Indian Stock Market Post Session Report, Dated 19/01/2010
After the yesterday’s gains, the domestic market today plunged sharply to close in red terrain on intense profit booking. Depressing cues from the European markets weighed on the sentiments. Concern ahead of a flurry of US corporate earnings over the next few days also contributed to the downward journey. Benchmark indices exhibited volatility and moved between positive and negative zone earlier during the trading session. However, stocks recovered a bit during mid trade along with rise in US index futures. Meanwhile, Barclays Capital said that the inflation is likely to rise to at least 9% by March, prompting the central bank to raise the cash reserve ratio by 50 basis points. BSE Sensex ended below 17,500 level and NSE Nifty ended below 5,250 mark.
Market opened on flat note today tracking mixed cues from Asian markets. The U.S. markets were closed on Monday in observance of Martin Luther King Jr. Day. Further, Indian benchmark indices turned volatile and continued to trade weak on sustained selling over the counters. The profit booking across the selective indices led the benchmark indices to tumble down further. The investors were taking calculative steps to book their positions. However, market managed to gain some ground during afternoon trade tracking gains in US index futures, before slipping again. Going ahead, stocks extended losses and nosedived during final trading backed by strong selling pressure due to negative global cues. From the sectoral front, most of the selling was observed in Realty, IT, Pharma, Oil & Gas, Teck and Power stocks. BSE Midcap and Smallcap indices also remained under pressure. However, Consumer Durable and Bank stocks remained in limelight as witnessed most of the buying from these baskets.
Among the Sensex pack 23 stocks ended in red territory and 7 in green. The market breadth indicating the overall health of the market remained negative as 1828 stocks closed in red while 1112 stocks closed in green and 54 stocks remained unchanged in BSE.
The BSE Sensex closed lower by 155.02 points or (0.88%) at 17,486.06 and NSE Nifty ended down by 49.20 points or (0.93%) at 5,225.65. BSE Midcap and BSE Smallcap closed with losses of 44.84 and 50.69 points 7,045.91 and 8,976.09 respectively. The BSE Sensex touched intraday high of 17,664.86 and intraday low of 17,463.78.
Losers from the BSE Sensex pack are ACC Ltd (3.09%), Hindalco (2.63%), TCS Ltd (2.38%), Grasim Industries (2.34%), RCom (2.02%), JP Associates (1.87%), HDFC (1.86%), DLF Ltd (1.82%), Herohonda Motors (1.63%), Sun Pharma (1.62%), Infosys (1.60%), NTPC (1.60%) and M&M Ltd (1.52%).
Gainers from the BSE Sensex pack are BHEL (0.86%), SBI (0.76%), HDFC Bank (0.61%) and Sterlite Industries (0.24%).
On the economic front, Barclays Capital said that the inflation is likely to rise to at least 9% by March as prices of food and manufactured goods are on the upswing, prompting the central bank to raise the cash reserve ratio by 50 basis points.
On the global markets front, the Asian markets that opened before the Indian market, ended mixed. Shanghai Composite, Hang Seng and Singapore’s Straits Times ended higher by 9.78, 217.97 and 0.90 points at 3,246.87, 21,677.98 and 2,912.92 respectively. However, Nikkei 225, Seoul Composite and Taiwan Weighted lost 90.18, 1.56 and 88.92 points at 10,764.90, 1,710.22 and 8,249 respectively. Online revenue generated in China increased by more than 30% to 74.3bn yuan ($10.9bn) in 2009, a research firm has said.
European markets, which opened after the Indian market, are trading negative. In Paris, CAC 40 is lower by 37.77 points at 3,939.69. Going ahead, in Frankfurt DAX index is down by 58.83 points 5,59.72 and in London FTSE 100 trading with losses of 59.61 points at 5,434.78.
The BSE Realty index ended at 4,006.91 lower by 71.25 points or by (1.75%). The main losers were Sobha Dev (3.88%), Peninsula Land (3.41%), Unitech Ltd (2.90%), Ansal Prop (2.51%) and Anant Raj (2.35%).
The BSE IT index was at 5,342.79 down by 91.25 points or by (1.68%). The main losers were Aptech Ltd (2.92%), Moser Bayer (2.59%), Patni Computer (2.53), TCS Ltd (2.38%) and Rolta India (1.97%).
The BSE Teck index was at 3,365.41 down by 52.70 points or by (1.54%), as HT Media (6.19%), Zee Entert (5.45%), Zee News (4.15%), Himachal Futur (3.95%) and UTV Software (3.27%) ended in red.
The BSE Pharma index was at 5,062.98 lower by 79.19 points or by (1.54%). The main losers were Sun Pharma (4.89%), Dr Reddy’s Lab (3.44%), Apollo Hosp (3.21%), Orchid Chem (1.97%) and Wockhardt (1.91%).
The BSE Oil & Gas index closed at 10,531.69 down by 156.68 points or by (1.47%). The main losers were Gail India (3.01%), HPCL (2.85%), Indian Oil Corp (2.09%), BPCL (2.09%) and RNRL (1.98%).
The BSE Consumer Durable index 3,993.92 up 29.46 points or by (0.74%). The main gainers were Rajesh Exports (2.66%), Gitanjali Gems (2.22%) and Titan Inds (1.78%). Losers are Videocon Inds (1.25%), and Blue Star (0.36%).
On the corporate front, ICICI Bank ended higher by 0.01%. The bank has raised its deposit rates on select maturities and by this it became the second bank to do so this month. The bank has raised the interest rate on deposits maturing in 270 days to less than one year by 25 basis points to 5.75% for deposits in the range of Rs 15 lakh to Rs 1 crore. The new rates are effective from January 8.
Essar Oil lost 1.01%. The company, which is negotiating a buy out with global oil major Shell to buy two of its European refineries, is scaling back on the local front. It has decided to delay the second expansion of its refinery at Vadinar in Gujarat. According to sources, lack of funds coupled with uncertainties in global refining markets is the main reasons for the company to shelve its expansion plans.
Escorts Ltd closed up by 0.81%. The manufacturer of tractor and farm equipment is planning to enter into manufacturing of railway wagons.
NTPC slipped by 1.60% despite report that it plans to set up about 6,000 megawatts of capacity by 2017 to generate electricity that will be sold at market rates to boost revenue.
Godfrey Phillips India surged 1.31%, as it has made its way into the pan masala segment. The company has launched Pan Vilas, a magnesium carbonate free chewing product. The company is targeting 5% share of the premium pan masala market in the first year of its launch.
NMDC spurted 5.66% on buzz that it is in talks with Arcelor Mittal, the world”s largest steel maker, to set up a joint venture steel plant in Karnataka.
HT Media deteriorated 6.19% despite net profit increased significantly 135.5% to Rs. 18.42 crore in Q3FY10 over Q3FY09.
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