Indian Stock News by Experts

Sensex off 48% in calendar 2008

<DIV>There is fear and panic on the stock markets. The bourses suffered heavy losses today on the back of global sell-off and on data showing dismal industrial production growth in August 2008. The BSE 30-share Sensex lost 800.51 points. IT stocks suffered on downward revision in guidance in dollar terms by IT bellwether Infosys Technologies. Banking stocks were volatile reacting to a slew of news such as cut in cash reserve rate, slowdown in industrial production and fall in inflation. Reliance Communications declined 21.02%, Reliance Infrastructure and ICICI Bank lost more than 19% each and Jaiprakash Associates shed 16.27%. Securities & Exchange Board of India (Sebi) chief C B Bhave today said there was no unusual activity in the stock market. He further said there has been no shorting by institutions in cash markets. Inflation based on the whole price index rose 11.8% in 12-months to 27 September 2008, lower than previous week's 11.99% rise, data released by the government during trading hours today, showed. Stocks fell across the globe despite worldwide central bank measures to stave off a crisis. Bank bailouts, liquidity injections and interest rate cuts across the world have failed to quell investor anxiety with Asian stocks tumbling today, following overnight setback in US stocks. Back home, the Reserve Bank of India (RBI) toady cut the cash Reserve Ratio (CRR) second time in the week. The central bank cut CRR by 100 basis points after 50 basis point cut earlier in the week. Trading in US index futures suggested the Dow would fall 227 points at the opening bell. The BSE 30-share Sensex ended down 800.51 points or 7.07% to 10,527.86. The index plunged 1,088.50 points at the day's low of 10,239.76 at the onset of the trading session, its lowest level since 24 July 2006. The Sensex fell 424.33 points at day's high of 10,904.13, in early trade. The S&P CNX Nifty was down 233.70 points or 6.65% to 3,279.95. Nifty hit a low of 3,198.95 in early trade, its lowest level since 9 August 2006. From the recent high of 13,055.67 on 1 October 2008, the Sensex has lost 2,527.81 points or 19.36%. The barometer index is down 9,759.13 points or 48.1% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 10,678.91 points or 50.35% below its all-time high of 21,206.77 struck on 10 January 2008. BSE clocked a turnover of Rs 5,073 crore today as compared to a turnover of Rs 5,135.12 crore on 8 October 2008. Nifty October 2008 futures were at 3295, at a premium of 15.05 points as compared to spot closing of 3279.95. NSE's futures & options (F&O) segment turnover was Rs 48,279.24 crore, which was lower than Rs 57,666.95 crore on Wednesday, 8 October 2008. The BSE Mid-Cap index ended down 8.34% at 3,676. The BSE Small-Cap index was down 7.31% at 4,355.45. Both the indices underperformed the Sensex. The market breadth was extremely weak. On BSE, 382 shares advanced as compared to 2,189 that declined. 48 shares remained unchanged. All the sectoral indices on BSE were in the red. BSE Realty index (down 11.3% to 2,523.07), BSE Consumer Durables index (down 10.11% to 2,139.50), BSE Metal index (down 9.25% to 6,542.27), BSE Capital Goods index (down 9.22% to 7,983.04), BSE Power index (down 8.8% to 1,855.04), BSE Bankex (down 7.84% to 5,319.50) underperformed the Sensex. BSE HealthCare index (down 3.92% to 3,213.28), BSE IT index (down 4.33% to 2,584.25), BSE FMCG index (down 4.46% to 1,860.56), BSE PSU index (down 4.47% to 5,535.99), BSE Auto index (down 5.43% to 3,255.68), BSE Oil & Gas index (down 6.72% to 7,272.31), BSE Teck index (down 6.74% to 2,112.03), outperformed the Sensex. Among the major Sensex losers were, Jaiprakash Associates (down 16.27% to Rs 76.15), Reliance Infrastructure (down 19.25% to Rs 515.30) and Reliance Communications (down 21.02% to Rs 237.40) slumped. India's largest private sector company by market capitalization and oil refiner Reliance Industries slumped 7.43% to Rs 1,527. The stock recovered from the session's low of Rs 1,480. India's largest drug maker by sales Ranbaxy Laboaratories spurted 4.71% to Rs 292.40 after the US government withdrew a motion against Ranbaxy Laboratories after the drugmaker submitted a comprehensive set of audit documents to the authorities. India's biggest private sector bank by net profit ICICI Bank lost 19.71% to Rs 364.10. The stock came off session's low of Rs 326.70. India's second-largest bank, has very small exposure to the global financial crisis and there should be no concerns about liquidity, its joint managing director Chanda Kochhar said. Her comments came after the bank's stock fell as much as 28% today as panic-stricken investors dumped the shares in a weak market. India's second biggest private sector bank by market capitalisation HDFC Bank was down 5.35% at Rs 1,046.35, off the session's low of Rs 975.55. India's largest state-run lender by market capitalisation State Bank of India rose 2.27% to Rs 1,352.16, off a low of Rs 1181.15. IT stocks recovered after earlier fall on Infosys's weak outlook. India's second largest IT exporter by sales Infosys fell 2.2% to Rs 1,226.70. The stock recovered from the session's low of Rs 1,040. Infosys said it has revised the US dollar guidance downwards to reflect the current economic situation and the drastic depreciation of major global currencies against the US dollar. Infosys expects earnings per American depository share at $2.23 for the year ending March 2009, a growth of 12.6%. At the time of Q1 June 2008 results, the company had forecast earnings per American depository share at $2.31 to $2.35 for the year ending March 2009, a growth of 16.7% to 18.7%. Infosys consolidated net profit rose 9.9% to Rs 1432 crore on 11.6% growth in sales to Rs 5418 crore in Q2 September 2008 over Q1 June 2008. The company announced the results before trading hours today, 10 October 2008. Tata Consultancy Services, Wipro and Satyam Computer Services tumbled between 4.32% to 6.69%. The Indian rupee fell to a record low past 49.07 per dollar today as the spreading global financial crisis hurt sentiment in Asian stock markets, leading to concerns of a large outflow of foreign funds from India. IT exporters benefit from the weaker rupee as they derive most of their revenues in dollars. India's largest steel maker by sales Tata Steel slumped 14.49% to Rs 287.50. ArcelorMittal SA and Tata Steel have reportedly shown interest in mining coal in collaboration with Coal India from the latter's 18 abandoned underground mines. India's largest aluminum maker by sales Hindalco Industries slumped 11.18% to Rs 80.65 even as the company said IGH Holdings, a promoter of the company has acquired 8.94 lakh shares or 0.05% of equity capital of the company by way of open markets purchases. Tata Power Company declined 3.72% to Rs 774.70. The company is reportedly exploring the option of raising its stake in Indonesia's Bumi Resources Tbk, the world's second largest coal company, after a sharp erosion in the value of the shares pledged by Bumi's parent firm, Bakrie & Brothers, with various lenders. ICICI Bank clocked the highest volume of 1.16 crore on BSE. Reliance Natural Resources (94.27 lakh shares), Apollo Tyres (85.85 lakh shares), IFCI (85.41 lakh shares) and Jaiprakash Associates (83.93 lakh shares) were the other volume toppers in that order. ICICI Bank clocked the highest turnover of Rs 428.25 crore on BSE. Reliance Industries (Rs 325.90 crore), Bharti Airtel (Rs 283.21 crore), Reliance Capital (Rs 230.99 crore), State Bank of India (Rs 186.57 crore) were other turnover toppers in that order. Sintex Industries dropped 13.85% to Rs 195.70, even as the company reported 62.54% growth in net profit to Rs 68.24 crore in Q2 September 2008 over Q2 September 2007. Era Infra Engineering slipped 7.24% to Rs 75.55, even as the company said its joint venture company has bagged a contract from Airport Authority of India for construction of a new terminal at Devi Ahilya Bai Holkar Airport, Indore Aurobindo Pharma declined 7.56% to Rs 195, even as the company said it has received US Food & Drug Administration approval to manufacture and market Cyclobenzaprine hydrochloride tablets in multiple strengths. Cairn India plunged 11.38% to Rs 151.40, on reports the Rajasthan government is yet to grant the crucial Right of Use (ROU) to Cairn India for the part of the pipeline that will pass through the state. Ashok Leyland tumbled 8.01% to Rs 22.40 at 11:41 IST on BSE, after the company reported 14.57% fall in total sales to 6,186 units in September 2008 over September 2007. JSW Steel rose 1.42% to Rs 296.80, having recovered from a 52-week low of Rs 244, after the company posted 14% growth in net crude steel production to 10.01 lakh tonnes in Q2 September 2008 over Q2 September 2007. Biocon slipped 2.44% to Rs 134.15, even as the company said on Friday, 10 October 2008, its joint venture company NeoBiocon has launched Arbaxane in United Arab Emirates for the treatment of breast cancer. India's industrial production rose at a dismal 1.3% in August 2008 compared to a 10.9% growth in August 2007. Manufacturing grew a poor 1.1% in August 2008 versus 10.7% growth in August 2007. Consumer durables production rose 5.1% in August 2008 verses 6.2% growth in August 2007. Capital goods prodcution rose 2.3% in August 2008 verses 14.7% growth in August 2007. Meanwhile, industrial production growth for July 2008 was revised upwards to 7.4% from 7.1%. European markets which opened after Indian market were sharply lower. France's CAC 40, Germany's DAX and UK's FTSE 100 were down between 7.49% to 8.41%. Overnight, US stocks slumped more than 7% on fears that credit markets would stay frozen, paralysing the world's financial system and slowing economies to a standstill. US light crude for November delivery fell $4.16, or 4.8%, to $82.43 a barrel today, 10 October 2008, just above its earlier low of $82.00, in its biggest two-week decline since the start of the Iraq war in 2003. Oil slipped on fears that market turmoil will send demand for fuel slumping. The Indonesian stock exchange suspended trading for a third day, and exchanges in Bangkok and Vienna halted trading after shares fell more than 10 %, triggering circuit-breaker rules. In Moscow, the Russian Duma, or Parliament, approved a financial sector bailout package valued at more than $80 billion. Trading on Russian stock exchanges was suspended until further notice. </DIV>

Sensex off 48% in calendar 2008

There is fear and panic on the stock markets. The bourses suffered heavy losses today on the back of global sell-off and on data showing di...

Domestic bourses to track weak global stocks

<DIV> <TABLE align='"center"'> <TBODY> <TR> <TD align='"center"'></TD></TR></TBODY></TABLE>A fresh setback in global markets will result in a further fall on the domestic bourses today, 8 October 2008. Investors are unlikely to build large positions as the market remains closed tomorrow, 9 October 2008, on account of Dasara. Some of the equipment makers for the nuclear power plants may rise on reports India and United States are likely to sing the civilian nuclear deal on Friday, 10 October 2008. US stocks plunged on Tuesday, 7 October 2008, amid escalating worries about credit markets and the financial sector. The Dow lost more than 500 points and all the major indexes slid more than 5 percent. The Standard & Poor's 500 index saw its first close below 1,000 in five years. Steps by the Federal Reserve to reinvigorate the dormant credit markets ultimately weren't enough to calm nervous investors. Key benchmark indices in Asia were down by between 2.9% to 5.7% today, 8 October 2008, even as central banks across Asia stepped up to offer more support to commercial banks on to try to ease painful pressure on funding costs from a vicious global credit squeeze.. The troubles that started with an overheated housing market in the US have infected financial markets around the world, making banks fearful of lending to other banks, let alone to businesses and consumers. Back home, after Monday's (6 October 2008) heavy slide, the market witnessed highly choppy trade on Tuesday, 7 October 2008. While the 30-share BSE Sensex slid 106.46 points, the S&P CNX Nifty rose 4.25 points. Foreign institutional investors (FIIs) have been pulling out their investments from India and other emerging markets to shore up resources to beat the global liquidity crunch. In India, FIIs sold shares worth a net Rs 8278.10 crore last month. The outflow has reached Rs 39159.10 crore in calendar year 2008 (till 6 October 2008). As per provisional data released by the stock exchanges, foreign funds sold worth a net Rs 680.42 crore on Tuesday, 7 October 2008. Domestic funds bought shares worth a net Rs 548.29 crore. Meanwhile, with the end of third quarter of the calendar year 2008 on Tuesday, 30 September 2008, hedge fund are bracing for heavy redemption amid US financial sector crisis which has already spread to Europe. Investors in hedge funds are usually allowed to exit funds only on the final day of the financial quarter. Large-scale investor redemption in hedge funds may trigger further selling by foreign funds in India. Hedge funds mainly operate through the participatory notes route in India. However, there is no data available on the quantum of hedge funds' investment in India. The barometer index is down 8,591.75 points or 42.35% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 9,511.53 points or 44.85% below its all-time high of 21,206.77 struck on 10 January 2008. Meanwhile, as per reports, United States and India plan to sign a potentially lucrative agreement on Friday, 10 October 2008, to open up nuclear trade between the two countries for the first time in three decades. The pact will provide India with access to US nuclear fuel, reactors and technology, overturning a ban on such trade instituted after India first conducted a nuclear test in 1974. </DIV>

Domestic bourses to track weak global stocks

A fresh setback in global markets will result in a further fall on the domestic bourses today, 8 October 2008. Investors are u...

Daily News Roundup - Oct 8 2008

<DIV>ONGC-Mittal Energy plans to set up its first refinery in Nigeria with an investment of ~US$4bn. (ET) Tata Group to set up Mother Plant of Nano car in Sanand in Gujarat. (DNA) Bharti Airtel to launch its DTH services in 62 cities from October 9, 2008. (FE) RNRL to produce sections of Reliance MoU in High Court today. (BL) Infosys is looking to expand its consulting business through acquisitions. (BL) IOC gets a credit allowance of Rs1.5bn from New Delhi for uninterrupted supply of petroleum products to Kathmandu. (FE) Kumar Mangalam Birla, promoter has increased his stake in Hindalco to 31.59%. (Mint) Tata Sons sells 1% stake in TCS for Rs7.01bn. (ET) IVRCL Infrastructure secures order worth Rs4.99bn from Andhra Pradesh Government. (FE) United Spirits plans to offer 500 shares for each acre to grape growers. (BL) NHPC defers IPO till market conditions improve. (ET) United Phosphorus plans to spin off its fledgling toxic gas detection instrument business. (Mint) ITC's Wills Lifestyle to open 50 more outlets in next two years. (BL) ICICI Bank, Dish TV launches interactive banking service. (Mint) Spanco and Omnia BPO to form 50:50 JV for domestic BPO. (ET) Opto Circuits drops plans to acquire company in Europe. (Mint) Monnet Ispat plans to enter service sector and provide total solution for setting up coal washeries. (BL) Tata Group to set up agri, marine biology research institute. (ET) M&M to bring its car service business in Pune in next 12-15 months. (FE) Everonn Systems has bagged Rs68.5mn project from Nagpur Municipal Corporation. (FE) GVK Power & Infra divests entire stake in GVK Aviation. (FE) Essar Oil signs a product purchase and infrastructure sharing MoU with IOC. (BL) Bajaj Electricals plans to set up lighting unit in Saudi Arabia in next 15-18 months. (FE) Bajaj Electricals secures Rs90mn Bandra Worli Sea-Link order. (BL) Consolidated Construction Consortium is planning to enter into nuclear power projects sector. (ET) Consolidated Construction Consortium secures Rs12.12bn order from Airport Authority of India to expand Chennai airport terminal. (BL) Strides Arcolab gets USFDA approval for its oral dosage manufacturing unit in Bangalore. (DNA) REcap partners LLC to acquire HOV services for ~Rs9.5bn. (BS) Marksans Pharma is looking for more acquisition targets in US and Europe. (BL) Country Club launches new clubbing concept to increase its presence globally. (FE) Essar Group may drop plan to set up wind-turbine JV. (BS) Provogue India plans to foray into food and grocery retailing sector. (BS) Premji Invest picks up 3% stake in NSE for US$100mn. (BS) Economic Front Page The Government asks states to exempt local taxes on coal transfers by JV firms from captive coal blocks. (ET) Exploration, refiners and miners gets permission to raise US$500mn per year from ECBs. (ET) The Ministry of Shipping to propose on the revival of the ship building subsidy to the cabinet in the next week. (FE) GSM based mobile operator's approaches government to seek permission to separate their non-voice revenues. (BL) The Government is considering overseas dollar bond float to ease Indian banks and companies access to liquidities. (BS) </DIV>

Daily News Roundup - Oct 8 2008

ONGC-Mittal Energy plans to set up its first refinery in Nigeria with an investment of ~US$4bn. (ET) Tata Group to set up Mother Plant of ...

Investor wealth eroded

<DIV>Amid the financial crisis in the US, Indian investors have witnessed an erosion of about Rs 2.3 lakh crore in their wealth in September, says a report. Domestic equity market continued to be battered following negative global cues with the benchmark Nifty registering a fall of about 10 % in the last month. "It is estimated that Rs 2.3 lakh crore of shareholders' wealth eroded in the background of the situation in the US financial markets," Crisil Research said in a report. On the contrary, the fall in the US markets was lower with the S&P 500 and Dow Jones both declining by around nine % and six %, respectively, while emerging markets lost around 18 % during the month. Pessimism in the financial markets following the filing for bankruptcy by Lehman Brothers, Merrill Lynch's sell-off, the bail out of AIG and perceived uncertainty around the US bail-out package added to investor fears. Investor sentiment was also affected on news of the possibility of Fortis filing for bankruptcy, indicating problems in the European financial markets as well, the report added. "The BSE Realty Index and the BSE Metal Index were the most severely affected during the month, dropping by 32 per cent and 25 %, respectively. Concerns over slowing demand in the real estate market due to a liquidity crunch and increased cost of funding weighed in on investor sentiment in the realty sector," Crisil Research Head-Equities Chetan Majithia said. </DIV>

Investor wealth eroded

Amid the financial crisis in the US, Indian investors have witnessed an erosion of about Rs 2.3 lakh crore in their wealth in September, sa...

Bullion metals continue to rise

<DIV>Gold gains more than $50 in the past two days Despite a relatively stronger dollar, bullion metals continued to rise and once again ended higher on Tuesday, 07 October, 2008. The yellow metal gained after the stocks at Wall Street continued to plunge on global economic worries thereby strengthening the yellow metal's demand as a safe haven for investment. Chances of another interest rate cut by Federal Reserve by at least 50 bps to 1.5% also imparted further shine on the yellow metal. Silver prices also gained today. Investors tend to seek safety in gold when the economy falls into turmoil. On Tuesday, Comex Gold for December delivery gained $15.8 (1.8%) to close at $882 an ounce on the New York Mercantile Exchange. In the past two days, gold has gained more than $50. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly since then. For the third quarter ended September, 2008, gold prices ended lower by 5.1%. It was the first quarterly loss for the yellow metal since the second quarter in FY 2007. Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. For first quarter prices gained 10.7%. This year, gold prices have gained 5.3% till date. On Tuesday, Comex silver futures for December delivery slightly rose 9.5 cents (0.8%) to $11.38 an ounce. Silver had ended month and quarter of September 2008 with a loss of 10%. It ended August with a loss of 2.4% and July 2008 with a gain of 3%. For the second quarter, it had gained a paltry 1.4%. Silver had gained 16% in Q1. Till date, silver has lost 24% this year. The metal also had gained for seven straight years. Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies. On the other hand, a lower dollar pushes up precious metal prices as their demand lessens as it becomes cheaper for traders holding other currencies. Gold has traditionally been used as a safe-haven asset against rising inflation. Investor sentiments are boosted by the fact that gold and silver are alternate sources of good investment in the face of declining dollar and rising energy prices and vice versa. At the currency markets on Tuesday, the dollar gained against the yen but remained under pressure after the Federal Reserve said it would buy commercial paper in an attempt to revive frozen credit markets and ease overall borrowing costs. The yen rallied against both the dollar and the euro as investors fled to safe-haven currencies on ongoing worries about credit markets and the impact of the financial crisis on institutions in the U.S. and Europe. The dollar index, which measures the U.S. unit against a basket of major currencies, remained under pressure, trading at 81.093, down from 81.300 in morning trade and 81.593 on late Monday. At the crude market on Tuesday, crude-oil futures closed higher to score their first gain in five sessions as prices bounced back after touching an eight-month low. Prices found support as traders looked for fresh indications on global energy demand and digested reports of renewed tension in the Middle East, but crude finished off the day's high as U.S. stocks weakened. Crude for November delivery rose $2.25, or 2.6%, to close at $90.06 a barrel on the New York Mercantile Exchange. Earlier this year, the weakening dollar and higher global demand for raw materials had led to records this year for commodities including gold. Gold reached a record in March as a U.S. housing slump and credit crisis spurred the Federal Reserve to slash borrowing costs. The Federal Reserve halted cuts to its target bank lending rate in April, after slicing it in seven steps to 2% from 5.25% in September. Gold had witnessed the greatest annual gain in twenty eight years by gaining $200/ounce (31%) in FY 2007 as lower interest rates had sent the dollar tumbling, and crude-oil prices rose to a record. Silver had climbed 16% in FY 2007. In 2006, silver had jumped 46% while gold gained 23%. At the MCX, gold prices for December delivery closed higher by Rs 177 (1.3%) at Rs 13,513 per 10 grams. Prices rose to a high of Rs 13,599 per 10 grams and fell to a low of Rs 13,192 per 10 grams during the day's trading. At the MCX, silver prices for December delivery closed Rs 157 (0.82%) higher at Rs 19,585/Kg. Prices opened at Rs 19,007/kg and rose to a high of Rs 19,585/Kg during the day's trading. </DIV>

Bullion metals continue to rise

Gold gains more than $50 in the past two days Despite a relatively stronger dollar, bullion metals continued to rise and once again ended h...