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Indian Markets opened its day with nagative data and contined its closing on negative side. Sensex opened with a loss of 106.78 points, at 9,821.57 with a negative clue over Asian Indices. Markets continued its southward journey through-out the day southern journey in the absence of any positive news. An intraday recovery was witnessed on a number of occasions on expectations of a further rate cut by the central bank and on a likely second government stimulus package for the economy. The indices get more pressure from Real Estate and Capital Goods ( CD ) sector as well as from index stock JP Assos and Tata Motor. Sell-off was seen across the board in today's trade and even midcap and small cap stocks also followed the similar trend. Market participants believes this is a normal volatility ahead of F&O expiry of December series ( as December series will expires on 24th December, 2008). The Sensex ended the day with a loss of 241.60 points, or 2.43% at 9,686.75 after touching a high of 9,838.38 and a low of 9,643.56. The broad-based NSE Nifty declined 70.65 points, or 2.32% at 2,968.65 after hitting a high of 3,040 and a low of 2,957.05. The BSE Mid-Cap index fell 2.51% while the BSE Small-Cap index dipped 2.51%. Both the indices outperformed Sensex.
Sectoral : There was no place to hide for bulls all sectoral indices closes their trade in red. Consumer Durable index was the worst hit, falling 119.58 points or 5.81% and closed at 1937.87, followed by realty index, which was down 122.26 points or 4.84% and closed at 2406.38. Rcom was the only gainer in Index and on Nifty adding 1.24% and closes at 226.15 on sensex. On the loosing side Satyam and JP Associate were the top losers among the sensex stocks, plummeting 13.55% and 10.18%.
Tech Update : Technology major Satyam got another dose of bad news as reports from Fox News said that the World Bank has banned the company from providing software services to the bank for eight years due to alleged malpractices later this news was confirmed by World Bank Security Manager. One should note that Satyam is the same company who had been awarded by World Council for Corporate Governance for "Golden Peacock Global Award for Excellence in Corporate Governance" with Ola Ullsten. Also, it must be noted here that, Satyam's CMD Mr. Ramalinga Raju was recognised as "Entrepreneur of the Year Award 2007". But this company is on radar after the MAYTAS deal. This deal dampned the company image in front of Investor and as well as Institutional Clients. The stock plunged 13.5% in todays trade. Some news also circulating on market that Satyam top and founder Ramalinga Raju had resigned from the board. As per unconfirmed reports, Raju has put in his papers and he awaiting the company board's decision on the issue. Rupee depreciated further against the dollar and closed at 48.76 as against yesterdays close of 48.02 .
Economy Review : In its mid-year review of the economy, the finance ministry today, 23 December 2008, said there is a considerable scope for monetary easing over the next six to 12 months and an aggressive monetary policy may be necessary if the global economic turmoil continues to adversely affect manufacturing.
Reliance Industries: India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 1.92% to Rs 1,260 on recent reports it may face pressure from the US to stop selling gasoline to Iran. As per reports, eight American lawmakers have asked the Export-Import Bank of United States (Ex-Im US) to immediately suspend all financial assistance to Reliance Industries (RIL) till it agrees to stop selling gasoline to Iran.
In a letter written to Ex-Im Bank president James Lambright, the American lawmakers stated that RIL is a major supplier of gasoline to Iran which is detrimental to the national security interests of the US and the loan is in direct collision with its foreign policy on Iran.
Banking
Banking stocks fell as the recent rate cuts raised concerns about a fall in net interest margin (NIM). India's largest commercial bank State Bank of India (SBI) fell 0.87%. On Saturday, 20 December 2008, SBI slashed its lending rate by 75 basis points, to be effective from 1 January 2009. India's second largest private sector bank by net profit HDFC Bank slipped 4.39% as its American depository receipt (ADR) fell 4.02% on Monday, 22 December 2008.
India's largest private sector bank by net profit ICICI Bank slashed 4.27% as its American depository receipts (ADR) dipped 3.8% on Monday, 22 December 2008. Its advance tax payment declined 6% to Rs 470 crore in Q3 December 2008 over Q3 December 2007.
India's largest home loan lender by operating income Housing Development Finance Corporation (HDFC) fell 1.32% after it cut its retail lending rates by 50 basis points, effective 22 December 2008. HDFC announced the rate cut after trading hours on Friday, 19 December 2008.
Asian Markets : Asian Markets closed in negative for third consecutive day, including India all asian markets endes on red. Japan Nikkei was closed today due to national holiday. Hang Seng closed at 14,220.79 losing 401.60 points or 2.75% . Straits Times closed at 1,724.54 losing 21.09 points or 1.21% . Shanghai Markets ended its day at 1897.22 shedding 90.53 points.
China's oil demand shrunk for first time in 3 years in November. Hyundai Motor fell 10% after Toyota predicted first operating loss in 71 years.
European Markets : Euro markets closed flat with mixed clues. They started trading on positive zone and remain strong throught - out the session but at the time of closing session they moved into Flat to red on the news of US GDP contracts to 0.5% and lower new home sales data which is at 17 yr low. Euro range also expecting second stimulus package from Euro biggest economy Germany. London Based FTSE 100 index closed in green with a gain of mere 6.82 points or 0.16% and closes at 4,255.98 . German based DAX index closed in red at 4,629.38 with a loss of 9.64 points or 0.21% . France based CAC 40 index also closed in red at 3,128.41 with a loss of 22.95 points or 0.73%.
American Markets : US markets opened on higher nod but cant sustain that rally. As US new home sales data released and it is at 17 yr low. US GDP also contractes to only 0.5% . The report suggest that recession that began a year ago is now sinking definitively into the official U.S. economic data. Existing-home sales plunge 8.6%, and price slide is steepest ever. US vice - president Biden says that Obama Administration, Congress Close to Accord on Stimulus Plan . This help market to open higher but not able to hold its ground.
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