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Weak global markets and signs of further deterioration in the world economy weighed on the domestic bourses. The market extended losses for the third straight day. Indices opened negative by getting weak clues from Asia and US market. The volatility, though, was expected, today being the settlement day — the December contract got expired today. Market faced selling in shares of major oil exploration, auto, realty, telecom, metal, technology, capital goods and power companies. Although Banks were on buying side in this weak trend on hopes of lower Inflation data on Friday resultant further rate cut. The Sensex ended the day with a loss of 118.03 points, or 1.22% at 9,568.72 after touching a high of 9,653.42 and a low of 9,502.53. The broad-based NSE Nifty fell 51.80 points, or 1.74% at 2,916.85 after hitting a high of 2,968.00 and a low of 2,900.45. The BSE Mid-Cap index fell 0.82% outperforming the Sensex. The BSE Small-Cap index declined 0.93%,underperforming the Sensex.
Currency : Rupee appreciated against the dollar in todays trade and was trading at 48.10 as against yesterdays close of 48.76.
Crude : Crude oil traded near to $35 a barrel in New York after falling yesterday, 23 December 2008, as a collapse in US house prices raised concern that the global recession will deepen, limiting demand for fuels.
Sectoral
All the sectoral indices ended in red except Bankex or Bank Index gaining 86.78 points or 1.64% at 5,371.87 . Realty index take the strongest knock and was down the most, losing 4.9%, while Auto index was down 2.4% on the reports and signs on weakening domestic demand. Tata Motors and TCS were the top losers among the sensex stocks, falling 8.69% and 4.5% respectively, while ICICI Bank and SBI gained 3.3% and 1.8% respectively.
Metals : Metal stocks was under pressure in trade today. Stock slids on worries a weakening domestic and global economy will hit demand. all major stocks plummed down for maximum of 4% . SAIL , Tata Steel, Hindalco Industries, National Aluminum Company, Sterlite Industries fell by between 1.85% to 3.65%.
Auto's : Auto stocks was on tremendous pressure as economy is slwing down all over the down so it will difinatly hit the demand. India's largest commercial vehicle maker by sales Tata Motors fell 8.69% extending losses for the second straight day on reports the company may have to pump in at least $1 billion to revive premium British brands Jaguar and Land Rover that it bought earlier this year. It was the major loser from the Sensex pack.
Realty : Real estate shares extended losses on recent reports property rates are expected to fall by 20-25% as demand has dropped off sharply over the past 9-10 months due to high interest rates. Indiabulls Real Estate, DLF and Unitech fell by between 2.62% to 12.29%. Fall in property prices is expected to hit the margins of developers already hit by the demand slowdown. Additionally, developers are facing a sever cash crunch that is hindering the execution of ongoing projects and grounding new launches. It was found that ITC and several HNI's and Instutional have shown intrest on Unitech hotel project ( It is yet to be confirmed). Here is to be noticed that Unitech is facing liquidity crunch and has a credit of over 8000 crs. and company is willing to reduce this to atleast 3000 crs. this year. For this they contacted some hotel chain companies and some Instutional also.
Banks & Finance : Bank stocks rose as investors speculated falling bond yields and lower rates would accelerate loan growth and profitability. India's largest commercial bank State Bank of India (SBI) rose 1.77%. On Saturday, 20 December 2008, SBI slashed its lending rate by 75 basis points, to be effective from 1 January 2009. The bank also cut its deposit rates by 25 to 100 basis points across maturities.
India's largest private sector bank by net profit ICICI Bank rose 3.27% even as its American depository receipts (ADR) slipped 6.52% on Tuesday. Its advance tax payment declined 6% to Rs 470 crore in Q3 December 2008 over Q3 December 2007. ICICI Bank said on Friday, 19 December 2008, joint managing director Chanda Kochhar would succeed Chief Executive K.V. Kamath who retires in April 2009. Kamath, chief executive since 1996, will become non-executive chairman from May 2009 replacing N. Vaghul who retires.
India's largest home loan lender by operating income Housing Development Finance Corporation (HDFC) fell 0.98%. 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.
Tech Update : This sector is now a days became traders delight on always remain on lime light but not on positive side but on negative side. The second most affected sector from this slowdown after Realty. Today IT stocks fell as rupee turned stronger during the course of the day. India's third largest IT exporter by sales Wipro fell 4.3% to Rs 232.40 off the day's high of Rs 254.80, even as the company said it is buying Citi Technology Services (CTS), the India-based captive provider of information technology services and solutions to Citi entities worldwide, for $127 million in an all cash deal. The company announced the acquisition after trading hours on Tuesday.
India's second largest IT exporter by sales Infosys fell 0.4%. Infosys sees the Indian IT industry going through a slow phase of growth for some time, its chief executive said last week. India's largest IT exporter by sales Tata Consultancy Services fell 4.47%.
After steep slide of 18.34% to a low of Rs 114.65 triggered by reports the World Bank has barred the company from conducting any business with it for eight years due to data theft and paying bribes to its staff, Satyam Computer, India's fourth largest IT major by sales, staged a solid rebound. The stock was down 3.88% to Rs 134.95. Volumes in the stock were a huge 4.03 crore on BSE. The World Bank has been an important client for Satyam. The multilateral agency had signed $100-million billing per annum contract. Satyam ADR fell 11.02% on Tuesday. The stock had plunged 18.34% at the day's low.
Satyam shares had tumbled 13.55% on Tuesday on rumours its founder and chairman 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. The company had said on Thursday, 18 December 2008, said its board will meet on 29 December 2008 to consider buyback of shares, a move aimed at boosting investor confidence. The stock had slumped 30.22% to Rs 158.05 on Wednesday 17 December 2008 after it called off a deal to buy Maytas Properties and Maytas Infra, the two firms promoted by the family of promoter and chairman Ramalinga Raju, bowing to investor pressure.
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