Market Closing Session - 18th Dec

The market declined sharply in the late trade before recovering from lower level in what was a choppy trading session today. Though the market breadth was still negative, it improved substantially compared to a weak breadth in mid-morning trade. FMCG, healthcare and consumer durable stocks gained. Banking, metal and capital goods stocks edged lower. Reliance Industries declined.

European markets which opened after Indian market were in green. Asian markets, which opened before Indian markets were mixed today, 18 December 2007. US stocks tumbled on Monday, 17 December 2007, on concerns about the US economy, amid signs of rising inflation and weakness in holiday shopping.

The 30-share BSE Sensex declined 181.71 points or 0.94% to 19,079.64. It had hit a low of 19,009.35 in late trade. At days low Sensex lost 252 points. It hit a high of 19,375.07 in early trade. At its days high Sensex had gained 113.72 points.

The S&P CNX Nifty declined 34.7 points or 0.6% to 5,742.30.

Market breadth was negative. On BSE, 1,193 stocks advanced, 1,672 stocks declined and 27 stocks remained unchanged. 18 out of 30 stocks from the Sensex pack declined.

BSE clocked a turnover of Rs 8007 crore, lower than Monday (17 December 2007)'s Rs 9641 crore.

Nifty December 2007 futures were at 5788, at a premium of 45.70 points as compared to the spot closing of 5742.30.

The NSE's futures & options (F&O) segment turnover was Rs 74,579.26 crore, which was higher than Rs 73,373.37 crore on Monday, 17 December 2007.

BSE Mid-Cap index declined 0.13% to 9,093.84. BSE Small-Cap index declined 0.18% to 11,818.12. Both these indices outperformed Sensex.

BSE Realty index (down 0.38% to 11,654.58), BSE Power index (down 0.17% to 4,215.30), BSE Auto index (down 0.08% to 5,564.87), BSE FMCG index (down 0.05% to 2,210.01), BSE Oil & Gas index (down 0.04% to 12,309.68), BSE Consumer Durables index (up 1.12% to 6,059.99), BSE Health Care index (up 1.5% to 4,261.32) outperformed Sensex.

BSE Capital Goods index (down 1.18% to 18,902.71), BSE Metal index (down 1.35% to 18,077.63) and BSE Bankex (down 1.42% to 10,764.22) underperformed Sensex.

Indias largest private sector firm by market capitalization & oil refiner Reliance Industries declined 1.75% to Rs 2,728.85. As per reports, Reliance Industries (RIL) has paid advance tax of Rs 1045 crore in the third quarter ended 15 December 2007 compared to Rs 440 crore in the corresponding quarter of the previous year.

Reliance Communications (RCom) was down 0.47% to Rs 714.40. As per reports it will invest Rs 800 crore to roll out a telecom network fixed and mobile in Uganda, a country in Eastern Africa. The company has bagged a licence to be the African nations sixth telecom operator. The company plans to launch services in Uganda by Q3 in 2008, the report added.

FMCG majors rose. ITC (up 2.22% to Rs 197.85) and Tata Tea (up 1.28% to Rs 880.60) edged higher. Hindustan Unilever (down 3.39% to 211.20) edged lower.

Consumer durables stocks rose. Videocon industries (up 0.53% to Rs 619.40), Lloyd Electric (up 1.19% to Rs 174) and Titan Industries (up 4.99% to Rs 1,459.65) edged higher.

Healthcare stocks rose. Sun Pharmaceuticals (up 4.03% to Rs 1,137.95), Cipla (up 3.78% to Rs 215.75), Dr. Reddys Laboratories (up 0.09% to Rs 717.45), Ranbaxy Laboratories (up 1.05% to Rs 410), edged higher.

Metal stocks declined. Tata Steel (down 0.91% to Rs 816.35),Sterlite Industries (down 1.76% to Rs 959), and Hindalco Industries (down 0.47% to Rs 199.70) edged lower. Steel Authority of India was flat at Rs 259.75.

Capital goods stocks declined. Bharat Heavy Electricals (down 1.24% to Rs 2,395.10) and Larsen & Toubro (down 2.8% to Rs 3,967.80) edged lower. Suzlon Energy (up 1.84% to Rs 1,861.80) edged higher.

Banking stocks declined. ICICI Bank (down 2.27% to Rs 1,140.65), and HDFC Bank (down 1.28% to Rs 1,685) edged lower.

State Bank of India declined 0.47% to Rs 2,303.70. State Bank of India (SBI) shelled out Rs 1090 crore, up 26.7% over the tax it paid in the corresponding period in the previous year.

Maruti Suzuki India (up 0.93% to Rs 1,019.65) and NTPC (up 1.66% to Rs 232.40) edged higher.

Indias largest dedicated housing financing firm by operating income HDFC declined 2.27% to Rs 2,812.30.

IKF Technologies clocked the highest volume of 3.77 crore shares on BSE. The stock rose 5.17% to Rs 13.03. IFCI clocked the second highest volume of 3.57 crore shares on BSE. The stock declined 6.73% to Rs 101.10. Ispat Industries clocked the third highest volume of 3.31 crore shares. The stock rose 4.43% to Rs 81.35. G V Films clocked the fourth highest volume of 2.65 crore. The scrip declined 3.24% to Rs 10.76. Himachal Futuristic Communications declined 0.12% to Rs 41 and it clocked the fifth highest volume of 2.29 crore shares.

ONGC clocked the highest turnover of Rs 387.94 crore on BSE. IFCI (Rs 364.74), Essar Oil (Rs 293.96 crore), Ispat Industries (Rs 259.98 crore) and Reliance Petroleum (Rs 227.16 crore) were other turnover toppers in that order.

European markets were trading higher today. Germanys DAX (up 0.83% to 7,891.17) and UKs FTSE 100 (up 0.77% to 6,326) edged higher.

Asian markets were mixed today, 18 December 2007. Hong Kong's Hang Seng (up 0.51% at 26,732.87), South Korea's Seoul Composite (up 1.18% at 1,861.45), Singapore's Straits Times (up 0.47% at 3,369.31) edged higher. Taiwan's Taiwan Weighted (down 0.3% at 7,807.39), Shanghai Composite (down 0.83% to 4,836.17) and Japan's Nikkei (down 0.27% to 15,207.86) declined.

The Dow Jones industrial average slid 172.65 points, or 1.29%, to end at 13,167.20, on Monday, 17 December 2007. The Standard & Poor's 500 Index dropped 22.05 points, or 1.50%, to 1,445.90. The Nasdaq Composite Index tumbled 61.28 points, or 2.32%, to 2,574.46.

US government reports last week showed rising price pressures in November 2007, while concerns about the housing slump intensified after news that sentiment among US home builders held at a record low for a third consecutive month in December 2007.

Volatility may remain high in the near term ahead of expiry of December 2007 derivatives contracts next Thursday, 27 December 2007. The market remains closed on Friday, 21 December 2007 on account of Bakri Id and also on Tuesday, 25 December 2007 on account of Christmas. Therefore, only six trading sessions are left for expiry of December 2007 derivatives contracts.

Meanwhile, the market regulator Securities and Exchange Board of India (Sebi) on Monday, 17 December 2007, put out a note on the proposed plan to introduce new products in the derivatives segment on its website to seek comments/suggestions from market participants on or before 21 December, 2007.

Source - Capital Markets