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It was a volatile trading session for Indian market. Indices opened flat to negative BSE Sensex opened on a flat note with a loss of 17.22 points at 10,258.38 . Sensex gained 60 points to close at 10335, while Nifty ended at 3112, down 9 points. Nymex crude touched $50/bbl mark during the day and was trading at $50.02/bbl. European markets were trading with gains of around 1% driven by auto stocks, after Porsche increased its stake in Volkswagen, and hopes that stimulus plans by US President ?elect Barack Obama will boost equities.
Among the BSE sectoral indices, Realty and Consumer Durable indices were down the most, falling 4% and 3.3% respectively, while Metal index and Bankex were the top gainers, up 2% and 1.6% respectively. Cement sector was the sector of the day as Grasim and ACC surged 8.4% and 7.7% respectively, becoming the top gainers among sensex stocks. R Com and DLF were the top losers, falling 5.6% and 5.4% respectively.
Key benchmark indices showed a divergent trend with as Sensex clocked gains while S&P CNX Nifty fell. The BSE 30-share Sensex was up 60.33 points, or 0.59% while the S&P CNX Nifty fell 8.65 points, or 0.28%.The market rebounded from intraday low in late trade.
In a highly volatile trade, the market rebounded from intraday low in late trade. Index heavyweights Reliance Industries (RIL) and Infosys triggered late volatility on the bourses. A fall in these two stocks in mid-afternoon trade pulled the market sharply lower at about 14:25 IST. The BSE 30-share Sensex provisionally rose 101.52 points, or 0.99%, off close to 125 points from the day's low.
The market was caught between concerns about Q3 results and coordinated fiscal and monetary measures by policymakers to boost sagging growth. Analysts widely expect dismal quarterly earnings due to a sharp fall in demand, slowing economic growth and recession in major economies such as the United States, eurozone and Japan. The earnings parade will be kicked off by private sector lender Axis Bank on Friday, 9 January 2009, followed by IT bellwether Infosys Technologies on 13 January 2009.
Stocks were volatile. After a subdued start, the market moved into green in early volatile trade as Asian stocks rose. The market extended gains in morning trade, before sliding into the red again. The market later oscillated between positive and negative zones, moving in a narrow range. The market firmed up in early afternoon trade. The market extended gains in afternoon trade. It pared gains later. The market slumped in mid-afternoon trade, before bouncing back.
BSE 30-share Sensex was up 60.33 points, or 0.59%, to 10,335.93. The Sensex rose 110.46 points at the day's high of 10,386.06 hit in afternoon trade. The Sensex fell 124.92 points at the day's low of 10,150.68 in mid-afternoon trade.
The S&P CNX Nifty fell 0.28%, toclose at 3,112.80
The BSE Mid-Cap index was down 0.04% while BSE Small-Cap index was down 0.06%. Both the indices underperformed the Sensex.
The market breadth, indicating the overall health of the market, was even. The breadth had turned negative in mid-afternoon trade from a strong breadth earlier in the day. On BSE, 1258 stocks advanced and 1,255 stocks fell. A total of 92 stocks remained unchanged.
The BSE clocked a turnover of Rs 4,685 crore today higher than Rs 4,188.28 on Monday, 5 January 2009.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 0.82% to Rs 1,377 after its unit Reliance Petroleum (RPL) started processing crude at its 5,80,000 barrels per day refinery on 25 December 2008. The stock was highly volatile and moved between the positive and negative zones. The stock rose 1.33% at the day's high and fell 2.47% at the day's low.
India's second largest telecom services provider by sales Reliance Communication fell 5.57% as investors booked profit after a recent sharp surge. It had gained 23.91% to Rs 263.75 on 5 January 2009 from Rs 212.85 on 29 December 2008, after it announced a nationwide rollout of its GSM-based cellular services during trading hours on 30 December 2008.
India's second largest IT exporter by sales Infosys fell 0.58% to Rs 1,167.65. The stock came off the session's low of Rs 1,146.35.
India's largest engineering and construction firm by sales Larsen & Toubro fell 0.68%, giving up a 1.58% gain triggered by the company announcement during trading hours its buildings and factories segment, a part of its construction division, had bagged orders aggregating to Rs 1100 crore in the quarter ended December 2008. The stock had fallen 2.62% at the day's low in early trade ahead of the announcement which it the market in early afternoon trade.
Maytas Infra gained 3.21% after the company said it got a construction order worth Rs 110 crore from the Southern Railways.
Realty shares fell on reports recent steps taken by the government to boost the housing sector are not enough to boost housing demand. DLF, Housing Development & Infrastructure, Indiabulls Real Estate and Unitech fell by between 1.32% to 1.89%.
In an effort to boost the cash-starved realty sector, the government on 2 January 2009 allowed the developers of integrated townships to borrow funds from overseas and also asked states to release land for low- and middle-income housing schemes. Earlier, as part of the first stimulus package announced last month, the public sector banks had lowered rates on home loans up to Rs 20 lakh.
Steel stocks rose after the government on 2 January 2009 withdrew exemptions from countervailing duty on TMT bars, used in construction activity. Bhushan Steel, JSW Steel, Steel Authority of India, Jindal Steel rose by between 2.9% to 5.35%.
India's largest steel maker by sales, Tata steel rose 0.67% on reports of signing an agreement with Northern Iron of Australia for supply of iron ore concentrates to its UK unit Corus. This is a positive development for the company as it would provide stable iron ore linkages for Corus.
India's largest zinc maker by sales Hindustan Zinc rose 9.25% after the government on, 2 January 2009, withdrew exemption from basic customs duty on zinc.
Banking shares rose on speculation falling bond yields and lower rates would accelerate loan growth and profitability. India's largest private sector bank by net profit ICICI Bank rose 4.47% after its American depository receipt (ADR) rose 1.89% on Monday, 5 January 2009. The bank had recently cut its main lending rates by 50 basis points from Wednesday, 31 December 2008.
India's second largest private sector bank by net profit HDFC Bank gained 5.53% even as its ADR fell 3.69% on Monday. However, India's biggest bank in terms of total assets and branch network, State Bank of India fell 2.72%.
India's largest dedicated housing finance firm by operating income HDFC rose 3.54%.
India's fourth largest IT exporter by sales Satyam Computer Services surged 7.31% after the company denied media reports that Tech Mahindra was considering an all-share merger deal with the company. Talks of a management change at Satyam have been doing the rounds since mid-December 2008, following its botched attempt to take over two infrastructure companies owned by the family of Satyam's founder Ramalinga Raju.
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