
10.17% to Rs 588.80, off day's low of Rs 484. Reliance
Infrastructure rose 5.13% to Rs 401, recovering from low of Rs 354.
India's third largest IT exporter by sales Satyam Computer Services
rose 2.28% to Rs 293.40 off day's low of Rs 240.25. Its ADR slid
6.9% in US on Friday.
India's fourth largest IT exporter by sales Wipro tumbled 6.4% to
Rs 220.10 off day's low of Rs 181.70. Its ADR shed 9.6% on Friday
in US.
India's second largest power generation company in terms of net
profit Tata Power Company slumped 8.75% to Rs 570.25 ahead of its
Q2 results today, 27 October 2008.
BSE Realty index rose 4.25% and was the major gainer from the
sectoral indices on BSE. Realty majors, Indiabulls Real Estate,
Unitech rose between 15.07% to 41.86%. However, India's largest
real estate player by market capitalization DLF fell 2.84% to Rs
198.10 off day's low of Rs 158.
Central banks across the globe are likely to launch new coordinated
emergency action this week to calm panic in financial markets.
Reports indicate the US Federal Reserve is widely expected to
announce a 50 basis-point cut in overnight rates on Wednesday, 29
October 2008 that would take them to 1%, the lowest level since
June 2004, with some expecting an even deeper reduction to 0.75%.
The US markets had declined in volatile trade on Friday, 24 October
2008, as fears of a full-blown global recession intensified and
investors dumped risky assets. The Dow Jones Industrial Average
plunged 312.30 points, or 3.59%, to 8,378.95. The S&P 500 index
slipped 31.34 points, or 3.45%, to 876.77, and the Nasdaq Composite
index lost 51.88 points, or 3.23%, to 1,552.03.
Back home, markets suffered a severe setback on Friday 24 October
2008, plunging to three-year lows mirroring weak global equities on
worries about a sharp global economic slowdown and disappointment
from the second quarter monetary policy review of the Reserve Bank
of India. The BSE 30-share Sensex plunged 1070.63 points, or
10.96%, to 8,701.07, recording its biggest fall in percentage terms
since May 2004 and the S&P CNX Nifty was down 359.50 points or
12.2% to 2,584.
Crude oil was little changed in New York near a 16-month low amid
expectations that OPEC's decision to cut production will start to
bring supply back in line with demand that is being curbed by the
global financial crisis. Crude oil for December delivery was at
$US63.93 a barrel down 22 cents, in after-hours electronic trading
on the New York Mercantile Exchange today.
The Indian currency continued its downward march and plunged to
50.05 against the greenback in early trade on Monday.
Sensex nosedives over 650 points to near 8,000 level
A brief recovery in mid-morning trade proved futile with the key
indices hitting day's low on frenzied selling in index pivotals,
with global cues playing the spoilsoprts. Metal, banking and IT
stocks were hammered brutally. The market breadth was dismal.
The opening volatility on the bourses followed the slump in Asian
markets to five-year lows, following the poor showing by the US
markets overnight on concerns of the looming US recession and
global economic slowdown decelerating corporate earnings growth.
Key benchmark indices in China, Hong Kong, South Korea, Taiwan, and
Japan slipped between 0.80% and 6.36% today, 27 October 2008.
At 12:29 IST, the BSE 30-share Sensex tumbled 664.78 points, or
7.53%, to 8,046.21. The Sensex opened 112.21 points lower at
8,588.86. The Sensex had lost 686.30 points to a three-year low of
8,014.77 in early afternoon trade. At the day's high of 8,739.48,
the Sensex had risen 38.41 points.
The S&P CNX Nifty lost 224.85 points, or 8.70%, to 2359.15, after
tanking to a three-year low of 2356.95.
The market breadth, indicating the overall health of the market,
was weak with 2,043 shares declining compared with just 294 that
rose. But 40 shares remained unchanged.
The total turnover on the BSE amounted to Rs 1420 crore by 12:30
IST compared with Rs 929 crore by 11:30 IST
The volatility is attributed to the expiry of the derivative
contracts for October 2008 series on Wednesday, 29 October 2008. As
per reports, marketwide rollover of positions was 37%, while that
of Nifty stood at 45% from the October 2008 series to November
2007, by Friday, 24 October 2008. The rollovers are fairly high,
indicating market players are uncertain about the direction of the
market.
Bhart Airtel was the lone gainer among the 30-member Sensex pack.
India's biggest listed cellular services provider gained 0.57% to
Rs 537.50. The stock moved in a range of Rs 552 and Rs 502.20 in
choppy trade.
Jaiprakash Associates (down 12.04% to Rs 52.40), Hindustan Unilever
(down 12.41% to Rs 197), and Reliance Communications (down 10.63%
to Rs 172.50) were the other key losers from the Sensex pack.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) fell 1.92% to Rs 996 in
volatile trade. It hit a 52-week low of Rs 980 in early trade.
RIL's net profit rose 7.4% to Rs 4122 crore on 39.8% growth in
sales to Rs 44787 crore in Q2 September 2008 over Q2 September
2007, the company said after market hours on Thursday, 23 October
2008.
Real estate shares, barring Unitech, continued their slide, with
the BSE Realty index declining 4.36% to 1,667.34. The BSE Realty
index has wiped off 87.59% from its record high of 13848.09 hit on
8 January 2008 on concern the global credit crunch would choke real
estate companies as borrowing costs rise and property prices
tumble.
DLF, holding the biggest weightage in BSE Realty index collapsed
12.90% to Rs 178. Indiabulls Real Estate (down 2.32% to Rs 94.60),
HDIL (down 12.57% to Rs 119.60), and Akruti City (down 6.64% to Rs
572) were not spared either.
Unitech, with third largest weightage in the BSE Realty index,
jumped 29.24% to Rs 38.90 after the company filed a complaint with
the market regulator against some brokers for hammering its shares
51% on 24 October 2008.
Metal shares slumped on fears a recession in the US will lead to
slowdown in demand. Tata Steel (down 9.09% to Rs 162), Nalco (down
21.75% to Rs 125.35), and Sterlite Industries (down 8.32% to Rs
191.30), and Hindalco Industries (down 9% to Rs 39.45) lead a 8.03%
decline to 4,041.04 in the BSE Metal index.
IT stocks fell despite the Indian rupee extending its losses to the
ninth day in a row today, easing 11 paise to 50.06 against the US
currency. IT firms derive a lion's share of their revenues from
exports to the US, and a declining rupee augurs well for them. But
many IT companies have taken forward cover for their foreign
exchange receipts in the belief the rupee would keep on
appreciating. Thus, the gains due to the rupee's depreciation would
be neutralised by hedging losses.
India's fourth largest IT exporter by sales Wipro tumbled 14.52% to
Rs 201 and was the top loser from the Sensex pack.
India's largest IT exporter by sales TCS fell 6.98% to Rs 456. TCS'
net profit fell 2.57% to Rs 1173.04 on a 9.36% rise in sales to Rs
5699.96 in Q2 September 2008 over Q1 June 2008. The company
announced the results on 23 October 2008.
India's third largest IT exporter by sales Satyam Computer Services
slipped 5.11% to Rs 272.20. The company raised its earnings
guidance in rupee terms at the time of announcing Q2 September 2008
results on Friday, 17 October 2008.
India's second largest IT exporter by sales Infosys was down 4.70%
to Rs 1190.
India's second largest power generation company in terms of net
profit Tata Power Company slumped 12.77% to Rs 545.10 ahead of its
Q2 results today, 27 October 2008.
Banking shares extended the losses of Friday, 24 October 2008 as
disappointed investors dumped banking shares after the central
bank's mid-term monetary policy review did not announce any
measures to boost liquidity.
On Friday, 24 October 2008, the Reseve Bank of India (RBI) kept all
the key rates unchanged even as it lowered its 2008-09 growth
forecast to 7.5% to 8% from a previous forecast of around 8%. The
RBI also left the cash reserve ratio, the amount of funds that
banks have to keep on deposit with it, unchanged at 6.5%.
India's second largest bank by market capitalisation HDFC Bank lost
7.98% to Rs 895. India's second largest private sector bank by
market capitalisation ICICI Bank slipped 4.65% to Rs 295.60 ahead
of its Q2 September 2008 results today, 27 October 2008. In the
midst of a credit turmoil gripping economies across the world,
marketmen will focus on ICICI Bank's result for its exposure to
some of the crisis-ridden institutions in the US including Lehman
Brothers Holdings Inc.
India's largest state-run bank by net profit State Bank of India
(SBI) fell 12.48% to Rs 1012.05 on muted growth in consolidated net
profit in Q2 September 2008. In its results declared before market
hours today, 27 October 2008, SBI reported a 10.60% rise in
consolidated net profit to Rs 2378.19 crore on a 26.4% increase in
total income to Rs 27083.47 crore in Q2 September 2008 over Q2
September 2007. The consolidated earnings include numbers from
recently acquired State Bank of Saurashtra.
Jet Airways (India) tumbled 13.16% to Rs 148.80 after reporting its
biggest quarterly loss in more than three years on soaring fuel
expenses. The company declared the results on 25 October 2008,
reporting a net loss of Rs 384.53 crore in Q2 September 2008 as
against a net profit of Rs 28.36 crore in Q2 September 2007. Sales
rose 71.6% to Rs 3121.34 crore in Q2 September 2008 over Q2
September 2007.
Brigade Enterprises tumbled 16.07% to Rs 38.40 despite seeing an
intra-day spike to Rs 45 with 20.26 lakh shares changing hands at
that level in a bulk deal on BSE at 11:31 IST.
PSU oil marketing companies HPCL (down 8.57% to Rs 173.35), BPCL
(down 11.51% to Rs 249.05), and IOC (down 7.26% to Rs 317) in a
weak overall market, despite the US light crude for December 2008
delivery sliding 22 cents to $63.93 a barrel today, 27 October
2008. It also touched a 17-month low of $63.67 as an emergency
production cut by OPEC was shrugged off by traders anxious about
the onset of a deep global recession.
India Inc.'s report card for the September 2008 quarter so far
shows a muted bottomline growth, partly due to a surge in interest
cost. Aggregate results of 875 companies showed a 6.2% rise in net
profit on 28.5% increase in net sales in Q2 September 2008 over Q2
September 2007. Interest cost jumped 35.6% in Q2 September 2008
over Q2 September 2007.
While governments and central banks across the globe are expected
to take further dramatic action to prop up the global financial
system this week, there is concern this would not be enough to
prevent companies from slashing production and jobs as sales get
hit and financing remains difficult.
Central banks are likely to launch new coordinated emergency action
this week to calm panic in financial markets. Reports indicate the
US Federal Reserve is widely expected to announce a 50 basis-point
cut in overnight rates on Wednesday, 29 October 2008 that would
take them to 1%, the lowest level since June 2004, with some
expecting an even deeper reduction to 0.75%.
The US markets had declined in volatile trade on Friday, 24 October
2008, as fears of a full-blown global recession intensified and
investors dumped risky assets. The Dow Jones Industrial Average
plunged 312.30 points, or 3.59%, to 8,378.95. The S&P 500 index
slipped 31.34 points, or 3.45%, to 876.77, and the Nasdaq Composite
index lost 51.88 points, or 3.23%, to 1,552.03.
Back home, markets suffered a severe setback on Friday 24 October
2008, plunging to three-year lows mirroring weak global equities on
worries about a sharp global economic slowdown and disappointment
from the second quarter monetary policy review of the Reserve Bank
of India. The BSE 30-share Sensex plunged 1070.63 points, or
10.96%, to 8,701.07, recording its biggest fall in percentage terms
since May 2004 and the S&P CNX Nifty was down 359.50 points or
12.2% to 2,584.
Foreign institutional investors (FIIs) were net sellers of equities
worth Rs 1431.56 crore, while the mutual funds bought more shares
than they sold at a net Rs 514.26 crore on Friday, 24 October 2008,
according to provisional data on the NSE.
indices hitting day's low on frenzied selling in index pivotals,
with global cues playing the spoilsoprts. Metal, banking and IT
stocks were hammered brutally. The market breadth was dismal.
The opening volatility on the bourses followed the slump in Asian
markets to five-year lows, following the poor showing by the US
markets overnight on concerns of the looming US recession and
global economic slowdown decelerating corporate earnings growth.
Key benchmark indices in China, Hong Kong, South Korea, Taiwan, and
Japan slipped between 0.80% and 6.36% today, 27 October 2008.
At 12:29 IST, the BSE 30-share Sensex tumbled 664.78 points, or
7.53%, to 8,046.21. The Sensex opened 112.21 points lower at
8,588.86. The Sensex had lost 686.30 points to a three-year low of
8,014.77 in early afternoon trade. At the day's high of 8,739.48,
the Sensex had risen 38.41 points.
The S&P CNX Nifty lost 224.85 points, or 8.70%, to 2359.15, after
tanking to a three-year low of 2356.95.
The market breadth, indicating the overall health of the market,
was weak with 2,043 shares declining compared with just 294 that
rose. But 40 shares remained unchanged.
The total turnover on the BSE amounted to Rs 1420 crore by 12:30
IST compared with Rs 929 crore by 11:30 IST
The volatility is attributed to the expiry of the derivative
contracts for October 2008 series on Wednesday, 29 October 2008. As
per reports, marketwide rollover of positions was 37%, while that
of Nifty stood at 45% from the October 2008 series to November
2007, by Friday, 24 October 2008. The rollovers are fairly high,
indicating market players are uncertain about the direction of the
market.
Bhart Airtel was the lone gainer among the 30-member Sensex pack.
India's biggest listed cellular services provider gained 0.57% to
Rs 537.50. The stock moved in a range of Rs 552 and Rs 502.20 in
choppy trade.
Jaiprakash Associates (down 12.04% to Rs 52.40), Hindustan Unilever
(down 12.41% to Rs 197), and Reliance Communications (down 10.63%
to Rs 172.50) were the other key losers from the Sensex pack.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) fell 1.92% to Rs 996 in
volatile trade. It hit a 52-week low of Rs 980 in early trade.
RIL's net profit rose 7.4% to Rs 4122 crore on 39.8% growth in
sales to Rs 44787 crore in Q2 September 2008 over Q2 September
2007, the company said after market hours on Thursday, 23 October
2008.
Real estate shares, barring Unitech, continued their slide, with
the BSE Realty index declining 4.36% to 1,667.34. The BSE Realty
index has wiped off 87.59% from its record high of 13848.09 hit on
8 January 2008 on concern the global credit crunch would choke real
estate companies as borrowing costs rise and property prices
tumble.
DLF, holding the biggest weightage in BSE Realty index collapsed
12.90% to Rs 178. Indiabulls Real Estate (down 2.32% to Rs 94.60),
HDIL (down 12.57% to Rs 119.60), and Akruti City (down 6.64% to Rs
572) were not spared either.
Unitech, with third largest weightage in the BSE Realty index,
jumped 29.24% to Rs 38.90 after the company filed a complaint with
the market regulator against some brokers for hammering its shares
51% on 24 October 2008.
Metal shares slumped on fears a recession in the US will lead to
slowdown in demand. Tata Steel (down 9.09% to Rs 162), Nalco (down
21.75% to Rs 125.35), and Sterlite Industries (down 8.32% to Rs
191.30), and Hindalco Industries (down 9% to Rs 39.45) lead a 8.03%
decline to 4,041.04 in the BSE Metal index.
IT stocks fell despite the Indian rupee extending its losses to the
ninth day in a row today, easing 11 paise to 50.06 against the US
currency. IT firms derive a lion's share of their revenues from
exports to the US, and a declining rupee augurs well for them. But
many IT companies have taken forward cover for their foreign
exchange receipts in the belief the rupee would keep on
appreciating. Thus, the gains due to the rupee's depreciation would
be neutralised by hedging losses.
India's fourth largest IT exporter by sales Wipro tumbled 14.52% to
Rs 201 and was the top loser from the Sensex pack.
India's largest IT exporter by sales TCS fell 6.98% to Rs 456. TCS'
net profit fell 2.57% to Rs 1173.04 on a 9.36% rise in sales to Rs
5699.96 in Q2 September 2008 over Q1 June 2008. The company
announced the results on 23 October 2008.
India's third largest IT exporter by sales Satyam Computer Services
slipped 5.11% to Rs 272.20. The company raised its earnings
guidance in rupee terms at the time of announcing Q2 September 2008
results on Friday, 17 October 2008.
India's second largest IT exporter by sales Infosys was down 4.70%
to Rs 1190.
India's second largest power generation company in terms of net
profit Tata Power Company slumped 12.77% to Rs 545.10 ahead of its
Q2 results today, 27 October 2008.
Banking shares extended the losses of Friday, 24 October 2008 as
disappointed investors dumped banking shares after the central
bank's mid-term monetary policy review did not announce any
measures to boost liquidity.
On Friday, 24 October 2008, the Reseve Bank of India (RBI) kept all
the key rates unchanged even as it lowered its 2008-09 growth
forecast to 7.5% to 8% from a previous forecast of around 8%. The
RBI also left the cash reserve ratio, the amount of funds that
banks have to keep on deposit with it, unchanged at 6.5%.
India's second largest bank by market capitalisation HDFC Bank lost
7.98% to Rs 895. India's second largest private sector bank by
market capitalisation ICICI Bank slipped 4.65% to Rs 295.60 ahead
of its Q2 September 2008 results today, 27 October 2008. In the
midst of a credit turmoil gripping economies across the world,
marketmen will focus on ICICI Bank's result for its exposure to
some of the crisis-ridden institutions in the US including Lehman
Brothers Holdings Inc.
India's largest state-run bank by net profit State Bank of India
(SBI) fell 12.48% to Rs 1012.05 on muted growth in consolidated net
profit in Q2 September 2008. In its results declared before market
hours today, 27 October 2008, SBI reported a 10.60% rise in
consolidated net profit to Rs 2378.19 crore on a 26.4% increase in
total income to Rs 27083.47 crore in Q2 September 2008 over Q2
September 2007. The consolidated earnings include numbers from
recently acquired State Bank of Saurashtra.
Jet Airways (India) tumbled 13.16% to Rs 148.80 after reporting its
biggest quarterly loss in more than three years on soaring fuel
expenses. The company declared the results on 25 October 2008,
reporting a net loss of Rs 384.53 crore in Q2 September 2008 as
against a net profit of Rs 28.36 crore in Q2 September 2007. Sales
rose 71.6% to Rs 3121.34 crore in Q2 September 2008 over Q2
September 2007.
Brigade Enterprises tumbled 16.07% to Rs 38.40 despite seeing an
intra-day spike to Rs 45 with 20.26 lakh shares changing hands at
that level in a bulk deal on BSE at 11:31 IST.
PSU oil marketing companies HPCL (down 8.57% to Rs 173.35), BPCL
(down 11.51% to Rs 249.05), and IOC (down 7.26% to Rs 317) in a
weak overall market, despite the US light crude for December 2008
delivery sliding 22 cents to $63.93 a barrel today, 27 October
2008. It also touched a 17-month low of $63.67 as an emergency
production cut by OPEC was shrugged off by traders anxious about
the onset of a deep global recession.
India Inc.'s report card for the September 2008 quarter so far
shows a muted bottomline growth, partly due to a surge in interest
cost. Aggregate results of 875 companies showed a 6.2% rise in net
profit on 28.5% increase in net sales in Q2 September 2008 over Q2
September 2007. Interest cost jumped 35.6% in Q2 September 2008
over Q2 September 2007.
While governments and central banks across the globe are expected
to take further dramatic action to prop up the global financial
system this week, there is concern this would not be enough to
prevent companies from slashing production and jobs as sales get
hit and financing remains difficult.
Central banks are likely to launch new coordinated emergency action
this week to calm panic in financial markets. Reports indicate the
US Federal Reserve is widely expected to announce a 50 basis-point
cut in overnight rates on Wednesday, 29 October 2008 that would
take them to 1%, the lowest level since June 2004, with some
expecting an even deeper reduction to 0.75%.
The US markets had declined in volatile trade on Friday, 24 October
2008, as fears of a full-blown global recession intensified and
investors dumped risky assets. The Dow Jones Industrial Average
plunged 312.30 points, or 3.59%, to 8,378.95. The S&P 500 index
slipped 31.34 points, or 3.45%, to 876.77, and the Nasdaq Composite
index lost 51.88 points, or 3.23%, to 1,552.03.
Back home, markets suffered a severe setback on Friday 24 October
2008, plunging to three-year lows mirroring weak global equities on
worries about a sharp global economic slowdown and disappointment
from the second quarter monetary policy review of the Reserve Bank
of India. The BSE 30-share Sensex plunged 1070.63 points, or
10.96%, to 8,701.07, recording its biggest fall in percentage terms
since May 2004 and the S&P CNX Nifty was down 359.50 points or
12.2% to 2,584.
Foreign institutional investors (FIIs) were net sellers of equities
worth Rs 1431.56 crore, while the mutual funds bought more shares
than they sold at a net Rs 514.26 crore on Friday, 24 October 2008,
according to provisional data on the NSE.
Pre Market Report 27/10/2008
Key benchmark indices are likely to open lower mirroring weak global cues. Global stocks tumbled to a new five-year low as investors withdrew from equity markets on worries that global economic slowdown may hurt corporate profitability.
Volatility is likely to remain high as derivative contracts for October 2008 series expire on Wednesday, 29 October 2008. As per reports, marketwide rollover of positions was 37% while that of Nifty stood at 45% from October 2008 series to November 2007, by Friday, 24 October 2008.
India Inc.'s report card for the September 2008 quarter so far shows a muted bottomline growth, partly due to a surge in interest cost. Aggregate results of 875 companies showed a 6.2% rise in net profit on 28.5% increase in net sales in Q2 September 2008 over Q2 September 2007. Interest cost jumped 35.6% in Q2 September 2008 over Q2 September 2007.
In the midst of a credit turmoil gripping economies across the world, the markets will keenly watch the second quarter earnings of the country's two largest lenders State Bank of India (SBI) and ICICI Bank due today, 27 October 2008. The focus is on ICICI Bank for its exposure to some of the crisis-ridden institutions in the US including Lehman Brothers Holdings Inc. SBI's results will also be watched, as being the largest lender of the country it would serve a benchmark indicator for the entire sector. If the repeated assurances from the management of the two banks that they were on a sound footing and the impact of global crisis was negligible come true, it could turn out to be a major trigger for the beaten-down domestic bourses, which are keenly waiting for any positive cues.
While governments and central banks across the globe are expected to take further dramatic action to prop up the global financial system this week, there is concern it will not be enough to prevent companies from slashing production and jobs as sales get hit and financing remains difficult.
Central banks are likely to launch new coordinated emergency action this week to calm panic in financial markets. Reports indicate the US Federal Reserve is widely expected to announce a 50 basis-point cut in overnight rates on Wednesday, 29 October 2008 that would take them to 1%, the lowest level since June 2004, with some expecting an even deeper reduction to 0.75%.
Most Asian markets were trading lower today, 27 October 2008. China's Shanghai Composite was down 2.84% or 52.22 points at 1,787.39, Hong Kong's Hang Seng plunged 1.83% or 231.46 points at 12,386.92, South Korea's Seoul Composite slipped 1.49% or 13.95 points at 924.8, and Taiwan's Taiwan Weighted tumbled 5.24% or 239.78 points at 4,339.84. However, Japan's Nikkei was up 0.40% or 30.42 points at 7,679.50.
US markets declined in volatile trade on Friday, 24 October 2008 as fears of a full-blown global recession intensified and investors dumped risky assets. Dow plunged 312.30 points, or 3.59%, to 8,378.95. The S&P 500 index slipped 31.34 points, or 3.45%, to 876.77, and the Nasdaq Composite index lost 51.88 points, or 3.23%, to 1,552.03.
Back home, markets suffered severe setback on Friday 24 October 2008 plunging to three year lows mirroring weak global equities on worries about a sharp global economic slowdown and disappointment from the second quarter monetary policy review of the Reserve Bank of India. The BSE 30-share Sensex plunged 1070.63 points or 10.96% to 8,701.07, recording its biggest fall in percentage terms since May 2004 and the S&P CNX Nifty was down 359.50 points or 12.2% to 2,584.
Foreign institutional investors (FIIs) were net sellers worth Rs 1431.56 crore while mutual funds bought shares worth Rs 514.26 crore on Friday, 24 October 2008, according to provisional data on NSE.
US light crude for December 2008 delivery fell 22 cents to $63.93 a barrel today, 27 October 2008 after touching a 17-month low of $63.67 as an emergency production cut by OPEC was shrugged off by traders anxious about the onset of a deep global recession
Volatility is likely to remain high as derivative contracts for October 2008 series expire on Wednesday, 29 October 2008. As per reports, marketwide rollover of positions was 37% while that of Nifty stood at 45% from October 2008 series to November 2007, by Friday, 24 October 2008.
India Inc.'s report card for the September 2008 quarter so far shows a muted bottomline growth, partly due to a surge in interest cost. Aggregate results of 875 companies showed a 6.2% rise in net profit on 28.5% increase in net sales in Q2 September 2008 over Q2 September 2007. Interest cost jumped 35.6% in Q2 September 2008 over Q2 September 2007.
In the midst of a credit turmoil gripping economies across the world, the markets will keenly watch the second quarter earnings of the country's two largest lenders State Bank of India (SBI) and ICICI Bank due today, 27 October 2008. The focus is on ICICI Bank for its exposure to some of the crisis-ridden institutions in the US including Lehman Brothers Holdings Inc. SBI's results will also be watched, as being the largest lender of the country it would serve a benchmark indicator for the entire sector. If the repeated assurances from the management of the two banks that they were on a sound footing and the impact of global crisis was negligible come true, it could turn out to be a major trigger for the beaten-down domestic bourses, which are keenly waiting for any positive cues.
While governments and central banks across the globe are expected to take further dramatic action to prop up the global financial system this week, there is concern it will not be enough to prevent companies from slashing production and jobs as sales get hit and financing remains difficult.
Central banks are likely to launch new coordinated emergency action this week to calm panic in financial markets. Reports indicate the US Federal Reserve is widely expected to announce a 50 basis-point cut in overnight rates on Wednesday, 29 October 2008 that would take them to 1%, the lowest level since June 2004, with some expecting an even deeper reduction to 0.75%.
Most Asian markets were trading lower today, 27 October 2008. China's Shanghai Composite was down 2.84% or 52.22 points at 1,787.39, Hong Kong's Hang Seng plunged 1.83% or 231.46 points at 12,386.92, South Korea's Seoul Composite slipped 1.49% or 13.95 points at 924.8, and Taiwan's Taiwan Weighted tumbled 5.24% or 239.78 points at 4,339.84. However, Japan's Nikkei was up 0.40% or 30.42 points at 7,679.50.
US markets declined in volatile trade on Friday, 24 October 2008 as fears of a full-blown global recession intensified and investors dumped risky assets. Dow plunged 312.30 points, or 3.59%, to 8,378.95. The S&P 500 index slipped 31.34 points, or 3.45%, to 876.77, and the Nasdaq Composite index lost 51.88 points, or 3.23%, to 1,552.03.
Back home, markets suffered severe setback on Friday 24 October 2008 plunging to three year lows mirroring weak global equities on worries about a sharp global economic slowdown and disappointment from the second quarter monetary policy review of the Reserve Bank of India. The BSE 30-share Sensex plunged 1070.63 points or 10.96% to 8,701.07, recording its biggest fall in percentage terms since May 2004 and the S&P CNX Nifty was down 359.50 points or 12.2% to 2,584.
Foreign institutional investors (FIIs) were net sellers worth Rs 1431.56 crore while mutual funds bought shares worth Rs 514.26 crore on Friday, 24 October 2008, according to provisional data on NSE.
US light crude for December 2008 delivery fell 22 cents to $63.93 a barrel today, 27 October 2008 after touching a 17-month low of $63.67 as an emergency production cut by OPEC was shrugged off by traders anxious about the onset of a deep global recession
Thursday, October 23, 2008
RBI Relaxes ECB Norms For Companies
In an attempt to infuse foreign capital inflow in the country and help corporates raise funds for projects, the government and RBI have relaxed the ECB norms or the norms on overseas borrowing.
According to the new rules notified by the RBI late on Wednesday, from now on, ECBs up to $500 million per borrower per financial year would be permitted for rupee expenditure or foreign currency expenditure for permissible end-uses under the automatic route. The norm of a minimum average maturity period of seven years for ECBs of more than $100 million for rupee capital expenditure by borrowers in the infrastructure sector has been dispensed with.
However, owing to the tight liquidity situation in the international markets, RBI has raised the ceiling of interest rates at which firms can borrow funds from abroad.
Further, in an attempt to provide a boost to the telecom sector, payment for obtaining license/permit for 3G Spectrum will be considered an eligible end - use for the purpose of ECB.
Till present, ECB proceeds were required to be parked overseas until actual expenditure takes place. Now, companies can either keep these funds offshore or keep it with the overseas branches or subsidiaries of Indian banks abroad or to remit these funds to India for credit to their rupee accounts with banks in India until it is used.
However, the norms clearly specify that these rupee funds will not be permitted to be used for investment in capital markets, real estate or for inter-corporate lending.
Other earlier restrictions including the $500-million limit per company per financial year under the automatic route as well as conditions relating to eligible borrower, recognised lender, end-use, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements remain unchanged.
It was only recently that the government widened the ECB window for infrastructure companies, allowing them to bring in $500m to meet rupee expenditure as against $100m previously. Also, the government revised the scope of infrastructure to include sectors like manufacturing, construction and mining in it.
These measures taken by the government will help corporates raise funds from the overseas market in wake of a global credit crunch and plummeting stock markets. It will encourage foreign exchange debt into India, as equity investing both by ways of private equity and tapping the capital markets hit a snag. Meanwhile, the RBI may further relax its monetary stance on Friday , when it undertakes a mid-year review of its annual policy.
According to the new rules notified by the RBI late on Wednesday, from now on, ECBs up to $500 million per borrower per financial year would be permitted for rupee expenditure or foreign currency expenditure for permissible end-uses under the automatic route. The norm of a minimum average maturity period of seven years for ECBs of more than $100 million for rupee capital expenditure by borrowers in the infrastructure sector has been dispensed with.
However, owing to the tight liquidity situation in the international markets, RBI has raised the ceiling of interest rates at which firms can borrow funds from abroad.
Further, in an attempt to provide a boost to the telecom sector, payment for obtaining license/permit for 3G Spectrum will be considered an eligible end - use for the purpose of ECB.
Till present, ECB proceeds were required to be parked overseas until actual expenditure takes place. Now, companies can either keep these funds offshore or keep it with the overseas branches or subsidiaries of Indian banks abroad or to remit these funds to India for credit to their rupee accounts with banks in India until it is used.
However, the norms clearly specify that these rupee funds will not be permitted to be used for investment in capital markets, real estate or for inter-corporate lending.
Other earlier restrictions including the $500-million limit per company per financial year under the automatic route as well as conditions relating to eligible borrower, recognised lender, end-use, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements remain unchanged.
It was only recently that the government widened the ECB window for infrastructure companies, allowing them to bring in $500m to meet rupee expenditure as against $100m previously. Also, the government revised the scope of infrastructure to include sectors like manufacturing, construction and mining in it.
These measures taken by the government will help corporates raise funds from the overseas market in wake of a global credit crunch and plummeting stock markets. It will encourage foreign exchange debt into India, as equity investing both by ways of private equity and tapping the capital markets hit a snag. Meanwhile, the RBI may further relax its monetary stance on Friday , when it undertakes a mid-year review of its annual policy.
Tata Consultancy Services Ltd (Q2 FY09)
Dollar revenue growth in-line despite material offshore shift; volumes surprise on upside
Growth continues to be driven by the non-Top 10 clients; Europe records strong growth
Broad-based growth across verticals; amongst services, ADM and Engineering drive growth
OPM expansion of 230 bps qoq was far above expectations; operating profit grew 18.8% qoq
Huge forex loss and higher depreciation impact net profit growth
Employee additions were strong; company confident of achieving FY09 hiring guidance
Growth continues to be driven by the non-Top 10 clients; Europe records strong growth
Broad-based growth across verticals; amongst services, ADM and Engineering drive growth
OPM expansion of 230 bps qoq was far above expectations; operating profit grew 18.8% qoq
Huge forex loss and higher depreciation impact net profit growth
Employee additions were strong; company confident of achieving FY09 hiring guidance
Post Market Report:22/10/2008
The market gave away a large part of the last two days' gains on
weak global markets, cautious outlook by IT firm Wipro and
sustained selling by foreign funds. The BSE Sensex slumped 513.49
points or 4.81%. Though in the red, both the both the BSE Mid-Cap
and Small-Cap indices outperformed the Sensex.
Index heavyweight Reliance Industries fell more than 5.5%. Tata
Steel fell more than 12% after Moody's Investors Service lowered
outlook on corporate family rating to negative from stable.
Sterlite Industries fell more than 10%. The market breadth was
weak.
IT stocks fell on Wipro's cautious outlook at the time of
announcing Q2 results before trading hours. Metal stocks declined
sharply on weak global metal prices. Banking stocks fell in weak
market after recent gains triggered by the central bank's repo rate
cut.
Down 6.79%, Japanese stocks led decline in Asian equities as poor
US corporate results and falling commodity prices fanned worries of
a protracted global economic slowdown. Stocks in Hong, China,
Singapore, South Korea and Taiwan were down by bewteen 1.62% to
5.07%.
European markets which opened after Indian market, fell on global
recession worries. Key benchmark indices in France, Germany and UK
fell by between 3.51% to 3.69%. Trading in US index futures
suggested the Dow would fall 185 points at the opening bell.
The BSE 30-share Sensex lost 513.49 points or 4.81% to 10,169.90.
The Sensex fell 555.17 points at day's low of 10,128.22 in late
trade. The index declined 198.84 points at the day's high of
10,484.85 in early trade.
The S&P CNX Nifty was down 169.75 points or 5.25% to 3,065.15.
After an earlier steep slide, the Sensex had risen 708.04 points or
7.09% in two trading sessions to 10,683.39 on Tuesday, 21 October
2008, from its close of 9,975.35 on 17 October 2008, boosted by a
repo rate cut by the central bank and on short covering on the
stock market regulator's warning to foreign funds against overseas
lending of shares.
There has been a massive erosion in investors' wealth this year.
The barometer index is down 10,117.09 points or 49.86% in the
calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11,036.87 points or 52.04% below its all-time
high of 21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 3,087 crore today as compared to a
turnover of Rs 3,882.49 crore on 21 October 2008.
Nifty October 2008 futures were at 3051, at a discount of 14.15
points as compared to spot closing of 3065.15. NSE's futures &
options (F&O) segment turnover was Rs 50,046.83 crore, which was
higher than Rs 49,845.05 crore on Tuesday, 21 October 2008.
The BSE Mid-Cap index was down 2.7% at 3,490.39 and the BSE
Small-Cap index was down 2.02% at 4,111.67. Both the indices
outperformed the Sensex.
BSE Metal index (down 7.9% to 5,619.45), BSE Realty index (down
7.57% to 2,433.70), BSE Bankex (down 5.78% to 5,504.48), BSE Oil &
Gas index (down 5.56% to 6,397.58), BSE Teck index (down 5.37% to
2,160.07) underperformed the Sensex.
BSE FMCG index (up 0.62% to 1,969.56), BSE HealthCare index (down
3.16 % to 3,199.32), BSE Consumer Durables index (down 3.63% to
2,189.33), BSE IT index (down .4.01% to 2,790.27), BSE PSU index
(down 4.22% to 5,046.33), BSE Power index (down 4.27% to 1,676.62),
BSE Auto index (down 4.42% to 2,985.16), BSE Capital Goods index
(down 4.45% to 7,226.93), underperformed the Sensex.
The market breadth was weak. On BSE, 778 shares advanced as
compared to 1733 that declined. 77 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) fell 5.83% to Rs 1,315.55,
ahead of Q2 September 2008 result tomorrow, 23 October 2008. The
Bombay High Court, on Tuesday, 21 October 2008, allowed the central
government to implead itself in the RIL-Reliance Natural Resources
(RNRL) case on gas supply after RNRL said it had no problem to the
government being a party in the matter. The hearing of the case is
now likely to continue after Diwali vacation.
Jaiprakash Associates (down 7.88% to Rs 72.50), ACC (down 7.11% to
Rs 452.15), Larsen & Toubro (down 5.34% to Rs 815.15) were the
major losers from the Sensex pack.
Reliance Infrastructure fell 6.56% despite 15.5% rise in net profit
to Rs 288.97 crore on 51.11% rise in total income to Rs 2674.86
crore in Q2 September 2008 over Q2 September 2007.
Metal stocks declined on slump in metal prices on the London Metal
Exchange. The BSE Metal index was down 7.9% and was the major loser
from the sectoral indices on BSE. Sterlite Industries, Hindustan
Zinc, National Aluminum Company, Steel Authority of India and Tata
Steel fell by between 7.13% to 10.04%.
India's largest steel maker by sales Tata Steel fell 12.04% after
Moody's Investors Service lowered outlook on corporate family
rating to negative from stable. The change in outlook reflects the
more challenging operating conditions now facing Tata Steel UK as a
result of the likely deterioration in demand in Europe and the UK
in the next 18 months, with declining steel prices and reduced
production volumes. Tata Steel, will declare Q2 September 2008
results on 24 October 2008.
India's largest aluminum maker by sales Hindalco Industries skidded
5.67% reports it may sell a part of its Rs 2,081.34-crore stake in
group companies, including Grasim Industries, Idea Cellular and
Aditya Birla Nuvo, to raise funds to repay a part of the $3-billion
bridge loan it obtained to buy Novelis.
Telecom stocks fell on reports telecom firms may have to shell out
Rs 6,000 crore for failing to verify their customers. India's
largest telecom services provider by market share Bharti Airtel
fell more than 7.5%. India's second largest telecom services
provider by market capitalisation Reliance Communications fell more
than 8.5%. The government on Monday, 20 October 2008, announced
that it would impose a fine of Rs 1,000 for every unverified
subscriber.
Banking majors fell after recent gains on hopes lower rates will
boost lending. ICICI Bank, HDFC Bank and State Bank of India fell
by between 3.64% to 8.04%. The BSE's banking sector index Bankex
declined 5.57%. ICICI Bank, State Bank of India and HDFC Bank have
a weightage of 24.21%, 22.44% and 20.55%, respectively, in the
Bankex.
Yes Bank was almost fell 2.92% in an otherwise weak market, as net
profit jumped 40.50% to Rs 63.62 crore in Q2 September 2008 over Q2
September 2008.
Bank of India declined 6.41% after providing for Rs 108.60 crore on
account of exposure to troubled US investment bank Lehman Brothers,
in Q2 September 2008.
Power Finance Corporation fell 0.09% even on 16.70%rise in net
profit to Rs 329.33 crore in Q2 September 2008 over Q2 September
2007.
The Reserve Bank of India cut repo rate by 100 basis points to 8%
on 20 October 2008. The repo rate is the rate at which the RBI
provides funds to banks against the collateral of government bonds
for a day to three days.
IT stocks slumped on overnight fall in American depository receipts
(ADRs) and on cautious outlook by IT major Wipro. Weak rupee which
augurs well for the sector did not stem the slide. The BSE IT index
fell 4.37%.
India's fourth largest IT exporter by sales Wipro fell 5.79% after
it said the outlook is cautious in the near term given the extent
of strain on the global economy. Wipro ADR fell 2.87% on Tuesday,
21 October 2008, ahead of the results. Wipro reported 56.13% spurt
in net profit to Rs 852.50 crore on a 15.48% increase in total
income to Rs 5551.60 crore in Q2 September 2008 over Q1 June 2008.
India's third largest IT exporter by sales Satyam Computer Services
lost 2.93%. Its ADR skidded 1.63% overnight. The company raised its
earnings guidance in rupee terms at the time of announcing Q2
September 2008 results on Friday, 17 October 2008.
India's second largest IT exporter by sales Infosys fell 3.56%.
Infosys ADR lost 5.21% overnight. India's largest IT services
provider by sales Tata Consultancy Services lost 2.63%, ahead of Q2
results today.
Infosys, Satyam Computer Services, Tata Consultancy Service and
Wipro have a weightage of 55.06%, 16.01%, 10.45% and 7.09%,
respectively, in the BSE IT index.
Tech Mahindra rose 1.3% as net profit rose 16.36% to Rs 295.98
crore in Q2 September 2008 over Q1 June 2008.
Compucom Software surged 4.93%, on proposal to consider issue of
bonus shares.
Geodesic rose 2.93% as net profit jumped 23.54% to Rs 48.95 in Q2
September 2008 over Q1 June 2008.
Educomp Solutions tumbled 11.47% on BSE, on profit taking, as net
profit soared 51.40% to Rs 25.39 crore in Q2 September 2008 over Q1
June 2008.
The rupee weakened to a record low against the dollar on Wednesday
as losses in the stock market fuelled concerns more foreigners
would likely pare their risk exposure and repatriate investments.
At the Interbank foreign exchange (Forex) market, the rupee, which
ended steady at 49.00/49.01 yesterday, fell by 25 paise to 49.25
against the greenback.
PSU OMCs fell despite crude oil falling nearly $3 to hit a one-week
low below $70 a barrel and extending a 4% slide in the previous
session, on mounting worries that output cuts by Organisation of
Petroleum Exporting Countries (OPEC) will not be enough to offset
slackening energy demand. BPCL, HPCL and Indian Oil Corporation
fell by between 2.09% to 8.15%. 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
Bongaigaon Refinery & Petrochemicals slumped 7.23%, on slipping
into the red in Q2 September 2008
Most realty stocks declined today after yesterday's rise despite
hopes cut in lending rates will spur demand for residential
properties. The BSE Realty index fell 7.57% and was the second
major loser from the sectoral indices on BSE. Realty majors, DLF,
Indiabulls Real Estate Unitech fell by between 5.05% to 12.75%.
BSE FMCG index rose 1.26% and was the only gainer from the sectoral
indices on BSE. United Spirits, Hindustan Unilever and REI Agro
rose by between 0.05% to 5.08%. India's largest cigarette maker by
sales ITC rose 3.05%. The company will announce the Q2 September
2008 result on 24 October 2008.
Rate sensitive auto stocks fell despite hopes rate cuts would spur
auto demand which is largely driven by finance. Maruti Suzuki
India, Mahindra & Mahindra, Hero Honda Motors declined between
1.95% to 7.14%.
India's largest commercial vehicle maker by sales Tata Motors
declined 4.94% on reports of missing its original Nano rollout
deadline of October-December 2008.
Ashapura Minechem dropped 19.7% on reports the company faces three
lawsuits in New York federal court seeking a total of more than $47
million.
Reliance Natural Resources declined 3.43% on BSE on muted growth in
net profit in Q2 September 2008.
Kirloskar Brothers jumped 7.41% on its consortium winning an order
worth Rs 1446 crore, with the company's share pegged at Rs 270
crore.
Pantaloon Retail India gained 0.07% as net profit surged 21.90% to
Rs 36.18 crore in Q1 September 2008 over Q1 September 2007.
Champagne Indage was locked at lower limit of 5%, a 52-week low on
plan to raise up to Rs 120 crore.
Max India provisionally ended down 6.57% as net profit declined
30.67% to Rs 11.73 crore in Q2 September 2008 over Q2 September
2007.
Piramal Healthcare fell 7.57% as net profit fell 14.2% to Rs 69.44
crore on 19.7% rise in total income to Rs 636.9 crore in Q2
September 2008 over Q2 September 2007.
Housing Development & Infrastructure clocked the highest volume of
99.89 lakh shares on BSE. Chambal Fertilisers & Chemicals (79.51
lakh shares), IFCI (65.13 lakh shares), Reliance Petroleum (61.34
lakh shares), Reliance Natural Resources (59.23 lakh shares) were
the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 189.32 crore
on BSE. Reliance Capital (Rs 169.53 crore), ICICI Bank (Rs 149.63
crore), Housing Development & Infrastructure (Rs 148.64 crore) and
State Bank of India (Rs 135.48 crore) were the other turnover
toppers in that order.
weak global markets, cautious outlook by IT firm Wipro and
sustained selling by foreign funds. The BSE Sensex slumped 513.49
points or 4.81%. Though in the red, both the both the BSE Mid-Cap
and Small-Cap indices outperformed the Sensex.
Index heavyweight Reliance Industries fell more than 5.5%. Tata
Steel fell more than 12% after Moody's Investors Service lowered
outlook on corporate family rating to negative from stable.
Sterlite Industries fell more than 10%. The market breadth was
weak.
IT stocks fell on Wipro's cautious outlook at the time of
announcing Q2 results before trading hours. Metal stocks declined
sharply on weak global metal prices. Banking stocks fell in weak
market after recent gains triggered by the central bank's repo rate
cut.
Down 6.79%, Japanese stocks led decline in Asian equities as poor
US corporate results and falling commodity prices fanned worries of
a protracted global economic slowdown. Stocks in Hong, China,
Singapore, South Korea and Taiwan were down by bewteen 1.62% to
5.07%.
European markets which opened after Indian market, fell on global
recession worries. Key benchmark indices in France, Germany and UK
fell by between 3.51% to 3.69%. Trading in US index futures
suggested the Dow would fall 185 points at the opening bell.
The BSE 30-share Sensex lost 513.49 points or 4.81% to 10,169.90.
The Sensex fell 555.17 points at day's low of 10,128.22 in late
trade. The index declined 198.84 points at the day's high of
10,484.85 in early trade.
The S&P CNX Nifty was down 169.75 points or 5.25% to 3,065.15.
After an earlier steep slide, the Sensex had risen 708.04 points or
7.09% in two trading sessions to 10,683.39 on Tuesday, 21 October
2008, from its close of 9,975.35 on 17 October 2008, boosted by a
repo rate cut by the central bank and on short covering on the
stock market regulator's warning to foreign funds against overseas
lending of shares.
There has been a massive erosion in investors' wealth this year.
The barometer index is down 10,117.09 points or 49.86% in the
calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11,036.87 points or 52.04% below its all-time
high of 21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 3,087 crore today as compared to a
turnover of Rs 3,882.49 crore on 21 October 2008.
Nifty October 2008 futures were at 3051, at a discount of 14.15
points as compared to spot closing of 3065.15. NSE's futures &
options (F&O) segment turnover was Rs 50,046.83 crore, which was
higher than Rs 49,845.05 crore on Tuesday, 21 October 2008.
The BSE Mid-Cap index was down 2.7% at 3,490.39 and the BSE
Small-Cap index was down 2.02% at 4,111.67. Both the indices
outperformed the Sensex.
BSE Metal index (down 7.9% to 5,619.45), BSE Realty index (down
7.57% to 2,433.70), BSE Bankex (down 5.78% to 5,504.48), BSE Oil &
Gas index (down 5.56% to 6,397.58), BSE Teck index (down 5.37% to
2,160.07) underperformed the Sensex.
BSE FMCG index (up 0.62% to 1,969.56), BSE HealthCare index (down
3.16 % to 3,199.32), BSE Consumer Durables index (down 3.63% to
2,189.33), BSE IT index (down .4.01% to 2,790.27), BSE PSU index
(down 4.22% to 5,046.33), BSE Power index (down 4.27% to 1,676.62),
BSE Auto index (down 4.42% to 2,985.16), BSE Capital Goods index
(down 4.45% to 7,226.93), underperformed the Sensex.
The market breadth was weak. On BSE, 778 shares advanced as
compared to 1733 that declined. 77 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) fell 5.83% to Rs 1,315.55,
ahead of Q2 September 2008 result tomorrow, 23 October 2008. The
Bombay High Court, on Tuesday, 21 October 2008, allowed the central
government to implead itself in the RIL-Reliance Natural Resources
(RNRL) case on gas supply after RNRL said it had no problem to the
government being a party in the matter. The hearing of the case is
now likely to continue after Diwali vacation.
Jaiprakash Associates (down 7.88% to Rs 72.50), ACC (down 7.11% to
Rs 452.15), Larsen & Toubro (down 5.34% to Rs 815.15) were the
major losers from the Sensex pack.
Reliance Infrastructure fell 6.56% despite 15.5% rise in net profit
to Rs 288.97 crore on 51.11% rise in total income to Rs 2674.86
crore in Q2 September 2008 over Q2 September 2007.
Metal stocks declined on slump in metal prices on the London Metal
Exchange. The BSE Metal index was down 7.9% and was the major loser
from the sectoral indices on BSE. Sterlite Industries, Hindustan
Zinc, National Aluminum Company, Steel Authority of India and Tata
Steel fell by between 7.13% to 10.04%.
India's largest steel maker by sales Tata Steel fell 12.04% after
Moody's Investors Service lowered outlook on corporate family
rating to negative from stable. The change in outlook reflects the
more challenging operating conditions now facing Tata Steel UK as a
result of the likely deterioration in demand in Europe and the UK
in the next 18 months, with declining steel prices and reduced
production volumes. Tata Steel, will declare Q2 September 2008
results on 24 October 2008.
India's largest aluminum maker by sales Hindalco Industries skidded
5.67% reports it may sell a part of its Rs 2,081.34-crore stake in
group companies, including Grasim Industries, Idea Cellular and
Aditya Birla Nuvo, to raise funds to repay a part of the $3-billion
bridge loan it obtained to buy Novelis.
Telecom stocks fell on reports telecom firms may have to shell out
Rs 6,000 crore for failing to verify their customers. India's
largest telecom services provider by market share Bharti Airtel
fell more than 7.5%. India's second largest telecom services
provider by market capitalisation Reliance Communications fell more
than 8.5%. The government on Monday, 20 October 2008, announced
that it would impose a fine of Rs 1,000 for every unverified
subscriber.
Banking majors fell after recent gains on hopes lower rates will
boost lending. ICICI Bank, HDFC Bank and State Bank of India fell
by between 3.64% to 8.04%. The BSE's banking sector index Bankex
declined 5.57%. ICICI Bank, State Bank of India and HDFC Bank have
a weightage of 24.21%, 22.44% and 20.55%, respectively, in the
Bankex.
Yes Bank was almost fell 2.92% in an otherwise weak market, as net
profit jumped 40.50% to Rs 63.62 crore in Q2 September 2008 over Q2
September 2008.
Bank of India declined 6.41% after providing for Rs 108.60 crore on
account of exposure to troubled US investment bank Lehman Brothers,
in Q2 September 2008.
Power Finance Corporation fell 0.09% even on 16.70%rise in net
profit to Rs 329.33 crore in Q2 September 2008 over Q2 September
2007.
The Reserve Bank of India cut repo rate by 100 basis points to 8%
on 20 October 2008. The repo rate is the rate at which the RBI
provides funds to banks against the collateral of government bonds
for a day to three days.
IT stocks slumped on overnight fall in American depository receipts
(ADRs) and on cautious outlook by IT major Wipro. Weak rupee which
augurs well for the sector did not stem the slide. The BSE IT index
fell 4.37%.
India's fourth largest IT exporter by sales Wipro fell 5.79% after
it said the outlook is cautious in the near term given the extent
of strain on the global economy. Wipro ADR fell 2.87% on Tuesday,
21 October 2008, ahead of the results. Wipro reported 56.13% spurt
in net profit to Rs 852.50 crore on a 15.48% increase in total
income to Rs 5551.60 crore in Q2 September 2008 over Q1 June 2008.
India's third largest IT exporter by sales Satyam Computer Services
lost 2.93%. Its ADR skidded 1.63% overnight. The company raised its
earnings guidance in rupee terms at the time of announcing Q2
September 2008 results on Friday, 17 October 2008.
India's second largest IT exporter by sales Infosys fell 3.56%.
Infosys ADR lost 5.21% overnight. India's largest IT services
provider by sales Tata Consultancy Services lost 2.63%, ahead of Q2
results today.
Infosys, Satyam Computer Services, Tata Consultancy Service and
Wipro have a weightage of 55.06%, 16.01%, 10.45% and 7.09%,
respectively, in the BSE IT index.
Tech Mahindra rose 1.3% as net profit rose 16.36% to Rs 295.98
crore in Q2 September 2008 over Q1 June 2008.
Compucom Software surged 4.93%, on proposal to consider issue of
bonus shares.
Geodesic rose 2.93% as net profit jumped 23.54% to Rs 48.95 in Q2
September 2008 over Q1 June 2008.
Educomp Solutions tumbled 11.47% on BSE, on profit taking, as net
profit soared 51.40% to Rs 25.39 crore in Q2 September 2008 over Q1
June 2008.
The rupee weakened to a record low against the dollar on Wednesday
as losses in the stock market fuelled concerns more foreigners
would likely pare their risk exposure and repatriate investments.
At the Interbank foreign exchange (Forex) market, the rupee, which
ended steady at 49.00/49.01 yesterday, fell by 25 paise to 49.25
against the greenback.
PSU OMCs fell despite crude oil falling nearly $3 to hit a one-week
low below $70 a barrel and extending a 4% slide in the previous
session, on mounting worries that output cuts by Organisation of
Petroleum Exporting Countries (OPEC) will not be enough to offset
slackening energy demand. BPCL, HPCL and Indian Oil Corporation
fell by between 2.09% to 8.15%. 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
Bongaigaon Refinery & Petrochemicals slumped 7.23%, on slipping
into the red in Q2 September 2008
Most realty stocks declined today after yesterday's rise despite
hopes cut in lending rates will spur demand for residential
properties. The BSE Realty index fell 7.57% and was the second
major loser from the sectoral indices on BSE. Realty majors, DLF,
Indiabulls Real Estate Unitech fell by between 5.05% to 12.75%.
BSE FMCG index rose 1.26% and was the only gainer from the sectoral
indices on BSE. United Spirits, Hindustan Unilever and REI Agro
rose by between 0.05% to 5.08%. India's largest cigarette maker by
sales ITC rose 3.05%. The company will announce the Q2 September
2008 result on 24 October 2008.
Rate sensitive auto stocks fell despite hopes rate cuts would spur
auto demand which is largely driven by finance. Maruti Suzuki
India, Mahindra & Mahindra, Hero Honda Motors declined between
1.95% to 7.14%.
India's largest commercial vehicle maker by sales Tata Motors
declined 4.94% on reports of missing its original Nano rollout
deadline of October-December 2008.
Ashapura Minechem dropped 19.7% on reports the company faces three
lawsuits in New York federal court seeking a total of more than $47
million.
Reliance Natural Resources declined 3.43% on BSE on muted growth in
net profit in Q2 September 2008.
Kirloskar Brothers jumped 7.41% on its consortium winning an order
worth Rs 1446 crore, with the company's share pegged at Rs 270
crore.
Pantaloon Retail India gained 0.07% as net profit surged 21.90% to
Rs 36.18 crore in Q1 September 2008 over Q1 September 2007.
Champagne Indage was locked at lower limit of 5%, a 52-week low on
plan to raise up to Rs 120 crore.
Max India provisionally ended down 6.57% as net profit declined
30.67% to Rs 11.73 crore in Q2 September 2008 over Q2 September
2007.
Piramal Healthcare fell 7.57% as net profit fell 14.2% to Rs 69.44
crore on 19.7% rise in total income to Rs 636.9 crore in Q2
September 2008 over Q2 September 2007.
Housing Development & Infrastructure clocked the highest volume of
99.89 lakh shares on BSE. Chambal Fertilisers & Chemicals (79.51
lakh shares), IFCI (65.13 lakh shares), Reliance Petroleum (61.34
lakh shares), Reliance Natural Resources (59.23 lakh shares) were
the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 189.32 crore
on BSE. Reliance Capital (Rs 169.53 crore), ICICI Bank (Rs 149.63
crore), Housing Development & Infrastructure (Rs 148.64 crore) and
State Bank of India (Rs 135.48 crore) were the other turnover
toppers in that order.
Wednesday, October 22, 2008
Market slips on weak Asian cues
The key benchmark indices snapped last two sessions' rally, opening
weak, on subdued Asian markets. Cautious outlook by IT firm Wipro
at the time of announcing Q2 results and sustained selling by
foreign funds weighed on the sentiments. Sensex was down 247.63
points or 2.32% and was near the day's low.
IT stocks were the major losers from the Sensex pack on Wipro's
cautious outlook. Tata Steel and Sterlite Industries fell more than
4% each, on weak global metal prices. The market breadth was weak
Asian stocks fell as poor US corporate results and falling
commodity prices fanned worries of a protracted global economic
slowdown. Key benchmark indices in Hong Kong, Japan, China, South
Korea, Singapore and Taiwan were down by between 0.96% to 5.28%.
At 10:18 IST, the BSE 30-share Sensex was down 247.63 points or
2.32% to 10,435.76. The Sensex fell 271.45 points at day's low of
10,411.94 in early trade. The index declined 199.63 points at the
day's high of 10,483.76 in early trade.
The S&P CNX Nifty was down 71.45 points or 2.21% to 3,163.45.
The BSE Mid-Cap index was down 1.22% at 3,543.32 and The BSE
Small-Cap index was down 0.54% at 4,173.75. Both the indices
outperformed the Sensex.
The market breadth was weak. On BSE, 407 shares advanced as
compared to 802 that declined. 37 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries fell 2.36% to Rs 1,363.90, ahead of
Q2 September 2008 result tomorrow, 23 October 2008.
Tata Steel (down 4.67% to Rs 265.05), Sterlite Industries (down
4.31% to Rs 282), Grasim Industries (down 3.39% to 1,172), Reliance
Communications (down 3.78% to Rs 248.45) were the losers from the
Sensex pack.
India's largest cigarette maker by sales ITC rose 1.01% and was the
lone gainer from the Sensex pack.
IT stocks slumped on overnight fall in American depository receipts
(ADRs) and on cautious outlook by IT major Wipro. Weak rupee which
augurs well for the sector did not stem the slide. The BSE IT index
fell 3.31% and was the biggest loser from the sectoal indices on
BSE.
India's fourth largest IT exporter by sales Wipro fell 3.85% after
it said the outlook is cautious in the near term given the extent
of strain on the global economy. Wipro ADR fell 2.87% on Tuesday,
21 October 2008, ahead of the results. Wipro reported 56.13% spurt
in net profit to Rs 852.50 crore on a 15.48% increase in total
income to Rs 5551.60 crore in Q2 September 2008 over Q1 June 2008.
India's third largest IT exporter by sales Satyam Computer Services
lost 1.34%. Its ADR skidded 1.63% overnight. The company raised its
earnings guidance in rupee terms at the time of announcing Q2
September 2008 results on Friday, 17 October 2008.
India's second largest IT exporter by sales Infosys fell 4.56%.
Infosys ADR lost 5.21% overnight. India's largest IT services
provider by sales Tata Consultancy Services lost 3.76%, ahead of Q2
results today.
Infosys, Satyam Computer Services, Tata Consultancy Service and
Wipro have a weightage of 55.06%, 16.01%, 10.45% and 7.09%,
respectively, in the BSE IT index.
The rupee fell on Wednesday, matching an all-time low hit earlier
this month. The partially convertible rupee was at 49.26/28 per
dollar, weaker than Tuesday's close of 49.04/06. A weak rupee
results in higher revenues for IT companies as they earn most of
their revenues in dollar terms.
India's largest aluminum maker by sales Hindalco Industries skidded
1.09% on reports it may sell a part of its Rs 2,081.34-crore stake
in group companies, including Grasim Industries, Idea Cellular and
Aditya Birla Nuvo, to raise funds to repay a part of the $3-billion
bridge loan it obtained to buy Novelis.
India's largest commercial vehicle maker by sales Tata Motors
declined 1.96% on reports of missing its original Nano rollout
deadline of October-December 2008
Ashok Leyland fell 1.99% on 16.31% decline in net profit to Rs
67.24 crore on 6.9% rise in sales to Rs 1866.40 crore in Q2
September 2008 over Q2 September 2007.
Punjab Tractors surged 6.22% as net profit jumped 178.47% to Rs
27.29 crore on 48.85% rise in sales to Rs 307.98 crore in Q2
September 2008 over Q2 September 2007.
Reliance Power fell 1.5% on reports it has tied up with a
consortium of domestic banks led by IDBI Bank to secure the debt
portion for the second phase of a power project in Uttar Pradesh.
The consortium will lend around Rs 2000 crore out of the total
project cost of about Rs 2700 crore.
Pantaloon Retail India rose 1.08% on reports of exiting airport
retailing joint venture, Alpha Future Retail, with the UK-based
Alpha Airports Group Plc due to differences on some operational
issues.
J Kumar Infraprojects was flat at Rs 73,25 on reporting net profit
of Rs 6.21 crore on slaes of Rs 76.89 crore in the quarter ended
September 2008.
Power Finance Corporation gained 1.2% as net profit rose 16.69% to
Rs 329.33 crore on 29.12% rise in sales to Rs 1584.98 crore in Q2
September 2008 over Q2 September 2007.
weak, on subdued Asian markets. Cautious outlook by IT firm Wipro
at the time of announcing Q2 results and sustained selling by
foreign funds weighed on the sentiments. Sensex was down 247.63
points or 2.32% and was near the day's low.
IT stocks were the major losers from the Sensex pack on Wipro's
cautious outlook. Tata Steel and Sterlite Industries fell more than
4% each, on weak global metal prices. The market breadth was weak
Asian stocks fell as poor US corporate results and falling
commodity prices fanned worries of a protracted global economic
slowdown. Key benchmark indices in Hong Kong, Japan, China, South
Korea, Singapore and Taiwan were down by between 0.96% to 5.28%.
At 10:18 IST, the BSE 30-share Sensex was down 247.63 points or
2.32% to 10,435.76. The Sensex fell 271.45 points at day's low of
10,411.94 in early trade. The index declined 199.63 points at the
day's high of 10,483.76 in early trade.
The S&P CNX Nifty was down 71.45 points or 2.21% to 3,163.45.
The BSE Mid-Cap index was down 1.22% at 3,543.32 and The BSE
Small-Cap index was down 0.54% at 4,173.75. Both the indices
outperformed the Sensex.
The market breadth was weak. On BSE, 407 shares advanced as
compared to 802 that declined. 37 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries fell 2.36% to Rs 1,363.90, ahead of
Q2 September 2008 result tomorrow, 23 October 2008.
Tata Steel (down 4.67% to Rs 265.05), Sterlite Industries (down
4.31% to Rs 282), Grasim Industries (down 3.39% to 1,172), Reliance
Communications (down 3.78% to Rs 248.45) were the losers from the
Sensex pack.
India's largest cigarette maker by sales ITC rose 1.01% and was the
lone gainer from the Sensex pack.
IT stocks slumped on overnight fall in American depository receipts
(ADRs) and on cautious outlook by IT major Wipro. Weak rupee which
augurs well for the sector did not stem the slide. The BSE IT index
fell 3.31% and was the biggest loser from the sectoal indices on
BSE.
India's fourth largest IT exporter by sales Wipro fell 3.85% after
it said the outlook is cautious in the near term given the extent
of strain on the global economy. Wipro ADR fell 2.87% on Tuesday,
21 October 2008, ahead of the results. Wipro reported 56.13% spurt
in net profit to Rs 852.50 crore on a 15.48% increase in total
income to Rs 5551.60 crore in Q2 September 2008 over Q1 June 2008.
India's third largest IT exporter by sales Satyam Computer Services
lost 1.34%. Its ADR skidded 1.63% overnight. The company raised its
earnings guidance in rupee terms at the time of announcing Q2
September 2008 results on Friday, 17 October 2008.
India's second largest IT exporter by sales Infosys fell 4.56%.
Infosys ADR lost 5.21% overnight. India's largest IT services
provider by sales Tata Consultancy Services lost 3.76%, ahead of Q2
results today.
Infosys, Satyam Computer Services, Tata Consultancy Service and
Wipro have a weightage of 55.06%, 16.01%, 10.45% and 7.09%,
respectively, in the BSE IT index.
The rupee fell on Wednesday, matching an all-time low hit earlier
this month. The partially convertible rupee was at 49.26/28 per
dollar, weaker than Tuesday's close of 49.04/06. A weak rupee
results in higher revenues for IT companies as they earn most of
their revenues in dollar terms.
India's largest aluminum maker by sales Hindalco Industries skidded
1.09% on reports it may sell a part of its Rs 2,081.34-crore stake
in group companies, including Grasim Industries, Idea Cellular and
Aditya Birla Nuvo, to raise funds to repay a part of the $3-billion
bridge loan it obtained to buy Novelis.
India's largest commercial vehicle maker by sales Tata Motors
declined 1.96% on reports of missing its original Nano rollout
deadline of October-December 2008
Ashok Leyland fell 1.99% on 16.31% decline in net profit to Rs
67.24 crore on 6.9% rise in sales to Rs 1866.40 crore in Q2
September 2008 over Q2 September 2007.
Punjab Tractors surged 6.22% as net profit jumped 178.47% to Rs
27.29 crore on 48.85% rise in sales to Rs 307.98 crore in Q2
September 2008 over Q2 September 2007.
Reliance Power fell 1.5% on reports it has tied up with a
consortium of domestic banks led by IDBI Bank to secure the debt
portion for the second phase of a power project in Uttar Pradesh.
The consortium will lend around Rs 2000 crore out of the total
project cost of about Rs 2700 crore.
Pantaloon Retail India rose 1.08% on reports of exiting airport
retailing joint venture, Alpha Future Retail, with the UK-based
Alpha Airports Group Plc due to differences on some operational
issues.
J Kumar Infraprojects was flat at Rs 73,25 on reporting net profit
of Rs 6.21 crore on slaes of Rs 76.89 crore in the quarter ended
September 2008.
Power Finance Corporation gained 1.2% as net profit rose 16.69% to
Rs 329.33 crore on 29.12% rise in sales to Rs 1584.98 crore in Q2
September 2008 over Q2 September 2007.
Pre Market Report 22/10/2008
Weak Asian stocks may pull the market lower after last two days' rebound from an earlier steep fall caused by global recession worries. Cautious outlook by IT firm Wipro at the time of announcing Q2 results today and sustained selling by foreign funds may continue to weigh on the sentiments. But short covering following the stock market regulator Securities & Exchange Board of India's warnings to foreign funds against overseas lending of shares and signs of a soft credit policy may cap the downside.
At the time of announcement of Q2 September 2008 results just a while back, Wipro said the global economic environment has deteriorated significantly over the past couple of months, and our outlook is cautious in the near term given the extent of strain on the global economy. Wipro's net profit rose 19% to Rs 978 crore on 36% growth in revenue to Rs 6507 crore in Q2 September 2008 over Q2 September 2007.
Asian stocks fell as poor US corporate results and falling commodity prices fanned worries of a protracted global economic slowdown. Key benchmark indices in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were down by between 0.9% to 3%.
Overnight, US stocks fell on an array of disappointing corporate results from companies such as industrial machine maker Caterpillar Inc and the largest publicly traded copper producer Freeport-McMoRan Copper & Gold Inc. The Standard & Poor's 500 index dropped 3.1%.
The market regulator Sebi, on Monday, 20 October 2008, said it has disapproved overseas lending and borrowing activity of foreign funds and the consequent selling pressure in the cash market in India. Sebi said this after data showed FIIs had lent equities worth Rs 348 crore to overseas entities for the purpose of short selling, during 10 October-14 October 2008.
Signs of a soft interest rate regime may support stocks as lower interest rates means lower borrowing costs for corporates. The Reserve Bank of India (RBI), on Monday, 20 October 2008, cut the repo rate, by 100 basis points to 8%, with immediate effect. The repo rate is the rate at which the RBI provides funds to banks against the collateral of government bonds for a day to three days.
Oil fell over $1 to around $71 a barrel on Wednesday, 22 October 2008, extending a 4% slide in the previous session, on mounting worries that output cuts by the oil cartel Organisation of Petroleum Exporting Countries (Opec) will not be enough to offset slackening energy demand in leading consumers.
The Sensex jumped 708.04 points or 7.09% in two trading sessions to 10,683.39 on Tuesday, 21 October 2008, from its close of 9,975.35 on 17 October 2008.
At the time of announcement of Q2 September 2008 results just a while back, Wipro said the global economic environment has deteriorated significantly over the past couple of months, and our outlook is cautious in the near term given the extent of strain on the global economy. Wipro's net profit rose 19% to Rs 978 crore on 36% growth in revenue to Rs 6507 crore in Q2 September 2008 over Q2 September 2007.
Asian stocks fell as poor US corporate results and falling commodity prices fanned worries of a protracted global economic slowdown. Key benchmark indices in Hong Kong, Japan, China, South Korea, Singapore and Taiwan were down by between 0.9% to 3%.
Overnight, US stocks fell on an array of disappointing corporate results from companies such as industrial machine maker Caterpillar Inc and the largest publicly traded copper producer Freeport-McMoRan Copper & Gold Inc. The Standard & Poor's 500 index dropped 3.1%.
The market regulator Sebi, on Monday, 20 October 2008, said it has disapproved overseas lending and borrowing activity of foreign funds and the consequent selling pressure in the cash market in India. Sebi said this after data showed FIIs had lent equities worth Rs 348 crore to overseas entities for the purpose of short selling, during 10 October-14 October 2008.
Signs of a soft interest rate regime may support stocks as lower interest rates means lower borrowing costs for corporates. The Reserve Bank of India (RBI), on Monday, 20 October 2008, cut the repo rate, by 100 basis points to 8%, with immediate effect. The repo rate is the rate at which the RBI provides funds to banks against the collateral of government bonds for a day to three days.
Oil fell over $1 to around $71 a barrel on Wednesday, 22 October 2008, extending a 4% slide in the previous session, on mounting worries that output cuts by the oil cartel Organisation of Petroleum Exporting Countries (Opec) will not be enough to offset slackening energy demand in leading consumers.
The Sensex jumped 708.04 points or 7.09% in two trading sessions to 10,683.39 on Tuesday, 21 October 2008, from its close of 9,975.35 on 17 October 2008.
Tuesday, October 21, 2008
Post Market Report:21/10/2008
The central bank's rate cut, higher global markets and short
covering on the stock market regulator Securities & Exchange Board
of India (Sebi)'s warning to foreign funds against overseas lending
and borrowing of Indian securities, boosted the domestic bourses
today. But intraday volatility was high. The BSE Sensex rose 460.30
points or 4.5%, extending Monday's (20 October 2008) 2.48% gain.
Index heavyweight Reliance Industries spurted. Tata Consultancy
Services rose more than 12.5%. Jaiprakash Associates spurted more
than 16% on good Q2 September 2008 results. Tata Consultancy
Services rose more than 13%, Tata Steel rose more than 10% and
Reliance Communications rose more than 11%. The market breadth was
strong.
European markets and some Asian markets rose as France said it will
invest $14 billion in banks and the US moved toward a second
stimulus package.
Sebi has disapproved of the overseas lending and borrowing activity
of FIIs and the consequent selling pressure in the cash market in
India. The Sebi warning to FIIs against overseas lending and
borrowing came after the data showed FIIs had lent equities worth
Rs 348 crore to overseas entities for the purpose of short selling,
during 10 October-14 October 2008.
Fall in interest rate boosts stocks as it results in lower
borrowing costs for corporates. The Reserve Bank of India (RBI), on
Monday, 20 October 2008, cut the repo rate, by 100 basis points to
8%, with immediate effect. The repo rate is the rate at which the
RBI provides funds to banks against the collateral of government
bonds for a day to three days.
The BSE 30-share Sensex rose 460.30 points or 4.5% to 10,683.39.
The index surged 527.11 points at the day's high of 10,750.20 in
mid-afternoon trade. The Sensex rose 27.14 points at day's low of
10,250.23 in early trade.
The S&P CNX Nifty was up 112.10 points or 3.59% to 3,234.90.
The Sensex has risen 708.04 points or 7.09% in two trading sessions
from its close of 9,975.35 on 17 October 2008. But the barometer
index is down 9,603.06 points or 47.33% in the calendar year 2008
so far from its close of 20,286.99 on 31 December 2007. It is
10,523.38 points or 49.62% below its all-time high of 21,206.77
struck on 10 January 2008.
BSE clocked turnover of Rs 3857 crore today as compared to a
turnover of Rs 3.697.57 crore on 20 October 2008.
Nifty October 2008 futures were at 3245, at a premium of 10.10
points as compared to spot closing of 3234.90. NSE's futures &
options (F&O) segment turnover was Rs 49,845.05 crore, which was
lower than Rs 51,272.30 crore on Monday, 20 October 2008.
The BSE Mid-Cap index was up 2.31% at 3587.24 and The BSE Small-Cap
index was up 2.03% at 4,196.28. Both the indices underperformed the
Sensex.
BSE Consumer Durables index (up 8.95% to 2,271.82), BSE Realty
index (up 8.32% to 2,632.93), BSE IT index (up 6.03% to 2,906.83),
BSE Capital Goods index (up 5.48% to 7,563.42), BSE Teck index (up
4.66% to 2,282.64) outperformed the Sensex.
BSE PSU index (up 1.04% to 5,268.67), BSE HealthCare index (up 1.33
% to 3,302.82), BSE Auto index (up 1.65% to 3,123.27), BSE Bankex
(up 2.57% to 5,842.23), BSE FMCG index (up 3.15% to 1,957.36), BSE
Metal index (up 3.64% to 6,101.76), BSE Oil & Gas index (up 3.86%
to 6,774.28), BSE Power index (up 4.36% to 1,751.40),
underperformed the Sensex.
The market breadth was strong. On the BSE, 1,613 shares advanced as
compared to 975 that declined. 63 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries rose 5.73% to Rs 1,397, rose ahead
of Q2 results. The stock came off the session's high of Rs
1,424.60. The company is scheduled to announce its Q2 September
2008 result on 23 October 2008.
Tata Steel (up 10.2% to Rs 278.30), Reliance Communications (up
11.25% to Rs 258.20), Tata Power Company (up 9.6% to Rs 789.55),
Sterlite Industries (up 8.59% to Rs 294.70) were the major gainers
from the Sensex pack.
Mahindra & Mahindra (down 2.1% to Rs 408.50) and Hindalco
Industries (down 1.68% to Rs 64.35) were the major losers from the
Sensex pack.
IT stocks gained on overnight spurt in American depository receipts
(ADRs) and amid steady rupee. The BSE IT index rose 6.03% and was
the third biggest gainer from the sectoal indices on BSE.
India's third largest IT exporter by sales Satyam Computer Services
rose 9.84%. Its ADR jumped 6.46%. The company raised its earnings
guidance in rupee terms at the time of announcing Q2 September 2008
results on Friday, 17 October 2008.
India's second largest IT exporter by sales Infosys rose 3.9%.
Infosys ADR gained 7.94%. India's largest IT services provider by
sales Tata Consultancy Services jumped 12.86%. India's fourth
largest IT exporter by sales Wipro rose 5.61%. Wipro ADR rose
0.84%.
NIIT Technologies gained 8.42%, as net profit rose 20.10% to Rs
29.35 crore in Q2 September 2008 over Q1 June 2008.
Zigma Software fell 2.44% on board meet on 27 October 2008, to
consider issue of bonus shares.
PSI Data Systems hit 20% upper circuit on board approving a
proposal received from promoter group to acquire the public
shareholding of the company from the market through open offer, and
to delist equity shares of the company from the Bombay Stock
Exchange.
The Indian rupee was little changed in thin trade on Tuesday as a
strike by central bank employees affected dealing.The partially
convertible rupee was at 48.9550/9700 per dollar, compared to its
previous close of 48.97/98 on Monday. A weak rupee results in
higher revenues for IT companies as they earn most of their
revenues in dollar terms.
Banking majors extended yesterday's (20 October 2008) gains on
hopes lower rates will boost lending. ICICI Bank, HDFC Bank and
State Bank of India rose between 0.31% to 4.86%.
The BSE's banking sector index Bankex rose 2.57%. ICICI Bank, State
Bank of India and HDFC Bank have a weightage of 24.21%, 22.44% and
20.55%, respectively, in the Bankex.
India's largest home loan lender by operating income HDFC rose
5.25%. LIC Housing Finance surged 7.83% as net profit rose 16.05%
to Rs 135.06 crore on 34.86% rise in total income to Rs 707.72
crore in Q2 September 2008 over Q2 September 2007.
Indiabulls Financial Services spurted 8.74% on reports of good loan
recovery in Q2 September 2008.
The BSE Consumer Durables index rose 8.95% and was the biggest
gainer from the sectoral indices on BSE. All the stocks rose from
the BSE Consumer Durables index on hopes lower interest rates will
spur demand. Gitanjali Gems, Rajesh Exports, Videocon Industries
rose by between 1.46% to 7.26%.
Titan Industries surged 17.39% as net profit surged 88.21% rise in
net profit to Rs 87.14 crore on 53.04% rise in sales to Rs 1088.76
crore in Q2 September 2008 over Q2 September 2007.
Most realty stocks rose today after yesterday's slide as cut in
lending rates will spur demand for residential properties. THE BSE
Realty index rose 8.32% and was the second major gainer from the
sectoral indices on BSE. Out of 14 real estate stocks from BSE
Realty index, 11 stocks rose rest declined. Realty majors, DLF,
Indiabulls Real Estate Unitech rose by between between to 5.01% to
27.65%.
DLF, India bulls Real Estate, Unitech have a weightage of 42.53%
22.09% and 11.03% respectively in the BSE Realty index.
Peninsula Land rose 9.2% on reports of exploring the option of
hiving off land assets to mitigate risks and address the ongoing
financial turmoil.
PSU OMC stocks fell despite crude oil falling for the first time
since last three days. BPCL, HPCL and Indian Oil Corporation were
down by between 0.96% to 6.45%. State-run oil marketing firms
suffer revenue loss on domestic sale of petrol, diesel, LPG and
kerosene at a controlled price.
Crude oil for November 2008 delivery fell as much as $1.13, or 1.5
%, to $73.12 a barrel on the New York Mercantile Exchange today.
Shipping companies rose even as the Baltic Dry index, a measure of
shipping costs for commodities, fell for 10th consecutive trading
session in London on Monday, 20 October 2008. Great Eastern
Shipping Company, Mercator Lines and Shipping Corporation of India
rose by between 3.52% to 7.03%.
India's largest commercial vehicle maker by sales Tata Motors rose
1.58% despite reports of rights issue getting a poor response.
India's largest motorbike maker by sales Hero Honda Motors rose
2.66% as net profit jumped 49.9% to Rs 306.30 crore on 36.15% rise
in total income to Rs 3255.93 crore in Q2 September 2008 over Q2
September 2007.
Jaiprakash Associates surged 16.25% as net profit jumped 96% to Rs
203.13 crore on 39.51% rise in total income to Rs 1286.63 crore in
Q2September 2008 over Q2 September 2007.
India's largest electric equipment maker by sales Bharat Heavy
Electricals rose 4.37% on bagging a Rs 641-crore contract for
setting up a 412 megawatt hydro-electric project in Himachal
Pradesh.
India's second largest steel maker by sales Steel Authority of
India fell 2.5% despite 18.19% rise in net profit to Rs 2009.60
crore on 33.7% rise in total income to Rs 12660.99 crore in Q2
September 2008 over Q2 September 2007.
Hindustan Zinc surged 3.47% even as net profit fell 17.88% to Rs
959.51 crore on 9.28% rise in total income to Rs 1971.18 crore in
Q2 September 2008 over Q2 September 2007.
Crompton Greaves surged 6.69% as net profit rose 24.73% to Rs 92.54
crore on 18.72% rise in total income to Rs 1096.44 crore in Q2
September 2008 over Q2 September 2007.
United Spirits gained 3.92% as net profit rose 17.06% to Rs 93.89
crore in Q2 September 2008 over Q2 September 2007.
Marico spurted 7.32% as net profit rose 18.42% to Rs 45.12 crore in
Q2 September 2008 over Q2 September 2007.
Sadbhav Engineering declined 1.17% despite bagging an order worth
Rs 268.34 crore.
EID Parry India moved up 11.4% on proposal to consider buy back of
own shares.
ECE Industries soared 8.97% on proposal to raise funds by way of a
rights issue.
Idea Cellular tumbled 12.54% as net profit fell 31.80% to Rs 150.39
in Q2 September 2008 over Q2 September 2007.
Sun TV Network surged 4.02% on proposal to consider buyback of own
shares.
GVK Power & Infrastructure clocked the highest volume of 1.68 crore
shares on BSE. Housing Development & Infrastructure (1.09 crore
shares), Reliance Petroleum (92.86 lakh shares), Indiabulls
Securities (87.84 lakh shares) and Reliance Natural Resources
(87.61 lakh shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 301.65 crore
on BSE. Reliance Capital (Rs 225.49 crore), ICICI Bank (Rs 172.23
crore), State Bank of India (Rs 162.58 crore) and Housing
Development & Infrastructure (Rs 159.64 crore) were the other
turnover toppers in that order.
In Europe, key benchmark indices in France, UK were up by between
0.18% to 1.57%. While, key benchmark index in Germany fell 0.37%.
Asian stocks were mixed today, 21 October 2008. Key benchmark
indices in China, Japan, Taiwan and were up by between 0.22% to
3.34%. Key benchmark indices in Singapore, South Korea, and Hong
Kong fell by between 0.1% to 0.95%.
covering on the stock market regulator Securities & Exchange Board
of India (Sebi)'s warning to foreign funds against overseas lending
and borrowing of Indian securities, boosted the domestic bourses
today. But intraday volatility was high. The BSE Sensex rose 460.30
points or 4.5%, extending Monday's (20 October 2008) 2.48% gain.
Index heavyweight Reliance Industries spurted. Tata Consultancy
Services rose more than 12.5%. Jaiprakash Associates spurted more
than 16% on good Q2 September 2008 results. Tata Consultancy
Services rose more than 13%, Tata Steel rose more than 10% and
Reliance Communications rose more than 11%. The market breadth was
strong.
European markets and some Asian markets rose as France said it will
invest $14 billion in banks and the US moved toward a second
stimulus package.
Sebi has disapproved of the overseas lending and borrowing activity
of FIIs and the consequent selling pressure in the cash market in
India. The Sebi warning to FIIs against overseas lending and
borrowing came after the data showed FIIs had lent equities worth
Rs 348 crore to overseas entities for the purpose of short selling,
during 10 October-14 October 2008.
Fall in interest rate boosts stocks as it results in lower
borrowing costs for corporates. The Reserve Bank of India (RBI), on
Monday, 20 October 2008, cut the repo rate, by 100 basis points to
8%, with immediate effect. The repo rate is the rate at which the
RBI provides funds to banks against the collateral of government
bonds for a day to three days.
The BSE 30-share Sensex rose 460.30 points or 4.5% to 10,683.39.
The index surged 527.11 points at the day's high of 10,750.20 in
mid-afternoon trade. The Sensex rose 27.14 points at day's low of
10,250.23 in early trade.
The S&P CNX Nifty was up 112.10 points or 3.59% to 3,234.90.
The Sensex has risen 708.04 points or 7.09% in two trading sessions
from its close of 9,975.35 on 17 October 2008. But the barometer
index is down 9,603.06 points or 47.33% in the calendar year 2008
so far from its close of 20,286.99 on 31 December 2007. It is
10,523.38 points or 49.62% below its all-time high of 21,206.77
struck on 10 January 2008.
BSE clocked turnover of Rs 3857 crore today as compared to a
turnover of Rs 3.697.57 crore on 20 October 2008.
Nifty October 2008 futures were at 3245, at a premium of 10.10
points as compared to spot closing of 3234.90. NSE's futures &
options (F&O) segment turnover was Rs 49,845.05 crore, which was
lower than Rs 51,272.30 crore on Monday, 20 October 2008.
The BSE Mid-Cap index was up 2.31% at 3587.24 and The BSE Small-Cap
index was up 2.03% at 4,196.28. Both the indices underperformed the
Sensex.
BSE Consumer Durables index (up 8.95% to 2,271.82), BSE Realty
index (up 8.32% to 2,632.93), BSE IT index (up 6.03% to 2,906.83),
BSE Capital Goods index (up 5.48% to 7,563.42), BSE Teck index (up
4.66% to 2,282.64) outperformed the Sensex.
BSE PSU index (up 1.04% to 5,268.67), BSE HealthCare index (up 1.33
% to 3,302.82), BSE Auto index (up 1.65% to 3,123.27), BSE Bankex
(up 2.57% to 5,842.23), BSE FMCG index (up 3.15% to 1,957.36), BSE
Metal index (up 3.64% to 6,101.76), BSE Oil & Gas index (up 3.86%
to 6,774.28), BSE Power index (up 4.36% to 1,751.40),
underperformed the Sensex.
The market breadth was strong. On the BSE, 1,613 shares advanced as
compared to 975 that declined. 63 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries rose 5.73% to Rs 1,397, rose ahead
of Q2 results. The stock came off the session's high of Rs
1,424.60. The company is scheduled to announce its Q2 September
2008 result on 23 October 2008.
Tata Steel (up 10.2% to Rs 278.30), Reliance Communications (up
11.25% to Rs 258.20), Tata Power Company (up 9.6% to Rs 789.55),
Sterlite Industries (up 8.59% to Rs 294.70) were the major gainers
from the Sensex pack.
Mahindra & Mahindra (down 2.1% to Rs 408.50) and Hindalco
Industries (down 1.68% to Rs 64.35) were the major losers from the
Sensex pack.
IT stocks gained on overnight spurt in American depository receipts
(ADRs) and amid steady rupee. The BSE IT index rose 6.03% and was
the third biggest gainer from the sectoal indices on BSE.
India's third largest IT exporter by sales Satyam Computer Services
rose 9.84%. Its ADR jumped 6.46%. The company raised its earnings
guidance in rupee terms at the time of announcing Q2 September 2008
results on Friday, 17 October 2008.
India's second largest IT exporter by sales Infosys rose 3.9%.
Infosys ADR gained 7.94%. India's largest IT services provider by
sales Tata Consultancy Services jumped 12.86%. India's fourth
largest IT exporter by sales Wipro rose 5.61%. Wipro ADR rose
0.84%.
NIIT Technologies gained 8.42%, as net profit rose 20.10% to Rs
29.35 crore in Q2 September 2008 over Q1 June 2008.
Zigma Software fell 2.44% on board meet on 27 October 2008, to
consider issue of bonus shares.
PSI Data Systems hit 20% upper circuit on board approving a
proposal received from promoter group to acquire the public
shareholding of the company from the market through open offer, and
to delist equity shares of the company from the Bombay Stock
Exchange.
The Indian rupee was little changed in thin trade on Tuesday as a
strike by central bank employees affected dealing.The partially
convertible rupee was at 48.9550/9700 per dollar, compared to its
previous close of 48.97/98 on Monday. A weak rupee results in
higher revenues for IT companies as they earn most of their
revenues in dollar terms.
Banking majors extended yesterday's (20 October 2008) gains on
hopes lower rates will boost lending. ICICI Bank, HDFC Bank and
State Bank of India rose between 0.31% to 4.86%.
The BSE's banking sector index Bankex rose 2.57%. ICICI Bank, State
Bank of India and HDFC Bank have a weightage of 24.21%, 22.44% and
20.55%, respectively, in the Bankex.
India's largest home loan lender by operating income HDFC rose
5.25%. LIC Housing Finance surged 7.83% as net profit rose 16.05%
to Rs 135.06 crore on 34.86% rise in total income to Rs 707.72
crore in Q2 September 2008 over Q2 September 2007.
Indiabulls Financial Services spurted 8.74% on reports of good loan
recovery in Q2 September 2008.
The BSE Consumer Durables index rose 8.95% and was the biggest
gainer from the sectoral indices on BSE. All the stocks rose from
the BSE Consumer Durables index on hopes lower interest rates will
spur demand. Gitanjali Gems, Rajesh Exports, Videocon Industries
rose by between 1.46% to 7.26%.
Titan Industries surged 17.39% as net profit surged 88.21% rise in
net profit to Rs 87.14 crore on 53.04% rise in sales to Rs 1088.76
crore in Q2 September 2008 over Q2 September 2007.
Most realty stocks rose today after yesterday's slide as cut in
lending rates will spur demand for residential properties. THE BSE
Realty index rose 8.32% and was the second major gainer from the
sectoral indices on BSE. Out of 14 real estate stocks from BSE
Realty index, 11 stocks rose rest declined. Realty majors, DLF,
Indiabulls Real Estate Unitech rose by between between to 5.01% to
27.65%.
DLF, India bulls Real Estate, Unitech have a weightage of 42.53%
22.09% and 11.03% respectively in the BSE Realty index.
Peninsula Land rose 9.2% on reports of exploring the option of
hiving off land assets to mitigate risks and address the ongoing
financial turmoil.
PSU OMC stocks fell despite crude oil falling for the first time
since last three days. BPCL, HPCL and Indian Oil Corporation were
down by between 0.96% to 6.45%. State-run oil marketing firms
suffer revenue loss on domestic sale of petrol, diesel, LPG and
kerosene at a controlled price.
Crude oil for November 2008 delivery fell as much as $1.13, or 1.5
%, to $73.12 a barrel on the New York Mercantile Exchange today.
Shipping companies rose even as the Baltic Dry index, a measure of
shipping costs for commodities, fell for 10th consecutive trading
session in London on Monday, 20 October 2008. Great Eastern
Shipping Company, Mercator Lines and Shipping Corporation of India
rose by between 3.52% to 7.03%.
India's largest commercial vehicle maker by sales Tata Motors rose
1.58% despite reports of rights issue getting a poor response.
India's largest motorbike maker by sales Hero Honda Motors rose
2.66% as net profit jumped 49.9% to Rs 306.30 crore on 36.15% rise
in total income to Rs 3255.93 crore in Q2 September 2008 over Q2
September 2007.
Jaiprakash Associates surged 16.25% as net profit jumped 96% to Rs
203.13 crore on 39.51% rise in total income to Rs 1286.63 crore in
Q2September 2008 over Q2 September 2007.
India's largest electric equipment maker by sales Bharat Heavy
Electricals rose 4.37% on bagging a Rs 641-crore contract for
setting up a 412 megawatt hydro-electric project in Himachal
Pradesh.
India's second largest steel maker by sales Steel Authority of
India fell 2.5% despite 18.19% rise in net profit to Rs 2009.60
crore on 33.7% rise in total income to Rs 12660.99 crore in Q2
September 2008 over Q2 September 2007.
Hindustan Zinc surged 3.47% even as net profit fell 17.88% to Rs
959.51 crore on 9.28% rise in total income to Rs 1971.18 crore in
Q2 September 2008 over Q2 September 2007.
Crompton Greaves surged 6.69% as net profit rose 24.73% to Rs 92.54
crore on 18.72% rise in total income to Rs 1096.44 crore in Q2
September 2008 over Q2 September 2007.
United Spirits gained 3.92% as net profit rose 17.06% to Rs 93.89
crore in Q2 September 2008 over Q2 September 2007.
Marico spurted 7.32% as net profit rose 18.42% to Rs 45.12 crore in
Q2 September 2008 over Q2 September 2007.
Sadbhav Engineering declined 1.17% despite bagging an order worth
Rs 268.34 crore.
EID Parry India moved up 11.4% on proposal to consider buy back of
own shares.
ECE Industries soared 8.97% on proposal to raise funds by way of a
rights issue.
Idea Cellular tumbled 12.54% as net profit fell 31.80% to Rs 150.39
in Q2 September 2008 over Q2 September 2007.
Sun TV Network surged 4.02% on proposal to consider buyback of own
shares.
GVK Power & Infrastructure clocked the highest volume of 1.68 crore
shares on BSE. Housing Development & Infrastructure (1.09 crore
shares), Reliance Petroleum (92.86 lakh shares), Indiabulls
Securities (87.84 lakh shares) and Reliance Natural Resources
(87.61 lakh shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 301.65 crore
on BSE. Reliance Capital (Rs 225.49 crore), ICICI Bank (Rs 172.23
crore), State Bank of India (Rs 162.58 crore) and Housing
Development & Infrastructure (Rs 159.64 crore) were the other
turnover toppers in that order.
In Europe, key benchmark indices in France, UK were up by between
0.18% to 1.57%. While, key benchmark index in Germany fell 0.37%.
Asian stocks were mixed today, 21 October 2008. Key benchmark
indices in China, Japan, Taiwan and were up by between 0.22% to
3.34%. Key benchmark indices in Singapore, South Korea, and Hong
Kong fell by between 0.1% to 0.95%.
Pre Market Report 21/10/2008
The market may extend gains Monday's (20 October 2008) gains on higher Asian markets and on short covering following the stock market regulator Securities & Exchange Board of India (Sebi)'s warning to foreign funds that overseas lending and borrowing of Indian securities could result in stern measures. However, the gains may be capped as investors await key Q2 September 2008 results and management guidance on future outlook and on sustained selling by foreign funds.
Foreign funds have pulled out from India and other emerging markets to shore up resources to beat the global liquidity crunch. They sold shares worth a net Rs 47528.80 crore in 2008, till 20 October 2008.
As per provisional data, foreign funds sold shares worth a net Rs 816.79 crore on Monday, 20 October 2008. Domestic funds bought shares worth a net Rs 216.43 crore.
Rate cut by the central bank will provide support to stocks. The Sensex rose 2.48% on Monday boosted by the announcement. Fall in interest rate boosts stocks as it results in lower borrowing costs for corporates. The Reserve Bank of India (RBI), on Monday, cut the repo rate, by 100 basis points to 8%, with immediate effect. The repo rate is the rate at which the RBI provides funds to banks against the collateral of government bonds for a day to three days.
Asian stocks rose today, 21 October 2008, led by producers of consumer goods and commodities, on optimism the US and Japan will expand efforts to stimulate the economy. US stocks rallied on Monday after the Federal Reserve's chairman backed more government spending to help the economy and credit market conditions showed further signs of improvement.
Foreign funds have pulled out from India and other emerging markets to shore up resources to beat the global liquidity crunch. They sold shares worth a net Rs 47528.80 crore in 2008, till 20 October 2008.
As per provisional data, foreign funds sold shares worth a net Rs 816.79 crore on Monday, 20 October 2008. Domestic funds bought shares worth a net Rs 216.43 crore.
Rate cut by the central bank will provide support to stocks. The Sensex rose 2.48% on Monday boosted by the announcement. Fall in interest rate boosts stocks as it results in lower borrowing costs for corporates. The Reserve Bank of India (RBI), on Monday, cut the repo rate, by 100 basis points to 8%, with immediate effect. The repo rate is the rate at which the RBI provides funds to banks against the collateral of government bonds for a day to three days.
Asian stocks rose today, 21 October 2008, led by producers of consumer goods and commodities, on optimism the US and Japan will expand efforts to stimulate the economy. US stocks rallied on Monday after the Federal Reserve's chairman backed more government spending to help the economy and credit market conditions showed further signs of improvement.
Post Market Report:20/10/2008
Central bank's repo rate cut provided a much needed respite rally
to the investors which have seen a massive erosion in their wealth
in the past few days. The volatility was high and the market
breadth was weak, indicating a cautious undertone. The BSE Sensex
rose 247.74 points or 2.48%. Firm Asian and European markets
provided added support to domestic bourses.
Fall in interest rate boosts stocks as it results in lower
borrowing costs for corporates. The Reserve Bank of India (RBI),
today, cut the repo rate, by 100 basis points to 8% with immediate
effect. Repo rate is the rate at which the RBI provides funds to
banks against the collateral of government bonds for a day to three
days.
Banking stocks and IT stocks rose. Satyam Computer Services and
Wipro rose more than 8.5% each while Tata Consultancy Services rose
more than 9%.
Asian and European stocks were firm as investors took comfort in
global efforts to prop up the banking system, allowing for some
bargain hunting. Trading in US index futures suggested the Dow
would rise 141 points at the opening bell.
The BSE 30-share Sensex jumped 247.74 points or 2.48% to 10,223.09.
The index surged 562.70 points at the day's high of 10,538.05 in
afternoon trade soon after the announcement of the rate cut by the
RBI at about 12:45 IST. The Sensex rose 47.93 points at day's low
of 10,023.28 in mid-afternoon trade.
The S&P CNX Nifty was up 48.45 points or 1.58% to 3,122.80.
BSE clocked a turnover of Rs 3,684 crore today as compared to a
turnover of Rs 4,134.51 crore on 17 October 2008.
From a recent high of 11,483.40 on 14 October 2008, Sensex had
tumbled 1508.05 points or 13.13% to 9975.35 on Friday, 17 October
2008. The barometer index is down 10,063.90 points or 49.6% in the
calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 10,983.68 points or 51.79% below its all-time
high of 21,206.77 struck on 10 January 2008.
Nifty October 2008 futures were at 3141, at a premium of 18.20
points as compared to spot closing of 3122.80. NSE's futures &
options (F&O) segment turnover was Rs 51,272.30 crore, which was
higher than Rs 43,767.13 crore on Friday, 17 October 2008.
The BSE Mid-Cap index was down 1.09% at 3,506.35 and The BSE
Small-Cap index was down 1.32% at 4,112.82. Both the indices
underperformed the Sensex.
Only a few sectors outperfored the Sensex. BSE IT index (up 8.05%
to 2,741.46), BSE Teck index (up 5.45% to 2,181), BSE Bankex (up
2.69% to 5,695.72) outperformed the Sensex.
BSE Realty index (down 3.73% to 2,430.61), BSE Power index (down
1.99% to 1,678.22), BSE Capital Goods index (down 0.98% to
7,170.50), BSE Auto index (down 0.87% to 3,072.52), BSE PSU index
(down 0.4% to 5,241.63), BSE Consumer Durables index (was flat at
2,085.28), BSE Oil & Gas index (up 0.66% to 6,522.50), BSE Metal
index (up 1.48% to 5,887.36), BSE HealthCare index (up 1.6 % to
3,260.49), BSE FMCG index (up 2.08% to 1,897.58) underperformed the
Sensex.
The market breadth was negative. On BSE, 920 shares advanced as
compared to 1643 that declined. 53 shares remained unchanged.
Battered Reliance Industries, India's largest private sector
company by market capitalization and oil refiner Reliance
Industries, rose 1.23% to Rs 1,321.25. The stock came off the day's
high of Rs 1,379.90. From a recent high of Rs 1619.70 on 14 October
2008, the stock plunged 19.41% to Rs 1,438 on 17 October 2008 on
concerns of fall in refining margins.
India's largest drug maker by sales Ranbaxy Laboratories rose 2.15%
to Rs 261.70. Japan's Daiichi Sankyo has acquired 52.5% of Ranbaxy
Laboratories making the Indian firm a subsidiary, the two companies
said in a joint statement today. Daiichi Sankyo bought shares from
Ranbaxy's founders and through an open offer from other
shareholders. It also subscribed to shares and warrants worth $736
million, the statement said. Daiichi Sankyo had agreed in June 2008
to take over Ranbaxy in a deal worth up to $4.6 billion.
From the pack of 30 Sensex stocks, 20 rose. Bharti Airtel (up 4.62%
to Rs 708.05), ITC (up 4.07% to Rs 165) and Jaiprakash Associates
(up 1.42% to Rs 67.70) were among the top gainers from the Sensex
pack.
Grasim Industries (down 7.96% to Rs 1,190.50), Reliance
Communications (down 0.79% to Rs 232.10) and Tata Power Company
(down 3.72% to Rs 720.40) were the losers from the Sensex pack.
India's largest cement maker by sales ACC fell 6.13% to Rs 459.05
off day's high of Rs 513. Reliance Infrastructure fell 1.87% to Rs
481.55 off day's high of Rs 522.
Most lenders rose on hopes lower rates will boost lending. However,
the prices were choppy. HDFC Bank, India's second largest private
sector bank by net profit, which last week reported strong Q2
results, rose 5.94% to Rs 1,084.85. The stock came off the day's
high of Rs 1,113. The bank's net profit rose 43.2% to Rs 527.98
crore on 62.8% growth in total income to Rs 4,634.32 crore in Q2
September 2008 over Q2 September 2007 on 16 October 2008.
ICICI Bank and State Bank of India rose between 1.43% to 4.95%.
India's largest home loan lender by operating revenue HDFC jumped
5.73%.
Canara Bank spurted 5.05%, as net profit jumped 31.84% to Rs 529.43
crore in Q2 September 2008 over Q2 September 2007.
Most realty stocks fell even as cut in lending rates will spur
demand for residential properties. From the 14 real estate stocks
in BSE Realty index, four rose, while the rest declined. Unitech
fell 5.66%. Indiabulls Real Estate rose 7.5%. India's largest real
estate player by market capitalization DLF declined 5.77% to Rs
274.50 off day's high of Rs 305. DLF, Indiabulls Real Estate and
Unitech have a weightage of 42.53% 22.09% and 11.03%, respectively,
in the BSE Realty index.
Rate sensitive auto stocks were mixed even as lower rates may spur
sales which are largely driven through finance. Mahindra &
Mahindra, and Hero Honda Motor fell by between 0.7% to 3.36%. Tata
Motors and Maruti Suzuki India rose by between 0.84% to 5.39%.
IT stocks gained on sharp spurt of American depository receipts
(ADR) last week and on fall in rupee. India's fourth largest IT
exporter by sales Wipro rose 8.95% to Rs 280.65 off day's high of
Rs 289. Wipro ADR jumped 25% to end at $8.3 on Friday 17 October
2008 over the previous week's close of $6.63.
India's third largest IT exporter by sales Satyam Computer Services
rose 8.67% to Rs 289. Its ADR jumped 16% to end at $14.39 in the
week ended 17 October 2008. The company raised its earnings
guidance in rupee terms at the time of announcing Q2 September 2008
results on Friday, 17 October 2008.
India's second largest IT exporter by sales Infosys rose 7.19% to
Rs 1297.80. Infosys ADR gained 8% to end at $25.96 in the week
ended 17 October 2008. India's largest IT services provider by
sales Tata Consultancy Services jumped 9.47%.
The rupee depreciated marginally 0.31% against the dollar to 48.83
as compared to that of the previous working day`s 48.68. A weak
rupee results in higher revenues for IT companies as they earn most
of their revenues in dollar terms
PSU OMC stocks rose despite rise in crude oil prices from the lower
levels. BPCL, HPCL and Indian Oil Corporation rose between 0.4% to
1.7%. State-run oil marketing firms suffer revenue loss on domestic
sale of petrol, diesel, LPG and kerosene at a controlled price.
US crude rose $2 to $71.85 a barrel, on Friday, 17 October 2008
spurred by a broader rise across financial markets and expectations
Organisation of Petroleum Exporting Countries (OPEC) could cut
output at an emergency meeting next week.
Cement stocks fell on weak results reported by Ultra Tech Cement
which lost 1.1%. The company's net profit fell 2.04% to Rs 368.15
crore in Q2 September 2008 over Q2 September 2007. India's largest
cement maker by sales ACC fell 6.13% to Rs 459.05, off the day's
high of Rs 513. Grasim Industries & Birla Corporation fell by
between 1.85% to 7.96%.
Shree Renuka Sugars tumbled 7.76%, after the company acquired a
majority stake in a sugar firm based in Karnataka.
Cadila Healthcare rose 0.67% on receiving US Food & Drug
Administration approval for a new drug.
Apollo Hospitals Enterprise fell 2.04% following the decision to
consider sub-division of equity shares.
Raymond rose 0.21% after a block deal was struck in the counter at
Rs 109, at a premium of 13.95% over the previous day's closing
price.
United Phosphorus slumped 7.47% on reports of plans to buy stake in
an Israel agrochemicals based company for around $1.1 billion.
Godawari Power & Ispat fell 4% after the company decided to
consider buyback of equity shares.
Moser Baer India surged 2,25%, on reports the company plans invest
over $800 million in various businesses in the next 18 months.
Akruti City moved up 1.17%, as net profit spurted 195.34% to Rs
192.24 crore in Q2 September 2008 over Q2 September 2007.
Balaji Telefilms lost 11.15% after Hindi entertainment channel Star
issued a notice for the termination of a long running television
serial.
Petronet LNG rose 1.03% even as net profit fell 10.51% to Rs 103.36
crore on 0.6% decline in total income to Rs 1,672.69 crore in Q2
September 2008 over Q2 September 2007.
Indian Hotels Company fell 2.25% as net profit fell 4.84% to Rs
50.66 crore on 8.95% rise in total income to Rs 399.44 crore in Q2
September 2008 over Q2 September 2007.
Reliance Natural Resources clocked the highest volume of 1.17 crore
shares on BSE. Reliance Petroleum (94.12 lakh shares), Chambal
Fertilisers and Chemicals (82.39 lakh shares), Cals Refineries
(63.36 lakh shares) and Housing Development & Infrastructure (61.01
lakh shares) were the other volume toppers in that order.
Reliance Capital clocked the highest turnover of Rs 290.34 crore on
BSE. Reliance Industries (Rs 274.98 crore), State Bank of India (Rs
183.72 crore), Axis Bank (Rs 175.52 crore) and ICICI Bank (Rs
137.28 crore) were the other turnover toppers in that order.
European markets which opened after Indian market were firm. Key
benchmark indices in UK, France and Germany were up by between
0.92% to 1.64%.
Asian markets which opened before Indian market, rallied, with
valuations growing attractive, and after governments around the
world rushed out further steps to to stabilize the financial
markets and revive the banking industry, which has been badly
damaged by a crisis of confidence. Key benchmark indices in South
Korea, China, Taiwan, Hong Kong, Japan and Singapore were up by
between 1.93% to 4.78%.
Oil prices rose. US crude rose $2 to $71.85 a barrel, on Friday, 17
October 2008 spurred by a broader rise across financial markets and
expectations Organisation of Petroleum Exporting Countries (OPEC)
could cut output at an emergency meeting next week.
to the investors which have seen a massive erosion in their wealth
in the past few days. The volatility was high and the market
breadth was weak, indicating a cautious undertone. The BSE Sensex
rose 247.74 points or 2.48%. Firm Asian and European markets
provided added support to domestic bourses.
Fall in interest rate boosts stocks as it results in lower
borrowing costs for corporates. The Reserve Bank of India (RBI),
today, cut the repo rate, by 100 basis points to 8% with immediate
effect. Repo rate is the rate at which the RBI provides funds to
banks against the collateral of government bonds for a day to three
days.
Banking stocks and IT stocks rose. Satyam Computer Services and
Wipro rose more than 8.5% each while Tata Consultancy Services rose
more than 9%.
Asian and European stocks were firm as investors took comfort in
global efforts to prop up the banking system, allowing for some
bargain hunting. Trading in US index futures suggested the Dow
would rise 141 points at the opening bell.
The BSE 30-share Sensex jumped 247.74 points or 2.48% to 10,223.09.
The index surged 562.70 points at the day's high of 10,538.05 in
afternoon trade soon after the announcement of the rate cut by the
RBI at about 12:45 IST. The Sensex rose 47.93 points at day's low
of 10,023.28 in mid-afternoon trade.
The S&P CNX Nifty was up 48.45 points or 1.58% to 3,122.80.
BSE clocked a turnover of Rs 3,684 crore today as compared to a
turnover of Rs 4,134.51 crore on 17 October 2008.
From a recent high of 11,483.40 on 14 October 2008, Sensex had
tumbled 1508.05 points or 13.13% to 9975.35 on Friday, 17 October
2008. The barometer index is down 10,063.90 points or 49.6% in the
calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 10,983.68 points or 51.79% below its all-time
high of 21,206.77 struck on 10 January 2008.
Nifty October 2008 futures were at 3141, at a premium of 18.20
points as compared to spot closing of 3122.80. NSE's futures &
options (F&O) segment turnover was Rs 51,272.30 crore, which was
higher than Rs 43,767.13 crore on Friday, 17 October 2008.
The BSE Mid-Cap index was down 1.09% at 3,506.35 and The BSE
Small-Cap index was down 1.32% at 4,112.82. Both the indices
underperformed the Sensex.
Only a few sectors outperfored the Sensex. BSE IT index (up 8.05%
to 2,741.46), BSE Teck index (up 5.45% to 2,181), BSE Bankex (up
2.69% to 5,695.72) outperformed the Sensex.
BSE Realty index (down 3.73% to 2,430.61), BSE Power index (down
1.99% to 1,678.22), BSE Capital Goods index (down 0.98% to
7,170.50), BSE Auto index (down 0.87% to 3,072.52), BSE PSU index
(down 0.4% to 5,241.63), BSE Consumer Durables index (was flat at
2,085.28), BSE Oil & Gas index (up 0.66% to 6,522.50), BSE Metal
index (up 1.48% to 5,887.36), BSE HealthCare index (up 1.6 % to
3,260.49), BSE FMCG index (up 2.08% to 1,897.58) underperformed the
Sensex.
The market breadth was negative. On BSE, 920 shares advanced as
compared to 1643 that declined. 53 shares remained unchanged.
Battered Reliance Industries, India's largest private sector
company by market capitalization and oil refiner Reliance
Industries, rose 1.23% to Rs 1,321.25. The stock came off the day's
high of Rs 1,379.90. From a recent high of Rs 1619.70 on 14 October
2008, the stock plunged 19.41% to Rs 1,438 on 17 October 2008 on
concerns of fall in refining margins.
India's largest drug maker by sales Ranbaxy Laboratories rose 2.15%
to Rs 261.70. Japan's Daiichi Sankyo has acquired 52.5% of Ranbaxy
Laboratories making the Indian firm a subsidiary, the two companies
said in a joint statement today. Daiichi Sankyo bought shares from
Ranbaxy's founders and through an open offer from other
shareholders. It also subscribed to shares and warrants worth $736
million, the statement said. Daiichi Sankyo had agreed in June 2008
to take over Ranbaxy in a deal worth up to $4.6 billion.
From the pack of 30 Sensex stocks, 20 rose. Bharti Airtel (up 4.62%
to Rs 708.05), ITC (up 4.07% to Rs 165) and Jaiprakash Associates
(up 1.42% to Rs 67.70) were among the top gainers from the Sensex
pack.
Grasim Industries (down 7.96% to Rs 1,190.50), Reliance
Communications (down 0.79% to Rs 232.10) and Tata Power Company
(down 3.72% to Rs 720.40) were the losers from the Sensex pack.
India's largest cement maker by sales ACC fell 6.13% to Rs 459.05
off day's high of Rs 513. Reliance Infrastructure fell 1.87% to Rs
481.55 off day's high of Rs 522.
Most lenders rose on hopes lower rates will boost lending. However,
the prices were choppy. HDFC Bank, India's second largest private
sector bank by net profit, which last week reported strong Q2
results, rose 5.94% to Rs 1,084.85. The stock came off the day's
high of Rs 1,113. The bank's net profit rose 43.2% to Rs 527.98
crore on 62.8% growth in total income to Rs 4,634.32 crore in Q2
September 2008 over Q2 September 2007 on 16 October 2008.
ICICI Bank and State Bank of India rose between 1.43% to 4.95%.
India's largest home loan lender by operating revenue HDFC jumped
5.73%.
Canara Bank spurted 5.05%, as net profit jumped 31.84% to Rs 529.43
crore in Q2 September 2008 over Q2 September 2007.
Most realty stocks fell even as cut in lending rates will spur
demand for residential properties. From the 14 real estate stocks
in BSE Realty index, four rose, while the rest declined. Unitech
fell 5.66%. Indiabulls Real Estate rose 7.5%. India's largest real
estate player by market capitalization DLF declined 5.77% to Rs
274.50 off day's high of Rs 305. DLF, Indiabulls Real Estate and
Unitech have a weightage of 42.53% 22.09% and 11.03%, respectively,
in the BSE Realty index.
Rate sensitive auto stocks were mixed even as lower rates may spur
sales which are largely driven through finance. Mahindra &
Mahindra, and Hero Honda Motor fell by between 0.7% to 3.36%. Tata
Motors and Maruti Suzuki India rose by between 0.84% to 5.39%.
IT stocks gained on sharp spurt of American depository receipts
(ADR) last week and on fall in rupee. India's fourth largest IT
exporter by sales Wipro rose 8.95% to Rs 280.65 off day's high of
Rs 289. Wipro ADR jumped 25% to end at $8.3 on Friday 17 October
2008 over the previous week's close of $6.63.
India's third largest IT exporter by sales Satyam Computer Services
rose 8.67% to Rs 289. Its ADR jumped 16% to end at $14.39 in the
week ended 17 October 2008. The company raised its earnings
guidance in rupee terms at the time of announcing Q2 September 2008
results on Friday, 17 October 2008.
India's second largest IT exporter by sales Infosys rose 7.19% to
Rs 1297.80. Infosys ADR gained 8% to end at $25.96 in the week
ended 17 October 2008. India's largest IT services provider by
sales Tata Consultancy Services jumped 9.47%.
The rupee depreciated marginally 0.31% against the dollar to 48.83
as compared to that of the previous working day`s 48.68. A weak
rupee results in higher revenues for IT companies as they earn most
of their revenues in dollar terms
PSU OMC stocks rose despite rise in crude oil prices from the lower
levels. BPCL, HPCL and Indian Oil Corporation rose between 0.4% to
1.7%. State-run oil marketing firms suffer revenue loss on domestic
sale of petrol, diesel, LPG and kerosene at a controlled price.
US crude rose $2 to $71.85 a barrel, on Friday, 17 October 2008
spurred by a broader rise across financial markets and expectations
Organisation of Petroleum Exporting Countries (OPEC) could cut
output at an emergency meeting next week.
Cement stocks fell on weak results reported by Ultra Tech Cement
which lost 1.1%. The company's net profit fell 2.04% to Rs 368.15
crore in Q2 September 2008 over Q2 September 2007. India's largest
cement maker by sales ACC fell 6.13% to Rs 459.05, off the day's
high of Rs 513. Grasim Industries & Birla Corporation fell by
between 1.85% to 7.96%.
Shree Renuka Sugars tumbled 7.76%, after the company acquired a
majority stake in a sugar firm based in Karnataka.
Cadila Healthcare rose 0.67% on receiving US Food & Drug
Administration approval for a new drug.
Apollo Hospitals Enterprise fell 2.04% following the decision to
consider sub-division of equity shares.
Raymond rose 0.21% after a block deal was struck in the counter at
Rs 109, at a premium of 13.95% over the previous day's closing
price.
United Phosphorus slumped 7.47% on reports of plans to buy stake in
an Israel agrochemicals based company for around $1.1 billion.
Godawari Power & Ispat fell 4% after the company decided to
consider buyback of equity shares.
Moser Baer India surged 2,25%, on reports the company plans invest
over $800 million in various businesses in the next 18 months.
Akruti City moved up 1.17%, as net profit spurted 195.34% to Rs
192.24 crore in Q2 September 2008 over Q2 September 2007.
Balaji Telefilms lost 11.15% after Hindi entertainment channel Star
issued a notice for the termination of a long running television
serial.
Petronet LNG rose 1.03% even as net profit fell 10.51% to Rs 103.36
crore on 0.6% decline in total income to Rs 1,672.69 crore in Q2
September 2008 over Q2 September 2007.
Indian Hotels Company fell 2.25% as net profit fell 4.84% to Rs
50.66 crore on 8.95% rise in total income to Rs 399.44 crore in Q2
September 2008 over Q2 September 2007.
Reliance Natural Resources clocked the highest volume of 1.17 crore
shares on BSE. Reliance Petroleum (94.12 lakh shares), Chambal
Fertilisers and Chemicals (82.39 lakh shares), Cals Refineries
(63.36 lakh shares) and Housing Development & Infrastructure (61.01
lakh shares) were the other volume toppers in that order.
Reliance Capital clocked the highest turnover of Rs 290.34 crore on
BSE. Reliance Industries (Rs 274.98 crore), State Bank of India (Rs
183.72 crore), Axis Bank (Rs 175.52 crore) and ICICI Bank (Rs
137.28 crore) were the other turnover toppers in that order.
European markets which opened after Indian market were firm. Key
benchmark indices in UK, France and Germany were up by between
0.92% to 1.64%.
Asian markets which opened before Indian market, rallied, with
valuations growing attractive, and after governments around the
world rushed out further steps to to stabilize the financial
markets and revive the banking industry, which has been badly
damaged by a crisis of confidence. Key benchmark indices in South
Korea, China, Taiwan, Hong Kong, Japan and Singapore were up by
between 1.93% to 4.78%.
Oil prices rose. US crude rose $2 to $71.85 a barrel, on Friday, 17
October 2008 spurred by a broader rise across financial markets and
expectations Organisation of Petroleum Exporting Countries (OPEC)
could cut output at an emergency meeting next week.
Monday, October 20, 2008
Market recovers on gains in Asian stocks
Firm Asian stocks triggered recovery on the domestic bourses after
steep slide in the previous trading session. A bout of volatility
was witnessed in early trade. The BSE Sensex jumped over 300 points
at the day's high with IT stocks leading the rally. Wipro rose more
than 6%. Realty stocks jumped. But the market breadth was negative
indicating a cautious undertone.
Asian stock markets rallied with valuations growing more
attractive, and after governments around the world rushed out
further steps to to stabilize financial markets and resuscitate the
banking industry which has been badly damaged by a crisis of
confidence. Key benchmark indices in South Korea, Taiwan, Hong
Kong, Japan and Singapore were up by between 0.98% to 4.34%.
At 10:22 IST, the BSE 30-share Sensex was up 314.91 points or 3.16%
to 10,290.96. The index surged 331.62 points at the day's high of
10,306.97 in early trade. The Sensex rose 63.93 points at day's low
of 10,039.28 in early trade.
The S&P CNX Nifty was up 85.55 points or 2.78% to 3,159.90.
The BSE Mid-Cap index was down 0.3% at 3,534.14 and The BSE
Small-Cap index was down 0.31% at 4,154.79. Both the indices
underperformed the Sensex.
The market breadth was negative. On BSE, 608 shares advanced as
compared to 727 that declined. 34 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries rose 1.42% to Rs 1,324.20. From a
recent high of Rs 1619.70 on 14 October 2008, the stock plunged
19.41% to Rs 1,438 on 17 October 2008 on concerns of fall in
refining margins.
Reliance Communications (up 4.3% to Rs 244), ICICI Bank (up 4.45%
to Rs 409.15), HDFC Bank (up 3.79% to Rs 1,062.90) were among the
top gainers from the Sensex pack.
Grasim Industries (down 5.33% to Rs 1,225), State Bank of India
(down 0.77% to Rs 1,403) and Mahindra & Mahindra (down 1.37% to Rs
434.95) were the top losers from the Sensex pack.
BSE Realty index rose 2.48%. Out of 14 real estate stocks from BSE
Realty index, 7 stocks rose while rest declined.
Realty majors, Indiabulls Real Estate, Unitech rose between 0.5% to
1.45%. India's largest real estate player by market capitalization
DLF fell 1.54%
DLF, India bulls Real Estate, Unitech have weightage of 42.53%
22.09% and 11.03% respectively in the BSE Realty index.
IT stocks gained even as rupee rose against the dollar. BSE IT
index rose 3.29% and was the major gainer from the sectoral indices
on BSE. India's third largest IT services provider by sales Satyam
Computer Services rose 4.96% after the company raised its earnings
guidance in rupee terms at the time of announcing Q2 September 2008
results on Friday, 17 October 2008. Tata Consultancy Services ,
Wipro and Infosys jumped between 2.86% to 6.5%.
The Indian rupee strengthened in early deals on Monday. The
partially convertible rupee was at 48.72/73 per dollar, stronger
than 48.88/89 per dollar on Friday 17 October 2008. A firm rupee
impacts IT companies as they earn most of their revenues in dollar
terms resulting higher revenues.
India's largest commercial vehicle maker by sales Tata Motors rose
3.49% to Rs 241. The rights issue of Tata Motors, which has
received a lukewarm response due to slump in the stock price below
the rights issue price, closes today, 20 October 2008. The share
price of Tata Motors has been trading below the offer price of its
ordinary rights issue at Rs 340. The differential voting rights
component of the rights issue is priced at Rs 305.
Ultra Tech Cement fell 1.54% as net profit fell 11.65% to Rs 164.19
crore in Q2 September 2008 over Q2 September 2007. The net sales
rose 19.57% to Rs 1,396.21 crore in Q2 September 2008 over Q2
September 2007.
Godawari Power & Ispat surged 7.28% after the company announced
that a board meeting will be held on 25 October 2008 to consider
buyback of equity shares.
Visa Steel rose 4.27% after the company said it has commissioned
commercial operations at a 1.5 lakh tonnes direct reduced iron
(DRI) plant and 25 megawatt power plant situated at Kalinganagar
industrial complex, in Jaipur, Orissa.
Vishal Retail gained 1.6% after the company said it has opened a
new retail outlet in Ghaziabad taking its total stores count 160
spread across an area of 27.63 lakh square feet across the country.
Apollo Hospitals fell 4.68% after the company said its board will
meet on 30 October 2008 to consider stock split.
Mukand was flat at Rs 34.85 even as the company said its industrial
machinery division saw order book growth of 76% in six months ended
September 2008 over the six months ended September 2007. According
to the company it is unlikely to be impacted by fluctuations in the
foreign exchange market as the company procure raw material
domestically and not through imports.
US stocks fell on Friday, 17 October 2008 on weakness in
manufacturing and financial stocks following bleak data on consumer
confidence and construction. The Dow Jones industrial average fell
127.04 points, or 1.41%, to 8,852.22, while the Standard & Poor's
500 Index dropped 5.88 points, or 0.62%, to 940.55. The Nasdaq
Composite Index slipped 6.42 points, or 0.37%, to 1,711.29.
Back home, bears ruled the roost on the bourses on Friday, 17
October 2008 on global recession worries, with the BSE Sensex
falling below the psychological 10,000 mark for the first time in
more than two years. The BSE 30-share Sensex lost 606.14 points or
5.73% to 9,975.35 and the S&P CNX Nifty was down 194.95 points or
5.96% to 3,074.35, on that day.
steep slide in the previous trading session. A bout of volatility
was witnessed in early trade. The BSE Sensex jumped over 300 points
at the day's high with IT stocks leading the rally. Wipro rose more
than 6%. Realty stocks jumped. But the market breadth was negative
indicating a cautious undertone.
Asian stock markets rallied with valuations growing more
attractive, and after governments around the world rushed out
further steps to to stabilize financial markets and resuscitate the
banking industry which has been badly damaged by a crisis of
confidence. Key benchmark indices in South Korea, Taiwan, Hong
Kong, Japan and Singapore were up by between 0.98% to 4.34%.
At 10:22 IST, the BSE 30-share Sensex was up 314.91 points or 3.16%
to 10,290.96. The index surged 331.62 points at the day's high of
10,306.97 in early trade. The Sensex rose 63.93 points at day's low
of 10,039.28 in early trade.
The S&P CNX Nifty was up 85.55 points or 2.78% to 3,159.90.
The BSE Mid-Cap index was down 0.3% at 3,534.14 and The BSE
Small-Cap index was down 0.31% at 4,154.79. Both the indices
underperformed the Sensex.
The market breadth was negative. On BSE, 608 shares advanced as
compared to 727 that declined. 34 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries rose 1.42% to Rs 1,324.20. From a
recent high of Rs 1619.70 on 14 October 2008, the stock plunged
19.41% to Rs 1,438 on 17 October 2008 on concerns of fall in
refining margins.
Reliance Communications (up 4.3% to Rs 244), ICICI Bank (up 4.45%
to Rs 409.15), HDFC Bank (up 3.79% to Rs 1,062.90) were among the
top gainers from the Sensex pack.
Grasim Industries (down 5.33% to Rs 1,225), State Bank of India
(down 0.77% to Rs 1,403) and Mahindra & Mahindra (down 1.37% to Rs
434.95) were the top losers from the Sensex pack.
BSE Realty index rose 2.48%. Out of 14 real estate stocks from BSE
Realty index, 7 stocks rose while rest declined.
Realty majors, Indiabulls Real Estate, Unitech rose between 0.5% to
1.45%. India's largest real estate player by market capitalization
DLF fell 1.54%
DLF, India bulls Real Estate, Unitech have weightage of 42.53%
22.09% and 11.03% respectively in the BSE Realty index.
IT stocks gained even as rupee rose against the dollar. BSE IT
index rose 3.29% and was the major gainer from the sectoral indices
on BSE. India's third largest IT services provider by sales Satyam
Computer Services rose 4.96% after the company raised its earnings
guidance in rupee terms at the time of announcing Q2 September 2008
results on Friday, 17 October 2008. Tata Consultancy Services ,
Wipro and Infosys jumped between 2.86% to 6.5%.
The Indian rupee strengthened in early deals on Monday. The
partially convertible rupee was at 48.72/73 per dollar, stronger
than 48.88/89 per dollar on Friday 17 October 2008. A firm rupee
impacts IT companies as they earn most of their revenues in dollar
terms resulting higher revenues.
India's largest commercial vehicle maker by sales Tata Motors rose
3.49% to Rs 241. The rights issue of Tata Motors, which has
received a lukewarm response due to slump in the stock price below
the rights issue price, closes today, 20 October 2008. The share
price of Tata Motors has been trading below the offer price of its
ordinary rights issue at Rs 340. The differential voting rights
component of the rights issue is priced at Rs 305.
Ultra Tech Cement fell 1.54% as net profit fell 11.65% to Rs 164.19
crore in Q2 September 2008 over Q2 September 2007. The net sales
rose 19.57% to Rs 1,396.21 crore in Q2 September 2008 over Q2
September 2007.
Godawari Power & Ispat surged 7.28% after the company announced
that a board meeting will be held on 25 October 2008 to consider
buyback of equity shares.
Visa Steel rose 4.27% after the company said it has commissioned
commercial operations at a 1.5 lakh tonnes direct reduced iron
(DRI) plant and 25 megawatt power plant situated at Kalinganagar
industrial complex, in Jaipur, Orissa.
Vishal Retail gained 1.6% after the company said it has opened a
new retail outlet in Ghaziabad taking its total stores count 160
spread across an area of 27.63 lakh square feet across the country.
Apollo Hospitals fell 4.68% after the company said its board will
meet on 30 October 2008 to consider stock split.
Mukand was flat at Rs 34.85 even as the company said its industrial
machinery division saw order book growth of 76% in six months ended
September 2008 over the six months ended September 2007. According
to the company it is unlikely to be impacted by fluctuations in the
foreign exchange market as the company procure raw material
domestically and not through imports.
US stocks fell on Friday, 17 October 2008 on weakness in
manufacturing and financial stocks following bleak data on consumer
confidence and construction. The Dow Jones industrial average fell
127.04 points, or 1.41%, to 8,852.22, while the Standard & Poor's
500 Index dropped 5.88 points, or 0.62%, to 940.55. The Nasdaq
Composite Index slipped 6.42 points, or 0.37%, to 1,711.29.
Back home, bears ruled the roost on the bourses on Friday, 17
October 2008 on global recession worries, with the BSE Sensex
falling below the psychological 10,000 mark for the first time in
more than two years. The BSE 30-share Sensex lost 606.14 points or
5.73% to 9,975.35 and the S&P CNX Nifty was down 194.95 points or
5.96% to 3,074.35, on that day.
Pre Market Report 20/10/2008
Key benchmark indices are likely to remain range-bound on mixed global cues. Asian markets were trading mixed today, 20 October 2008 while US markets ended lower on Friday, 17 October 2008. Volatility may remain high ahead of the derivatives expiry for October 2008 series.
Meanwhile, US crude rose $2 to $71.85 a barrel, on Friday, 17 October 2008 spurred by a broader rise across financial markets and expectations OPEC could cut output at an emergency meeting next week.
Asian markets were trading mixed today, 20 October 2008. China's Shanghai Composite slipped 0.73% or 14 points at 1,916.65, South Korea's Seoul Composite declined 0.92% or 10.91 points at 1,169.76, Taiwan's Taiwan Weighted fell 0.45% or 21.60 points at 4,817.04. However, Hong Kong's Hang Seng rose 1.90% or 277.01 points at 14,831.22, Japan's Nikkei advanced 0.53% or 45.88 points at 8,739.70 and Singapore's Straits Times gained 1.17% or 21.89 points at 1,900.40.
US stocks fell on Friday, 17 October 2008 on weakness in manufacturing and financial stocks after bleak data on consumer confidence and construction. The Dow Jones industrial average fell 127.04 points, or 1.41%, to 8,852.22, while the Standard & Poor's 500 Index dropped 5.88 points, or 0.62%, to 940.55. The Nasdaq Composite Index slipped 6.42 points, or 0.37%, to 1,711.29.
Back home, bears ruled the roost on the bourses on Friday, 17 October 2008 on global recession worries, with the BSE Sensex falling below the psychological 10,000 mark for the first time in more than two years. The BSE 30-share Sensex lost 606.14 points or 5.73% to 9,975.35 and the S&P CNX Nifty was down 194.95 points or 5.96% to 3,074.35, on that day.
Foreign institutional investors (FIIs) were net sellers worth Rs 915.54 crore while mutual funds bought shares worth Rs 712.77 crore on Friday, 17 October 2008, according to provisional data on NSE.
Meanwhile, US crude rose $2 to $71.85 a barrel, on Friday, 17 October 2008 spurred by a broader rise across financial markets and expectations OPEC could cut output at an emergency meeting next week.
Asian markets were trading mixed today, 20 October 2008. China's Shanghai Composite slipped 0.73% or 14 points at 1,916.65, South Korea's Seoul Composite declined 0.92% or 10.91 points at 1,169.76, Taiwan's Taiwan Weighted fell 0.45% or 21.60 points at 4,817.04. However, Hong Kong's Hang Seng rose 1.90% or 277.01 points at 14,831.22, Japan's Nikkei advanced 0.53% or 45.88 points at 8,739.70 and Singapore's Straits Times gained 1.17% or 21.89 points at 1,900.40.
US stocks fell on Friday, 17 October 2008 on weakness in manufacturing and financial stocks after bleak data on consumer confidence and construction. The Dow Jones industrial average fell 127.04 points, or 1.41%, to 8,852.22, while the Standard & Poor's 500 Index dropped 5.88 points, or 0.62%, to 940.55. The Nasdaq Composite Index slipped 6.42 points, or 0.37%, to 1,711.29.
Back home, bears ruled the roost on the bourses on Friday, 17 October 2008 on global recession worries, with the BSE Sensex falling below the psychological 10,000 mark for the first time in more than two years. The BSE 30-share Sensex lost 606.14 points or 5.73% to 9,975.35 and the S&P CNX Nifty was down 194.95 points or 5.96% to 3,074.35, on that day.
Foreign institutional investors (FIIs) were net sellers worth Rs 915.54 crore while mutual funds bought shares worth Rs 712.77 crore on Friday, 17 October 2008, according to provisional data on NSE.
Sunday, October 19, 2008
WorldSpace files for bankruptcy in US
Chennai, Oct. 18 Digital satellite radio broadcasting company, WorldSpace Inc, has filed for bankruptcy protection in a US court after failing to obtain new financing.
According to reports, the Maryland-based company has listed a debt of $2.1 billion and assets of $307.4 million as of June 30, 2008. WorldSpace has sought bankruptcy protection so as to be able to raise fresh funds to repay its debts.
WorldSpace is present in over 130 countries worldwide. It launched its India services in 2000 with over 35 free-to-air channels. In 2002, it converted a few of its channels to pay and went completely pay in 2004.
As at the end 2007, it had a customer base of over 1.6 lakh in India — over 93 per cent of its world-wide subscriber base.
It beams over 45 channels in India, most of which are branded ‘WorldSpace’ though a few are owned and operated by other players such as BBC, CNN, AIR and KL Radio.
The company stopped all promotional and marketing activities in India by mid-2007. It has also applied for licence to have terrestrial repeaters for better decoding of satellite signals and to develop mobile receivers to be used in automobiles.
From Day One, WorldSpace has been subsidising all its receivers in the Indian market. Initially, it sold receivers made in Japan (National, JVC and Hitachi) and later added a few brands from Korea and BPL in India before finally sourcing all the receivers from BPL. These receivers are retailed in India at prices between Rs 2,500 and Rs 3,500.
The current subscription rate is Rs 1,800 a year. WorldSpace has also been trying to rope in a local partner for a strategic alliance. Besides, licence permitting, it intends to introduce ‘mobile’ receivers — such as those that could be carried in cars. WorldSpace has been in talks with a few car makers for this.
The head of India operations could not be contacted. However, other sources, when asked about the fate of the 1.64 lakh Indian subscribers, said that it would take “a few more days for us to get some clarity about India operations”.
According to reports, the Maryland-based company has listed a debt of $2.1 billion and assets of $307.4 million as of June 30, 2008. WorldSpace has sought bankruptcy protection so as to be able to raise fresh funds to repay its debts.
WorldSpace is present in over 130 countries worldwide. It launched its India services in 2000 with over 35 free-to-air channels. In 2002, it converted a few of its channels to pay and went completely pay in 2004.
As at the end 2007, it had a customer base of over 1.6 lakh in India — over 93 per cent of its world-wide subscriber base.
It beams over 45 channels in India, most of which are branded ‘WorldSpace’ though a few are owned and operated by other players such as BBC, CNN, AIR and KL Radio.
The company stopped all promotional and marketing activities in India by mid-2007. It has also applied for licence to have terrestrial repeaters for better decoding of satellite signals and to develop mobile receivers to be used in automobiles.
From Day One, WorldSpace has been subsidising all its receivers in the Indian market. Initially, it sold receivers made in Japan (National, JVC and Hitachi) and later added a few brands from Korea and BPL in India before finally sourcing all the receivers from BPL. These receivers are retailed in India at prices between Rs 2,500 and Rs 3,500.
The current subscription rate is Rs 1,800 a year. WorldSpace has also been trying to rope in a local partner for a strategic alliance. Besides, licence permitting, it intends to introduce ‘mobile’ receivers — such as those that could be carried in cars. WorldSpace has been in talks with a few car makers for this.
The head of India operations could not be contacted. However, other sources, when asked about the fate of the 1.64 lakh Indian subscribers, said that it would take “a few more days for us to get some clarity about India operations”.
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