Sustained buying demand in index pivotals helped market extend
early gains after opening on a buoyant note tracking gains in Asian
stocks and higher US index futures. Capital goods and metal stocks
were in demand. The market breadth was strong.
China�s Shanghai Composite surged 4.44% after the government on
Sunday, 9 November 2008, announced $586 billion in infrastructure
and public welfare spending to slow the crisis's impact on its
economy, the world's fourth-largest. Other Asian markets, too, were
firm. Key benchmark indices in Hong Kong, Japan, Singapore and
South Korea were up by between 1.55% and 3.39%. However Taiwan's
Taiwan Weighted was down 0.04% despite announcing 25 basis points
cut in interest rates for the fourth time in two months after
exports dropped in October 2008 by most in three years.
Trading in US index futures indicated the Dow will rise 126 points
at the opening bell.
Economic officials from 20 leading nations called Sunday for
increased government spending to boost the troubled global economy
and said developing countries deserve a prominent role in talks to
overhaul the world financial system. Each country will have to
design its own stimulus package to meet its specific needs, said
David McCormick, the US Treasury's undersecretary for international
affairs.
President-elect Barack Obama on Friday, 7 November 2008, vowed to
act swiftly to address the global financial crisis.
At 11:29 IST, the BSE 30-share Sensex was up 290.50 points, or
2.92%, to 10,254.70. The Sensex opened 190.27 points higher at
10,154.56. The Sensex rose 298.67 points at the day�s high of
10,262.96 in mid-morning trade. At the day�s low of 10,095.90,
the Sensex rose 131.61 points in early trade.
The S&P CNX Nifty gained 92.50 points, or 3.11%, to 3,065.50
The market breadth, indicating the overall health of the market,
was strong on BSE with 1440 shares advancing as compared with 616
that declined. 6 shares remained unchanged.
The total turnover on the BSE amounted to Rs 1045 crore by 11:30
IST as copmpared to Rs 330 crore by 10:30 IST
Among the 30-member Sensex pack, 27 advanced while the rest
declined.
Capital goods shares spurted on renewed buying with the BSE capital
goods index advancing 4.38% to 7,970.08 and was the second biggest
gainer among the BSE sectoral indices.
Indian top engineering and construction firm by sales Larsen &
Toubro surged 5.66% to Rs 920.65 after its consortium with
Malaysia's Scomi Engineering Bhd won an order worth Rs 2460 crore.
Bharat Heavy Electricals, the country's largest power equipment
maker by sales gained 5.70% to Rs 1485.25
Metal shares dominated the list of Sensex gainers on hopes Chinese
demand will rise after the stimulus package.
India�s top aluminium and copper producer by sales, Sterlite
Industries jumped 11.76% to Rs 275.10 on 5.26 lakh shares. It was
the top gainer from the Sensex pack.
Tata Steel (up 9.73% to Rs 208.60) and Hindalco Industries (up
4.22% to Rs 63), were the other gainers from the metal pack.
India�s largest private sector company by market capitalization
and oil refiner Reliance Industries (RIL) advanced 4.41% to Rs
1272.50, ahead of verdict on the gas dispute case hearing with
National Thermal Power Corporation on 11 November 2008. The later
rose 4.86% to Rs 158.25
Reliance Infrastructure (up 6.26% to Rs 596.55), Jaiprakash
Associates (up 4.79% to Rs 91.90), and ICICI Bank (up 5.51% to Rs
455), were the other gainers from the Sensex pack.
Auto stocks were mixed after latest data showed fall in sales in
key segments in the month just gone by. India's top small car maker
by sales Maruti Suzuki India lost 1.20% to Rs 590.50 and was the
top loser from the Sensex pack.
Mahindra & Mahindra (up 0.10% to Rs 372.50), and Tata Motors (up
3.15% to Rs 163.90) rose on bargain hunting.
According to the figures released by the Society of Indian
Automobile Manufacturers (Siam), passenger car sales declined 6.6%
to 98,900 units in October 2008 over October 2007. Sales of trucks
and buses fell 35.9% to 28,027 units.
IT pivotals were mixed as gains in rupee were offset by firm
American depository receipts' (ADR) on Friday, 7 November 2008 on
the New York Stock Exchange. The partially convertible rupee was at
47.20/21 per dollar, nearly 1% stronger than Friday's close of
47.65/66 per dollar. A rise in rupee impacts margins at IT pivotals
who derive a lion's share from exports to the US. The BSE IT index
was up 0.12% to 2,673.70
India's third largest IT exporter by sales Satyam Computer Services
rose 1.85% to Rs 282.15 as ADR jumped 10.64% and India's fourth
largest IT exporter by sales Wipro rose 1.36% to Rs 264.20 as ADR
advanced 6.51%, on the New York Stock Exchange on Friday, 7
November 2008.
However India's second largest IT exporter by sales Infosys slipped
0.69% to Rs 1253, despite ADR surging 7.97% on the New York Stock
Exchange on Friday, 7 November 2008.
India's largest IT exporter by sales Tata Consultancy Services fell
0.44% to Rs 522.25.
Aurobindo Pharma surged 4.29% to Rs 118 on receiving final approval
from the US Food & Drug Administration for manufacturing and
marketing Sertraline hydrochloride in 20 miligram strength. The
company made this announcement after trading hours on Friday, 7
November 2008.
Suzlon Energy declined 3.25% to Rs 68.40 after credit rating agency
CRISIL cut outlook on rating of the companyâ€(TM)s long-term bank
facilities to negative from stable.
US light crude for December 2008 delivery rose $2.86 to $63.90 a
barrel, today, 10 November 2008, rebounding after sliding on
Friday, 7 November 2008, to a 1-1/2-year low below $60, on the back
top exporter Saudi Arabia's plans to cut December 2008 supplies to
Asia, a weaker dollar and hopes that global economies' plans to
lift growth could avert recession.
US stocks rose on Friday as bargain hunters scooped up shares at
multiyear lows after a big drop in the October 2008 payrolls was
less dire than feared. The Dow Jones industrial average jumped
248.02 points, or 2.85%, to 8,943.81. The S&P 500 index advanced
26.11 points, or 2.89%, to 930.99, and the Nasdaq composite index
added 38.70 pints, or 2.41%, to 1,647.40.
Back home, the 30-share BSE Sensex had risen 230.07 points or 2.36%
at 9,964.29 and the 50-unit S&P Nifty had gained 80.35 points or
2.78% to 2,973 on Friday, 7 November 2008 after data showed rise in
infrastructure sector output and on positive global cues.
Foreign institutional investors (FIIs) were net sellers worth Rs
19.27 crore while mutual funds sold shares worth Rs 147.08 crore on
Friday, 7 November 2008, according to provisional data on NSE.
ONGC spurted 4.93% to Rs 778.15 at 10:57 IST on BSE, snapping three
sessions of losses after its chief said that company was looking
for more acquisitions. Media reports quoted ONGC's chairman RS
Sharma on Saturday, 8 November 2008, as saying that ONGC was not
facing cash flow problems and was still looking for acquisition
opportunities despite the global financial crisis. Sharma added
that ONGC was looking at possible acquisitions in Africa and Latin
America.
Monday, November 10, 2008
Sensex spurts above 10,000 mark in opening trade
Key benchmark indices opened on a buoyant note tracking positive
Asian stocks and firm US index futures after China announced a $586
billion package to revive growth in the world's fourth-largest
economy. The BSE Sensex surged past the 10,000 mark and the S&P CNX
Nifty raced past the 3,000 mark in opening trade. Metal stocks
rallied on hopes Chinese demand will rise after the stimulus
package.
The Dow and Nasdaq futures were up 1.40% and 1.44% respectively,
indicating firm start today, 10 November 2008.
Most Asian markets were trading firm today, 10 November 2008.
China's Shanghai Composite surged 4.98% after it announced a
massive economic stimulus package worth $586 billion in an attempt
to bolster its weakening economy. The government has also promised
to loosen credit conditions and cut taxes.
Key benchmark indices in Hong Kong, Japan, Singapore and South
Korea were up by between 0.94% and 5.11%. However Taiwan's Taiwan
Weighted was down 0.76% despite announcing 25 basis points cut in
interest rates for the fourth time in two months after exports
dropped in October 2008 by most in three years.
At 10:25 IST, the BSE 30-share Sensex was up 203.75 points, or
2.04%, to 10,168.04. The Sensex opened 190.27 points higher at
10,154.56. The Sensex rose 316.68 points at the day's high of
10,280.97. At the day's low of 10,095.90, the Sensex rose 131.61
points.
The S&P CNX Nifty gained 64.85 points, or 2.12%, to 3,036
The market breadth, indicating the overall health of the market,
was strong on BSE with 980 shares advancing as compared with 341
that declined. 34 shares remained unchanged.
The total turnover on the BSE amounted to Rs 330 crore by 10:30 IST
Among the 30-member Sensex pack, 26 advanced while the rest
declined.
Metal shares dominated the list of Sensex gainers surged on hopes
Chinese demand will rise after the stimulus package, with the BSE
Metal index advancing 5.91% to 5,456.76, the most among BSE
sectoral indices,
India's top aluminium and copper producer by sales, Sterlite
Industries jumped 8.88% to Rs 268 on 2.32 lakh shares. It was the
top gainer from the Sensex pack.
Tata Steel (up 4.71% to Rs 199.05) and Hindalco Industries (up
4.22% to Rs 63), were the other gainers from the metal pack.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) advanced 2.89% to Rs 1253
Jqaiprakash Associates (up 3.93% to Rs 91.05), ONGC (up 4.11% to Rs
772.05), and ICICI Bank (up 3.42% to Rs 446), edged higher from the
Sensex pack.
Auto stocks were mixed after latest data showing fall in October
2008 sales. Maruti Suzuki India (down 1.78% to Rs 587) and Mahindra
& Mahindra (down 1.52% to Rs 366.60), slipped
However India's top truck maker by sales Tata Motors rose 1.13% to
Rs 160.70.
According to the figures released by the Society of Indian
Automobile Manufacturers (Siam), passenger car sales declined 6.6%
to 98,900 units in October 2008 over October 2007. Sales of trucks
and buses fell 35.9% to 28,027 units.
HDFC Bank, the country's largest private sector bank by market
capitalisation lost 2.62% to Rs 1060.95 and was the top loser from
Sensex pack.
Reliance Communications (down 1.21% to Rs 225.40), and TCS (down
0.87% to Rs 520), edged lower from Sensex pack.
Among the side counters, Firstsource (up 15.54% to Rs 19.70),
Arvind Mills (up 16.57% to Rs 19.01), and Aurobindo Pharma (up
13.48% to Rs 128.40), surged.
US markets surged on Friday, 7 November 2008 despite another round
of weak economic and earnings data on speculation that the federal
reserve will lower interest rates, after traders shrugged off a
bigger than expected loss in jobs. Nonfarm payrolls declined
240,000 in October 2008, lifting the unemployment rate to a 14-year
high of 6.5%. President-elect Obama said America needs a rescue
plan for the middle class, including a fiscal stimulus plan.
The Dow Jones industrial average jumped 248.02 points, or 2.85%, to
8,943.81. The S&P 500 index advanced 26.11 points, or 2.89%, to
930.99, and the Nasdaq composite index added 38.70 pints, or 2.41%,
to 1,647.40.
Back home, the 30-share BSE Sensex was up 230.07 points or 2.36% at
9,964.29 and the 50-unit S&P Nifty was up 80.35 points or 2.78% to
2,973 on Friday, 7 November 2008 after data showed rise in
infrastructure sector output and positive global cues.
US light crude for December 2008 delivery rose $2.86 to $63.90 a
barrel, today, 10 November 2008, rebounding after sliding on
Friday, 7 November 2008, to a 1-1/2-year low below $60, fuelled by
top exporter Saudi Arabia's plans to cut December 2008 supplies to
Asia, a weaker dollar and hopes that global economies' plans to
lift growth could avert recession.
Foreign institutional investors (FIIs) were net sellers worth Rs
19.27 crore while mutual funds sold shares worth Rs 147.08 crore on
Friday, 7 November 2008, according to provisional data on NSE.
Asian stocks and firm US index futures after China announced a $586
billion package to revive growth in the world's fourth-largest
economy. The BSE Sensex surged past the 10,000 mark and the S&P CNX
Nifty raced past the 3,000 mark in opening trade. Metal stocks
rallied on hopes Chinese demand will rise after the stimulus
package.
The Dow and Nasdaq futures were up 1.40% and 1.44% respectively,
indicating firm start today, 10 November 2008.
Most Asian markets were trading firm today, 10 November 2008.
China's Shanghai Composite surged 4.98% after it announced a
massive economic stimulus package worth $586 billion in an attempt
to bolster its weakening economy. The government has also promised
to loosen credit conditions and cut taxes.
Key benchmark indices in Hong Kong, Japan, Singapore and South
Korea were up by between 0.94% and 5.11%. However Taiwan's Taiwan
Weighted was down 0.76% despite announcing 25 basis points cut in
interest rates for the fourth time in two months after exports
dropped in October 2008 by most in three years.
At 10:25 IST, the BSE 30-share Sensex was up 203.75 points, or
2.04%, to 10,168.04. The Sensex opened 190.27 points higher at
10,154.56. The Sensex rose 316.68 points at the day's high of
10,280.97. At the day's low of 10,095.90, the Sensex rose 131.61
points.
The S&P CNX Nifty gained 64.85 points, or 2.12%, to 3,036
The market breadth, indicating the overall health of the market,
was strong on BSE with 980 shares advancing as compared with 341
that declined. 34 shares remained unchanged.
The total turnover on the BSE amounted to Rs 330 crore by 10:30 IST
Among the 30-member Sensex pack, 26 advanced while the rest
declined.
Metal shares dominated the list of Sensex gainers surged on hopes
Chinese demand will rise after the stimulus package, with the BSE
Metal index advancing 5.91% to 5,456.76, the most among BSE
sectoral indices,
India's top aluminium and copper producer by sales, Sterlite
Industries jumped 8.88% to Rs 268 on 2.32 lakh shares. It was the
top gainer from the Sensex pack.
Tata Steel (up 4.71% to Rs 199.05) and Hindalco Industries (up
4.22% to Rs 63), were the other gainers from the metal pack.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) advanced 2.89% to Rs 1253
Jqaiprakash Associates (up 3.93% to Rs 91.05), ONGC (up 4.11% to Rs
772.05), and ICICI Bank (up 3.42% to Rs 446), edged higher from the
Sensex pack.
Auto stocks were mixed after latest data showing fall in October
2008 sales. Maruti Suzuki India (down 1.78% to Rs 587) and Mahindra
& Mahindra (down 1.52% to Rs 366.60), slipped
However India's top truck maker by sales Tata Motors rose 1.13% to
Rs 160.70.
According to the figures released by the Society of Indian
Automobile Manufacturers (Siam), passenger car sales declined 6.6%
to 98,900 units in October 2008 over October 2007. Sales of trucks
and buses fell 35.9% to 28,027 units.
HDFC Bank, the country's largest private sector bank by market
capitalisation lost 2.62% to Rs 1060.95 and was the top loser from
Sensex pack.
Reliance Communications (down 1.21% to Rs 225.40), and TCS (down
0.87% to Rs 520), edged lower from Sensex pack.
Among the side counters, Firstsource (up 15.54% to Rs 19.70),
Arvind Mills (up 16.57% to Rs 19.01), and Aurobindo Pharma (up
13.48% to Rs 128.40), surged.
US markets surged on Friday, 7 November 2008 despite another round
of weak economic and earnings data on speculation that the federal
reserve will lower interest rates, after traders shrugged off a
bigger than expected loss in jobs. Nonfarm payrolls declined
240,000 in October 2008, lifting the unemployment rate to a 14-year
high of 6.5%. President-elect Obama said America needs a rescue
plan for the middle class, including a fiscal stimulus plan.
The Dow Jones industrial average jumped 248.02 points, or 2.85%, to
8,943.81. The S&P 500 index advanced 26.11 points, or 2.89%, to
930.99, and the Nasdaq composite index added 38.70 pints, or 2.41%,
to 1,647.40.
Back home, the 30-share BSE Sensex was up 230.07 points or 2.36% at
9,964.29 and the 50-unit S&P Nifty was up 80.35 points or 2.78% to
2,973 on Friday, 7 November 2008 after data showed rise in
infrastructure sector output and positive global cues.
US light crude for December 2008 delivery rose $2.86 to $63.90 a
barrel, today, 10 November 2008, rebounding after sliding on
Friday, 7 November 2008, to a 1-1/2-year low below $60, fuelled by
top exporter Saudi Arabia's plans to cut December 2008 supplies to
Asia, a weaker dollar and hopes that global economies' plans to
lift growth could avert recession.
Foreign institutional investors (FIIs) were net sellers worth Rs
19.27 crore while mutual funds sold shares worth Rs 147.08 crore on
Friday, 7 November 2008, according to provisional data on NSE.
Pre Market Report 10/11/2008
Key benchmark indices are likely to extend Friday's, 7 November 2008 gains tracking firm Asian indices boosted by China's nearly $600 billion spending plan to spur the economy. US markets had also rallied on Friday, 7 November 2008. SGX Nifty futures for November 2008 delivery added 42 points in Singapore.
Asian markets advanced today, 10 November 2008 led by China's Shanghai Composite which surged 6.15% to 1,855.16 after it announced a massive economic stimulus package worth $586 billion in an attempt to bolster its weakening economy. The government has also promised to loosen credit conditions and cut taxes. Taiwan's Taiwan Weighted was up 0.05% at 4,744.64 despite announcing 25 basis points cut in interest rates for the fourth time in two months after exports dropped in October 2008 by most in three years.
Hong Kong's Hang Seng added 5.97% or 850.44 points at 15,093.87, Japan's Nikkei rose 5.49% or 470.90 points at 9,053.90, Singapore's Straits Times gained 1.41% or 26.21 points at 1,889.70, and South Korea's Seoul Composite advanced 1.80% or 20.41 points at 1,154.90.
US markets surged on Friday, 7 November 2008 despite another round of weak economic and earnings data on speculation that the federal reserve will lower interest rates, after traders shrugged off a bigger than expected loss in jobs. Nonfarm payrolls declined 240,000 in October 2008, lifting the unemployment rate to a 14-year high of 6.5%. President-elect Obama said America needs a rescue plan for the middle class, including a fiscal stimulus plan.
The Dow Jones industrial average jumped 248.02 points, or 2.85%, to 8,943.81. The S&P 500 index advanced 26.11 points, or 2.89%, to 930.99, and the Nasdaq composite index added 38.70 pints, or 2.41%, to 1,647.40.
Back home, the 30-share BSE Sensex was up 230.07 points or 2.36% at 9,964.29 and the 50-unit S&P Nifty was up 80.35 points or 2.78% to 2,973 on Friday, 7 November 2008 after data showed rise in infrastructure sector output and positive global cues.
Key benchmark indices eked out gains in the week ended Friday, 7 November 2008, ending six-week loosing streak helped by global central bank measures to tackle the turmoil in the financial markets. The BSE 30-share Sensex rose 176.23 points or 1.80% to 9,964.29 in the week ended Friday, 7 November 2008. The S&P CNX Nifty gained 87.30 points or 3.02% to 2,973 in the week.
US light crude for December 2008 delivery rose $2.96 to $64 a barrel, today, 10 November 2008 fuelled by top exporter Saudi Arabia's plans to cut December 2008 supplies to Asia, a weaker dollar and hopes that global economies' plans to lift growth could avert recession.
Asian markets advanced today, 10 November 2008 led by China's Shanghai Composite which surged 6.15% to 1,855.16 after it announced a massive economic stimulus package worth $586 billion in an attempt to bolster its weakening economy. The government has also promised to loosen credit conditions and cut taxes. Taiwan's Taiwan Weighted was up 0.05% at 4,744.64 despite announcing 25 basis points cut in interest rates for the fourth time in two months after exports dropped in October 2008 by most in three years.
Hong Kong's Hang Seng added 5.97% or 850.44 points at 15,093.87, Japan's Nikkei rose 5.49% or 470.90 points at 9,053.90, Singapore's Straits Times gained 1.41% or 26.21 points at 1,889.70, and South Korea's Seoul Composite advanced 1.80% or 20.41 points at 1,154.90.
US markets surged on Friday, 7 November 2008 despite another round of weak economic and earnings data on speculation that the federal reserve will lower interest rates, after traders shrugged off a bigger than expected loss in jobs. Nonfarm payrolls declined 240,000 in October 2008, lifting the unemployment rate to a 14-year high of 6.5%. President-elect Obama said America needs a rescue plan for the middle class, including a fiscal stimulus plan.
The Dow Jones industrial average jumped 248.02 points, or 2.85%, to 8,943.81. The S&P 500 index advanced 26.11 points, or 2.89%, to 930.99, and the Nasdaq composite index added 38.70 pints, or 2.41%, to 1,647.40.
Back home, the 30-share BSE Sensex was up 230.07 points or 2.36% at 9,964.29 and the 50-unit S&P Nifty was up 80.35 points or 2.78% to 2,973 on Friday, 7 November 2008 after data showed rise in infrastructure sector output and positive global cues.
Key benchmark indices eked out gains in the week ended Friday, 7 November 2008, ending six-week loosing streak helped by global central bank measures to tackle the turmoil in the financial markets. The BSE 30-share Sensex rose 176.23 points or 1.80% to 9,964.29 in the week ended Friday, 7 November 2008. The S&P CNX Nifty gained 87.30 points or 3.02% to 2,973 in the week.
US light crude for December 2008 delivery rose $2.96 to $64 a barrel, today, 10 November 2008 fuelled by top exporter Saudi Arabia's plans to cut December 2008 supplies to Asia, a weaker dollar and hopes that global economies' plans to lift growth could avert recession.
Sunday, November 9, 2008
19 American banks go bust in ’08
Ravaged by the financial turmoil, the world’s largest economy, the US,
has this year seen the failure of as many as 19 banks - exactly half
the number of all publicly-listed banks in India.
According to the Federal Deposit Insurance Corporation, the US
regulatory body, which is often appointed as the receiver for failed
banks, the number of bank-failures in the past eight years has grown
to 46 - which is more than the total of 38 banks listed on the Indian
bourses.
Nearly half of the failures has been during the ongoing turmoil in the
US financial market, with a total of 21 banks having failed since
September last year and 19 since January this year, the FDIC data
shows.
The current year has already seen the highest number of bank failures
in the midst of the United States grappling with one of the worst
economic crisis since the Great Depression of 1930s.
Prior to 2008, the highest number of bank collapses was recorded in
2002, when 11 such entities failed.
In India, there are a total of 38 banks listed on the stock exchange,
which include 18 from the private sector and 20 from the public
sector.
On Friday, Houston-based Franklin Bank SSB and Security Pacific Bank
in Los Angeles became the latest bank failures in the US, forcing
state authorities to take them under their control.
Since August 2008 as many as 12 banks have gone bust - a period when
the current financial turbulence began to squeeze the economy.
They include Freedom Bank, Alpha Bank & Trust, Meridian Bank, Main
Street Bank, Washington Mutual Bank, Ameribank, Silver State Bank,
Integrity Bank, The Columbian Bank and Trust and First Priority Bank.
Before August this year, seven banks - First Heritage Bank, First
National Bank of Nevada, IndyMac Bank, First Integrity Bank, ANB
Financial, Hume Bank and Douglass National Bank - had collapsed.
Going by the FDIC data, there were no bank failures in 2005 and 2006.
On the other hand, only two banks had failed in 2000, the lowest
number in last eight years.
In 2007, just three banks failed in the country - Miami Valley Bank,
NetBank and Metropolitan Savings Bank.
The fall of Washington Mutual, the country’s largest savings and loan
entity, is one of the biggest bank failures this year. Better known as
WaMu, its larger rival JPMorgan Chase agreed to acquire the entity in
September.
JPMorgan bought deposits and branches of WaMu for about $1.9 billion,
in a deal brokered by the Federal administration.
Going by the available data, Bank of Honolulu and National State Bank
of Metropolis went bust in 2001.
Then next year, four banks collapsed - First Alliance Bank & Trust
Company, The Malta National Bank, Superior Bank and Sinclair National
Bank.
In 2003 and 2004, the number of banks which failed stood at seven.
They are Southern Pacific Bank, The First National Bank of
Blanchardville, Pulaski Savings Bank, Dollar Savings Bank, Guaranty
National Bank of Tallahassee, Reliance Bank and Bank of Ephraim.
has this year seen the failure of as many as 19 banks - exactly half
the number of all publicly-listed banks in India.
According to the Federal Deposit Insurance Corporation, the US
regulatory body, which is often appointed as the receiver for failed
banks, the number of bank-failures in the past eight years has grown
to 46 - which is more than the total of 38 banks listed on the Indian
bourses.
Nearly half of the failures has been during the ongoing turmoil in the
US financial market, with a total of 21 banks having failed since
September last year and 19 since January this year, the FDIC data
shows.
The current year has already seen the highest number of bank failures
in the midst of the United States grappling with one of the worst
economic crisis since the Great Depression of 1930s.
Prior to 2008, the highest number of bank collapses was recorded in
2002, when 11 such entities failed.
In India, there are a total of 38 banks listed on the stock exchange,
which include 18 from the private sector and 20 from the public
sector.
On Friday, Houston-based Franklin Bank SSB and Security Pacific Bank
in Los Angeles became the latest bank failures in the US, forcing
state authorities to take them under their control.
Since August 2008 as many as 12 banks have gone bust - a period when
the current financial turbulence began to squeeze the economy.
They include Freedom Bank, Alpha Bank & Trust, Meridian Bank, Main
Street Bank, Washington Mutual Bank, Ameribank, Silver State Bank,
Integrity Bank, The Columbian Bank and Trust and First Priority Bank.
Before August this year, seven banks - First Heritage Bank, First
National Bank of Nevada, IndyMac Bank, First Integrity Bank, ANB
Financial, Hume Bank and Douglass National Bank - had collapsed.
Going by the FDIC data, there were no bank failures in 2005 and 2006.
On the other hand, only two banks had failed in 2000, the lowest
number in last eight years.
In 2007, just three banks failed in the country - Miami Valley Bank,
NetBank and Metropolitan Savings Bank.
The fall of Washington Mutual, the country’s largest savings and loan
entity, is one of the biggest bank failures this year. Better known as
WaMu, its larger rival JPMorgan Chase agreed to acquire the entity in
September.
JPMorgan bought deposits and branches of WaMu for about $1.9 billion,
in a deal brokered by the Federal administration.
Going by the available data, Bank of Honolulu and National State Bank
of Metropolis went bust in 2001.
Then next year, four banks collapsed - First Alliance Bank & Trust
Company, The Malta National Bank, Superior Bank and Sinclair National
Bank.
In 2003 and 2004, the number of banks which failed stood at seven.
They are Southern Pacific Bank, The First National Bank of
Blanchardville, Pulaski Savings Bank, Dollar Savings Bank, Guaranty
National Bank of Tallahassee, Reliance Bank and Bank of Ephraim.
US car giants report large losses
US carmaker GM has reported a third quarter operating loss of $4.2bn
(£2.66bn) after Ford announced it lost $2.98bn during the same
period.
GM said it would run out of cash in the first half of 2009 if economic
and market conditions did not improve.
GM said it would cut jobs and costs and has also suspended merger
talks with Chrysler to focus on current issues.
It says about 3,600 workers will be laid off indefinitely early next
year as production is slowed at 10 plants.
Ford meanwhile said it would cut salary-related expenses in North
America by another 10%.
GM and Ford burned though $14.6bn in cash between them in the quarter.
No acquisition
Detroit-based GM posted a third-quarter net loss of $2.5bn, compared
with a loss from continuing operations of $42.5bn a year ago.
Revenue fell to $37.9bn from $43.7bn in the same period in 2007. GM
said it would shed white-collar jobs and cut $2.5bn in capital
spending in 2009.
Although in its statement it did not specifically refer to Chrysler,
GM said it was setting aside considerations for a "strategic
acquisition".
Meanwhile Ford's revenues fell to $32.1bn, down from $41.1bn in the
third quarter of 2007, as vehicle sales in the US plunged to historic
lows.
Ford, which will accelerate plans to produce fuel-efficient cars, said
it was looking at various solutions to support its balance sheet
(£2.66bn) after Ford announced it lost $2.98bn during the same
period.
GM said it would run out of cash in the first half of 2009 if economic
and market conditions did not improve.
GM said it would cut jobs and costs and has also suspended merger
talks with Chrysler to focus on current issues.
It says about 3,600 workers will be laid off indefinitely early next
year as production is slowed at 10 plants.
Ford meanwhile said it would cut salary-related expenses in North
America by another 10%.
GM and Ford burned though $14.6bn in cash between them in the quarter.
No acquisition
Detroit-based GM posted a third-quarter net loss of $2.5bn, compared
with a loss from continuing operations of $42.5bn a year ago.
Revenue fell to $37.9bn from $43.7bn in the same period in 2007. GM
said it would shed white-collar jobs and cut $2.5bn in capital
spending in 2009.
Although in its statement it did not specifically refer to Chrysler,
GM said it was setting aside considerations for a "strategic
acquisition".
Meanwhile Ford's revenues fell to $32.1bn, down from $41.1bn in the
third quarter of 2007, as vehicle sales in the US plunged to historic
lows.
Ford, which will accelerate plans to produce fuel-efficient cars, said
it was looking at various solutions to support its balance sheet
Saturday, November 8, 2008
Regulators shut banks in Texas, California
WASHINGTON (AP) -- Regulators shut down Houston-based Franklin Bank
and Security Pacific Bank in Los Angeles on Friday, bringing the
number of failures of federally insured banks this year to 19.
The Federal Deposit Insurance Corp. was appointed receiver of Franklin
Bank, which had $5.1 billion in assets and $3.7 billion in deposits as
of Sept. 30, and of Security Pacific Bank, with $561.1 million in
assets and $450.1 million in deposits as of Oct. 17
The co-founder and chairman of parent Franklin Bank Corp., Lewis
Ranieri, is credited with inventing mortgage-backed securities two
decades ago, but apparently was unable to save his own company from
getting ensnared in the home-loan bust.
The bank's failure is a bitter irony because it is the mortgage
securitization business of which Ranieri is known as a pioneer -- the
repackaging of home loans as bonds that are sold to investors -- that
was at the heart of the mortgage and credit crises. Last spring, the
audit committee of the company's board found in an investigation
certain weaknesses in accounting, disclosure and other issues relating
to residential real estate loans.
Franklin Bank Corp. just Sunday said it had received proposals for
transactions to strengthen Franklin Bank's capital position and was
keeping regulators informed of the talks' progress.
and Security Pacific Bank in Los Angeles on Friday, bringing the
number of failures of federally insured banks this year to 19.
The Federal Deposit Insurance Corp. was appointed receiver of Franklin
Bank, which had $5.1 billion in assets and $3.7 billion in deposits as
of Sept. 30, and of Security Pacific Bank, with $561.1 million in
assets and $450.1 million in deposits as of Oct. 17
The co-founder and chairman of parent Franklin Bank Corp., Lewis
Ranieri, is credited with inventing mortgage-backed securities two
decades ago, but apparently was unable to save his own company from
getting ensnared in the home-loan bust.
The bank's failure is a bitter irony because it is the mortgage
securitization business of which Ranieri is known as a pioneer -- the
repackaging of home loans as bonds that are sold to investors -- that
was at the heart of the mortgage and credit crises. Last spring, the
audit committee of the company's board found in an investigation
certain weaknesses in accounting, disclosure and other issues relating
to residential real estate loans.
Franklin Bank Corp. just Sunday said it had received proposals for
transactions to strengthen Franklin Bank's capital position and was
keeping regulators informed of the talks' progress.
Friday, November 7, 2008
Post Market Report:07/11/2008
Data showing rise in infrastructure sector output and positive
global cues helped the domestic bourses snap losses in the
preceding two trading session. The BSE Sensex rose 230.07 points or
2.36%. The barometer index breached the psychological 10,000 level
many times in intraday trade though it ended below that level.
Metal stocks rose on recovery in metal prices on the London Metal
Exchange. PSU banks rose on cut in lending rates. IT stocks rose as
a weak rupee offset fall in American depository receipts overnight.
Data showing rise in infrastructure output offset concerns of
economic slowdown triggered by productions cuts announced by
commercial vehicle makers in the last two days and steel maker JSW
Steel today and reduction in gross domestic product (GDP) forecast
for 2009 by the International Monetary Fund. India's infrastructure
sector output grew 5.1% in September 2008 from a year earlier, well
above 2.3% annual growth in August 2008, government data released
earlier in the day showed.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
European shares edged higher as commodities stocks tracked stronger
crude and metals prices and banking shares gained following
interest rate cuts in the previous session. Key benchmark indices
in France, Germany and UK were up by between 0.31% to 1.9%. The
Bank of England slashed the key interest rate by a steep 1.5% on
Thursday, 6 November 2008 and on the same day the European Central
Bank cut the key rate by 50 basis points.
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, and rate cut in
Europe triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Singapore, Hong Kong, Taiwan, rose by
between 1.034% to 3.29%. Japan's Nikkei average was down 3.55% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 100 points
at the opening bell.
The 30-share BSE Sensex was up 230.07 points or 2.36% at 9,964.29.
The index rose 331.15 points at the day's high of 10,065.37 in late
trade. The index fell 121 points at the day's low of 9,631.59 hit
in early trade.
The 50-unit S&P Nifty was up 80.35 points or 2.78% to 2,973.
The BSE clocked a turnover of Rs 3447 crore today as compared to a
turnover of Rs 4010.92 crore on 6 November 2008
The market recovered after a sharp slide in the past two trading
sessions. From the recent high of 10631.12 on 4 November 2008 the
Sensex had lost 896.90 points or 8.43% to 9734.22 on 6 November
2008. There has been a massive erosion in investors' wealth this
year. The Sensex is down 10,322.70 points or 50.88% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 11,242.48 points or 53.01% below its all-time high of
21,206.77 struck on 10 January 2008.
Nifty November 2008 futures were at 2989.10, at a premium of 16.10
points as compared to spot closing of 2973. NSE's futures & options
(F&O) segment turnover was Rs 36,963.32 crore, which was lower than
Rs 43,836.07 crore on Thursday, 6 November 2008.
The BSE Mid-cap index was up 1.11% to 3,355.38, while the BSE
Small-cap index was up 0.51% to 3,900.10. Both the indices
underperformed the Sensex.
The BSE Power index (up 4.43% to 1,777.57), the BSE Oil & Gas index
(up 3.38% to 6,013.57), the BSE Metal index (up 3.18% to 5,152.33),
the BSE PSU index (up 3.01% to 4,965.80), the BSE Realty index (up
2.72% to 2,342.82) outperformed the Sensex.
The BSE Auto index (up 0.5% to 2,661.53), the BSE HealthCare index
(up 0.54% to 2,937.11), the BSE Consumer Durables index (up 1.29%
to 2,094.87), the BSE Capital Goods index (up 1.61% to 7,635.41),
the BSE Bankex (up 1.66% to 5,532.15), the BSE IT index (up 2.01%
to 2,670.54), the BSE Teck index (up 2.16% to 2,085.84) and BSE
FMCG index (up 2.22% to 1,968.70) underperformed the Sensex.
The market breadth turned positive later in the day from earlier
weak breadth. On BSE, 1124 stocks declined while 1417 gained. 75
stocks remained unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 3.95% to Rs 1,217.85 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Reliance Communications (up 5.53% to Rs 228.15), Jaiprakash
Associates (up 4.65% to Rs 87.70) and ITC (up 3.59% to Rs 174.80)
were the major gainers from the Sensex pack.
Power stocks gained. NTPC, Tata Power Company, Reliance
Infrastructure, Reliance Power, Power Grid Corporation of India
rose by between 2.61% to 10.92%.
Metal stocks gained tracking recovery in metal prices on the London
Metal Exchange. Tata Steel, Sterlite Industries, Steel Authority of
India, Hindustan Zinc, National Aluminum Company rose by between
2.07% to 10.68%.
Indiaâ€(TM)s largest aluminum maker by sales, Hindalco Industries
spurted 6.61% on reports the company has cleared the bridge loan
taken to acquire Canada's Novelis. But steel maker JSW Steel
plunged 5.18%, on production cut plan.
Shares of iron ore exporters rose on a television report that the
railway freight rates for iron ore has been cut by 50% from 8
November to 31 December 2008. Sesa Goa rose 3.10% and NMDC gained
2.4%.
The reductions would be applicable for iron ore traffic loaded in
South Eastern, East Coast and South Western Railways and for
distances above 350 kilometer to 400 kilometer
Auto pivotals fell after commercial vehicle makers announced
production cut amid falling demand for vehicles. Ashok Leyland,
India's second-biggest commercial vehicle maker by sales, fell
4.57% on a decision to cut production at its plants to three days a
week until the end of 2008 because of falling demand for its
vehicles.
But India's largest commercial vehicle maker by sales Tata Motors
recovered from the day's low. The stock was down 0.16% to Rs
158.90, off the day's low of Rs 148. Its ADR lost 3.81% overnight
after the company on 6 November 2008 had announced closing of the
commercial vehicle plant at Jamshedpur owing to a demand slump.
The country's largest passenger car maker by sales Maruti Suzuki
fell 0.38%. The company on 1 November 2008 said its sales in
October 2008 dipped 7% at 64,490 units, against 69,415 units in the
same month last year.
Shares of the two-wheeler makers were mixed. Indiaâ€(TM)s largest
motorbike maker by sales Hero Honda Motor rose 4.15%, and TVS Motor
Company fell 1.98%. Indiaâ€(TM)s largest scooter maker by sales Bajaj
Auto was up 0.94%. Last month, reports quoted a senior executive in
Bajaj Auto, India's second biggest motorcycle maker by sales, as
saying that it could cut production in November 2008 after the
festive season.
Meanwhile, the Petroleum Secretary, R S Pandey on Thursday (6
November 2008) said the government was not considering any fuel
price cut at the moment as public sector oil marketing companies
are still incurring revenue loss on sale of various petroleum
products.
Most of the IT stocks spurted after dismal start as a weak rupee
offset slide in weak American depository receipts overnight caused
by worries the US outsourcing business will be curtailed and the
direct impact will be on IT sector after Barack Obama won the US
presidential election early this week. India's third largest IT
exporter by sales Satyam Computer Services rose 3.16% to Rs 277.75,
off the dayâ€(TM)s low of Rs 263. Its American depository receipt
(ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys rose 1.15% to
Rs 1262.50, off the dayâ€(TM)s low of Rs 1205.25 even as ADR fell
10.47%. India's fourth largest IT exporter by sales Wipro rose 2.9%
to Rs 260.45 even as ADR slipped 8.56%. The stock had slipped 6.31%
in previous trading session. India's largest IT exporter by sales
Tata Consultancy Services rose 4.87% to Rs 524.55 off dayâ€(TM)s low
of Rs 485.10. The stock had slipped 1.08% in previous trading
session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee weakened on Friday as expectations of
further foreign investor outflows from the stock market weighed on
sentiment. The partially convertible rupee was at 47.77/78 per
dollar, 0.1 % weaker than 47.66/69 at close on Thursday.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). Bank of Baroda,
Allahabad Bank, Central Bank of India, Oriental Bank of Commerce
and Corporation Bank rose by between 2.09% to 6.21%. All of them
reduced lending rates by 75 bps to 13.25% with effect from 10
November 2008.
India's largest commercial bank State Bank of India (SBI) rose
2.79% on a decision to cut the PLR by 75 basis points (bps) with
effect from 10 November 2008 and deposit rates by 25 to 50 bps
across all maturities effective 1 December 2008.
India's largest private sector bank by net profit ICICI Bank fell
0.67% as American depository receipt (ADR) lost 2.68% overnight.
ICICI Bank's chief executive K.V. Kamath said on 3 November 2008,
the bank will review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 2.64% to Rs 1,088.55 off dayâ€(TM)s low of Rs 1,032 even as ADR
slumped 4.81% on Thursday.
India's largest home loan lender by operating income HDFC jumped
2.64%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous weekâ€(TM)s
10.68% rise.
PSU OMCs rose after the Petroleum Secretary, R.S. Pandey, said, the
government is not considering any fuel price cut at the moment as
public sector oil marketing companies are still incurring revenue
loss on sale of various petroleum products. BPCL, HPCL and Indian
Oil Corporation fell by between 6.85% to 8.94%. Meanwhile, crude
oil rose from a 19-month low in New York as rising stock indexes
allayed concern about waning demand and a weaker dollar bolstered
the appeal of commodities. Oil for December delivery climbed as
much as 2.9%, to $62.50 a barrel on the New York Mercantile
Exchange.
Indiaâ€(TM)s largest state-run oil explorer by market capitalization
ONGC fell 0.29% despite reports Russia has allowed the company to
purchase London-listed Imperial Energy.
India's largest drug maker by sales Ranbaxy Laboratories rose 0.95%
recovering from earlier fall as Daiichi Sankyo Co, Japan's No. 3
drugmaker, said on Friday it had completed the takeover of Ranbaxy
Laboratories, buying a 63.9 % stake for Rs 19980 crore ($4.20
billion). Daiichi Sankyo reached an agreement with the generic
drugmaker in June 2008 to buy a stake of at least 50.1% through a
tender offer, the private placement of new shares and the purchase
of outstanding shares from the founding family.
Plethico Pharmaceuticals was locked at the upper limit of 5% on BSE
on reports the company may pick up stake in a UAE based pharma
retail chain.
Alembic galloped 12.3%on BSE, on buyback plan.
Airline stocks rose on reports Indiaâ€(TM)s two largest private
airlines, Kingfisher Airlines and Jet Airways, are likely to cut
ticket prices by up to Rs 1,000 on domestic routes by December
2008. SpiceJet, Kingfisher Airlines and Jet Airways rose by between
1.26% to 2.89%. The two carriers Kingfisher Airlines and Jet
Airways are under pressure to act, as the aviation ministry wants
them to pass on the benefits of a series of measures announced by
the government to bail out the beleaguered industry.
Last week, oil marketing companies had announced a 17% cut in
aviation turbine fuel (ATF) prices, while the government reduced
customs duty on jet fuel by 5%.
Shares of fertiliser makers extended gains after the fertiliser
minister said on Thursday, 6 November 2008, he expected gas supply
to fertiliser units to more than triple by 2011/12 from current
levels. Rashtriya Chemicals , Tata Chemicals, Chambal Fertilisers &
Chemicals, GNFC, Nagarjuna Fertilizers & Chemicals and National
Fertilizers were up by 2% to 5%.
United Phosphorus surged 3.62% after an interse transfer of shares
took place between the promoter group at 10.3% premium to the
ruling price.
Roman Tarmat rose 10%, on bagging runways upgradation order.
Suzlon Energy clocked the highest volume of 2.72 crore shares on
BSE. GVK Power & Infrastructure (2.23 crore shares), Reliance
Natural Resources (1.1 crore shares), Housing Development &
Infrastructure (87.16 lakh shares) and Tata Tele Maharashtra (79.52
lakh shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 292.84 crore
on BSE. Suzlon Energy (Rs 183.77 crore), State Bank of India (Rs
159.91 crore), Reliance Capital (Rs 151.72 crore) and ICICI Bank
(Rs 123.52 crore) were the other turnover toppers in that order.
global cues helped the domestic bourses snap losses in the
preceding two trading session. The BSE Sensex rose 230.07 points or
2.36%. The barometer index breached the psychological 10,000 level
many times in intraday trade though it ended below that level.
Metal stocks rose on recovery in metal prices on the London Metal
Exchange. PSU banks rose on cut in lending rates. IT stocks rose as
a weak rupee offset fall in American depository receipts overnight.
Data showing rise in infrastructure output offset concerns of
economic slowdown triggered by productions cuts announced by
commercial vehicle makers in the last two days and steel maker JSW
Steel today and reduction in gross domestic product (GDP) forecast
for 2009 by the International Monetary Fund. India's infrastructure
sector output grew 5.1% in September 2008 from a year earlier, well
above 2.3% annual growth in August 2008, government data released
earlier in the day showed.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
European shares edged higher as commodities stocks tracked stronger
crude and metals prices and banking shares gained following
interest rate cuts in the previous session. Key benchmark indices
in France, Germany and UK were up by between 0.31% to 1.9%. The
Bank of England slashed the key interest rate by a steep 1.5% on
Thursday, 6 November 2008 and on the same day the European Central
Bank cut the key rate by 50 basis points.
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, and rate cut in
Europe triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Singapore, Hong Kong, Taiwan, rose by
between 1.034% to 3.29%. Japan's Nikkei average was down 3.55% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 100 points
at the opening bell.
The 30-share BSE Sensex was up 230.07 points or 2.36% at 9,964.29.
The index rose 331.15 points at the day's high of 10,065.37 in late
trade. The index fell 121 points at the day's low of 9,631.59 hit
in early trade.
The 50-unit S&P Nifty was up 80.35 points or 2.78% to 2,973.
The BSE clocked a turnover of Rs 3447 crore today as compared to a
turnover of Rs 4010.92 crore on 6 November 2008
The market recovered after a sharp slide in the past two trading
sessions. From the recent high of 10631.12 on 4 November 2008 the
Sensex had lost 896.90 points or 8.43% to 9734.22 on 6 November
2008. There has been a massive erosion in investors' wealth this
year. The Sensex is down 10,322.70 points or 50.88% in the calendar
year 2008 so far from its close of 20,286.99 on 31 December 2007.
It is 11,242.48 points or 53.01% below its all-time high of
21,206.77 struck on 10 January 2008.
Nifty November 2008 futures were at 2989.10, at a premium of 16.10
points as compared to spot closing of 2973. NSE's futures & options
(F&O) segment turnover was Rs 36,963.32 crore, which was lower than
Rs 43,836.07 crore on Thursday, 6 November 2008.
The BSE Mid-cap index was up 1.11% to 3,355.38, while the BSE
Small-cap index was up 0.51% to 3,900.10. Both the indices
underperformed the Sensex.
The BSE Power index (up 4.43% to 1,777.57), the BSE Oil & Gas index
(up 3.38% to 6,013.57), the BSE Metal index (up 3.18% to 5,152.33),
the BSE PSU index (up 3.01% to 4,965.80), the BSE Realty index (up
2.72% to 2,342.82) outperformed the Sensex.
The BSE Auto index (up 0.5% to 2,661.53), the BSE HealthCare index
(up 0.54% to 2,937.11), the BSE Consumer Durables index (up 1.29%
to 2,094.87), the BSE Capital Goods index (up 1.61% to 7,635.41),
the BSE Bankex (up 1.66% to 5,532.15), the BSE IT index (up 2.01%
to 2,670.54), the BSE Teck index (up 2.16% to 2,085.84) and BSE
FMCG index (up 2.22% to 1,968.70) underperformed the Sensex.
The market breadth turned positive later in the day from earlier
weak breadth. On BSE, 1124 stocks declined while 1417 gained. 75
stocks remained unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 3.95% to Rs 1,217.85 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Reliance Communications (up 5.53% to Rs 228.15), Jaiprakash
Associates (up 4.65% to Rs 87.70) and ITC (up 3.59% to Rs 174.80)
were the major gainers from the Sensex pack.
Power stocks gained. NTPC, Tata Power Company, Reliance
Infrastructure, Reliance Power, Power Grid Corporation of India
rose by between 2.61% to 10.92%.
Metal stocks gained tracking recovery in metal prices on the London
Metal Exchange. Tata Steel, Sterlite Industries, Steel Authority of
India, Hindustan Zinc, National Aluminum Company rose by between
2.07% to 10.68%.
Indiaâ€(TM)s largest aluminum maker by sales, Hindalco Industries
spurted 6.61% on reports the company has cleared the bridge loan
taken to acquire Canada's Novelis. But steel maker JSW Steel
plunged 5.18%, on production cut plan.
Shares of iron ore exporters rose on a television report that the
railway freight rates for iron ore has been cut by 50% from 8
November to 31 December 2008. Sesa Goa rose 3.10% and NMDC gained
2.4%.
The reductions would be applicable for iron ore traffic loaded in
South Eastern, East Coast and South Western Railways and for
distances above 350 kilometer to 400 kilometer
Auto pivotals fell after commercial vehicle makers announced
production cut amid falling demand for vehicles. Ashok Leyland,
India's second-biggest commercial vehicle maker by sales, fell
4.57% on a decision to cut production at its plants to three days a
week until the end of 2008 because of falling demand for its
vehicles.
But India's largest commercial vehicle maker by sales Tata Motors
recovered from the day's low. The stock was down 0.16% to Rs
158.90, off the day's low of Rs 148. Its ADR lost 3.81% overnight
after the company on 6 November 2008 had announced closing of the
commercial vehicle plant at Jamshedpur owing to a demand slump.
The country's largest passenger car maker by sales Maruti Suzuki
fell 0.38%. The company on 1 November 2008 said its sales in
October 2008 dipped 7% at 64,490 units, against 69,415 units in the
same month last year.
Shares of the two-wheeler makers were mixed. Indiaâ€(TM)s largest
motorbike maker by sales Hero Honda Motor rose 4.15%, and TVS Motor
Company fell 1.98%. Indiaâ€(TM)s largest scooter maker by sales Bajaj
Auto was up 0.94%. Last month, reports quoted a senior executive in
Bajaj Auto, India's second biggest motorcycle maker by sales, as
saying that it could cut production in November 2008 after the
festive season.
Meanwhile, the Petroleum Secretary, R S Pandey on Thursday (6
November 2008) said the government was not considering any fuel
price cut at the moment as public sector oil marketing companies
are still incurring revenue loss on sale of various petroleum
products.
Most of the IT stocks spurted after dismal start as a weak rupee
offset slide in weak American depository receipts overnight caused
by worries the US outsourcing business will be curtailed and the
direct impact will be on IT sector after Barack Obama won the US
presidential election early this week. India's third largest IT
exporter by sales Satyam Computer Services rose 3.16% to Rs 277.75,
off the dayâ€(TM)s low of Rs 263. Its American depository receipt
(ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys rose 1.15% to
Rs 1262.50, off the dayâ€(TM)s low of Rs 1205.25 even as ADR fell
10.47%. India's fourth largest IT exporter by sales Wipro rose 2.9%
to Rs 260.45 even as ADR slipped 8.56%. The stock had slipped 6.31%
in previous trading session. India's largest IT exporter by sales
Tata Consultancy Services rose 4.87% to Rs 524.55 off dayâ€(TM)s low
of Rs 485.10. The stock had slipped 1.08% in previous trading
session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee weakened on Friday as expectations of
further foreign investor outflows from the stock market weighed on
sentiment. The partially convertible rupee was at 47.77/78 per
dollar, 0.1 % weaker than 47.66/69 at close on Thursday.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). Bank of Baroda,
Allahabad Bank, Central Bank of India, Oriental Bank of Commerce
and Corporation Bank rose by between 2.09% to 6.21%. All of them
reduced lending rates by 75 bps to 13.25% with effect from 10
November 2008.
India's largest commercial bank State Bank of India (SBI) rose
2.79% on a decision to cut the PLR by 75 basis points (bps) with
effect from 10 November 2008 and deposit rates by 25 to 50 bps
across all maturities effective 1 December 2008.
India's largest private sector bank by net profit ICICI Bank fell
0.67% as American depository receipt (ADR) lost 2.68% overnight.
ICICI Bank's chief executive K.V. Kamath said on 3 November 2008,
the bank will review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 2.64% to Rs 1,088.55 off dayâ€(TM)s low of Rs 1,032 even as ADR
slumped 4.81% on Thursday.
India's largest home loan lender by operating income HDFC jumped
2.64%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous weekâ€(TM)s
10.68% rise.
PSU OMCs rose after the Petroleum Secretary, R.S. Pandey, said, the
government is not considering any fuel price cut at the moment as
public sector oil marketing companies are still incurring revenue
loss on sale of various petroleum products. BPCL, HPCL and Indian
Oil Corporation fell by between 6.85% to 8.94%. Meanwhile, crude
oil rose from a 19-month low in New York as rising stock indexes
allayed concern about waning demand and a weaker dollar bolstered
the appeal of commodities. Oil for December delivery climbed as
much as 2.9%, to $62.50 a barrel on the New York Mercantile
Exchange.
Indiaâ€(TM)s largest state-run oil explorer by market capitalization
ONGC fell 0.29% despite reports Russia has allowed the company to
purchase London-listed Imperial Energy.
India's largest drug maker by sales Ranbaxy Laboratories rose 0.95%
recovering from earlier fall as Daiichi Sankyo Co, Japan's No. 3
drugmaker, said on Friday it had completed the takeover of Ranbaxy
Laboratories, buying a 63.9 % stake for Rs 19980 crore ($4.20
billion). Daiichi Sankyo reached an agreement with the generic
drugmaker in June 2008 to buy a stake of at least 50.1% through a
tender offer, the private placement of new shares and the purchase
of outstanding shares from the founding family.
Plethico Pharmaceuticals was locked at the upper limit of 5% on BSE
on reports the company may pick up stake in a UAE based pharma
retail chain.
Alembic galloped 12.3%on BSE, on buyback plan.
Airline stocks rose on reports Indiaâ€(TM)s two largest private
airlines, Kingfisher Airlines and Jet Airways, are likely to cut
ticket prices by up to Rs 1,000 on domestic routes by December
2008. SpiceJet, Kingfisher Airlines and Jet Airways rose by between
1.26% to 2.89%. The two carriers Kingfisher Airlines and Jet
Airways are under pressure to act, as the aviation ministry wants
them to pass on the benefits of a series of measures announced by
the government to bail out the beleaguered industry.
Last week, oil marketing companies had announced a 17% cut in
aviation turbine fuel (ATF) prices, while the government reduced
customs duty on jet fuel by 5%.
Shares of fertiliser makers extended gains after the fertiliser
minister said on Thursday, 6 November 2008, he expected gas supply
to fertiliser units to more than triple by 2011/12 from current
levels. Rashtriya Chemicals , Tata Chemicals, Chambal Fertilisers &
Chemicals, GNFC, Nagarjuna Fertilizers & Chemicals and National
Fertilizers were up by 2% to 5%.
United Phosphorus surged 3.62% after an interse transfer of shares
took place between the promoter group at 10.3% premium to the
ruling price.
Roman Tarmat rose 10%, on bagging runways upgradation order.
Suzlon Energy clocked the highest volume of 2.72 crore shares on
BSE. GVK Power & Infrastructure (2.23 crore shares), Reliance
Natural Resources (1.1 crore shares), Housing Development &
Infrastructure (87.16 lakh shares) and Tata Tele Maharashtra (79.52
lakh shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 292.84 crore
on BSE. Suzlon Energy (Rs 183.77 crore), State Bank of India (Rs
159.91 crore), Reliance Capital (Rs 151.72 crore) and ICICI Bank
(Rs 123.52 crore) were the other turnover toppers in that order.
Market extends gains as European stocks rise
The key benchmark indices extended gains to hit fresh intraday
highs in mid-afternoon trade as European markets, which opened
after the Indian market, rose in early trade. The BSE Sensex was up
232.58 points or 2.4%. Sensex breached the psychological 10,000
mark in mid-afternoon trade but was now below that level. Data
showing rise in infrastructure sector output and positive global
cues boosted the domestic bourses
Most of the IT stocks came off the day's lows as a weak rupee
offset fall in American depository receipts overnight. PSU banks
rose on cut in lending rates.
Data showing rise in infrastructure output offset concerns of
economic slowdown triggered by productions cuts announced by
commercial vehicle makers in the last two days and steel maker JSW
Steel today and reduction in gross domestic product (GDP) forecast
for 2009 by the International Monetary Fund. India's infrastructure
sector output grew 5.1% in September 2008 from a year earlier, well
above 2.3% annual growth in August 2008, government data released
earlier in the day showed.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
European shares rose in early trade on Friday, as commodities
stocks tracked stronger crude and metals prices and banking shares
gained following interest rate cuts in the previous session. Key
benchmark indices in France, Germany and UK were up by between 0.7%
to 1.81%. The Bank of England slashed interest rate by a steep 1.5%
on Thursday, 6 November 2008 and on the same day the European
Central Bank cut rate by 50 basis points
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, and rate cut in
Europe triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Singapore, Hong Kong, Taiwan, rose by
between 1.034% to 3.29%. Japan's Nikkei average was down 3.55% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 163 points
at the opening bell.
At 14:24 IST, the 30-share BSE Sensex was up 232.58 points or 2.4%
at 9,972.41. The index fell 121 points at the day's low of 9,631.59
hit in early trade. The barometer index rose 291.58 points at the
day's high of 10,025.80 in mid-afternoon trade.
The 50-unit S&P Nifty was up 78.50 points or 2.71% to 2,971.15.
The BSE Mid-cap index was up 0.58% to 3,337.73, while the BSE
Small-cap index was up 0.41% to 3,896.19. Both the indices
underperformed the sensex.
The market breadth turned positive from earlier weak breadth. On
BSE, 1080 stocks declined while 1322 gained. 86 stocks remained
unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 3.88% to Rs 1,217 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Reliance Infrastrucutre (up 7.32% to Rs 542.50), Sterlite
Industries (up 5.15% to Rs 449.90), Jaiprakash Associates (up 4.65%
to Rs 87.70) and were the major gainers from the Sensex pack.
Grasim Industries (down 0.8% to Rs 1,016) and Maruti Suzuki India
(down 0.16% to Rs 599) were the major losers from the Sensex pack.
India's largest drug maker by sales Ranbaxy Laboratories fell 0.32%
even as Daiichi Sankyo Co, Japan's No. 3 drugmaker, said on Friday
it had completed the takeover of Ranbaxy Laboratories, buying a
63.9 % stake for Rs 19980 crore ($4.20 billion). Daiichi Sankyo
reached an agreement with the generic drugmaker in June 2008 to buy
a stake of at least 50.1 % through a tender offer, the private
placement of new shares and the purchase of outstanding shares from
the founding family.
India�s largest aluminum maker by sales, Hindalco Industries
spurted 9.26% on reports the company has cleared the bridge loan
taken to acquire Canada's Novelis.
Telecom stocks rose on bargain hunting after steep losses of the
past two days caused by reports of the government planning to levy
higher spectrum fee. Bharti Airtel, Reliance Communications, Spice
Communictions and Idea Cellular rose by between 0.24% to 2.85%.
Most of the IT stocks spurted after weak start as a weak rupee
offset slide in weak American depository receipts overnight caused
by worries the US outsourcing business will be curtailed and the
direct impact will be on IT sector after Barack Obama won the US
presidential election early this week. India's third largest IT
exporter by sales Satyam Computer Services rose 3.06% to Rs 277.95,
off the day�s low of Rs 263. Its American depository receipt
(ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys rose 2.45% to
Rs 1277, off the day�s low of Rs 1205.25 even as ADR fell 10.47%.
India's fourth largest IT exporter by sales Wipro rose 4.03% to Rs
263.30 even as ADR slipped 8.56%. The stock had slipped 6.31% in
previous trading session. India's largest IT exporter by sales Tata
Consultancy Services rose 5.36% to Rs 526.50 off day�s low of Rs
485.10. The stock had slipped 1.08% in previous trading session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee weakened on Friday as expectations of
further foreign investor outflows from the stock market weighed on
sentiment. The partially convertible rupee was at 47.77/78 per
dollar, 0.1 % weaker than 47.66/69 at close on Thursday.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). Bank of Baroda,
Allahabad Bank, Central Bank of India, Oriental Bank of Commerce
and Corporation Bank rose by between 0.81% to 4.16%. All of them
reduced lending rates by 75 bps to 13.25% with effect from 10
November 2008.
India's largest commercial bank State Bank of India (SBI) rose
1.19% on a decision to cut the PLR by 75 basis points (bps) with
effect from 10 November 2008 and deposit rates by 25 to 50 bps
across all maturities effective 1 December 2008.
India's largest private sector bank by net profit ICICI Bank rose
0.17% to Rs 435 off day�s low of Rs 406.60 even as American
depository receipt (ADR) lost 2.68% overnight. ICICI Bank's chief
executive K.V. Kamath said on 3 November 2008, the bank will review
interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 2.47% to Rs 1085.20 off day�s low of Rs 1,032 even as ADR
slumped 4.81% on Thursday.
India's largest home loan lender by operating income HDFC jumped
3.39%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous week�s
10.68% rise.
India's largest commercial vehicle maker by sales Tata Motors
recovered from the day's low. The stock was now down 0.69% to Rs
158.15, off the day's low of Rs 148. Its ADR lost 3.81% overnight
after the company on 6 November 2008 had announced closing of the
commercial vehicle plant at Jamshedpur owing to a demand slump.
Shares in iron ore exporters such as Sesa Goa and NMDC rose by
between 3.12% to 3.23% after a TV channel said railway freight
rates for iron ore have been cut by 50% from 8 November 2008 to 31
December 2008.
highs in mid-afternoon trade as European markets, which opened
after the Indian market, rose in early trade. The BSE Sensex was up
232.58 points or 2.4%. Sensex breached the psychological 10,000
mark in mid-afternoon trade but was now below that level. Data
showing rise in infrastructure sector output and positive global
cues boosted the domestic bourses
Most of the IT stocks came off the day's lows as a weak rupee
offset fall in American depository receipts overnight. PSU banks
rose on cut in lending rates.
Data showing rise in infrastructure output offset concerns of
economic slowdown triggered by productions cuts announced by
commercial vehicle makers in the last two days and steel maker JSW
Steel today and reduction in gross domestic product (GDP) forecast
for 2009 by the International Monetary Fund. India's infrastructure
sector output grew 5.1% in September 2008 from a year earlier, well
above 2.3% annual growth in August 2008, government data released
earlier in the day showed.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
European shares rose in early trade on Friday, as commodities
stocks tracked stronger crude and metals prices and banking shares
gained following interest rate cuts in the previous session. Key
benchmark indices in France, Germany and UK were up by between 0.7%
to 1.81%. The Bank of England slashed interest rate by a steep 1.5%
on Thursday, 6 November 2008 and on the same day the European
Central Bank cut rate by 50 basis points
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, and rate cut in
Europe triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Singapore, Hong Kong, Taiwan, rose by
between 1.034% to 3.29%. Japan's Nikkei average was down 3.55% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 163 points
at the opening bell.
At 14:24 IST, the 30-share BSE Sensex was up 232.58 points or 2.4%
at 9,972.41. The index fell 121 points at the day's low of 9,631.59
hit in early trade. The barometer index rose 291.58 points at the
day's high of 10,025.80 in mid-afternoon trade.
The 50-unit S&P Nifty was up 78.50 points or 2.71% to 2,971.15.
The BSE Mid-cap index was up 0.58% to 3,337.73, while the BSE
Small-cap index was up 0.41% to 3,896.19. Both the indices
underperformed the sensex.
The market breadth turned positive from earlier weak breadth. On
BSE, 1080 stocks declined while 1322 gained. 86 stocks remained
unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 3.88% to Rs 1,217 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Reliance Infrastrucutre (up 7.32% to Rs 542.50), Sterlite
Industries (up 5.15% to Rs 449.90), Jaiprakash Associates (up 4.65%
to Rs 87.70) and were the major gainers from the Sensex pack.
Grasim Industries (down 0.8% to Rs 1,016) and Maruti Suzuki India
(down 0.16% to Rs 599) were the major losers from the Sensex pack.
India's largest drug maker by sales Ranbaxy Laboratories fell 0.32%
even as Daiichi Sankyo Co, Japan's No. 3 drugmaker, said on Friday
it had completed the takeover of Ranbaxy Laboratories, buying a
63.9 % stake for Rs 19980 crore ($4.20 billion). Daiichi Sankyo
reached an agreement with the generic drugmaker in June 2008 to buy
a stake of at least 50.1 % through a tender offer, the private
placement of new shares and the purchase of outstanding shares from
the founding family.
India�s largest aluminum maker by sales, Hindalco Industries
spurted 9.26% on reports the company has cleared the bridge loan
taken to acquire Canada's Novelis.
Telecom stocks rose on bargain hunting after steep losses of the
past two days caused by reports of the government planning to levy
higher spectrum fee. Bharti Airtel, Reliance Communications, Spice
Communictions and Idea Cellular rose by between 0.24% to 2.85%.
Most of the IT stocks spurted after weak start as a weak rupee
offset slide in weak American depository receipts overnight caused
by worries the US outsourcing business will be curtailed and the
direct impact will be on IT sector after Barack Obama won the US
presidential election early this week. India's third largest IT
exporter by sales Satyam Computer Services rose 3.06% to Rs 277.95,
off the day�s low of Rs 263. Its American depository receipt
(ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys rose 2.45% to
Rs 1277, off the day�s low of Rs 1205.25 even as ADR fell 10.47%.
India's fourth largest IT exporter by sales Wipro rose 4.03% to Rs
263.30 even as ADR slipped 8.56%. The stock had slipped 6.31% in
previous trading session. India's largest IT exporter by sales Tata
Consultancy Services rose 5.36% to Rs 526.50 off day�s low of Rs
485.10. The stock had slipped 1.08% in previous trading session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee weakened on Friday as expectations of
further foreign investor outflows from the stock market weighed on
sentiment. The partially convertible rupee was at 47.77/78 per
dollar, 0.1 % weaker than 47.66/69 at close on Thursday.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). Bank of Baroda,
Allahabad Bank, Central Bank of India, Oriental Bank of Commerce
and Corporation Bank rose by between 0.81% to 4.16%. All of them
reduced lending rates by 75 bps to 13.25% with effect from 10
November 2008.
India's largest commercial bank State Bank of India (SBI) rose
1.19% on a decision to cut the PLR by 75 basis points (bps) with
effect from 10 November 2008 and deposit rates by 25 to 50 bps
across all maturities effective 1 December 2008.
India's largest private sector bank by net profit ICICI Bank rose
0.17% to Rs 435 off day�s low of Rs 406.60 even as American
depository receipt (ADR) lost 2.68% overnight. ICICI Bank's chief
executive K.V. Kamath said on 3 November 2008, the bank will review
interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 2.47% to Rs 1085.20 off day�s low of Rs 1,032 even as ADR
slumped 4.81% on Thursday.
India's largest home loan lender by operating income HDFC jumped
3.39%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous week�s
10.68% rise.
India's largest commercial vehicle maker by sales Tata Motors
recovered from the day's low. The stock was now down 0.69% to Rs
158.15, off the day's low of Rs 148. Its ADR lost 3.81% overnight
after the company on 6 November 2008 had announced closing of the
commercial vehicle plant at Jamshedpur owing to a demand slump.
Shares in iron ore exporters such as Sesa Goa and NMDC rose by
between 3.12% to 3.23% after a TV channel said railway freight
rates for iron ore have been cut by 50% from 8 November 2008 to 31
December 2008.
RCom snaps two-day losses
RCom snaps two-day losses Meanwhile, the BSE Sensex was up 81.99 points, or 0.84%, to 9816.21.
On BSE, 33,872 shares were traded in the counter. The scrip had an average daily volume of 26.65 lakh shares in the past one quarter.
The stock hit a high of Rs 224.80 and a low of Rs 241.20 so far during the day. The stock had a 52-week high of Rs 844 on 10 January 2008 and a 52-week low of Rs 148.60 on 27 October 2008.
The stock had underperformed the market over the past one month till 6 November 2008, declining 27.95% as compared to the Sensex's decline of 17.52%. It had also underperformed the market in the past one quarter, falling 51.58% as compared to the Sensex's decline of 35.42%.
India's second largest listed telecom service provider by sales has an equity capital of Rs 1032.01 crore. Face value per share is Rs 5.
The current price of Rs 224.40 discounts its Q2 September 2008 annualised EPS of Rs 9.08, by a PE multiple of 24.71.
The stock shed 13.69% in the past two straight sessions to Rs 216.20 on 6 November 2008 from Rs 250.50 on 4 November 2008 after Morgan Stanley cut price estimate on the stock by 45% to Rs 280.
Reliance Communication's (RCom) net profit fell 41.5% to Rs 468.74 crore on a 6.5% rise in sales to Rs 3545.65 crore in Q2 September 2008 over Q2 September 2007.
RCom provides telecommunication services. The company provides wireless, wire line, voice, data and Internet communication services.
On BSE, 33,872 shares were traded in the counter. The scrip had an average daily volume of 26.65 lakh shares in the past one quarter.
The stock hit a high of Rs 224.80 and a low of Rs 241.20 so far during the day. The stock had a 52-week high of Rs 844 on 10 January 2008 and a 52-week low of Rs 148.60 on 27 October 2008.
The stock had underperformed the market over the past one month till 6 November 2008, declining 27.95% as compared to the Sensex's decline of 17.52%. It had also underperformed the market in the past one quarter, falling 51.58% as compared to the Sensex's decline of 35.42%.
India's second largest listed telecom service provider by sales has an equity capital of Rs 1032.01 crore. Face value per share is Rs 5.
The current price of Rs 224.40 discounts its Q2 September 2008 annualised EPS of Rs 9.08, by a PE multiple of 24.71.
The stock shed 13.69% in the past two straight sessions to Rs 216.20 on 6 November 2008 from Rs 250.50 on 4 November 2008 after Morgan Stanley cut price estimate on the stock by 45% to Rs 280.
Reliance Communication's (RCom) net profit fell 41.5% to Rs 468.74 crore on a 6.5% rise in sales to Rs 3545.65 crore in Q2 September 2008 over Q2 September 2007.
RCom provides telecommunication services. The company provides wireless, wire line, voice, data and Internet communication services.
Alembic Board to consider buy back of equity shares
Alembic Board to consider buy back of equity shares The board meeting of Alembic will be held on 14 November 2008 to consider buy back of equity shares of the company
Ranbaxy and Daiichi Sankyo successfully completes landmark deal
Ranbaxy and Daiichi Sankyo successfully completes landmark deal Ranbaxy Laboratories and Daiichi Sankyo Company has announced the successful closure of their transformational deal with the execution of the final transfer of the remaining equity shares of the Singh family, in Ranbaxy. Pursuant to this, Daiichi Sankyo has now acquired 63.92% of the equity share capital of Ranbaxy comprising 268,711,323 shares. The company made this announcement during the trading hours today, 07 November 2008
Volatility to the fore
Volatility ruled the roost on the bourses in mid-morning trade. The
BSE Sensex was down 7.75 points or 0.08%. The barometer index swung
218.80 points between the day's high and low so far. The market
sentiment was edgy after the International Monetary Fund (IMF) cut
India's growth forecast for 2,009. But higher US index futures and
recovery in Asian stocks after from intraday steep fall supported
the domestic bourses.
Most of the IT stocks were down on fall in American depository
receipts overnight. FMCG stocks were higher on defensive buying.
PSU bank stocks edged higher on cut in lending rates.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, a steep 1.5% cut in
rate by the Bank of England on Thursday, 6 November 2008 and a 50
basis points cut in rate by the European Central Bank (ECB) on that
day, triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Hong Kong,Taiwan, Singapore rose by
between 1.03% to 3.71%. Japan's Nikkei average was down 2.5% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 88 points
at the opening bell.
At 11:23 IST, the 30-share BSE Sensex was down 7.75 points or 0.08%
at 9,726.47. The index fell 121 points at the day's low of 9,631.59
hit in early trade. The barometer index rose 116.17 points at the
day's high of 9,850.39 in early trade.
The 50-unit S&P Nifty was up 16 points or 0.55% to 2908.65.
The BSE Mid-cap index was down 0.58% to 3,299.30, while the BSE
Small-cap index was down 0.35% to 3,866.75.
The market breadth was weak. On BSE, 1108 stocks declined while 875
gained. 67 stocks remained unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 0.47% to Rs 1,177.10 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Maruti Suzuki India (down 3.38% to Rs 579.70), Tata Power Company
(down 2.03% to Rs 704) and Tata Steel (down 2.15% to Rs 182.25)
were the major losers from the Sensex pack.
NTPC (up 1.87% to Rs 147), Bharti Airtel (up 1.7% to Rs 650.70) and
Hindalco Industries (up 1.06% to Rs 57.30) were the major gainers
from the Sensex pack.
FMCG stocks rose on defensive buying. Britannia Industries,
Hindustan Unilever, ITC, Marico, Tata Tea rose by between 0.53% to
2.28%.
Most of the IT stocks were down on weak American depository
receipts on worries the US outsourcing business will be curtailed
and the direct impact will be on IT sector after Barack Obama won
the US presidential election early this week. India's third largest
IT exporter by sales Satyam Computer Services fell 0.59% extending
previous trading session's loss of 3.36% as its American depository
receipt (ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys slipped 1.31%,
as ADR fell 10.47%. But India's fourth largest IT exporter by sales
Wipro rose 0.71% even as ADR slipped 8.56%. The stock had slipped
6.31% in previous trading session. India's largest IT exporter by
sales Tata Consultancy Services rose 0.16%. The stock had slipped
1.08% in previous trading session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee fell more than half a percent in
opening deals on Friday, 7 November 2008, on expectations that
losses in overseas markets would lead the stock market to drop and
spur foreigners to continue withdrawing their investments. The
partially convertible rupee was at 47.95/96 per dollar, compared to
Thursday's close of 47.66/69 per dollar. A falling rupee augurs
well for the sector as IT companies earn most of their revenues in
dollar terms.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). India's largest
commercial bank State Bank of India (SBI) rose 0.46% on a decision
to cut the PLR by 75 basis points (bps) with effect from 10
November 2008 and deposit rates by 25 to 50 bps across all
maturities effective 1 December 2008.
Bank of Baroda, Allahabad Bank, Central Bank of India, Oriental
Bank of Commerce and Corporation Bank rose by between 0.04% to
0.73%. All of them reduced lending rates by 75 bps to 13.25% with
effect from 10 November 2008.
India's largest private sector bank by net profit ICICI Bank fell
4.18% as American depository receipt (ADR) lost 11.92% overnight.
ICICI Bank's chief executive K.V. Kamath said on 3 November 2008,
the bank will review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
fell 1.26% as ADR slumped 10.78% on Thursday.
India's largest home loan lender by operating income HDFC jumped
1.25%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, Inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous weekâ€(TM)s
10.68% rise.
India's largest commercial vehicle maker by sales Tata Motors
dipped 1.92% to Rs 156.10, off the day's low of Rs 148. Its ADR
lost 8.24% overnight. . The company on 6 November 2008 had
announced closing of the commercial vehicle plant at Jamshedpur
owing to a demand slump.
India's second largest telecom services provider by sales Reliance
Communication rose 3.79% on bargain hunting after a steep slide in
the past two trading sessions.
BSE Sensex was down 7.75 points or 0.08%. The barometer index swung
218.80 points between the day's high and low so far. The market
sentiment was edgy after the International Monetary Fund (IMF) cut
India's growth forecast for 2,009. But higher US index futures and
recovery in Asian stocks after from intraday steep fall supported
the domestic bourses.
Most of the IT stocks were down on fall in American depository
receipts overnight. FMCG stocks were higher on defensive buying.
PSU bank stocks edged higher on cut in lending rates.
The International Monetary Fund, or IMF, on Thursday, 6 November
2008, predicted lower growth in India and economic contractions in
the US, Japan and euro region next year, calling for further
interest rate cuts and fiscal stimulus. Its estimate for India's
growth in 2009 is now 6.3%, 0.6% lower than its earlier estimate of
6.9% made just a month ago. Its estimate for the country's growth
in 2008 is down 0.1% to 7.8%.
Bargain hunting following a 25 basis points rate cut by the central
bank in South Korea on Friday, 7 November 2008, a steep 1.5% cut in
rate by the Bank of England on Thursday, 6 November 2008 and a 50
basis points cut in rate by the European Central Bank (ECB) on that
day, triggered a recovery in Asian stocks from an intra-day fall.
South Korea's Kospi was up almost 4% boosted by the rate cut. Key
benchmark indices in China, Hong Kong,Taiwan, Singapore rose by
between 1.03% to 3.71%. Japan's Nikkei average was down 2.5% with
bargain hunting helping the benchmark pared losses that had taken
it down over 6% earlier in the day. The rate cut in Europe were
announced after Asian markets had closed on Thursday, 6 November
2008.
Trading in US index futures indicated the Dow will rise 88 points
at the opening bell.
At 11:23 IST, the 30-share BSE Sensex was down 7.75 points or 0.08%
at 9,726.47. The index fell 121 points at the day's low of 9,631.59
hit in early trade. The barometer index rose 116.17 points at the
day's high of 9,850.39 in early trade.
The 50-unit S&P Nifty was up 16 points or 0.55% to 2908.65.
The BSE Mid-cap index was down 0.58% to 3,299.30, while the BSE
Small-cap index was down 0.35% to 3,866.75.
The market breadth was weak. On BSE, 1108 stocks declined while 875
gained. 67 stocks remained unchanged.
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries rose 0.47% to Rs 1,177.10 despite
reports it may delay commercial operations of its Jamnagar refinery
to early 2009 as it finishes the final testing of the facility.
Maruti Suzuki India (down 3.38% to Rs 579.70), Tata Power Company
(down 2.03% to Rs 704) and Tata Steel (down 2.15% to Rs 182.25)
were the major losers from the Sensex pack.
NTPC (up 1.87% to Rs 147), Bharti Airtel (up 1.7% to Rs 650.70) and
Hindalco Industries (up 1.06% to Rs 57.30) were the major gainers
from the Sensex pack.
FMCG stocks rose on defensive buying. Britannia Industries,
Hindustan Unilever, ITC, Marico, Tata Tea rose by between 0.53% to
2.28%.
Most of the IT stocks were down on weak American depository
receipts on worries the US outsourcing business will be curtailed
and the direct impact will be on IT sector after Barack Obama won
the US presidential election early this week. India's third largest
IT exporter by sales Satyam Computer Services fell 0.59% extending
previous trading session's loss of 3.36% as its American depository
receipt (ADR) fell 7.19% overnight.
India's second largest IT exporter by sales Infosys slipped 1.31%,
as ADR fell 10.47%. But India's fourth largest IT exporter by sales
Wipro rose 0.71% even as ADR slipped 8.56%. The stock had slipped
6.31% in previous trading session. India's largest IT exporter by
sales Tata Consultancy Services rose 0.16%. The stock had slipped
1.08% in previous trading session.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
Meanwhile, the Indian rupee fell more than half a percent in
opening deals on Friday, 7 November 2008, on expectations that
losses in overseas markets would lead the stock market to drop and
spur foreigners to continue withdrawing their investments. The
partially convertible rupee was at 47.95/96 per dollar, compared to
Thursday's close of 47.66/69 per dollar. A falling rupee augurs
well for the sector as IT companies earn most of their revenues in
dollar terms.
PSU banks rose after top state-owned banks on Thursday, 6 November
2008, cut their prime lending rates (PLR). India's largest
commercial bank State Bank of India (SBI) rose 0.46% on a decision
to cut the PLR by 75 basis points (bps) with effect from 10
November 2008 and deposit rates by 25 to 50 bps across all
maturities effective 1 December 2008.
Bank of Baroda, Allahabad Bank, Central Bank of India, Oriental
Bank of Commerce and Corporation Bank rose by between 0.04% to
0.73%. All of them reduced lending rates by 75 bps to 13.25% with
effect from 10 November 2008.
India's largest private sector bank by net profit ICICI Bank fell
4.18% as American depository receipt (ADR) lost 11.92% overnight.
ICICI Bank's chief executive K.V. Kamath said on 3 November 2008,
the bank will review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
fell 1.26% as ADR slumped 10.78% on Thursday.
India's largest home loan lender by operating income HDFC jumped
1.25%. HDFC is yet to revise its rates, since the firm's borrowing
costs have not come down.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Meanwhile, Inflation based on the wholesale price index rose 10.72%
in the year through 25 October 2008, higher than previous weekâ€(TM)s
10.68% rise.
India's largest commercial vehicle maker by sales Tata Motors
dipped 1.92% to Rs 156.10, off the day's low of Rs 148. Its ADR
lost 8.24% overnight. . The company on 6 November 2008 had
announced closing of the commercial vehicle plant at Jamshedpur
owing to a demand slump.
India's second largest telecom services provider by sales Reliance
Communication rose 3.79% on bargain hunting after a steep slide in
the past two trading sessions.
Pre Market Report 07/11/2008
The market may extend last two days' fall that followed an earlier strong rebound tracking weak Asian stocks. Asian stocks fell sharply for a third day as layoffs and corporate profit warnings piled up in the face of a rapidly slowing global economy. Back home, an unexpected rise in inflation pulled the Sensex down nearly 4% on Thursday, 6 November 2008, in a highly choppy trade.
The rise in inflation shattered hopes of further interest rate cuts by the Reserve Bank of India. Inflation based on the wholesale price index rose 10.72% in the year through 25 October 2008, higher than previous week's 10.68% rise.
The Indian rupee fell more than half a percent in opening deals on Friday, 7 November 2008, on expectations that losses in overseas markets would lead the stock market to drop and spur foreigners to continue withdrawing their investments. At 9:02 IST, the partially convertible rupee was at 47.95/96 per dollar, compared to Thursday's close of 47.66/69 per dollar.
South Korea's central bank cut interest rates on Friday for the third time in a month, joining a global wave of monetary easing aimed at shoring up the world economy and calming panicked financial markets. The Bank of England spooked investors on Thursday, 6 November 2008, by slashing its key rate by 1.5%, bringing borrowing costs down to the lowest since the 1950s.
US stocks overnight posted their worst two-day slide since October 1987, though S&P 500 futures were mostly unchanged as investors awaited the latest US payroll report due on Friday
US crude oil futures fell to a 1-1/2-year low below $60 a barrel on expectations for a drastic pullback in energy demand
The BSE Sensex lost 8.4% in two trading sessions to 9,734.22 on Thursday, 6 November 2008, from 10,631.12 on 4 November 2008. The slide followed a 24.93% jump in the preceding five trading sessions.
The rise in inflation shattered hopes of further interest rate cuts by the Reserve Bank of India. Inflation based on the wholesale price index rose 10.72% in the year through 25 October 2008, higher than previous week's 10.68% rise.
The Indian rupee fell more than half a percent in opening deals on Friday, 7 November 2008, on expectations that losses in overseas markets would lead the stock market to drop and spur foreigners to continue withdrawing their investments. At 9:02 IST, the partially convertible rupee was at 47.95/96 per dollar, compared to Thursday's close of 47.66/69 per dollar.
South Korea's central bank cut interest rates on Friday for the third time in a month, joining a global wave of monetary easing aimed at shoring up the world economy and calming panicked financial markets. The Bank of England spooked investors on Thursday, 6 November 2008, by slashing its key rate by 1.5%, bringing borrowing costs down to the lowest since the 1950s.
US stocks overnight posted their worst two-day slide since October 1987, though S&P 500 futures were mostly unchanged as investors awaited the latest US payroll report due on Friday
US crude oil futures fell to a 1-1/2-year low below $60 a barrel on expectations for a drastic pullback in energy demand
The BSE Sensex lost 8.4% in two trading sessions to 9,734.22 on Thursday, 6 November 2008, from 10,631.12 on 4 November 2008. The slide followed a 24.93% jump in the preceding five trading sessions.
Post Market Report:06/11/2008
The market tumbled in a highly volatile trading session as an
unexpected increase in inflation shattered hopes of further
interest rate cuts by the Reserve Bank of India. Volatility in
index heavyweight Reliance Industries (RIL) caused volatility in
the key benchmark indices. Weak global markets also weighed on the
domestic bourses, as the BSE Sensex plunged 385.79 points or 3.81%
to 9,734.22. Most of the sectoral indices on BSE declined
Asian markets, which opened before Indian market, mirrored
overnight losses in the US as a fresh batch of dismal economic data
underscored the upbeat market mood from Democrat Barack Obama's
victory in the US presidential election. Hong Kong's Hang Seng was
down 7.7% and Japan's Nikkei plunged 6.5%. Key benchmark indices in
China, Singapore, South Korea and Taiwan ended down by 2.44% to
7.56%.
US stocks slumped on Wednesday, 5 November 2008. The Dow Jones
industrial average slid 486.01 points, or 5.05%, to 9,139.27. The
Standard & Poor's 500 Index plunged 52.98 points, or 5.27%, to
close at 952.77. The Nasdaq Composite Index lost 98.48 points, or
5.53% to 1,681.64.
Companies in the US cut an estimated 1,57,000 jobs in October 2008,
the most in almost six years, a private report based on payroll
data showed on Wednesday, 5 November 2008. Meanwhile, the Institute
for Supply Management said the US service sector contracted sharply
in October 2008.
The 30-share BSE Sensex fell 385.79 points or 3.81% to 9,734.22.
The index fell 484.79 points to 9,635.22 in afternoon trade. It
fell 10.56 points at day's high of 10,109.45 in mid-afternoon
trade.
The 50-unit S&P Nifty was down 102.30 points or 3.42% to 2892.65.
The BSE Mid-cap index was down 2.24% to 3,318.41, while the BSE
Small-cap index was down 2.13% to 3,880.27.
The market breadth was weak with 1633 shares losing and 869 stocks
gaining on BSE. A total of 83 stocks were unchanged.
BSE clocked a turnover of Rs 3841 crore as against Rs 4,983.72
crore on 5 November 2008.
Nifty November 2008 futures were at 2883.30, at a discount of 9.35
points as compared to spot closing of 2892.65. NSE's futures &
options (F&O) segment turnover was Rs 43836.07 crore, which was
higher than Rs 38550.94 crore on Wednesday, 5 November 2008.
The BSE Oil & Gas index underperformed the Sensex, falling 4.83%.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by 0.91% to 2.03%
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries extended losses for the second
session. The stock fell 7.71% even as the firm denied a newspaper
report that it had shut five polyester and petrochemical plants
near Mumbai amid falling demand. The stock had tumbled 12.76% in
the previous trading session hit by the media report.
Volatility in the stock was immense. The scrip declined 8.7% at the
day's low of Rs 1159 in late trade. The stock declined 2.3% at the
day's high of Rs 1240 in early trade. The stock had tumbled 12.76%
in the previous trading session hit by the media report about the
plant closure.
Oil exploration and offshore oil services firms fell on fall in
global crude oil prices. Cairn India, Aban Offshore, and Shiv Vani
Oil fell by 3.85% to 8.19%
India's largest state-run oil explorer by market capitalisation
ONGC fell 1.43% despite reports the French oil major Total is
picking up stakes in ONGC Mittal's Nigerian oil blocks.
Oil fell towards $65 a barrel on Thursday, 6 November 2008,
extending its 7% overnight drop caused by weak US economic data and
growing US fuel stockpiles.
State-run GAIL India rose 1.15% on reports it may be nominated as
the sole agency to sell natural gas from Reliance Industries'
eastern offshore KG-D6 block to fuel-starved fertilizer units.
Gains in sector bellwether DLF helped the BSE Realty index
outperformed the Sensex. The index rose 0.60%. DLF, India's biggest
realty developer by market capitalisation, rose 2.46% even as
Morgan Stanley cut price estimate on the stock by 82% to Rs 256.
Indiabulls Real Estate (up 3.13%) and Puravankara Projects (up
1.77%), were other gainers from the realty pack.
Stocks from the broader healthcare sector gained on defensive
buying. The BSE Healthcare index outperformed the Sensex, rising
0.28%. Ranbaxy Laboratories, Glenmark Pharmaceuticals, Dr Reddy's
Laboratories, Lupin, Apollo Hospitals, Glaxosmit Pharmaceuticals,
and Biocon rose between 0.04% to 3.72%.
Drug maker Sun Pharmaceuticals Industries rose 1.67% after the
company received US Food & Drug Administration approval to market
generic version of Sinemet in tablet form in multiple strengths.
Gains in index heavyweight Hindustan Unilever supported the BSE
FMCG index. The index outperformed the Sensex, falling merely
0.08%. Hindustan Unilever, which makes daily use products like
soaps and detergents, rose 3.05%. It has 29.06% weightage on the
BSE FMCG index.
Other FMCG stocks like ITC, United Spirits, Tata Tea, Nestle India,
Dabur India, GlaxoSmithkline Consumer Healthcare, United Breweries,
and Marico declined by 0.32% to 8.33%.
Heavy electrical equipments maker Bharat Heavy Electricals (Bhel)
helped the BSE Capital Goods index outpeforme the Sensex. The index
fell 1.02%. Bhel rose 0.52%. The stock has 23.49% weightage on the
BSE Capital Goods index. Suzlon Energy (up 2.74%), and Punj Lloyd
(up 2.34%), were the other gainers in the pack.
However, stocks like Larsen & Toubro, Crompton Greaves, Siemens,
ABB, Areva T&D and Thermax fell by 0.71% to 5.28%
The BSE Consumer Durables outperformed the Sensex, falling 1.90%.
This was on the back of strong gains in Gitanjali Gems and Rajesh
Exports, which rose 10.21% and 3.36% respectively. Meanwhile,
Videocon Industries, Titan Industries, Lloyd Electric and Blue Star
fell by 1.16% to 4.92%.
The BSE Power index outperformed the Sensex, falling 2%. GVK Power
& Infrastructure rose 9%. Power and allied projects developer GMR
Infrastructure rose 3.83% after the company said the group is
pursing possibility of acquiring a coal mine in Indonesia.
Meanwhile, Neyveli Lignite, Tata Power and Reliance Infrastructure
fell by 2.76% to 5.12%.
The BSE Auto index outperformed the Sensex, falling 2.92%. This was
despite the massive fall witnessed by Tata Motors.
Tata Motors, India's largest commercial vehicle maker by sales,
tumbled 12.17%, extending losses for the second session, as the
firm closed its commercial vehicle plant in Jamshedpur for three
days starting today to avoid a build-up of inventory. The stock
moved in the range of Rs 154.55 and Rs 175. The stock had declined
6.53% in the previous session, ahead of the announcement.
Commercial vehicles maker Ashok Leyland plunged 9.33% after the
company posted 50.2% fall in sales to 3397 units in October 2008
over October 2007.
Banking shares fell in volatile trade on higher inflation and on
comments by State Bank of India chief O.P. Bhatt that there is not
enough liquidity in the banking system. India's largest commercial
bank State Bank of India fell 4.58% after Bhatt said the bank will
announce a 75 basis point cut in its prime lending rate later
today.
India's largest private sector bank by market capitalisation ICICI
Bank fell 3.87%. HDFC Bank and Axis Bank fell 3.10% and 3.51%
respectively. The BSE Bankex outperformed the Sensex, falling
3.41%.
Shares of the software exporters fell as American depository
receipt (ADR) of Infosys Technologies, Wipro, and Satyam Computer
fell between 4.28% to 7.72% overnight. TCS, Infosys Technologies,
Wipro and Satyam Computer were down by 1.08% to 6.31%. The BSE IT
index underperformed the Sensex, falling 4.26%
World's largest steel maker, ArcelorMittal's poor earnings outlook
for the fourth quarter hit metal shares. World's sixth largest
steel maker Tata Steel fell 13.67%. JSW Steel, Steel Authority of
India, and Jindal Steel & Power, were down 6.02% to 10.80%.
ArcelorMittal, on Wednesday, 5 November 2008, reported
third-quarter net profit below expectations and forecast
significantly lower earnings in the fourth quarter. The company
also announced a series of measures, including more temporary
production cuts and a pause in its growth strategy, in response to
the economic slowdown.
India's largest aluminium maker by sales Hindalco Industries
slipped 7.50% on reports the company bought $2 billion from the
foreign exchange market to part-repay a $3.03 billion bridge loan
it took to buy Canadian aluminium can manufacturer, Novelis.
Sterlite Industries India, a leading producer of copper, tumbled
11.33% after parent Vedanta Resources reported 24.73% fall in net
profit to $350 million in the half year ended 2008 over the half
year ended 2007. The BSE Metal index underperformed the Sensex,
falling 8.41%
Reliance Industries clocked the highest turnover of Rs 391.47 crore
on BSE. Reliance Capital (Rs 202.90 crore), State Bank of India (Rs
173.15 crore), ICICI Bank (Rs 165.32 crore), and Alkali Metals (Rs
161.38 crore), were the other turnover toppers on BSE in that
order.
GVK Power & Infrastructure reported the highest volume of 3.30
crore shaes on BSE. Suzlon Energy (2.27 crore shares), Reliance
Natural Resources (1.39 crore shares), Unitech (1.21 crore shares),
and IFCI (1.16 crore shares), were the other volume toppers on BSE
in that order.
There has been a massive erosion in investors' wealth this year.
The barometer index BSE Sensex is down 10551.78 points or 52.01% in
the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11471.78 points or 54% below its all-time high
of 21,206.77 struck on 10 January 2008.
unexpected increase in inflation shattered hopes of further
interest rate cuts by the Reserve Bank of India. Volatility in
index heavyweight Reliance Industries (RIL) caused volatility in
the key benchmark indices. Weak global markets also weighed on the
domestic bourses, as the BSE Sensex plunged 385.79 points or 3.81%
to 9,734.22. Most of the sectoral indices on BSE declined
Asian markets, which opened before Indian market, mirrored
overnight losses in the US as a fresh batch of dismal economic data
underscored the upbeat market mood from Democrat Barack Obama's
victory in the US presidential election. Hong Kong's Hang Seng was
down 7.7% and Japan's Nikkei plunged 6.5%. Key benchmark indices in
China, Singapore, South Korea and Taiwan ended down by 2.44% to
7.56%.
US stocks slumped on Wednesday, 5 November 2008. The Dow Jones
industrial average slid 486.01 points, or 5.05%, to 9,139.27. The
Standard & Poor's 500 Index plunged 52.98 points, or 5.27%, to
close at 952.77. The Nasdaq Composite Index lost 98.48 points, or
5.53% to 1,681.64.
Companies in the US cut an estimated 1,57,000 jobs in October 2008,
the most in almost six years, a private report based on payroll
data showed on Wednesday, 5 November 2008. Meanwhile, the Institute
for Supply Management said the US service sector contracted sharply
in October 2008.
The 30-share BSE Sensex fell 385.79 points or 3.81% to 9,734.22.
The index fell 484.79 points to 9,635.22 in afternoon trade. It
fell 10.56 points at day's high of 10,109.45 in mid-afternoon
trade.
The 50-unit S&P Nifty was down 102.30 points or 3.42% to 2892.65.
The BSE Mid-cap index was down 2.24% to 3,318.41, while the BSE
Small-cap index was down 2.13% to 3,880.27.
The market breadth was weak with 1633 shares losing and 869 stocks
gaining on BSE. A total of 83 stocks were unchanged.
BSE clocked a turnover of Rs 3841 crore as against Rs 4,983.72
crore on 5 November 2008.
Nifty November 2008 futures were at 2883.30, at a discount of 9.35
points as compared to spot closing of 2892.65. NSE's futures &
options (F&O) segment turnover was Rs 43836.07 crore, which was
higher than Rs 38550.94 crore on Wednesday, 5 November 2008.
The BSE Oil & Gas index underperformed the Sensex, falling 4.83%.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by 0.91% to 2.03%
India's largest private sector firm by market capitalisation and
oil refiner Reliance Industries extended losses for the second
session. The stock fell 7.71% even as the firm denied a newspaper
report that it had shut five polyester and petrochemical plants
near Mumbai amid falling demand. The stock had tumbled 12.76% in
the previous trading session hit by the media report.
Volatility in the stock was immense. The scrip declined 8.7% at the
day's low of Rs 1159 in late trade. The stock declined 2.3% at the
day's high of Rs 1240 in early trade. The stock had tumbled 12.76%
in the previous trading session hit by the media report about the
plant closure.
Oil exploration and offshore oil services firms fell on fall in
global crude oil prices. Cairn India, Aban Offshore, and Shiv Vani
Oil fell by 3.85% to 8.19%
India's largest state-run oil explorer by market capitalisation
ONGC fell 1.43% despite reports the French oil major Total is
picking up stakes in ONGC Mittal's Nigerian oil blocks.
Oil fell towards $65 a barrel on Thursday, 6 November 2008,
extending its 7% overnight drop caused by weak US economic data and
growing US fuel stockpiles.
State-run GAIL India rose 1.15% on reports it may be nominated as
the sole agency to sell natural gas from Reliance Industries'
eastern offshore KG-D6 block to fuel-starved fertilizer units.
Gains in sector bellwether DLF helped the BSE Realty index
outperformed the Sensex. The index rose 0.60%. DLF, India's biggest
realty developer by market capitalisation, rose 2.46% even as
Morgan Stanley cut price estimate on the stock by 82% to Rs 256.
Indiabulls Real Estate (up 3.13%) and Puravankara Projects (up
1.77%), were other gainers from the realty pack.
Stocks from the broader healthcare sector gained on defensive
buying. The BSE Healthcare index outperformed the Sensex, rising
0.28%. Ranbaxy Laboratories, Glenmark Pharmaceuticals, Dr Reddy's
Laboratories, Lupin, Apollo Hospitals, Glaxosmit Pharmaceuticals,
and Biocon rose between 0.04% to 3.72%.
Drug maker Sun Pharmaceuticals Industries rose 1.67% after the
company received US Food & Drug Administration approval to market
generic version of Sinemet in tablet form in multiple strengths.
Gains in index heavyweight Hindustan Unilever supported the BSE
FMCG index. The index outperformed the Sensex, falling merely
0.08%. Hindustan Unilever, which makes daily use products like
soaps and detergents, rose 3.05%. It has 29.06% weightage on the
BSE FMCG index.
Other FMCG stocks like ITC, United Spirits, Tata Tea, Nestle India,
Dabur India, GlaxoSmithkline Consumer Healthcare, United Breweries,
and Marico declined by 0.32% to 8.33%.
Heavy electrical equipments maker Bharat Heavy Electricals (Bhel)
helped the BSE Capital Goods index outpeforme the Sensex. The index
fell 1.02%. Bhel rose 0.52%. The stock has 23.49% weightage on the
BSE Capital Goods index. Suzlon Energy (up 2.74%), and Punj Lloyd
(up 2.34%), were the other gainers in the pack.
However, stocks like Larsen & Toubro, Crompton Greaves, Siemens,
ABB, Areva T&D and Thermax fell by 0.71% to 5.28%
The BSE Consumer Durables outperformed the Sensex, falling 1.90%.
This was on the back of strong gains in Gitanjali Gems and Rajesh
Exports, which rose 10.21% and 3.36% respectively. Meanwhile,
Videocon Industries, Titan Industries, Lloyd Electric and Blue Star
fell by 1.16% to 4.92%.
The BSE Power index outperformed the Sensex, falling 2%. GVK Power
& Infrastructure rose 9%. Power and allied projects developer GMR
Infrastructure rose 3.83% after the company said the group is
pursing possibility of acquiring a coal mine in Indonesia.
Meanwhile, Neyveli Lignite, Tata Power and Reliance Infrastructure
fell by 2.76% to 5.12%.
The BSE Auto index outperformed the Sensex, falling 2.92%. This was
despite the massive fall witnessed by Tata Motors.
Tata Motors, India's largest commercial vehicle maker by sales,
tumbled 12.17%, extending losses for the second session, as the
firm closed its commercial vehicle plant in Jamshedpur for three
days starting today to avoid a build-up of inventory. The stock
moved in the range of Rs 154.55 and Rs 175. The stock had declined
6.53% in the previous session, ahead of the announcement.
Commercial vehicles maker Ashok Leyland plunged 9.33% after the
company posted 50.2% fall in sales to 3397 units in October 2008
over October 2007.
Banking shares fell in volatile trade on higher inflation and on
comments by State Bank of India chief O.P. Bhatt that there is not
enough liquidity in the banking system. India's largest commercial
bank State Bank of India fell 4.58% after Bhatt said the bank will
announce a 75 basis point cut in its prime lending rate later
today.
India's largest private sector bank by market capitalisation ICICI
Bank fell 3.87%. HDFC Bank and Axis Bank fell 3.10% and 3.51%
respectively. The BSE Bankex outperformed the Sensex, falling
3.41%.
Shares of the software exporters fell as American depository
receipt (ADR) of Infosys Technologies, Wipro, and Satyam Computer
fell between 4.28% to 7.72% overnight. TCS, Infosys Technologies,
Wipro and Satyam Computer were down by 1.08% to 6.31%. The BSE IT
index underperformed the Sensex, falling 4.26%
World's largest steel maker, ArcelorMittal's poor earnings outlook
for the fourth quarter hit metal shares. World's sixth largest
steel maker Tata Steel fell 13.67%. JSW Steel, Steel Authority of
India, and Jindal Steel & Power, were down 6.02% to 10.80%.
ArcelorMittal, on Wednesday, 5 November 2008, reported
third-quarter net profit below expectations and forecast
significantly lower earnings in the fourth quarter. The company
also announced a series of measures, including more temporary
production cuts and a pause in its growth strategy, in response to
the economic slowdown.
India's largest aluminium maker by sales Hindalco Industries
slipped 7.50% on reports the company bought $2 billion from the
foreign exchange market to part-repay a $3.03 billion bridge loan
it took to buy Canadian aluminium can manufacturer, Novelis.
Sterlite Industries India, a leading producer of copper, tumbled
11.33% after parent Vedanta Resources reported 24.73% fall in net
profit to $350 million in the half year ended 2008 over the half
year ended 2007. The BSE Metal index underperformed the Sensex,
falling 8.41%
Reliance Industries clocked the highest turnover of Rs 391.47 crore
on BSE. Reliance Capital (Rs 202.90 crore), State Bank of India (Rs
173.15 crore), ICICI Bank (Rs 165.32 crore), and Alkali Metals (Rs
161.38 crore), were the other turnover toppers on BSE in that
order.
GVK Power & Infrastructure reported the highest volume of 3.30
crore shaes on BSE. Suzlon Energy (2.27 crore shares), Reliance
Natural Resources (1.39 crore shares), Unitech (1.21 crore shares),
and IFCI (1.16 crore shares), were the other volume toppers on BSE
in that order.
There has been a massive erosion in investors' wealth this year.
The barometer index BSE Sensex is down 10551.78 points or 52.01% in
the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11471.78 points or 54% below its all-time high
of 21,206.77 struck on 10 January 2008.
Thursday, November 6, 2008
Mkts see mild recovery; Nifty pulls back above 2900
The markets are still trading sharply lower, despite showing some recovery from the day's lows. Weak global cues and a 400 points dip in the Dow on poor economic numbers is cited as reason for the gap down. Asian markets are also trading in the red. The Nifty has clawed back above the 2,900 mark. Selling is seen in metal, power, auto, capital goods, banking, and select oil stocks. Midcap and smallcap stocks are also under pressure.
The Sensex lost 234 points to 9885 and the Nifty plunged 61 points to 2,933, at 10:42 am. BSE Midcap and Small Cap indices fell over 2% each.
Market breadth is negative; about 962 shares have advanced while 1990 shares have declined. Nearly 239 shares are unchanged.
Tata Steel, Tata Motors, Tata Power and Sterlite Industries are top losers.
The Sensex lost 234 points to 9885 and the Nifty plunged 61 points to 2,933, at 10:42 am. BSE Midcap and Small Cap indices fell over 2% each.
Market breadth is negative; about 962 shares have advanced while 1990 shares have declined. Nearly 239 shares are unchanged.
Tata Steel, Tata Motors, Tata Power and Sterlite Industries are top losers.
ICICI Bank plunges 4.7%
ICICI Bank had touched an intraday high of Rs 433.80 and an intraday low of Rs 420.55. At 09:58 am, the share was quoting at Rs 429.40, down Rs 21.45, or 4.76% on the NSE.
It was trading with volumes of 457,024 shares. Yesterday the share closed down 1.52% or Rs 6.95 at Rs 450.85.
It was trading with volumes of 457,024 shares. Yesterday the share closed down 1.52% or Rs 6.95 at Rs 450.85.
Tata Motors continues to slip
Tata Motors had touched an intraday high of Rs 177 and an intraday low of Rs 166.05. At 09:58 am, the share was quoting at Rs 167.90, down Rs 14.3, or 7.85% on the NSE.
It was trading with volumes of 59,827 shares. Yesterday the share closed down 6.06% or Rs 11.75 at Rs 182.20.
It was trading with volumes of 59,827 shares. Yesterday the share closed down 6.06% or Rs 11.75 at Rs 182.20.
Tata Steel melts down 6%
Tata Steel has touched an intraday high of Rs 210 and an intraday low of Rs 200.20. At 09:58 am, the share was quoting at Rs 202.85, down Rs 12.9, or 5.98%.
It was trading with volumes of 90,899 shares. Yesterday the share closed down 10.05% or Rs 24.10 at Rs 215.75.
It was trading with volumes of 90,899 shares. Yesterday the share closed down 10.05% or Rs 24.10 at Rs 215.75.
Sell RIL, RPL on rallies
Subramanian told CNBC-TV18, "We are coming after few years of significant upturn on the refining side and now margins are slowing down and even for complex refineries like Reliance petroleum and Reliance the mix of the margin between transportation fuel and other side has turned against them. So when any of these big trends turns down the market always tries to see where it’s going to bottom out and not anticipate a bottom based on what has happened in the last one-two years, so to that extent till the refining margins stabilise and say, we can now say this is the base minimum that you can work with. The earnings estimates are going to be all over the place. So I think that’s not the space where you are going to get any joy in the near-term. I would still be cautious on stocks like Reliance and Reliance Petroleum and would sell them on rallies than look to buy them."
Asian markets tumble; Hang Seng slips 6%
Asian markets were trading lower. China's Shanghai Composite fell 2.73% or 48.07 points at 1,712.54.
Hong Kong's Hang Seng slipped 5.95% or 882.48 points at 13,957.68.
Japan's Nikkei plunged 5.68% or 541.06 points at 8,980.18.
Singapore's Straits Times tumbled 4.69% or 87.65 points at 1,781.17.
South Korea's Seoul Composite lost 6.66% or 78.70 points at 1,102.80.
Taiwan's Taiwan Weighted declined 4.85% or 241.47 points at 4,736.7
Hong Kong's Hang Seng slipped 5.95% or 882.48 points at 13,957.68.
Japan's Nikkei plunged 5.68% or 541.06 points at 8,980.18.
Singapore's Straits Times tumbled 4.69% or 87.65 points at 1,781.17.
South Korea's Seoul Composite lost 6.66% or 78.70 points at 1,102.80.
Taiwan's Taiwan Weighted declined 4.85% or 241.47 points at 4,736.7
Sensex drops nearly 5%
Weakness in European stocks and lower US index futures pulled the
market sharply lower in what was a volatile trading session. The
BSE Sensex declined 511.11 points or 4.81% %, with index
heavyweight Reliance Industries (RIL) plunging close to 13% on
brokerage downgrade. The S&P CNX Nifty fell below the psychological
3,000 mark. Realty, banking and metal stocks dropped on profit
taking after recent strong gains.
Firm Asian stocks had triggered an intra-day recovery on the
domestic market in afternoon trade after it had slipped into the
red in mid-morning trade after a strong start. The market had
surged earlier in the day boosted by rally in Asian stocks,
Democrat Barack Obama's election as the next US president and
expectations that a cut in interest rates by state-run banks would
result in lower borrowing costs for the corporates.
The early rally was also triggered by a sentiment by the Commerce
and Industry Minister Kamal Nath after trading hours on Tuesday, 3
November 2008, that the government will further ease foreign
investment rules, including those relating to defence production.
Trading in US futures suggested the Dow would fall 82 points at the
opening bell, as the focus shifted to the weak economy after
Obama's decisive win in the US presidential election. European
markets which opened after the Indian market, fell as the spotlight
moved back to the troubled economy after the US presidential
election. Key benchmark indices in France, Europe and UK were down
by between 1.44% to 1.88%.
Asian markets, which opened before the Indian market, surged
boosted end of the uncertainty about who will lead the US economy
in the midst of great financial peril. Key benchmark indices in
China, Japan, Singapore, Hong Kong, and South Korea were up by
between 1.76% to 4.46%. But the Taiwan Weighted fell 0.29%.
Obama captured the White House today, defeating Republican John
McCain to make history as the first black to be elected as the US
president.
The BSE 30-share Sensex plunged 511.11 points or 4.81% to
10,120.01. The Sensex surged 314.29 points at day's high of
10,945.41 in early trade. The index slumped 579.60 points at the
day's low of 10,051.52 in late trade.
The S&P CNX Nifty was down 147.15 points or 4.68% to 2,994.95.
The market snapped gains of the last five trading sessions. From a
low of 8,509.56 on 27 October 2008, the BSE Sensex had risen
2,121.56 points or 24.93% to 10,631.12 on 4 November 2008. But
there has been a massive erosion in investors' wealth this year.
The barometer index BSE Sensex is down 10,166.98 points or 50.15%
in the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11,086.76 points or 52.27% below its all-time
high of 21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 4,973 crore today as compared to a
turnover of Rs 4,431.22 on 4 November 2008.
Nifty November 2008 futures were at 2973.50, at a discount of 21.45
points as compared to spot closing of 2994.95. NSE's futures &
options (F&O) segment turnover was Rs 38,550.94 crore, which was
higher than Rs 33,758.52 crore on Tuesday, 4 November 2008.
The BSE Mid-Cap index was down 1.5% at 3,394.61 and the BSE
Small-Cap index was down 1.74% at 3,964.78. Both the indices
outperformed the Sensex.
The BSE Oil & Gas index (down 9.44% to 6,112.11), the BSE Metal
index (down 6.88% to 5,451.74), the BSE Realty index (down 5.64% to
2,267) underperformed the Sensex.
The BSE Capital Goods index (down 4.42% to 7,591.64), the BSE PSU
index (down 2.82% to 4,935.52), the BSE Teck index (down 2.64% to
2,142.67), the BSE Power index (down 2.5% to 1,736.92), the BSE
Auto index (down 2.28% to 2,727,82), the BSE Bankex (down 1.87% to
5,633.94), BSE FMCG index (down 1.72% to 1,927.53), the BSE
Consumer Durables index (down 0.82% to 2,108.29), the BSE IT index
(down 0.57% to 2,734.35), the BSE HealthCare index (up 1.18% to
2,913.22), outperformed the Sensex.
The market breadth turned weak in late trade in contrast to a
strong breadth earlier in the day. On BSE, 1,000 shares advanced as
compared to 1,565 that declined. 73 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) slumped 12.76% to Rs 1,269.45
after ABN Amro recommended a 'sell' on the stock and cut its target
price by whopping 38% to Rs 1,150 from Rs 1,850 earlier. The scrip
was the biggest loser from the Sensex pack.
Jaiprakash Associates (down 10.01% to Rs 80.50), Grasim Industries
(down 7.28% to Rs 1,049.45), Tata Motors (down 6.53% to Rs 181.20),
and ACC (down 7% to Rs 470.95) were the other major losers from
Sensex pack.
Telecom stocks fell on concerns that a government move to charge
more for radio spectrum may impact their earnings. India's largest
telecom services provider by sales Bharti Airtel fell 4.54%.
India's second largest telecom services provider by sales, Reliance
Communication slipped 9.5% after Morgan Stanley cut price estimate
on the stock by 45% to Rs 280.
As per reports, the government plans to increase fees telecom firms
pay for using additional spectrum by up to 2% of the firms'
revenue, and would also levy a one-time charge for granting
additional spectrum.
Metal stocks declined after recent sharp fall in metal prices on
global recession worries. Hindalco Industries, Hiindustan Zinc,
Sterlite Industries, Steel Authority of India fell by between 2.75%
to 12.76%. Tata Steel, the world's sixth largest steel maker, was
down 10.05% after ArcelorMittal on reported quarterly operating
profit and sales below expectations.
IT stocks were mixed amid strong rupee and on worries the US
outsourcing business will be curtailed after Obama won the US
presidential election. India's third largest IT exporter by sales
Satyam Computer Services rose 0.27% even as American depository
receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 2.72% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
fell 0.91%, even as ADR rose 4.84%. India's largest IT exporter by
sales Tata Consultancy Services slipped 0.5% off day's high of Rs
548.90.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
The rupee strengthened 0.5% to 47.46/50 per dollar. A strong rupee
affects the IT companies as they earn most of their revenues in
dollar terms.
Bank stocks fell following reports private sector banks are
expected to cut their lending and deposit rates in the next 15 days
and will support credit lines to finance companies and mutual
funds. India's largest commercial bank State Bank of India was down
3.59% after its chairman O P Bhatt said on 4 November 2008 the bank
was likely to cut interest rates by up to 50 basis points.
Bank of India gained 0.04% on reports it has cut its prime lending
rate by 75 basis points to 13.25% with effect from Thursday, 6
November 2008. But Indian Bank fell 3,12% after early gains after
the bank said yesterday it will consider cutting its lending and
deposit rates by 50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
State Bank of Travancore rose 5% after bank fixed 20 December 2008
as the record date for 10 for 1 stock split.
India's largest private sector bank by net profit ICICI Bank fell
1.62% even as the American depository receipt (ADR) spurted 7.28%
overnight. ICICI Bank's chief executive K.V. Kamath said on 3
November 2008, the bank will review interest rates in the next few
days.
India's second largest private sector bank by net profit HDFC Bank
slipped 1.46%, even as ADR jumped 7.63% on Tuesday.
India's largest home loan lender by operating income HDFC fell
8.63%.
As per recent reports, public sector banks are likely to cut
deposit and lending rates by 50 to 75 basis points within one week.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Most realty stocks plunged in late trade from their gains earlier
in the day despite hopes lower interest rates will spur demand for
residential properties. Realty majors, Unitech, Anant Raj
Industries, Parsvnath Developers, DLF slipped by between 2.6% to
11.59%. Indiabulls Real Estate rose 5.15%.
IVRCL Infrastructures & Projects rose 0.33%, extending gains for
the fourth session in a row, on strong Q2 results and healthy order
book.
GMR Infrastructure spurted 4.26% on reports the company is set to
buy a coal mine in Indonesia
Gammon India surged 6.76% extending gains for the fourth day in a
row, on bargain hunting after a recent sharp fall caused by poor
quarterly performance.
Healthcare stocks were mixed following reports the drug regulator
National Pharmaceutical Pricing Authority has issued notices to
Cipla, Ranbaxy Laboratories and Piramal Healthcare among others for
overcharging. Cipla, Glenmark Pharmaceuticals, and Ranbaxy
Laboratories fell between 0.38% to 2.06%. Dr. Redddy's
Laboratories, Piramal Healthcare rose between 0.04% to 1.18%. The
drug regulator has asked these firms to deposit Rs 1630 crore with
the government exchequer besides explaining the hike.
Auto stocks were mixed on reports the government may cut petrol and
diesel prices to drum up support with voters ahead of key state
elections later this month. Maruti Suzuki India and Hero Honda
Motors rose by between 0.08% to 1.41%. Mahindra & Mahindra and Tata
Motors fell by between 6.07% to 6.53%.
Ashok Leyland was fell 8.96% on reports of plans to reduce monthly
production target for November 2008 to 1,500 units from the average
6,800 units it clocked each month in the first six months of this
fiscal.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 2.21% to 3.02%.
Meanwhile, Crude oil fell in New York as investors judged
yesterday's 10 percent gain excessive, and on forecasts that a
government report will show U.S. crude inventories swelling as
demand ebbs. Crude oil for December delivery declined as much as
$3.47, or 4.9 %, to $67.06 a barrel on the New York Mercantile
Exchange.
GAIL India slumped 15.34% even on signing a cooperation agreement
with the Himachal Pradesh state government for extension of the
proposed Dadri-Bawana-Nangal natural gas pipeline to the state.
Airlines stocks declined on reports of Kingfisher Airlines
defaulting on payment of lease rentals on aircrafts. Kingfisher
Airlines tumbled 16.57%. SpiceJet and Jet Airways fell by between
4.49% to 6.39%. The government had recently scrapped customs duty
on jet fuel.
Shri Dinesh Mills was locked 10% upper limit at Rs 795.95 at 11:36
IST on BSE, on setting record date for 10-for-1 stock split.
Shree Cement rose 2.56% after cement shipments rose 12.81% to 6.25
lakh tonnes in October 2008 over October 2007.
Compact Disc India galloped 5.52% after the company said it would
issue convertible warrants at a sharp premium to the prevailing
stock price.
GVK Power & Infrastructure clocked the highest volume of 3.69 crore
shares on BSE. Suzlon Energy (3.46 crore shares), Reliance Natural
resources (1.76 crore shares), IFCI (1.29 crore shares) and
Reliance Petroleum (1.19 crore shares) were the other volume
toppers in that order.
market sharply lower in what was a volatile trading session. The
BSE Sensex declined 511.11 points or 4.81% %, with index
heavyweight Reliance Industries (RIL) plunging close to 13% on
brokerage downgrade. The S&P CNX Nifty fell below the psychological
3,000 mark. Realty, banking and metal stocks dropped on profit
taking after recent strong gains.
Firm Asian stocks had triggered an intra-day recovery on the
domestic market in afternoon trade after it had slipped into the
red in mid-morning trade after a strong start. The market had
surged earlier in the day boosted by rally in Asian stocks,
Democrat Barack Obama's election as the next US president and
expectations that a cut in interest rates by state-run banks would
result in lower borrowing costs for the corporates.
The early rally was also triggered by a sentiment by the Commerce
and Industry Minister Kamal Nath after trading hours on Tuesday, 3
November 2008, that the government will further ease foreign
investment rules, including those relating to defence production.
Trading in US futures suggested the Dow would fall 82 points at the
opening bell, as the focus shifted to the weak economy after
Obama's decisive win in the US presidential election. European
markets which opened after the Indian market, fell as the spotlight
moved back to the troubled economy after the US presidential
election. Key benchmark indices in France, Europe and UK were down
by between 1.44% to 1.88%.
Asian markets, which opened before the Indian market, surged
boosted end of the uncertainty about who will lead the US economy
in the midst of great financial peril. Key benchmark indices in
China, Japan, Singapore, Hong Kong, and South Korea were up by
between 1.76% to 4.46%. But the Taiwan Weighted fell 0.29%.
Obama captured the White House today, defeating Republican John
McCain to make history as the first black to be elected as the US
president.
The BSE 30-share Sensex plunged 511.11 points or 4.81% to
10,120.01. The Sensex surged 314.29 points at day's high of
10,945.41 in early trade. The index slumped 579.60 points at the
day's low of 10,051.52 in late trade.
The S&P CNX Nifty was down 147.15 points or 4.68% to 2,994.95.
The market snapped gains of the last five trading sessions. From a
low of 8,509.56 on 27 October 2008, the BSE Sensex had risen
2,121.56 points or 24.93% to 10,631.12 on 4 November 2008. But
there has been a massive erosion in investors' wealth this year.
The barometer index BSE Sensex is down 10,166.98 points or 50.15%
in the calendar year 2008 so far from its close of 20,286.99 on 31
December 2007. It is 11,086.76 points or 52.27% below its all-time
high of 21,206.77 struck on 10 January 2008.
BSE clocked a turnover of Rs 4,973 crore today as compared to a
turnover of Rs 4,431.22 on 4 November 2008.
Nifty November 2008 futures were at 2973.50, at a discount of 21.45
points as compared to spot closing of 2994.95. NSE's futures &
options (F&O) segment turnover was Rs 38,550.94 crore, which was
higher than Rs 33,758.52 crore on Tuesday, 4 November 2008.
The BSE Mid-Cap index was down 1.5% at 3,394.61 and the BSE
Small-Cap index was down 1.74% at 3,964.78. Both the indices
outperformed the Sensex.
The BSE Oil & Gas index (down 9.44% to 6,112.11), the BSE Metal
index (down 6.88% to 5,451.74), the BSE Realty index (down 5.64% to
2,267) underperformed the Sensex.
The BSE Capital Goods index (down 4.42% to 7,591.64), the BSE PSU
index (down 2.82% to 4,935.52), the BSE Teck index (down 2.64% to
2,142.67), the BSE Power index (down 2.5% to 1,736.92), the BSE
Auto index (down 2.28% to 2,727,82), the BSE Bankex (down 1.87% to
5,633.94), BSE FMCG index (down 1.72% to 1,927.53), the BSE
Consumer Durables index (down 0.82% to 2,108.29), the BSE IT index
(down 0.57% to 2,734.35), the BSE HealthCare index (up 1.18% to
2,913.22), outperformed the Sensex.
The market breadth turned weak in late trade in contrast to a
strong breadth earlier in the day. On BSE, 1,000 shares advanced as
compared to 1,565 that declined. 73 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) slumped 12.76% to Rs 1,269.45
after ABN Amro recommended a 'sell' on the stock and cut its target
price by whopping 38% to Rs 1,150 from Rs 1,850 earlier. The scrip
was the biggest loser from the Sensex pack.
Jaiprakash Associates (down 10.01% to Rs 80.50), Grasim Industries
(down 7.28% to Rs 1,049.45), Tata Motors (down 6.53% to Rs 181.20),
and ACC (down 7% to Rs 470.95) were the other major losers from
Sensex pack.
Telecom stocks fell on concerns that a government move to charge
more for radio spectrum may impact their earnings. India's largest
telecom services provider by sales Bharti Airtel fell 4.54%.
India's second largest telecom services provider by sales, Reliance
Communication slipped 9.5% after Morgan Stanley cut price estimate
on the stock by 45% to Rs 280.
As per reports, the government plans to increase fees telecom firms
pay for using additional spectrum by up to 2% of the firms'
revenue, and would also levy a one-time charge for granting
additional spectrum.
Metal stocks declined after recent sharp fall in metal prices on
global recession worries. Hindalco Industries, Hiindustan Zinc,
Sterlite Industries, Steel Authority of India fell by between 2.75%
to 12.76%. Tata Steel, the world's sixth largest steel maker, was
down 10.05% after ArcelorMittal on reported quarterly operating
profit and sales below expectations.
IT stocks were mixed amid strong rupee and on worries the US
outsourcing business will be curtailed after Obama won the US
presidential election. India's third largest IT exporter by sales
Satyam Computer Services rose 0.27% even as American depository
receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 2.72% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
fell 0.91%, even as ADR rose 4.84%. India's largest IT exporter by
sales Tata Consultancy Services slipped 0.5% off day's high of Rs
548.90.
Obama has strong reservations on outsourcing from the US. He had
made many statements during his election speeches that he would
discourage outsourcing from the US when he comes into power.
The rupee strengthened 0.5% to 47.46/50 per dollar. A strong rupee
affects the IT companies as they earn most of their revenues in
dollar terms.
Bank stocks fell following reports private sector banks are
expected to cut their lending and deposit rates in the next 15 days
and will support credit lines to finance companies and mutual
funds. India's largest commercial bank State Bank of India was down
3.59% after its chairman O P Bhatt said on 4 November 2008 the bank
was likely to cut interest rates by up to 50 basis points.
Bank of India gained 0.04% on reports it has cut its prime lending
rate by 75 basis points to 13.25% with effect from Thursday, 6
November 2008. But Indian Bank fell 3,12% after early gains after
the bank said yesterday it will consider cutting its lending and
deposit rates by 50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
State Bank of Travancore rose 5% after bank fixed 20 December 2008
as the record date for 10 for 1 stock split.
India's largest private sector bank by net profit ICICI Bank fell
1.62% even as the American depository receipt (ADR) spurted 7.28%
overnight. ICICI Bank's chief executive K.V. Kamath said on 3
November 2008, the bank will review interest rates in the next few
days.
India's second largest private sector bank by net profit HDFC Bank
slipped 1.46%, even as ADR jumped 7.63% on Tuesday.
India's largest home loan lender by operating income HDFC fell
8.63%.
As per recent reports, public sector banks are likely to cut
deposit and lending rates by 50 to 75 basis points within one week.
The Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
Most realty stocks plunged in late trade from their gains earlier
in the day despite hopes lower interest rates will spur demand for
residential properties. Realty majors, Unitech, Anant Raj
Industries, Parsvnath Developers, DLF slipped by between 2.6% to
11.59%. Indiabulls Real Estate rose 5.15%.
IVRCL Infrastructures & Projects rose 0.33%, extending gains for
the fourth session in a row, on strong Q2 results and healthy order
book.
GMR Infrastructure spurted 4.26% on reports the company is set to
buy a coal mine in Indonesia
Gammon India surged 6.76% extending gains for the fourth day in a
row, on bargain hunting after a recent sharp fall caused by poor
quarterly performance.
Healthcare stocks were mixed following reports the drug regulator
National Pharmaceutical Pricing Authority has issued notices to
Cipla, Ranbaxy Laboratories and Piramal Healthcare among others for
overcharging. Cipla, Glenmark Pharmaceuticals, and Ranbaxy
Laboratories fell between 0.38% to 2.06%. Dr. Redddy's
Laboratories, Piramal Healthcare rose between 0.04% to 1.18%. The
drug regulator has asked these firms to deposit Rs 1630 crore with
the government exchequer besides explaining the hike.
Auto stocks were mixed on reports the government may cut petrol and
diesel prices to drum up support with voters ahead of key state
elections later this month. Maruti Suzuki India and Hero Honda
Motors rose by between 0.08% to 1.41%. Mahindra & Mahindra and Tata
Motors fell by between 6.07% to 6.53%.
Ashok Leyland was fell 8.96% on reports of plans to reduce monthly
production target for November 2008 to 1,500 units from the average
6,800 units it clocked each month in the first six months of this
fiscal.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 2.21% to 3.02%.
Meanwhile, Crude oil fell in New York as investors judged
yesterday's 10 percent gain excessive, and on forecasts that a
government report will show U.S. crude inventories swelling as
demand ebbs. Crude oil for December delivery declined as much as
$3.47, or 4.9 %, to $67.06 a barrel on the New York Mercantile
Exchange.
GAIL India slumped 15.34% even on signing a cooperation agreement
with the Himachal Pradesh state government for extension of the
proposed Dadri-Bawana-Nangal natural gas pipeline to the state.
Airlines stocks declined on reports of Kingfisher Airlines
defaulting on payment of lease rentals on aircrafts. Kingfisher
Airlines tumbled 16.57%. SpiceJet and Jet Airways fell by between
4.49% to 6.39%. The government had recently scrapped customs duty
on jet fuel.
Shri Dinesh Mills was locked 10% upper limit at Rs 795.95 at 11:36
IST on BSE, on setting record date for 10-for-1 stock split.
Shree Cement rose 2.56% after cement shipments rose 12.81% to 6.25
lakh tonnes in October 2008 over October 2007.
Compact Disc India galloped 5.52% after the company said it would
issue convertible warrants at a sharp premium to the prevailing
stock price.
GVK Power & Infrastructure clocked the highest volume of 3.69 crore
shares on BSE. Suzlon Energy (3.46 crore shares), Reliance Natural
resources (1.76 crore shares), IFCI (1.29 crore shares) and
Reliance Petroleum (1.19 crore shares) were the other volume
toppers in that order.
Wednesday, November 5, 2008
Tata Steel slides as ArcelorMittal's Q3 results fall short of expectations
Tata Steel slides as ArcelorMittal's Q3 results fall short of expectations
Meanwhile, the BSE Sensex was down 200.95 points, or 1.89%, to 10426.75.
On BSE, 24.46 lakh shares were traded in the counter. The scrip had an average daily volume of 20.98 lakh shares in the past one quarter.
The stock hit a high of Rs 249.80 and a low of Rs 218.60 so far during the day. The stock had a 52-week high of Rs 952 on 1 January 2008 and a 52-week low of Rs 150 on 27 October 2008.
The stock had underperformed the market over the past one month till 4 November 2008, declining 39.09% as compared to the Sensex's decline of 15.13%. It had also underperformed the market in the past one quarter, falling 65.33% as compared to the Sensex's decline of 27.07%.
Tata Steel, the world's sixth largest steel maker has an equity capital of Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 219.90 discounts its Q2 September 2008 annualised EPS of Rs 97.86, by a PE multiple of 2.24.
ArcelorMittal, the world's largest steelmaker, reported third-quarter net profit below expectations today and forecast significantly lower earnings in the fourth quarter. The company also announced a series of measures, including more temporary production cuts and a pause in its growth strategy, in response to the economic slowdown.
ArcelorMittal reported a 29% growth in net income at $3.8 billion on a 38% increase in sales to $35.2 billion in Q3 September 2008 over Q3 September 2007.
ArcelorMittal's lower-than-expected earnings reflects the slowdown in the sector. Steel prices have come under pressure as the global economy has slowed, prompting the steel makers across the world to scale back production.
Recently, Moody's Investors Service lowered outlook on corporate family rating of Tata Steel to negative from stable. The change in outlook reflects the more challenging operating conditions now facing Tata Steel UK (formerly Corus) 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, Moody's had said.
Tata Steel UK is the 100% subsidiary of Tata Steel, and is the holding company for the European steel operations principally consisting of the Corus group.
Tata Steel's net profit rose 50.1% to Rs 1787.81 crore on a 43.1% rise in sales to Rs 6850.67 crore in Q2 September 2008 over Q2 September 2008.
Tata Steel is an integrated steel producer, which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
Meanwhile, the BSE Sensex was down 200.95 points, or 1.89%, to 10426.75.
On BSE, 24.46 lakh shares were traded in the counter. The scrip had an average daily volume of 20.98 lakh shares in the past one quarter.
The stock hit a high of Rs 249.80 and a low of Rs 218.60 so far during the day. The stock had a 52-week high of Rs 952 on 1 January 2008 and a 52-week low of Rs 150 on 27 October 2008.
The stock had underperformed the market over the past one month till 4 November 2008, declining 39.09% as compared to the Sensex's decline of 15.13%. It had also underperformed the market in the past one quarter, falling 65.33% as compared to the Sensex's decline of 27.07%.
Tata Steel, the world's sixth largest steel maker has an equity capital of Rs 730.58 crore. Face value per share is Rs 10.
The current price of Rs 219.90 discounts its Q2 September 2008 annualised EPS of Rs 97.86, by a PE multiple of 2.24.
ArcelorMittal, the world's largest steelmaker, reported third-quarter net profit below expectations today and forecast significantly lower earnings in the fourth quarter. The company also announced a series of measures, including more temporary production cuts and a pause in its growth strategy, in response to the economic slowdown.
ArcelorMittal reported a 29% growth in net income at $3.8 billion on a 38% increase in sales to $35.2 billion in Q3 September 2008 over Q3 September 2007.
ArcelorMittal's lower-than-expected earnings reflects the slowdown in the sector. Steel prices have come under pressure as the global economy has slowed, prompting the steel makers across the world to scale back production.
Recently, Moody's Investors Service lowered outlook on corporate family rating of Tata Steel to negative from stable. The change in outlook reflects the more challenging operating conditions now facing Tata Steel UK (formerly Corus) 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, Moody's had said.
Tata Steel UK is the 100% subsidiary of Tata Steel, and is the holding company for the European steel operations principally consisting of the Corus group.
Tata Steel's net profit rose 50.1% to Rs 1787.81 crore on a 43.1% rise in sales to Rs 6850.67 crore in Q2 September 2008 over Q2 September 2008.
Tata Steel is an integrated steel producer, which manufactures a variety of steel products. The company's products include steel ball bearing rings, alloy steel bearing rings, annular forgings, flanges, bearings, welded steel tubes, cold rolled strips and seamless tubes. Tata Steel also manufactures metallurgical machinery.
Market off lows
The key benchmark indices recovered from the lower levels in early
afternoon trade led by recovery in banking stocks. But a sharp fall
in index heavyweight Reliance Industries (RIL) capped the recovery.
The BSE Sensex was down 192.87 points or 1.91%, recovering close to
140 points from the day's low.
The slide on the domestic bourses was despite firm Asian stocks
which rose as investors welcomed the end to the uncertainty around
the US presidential election. Key benchmark indices in China,
Japan, Singapore, Hong Kong, and South Korea were up by between
2.44% to 5.33%. But the Taiwan Weighted fell 0.29%.
Democrat Barack Obama captured the White House today, defeating
Republican John McCain to make history as the first black to be
elected as the US president.
At 12:25 IST, the BSE 30-share Sensex was down 192.87 points or
1.91% to 10,428.15. The market had surged earlier in the day
boosted by rally in Asian stocks, Barack Obama's election as the
next US president and expectations that a cut in interest rates by
state-run banks that would result in lower borrowing costs for the
corporates. The early rally was also triggered by a sentiment by
the Commerce and Industry Minister Kamal Nath after trading hours
on Tuesday, 3 November 2008, that the government will further ease
foreign investment rules, including those relating to defence
production.
The Sensex surged 314.29 points at day's high of 10,945.41 in early
trade. The index declined 331.01 points at the day's low of
10,300.11 in early afternoon trade.
The S&P CNX Nifty was down 47.80 points or 1.52% to 3,094.30.
The BSE Mid-Cap index was up 0.95% at 3,479.12 and the BSE
Small-Cap index was up 0.39% at 4,053.10. Both the indices
outperformed the Sensex.
The market breadth was strong. On BSE, 1,230 shares advanced as
compared to 1,073 that declined. 74 shares remained unchanged.
India's second largest telecoms services provider by sales,
Reliance Communication slipped 7.39% on BSE after Morgan Stanley
cut price estimate on the stock by 45% to Rs 280.
Tata Steel (down 5.36% to Rs 227) and Bharti Airtel (down 3.95% to
Rs 689) were the major losers from Sensex pack.
The BSE Oil & Gas index fell 5.33% and was the biggest loser from
the sectoral indices on BSE. India's largest private sector company
by market capitalization and oil refiner Reliance Industries (RIL)
slumped 9.57% to Rs 1,316 after ABN Amro recommended a 'sell' on
the stock and cut its target price by whopping 38% to Rs 1,150 from
Rs 1,850 earlier. The scrip was the biggest loser from the Sensex
pack.
GAIL India fell 8.82% despite signing a cooperation agreement with
the Himachal Pradesh state government for extension of the proposed
Dadri-Bawana-Nangal natural gas pipeline to the state.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 1.44% to 3.28%.
Meanwhile, crude oil fell in New York as investors judged
yesterday's 10% gain as excessive on signs of slowing fuel demand
after US auto sales dropped to their lowest in 17 years. Crude oil
for December delivery declined as much as $2.08, or 3 %, to $68.45
a barrel on the New York Mercantile Exchange today.
FMCG stocks were mixed. Britannia Industries, United Breweries,
United Spirits, ITC fell by between 0.19% to 6.22%. On the other
hand, Dabur India, Hindustan Unilever, Marico, Nestle India, Tata
Tea rose by between 0.99% to 3.44%.
Power stocks, too, were mixed. NTPC, Tata Power Company, Power Grid
Corporation of India fell by between 0.27% to 1.86%. Reliance
Infrastructure and Reliance Power rose by between 0.16% to 0.24%.
IT stocks jumped despite strong rupee and also shrugging off
worries the US outsourcing business will be curtailed after Obama
won the US presidential election. India's third largest IT exporter
by sales Satyam Computer Services rose 2.57% even as its American
depository receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 2.51% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
gained 2.01%, as ADR rose 4.84%.
India's largest IT exporter by sales Tata Consultancy Services
jumped 6.55%.
Democrat Barack Obama has strong reservations on outsourcing from
the US. He had made many statements during his election speeches
that he would discourage outsourcing from the US when he comes into
power.
The rupee strengthened 1.61% to 47.40. A strong rupee affects the
IT companies as they earn most of their revenues in dollar terms.
Bank stocks came off the day's lows on reports public sector banks
are likely to cut deposit and lending rates by 50 to 75 basis
points within one week. India's largest commercial bank State Bank
of India was down 1.9% to Rs 1,296.10, off the day's low of Rs
1,265.60, after its chairman O P Bhatt said on 4 November 2008 the
bank was likely to cut interest rates by up to 50 basis points.
But Indian Bank fell 1.48% after early gains after the bank said
yesterday it will consider cutting its lending and deposit rates by
50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
State Bank of Travancore rose 1.92% after bank fixed 20 December
2008 as the record date for 10 for 1 stock split.
India's largest private sector bank by net profit ICICI Bank lost
0.28% to Rs 459, off the day's low of Rs 441.10, after the American
depository receipt (ADR) spurted 7.28% overnight. ICICI Bank's
chief executive K.V. Kamath said on 3 November 2008, the bank will
review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 1.38% to Rs 1,126 off the day's lowof Rs 1105. The ADR jumped
7.63% on Tuesday.
However, India's largest home loan lender by operating income HDFC
fell 1.22% to Rs 1,902 off day's high of Rs 1,999.
Gammon India surged 6.40% extending gains for the fourth day in a
row, on bargain hunting after a recent sharp fall caused by poor
quarterly performance.
Shri Dinesh Mills hit 10% upper circuit after company fixed 27
November 2008 as the record date for for 10 for 1 stock split.
afternoon trade led by recovery in banking stocks. But a sharp fall
in index heavyweight Reliance Industries (RIL) capped the recovery.
The BSE Sensex was down 192.87 points or 1.91%, recovering close to
140 points from the day's low.
The slide on the domestic bourses was despite firm Asian stocks
which rose as investors welcomed the end to the uncertainty around
the US presidential election. Key benchmark indices in China,
Japan, Singapore, Hong Kong, and South Korea were up by between
2.44% to 5.33%. But the Taiwan Weighted fell 0.29%.
Democrat Barack Obama captured the White House today, defeating
Republican John McCain to make history as the first black to be
elected as the US president.
At 12:25 IST, the BSE 30-share Sensex was down 192.87 points or
1.91% to 10,428.15. The market had surged earlier in the day
boosted by rally in Asian stocks, Barack Obama's election as the
next US president and expectations that a cut in interest rates by
state-run banks that would result in lower borrowing costs for the
corporates. The early rally was also triggered by a sentiment by
the Commerce and Industry Minister Kamal Nath after trading hours
on Tuesday, 3 November 2008, that the government will further ease
foreign investment rules, including those relating to defence
production.
The Sensex surged 314.29 points at day's high of 10,945.41 in early
trade. The index declined 331.01 points at the day's low of
10,300.11 in early afternoon trade.
The S&P CNX Nifty was down 47.80 points or 1.52% to 3,094.30.
The BSE Mid-Cap index was up 0.95% at 3,479.12 and the BSE
Small-Cap index was up 0.39% at 4,053.10. Both the indices
outperformed the Sensex.
The market breadth was strong. On BSE, 1,230 shares advanced as
compared to 1,073 that declined. 74 shares remained unchanged.
India's second largest telecoms services provider by sales,
Reliance Communication slipped 7.39% on BSE after Morgan Stanley
cut price estimate on the stock by 45% to Rs 280.
Tata Steel (down 5.36% to Rs 227) and Bharti Airtel (down 3.95% to
Rs 689) were the major losers from Sensex pack.
The BSE Oil & Gas index fell 5.33% and was the biggest loser from
the sectoral indices on BSE. India's largest private sector company
by market capitalization and oil refiner Reliance Industries (RIL)
slumped 9.57% to Rs 1,316 after ABN Amro recommended a 'sell' on
the stock and cut its target price by whopping 38% to Rs 1,150 from
Rs 1,850 earlier. The scrip was the biggest loser from the Sensex
pack.
GAIL India fell 8.82% despite signing a cooperation agreement with
the Himachal Pradesh state government for extension of the proposed
Dadri-Bawana-Nangal natural gas pipeline to the state.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 1.44% to 3.28%.
Meanwhile, crude oil fell in New York as investors judged
yesterday's 10% gain as excessive on signs of slowing fuel demand
after US auto sales dropped to their lowest in 17 years. Crude oil
for December delivery declined as much as $2.08, or 3 %, to $68.45
a barrel on the New York Mercantile Exchange today.
FMCG stocks were mixed. Britannia Industries, United Breweries,
United Spirits, ITC fell by between 0.19% to 6.22%. On the other
hand, Dabur India, Hindustan Unilever, Marico, Nestle India, Tata
Tea rose by between 0.99% to 3.44%.
Power stocks, too, were mixed. NTPC, Tata Power Company, Power Grid
Corporation of India fell by between 0.27% to 1.86%. Reliance
Infrastructure and Reliance Power rose by between 0.16% to 0.24%.
IT stocks jumped despite strong rupee and also shrugging off
worries the US outsourcing business will be curtailed after Obama
won the US presidential election. India's third largest IT exporter
by sales Satyam Computer Services rose 2.57% even as its American
depository receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 2.51% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
gained 2.01%, as ADR rose 4.84%.
India's largest IT exporter by sales Tata Consultancy Services
jumped 6.55%.
Democrat Barack Obama has strong reservations on outsourcing from
the US. He had made many statements during his election speeches
that he would discourage outsourcing from the US when he comes into
power.
The rupee strengthened 1.61% to 47.40. A strong rupee affects the
IT companies as they earn most of their revenues in dollar terms.
Bank stocks came off the day's lows on reports public sector banks
are likely to cut deposit and lending rates by 50 to 75 basis
points within one week. India's largest commercial bank State Bank
of India was down 1.9% to Rs 1,296.10, off the day's low of Rs
1,265.60, after its chairman O P Bhatt said on 4 November 2008 the
bank was likely to cut interest rates by up to 50 basis points.
But Indian Bank fell 1.48% after early gains after the bank said
yesterday it will consider cutting its lending and deposit rates by
50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
State Bank of Travancore rose 1.92% after bank fixed 20 December
2008 as the record date for 10 for 1 stock split.
India's largest private sector bank by net profit ICICI Bank lost
0.28% to Rs 459, off the day's low of Rs 441.10, after the American
depository receipt (ADR) spurted 7.28% overnight. ICICI Bank's
chief executive K.V. Kamath said on 3 November 2008, the bank will
review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 1.38% to Rs 1,126 off the day's lowof Rs 1105. The ADR jumped
7.63% on Tuesday.
However, India's largest home loan lender by operating income HDFC
fell 1.22% to Rs 1,902 off day's high of Rs 1,999.
Gammon India surged 6.40% extending gains for the fourth day in a
row, on bargain hunting after a recent sharp fall caused by poor
quarterly performance.
Shri Dinesh Mills hit 10% upper circuit after company fixed 27
November 2008 as the record date for for 10 for 1 stock split.
RIL tumbles
A sharp fall in Reliance Industries (RIL) pulled the market down in
mid-morning trade led by fall in index heavyweight Reliance
Industries. The BSE Sensex was down 262.85 points or 2.47%. The
barometer index shed close to 570 points from the day's high.
Banking stocks which spurted earlier in the day on possible rate
cuts came off the higher levels.
The slide on the domestic bourses was despite firm Asian stocks
which rose as investors welcomed the end to the uncertainty around
the US presidential election. Key benchmark indices in China,
Japan, Singapore, Hong Kong, and South Korea were up by between
2.34% to 5.85%. But the Taiwan Weighted fell 0.29%.
Democrat Barack Obama captured the White House today, defeating
Republican John McCain to make history as the first black to be
elected US president.
At 11:22 IST, the BSE 30-share Sensex was down 262.85 points or
2.47% to 10,365.82. The market had surged earlier in the day
boosted by rally in Asian stocks, Barack Obama's election as the
next US president and expectations that a cut in interest rates by
state-run banks that would result in lower borrowing costs for the
corporates. The early rally was also triggered by a sentiment by
the Commerce and Industry Minister Kamal Nath after trading hours
on Tuesday, 3 November 2008, that the government will further ease
foreign investment rules, including those relating to defence
production.
The Sensex surged 314.29 points at day's high of 10,945.41 in early
trade. The index declined 268 points at the day's low of 10,363.12
in mid-morning trade.
The S&P CNX Nifty was down 55.80 points or 1.78% to 3,086.30.
The BSE Mid-Cap index was up 0.14% at 3,451.10 and the BSE
Small-Cap index was up 0.45% at 4,053.10. Both the indices
outperformed the Sensex.
The market breadth was strong. On BSE, 1,166 shares advanced as
compared to 958 that declined. 54 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) slumped 8.62% to Rs 1,329.70
after ABN Amro recommended a 'sell' on the stock and cut its target
price by whopping 38% to Rs 1,150 from Rs 1,850 earlier. The scrip
was the biggest loser from the Sensex pack.
Reliance Communications (down 6.19% to Rs 235.40), Bharti Airtel
(down 3.1% to Rs 695.05), Hindalco Industries (down 2.5% to Rs
62.40) were the other major losers from Sensex pack.
Healthcare stocks were mixed following reports the drug regulator
National Pharmaceutical Pricing Authority has issued notices to
Cipla, Ranbaxy Laboratories and Nicholas Piramal among others for
overcharging. Cipla and Ranbaxy Laboratories fell between 0.6% to
2.15% while Glenmark Pharmaceuticals, Dr. Redddy's Laboratories,
Nicholas Piramal HealthCare rose between 0.15% to 3%. The drug
regulator has asked these firms to deposit Rs 1630 crore with the
government exchequer besides explaining the hike.
Most realty stocks extended gains on hopes lower interest rates
will spur demand for residential properties. Realty majors,
Indiabulls Real Estate,Anant Raj Industries, Parsvnath Developers,
DLF jumped by between 2.02% to 12.53%. While, Unitech fell 1.25%.
As per reports public sector banks are likely to cut deposit and
lending rates by 50 to 75 basis points within one week, after the
Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 1.5% to 2.52%.
Meanwhile, crude oil fell in New York as investors judged
yesterday's 10% gain as excessive on signs of slowing fuel demand
after US auto sales dropped to their lowest in 17 years. Crude oil
for December delivery declined as much as $2.08, or 3 %, to $68.45
a barrel on the New York Mercantile Exchange.
GAIL India gained 2.57% on signing a cooperation agreement with the
Himachal Pradesh state government for extension of the proposed
Dadri-Bawana-Nangal natural gas pipeline to the state.
Auto stocks were up on reports the government may cut petrol and
diesel prices to drum up support with voters ahead of key state
elections later this month. Maruti Suzuki India, Mahindra &
Mahindra, Hero Honda Motors, Tata Motors rose by between 0.15% to
2.31%.
Ashok Leyland was flat at Rs 21.10 on reports of planning to reduce
monthly production target for November 2008 to 1,500 units from the
average 6,800 units it clocked each month in the first six months
of this fiscal.
IT stocks jumped despite strong rupee and also shrugging off
worries the US outsourcing business will be curtailed after Obama
won the US presidential election. India's third largest IT exporter
by sales Satyam Computer Services rose 0.84% even as its American
depository receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 1.48% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
gained 1.22%, as ADR rose 4.84%.
India's largest IT exporter by sales Tata Consultancy Services
jumped 4.86%.
Democrat Barack Obama has strong reservations on outsourcing from
the US. He had made many statements during his election speeches
that he would discourage outsourcing from the US when he comes into
power.
The Indian rupee strengthened by 1% in opening deals on Wednesday
on expectations the stock market may rise for a sixth successive
session and attract foreign inflows. The partially convertible
rupee was at 47.20/21 per dollar, compared to Tuesday's close of
47.69/71 per dollar. A strong rupee affects the IT companies as
they earn most of their revenues in dollar terms.
Bank stocks came off the day's high even on reports public sector
banks are likely to cut deposit and lending rates by 50 to 75 basis
points within one week. India's largest commercial bank State Bank
of India fell 3.27% to Rs 1,277 off day's high of Rs 1,375 even
after its chairman O P Bhatt said on 4 November 2008 the bank was
likely to cut interest rates by up to 50 basis points.
Indian Bank fell 1.48% after early gains after the bank said
yesterday it will consider cutting its lending and deposit rates by
50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
India's largest private sector bank by net profit ICICI Bank lost
3.08% to Rs 445 off the day's high of Rs 491 even as American
depository receipt (ADR) spurted 7.28% overnight. ICICI Bank's
chief executive K.V. Kamath said on 3 November 2008, the bank will
review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 0.92% to Rs 1119.90 off the day's high of Rs 1171. The ADR
jumped 7.63% on Tuesday.
India's largest home loan lender by operating income HDFC fell
1.22% to Rs 1,902 off day's high of Rs 1,999.
Aksh Optifibre jumped 3.66% on reports of plans to raise its
Internet protocol television (IPTV) subscriber base to 40,000
across 22 cities in India by end-2008. Currently, it has a 8,000
subscribers in Delhi and 2,000 in Mumbai.
Thermax fell 1.3% on foraying into the South East Asian markets
with an investment of around $22 million. It plans to set up two
green power plants in the Philippines and Indonesia, using miltiple
biomass as feedstock.
Shree Cement surged 3.97% after cement shipments rose 12.81% to
6.25 lakh tonnes in October 2008 over October 2007.
Dalmia Cement (Bharat) rose 0.7% even as October 2008 cement
shipments fell an annual 10.7% to 216,000 tonnes.
Kingfisher Airlines fell 2.86 on reports the of defaulting on lease
rentals to GE Commercial Aviation Services for four A 320
aircrafts.
US stocks had their biggest Election Day rally ever on Tuesday as
investors looked forward to the end of the uncertainty surrounding
the long fight for the White House, while global credit markets
showed more signs of a thaw. The Dow Jones Industrial Average
jumped 305.45 points or 3.28%. The tech-laden Nasdaq Composite
Index surged 53.79 points or 3.12%.
mid-morning trade led by fall in index heavyweight Reliance
Industries. The BSE Sensex was down 262.85 points or 2.47%. The
barometer index shed close to 570 points from the day's high.
Banking stocks which spurted earlier in the day on possible rate
cuts came off the higher levels.
The slide on the domestic bourses was despite firm Asian stocks
which rose as investors welcomed the end to the uncertainty around
the US presidential election. Key benchmark indices in China,
Japan, Singapore, Hong Kong, and South Korea were up by between
2.34% to 5.85%. But the Taiwan Weighted fell 0.29%.
Democrat Barack Obama captured the White House today, defeating
Republican John McCain to make history as the first black to be
elected US president.
At 11:22 IST, the BSE 30-share Sensex was down 262.85 points or
2.47% to 10,365.82. The market had surged earlier in the day
boosted by rally in Asian stocks, Barack Obama's election as the
next US president and expectations that a cut in interest rates by
state-run banks that would result in lower borrowing costs for the
corporates. The early rally was also triggered by a sentiment by
the Commerce and Industry Minister Kamal Nath after trading hours
on Tuesday, 3 November 2008, that the government will further ease
foreign investment rules, including those relating to defence
production.
The Sensex surged 314.29 points at day's high of 10,945.41 in early
trade. The index declined 268 points at the day's low of 10,363.12
in mid-morning trade.
The S&P CNX Nifty was down 55.80 points or 1.78% to 3,086.30.
The BSE Mid-Cap index was up 0.14% at 3,451.10 and the BSE
Small-Cap index was up 0.45% at 4,053.10. Both the indices
outperformed the Sensex.
The market breadth was strong. On BSE, 1,166 shares advanced as
compared to 958 that declined. 54 shares remained unchanged.
India's largest private sector company by market capitalization and
oil refiner Reliance Industries (RIL) slumped 8.62% to Rs 1,329.70
after ABN Amro recommended a 'sell' on the stock and cut its target
price by whopping 38% to Rs 1,150 from Rs 1,850 earlier. The scrip
was the biggest loser from the Sensex pack.
Reliance Communications (down 6.19% to Rs 235.40), Bharti Airtel
(down 3.1% to Rs 695.05), Hindalco Industries (down 2.5% to Rs
62.40) were the other major losers from Sensex pack.
Healthcare stocks were mixed following reports the drug regulator
National Pharmaceutical Pricing Authority has issued notices to
Cipla, Ranbaxy Laboratories and Nicholas Piramal among others for
overcharging. Cipla and Ranbaxy Laboratories fell between 0.6% to
2.15% while Glenmark Pharmaceuticals, Dr. Redddy's Laboratories,
Nicholas Piramal HealthCare rose between 0.15% to 3%. The drug
regulator has asked these firms to deposit Rs 1630 crore with the
government exchequer besides explaining the hike.
Most realty stocks extended gains on hopes lower interest rates
will spur demand for residential properties. Realty majors,
Indiabulls Real Estate,Anant Raj Industries, Parsvnath Developers,
DLF jumped by between 2.02% to 12.53%. While, Unitech fell 1.25%.
As per reports public sector banks are likely to cut deposit and
lending rates by 50 to 75 basis points within one week, after the
Reserve Bank of India (RBI) on Saturday, 1 November 2008,
unexpectedly cut its main short-term lending rate viz. the repo
rate to ease a growing cash squeeze, spur faltering economic growth
and fend off damage from the global financial crisis.
PSU OMCs fell on reports the government may cut petrol prices by
around Rs 2 a litre and diesel by Rs 1 per litre to drum up support
with voters ahead of key state elections later this month. BPCL,
HPCL and Indian Oil Corporation fell by between 1.5% to 2.52%.
Meanwhile, crude oil fell in New York as investors judged
yesterday's 10% gain as excessive on signs of slowing fuel demand
after US auto sales dropped to their lowest in 17 years. Crude oil
for December delivery declined as much as $2.08, or 3 %, to $68.45
a barrel on the New York Mercantile Exchange.
GAIL India gained 2.57% on signing a cooperation agreement with the
Himachal Pradesh state government for extension of the proposed
Dadri-Bawana-Nangal natural gas pipeline to the state.
Auto stocks were up on reports the government may cut petrol and
diesel prices to drum up support with voters ahead of key state
elections later this month. Maruti Suzuki India, Mahindra &
Mahindra, Hero Honda Motors, Tata Motors rose by between 0.15% to
2.31%.
Ashok Leyland was flat at Rs 21.10 on reports of planning to reduce
monthly production target for November 2008 to 1,500 units from the
average 6,800 units it clocked each month in the first six months
of this fiscal.
IT stocks jumped despite strong rupee and also shrugging off
worries the US outsourcing business will be curtailed after Obama
won the US presidential election. India's third largest IT exporter
by sales Satyam Computer Services rose 0.84% even as its American
depository receipt (ADR) fell 0.83% overnight.
India's fourth largest IT exporter by sales Wipro rose 1.48% as ADR
jumped 5.25%. India's second largest IT exporter by sales Infosys
gained 1.22%, as ADR rose 4.84%.
India's largest IT exporter by sales Tata Consultancy Services
jumped 4.86%.
Democrat Barack Obama has strong reservations on outsourcing from
the US. He had made many statements during his election speeches
that he would discourage outsourcing from the US when he comes into
power.
The Indian rupee strengthened by 1% in opening deals on Wednesday
on expectations the stock market may rise for a sixth successive
session and attract foreign inflows. The partially convertible
rupee was at 47.20/21 per dollar, compared to Tuesday's close of
47.69/71 per dollar. A strong rupee affects the IT companies as
they earn most of their revenues in dollar terms.
Bank stocks came off the day's high even on reports public sector
banks are likely to cut deposit and lending rates by 50 to 75 basis
points within one week. India's largest commercial bank State Bank
of India fell 3.27% to Rs 1,277 off day's high of Rs 1,375 even
after its chairman O P Bhatt said on 4 November 2008 the bank was
likely to cut interest rates by up to 50 basis points.
Indian Bank fell 1.48% after early gains after the bank said
yesterday it will consider cutting its lending and deposit rates by
50-75 basis points this week.
State Bank of Bikaner & Jaipur was flat at Rs 2651.70 after it cut
its benchmark prime lending rate to 13.25% from 14%, effective 5
November 2008.
India's largest private sector bank by net profit ICICI Bank lost
3.08% to Rs 445 off the day's high of Rs 491 even as American
depository receipt (ADR) spurted 7.28% overnight. ICICI Bank's
chief executive K.V. Kamath said on 3 November 2008, the bank will
review interest rates in the next few days.
India's second largest private sector bank by net profit HDFC Bank
rose 0.92% to Rs 1119.90 off the day's high of Rs 1171. The ADR
jumped 7.63% on Tuesday.
India's largest home loan lender by operating income HDFC fell
1.22% to Rs 1,902 off day's high of Rs 1,999.
Aksh Optifibre jumped 3.66% on reports of plans to raise its
Internet protocol television (IPTV) subscriber base to 40,000
across 22 cities in India by end-2008. Currently, it has a 8,000
subscribers in Delhi and 2,000 in Mumbai.
Thermax fell 1.3% on foraying into the South East Asian markets
with an investment of around $22 million. It plans to set up two
green power plants in the Philippines and Indonesia, using miltiple
biomass as feedstock.
Shree Cement surged 3.97% after cement shipments rose 12.81% to
6.25 lakh tonnes in October 2008 over October 2007.
Dalmia Cement (Bharat) rose 0.7% even as October 2008 cement
shipments fell an annual 10.7% to 216,000 tonnes.
Kingfisher Airlines fell 2.86 on reports the of defaulting on lease
rentals to GE Commercial Aviation Services for four A 320
aircrafts.
US stocks had their biggest Election Day rally ever on Tuesday as
investors looked forward to the end of the uncertainty surrounding
the long fight for the White House, while global credit markets
showed more signs of a thaw. The Dow Jones Industrial Average
jumped 305.45 points or 3.28%. The tech-laden Nasdaq Composite
Index surged 53.79 points or 3.12%.
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