Market Closing Session - 08th Nov

Sustained selling pressure pulled the market down for the fourth consecutive session today, 8 November 2007. Sharp slide in banking stocks weighed on bourses. Surge in Hindalco Industries stock towards the end pulled up the metal index from earlier steep fall. Realty, IT and telecom stocks edged lower. Reliance Industries dropped.

Market resumed todays trade with thrusting decline tracking weak global markets, but gains in index heavyweight Reliance Industries enable the markets to recover by early afternoon. However, persistent weakness in global markets forced the domestic markets to erase its earlier gains and close lower.

Data showing fall in inflation to a lowest level in over 5 years failed to lift bourses. The wholesale price index rose 2.97% in the 12 months 27 October 2007, below the previous week's rise of 3.02% and its lowest in more than five years, government data released today afternoon showed.

The 30-share BSE Sensex ended 230.90 points or 1.20% lower at 19058.93. It touched a low of 18,917.40 in late trade. At day's low of 18,917.40, Sensex had lost 372.43 points.

The broader S&P CNX Nifty was down 83.6 points or 1.45% at 5698.75.

BSE clocked a turnover of Rs 6734 crore, compared to Wednesday (7 November 2007)'s Rs 6,873.70 crore.

The BSE Mid-Cap index was down 0.86% at 7,917.25, while the BSE Small-Cap index was lower by 0.96% at 9,601.97. Both these indices outperformed the Sensex.

The market breadth was negative. On BSE, 1074 shares advanced, while 1646 declined and 69 shares were unchanged. 22 out of 30 shares fell on Sensex.

Nifty November 2007 futures were at 5720, at a premium of 21.25 points over spot closing of 5698.75.

NSE's futures & options segment clocked a turnover of Rs 54391.37 crore, lower than Wednesday's Rs 62678.11 crore.

Telecom stocks fell further. Bharti Airtel lost 1.77% to Rs 884.35 and Reliance Communication shed 3.01% to Rs 704.90.

Banking stocks slipped. The BSE Bankex lost 2.51% to 10,353.19. Bankex Bankex underperformed the Sensex. State Bank of India gave away 3.65% to Rs 2184.55, HDFC bank lost 3.62% to Rs 1559.40, ICICI Bank shed 2.92% to Rs 1168.65 and Axis bank dropped 1.82% to Rs 920.10.

Export-driven software services companies, which are already under pressure because of a firmer rupee extended losses on concerns over a possible downturn in the United States, which accounts for more than half their revenue. The BSE IT index was down 1.03% to 4,298.86. The IT index outperformed the Sensex.

Infosys Technologies fell 1.61% to Rs 1715.75, Wipro fell 1.60% to Rs 469.70, TCS dropped 0.59% to Rs 992.35 and Satyam Computers fell 0.07% to Rs 434.55.

Oil & gas stocks edged lower. The BSE Oil & Gas index was up 0.81% to 11,593.75. The Oil & Gas index outperformed the Sensex. GAIL India moved up 2.29% to Rs 467.75. Oil & Natural Gas Corporation fell 4.07% to Rs 1236.80.

Reliance Industries (RIL) was down 0.72% to Rs 2742.75. RIL has reportedly bagged two oil blocks in Iraqs troubled Kurdish region.

Indian Oil Corporation was up 2.03% to Rs 513.65. The company reportedly plans to increase crude oil imports from Nigeria by 50% to 3 million tonnes a year. The state-owned company is also looking to start refining and petrochemical ventures in Nigeria and other African countries, the report said.

Metal and mining stocks were mixed. The BSE Metal index was down 1.83% to 17,049.52. The Metal index underperformed the Sensex.>Sterlite Industries fell 5.12% to Rs 1002.80, Steel Authority of India (Sail) dropped 3.05% to Rs 243.45 and Sesa Goa declined 2.67% to Rs 3553.95. Hindalco gained 7.95% to Rs 203.65. National Aluminium Company gained 13.34% to Rs 370.50.

The capital goods stocks declined. The BSE Capital Goods index fell 0.47% to 19,646.57. The Capital Goods index outperformed the Sensex. Jaiprakash Associates fell 3.35% to Rs 1499.35, Bharat Heavy Electrical (Bhel) fell 0.97% to Rs 2793.60, Siemens declined 0.18% to Rs 1754.60 and BEML dropped 0.55% to Rs 1587.60. Larsen & Toubro gained 0.40% to Rs 4130.85.

Mahindra & Mahindra lost 1.10% to Rs 751.45. As per reports, Mahindra & Mahindra may be back in race for acquiring Ford's automobile brands.

Tata Tea fell 0.49% to Rs 789.50. Tata Tea and Coca-Cola India are learnt to be planning a strategic alliance to enter new categories in the Rs 69,000-crore Indian FMCG market. Both companies are in advanced talks in New Delhi to clinch an agreement, the report suggested.

Compact Disc India jumped 4.95% to Rs 73.20 after it secured an animation outsourcing contract worth $19.8 million from iMedia Ventures for a science fiction thriller film.

Pratibha Industries fell 2.50% to Rs 257.10 despite the company said that it has secured a Rs 58.92 crore contract to construct four residential towers. The project is to be completed within 33 months.

Colgate Palmolive India gained 1.59% to Rs 388.55. The company has reportedly acquired 75% equity in Advanced Oral Care Products Private, Professional Oral Care Products Private and SS Oral Hygiene Products Private, which have been manufacturing toothpaste and supplying it to Colgate.

Reliance Natural Resources clocled the highest turnover of Rs 539.76 crore on BSE. Reliance Petroleum (Rs 449.95 crore), Reliance Energy (Rs 413.83 crore), Reliance Capital (Rs 358.39 crore) and Reliance Industries (Rs 309.28 crore), were other turnover toppers in that order.

Reliance Natural Resources clocled the highest volumes of 3.58 crore shares on BSE. Ispat Industries (2.82 crore shares), Reliance Petroleum (2.07 crore shares), IFCI (1.12 crore shares) and NOCIL (87.27 lakh shares) were other volume toppers in that order.

Asian and European markets fell today as investors sold financial shares on credit worries after Wall Street tumbled on Wednesday as a probe of the home loan industry by New York's attorney general drew in the country's biggest mortgage finance companies.

In Europe, Frances CAC 40 was down 0.75% at 5,640.55, Germanys DAX was down 0.14% at 7,788.86. However, UKs FTSE 100 gained 0.05% at 6,388.20.

In Asia, Hong Kongs Hang Seng lost 3.19% to 28,760.22, Japans Nikkei 225 shed 2.02% to 15,771.57, South Koreas Seoul Composite lost 3.11% to 1,979.56 and Taiwans Taiwan Weighted fell 3.90% to 8,937.58.

The sell-off in stocks started on Wall Street on Wednesday, 7 November 2007. The Dow Jones industrial average sank 360.92 points, or 2.64% on Wednesday, 7 November 2007, to end at 13,300.02.

The Standard & Poor's 500 Index lost 44.65 points, or 2.94%, to 1,475.62 -- the index's worst percentage drop since 9 Aug 2007, when French bank BNP Paribas spooked global markets by freezing three funds due to subprime fears. The Nasdaq Composite Index slid 76.42 points to 2,748.76. General Motors added to the gloom by posting its biggest-ever quarterly loss due in part to a deeper-than-expected loss at former finance subsidiary GMAC.

The market will be closed for normal trading on Friday, 9 November 2007, for Diwali but will have a brief one hour auspicious Muhurat trading session from 18:00 IST to 19:00 IST on that day.

Source - Capital Markets