Market Closing Session - 12th Nov

Values buying in the mid-afternoon led the market to recover from a sharp slump. Disappointing industrial production data for September 2007 and weak global markets weighed on sentiments. FMCG, power and PSU stocks ended higher. Realty, IT and oil & gas stocks were major contributors in today’s decline. European markets were mixed.

India's industrial output in September 2007 rose 6.4% from a year earlier, sharply lower than annual growth of 10.7% in August 2007 due to sluggish manufacturing and electricity output, government data released in early afternoon today, showed. Manufacturing production rose 6.6% in September 2007 from a year earlier, compared with a provisional annual growth of 10.4% in August 2007.

Asian markets declined sharply on worries the fallout from the US subprime markets is spreading deeper into the credit markets and will eventually slow the growth of the US economy. The concerns were rekindled on Friday, 9 November 2007, when Wachovia Corp, the fourth-largest US bank, reported a potential $1.7 billion loss on mortgage-related debt.

The 30-share BSE Sensex ended down 170.33 points or 0.90% to 18,737.27. At the day’s low of 18,333.21, the Sensex lost 574.39 points.

The broader S&P CNX Nifty was down 46.15 points or 0.81% to 5617.10.

BSE clocked a turnover of Rs 6411.42 crore compared to Thursday (8 November 2007)'s Rs 6729 crore.

The NSE futures & options (F&O) turnover was at Rs 56771.23 crore compared to Thursday (8 November 2007)'s Rs 54391.37.

The Nifty November 2007 futures were at 5641.70, a premium of 24.6 points over spot closing of 5617.10.

The market breadth was negative. On BSE, 1699 stocks declined, while 1015 stocks moved up and 48 remained unchanged. 18 out of 30 stocks in Sensex were in red.

The BSE Mid-Cap was down 0.85% to 7,945.16 and the BSE Small-Cap was down 1.41% to 9,619.64. The Mid-Cap index outperformed the Sensex, while the Small-Cap index underperformed the Sensex.

Index heavyweight, Reliance Industries, India's largest private sector company in terms of market capitalisation and oil refiners, fell 2.15% to Rs 2676.95 after the company reportedly signed a contract for a second deepwater exploration block off the coast of Gulf state Oman. The exploration block is 100% owned by Reliance subsidiary, Reliance Exploration & Production DMCC.

The BSE Bankex fell 0.26% to 10,186.32. It outperformed the Sensex. ICICI Bank moved up 0.32% to Rs 1146.65. The stock came off session's low of Rs 1086.

State Bank of India spurted 3.45% to Rs 2237.15. As per reports, the Union Cabinet is likely to take a call by 22 November 2007 on State Bank of India's proposed plan to raise about Rs 18,000 crore through a rights issue. Incidentally, the winter session of Parliament is beginning on 15 November 2007 and the government will have to get the Parliament.

Telecom stocks declined. Reliance Communication fell 2.08% to Rs 694.80 and Bharti Airtel slide 4.29% to Rs 833.25.

The BSE Realty index fell 3.08% to 9,799.06. It underperformed the Sensex. Indiabulls Real Estate dropped 7.30% to Rs 590.80, Puravankara Projects fell 5.3% to Rs 385.05, DLF moved down 4.67% to Rs 871.20. Unitech gained 0.80% to Rs 365.50.

The BSE Oil & Gas index fell 2.28% to 11,369.24. It underperformed the Sensex. ONGC slumped 4.78% to Rs 1179.50, GAIL (India) gave away 3.50% to Rs 447.05, HPCL shed 3.18% to Rs 258.45 and Reliance Petroleum skid 2.48% to Rs 218.25.

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 shed 2.78% to 4,135.14. it underperformed the Sensex. Infosys Technologies slipped 3.60% to Rs 1,641.95, Satyam Computers fell 3.24% to Rs 413.10, TCS slipped 2.215 to Rs 963.70 and Wipro dropped 0.55% to Rs 457.45.

The BSE FMCG index gained 2.50% to 2,057.01. It outperformed the Sensex. ITC soared 5.30% to Rs 177.85 after Macquarie Securities raised its 12-month target price on the stock by 12% to Rs 225. Hindustan Unilever moved up 2.85% to Rs 198.75 and Dabur India rose 0.38% to Rs 105.75.

Recently launched, BSE Power index rose 0.16% to 4,394.15. It outperformed the Sensex. Neyveli Lignite surged 16.52% to Rs 194.70, NTPC soared 5.03% to Rs 253.50, Power Grid Corporation of India rose 2.62% to Rs 152.80 and Tata Power grew 0.66% to Rs 1221.25. Reliance Energy gave away 1.04% to Rs 1818.90.

Ispat Industries jumped 8.19% to Rs 38.95, its 52-week high, after 44.4 lakh shares changed hands on the BSE in several block deals at a price of between Rs 36.55 - Rs 38.20 each.

United Spirits was down 1.76% to Rs 1816.40. Liquor maker Diageo is said to be exploring the possibility of acquiring 10-13% stake in the comapny for $500-600 million.

Britannia Industries was down 1.55% to Rs 1527.50. The company is reportedly set to re-enter the snacks segment with a nationwide push behind Chutkule brand.

Suryachakra Power Corporation surged 19.89% to Rs 33.45 after it tied up with China's state-run China Guodian Corp for a proposed 1,200 mega watt coal-based power project in India. It has also tied up coal supplies with Indonesia's Central Korporindo International Tbk for steam coal.

Reliance Natural Resources clocked the highest turnover of Rs 316.76 crore on BSE. Reliance Industries (Rs 283.80 crore), Bharti Airtel (Rs 253.62 crore), Reliance Petroleum (Rs 240.78 crore) and Reliance Energy (Rs 222.32 crore), were other turnover toppers in that order.

Ispat Industries registered highest volumes of 4.38 crore shares on BSE. Reliance Natural Resources (2.19 crore shares), Essar Oil (1.57 crore shares), Manglore Refineries & Petrochemicals (1.27 crore shares) and Reliance Petroleum (1.11 crore shares), were the other volume toppers in that order.

In Europe, UK FTSE 100 gained 0.18% to 6,316.20. France’s CAC 40 shed 0.40% to 5,501.95 and Germany’s DAX fell 0.49% to 7,773.81.

Asian markets were weak today, 12 November 2007. Hong Kong's Hang Seng (down 3.88% at 27,665.73), Japan's Nikkei (down 2.48% at 15,197.09), Taiwan's Taiwan Weighted (down 3.35% at 8,670.61), Singapore's Straits Times (down 2.76% at 3,500.48) and South Korea's Seoul Composite (down 3.37% at 1,923.42), edged lower. Nikkei dropped to a 15-month low, erasing all gains made in 2007.

Japan’s yen strengthened against the dollar as a slump in Asian stocks prompted investors to cut carry trades funded with money borrowed in Japan. In carry trades, investors get loans in countries with lower benchmark borrowing costs, such as Japan's 0.5%, and buy assets in places with higher interest rates.

US markets ended on weak note on Friday, 9 November 2007 after major banks warned of further losses on their debt portfolios, raising investor concerns that the credit market worries are not yet over. The Dow Jones industrial average lost 223.55 points, or 1.69%, to 13,042.74. The Standard & Poor's 500 index declined 21.07 points, or 1.43%, at 1,453.70, while the Nasdaq Composite index fell 68.06 points, or 2.52%, to 2,627.94.

As per latest data released by the Association of Mutual Funds in India (AMFI), existing open-ended equity schemes of mutual funds witnessed a net outflow of Rs 3312 crore in October 2007. Equity schemes mopped up Rs 3748 crore in new fund offering (NFO) in the month. This pertains to collections in those NFOs with respect to which allotment was completed in the month.

Source - Capital Market