84-point debacle

The market, seemingly, is tired after a sharp rally in the recent past. It ended in the red for the second straight day, as profit-booking continued. India’s premier index, the BSE Sensex, which has surged close to 40% during this calendar year, lost 84.15 points (0.64%), to settle at 13,072.51.

The market turned extremely volatile in the late-afternoon session of trade, slipping to a low of 12,950.07. However, it recovered later, as buying resumed. Its high for the day was 13,202.68, having oscillated around 253 points for the day.

The S&P CNX Nifty lost 21.45 points (0.56%), to 3,777.30.

The market-breadth, which was positive in the opening session, turned negative as smallcap and midcap stocks also were sold. On BSE, there were close to 2 losers for every single gainer. Only 881 shares advanced, against 1,1628 that declined. Just 64 shares were unchanged.

The BSE clocked a turnover of Rs 4,305 crore, which is lower compared to Rs 4,688 on Tuesday.

Among the 30-Sensex pack, 22 declined while the rest advanced.

Bike maker Hero Honda was the top loser, down 3.77% to Rs 715, on 2.16 lakh shares. It slipped to a low of Rs 705.45, after hitting a high of Rs 744 in early trade. Rising input costs and intense competition triggered investors to unload shares of two-wheeler firms. The costs of inputs such as nickel, aluminium, rubber and steel is going up. Bajaj Auto hiked prices of its popular motorcycle models `Platina’ and `Pulsar’. It has raised the price of Platina by Rs 500 at the ex-showroom level. It may be recalled that in September 2006, Bajaj had cut price of Platina by Rs 2,000 in the face of stiff competition from rivals. Stocks such as TVS Motor (down 5.16% to Rs 102) and Bajaj Auto (down 3.55% to Rs 2,625) lost.

Bank stocks witnessed rally from their lows, in the fag hours of trade. The BSE Bankex was the major gainer among sectoral indices, up 60.34 points (0.94%), to end at 6,488.04. ICICI Bank was the top gainer, up 2% to Rs 785. IndusInd Bank (up 5.20% to Rs 46.45), UTI Bank (up 2.87% to Rs 437.50), ICICI Bank (up 2% to Rs 785), ING Vysya Bank (up 1.71% to Rs 178) were the gainers among private sector banks. State-run banks also participated in the rally. SBI (up 1.76% to Rs 1124.50), Allahabad Bank (up 2.30% to Rs 91) and Bank of Maharashtra (up 1.31% to Rs 34.85) moved higher.

Software major Infosys advanced 1.07% to Rs 2,125 on a voume of 4.52 lakh shares. It had surged to a 52-week high of Rs 2,151 in early trade. The scrip rose for the second day in a row after Infosys' shareholders on Tuesday approved an issue of up to 30 million sponsored American Depositary Receipts (ADRs). Infosys' ADR had risen 1.1% to $52.26 on the Nasdaq on Tuesday, following this news.

Index heavyweight Reliance Industries (RIL) slumped 2.93% to Rs 1,252.50 on a volume of 22.32 lakh shares. It slipped to a low of Rs 1,240.30, while its high for the day was Rs 1,295.

Car major Maruti Udyog lost 0.82% to Rs 936.25, amid volatile trade following reports that the Ministry of Commerce and Industry rejected the automaker's plea for granting special economic zone (SEZ) status to its upcoming facility at Manesar.

Tata Motors (down 2.36% to Rs 799), Reliance Communications (down 1.82% to Rs 380) and HDFC (down 2.88% to Rs 1515) also slipped.

Among side-counters, Hyderabad Industries surged 20% to Rs 298, on a high volume of 6.90 lakh shares. Its low has been Rs 250.

Ashok Leyland surged 4% to Rs 46.20, on high volumes of 21.87 lakh shares on renewed buying.

UTV Software surged 6.55% to Rs 248.80, on high volumes of 13.45 lakh shares. The stock surged to a 52-week high of Rs 261.35. There were reports that Rupert Murdoch's News Corp is eyeing a sizeable stake in the company, which was later denied by the company.

KPIT Cummins lost 1.30% to Rs 591. The company’s board approved a 1:1 bonus issue and a stock-split from Rs 5 per equity share to Rs 2 per equity share.

KS Oils rose 2.61% to Rs 192.55, amid reports that private equity firms Actis and CLSA Capital, are in the race to buy 12-14% stake in the company.

Falcon Tyres jumped 10% to Rs 118.75, after India's market regulator ordered Wealth Sea to make an open offer to Falcon shareholders within 45 days.

Eveready Industries lost 0.20% to Rs 75.50, after rising to a high of Rs 78.80 on reports that it plans to raise product (battery) prices by 10 - 15% 1 December 2006 onwards, to counter rising prices of key input zinc.

Hindustan Zinc witnessed high volatility, moving in a range of Rs 1,008.90 and Rs 943.35. It closed 1.47% lower, at Rs 966.85 on a volume of 16.71 lakh shares. Zinc futures on the London Metal Exchange extended their rise, attaining a fresh record high of $4,525 a tonne, as short supplies and strong demand prompted funds to snap up the metal which is now up 137% so far this year.

Petron Engineering Construction lost 5% to Rs 168.70, despite bagging a contract worth Rs 15.50 crore from a firm in Kuwait.

Japan's Nikkei slipped 1.08% on Wednesday as investors sold Softbank Corp stock ahead of its earnings results, and due to caution before the outcome of US congressional elections. The Nikkei lost 177.67 points, to end at 16,215.74. The Hang Seng index extended its fall and was down 128.07 points (0.68%), at 18,811.24.

Most European markets were trading weak, the FTSE 100 declining 0.48% and the CAC 40 slipping 0.48%.

US stocks rallied on Tuesday, pushing the Dow Jones industrial average to an all-time high as investors bet mid-term elections will leave the government gridlocked, maintaining business-friendly policies. US stocks ended higher ahead of polling results, the Dow Jones rising 51.22 points (0.42%), to settle at 12,156.77. The Nasdaq Composite Index added 9.93 points (0.42%), to close at 2,375.88.

FIIs have been relentless in their support to the Indian market. As per provisional data, foreign funds were net buyers to the tune of Rs 316.66 crore on Tuesday (7 November).