Market Closing Session - 16th Sep

Buying in index pivotals coupled with short covering after five straight days of fall helped key benchmark indices erase sharp early losses and post marginal gains in highly choppy session. Higher Dow & Nasdaq and crude oil at 7-month low aided the rebound. The S&P CNX Nifty ended in green.

Index heavyweight Reliance Industries recovered sharply from 52-week low. Banking shares spurted on expectations that the meltdown in US market may prompt US Federal Reserve to cut interest rate to 1.75% from 2%. State Bank of India (SBI) advanced over 7%. However, ICICI bank cracked over 5% on high volumes. US Federal Reserve will hold a regular policy meeting later today, 16 September 2008.

Dow futures were up down 49 points while Nasdaq futures rose 4.25 points indicating higher opening of the US markets on Tuesday, 16 September 2008.

As per provisional data released by the stock exchanges after trading hours, foreign funds today, 16 September 2008, sold shares worth a net Rs 1303.41 crore. Domestic funds bought shares worth a net Rs 612.36 crore.

The BSE 30-share Sensex slipped 12.47 points or 0.09% at 13,518.80. The Sensex opened with a downward gap of 479.54 at 13,051.73, also its days low. At the days high of 13,556.03 hit in late trade, the Sensex rose 24.31 points.

The S&P CNX Nifty rose 2 points or 0.05%, to 4074.90. Nifty recovered from a low of 3919.35. At the day's low, Nifty had lost 153.55. Prior to todays small gains, the Nifty had declined 407.40 points or 9.08% in five trading sessions from 4482.30 on 8 September 2008 to 4072.90 on 15 September 2008.

BSE Sensex has lost 1426.17 points or 9.54% in six trading sessions from a recent high of 14,944.97 on 8 September 2008. The barometer index is down 6768.19 points or 33.36% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7687.97 points or 36.25% below its all-time high of 21,206.77 struck on 10 January 2008.

Nifty September 2008 futures were at 4098.10, at a premium of 23.20 points as compared to spot closing. NSE's futures & options (F&O) segment turnover was Rs 56,509.60 crore, which was lower than Rs 61,185.99 crore on Monday, 15 September 2008.

The market breadth was weak on BSE with 1725 shares declining as compared to 928 that rose. 71 remained unchanged. 19 shares from the 30-member Sensex pack declined.

The total turnover on BSE amounted to Rs 5919 crore as compared to Rs 4,485.30 crore on Monday, 15 September 2008.

The BSE Mid-Cap index slipped 71.34 points or 1.35% to 5,217.25 and BSE Small-Cap index lost 91.06 points or 1.43% to 6,289.41

Indias largest state run bank in terms of net assets State Bank of India galloped 7.44% to Rs 1599.60 on 13.94 lakh shares and was the top gainer from Sensex pack. The stock staged a massive recovery from early low of Rs 1432.60. As per reports, the bank paid 48% higher advance tax to Rs 1560 crore in Q2 September 2008 over Q2 September 2007.

However India's largest private sector bank in terms of net profit ICICI Bank plunged 5.23% to Rs 595.05 on 55.56 lakh shares on concerns it may incur losses tied to the US credit market turmoil. ICICI Bank said on Tuesday, 16 September 2008, it had exposure to 57 million euros ($81 million) of Lehman Brothers senior bonds, adding the potential losses were not material.

Mid-cap banking shares spurted on fresh buying. Allahabad Bank (up 6.91% to Rs 64.25), Bank of Baroda (up 6.34% to Rs 321.20), Bank of India (up 5.57% to Rs 290.20), Canara Bank (up 7.26% to Rs 218), Axis Bank (up 6.53% to Rs 700.20), surged. The Bankex rose 0.89% to 6,852.41.

Indias largest private sector firm in terms of market capitalization and oil refiner Reliance Industries gained 2.50% to Rs 1931.20 on 13.43 lakh shares. The stock rebounded sharply from a 52-week low of Rs 1800 in intra-day trade. Reliance Industries reportedly paid 5% higher advance tax at Rs 680 crore in Q2 September 2008 over Q2 September 2007.

Sterlite Industries (up 4.48% to Rs 486.15), HDFC Bank (up 2.16% to Rs 1230), and Bharat Heavy Electricals (up 1.95% to Rs 1660) edged higher from Sensex pack.

Telecom pivotals saw divergent trend in volatile trade. Indias largest cellular services provider by market capitalisation Bharti Airtel rose 0.71% to Rs 770.90. The stock oscillated in a band of Rs 728.55 and Rs 785.50

Indias second largest cellular services provider by market capitalisation Reliance Communications fell 0.26% to Rs 368. The stock oscillated in a band of Rs 350 and Rs 369.45

Most IT pivotals were under pressure. The BSE IT index lost 1.44% at 3,545.05. Indias fourth largest software services exporter Satyam Computer Services slumped 1.56% to Rs 362.40. The company said it has bagged a SAP implementation contract from Oman-based Khimji Ramdas LLC. The company made this announcement during trading hours on Monday, 15 September 2008.

Wipro (down 1.57% to Rs 396), and TCS (down 1.68% to Rs 749), slipped.

However Indias second largest software services exporter Infosys rose 0.35% to Rs 1579.90, after striking an intra-day low of Rs 1500.

Ranbaxy Laboratories, Indias top drug maker by sales fell 2.73% to Rs 408. The stock has been on sustained downtrend ever since the Japanese drug maker Daiichi Sankyos open offer to acquire an additional 20% stake at Rs 737 a share in the company ended on 4 September 2008.

Metal stocks declined as global metal prices extended losses on concerns turmoil in the global markets may slow the global economy, reducing demand for metals. The BSE Metal index lost 2.06%, to 10,176.49.

World's sixth largest steel maker Tata Steel fell 2.71% at Rs 486.45. The stock declined 18.86% in past one month and 40.57% in past three months till 15 September 2008.

Jindal Steel & Power fell 6.49% at Rs 1404.80. The stock declined 21.72% in past one month and 28.15% in past three months till 15 September 2008. Hindustan Zinc fell 5.63% at Rs 493. The stock declined 5.86% in past one month and 11.47% in past three months till 15 September 2008.

Sesa Goa lost 7.46% at Rs 119.70. The stock declined 26.34% in past one month and 31.03% in past three months till 15 September 2008. Steel Authority of India (Sail) fell 0.66% at Rs 136.20. The stock declined 4.74% in past one month and 14.48% in past three months till 15 September 2008.

Realty shares extended Mondays, 15 September 2008 fall. The BSE Realty index lost 3.93%, to 4,163.96. DLF (down 1.76% to Rs 425), Unitech (down 1.53% to Rs 141.30), Indiabulls Real Estate (down 6.32% to Rs 223.80), Housing Development Infrastructure (down 4.46% to Rs 231.55), slumped.

Maruti Suzuki India (down 3.92% to Rs 695.05), DLF (down 1.76% to Rs 425), and Jaiprakash Associates (down 4.96% to Rs 140), edged lower from the Sensex pack.

State-run oil refiners gained after crude oil price declined further to a 7-month low. Indian Oil Corporation (up 0.94% at Rs 417.40), BPCL (up 3.76% at Rs 360.50), and HPCL (up 3.43% at Rs 248.50), rose. Crude oil prices plunged to a seven-month low as turmoil in the US financial system heightened concerns energy demand may slow. US light crude for October 2008 delivery fell $3.02 to $92.69 a barrel yesterday, 15 September 2008.

Among side counters, Hercules Hoists (up 20% to Rs 3040.30), IVP (up 15.44% to Rs 31.40), Simplex Castings (up 11.98% to Rs 52.80), and Century Enka (up 11.41% to Rs 103.95), surged.

Reliance Capital was the top traded counter on BSE with turnover of Rs 357.70 crore followed by ICICI Bank (Rs 324.85 crore), Bharti Airtel (Rs 258 crore), Reliance (Rs 253.40 crore) and HDFC (Rs 240 crore) in that order.

Reliance Natural Resources led the volume chart on BSE with volumes of 1.50 crore shares followed by IFCI (1.06 crore shares), Ispat Industries (70.50 lakh shares), Chambal Fertilisers (64.65 lakh shares) and GVK Power & Infrastructures (56 lakh shares) in that order.

KSK Energy Ventures surged 17.13% to Rs 202.05. The company said in a statement today, 16 September 2008, the shareholding of Lehman Brothers and its units in the company was locked in for a year. Lehman affiliates hold 28.41% in the company, which they had acquired as a part of a pre-initial public offer (IPO) transaction.

Usher Agro lost 10% at Rs 179.80 despite reports leading private equity firms such as Blackstone, TPG, Blue River Capital, Actis and Silk Route are eyeing more than a 40% stake in the company.

Mather & Platt Pumps was locked at upper limit of 20% to Rs 140.50 on BSE after the company said its promoter proposes voluntary delisting of the company from all the stock exchanges. The company made the announcement before market hours today, 16 September 2008.

Glodyne Technoserve advanced 6.67% to Rs 657.95 after it said it has secured an order worth Rs 284 crore from Bihar State Electronics Development Corporation for implementing National Rural Employment Guarantee Scheme in Bihar. The company made this announcement after trading hours on Monday, 15 September 2008.

US markets collapsed on Monday, 15 September 2008 falling the most since 11 September 2001 as investors worried about the impact of the latest twists in the credit crisis on the economy and the outlook for profits. On Monday, 15 September 2008, US investment bank Lehman Brothers filed for bankruptcy and Bank of America acquired Merrill Lynch. American insurer AIG was struggling for survival. The Dow Jones Industrial Average plunged 504.48 points, or 4.42%, to 10,917.51, the Nasdaq Composite index dropped 81.36 points, or 3.60%, to 2,179.91 and the Standard & Poor's 500 index fell 59 points, or 4.71% to 1,192.70.

European markets which opened after Indian markets were subdued. Key benchmark indices in UK, Germany and France were down by between 0.37% and 1.54%. Asian markets were trading weak today, 16 September 2008 as fears of a global financial crisis gripped investors across Asia. Key benchmark indices in China, Japan, Hong Kong, Taiwan, Singapore, and South Korea were down by between 1.01% and 6.10%.