Market Closing Session - Oct 12th

The market snapped three-day rally and Sensex lost nearly 400 points for the day, as correction in Asian and European markets prompted traders here to book profit. The market had made a sharp recovery from lower level in mid-afternoon trade from initial fall but the recovery proved short-lived and the market soon weakened again. Reliance Industries declined sharply from day's high. Most of the sectoral indices slipped into the red. European markets, which opened after Indian markets, were weak. Asian markets, which opened before Indian market, were subdued to weak.

The BSE 30-share Sensex ended down 395.03 points, or 2.1%, to 18,419.04. It hit a intraday low of 18,336 in late trade. At day's low of 18,336, Sensex had declined 478.07 points for the day.

The Sensex had surged 1,323 points in last three trading sessions till Thursday, 11 October 2007.

The broader based S&P CNX Nifty ended down 96.6 points, or 1.75%, to 5,428.25.

BSE clocked a turnover of Rs 9320 crore, lower than Thursday (11 October 2007)'s Rs 10,603.46 crore.

NSE's futures & options (F&O) segment clocked a turnover of Rs 90,419.66 crore today, 12 October 2007 compared to 72,261.05 on Thursday, 11 October 2007.

Nifty October 2007 futures were at 5,461.05, a premium of 32.8 points or 0.6% over the spot price of 5,428.25.

The market had witnessed a recovery from lower level in early afternoon trade from an initial slide as political worries eased after Congress president Sonia Gandhi reiterated that she doesn’t want early election. India's index of industrial production (IIP) data showed healthly growth in August 2007. Inflation eased a little bit. Both IIP and inflation data hit the market in early afternoon trade today. Mid-cap and small-cap indices outperformed Sensex.

Finance Minister P Chidambaram today said the economy can sustain a growth rate of 9%, but the growth may dip below 9% in case of some turbulence. Chidambaram said the steep rise in stock markets is cause for concern. The rally is being driven by large inflows of overseas funds, and the markets may cool down after some time, he added.

The BSE Mid Cap index declined 0.8% to 7,529.54 and BSE Small Cap index was down 0.24% to 9,098.65. Both these indices outperformed the market.

BSE Auto index (down 1.59% to 5,514.53), BSE FMCG index (down 1.91% to 2,142.13), BSE Health Care (down 1.59% to 3,806.20), BSE IT index (down 1.66% to 4,687.79), BSE Metal index (up 0.06% to 14,841.44), BSE Oil & Gas (down 1.4% to 10,575.95) outperformed Sensex.

BSE Bankex (down 2.72% to 9,310.79), BSE Capital Goods index (down 2.72% to 9,310.79), BSE Realty index (down 3.29% to 9,878.37) underperformed sensex.

Only metal index edged higher while rest of the sectoral indices on BSE were subdued. Capital goods, banking and real estate stocks declined sharply. Reliance Industries pared gains after hitting all-time high. Market breadth was weak.

Of the 30 shares of the Sensex, 4 moved up, while the remaining were trading down. The market breadth was weak on BSE: 1,022 scrips advanced, 1,692 declined, while 377 remained unchanged.

India's industrial output in August 2007 rose 10.7% from a year earlier, higher than upwardly revised annual growth of 7.5% in July 2007 due to mining, manufacturing and electricity production, data released by the government showed on Friday, 12 October 2007.

Manufacturing production rose 10.4% in August 2007 from a year earlier, compared with provisional annual growth of 7.2% in July 2007. The leader of India's Congress party and the most powerful politician in the country, Sonia Gandhi, said on Friday, 12 October 2007, she did not want an early election and was hoping to resolve differences with communist allies.

Elections are still far away and the government has one-and-a-half years to complete, Prime Minister Manmohan Singh said today, 12 October 2007. The prime minister said if the India-United States civil nuclear deal does not come through, it will be a disappointment. He said the government was trying to reconcile the divergent points of view on the issue within the ruling coalition. Dr. Singh said ys it is his hope that on the nuclear deal, common sense will ultimately prevail.

He said it is his hope and expectation that the government will stay the course and noted there is a lot of unfinished agenda left to be completed. Left front which is supporting the government from outside has been against operationalisation of the nuclear deal with the US, which had caused a rift between the government and the Left front.

India's wholesale price index (WPI) rose 3.26% in the 12 months to 29 September 2007, lower than the previous week's 3.42% rise, government data released today, 12 October 2007, showed.

Capital goods stocks declined sharply in late trade. L&T (down 3.61% to Rs 3,360.75), Bhel (down 3.3% to Rs 2,341.35) and Suzlon Energy (down 4.5% to Rs 1,698.10) edged lower. BSE Capital Good index was the major loser from the sectoral indices on BSE.

Realty stocks witnessed heavy selling. DLF (down 5.76% to Rs 865.65), Indiabulls Real Estate (down 2.7% to Rs 634.85) and Unitech (down 0.77% to Rs 339.85) edged lower. BSE Realty index was the second highest loser from sectoral indices on BSE.

Banking stocks lost ground as strong IIP data for August 2007 dashed hopes of a near term rate cut by RBI. ICICI Bank (down 3.37% to Rs 1,053), State Bank of India (down 4.23% to Rs 1,862.30) and HDFC Bank (down 1.76% to Rs 1,430.85) edged lower.

Auto stocks declined. Tata Motors (down 3.41% to Rs 802.10), Bajaj Auto (down 2.96% to Rs 2,542.30), Maruti Suzuki India (down 1.95% to Rs 1,096.80) edged lower.

Cipla declined 3.3% to Rs 184.75.

Reliance Energy (REL) rose 2.41% to Rs 1,636.30 and was the top gainer from Sensex pack. It hit an all-time high of 1,684.70 today.

India’s largest private company in terms of market capitalization and oil refiner Reliance Industries (RIL) was down 2.39% to Rs 2,566.85. The stock came off sharply from higher level as market expectations of bonus/stock split announcement at today’s annual general meeting of the company were belied. It hit an all-time high of Rs 2,724 earlier today.

Reliance Industries (RIL) chairman Mukesh Ambani today said the company will pursue organic and inorganic growth opportunities. The new Jamnagar refinery plant will be completed ahead of the scheduled time, and at half the capital cost at which international refineries are built, Ambani said while speaking at RIL's annual general meeting (AGM) in Mumbai.

Ambani also said RIL would raise its paraxylene capacity to 4.5 million tonne a year from 1.9 million tonne a year in two phases. The company is also looking at expanding its petrochemical businesses in other regions like Egypt and Russia, he said. Going ahead, the company would focus on new sectors like retail, infrastructure and agro-rural industry, Ambani said.

ONGC rose 2.36% to Rs 1,091.60. It hits an all-time high of Rs 1,118 today.

Mahindra & Mahindra (up 1.79% to Rs 828.45) edged higher.

IT stocks declined further. Strong rupee and possible US recession had hit the stocks since yesterday after Infosys had announced its Q2 September 2007 results before trading hours. Infosys (down 2.31% to Rs 1,930.45), Wipro (down 0.34% to Rs 486.45), Satyam Computer Services (down 2.09% to Rs 438.60), TCS (down 0.82% to Rs 1,063.10) edged lower.

Metal index was the lone gainer from sectoral indices on BSE. Hindalco Industries (up 1.73% to Rs 178.90), JSW Steel (up 1.15% to Rs 884.75) edged higher.

Koutons Retail India ended at Rs 590.45 on BSE, a premium of 42.28% over the IPO price of Rs 415.

Gujarat Mineral Development Corporation hit 5% upper circuit at Rs 1,851.20, on setting record date for 5-for-1 stock split.

Mastek soared 13.15% to Rs 364.05, after the company set maximum buyback price at Rs 750 per share, much above the ruling market price.

Unity Infraprojects moved up 4.7% to Rs 704.55 on bagging two major orders worth Rs 147.82 crore and Rs 77 crore.

Assam Company was locked at upper limit of 5% at Rs 26.20 on BSE on reports the company struck oil in the North-East region of India

Rolta India soared 7.55% to Rs 625.75 after the firm said its board will consider bonus issue on 22 October 2007.

Allcargo Global Logistics moved up 1.3% to Rs 951.15 ahead of its board meeting to consider raising Rs 400 crore by issue of equity shares and/or equity-linked instruments.

Exide Industries was down 2.53% to Rs 67.40, after the company said its net profit rose 42.30% to Rs 62.24 crore in Q2 September 2007 over Q2 September 2006.

Punj Lloyd declined 0.88% to Rs 353.80, on bagging Rs 389 crore contract from Qatar Petroleum for constructing a multi-product pipeline on engineering, procurement, construction basis, in Qatar.

European markets opened weak today. France’s CAC 40 (down 1.24% to 5,789.84), UK’s FTSE 100 (down 0.8% to 6,670.90) and Germany’s DAX (down 0.57% to 7,987.88) edged lower.

Asian markets, which opened before the Indian markets, were subdued today. Hong Kong’s Hang Seng (down 1.01% to 28,838.37), Singapore’s Straits Times (down 0.48% to 3,857.25), Japan's Nikkei (down 0.73% at 17,331.17), South Korea’s Seoul Composite (down 1.57% to 2,026.44), Taiwan's Taiwan Weighted (down 2.07% to 9,496.47) edged lower.

On Wall Street on Thursday, 11 October 2007, Chinese Internet company Baidu.com Inc. tumbled 10% after JPMorgan cut its third quarter revenue target, spurring concerns that the recent US tech rally may be coming to a close. The tech-heavy Nasdaq Composite Index lost 39.41 or 1.4% at 2,772.20, while the blue-chip Dow which hit an intraday record high earlier, settled 63.57 points or 0.45% lower at 14,015.12.

As per data released by Association of Mutual Funds in India (AMFI) on Thursday, 11 October 2007, equity schemes witnessed a net outflow of Rs 957 crore in September 2007. Equity schemes collected Rs 2282 crore in new fund offers (NFO) (this pertains to NFOs for which allotment was concluded in the month), in the month. Existing opened ended equity schemes witnessed a net outflow of Rs 2951 crore in the month.

Source - Mastermarts