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Market sold off in todays trade, and eased all the gains that it made on some steady gains, the disappoint factor was the interim budget, in which there was not a announcement for any major sops for ailing industries or change in tax structure.
Market turnover at Rs. 55842 cr. was 30% higher than that of Friday. European shares were trading down, led by financial stocks, on persistent concerns that more help for banks and more coordinated economic stimulus packages would be needed to address the global financial crisis. US markets are shut today on account of Presidents Day holiday.
The Sensex ended the day with a loss of 329.29 points, or 3.42% at 9,305.45 after touching a high of 9,637.04 and a low of 9,279.10. The broad-based NSE Nifty fell 99.85 points, or 3.39% at 2,848.50 after hitting a high of 2,953.20 and a low of 2,839.10.
BSE Midcap and Smallcap too ended on a negative note down 2.93% and 2.10% respectively.
All the BSE sectoral indices closed in red. Metal and Realty indices were the worst hit, falling 4.8% and 4.6% respectively. ITC was the sole gainer among sensex stocks, up 0.8% while JP Associate and Reliance Infra were the top losers, shedding 7.9% and 6.3% respectively.
New Delhi : Pranab Mukherjee, the stand-in Prime Minister and Finance Minister of India announced the interim Budget 2009 in Parliament. Mukherjee pointing out that the United Progressive Alliance (UPA) had succeeded in implementing the promises outlined in the Common Minimum Programme (CMP).
“Achieving 7% growth rate on a sustained basis was one of the targets of the UPA,” Mukherjee said. “And the country clocked above 9% growth rate for three consecutive years — FY06, FY and FY08.”
Here are highlights of the Interim Budget 2009
* All efforts made to deliver on commitments
* Sustained growth over 9% in last 4 years
* Per capita income grew 7.4% during UPA regime
* Gross domestic savings rate at 37.7%, gross cap formation at 14.2%
* Tax-GDP ratio at 12.5% in 2007-08, close to fiscal correction target
* Domestic investment rate over 39% in FY08
* Growth drivers - agriculture, services, manufacturing, construction
* Outlook for food grain production encouraging for coming year
* Exports grew at annual average rate of 26.4% during last 4 years
* Challenges related to capital inflows and global inflation
* We have weathered the crisis, but no room for complacency
* Moderate pass through of prices affected domestic inflation in '08
* Dec industrial growth fell 2% (YoY)
* Forecasts indicate that world economy may fare worse in 2009
* India has been affected along with other slowing EM economies
* GDP growth of 7.1% makes India second fastest growing economy
* Fiscal packages announced provide tax relief to boost demand, spending
* Have taken steps to encourage private investments in infra via PPP
* Approved 37 infra projects worth Rs 70,000 cr between Aug 08-Jan 09
* 54 central infra proj of Rs 67700cr sent for final nod to PPP panel
* Initiative for providing refinance to banks for long-term credit to proj
* IIFCL can to raise Rs 10000 cr, nod for additional Rs 30000 cr
* IIFCL to refinance 60% of the projects
* Extension of export credit for labour intensive exports
* FDI inflow of USD 23.3 billion during April-November 2008
* Have relaxed fiscal responsibility & budget mgmt targets
* May need to consider additional fiscal measures in next regular budget
* Need to revert to fiscal consolidation at the earliest
* Economic regulatory and oversight systems have to be more efficient
* Attention given to agriculture sector, plan allocation up 300% in 4 yrs
* Agri - govt implementing revival pkg in 25 states worth Rs 13500 cr
* Agri - govt will continue to provide interest subvention for FY10
* Farm debt waiver of Rs 65,300 cr covering 36 million homes
* Govt to provide interest subsidy to farmers in FY10
* Outlay on higher education up 900% in 11th 5-year plan
* Annual ad-hoc grants have been increased by 50% (YoY)
* Tax rates must fall during times of crisis
* FY09 revised estimates of spending at Rs 9 lakh cr vs Rs 7.5 lakh cr
* FY09 plan expenditure revised to Rs 2.8 lakh cr from Rs 2.4 lakh cr
* Govt revises FY09 fertiliser subsidy to Rs 44863 cr
* FY09 food subsidy revised to Rs 10960 cr
* FY09 fiscal deficit seen at 6% of GDP vs estimate of 2.5%
* FY09 revenue deficit at 4.4% of GDP vs est of 1%
* FY10 spending seen at Rs 9.53 lakh cr
* FY10 budgetary support seen at Rs 2.85 lakh cr
* Rural jobs scheme to get Rs 30100 cr in FY10
* JNNURM spending seen at Rs 11842 cr for FY10
* Allocation of Rs 40900 cr for Bharat Nirman Scheme
* Interest subvention for some export loans extended
* Budget plan spending may have to be upped substantially post polls
* Additional plan expenditure has to increase by 0.5-1% post polls
* FY10 non-plan spend est at Rs 6.68 lk cr
* Major subsidy spending for FY10 seen at Rs 95,500 cr
* FY10 budget revenue deficit seen at 4%, fiscal deficit at 5.5%
* FY10 gross tax revenue seen at Rs 6.71 lk cr
* Interim Budget 2009: Allocation of Rs 8,000 cr for mid-day meal scheme
* Interim Budget 2009: Rs 13,100 cr allocated for elementary education
* Interest subvention for some export loans extended
* Budget plan spending may have to be upped substantially post polls
* Additional plan expenditure has to increase by 0.5-1% post polls
* FY10 non-plan spend est at Rs 6.68 lakh cr
* Major subsidy spending for FY10 seen at Rs 95,500 cr
* FY10 budget revenue deficit seen at 4%, fiscal deficit at 5.5%
* FY10 gross tax revenue seen at Rs 6.71 lakh cr
* FY10 gross market borrowing seen at Rs 3.2-3.3 lakh cr
* No tax changes in interim budget
* Mid day meal scheme to get Rs 8000 crore
* Revised estimates of spending has gone up from Rs 7.5 lakh crorte to 9.9 lakh crore
* Revised estimates of tax collection at Rs 6.25 lakh crore
* 109 maiden vessels sanctioned for customs deptt
* Expenditure for 08-09: Rs 750,884 crore , Planned expenditure: Rs 2, 43,386 crore
* 15 point programme for the welfare of minorities set up
* Turnover of PSU enterprises has grown by 80% and profits have increased by 72%. Contribution to exchequer has recorded an increase of 86%. Loss making enterprises have come to 55 from 73
* New scheme for young widows in the age group of 18 to 40 unveiled; will get priority in admission to ITIs and a stipend of Rs 500 per month
* Govt to continue to provide interest subsidy to farmers in FY 10
* Outlay on higher education has been increased 900% in the 11th five year plan
* Tax GDP ratio at 12.5 pc in FY 08
* FDI inflow of $23.3 bn between April and Nov 08
* IIFCL can raise Rs 10,000 crore; nod for additional Rs 30,000 crore
* GDP growth rate of 7.1 pc makes India the second fastest growing country in the world
* 54 infra projects cleared under PPP projects with an investment of Rs 67,700 crore
* FY 08 capital inflow at 9 pc of GDP
* Export rate for the first nine months of this fiscal has fallen to 17.1%
* Global situation not encouraging, says Pranab
* Exports grew at average annual growth rate of 26.4%
* Plan allocation to agri increased 300 pc during the UPA regime
* Gross domestic saving rate at 37.7%
* Domestic investment rate at 39% in FY 08
* The GDP went from 7.5% in 04-05 to 9.7% in 06-07 and clocked 9% in 08
* Extraordinary situation merits extraordinary measures
* Need to consider additional fiscal measures in regular budget
* Financial sector reforms need to be acceleratedQueen Stocks:
* In past three years, India grew by average of over 9 percent
* Per capita income expanded by 4.7 percent per annum
* Fiscal deficit was brought down from 4.5 percent to 2.7 percent
* Revenue deficit was cut from 3.6 percent to 1.1 percent
* Exports increased 26.4 percent per annum
* Foreign trade increased from 27.3 percent to 35.5 percent
* Tax to gross domestic product ratio expanded by 9.2 to 12.5 percent
* Agriculture grew by 3.7 percent per annum
* India Infrastructure Finance Company to raise Rs.10,000 crore (Rs.100 billion) by end-March
* India has weathered inflation crisis, but no room for complacency
* Country's agriculture outlook is encouraging
* Focussed attention to agriculture
* Plan allocation for farm sector hiked 300 percent in past five years
* Three-fold increase in short-term agriculture credit to Rs.250,000 crore (Rs.2,500 billion)
* Farm debt worth Rs.65,300 crore (Rs.653 billion) waived
* Government will continue to provide additional subsidy to farmers
* Corpus of Rural Infrastructure Development Fund hiked to Rs.14,000 crore (Rs.140 billion) from Rs.5,500 crore (Rs.55 billion)
* Outlay for higher education hiked 900 percent for 11th Five Year Plan
* All efforts made to deliver on commitments
* Sustained growth over 9% for 3 consequent years
* Per capital income grew 7.4% in last four years
* Per capita income grew 7.4% during UPA regime
* Revenue deficit fell to 1.1% of GDP vs 3.6% under UPA
* Domestic investment rate over 39% in 2007-08
* FY08 fiscal deficit 2.7% vs 4.5% in FY04
* Buoyant GDP helped in fiscal consolidation
* Tax to GDP ratio rose to 12.5% FY08 vs 9.2% in FY04
* FY08 tax to GDP ratio 12.5% vs 9.2% in FY04
A smart closing on the back of support from positive global cues and ended the last session of this week on positive note. After two days of continious fall market finally showed a strenght and steps ahead on buying in metal, realty and capital goods shares. Midcap and small cap stocks also followed the same trend; wherein media stocks witnessing good buying interest while railway related stocks declined after Railway budget. Strong global cues and US index futures data which showed the Dow could open on positive side on opening bell bolstered the sentiment with bourses exhibiting strength throughout the day. However, profit taking in last leg of trade capped gains. It was a strong close to the week as indices closed with decent gains ahead of interim budget to be presented on Monday.
The Sensex ended the day with a gain of 168.91 points, or 1.78% at 9,634.74 after touching a high of 9,695.59 and a low of 9,540.60. The broad-based NSE Nifty gained 55.30 points, or 1.91% at 2,948.35 after hitting a high of 2,969.75 and a low of 2,896.85. BSE Midcap and Smallcap index rose 1.51% and 0.62% respectively. Overall market breadth was positive. Out of the total 2,531 shares traded at BSE, 1,484 advanced, 947 declined while 100 remained unchanged.
Railway Interim Budget : Railway Minister Lalu Prasad Yadav, presnted the interim Rail Budget in Parliament, and said railways have reported a cash surplus at Rs 900 billion in the last 5 years and he plans to use Rs 700 billion of the surplus to upgrade rail productivity.Passenger fares were cut by 2% while Freight rates were left unchanged in the interim rail budget presented today. ( Read the whole story here )
Weekly Vaule : It was a strong close to the week as indices closed with decent gains ahead of interim budget to be presented on Monday. Week-on-week Sensex and Nifty have gained 3.6% and 3.7% respectively. BSE Realty indices climbed 12.6% this week, followed by Capital Goods index, which gained 7.9%, while IT and FMCG indices were down 1.4% and 0.5% respectively on weekly basis. European shares were trading higher as banks drew strength from a US plan to subsidise mortgage payments for troubled homeowners, and basic resource stocks rallied on the back of higher base metals prices. US indices futures were trading higher by around 0.5%.
SECTORAL
All BSE sectoral indices ended on green note except Healthcare Index, which lost 0.4%. Metal and Capital Goods indices gained the most, up 2.8% and 2.5% respectively. M & M and R Com surged 7% and 5.3% respectively, becoming top gainers among Sensex stocks, while Sun Pharma and Ranbaxy were the top losers, shedding 3.4% and 0.3% respectively. Big support to the markets was seen from infrastructure, banking, metal and oil & gas stocks.
CAPITAL GOODS : BSE Capital Goods index ended at 6,547.42, up 2.48% or 158.47 points. BHEL, Siemens and L&T went up 2.8-3.9%. India's top power equipment maker by sales Bharat Heavy Electricals (Bhel) jumped 3.02% to Rs 1455 after its chairman said that the company expects to get a contract worth Rs 1000 crore from NTPC for a 500 megawatt power plant.
TELECOM : India's largest cellular services provider Bharti Airtel up 0.13% to Rs 651.75, off day's high of Rs 662. As per recent reports, the Department of Telecom (DoT) has sought clarification from Bharti Airtel for not declaring the income from bundling handsets along with connections as part of revenue, meant to be shared with the DoT. Reliance Communication shot up over 5%. Tata Communication gained over 4 %.
OIL & GAS : BSE Oil & Gas index was up 131.64 points or 2.05%, to 6,541.57. India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) jumped 3.02% to Rs 1392.40on reports the company is lining up further $6 billion to develop nine satellite discoveries in the Krishna Godavari (KG) basin.
India's largest oil exploration firm by sales Oil & Natural Gas Corporation (ONGC) rose 1.61% to Rs 704.80 on reports the company may offer a 15-20% stake in its planned petrochemical project in western India to GAIL (India). The stock came off day's high of Rs 714.35
METAL : BSE Metal Index outperformed other indices, went up 143.76 points or 2.8%, to settle at 5,282.09. Metal shares gained following rise in key base metal prices on the London Metal Exchange. India's largest private sector steel maker by sales Tata Steel jumped 4.60 % to Rs 194.15 and was the top gainer from the Sensex pack. Tata Steel's managing director today said the company is not looking at new acquisitions as of now. He forecasts February 2009 sales to rise 10-15% over January 2009.
Hindalco (up 1.32% at Rs. 45.75), Nalco (up 5.73% at Rs. 208.30), Jindal Steel & Power (up 3.88% at Rs. 1089.95), Sesa Goa (up 2.13% at Rs. 95.65), gained from the steel pack.
Sterlite Industries India gained 2.47% to Rs 275.40 after a block deal of 2.01 lakh shares constituting 0.03% of the company's equity was executed on NSE at Rs 276 per share.
IT : Most IT pivotals gained on hopes that government efforts worldwide, including talk of a US subsidy for mortgage payments, would soften the blow of the global downturn. TCS, India's largest software services exporter by sales rose 0.25% at Rs. 511.20. India's third largest software services exporter, Wipro gained 0.65% at Rs. 223.80 after its ADR rose 2.55% on Thursday, 12 February 2009. However India's second largest software services exporter Infosys Technologies fell 0.23% at Rs. 1251.65 .
IT firms derive a lion's share of revenue from exports. The rupee rose to 48.73/74 per dollar, from its previous close of 48.85/86, as gains in Asian stocks raised hopes of capital inflows to the domestic shares. A stronger rupee affects operating margin of IT firms negatively as they earn most of their revenues from exports.
BANKEX : BSE Bankex surged 108.37 points or 2.2%, to settle at 5,024.92. Bank shares vaulted on expectations the central bank may cut interest rates to boost growth after inflation slowed to a one-year low.
India's second largest private sector bank by net profit HDFC Bank rose 1.1% to Rs 944.15 as its ADR rose 2.68% on Thursday, 12 February 2009. India's largest private sector bank by net profit ICICI Bank gained 3.08% to Rs 434.40 on its 0.23% gain on ADR on Thursday, 12 February 2009.
India's largest bank in terms of assets and branch network State Bank of India advanced 3.16% to Rs 1195.90 .
REALTY : Real Estate index was up 35.67 points or 2.29%, to close at 1,592.36. Realty shares advanced on hopes the forthcoming interim budget may include sops to the housing sector. India's largest real estate firm by market capitalisation DLF rose 2.52% to Rs 160.55 despite reports the company has pulled out of its Rs 2800 crore satellite township project in West Bengal.
Indiabulls Real Estate (up 1.39% at Rs.109.15), Anant Raj Industries (up 5.01% at Rs. 56.55), and HDIL (up 2.09% at Rs. 87.75) advanced.
As per reports, the government may announce tax sops aimed at boosting the housing sector, which has been identified as a potential driver for the economy and job creation during a slowdown. As things stand, taxpayers are allowed to deduct up to Rs 1.5 lakh of interest paid on home loans from their taxable income. This limit could be raised to Rs 2 lakh. This, if it happens, will enable those who have bought a house for self-use to save up to Rs 68,000 in tax. At present, the maximum anyone can save through this deduction is Rs 51,000.
Another possible sop for the housing sector could be reintroduction of Sec 80IA, under which corporates building dwelling units of less than 1,000 square feet area were exempted from tax on the profits from these units. This move may prompt developers towards constructing smaller houses, making houses more affordable for the lower segment of the market.
AUTO : Benchmark index for auto index was up 57.16 points or 2.24%, to 2,612.22. Auto stocks gained on hopes the government may announce some tax sops to the automobile sector in the forthcoming interim budget on Monday, 16 February 2009.
India's top tractor maker by sales Mahindra & Mahindra jumped 6.99% to Rs 320.60 and was the top gainer from the Sensex pack.
Tata Motors (up 1.06% at Rs. 137.75 ), Hero Honda Motors (up 1.50% at Rs. 932.15 ), Maruti Suzuki (up 2.43% at Rs. 628.80) gained.
While an across-the-board 4% cut in excise in December 2008 makes any drastic concessions difficult, excise duty on big cars with engine capacities of 1200 cubic centimeter (cc) or more in petrol is likely to get reduced to 16% from the existing 20%.
Market ended on lower note by getting weak European markets, lower Asian markets and US index futures data which indicated the Dow could open sifnificatly negative. The 30-share index, BSE Sensex opened with a loss of 59.51 points, at 9,559.03 and traded range bound till mid half of the session. The indices then underproformed the region after a weak opening in Euro range and closed to lower end of the day. From morning selling was visible in IT, Teck, oil stocks, index heavyweights, metal and banking stocks. During the session IIP number was also announced but not affected the sentiment of market even after a single digit negative IIP data. Nevertheless, the market breadth, indicating the overall health of the market, was strong. 1307 shares advanced as compared with 1108 that declined. A total of 106 shares remained unchanged.
The Sensex ended the day with a loss of 152.71 points, or 1.59% at 9,465.83 after touching a high of 9,580.13 and a low of 9,445.54. The broad-based NSE Nifty declined 32.65 points, or 1.12% at 2,893.05 after hitting a high of 2,939.00 and a low of 2,886.55.
IIP Data : Government announces Index of Industrial Production (IIP) numbers for the December and it is been came in at negative 2% versus 8% YoY and expectation of minus 0.4%. A significant fall in manufacturing output (-2.5% versus 8.6% YoY) and consumer durables growth (-12.8% versus 2.8%) may have led to the drastic fall. The November IIP number has also been revi:sed to 1.7% from 2.4% earlier.
Inflation : Inflation for the week ended January 31, as expected, came in at 4.39% versus 5.07% WoW. European shares were down by more than 1%, led lower by oils and banks. US stock indices futures too were down in excess of 1%.
Sectoral
Among BSE sectoral indices, IT and Teck indices lost the most, falling 2.5% and 2.3% respectively, while Realty and Auto indices gained the most, putting on 1.3% and 0.9% respectively. M & M and DLF were the top gainers among Sensex stocks, surging 6.9% and 3.6% respectively, while JP Associate and Ranbaxy were the top losers, shedding 4.8% and 3.8% respectively.
Realty : Realty index closed at 1,556.69, up 1.3% or 20.04 points. Realty shares advanced on hopes the forthcoming interim budget may include sops to the housing sector. India's largest real estate firm by market capitalisation DLF advanced 2.49% to Rs 154.60 on recent reports the company has secured long-term loans of about Rs 2000 crore.
Anant Raj Industries (up 4.99%), Akruti City (up 4.89%), and Ansal Infrastructure (up 2.91%), advanced.
As per reports, the government may announce tax sops aimed at boosting the housing sector, which has been identified as a potential driver for the economy and job creation during a slowdown. As things stand, taxpayers are allowed to deduct up to Rs 1.5 lakh of interest paid on home loans from their taxable income. This limit could be raised to Rs 2 lakh. This, if it happens, will enable those who have bought a house for self-use to save up to Rs 68,000 in tax. At present, the maximum anyone can save through this deduction is Rs 51,000.
Another possible sop for the housing sector could be reintroduction of Sec 80IA, under which corporates building dwelling units of less than 1,000 square feet area were exempted from tax on the profits from these units. This move may prompt developers towards constructing smaller houses, making houses more affordable for the lower segment of the market.
Auto : Auto Index ended with a gain of 23.78 points or 0.94% at 2,555.06. Auto shares advanced on hopes of the government could announce some tax sops for the automobile sector. India's top tractor maker by sales Mahindra & Mahindra jumped 6.99% to Rs 300.20 and was the top gainer from the Sensex pack.
India's largest truck maker by sales Tata Motors rose 0.81% to Rs 137.05, off the day's low of Rs 132.50.
Hindustan Motors (up 3.24%), Hero Honda (up 1.57%), Bajaj Auto (up 4.60%), also gained.
Reports indicated that excise duty on big cars with engine capacities of 1200 cc or more in petrol may be reduced to 16% from the existing 20%, post an across-the-board 4% cut in excise in December 2008.
FMCG : Selling was also seen in the FMCG space, wherein United Spirits plunged 9.39%, Ruchi Soya, United Breweries, ITC and Britannia were down 1-2.5%. BSE FMCG Index slipped 0.88%, or 18.05 points, to 2,028.82.
Oil & Gas : Oil & Gas index tumbled 120.88 points or 1.85%, to 6,409.93. India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 2.64% to Rs 1347.50, on profit booking. The stock moved in a range of Rs 1345.60 and Rs 1376 in the day. The stock had advanced 20.24% to Rs 1384.05 in a month to 11 February 2009.
India's largest state-run oil exploration firm by market capitalisation ONGC fell 1.97% to Rs 693.10 on reports the company has revised downwards its profit estimates for the year ending March 2010 by 35% due to the drop in international prices of oil.
Banking : BSE Bankex closed lower by 57.34 points or 1.15%, to 4,916.55. Private sector banking shares slipped fears of rising defaults in a weakening economy offset an overnight rise in American Depository Receipts (ADRs). India's second largest private sector bank by net profit HDFC Bank lost 0.26% to Rs 931 even as its ADR rose 3.78% on Wednesday, 11February 2009. India's largest private sector bank by net profit ICICI Bank slipped 3.42% to Rs 420.50 despite 3.92% gain in its ADR on Wednesday, 11February 2009.
However India's largest bank in terms of assets and branch network State Bank of India rose 0.09% to Rs 1159.45, off day's low of Rs. 1140
IT Sector : BSE IT index underperformed indices, down 2.46% or 54.77 points, to 2,170.96. Infosys tumbled 3.39% and TCS fell 0.94%.
IT pivotals declined as investors feared the new bank rescue plan announced by the US government may not be enough to revive the economy from a deepening recession and on weak ADRs. TCS, India's largest software services exporter by sales slipped 1.18% to Rs 508. India's second largest software services exporter Infosys Technologies shed 3.30% to Rs 1259.60 as its ADR declined 0.44% on Wednesday, 11February 2009. India's fifth largest IT exporter by sales HCL Technologies fell 0.91% to Rs. 114.20
However India's third largest software services exporter, Wipro rose 0.38% to Rs 222.80
IT firms derive a lion's share of revenue from export to the US. IT stocks fell despite a weak rupee. The Indian rupee was marginally weaker on Thursday following decline in Asian stock markets. The partially convertible rupee was at 48.77/78 per dollar, marginally weaker than Wednesday's close of 48.69/70. A weak rupee boosts operating margins of IT firms.
Pharma : India's largest pharma company by sales Ranbaxy Laboratories lost 3.93% to Rs 212.50 after domestic brokerage house Reliance Money recommended a sell rating on the stock, with price target of Rs 189.
Metal : BSE Metal Index shut shop at 5,138.33, down 0.97% or 50.38 points. Tata Steel, Sterlite Ind and SAIL fell 0.6-2.5%.
FMGC : Selling was also seen in the FMCG space, wherein United Spirits plunged 9.39%, Ruchi Soya, United Breweries, ITC and Britannia were down 1-2.5%. BSE FMCG Index slipped 0.88%, or 18.05 points, to 2,028.82.
Power : BSE Power Index was down 8.49 points or 0.47%, to 1,811.48. A mixed picture was also seen in power sector; GMR Infra, Tata Power, GVK Power and Suzlon Energy were losers while Power Grid Corp gained 5.09%. India's largest power generation firm by market capitalisation Tata Power Company fell 1.79% to Rs 793.50. Reportedly the company is scouting for other sources to import about 7 million tonnes of coal for its proposed power plants.
Telecom : India's second largest cellular services provider by net profit Reliance Communications slipped 0.95% to Rs 171.65 despite reports the company is in talks with seven global strategic investors for offloading 5% stake in its tower arm Reliance Infratel for about $500 million.
Spice Communications jumped 47.10% to Rs 77.30 on high volumes of 1.68 crore shares.
Once again this day also proved as a jittery for Indices and closed in negative for fourth consecutive day in row. Dispite of negative closing in US last night and weak Asian opening and trading market opened flat to negative on better than expected good number from tech bellwether Infosys Tech. But it also not helped the market to remain and close in postive zone, It fell below the psychological mark of 9,000 due to lack of cues in the noon trades and closed the session mildly on the lower side amid extreme volatility. Benchmark indices ended with marginal losses after seeing series of gyrations on either side. Gains led by IT pivotals on the back of stronger-than-expected Q3 December 2008 Infosys results were offset by fall in index heavyweight Reliance Industries (RIL). A fall in the European markets was another reason that kept the Indian markets slightly on the negative side during the second half.
The Sensex ended the day with a loss of 38.69 points, or 0.42% at 9,071.36 after touching a high of 9,261.00 and a low of 8,992.92. The broad-based NSE Nifty fell 28.15 points, or 1.02% at 2,744.95 after hitting a high of 2,802.60 and a low of 2,720.80. BSE Midcap and Smallcap index declined 1.43% and 1.51% respectively.
Crude & Currencies
The contracts for NYMEX crude sharply hitted on this slowdown and trading $39/barrel mark on NYMEX .
On expectation of money outflows by FII amid Satyam wovs India's Currency INR soften more in comparision to Dollar. On Tuesday arnd 7.00 PM it closed at 49.14 mark against dollar.
RESULT
Tech bellwether Infosys announced Q3 results, where net profit and revenues showed a growth of 14.6% and 6.8% respectively as against expectation of 7% and 5.5%. The company however lowered its full-year guidance due to expected currency fluctuation. The stock gained 6.4% in todays trade.
The strong growth in Infosys' Q3 net profit was mainly due to the depreciation of the rupee against the dollar. The growth in net profit was way above market expectations. The company's revenue rose 6.8% to Rs 5786 crore in Q3 December 2008 over Q2 September 2008. The revenue growth also surpassed market expectations. ( To read the Full story on Infosys Result CLick here )
Sectoral
It was a mixed day for sectroal indices, BSE IT ( up by 96.64 points or 4.71% at 2,147.69 ) and BSE Tech ( up by 14.84 points or 0.85% at 1,759.20 ) index was up while Oil & Gas ( down 1.78% or 99.69 points at 5,488.64 ) and Bankex index ( down 60.53 points or 1.17%, to close at 5,126.25 )was down. On SEXSEX Infosys ( + 6.36%) and Wipro (+ 6.05%) gained mostly and tops the index & become top gainers among sensex stocks, while R Com ( - 6.74%) and HDFC ( - 4.21 %) were down the most an slides the index most.
Tech Update : The BSE IT Index gained 96.64 points or 4.71% at 2,147.69. Infosys' strong-than-expected Q3 results and a weaker rupee lifted other IT pivotals. India's third largest software services exporter in terms of sales, Wipro recovered sharply from early low to end with 7.32% surge to Rs 244. It was the top gainer from the Sensex pack. The stock had slumped to low of Rs 200 in early trade. Wipro unveils its Q3 December 2008 earnings on 21 January 2009.
The stock had plunged 9.3% on Monday, 12 January 2009 after the company said during market hours it was barred from bidding for contracts from the World Bank until 2011 after it offered employees of the institution shares in its initial public offering. The announcement sent Wipro's ADR tumbling 10.37% on Monday, 12 January 2009.
India's largest software services exporter by sales TCS, too, rebounded from early low of Rs 488 and settled 2.98% higher at Rs 527. TCS unveils its Q3 December 2008 results on 15 January 2009.
However India's fourth largest software services exporter by sales Satyam Computer Services slumped 8.28% to Rs 31.55 as a quick-fix solutions is unlikely to rescue the firm hit by an estimated Rs 7,000 crore accounting fraud. The stock came off the session's high of Rs 37. Govt of India is expected to give Rs 2000 cr loan to satyam to save their employes, but it is not a easy work for them as there is new report coming out every time. RoC estimated that Rs 1000 cr is to be funded to satyam for their Day - day function in US. A unexpected move was come when PWC auditor of Satyam said to police that it itself verified the Rs 3300 fixed deposit. It put a question mark on Ex chief of satyam Ramalinga Raju confession.
The government-appointed directors on Monday, 12 January 2009 took charge of Satyam and announced that they would appoint a new auditing firm within 48 hours to re-state the accounts. Also, they would immediately begin searching for a new chief executive officer and a chief financial officer.
The government has reportedly offered to throw a financial lifeline to tottering Satyam Computer Services to help it pay salaries to some 53,000 employees and run its operations. The government will consider all aspects, including giving financial support, once it receives firm proposals from the newly-constituted board, Commerce and Industry Minister Kamal Nath said on Monday, 12 January 2009.
Oil & Gas : Oil & Gas Index underperformed other indices, down 1.78% or 99.69 points at 5,488.64. India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) lost 1.20% to Rs 1086.10. The stock swung in a wide range of Rs 1085 and Rs 1145 in choppy trade. The Centre will file an affidavit today, 13 January 2009 before the Bombay High Court on the sale of gas from the Krishna-Godavari basin. As per reports, the Centre is likely to state that the price of $4.2 per million British thermal unit (mBtu) will be applicable to all buyers irrespective of whether they are government-owned or private entities.
The Centre's submission could be crucial for National Thermal Power Corporation (NTPC), which is also locked in a dispute with RIL over the purchase of gas from the KG basin. RIL had earlier agreed to supply 12 million metric standard cubic meters per day of gas to NTPC at $2.34 per mBtu for 17 years.
India's top state-run oil exploration firm by market capitalisation Oil and Natural Gas corporation (ONGC) fell 2.92% to Rs 633.90 and India's top private sector oil exploration firm by market capitalisation Cairn India slipped 7.27% to Rs 152.95, as crude oil prices slumped on Monday, 12 January 2009.
Telecom : Telecom pivotals slipped on reports India's much awaited 3G spectrum license auction has been postponed yet again. India's second largest telecom services provider by sales Reliance Communication (RCom), slumped 6.42% to Rs 168.30 and was the top loser from the Sensex pack. India's largest telecom services provider by sales Bharti Airtel lost 2.82% to Rs 607
Bankex : Bankex fell 60.53 points or 1.17%, to close at 5,126.25. Private sector banking stocks declined on worries of rising bad loans in a slowing economy. India's largest private sector bank by net profit ICICI Bank fell 2.51% to Rs 427 after its ADR fell 7.31% on Monday, 12 January 2009. India's second largest private sector bank by net profit HDFC Bank shed 1.65% to Rs 987.65 after its ADR slipped 5.04% on Monday, 12 January 2009.
However India's biggest bank in terms of total assets and branch network, State Bank of India rose 1.40% to Rs 1173. The stock slipped 4.86% after the bank's Chairman O.P. Bhatt during trading hours yesterday, 12 January 2009, said the bank has an exposure of about Rs 500 crore to firms with the Maytas tag. Maytas Infra and Maytas Properties are owned by the family of Satyam's Raju. Bhatt said that the exposure was fully collateralised with no problem as of now. He said the bank was reviewing the exposure.
World Markets
Asian Markets : The region opened lower after a negaive closing in US market in Monday. All major indices of region slipped and closed in red. Asian stocks declined today, led by commodity producers. Jiangxi Copper fell more than 7% in Hong Kong. Inpex Corp. declined almost 8%. Japan Nikkei 225 index slipped 422.89 points and closed at 8,413.91. Hong Kong's benchmark index Hang Seng slipped -302.95 points and closed at 13,668.05 . Indian benchmark index SENSEX outperformed the region.
European Markets : The Euro range followed the trend of the US and asian market opening and closing pattern. All the indices of range slipped and closed in red. Euro, manufacturing hub and most expanded by GDP Germany index DAX ended at 4,614.98 slipping 104.64 points on closing basis. France CAC 40 index closed at 3,170.01 down 76.11 points. London based FTSE 100 index slipped 81.70 points and closed at 4,344.49 .
Indian market opened in the light of world bank shock of and witnessed selling pressure from the starting. Indices opened lower, BSE Sensex opened with a loss of 90.14 points, at 9,316.33 on Monday. Further it continues to slide by getting weaker clues over market by heavy selling by fund houses and retail trader. Later a mild recovery was witnessed due to better than expected IIP data in the noon trades, it helped market to head towards north but bears never give a way for positive zone. Market still not recovered from Satyam jitter, and slides for third consecutive day in negative zone now it is under performing the asian and world peers on daily and on weekly basis.
The Sensex ended the day with a loss of 296.42 points, or 3.15% at 9,110.05 after touching a high of 9,331.13 and a low of 9,024.45. The broad-based NSE Nifty fell 99.90 points, or 3.48% at 2,773.10 after hitting a high of 2,869.20 and a low of 2,748.55. BSE Midcap and Smallcap index declined 2.27% and 1.70% respectively.
Crude & Currencies
The NYMEX contract for crude oil is currently trading at $37.97/barrel , this is a fresh low of crudewhen it touches a high of $ 50 mark for a barrrel after a conflict between Isreal and Arab countries.
Indian Currency ( INR ) ended its day at Rs. 48.81 / dollar. It ended its day on soft note on the speculation of FII may make more outflows from India after Satyam Effect.
Index of Industrial Production
The Index of Industrial Production numbers for November came in at 2.4% compared to -0.4% Month-on-Month (MoM) and 4.9% Year-on-Year (YoY). Earlier, a CNBC-TV18 poll saw the data for November at a negative 0.36% versus a negative 0.4% and Bloomberg expected a negative of 0.8% .
Mining output is up 0.5% vs 6.3% (YoY) and manufacturing output is up 2.4% vs 4.7% (YoY). Capital goods output is down 2.3% vs 24.2% (YoY) and consumer goods output is up 4.4% vs (-)2.9% (YoY).
The April-November industrial growth came in at 3.9% vs 9.2% (YoY). October industrial output is revised to (-) 0.3% vs (-) 0.4%.
Sectoral
All the BSE sectoral indices finished in red. Metal and Realty indices were the top losers, down 5.6% and 4.9% respectively. Wipro and Reliance Infra were the top losers among sensex stocks, falling 9.3% and 6.9% respectively. Sole gainers among sensex were Sun Pharma and JP Associate, gaining 2% and 1% respectively.
Tech Update : The IT Index was down by 80.94 points or 3.8% at 2,051.05. Trouble for IT's bigges is not going to end, after the effect of Satyam now it was the turn of India 3rd largest company by sales Wipro. The stock of Wipro tumbled 9.3%, as the company said is ineligible for direct contracts from World Bank till 2011, however revenues from the bank are not significant. Company said it barred because it offered employees of the institution shares in its initial public offering (IPO) of comapny, some employes have taken part in the process and get 1750 shares of company in IPO. This matter is still not cleared we will update as and when we get update.
Infosys Tech result will be decleared on Tuesday before the market hours, and analyst are beleiving it will post a result in single percantage gain due to slowdown in US and some bankcrupcy in US. India's second largest software exporter by sales Infosys Technologies fell 3.36% to Rs 1155 ahead of its Q3 December 2008 earnings on Tuesday, 13 January 2009. As per a report by a foreign brokerage, Infosys could well miss its December 2008 quarter earnings forecast in dollar terms, hurt by lower volumes and cross currency movements.
Satyam surged 44.84% to close at 34.4 as new board comprising Deepak Parekh, C. Achutan and Kiran Karnik took charge.
Banks : BSE Bankex fell 194.58 points or 3.62% at 5,186.78. Banking major SBI plunged nearly 9% before closing down 5% as the bank said that it has Rs. 500 cr. exposure to Maytas. SBI has no exposure to outsourcer Satyam Computer Services but has an exposure of about Rs 500 crore to Maytas firms, the banks' chairman said in a television interview today, 12 January 2009. Maytas Infra Ltd and Maytas Properties are controlled by the family of Satyam founder B. Ramalinga Raju.
Banking stocks extended early losses on worries of rising bad loans in a slowing economy. India's largest private sector bank by net profit ICICI Bank fell 2.69% to Rs 442.60. India's second largest private sector bank by net profit HDFC Bank declined 0.69% to Rs 1005.30.
Oil & Gas : Oil & Gas index fell 189.26 points or 3.28% at 5,588.33. India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) slumped 4.52% to Rs 1099, on worries the recent steep fall in crude oil prices would dent refining margins of the firm.
India's largest oil exploration firm by market capitalisation Oil & Natural Gas Corporation (ONGC) slipped 3.06% to Rs 650, on further fall in global crude oil prices. US light crude for February 2009 delivery fell 32 cents to $40.51 as a big increase in US unemployment renewed worries about energy demand in the world's largest consumer. The price has declined sharply from a record high of $147 a barrel in mid-2008.
Metal : BSE Metal Index underperformed the other indices, declined 5.62% or 292.51 points at 4,911.35. Metal shares slipped on fall in commodity prices on the London Metal Exchange. India's top copper producer by sales Sterlite Industries slipped 4.43% to Rs 261 after its ADR plunged 8.11% on Friday, 9 January 2009.
Tata Steel (down 6.95% to Rs 199.60), and Hindalco Industries (down 4.94% to Rs 50), edged lower.
Realty : Realty was another top losing index, lost 4.87% or 90.73 points at 1,773.36. DLF was down 5.45% and Unitech down 5.15% on the expectation of lowering sales of properties as world is going into slowdown.
Engineering & Capital Goods : Capital Goods Index plunged 242.77 points or 3.63% at 6,436.65. India's largest engineering & construction company by sales Larsen & Toubro was down 3.24% to Rs 696.75, extending a sharp fall in the previous two trading sessions, as it will make huge losses on shares of Satyam it bought before the scandal. L&T had bought shares in Satyam earlier this month and holds 3.95% stake in the company, L&T chairman A M Naik said in a television interview on Friday, 9 January 2009. The company, which has a small outsourcing unit, had made the investment in Satyam in the hope of forming a strategic alliance, he said.
HealthCare: Healthcare Index was down by 28.91 points or 1.01% at 2,843.84. India's top pharma company by market capitalisation Sun Pharmaceuticals Industries rose 2.20% to Rs 1125 as index fund portfolio managers shuffled their positions after it replaced Satyam Computer Services in the 30-member Sensex pack from today, 12 January 2009. It was the top gainer from the Sensex pack.
World Indices
Asian Markets : On global front, Asian stocks declined today, led by commodity producers and industrial companies, as the worsening global recession pulled down demand for raw materials. Asian market ended on lower side after weak opening. Japan premier index Nikkei 225 ended its day lower after opening on higher side, it closes at 8,836.80 down 39.62 points or 0.45% . Hang Seng index closed to its Intraday low level and ended at 13,971.00 down 406.44 points or 2.83% . Indian markets were the under performer of the region and closed to their Intraday low level.
European Markets : Euro range market opened lower by getting weak data from Asian markets. But however they tried hard to come in positive zone, but failed to do so. At the end they ended lower by cutting 0.5 % to 1.62% . German based DAX index ended its day lower, at 4,719.62 down 64.27 points or 1.34% . France based CAC 40 index ended its day on Intraday low at 3,246.12 down 53.38 points or 1.62% . London bases FTSE 100 index opened in positive zone but cant able to hold that gain and slipped into red and ended its day at 4,426.19 down 22.35 points or 0.50% .
The Satyam story continued for the current day and indices ended lower for second consecutive day. Market ended lower after a volatile session and closed well above from their Intraday lows. After a shaking trade of Wednesday, market resumed its trade on week last trading day Friday on after Thusday national holiday. Indices opened the day on a negative note with a loss of 152.03 points, at 9,434.85 on Friday by geting weak US market clues and weak asian opening . Stocks of oil exploration, capital goods, metal, telecom, and select power and banking companies witnessed a steep fall. The sell-off was also seen in broader indices. However, frontline technology, FMCG, OMCs and select auto stocks remained on the higher side.
The Sensex ended the day with a loss of 180.41 points, or 1.88% at 9,406.47 after touching a high of 9,630.40 and a low of 9,250.82. The broad-based NSE Nifty fell 47.40 points, or 1.62% at 2,873.00 after hitting a high of 2,929.85 and a low of 2,810.25. BSE Midcap index declined 2.41% and Smallcap index dropped 2.92%.
Inflation :
India`s benchmark Wholesale Price Index (WPI), inflation continued its southward journey declining further for the ninth consecutive week. Inflation for the week-ended December 27 came in at 5.91% compared to 6.38% last week. There was a fall of 0.23% fall in the Inflation on compared to last week. This was better-than-expectations, as CNBC-TV18 poll saw inflation for week-ended December 27 coming in lower at 6.11%. WPI for week-ended November 1 is revised to 8.7% vs 8.98% .
Sectoral :
A bad day for market due to satyam event also spread on sector across. For the second consecutive day in row Metal and Realty indices ended their day as worst performing indicesBSE Metal dropped 7.16% followed by BSE Realty (down 5.15%), BSE CG (down 4.70%), BSE Oil & Gas (down 2.81%), BSE CD (down 2.40%) and BSE Power (down 1.99%), while BSE FMCG (up 1.22%), BSE Auto (up 1.01%) and BSE IT (up 0.18%). On stock specific on SENSEX, TCS ( up 6.34% at Rs535.65 )and HUL ( up by 4.79% at Rs263.50 ) were the top gainers among sensex stocks. On the lossing side Satyam plunged ( 40.30% at Rs23.85 ) followed by R Com, losing 9.61% at Rs186.65 .
NTPC, M & M , Maruti Suzuki India, Wipro, Grasim Industries, HDFC, ITC, Infosys and HDFC Bank ended with modest gains.
Metal stocks were hit hard and dropped sharply as on the news of de-rating of POSCO stock by Goldman Sachs to Neutral from buy. The metal index slashes 7.16% or 401.38 points to 5203.86 . Welspun crumbled by 10.16% at Rs91.55, SAIL lost 9.02% at Rs79.20, Hindustan Zinc shed 8.76% at Rs383.35 and NMDC declined by 7.83% at Rs145.95. Sesa Goa, Jindal Saw, Ispat Industries, Jai Corp and Nalco were down over 5-4% each.
Realty Index plungged on the news of DLF CFO Mr. Ramesh Sanka resigned from the company and sold his 1 lakh shares given to him thru ESOP. Later , this ESOP news was confirmed but Mr. Sanka denied any report of resignation. After the news of Mr. Sanka resignation, stock fell from 244 mark to mere 144 mark which is its 52 week low , but after deney of this market report stock gets its stauts back by recovering more than 50% and ended with a loss of 7.25% . Realty Index was down by 101.11 points or 5.15% at 1,864.09.
Capital Goods Index fell 329.35 points or 4.7%, to close at 6,679.42. The hot news of sector was re-rating of Engenering gain L&T to Neutral from Overweight by HSBC. The Analyst also cut target price to Rs 882 from Rs 1,250, the stock was down 7.15%. BHEL fell 1.61%.
Punj Lloyd tumbled 16.64%, as its wholly-owned UK subsidiary, Simon Carves (SCL), has commenced adjudication proceedings against SABIC Petrochemicals UK (SABIC). These proceedings are ultimately aimed at seeking restitution of 28.5 million pounds sterling or Rs 220 crore through the UK Courts.
Siemens went down 12.38 % and closed at 261.20, as Siemens India is going to sell 100% stake in IT subsidiary to Siemens AG Arm.
Oil & Gas Index took a knock due to downtrend in oil exploration stocks, down 2.81% or 166.82 points at 5,777.59. Reliance Petroleum, Reliance Industries and ONGC were down 2.9-4.6%.
Power stocks like GMR Infra, Reliance Infrastructure, Tata Power and Reliance Power fell 5-8%. Power Index lost 36.24 points or 1.99%, to 1,780.87. However, CESC gained 6.58% and NTPC rose 4.03%.
Bankex tumbled 107.88 points or 1.97%, to 5,381.36. ICICI Bank was down 2.82% and SBI down 1.84%. Axis Bank and Kotak Mahindra fell 5-7%. HDFC Bank rose 0.12%.
Telecom stocks have also seen selling pressure. Reliance Communication tanked 9.61%. Idea Cellular fell 6.82%. Tata Communication fell 3.48% and MTNL was down 2.915. Bharti Airtel lost 1.84%.
There was mixed picture in auto space, though Index was up by 25.19 points or 1.01% at 2,523.51. Hero Honda, M&M and Maruti Suzuki shot up 3.5%. However, Tata Motors lost 5.44% and Bharat Forge fell 2.03%.
If there was a interest on buying, then it was on IT stocks, but the trend was only visible in major technology stocks. TCS went up 6.34% and Wipro up 3.02%. Infosys was up 0.67%. BSE IT Index gained just 3.83 points at 2,131.99. However, other technology stocks were under pressure.
Satyam Effect || Mkt Tumbles 6% || Fraud of 7000 cr
It was nothing less than an disasters for Indian stock markets and Indian financial system as a whole as in a dramatic development, Satyams chairman Mr. Ramalinga Raju resigned from the board of Satyam and admitted cooking up figures in Satyam balance sheet. In the starting market opened on higher side, The 30 share BSE Sensex opened with a gain of 89.03 points, at 10,424.96 riding on the back of yesterday's smart recovery and an overnight gains in the US marketbut can't able to sustain this rally tumbles more than 6% as when the news came of Satyam Comp inflataion of Rs 5040cr and fraud of more than 7000 crores.
The Sensex ended the day with a loss of 749.05 points, or 7.25% at 9,586.88 after touching a high of 10,469.72 and a low of 9,510.15. The broad-based NSE Nifty declined 192.40 points, or 6.18% at 2,920.40 after hitting a high of 3,147.20 and a low of 2,888.20. BSE Midcap and Smallcap index plunged 7.17% and 6.29% respectively.
Termed as the worst ever fraud in corporate Indias history, Satyam revealed in a announcement that the balance sheet has inflated cash & bank balance of Rs. 5040 cr. and accrued interest of Rs. 376 cr. shown in books is non-existent. According to press release, Rs. 1230 cr. was arranged to Satyam, which is not reflected in books. The stock crashed after this announcement and closed with 77.7% fall.
Sectoral :
A bad day for market just because of Satyam ruined thee mood which was gained by positive close in US markets. There was a RED carpet closing in all BSE sectoral indices. The most affected sector was Realty which slumpped more than 16.95% or 401 points, to close at 1,965.20. The list followed by BSE IT ( down 218.66 points or 9.32% ), BSE Oil & Gas ( down 613.42 points or 9.35% at 5,944.41 ), BSE Bankex ( down 481.05 points or 8.06% at 5,489.24 ) and BSE Teck (down 7.85%). On stock specific Satyam was pulling the market most and tanked 77.16% at Rs40.90 JP Associates crashed 29.70% at Rs70.90, Reliance Communications shed 17.42% at Rs205.50, DLF declined 17.08% at Rs232, Reliance Infrastructure lost 13.25% at Rs561.20, Reliance Industries slipped 12.29% at Rs1,199.90 and ICICI Bank dropped 11.31% at Rs464. Among other major losers Larsen & Toubro dipped 9.49% at Rs768, Tata Motors slipped by 7.49% at Rs171.80 and Ranbaxy Laboratories was down 7.46% at Rs234.55. Mahindra & Mahindra, HDFC Bank, ACC, Hindalco Industries, State Bank of India, Tata Steel, ONGC and ITC were down 3.85% each. Select counters, however, bucked the downtrend. Hindustan Unilever advanced 1.44% at Rs250.20 while Infosys, Maruti Suzuki India and Wipro were up with steady gains.
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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