Market Closing Session - 05th Nov

Weakness in Asian markets caused by on worries about the credit market triggered by US financial giant Citigroup's announcement that it may suffer up to $11 billion in write-downs for subprime losses, hit domestic bourses today. Weakness persisted almost throughout the day and selling was seen in most sectors. Market breadth was positive.

Reliance Industries declined. Auto, banking, FMCG and metal stocks witnessed selling pressure. Bharti Airtel bounced back after recent sharp fall.

The Sensex lost 385.45 points or 1.93% to 19,590.78. It hit a low of 19,502.45 in late trade. At days low of 19,502.45, Sensex had lost 473.78 points.

The broader based S&P CNX Nifty was down 85.1 points or 1.43% to 5,847.30.

The market had opened on a positive note with Sensex crossing 20,000 at the onset of the trading session. It had soon slipped into the red.

The market breadth was positive on BSE: 1,403 scrips advanced as compared to 1,320 that declined while 354 remained unchanged. 4 of the 30 Sensex stocks were trading with gains.

The BSE Mid Cap index rose 0.77% to 8,083.66 and BSE Small Cap index rose 1.05% to 9,845.20. Both these indices outperformed Sensex.

All the sectoral indices on BSE outperformed Sensex. BSE Auto index(down 1.8% to 5,325.59), BSE Bankex (down 1.89% to 11,029.51), BSE Capital Goods index (down 1.47% to 20,087.55), BSE IT index(down 1.41% to 4,569.38), BSE Metal index (down 1.67% to 17,398.26), BSE Oil & Gas index (down 1.76% to 11,530.06) and BSE Realty index (up 0.34% to 10,363.04) outperformed Sensex.

Nifty November 2007 futures were at 5861, at a premium of 13.70 points as compared to spot closing of 5847.30.

BSE clocked a turnover of Rs 9,011 crore, higher than Friday (2 November 2007)'s Rs 8,120 crore.

NSEs futures & options (F&O) segment turnover was Rs 77,646.90 crore, which was higher than Rs 76,145.01 crore on Friday, 2 November 2007.

Banking majors declined reflecting a weak sentiment on financials elsewhere in Asia on renewed credit worries. BSE Bankex was the major loser among BSE sectoral indices.ICICI Bank (down 4.49% to Rs 1,270.85), HDFC Bank (down 2.32% to Rs 1,718) and State Bank of India (down 0.51% to Rs 2,240.25) edged lower.

FMCG majors also declined. ITC (down 2.34% to Rs 171.25) and Hindustan Unilever (down 1.33% to Rs 193.15) edged lower.

Auto stocks declined across the board. Indias largest truck maker by sales Tata Motors declined 2.07% to Rs 739.55. Tata Group is learnt to be leading the race to buy Land Rover and Jaguar after the second-round bidding in the auction of Ford's British brands closed on Friday, 2 November 2007.

Mahindra & Mahindra (down 1.68% to Rs 742.85), Hero Honda Motors (down 1.56% to Rs 663.90), Maruti Suzuki India (down 2.53% to Rs 995.45) and Bajaj Auto (down 1.18% to Rs 2,394.90) edged lower.

Larsen & Toubro (L&T) declined 3.89% to Rs 4,287.30 after the company said it has entered into a joint venture (JV) agreement with Mitsubishi Heavy Industries (MHI) for setting up a supercritical steam turbine and generator manufacturing facility in the country, with a capital outlay of around Rs 880 crore.

Metal stocks plunged. Sterlite Industries (down 3.46% to Rs 991), Hindalco Industries (down 2.08% to Rs 183.60), Steel Authority of India (down 1.63% to Rs 255.70) and Tata Steel (down 1.65% to Rs 879.10) edged lower.

India's largest private sector entity by market capitalisation and oil refiner Reliance Industries (RIL) declined 1.81% to Rs 2,663.65.

Bharti Airtel, the country's top mobile operator in terms of market share, rose 5.29% to Rs 942.20 on fresh buying after the stock fell more than 11% in the last two sessions on concerns about allocation of additional spectrum.

Satyam Computer Services (up 0.42% to Rs 463.95), NTPC (up 0.87% to Rs 236.80), Cipla (up 1.84% to Rs 176.8076.80) edged higher.

India's largest oil exploration firm by sales ONGC declined 4.91% to Rs 1,299.05 and was the top loser from Sensex pack.

Indias second largest IT services provider by sales Infosys Technologies declined 2.72% to Rs 1,856.35.

Reliance Natural Resources surged 25.74% to Rs 178.55 on reports that the company has responded to the offer made by Reliance Industries to form a team and resolve the KG Basin gas controversy across the table. The stock rose on heavy volume of 7.96 crore shares on BSE. The move follows a recent Bombay High Court order asking both parties to resolve their differences amicably within four months.

Among other side, Shree Digvijay Cement (up 20% to Rs 34.80), and Camlin (up 20% to Rs 224.40) edged higher.

CNI Research (down 30.08% to Rs 13.95), Sarda Plywood Industries (down 11.31% to Rs 29), Disa India (down 10% to Rs 2,182) and Welcast Steels (down 10% to Rs 1,246.45) edged lower.

Reliance Natural Resources clocked the highest volume of 7.96 crore shares on BSE. Reliance Petroleum clocked the second highest volume of 3.17 crore shares. It declined 0.69% to Rs 267.55. Jaiprakash Hydro Power clocked third highest volume of 1.69 crore shares on BSE. The stock rose 10.72% to Rs 90.90.

Tata Teleservices Maharashtra rose 2.39% to Rs 44.95 and clocked fourth highest volume of 1.55 crore shares on BSE. National Organic Chemical Industries rose 20% to Rs 48.35. On BSE, 1.1 crore shares changed hands in the counter.

Reliance Natural Resources clocked the highest turnover of Rs 1,345.61 crore on BSE. Reliance Petroleum clocked the second highest volume of Rs 868.96 crore. Reliance Industries (Rs 441.22 crore),Reliance Energy (Rs 300.04 crore) and Larsen & Toubro (Rs 213.24 crore) were other major turnover grossers on BSE

European markets, which opened after Indian market, were in the red. Frances CAC 40 (down 1.03% to 5,661.23), Germanys DAX (down 0.7% to 7,795.38) and UKs FTSE 100 (down 1.38% to 6,440.70) edged lower.

In Asia, Hang Seng (down 5.01% at 29,942.32), Nikkei (down 1.5% at 16,268.92), Singapore's Straits Times (down 1.21% at 3,670.18) and South Korea's Seoul Composite (down 0.18% at 2,015.76) edged lower. The Hong Kong stock market was the major loser today after Chinese Premier Wen Jiabao said China needed new laws before going ahead with a programme allowing mainland Chinese to invest directly in Hong-Kong-Listed securities. Taiwan's Taiwan Weighted (up 0.38% at 9,308.60) edged higher.

US stocks eked out a small gain on Friday, 2 November 2007, following strong October 2007 jobs data, pushing the blue-chip Dow and technology-laden Nasdaq Composite Index modestly higher. The crucial US jobs report showed payrolls surged in October at twice the expected rate, suggesting the world's biggest economy was strong enough to handle a deep housing slump without falling into recession.

Source - Capital Markets