Market Closing Session - 27th Aug

The market which was range bound throughout the day cracked in late trade on fears of a further monetary tightening by the Reserve Bank of India to rein in inflation which is at 16-year high. The BSE 30-share Sensex lost 185.43 points. The S&P CNX Nifty settled below the 4,300 mark. Index heavyweight Reliance Industries (RIL) and bank stocks led the decline in the key benchmark indices. All the sectoral indices on BSE ended in the red.

The government will unveil weekly inflation data after trading hours tomorrow, 28 August 2008. Inflation as measured by the wholesale price index is speculated to rise further to a fresh 16-year high in the year through 16 August 2008. It rose an annual 12.63% a week earlier. Global credit rating agency Moody's expects the Reserve Bank of India to further tighten monetary policy to contain rising prices.

As per the provisional data released by the stock exchanges after trading hours, foreign funds today, 27 August 2008, sold shares worth a net Rs 32.49 crore. Domestic funds bought shares worth a net Rs 163.27 crore.

European markets which opened after Indian markets were subdued. Key benchmark indices in UK, Germany and France were down by between 0.65% and 1.32%.

Asian markets rebounded after subdued start. Yet they were trading mixed. Key benchmark indices in Hong Kong, South Korea, Singapore and Taiwan were up by between 0.01% and 1.67% respectively. However indices in China and Japan were down 0.34% and 0.20% respectively.

The BSE 30-share Sensex was down 185.43 points or 1.28% at 14296.79. It opened 80.88 higher at 14,563.10, which was also its high for the day. Sensex hit a low of 14,261.69 in late trade. At the days low, the Sensex lost 220.53 points.

The S&P CNX Nifty slipped 45.40 points or 1.05% at 4292.10. Nifty August 2008 futures were at 4290, at a discount of 2.10 points as compared to spot closing.

The BSE Sensex is down 5990.20 points or 29.52% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6909.98 points or 32.58% away from its all-time high of 21,206.77 struck on 10 January 2008.

Market may exhibit volatile swings tomorrow, 28 August 2008, ahead of the expiry of derivative contracts for the August 2008. As per reports, marketwide rollover of positions from August 2008 series to September 2008 series stood at 40% while that of Nifty was at 37%, as of Tuesday, 26 August 2008.

The market breadth was weak on BSE with 1576 shares declining as compared to 1033 that advanced. 100 remained unchanged. The BSE Mid-Cap index slipped 1.02% to 5,686.43 and the BSE Small-cap index fell 0.76% to 6,859.91

The total turnover on BSE amounted to Rs 3419 crore as compared to Rs 3,789.89 crore yesterday, 26 August 2008. NSE's futures & options (F&O) segment turnover was Rs 47,535.27 crore, which was lower than Rs 49,779.36 crore on Tuesday, 26 August 2008.

Among the 30-member Sensex pack, 25 declined while the rest advanced.

India's largest oil exploration firm Oil & Natural Gas Corporation fell 0.83% to Rs 1007.05 after British oil and gas explorer Imperial Energy said on Tuesday, 26 August 2008, that its management has agreed to a takeover from ONGC worth 1.4 billion pounds ($ 2.6 billion).

Banking shares declined in late trade. HDFC Bank (down 1.23% to Rs 1240), ICICI Bank (down 2.74% to Rs 648.60), and State Bank of India (down 3.02% to Rs 1330), declined. The Bankex slipped 2.14% at 6715.45.

Indias largest real estate developer by market capitalisation DLF lost 3.65% to Rs 479.85 on 10.90 lakh shares. It was the top loser from the Sensex pack. The company has sought shareholders approval to raise up to Rs 10000 crore by selling shares to institutional investors.

The BSE realty index was down 3.50% at 4,837.04 and was the top loser among the sectoral indices on BSE. Unitech (down 2% to Rs 156.80), Indiabulls Real Estate (down 8.37% to Rs 262.25), Parsvnath Developers (down 1.58% to Rs 112.20), and Phoenix Mills (down 1.74% to Rs 180.55), edged lower from the realty pack.

Indias largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) fell 1.53% at Rs 2146.20 on 11.66 lakh shares. The stock moved in a range of Rs 2140 and Rs 2198. RIL, after market hours yesterday, 26 August 2008, confirmed media reports that it is planning to transfer 80% of its participatory interest (PI) in the D6 block in the Krishna Godavari (KG) basin to four unlisted subsidiaries.

Auto stocks slipped. Mahindra & Mahindra (down 0.20% to Rs 573.10), Tata Motors (down 2.19% to Rs 423.85), and Maruti Suzuki India (down 0.44% to Rs 629.45), edged lower. The BSE Auto index slipped 0.06% to 3,914.25

Bharat Heavy Electricals (down 2.31% to Rs 1682), Reliance Infrastructure (down 3.42% to Rs 968), and Reliance Communications (down 2.41% to Rs 397), edged lower from the Sensex pack.

Metal stocks bucked weak market trend. The BSE metal index was down 0.26% at 12,149.94. Indias largest private sector alumium and copper maker by sales Hindalco Industries gained 2.47% to Rs 139.05 on 6.59 lakh shares. It was the top gainer from Sensex pack.

Worlds sixth largest steel manufacturer by total capacity Tata Steel rose 0.86% to Rs 582.50.

Infosys Technologies, the countrys second largest software services exporter rose 0.67% to Rs 1709. The company said after trading hours on Monday, 25 August 2008, it has agreed to acquire UK based SAP consulting company Axon Group plc, for 407.1 million pounds or Rs 3310 crore. Axon reported profit after taxation of 20.2 million pounds (Rs 160 crore) on revenue of 204.5 million pounds or Rs 1660 crore in the year ended 31 December 2007.

However other IT pivotals slipped. Satyam Computer Services (down 0.27% at Rs 405), Wipro (down 0.56% to Rs 426.05), and TCS (down 1.72% to Rs 818) declined. The BSE IT index declined 0.08% to 3,892.17

Jaiprakash Associates (up 0.03% to Rs 156.90), and Grasim (up 0.03% to Rs 1957), edged higher from the Sensex pack.

Airlines stocks slipped as crude oil prices rose. Jet Airways (down 2.35% to Rs 452.35), Deccan Aviation (down 2.33% to Rs 79.50), and SpiceJet (down 1.76% to Rs 25.15), slipped despite reports they are considering fare hikes ahead of the start of the peak travel season in September-October 2008 to cope with rise in jet fuel prices.

Nu Tek India settled at Rs 199.30 on BSE, a premium of 3.18% over the IPO price of Rs 192. The stock debuted at Rs 201.10, a premium of 4.73% over the initial public offer price. The stock hit a high of Rs 225 and a low of Rs 194 during the day. On BSE, 1.30 crore shares were traded on the Nu Tek India counter.

Debutante Nutek India was the top traded counter on BSE with turnover of Rs 266.71 crore followed by Reliance Industries (Rs 252.27 crore), Reliance Capital (Rs 227.31 crore), Vishal Information Systems (Rs 139.95 crore) and Reliance Natural Resources (Rs 113.60 crore), in that order.

Nutek India, also, led the volumes chart on BSE, clocking volumes of 1.30 crore shares followed by Reliance Natural Resources (1.21 crore shares), GTL Infrastructure (78.68 lakh shares), Firstsource Solutions (74.85 lakh shares) and Chambal Fertilisers (62 lakh shares), in that order.

Tech Mahindra slipped 1.51% to Rs 773 on reports BT group is planning to sell its 31% stake in the firm, having decided that the holding does not fit its long-term strategy. However, the management of Tech Mahindra has denied any knowledge of British Telecommunications (BT), its long-term joint venture partner, contemplating selling its stake in the company, according to a business news channel.

Firstsource Solutions tumbled 8.78% to Rs 44.15 on reports ICICI Bank and two other major shareholders of the company have put their combined 68% in the firm up for sale at Rs 64 a share.

Punj Lloyd rose 2.16% to Rs 285.50 on reports the company plans to bid for Singapore's maiden liquefied natural gas terminal for which it has tied-up with an Italian firm Saipem. Saipem is a leading global engineering procurement and construction (EPC) contractor.

Bajaj Auto jumped 5.80% to Rs 579.95 after 1.40 lakh shares, or 0.09% of companys equity changed hands in a block deal on BSE at Rs 560 each.

Thomas Cook India soared 14.80% to Rs 98.50 after its board approved raising up to Rs 200 crore via a rights issue of equity shares. The company made the announcement during marker hours today, 27 August 2008. The ratio of the rights and the pricing would be decided later.

Meanwhile, even as signals of a growth slowdown are discernible in the wake of surging inflation and high interest rates, Finance Minister P. Chidambaram yesterday, 26 August 2008 expressed confidence that the economy would be back on track by the second half of 2009-10. He added the industry should look positively to an 8-9% growth which is here to stay.

US markets ended mixed yesterday, 26 August 2008 as hurricane fears lifted oil prices and boosted energy shares and Citigroup analysts said Fannie Mae and Freddie Mac have enough capital to last the year. However, gains were capped after a report from the US Federal Deposit Insurance Corporation said 117 US banks were on its 'troubled banks' list at the end of the second quarter, up from 90 after the first three months of the year.

The Dow Jones Industrial Average rose 26.62 points, or 0.23% at 11,412.87, the Standard & Poor's 500 Index gained 4.66 points, or 0.37%, at 1,271.50. However the Nasdaq Composite index fell 3.62 points, or 0.15% at 2,361.97.

On the New York Mercantile Exchange, October 2008 crude rose $1.16 at $116.27 per barrel yesterday, 26 August 2008 as oil companies began preparing against Hurricane Gustav, which is forecast to enter the US Gulf of Mexico as a major storm this weekend.