Market declines on weak global cues

Market traded in the red throughout the day’s trading session, tracking weak global markets. The volatility was high ahead of expiry of November contracts this Thursday (30 November), where open positions are quite large.

The 30-shares BSE Sensex lost 171.64 points (1.25%) to 13,601.95. It moved in a range of 13,577.38 and 13,691.12.

The S&P CNX Nifty lost 45.70 points (1.15%) to 3923.20.

The total turnover on BSE was Rs 4049 crore, which was lower as compared to Rs 4441 crore on Monday (27 November).

Market breadth was weak. 1072 shares advanced as compared to 1465 that declined on BSE. 83 remained unchanged. In early trade, the breadth was much weaker. The BSE Small-Cap index lost 45 points to 6,531.39 while the BSE Mid-Cap index declined 34.57 points to 5,651.21.

Among the Sensex pack, 25 declined while the rest advanced.

Frontline IT stocks were the worst hit on profit booking, with the BSE IT index declining the most among sectoral indices, by 2.43% or 125.69 points to 5044.49. Satyam Computers (down 2.91% to Rs 451), Wipro (down 2.27% to Rs 588) and Infosys (down 2.79% to Rs 2165) declined.

Majority of the Indian ADRs ended in the red on Monday in a weak US market. Infosys ADR lost nearly 3% to $51.98, Satyam Computer ADR shed 3.2% to $22.99 and Wipro ADR lost 1.9% to $15.25. Also the rising rupee against the US dollar added to investors’ concerns for IT companies which derive a lion’s share of their venue in dollar terms. The rupee hit a two-week high on Monday 27 November.

Other major losers from Sensex pack were NTPC (down 2.79% to Rs 149.65), Reliance Energy (down 3.12% to Rs 529) and Reliance Communications (down 3.25% to Rs 471).

Index heavyweight Reliance Industries (RIL) lost 0.28% to Rs 1248.25 on 10.30 lakh shares. It declined from its intra-day high of Rs 1279.95. There are reports that RIL will sell piped gas at discount to LPG.

Hero Honda was the top gainer, up 1.62% to Rs 745 on 6.64 lakh shares. The stock rose following reports that the government is considering cut in oil prices. An announcement regarding fuel prices will be made in parliament on Wednesday 29 November.

Grasim (up 0.65% to Rs 2711), SBI (up 1.37% to Rs 1294.10) and Gujarat Ambuja Cements (up 0.38% to Rs 143.70) were the other gainers.

The BSE Metal Index declined 1.7% to settle at 8,921.50 on selling pressure. Hindustan Zinc (down 4.73% to Rs 926.50), SAIL (down 3.05% to Rs 85.75), JSW Steel (down 2.65% to Rs 323.50), Sterlite Industries (down 1% to Rs 545), Hindalco (down 1.72% to Rs 176.65) and Tata Steel (down 1.42% to Rs 475.40) were among the losers.

Among the side counters Donear Industries jumped 6.28% to Rs 165 on high volume of 70.80 lakh shares while Amar Remedies surged 20% to Rs 63.15 on high volume of 29.82 lakh shares.

Godfrey Phillips surged 10% to Rs 1140.55, on reports that the company is planning to issue bonus shares to reward investors in the next few months and at a ratio of 4 shares for 1 held. However, at the fag end of the trading session, the company denied rumours of bonus issue and stock split.

Force Motors rose 0.80% to Rs 421 after the company’s board approved the transfer of assets and liabilities of the heavy commercial vehicles division to its subsidiary Man Force Trucks. The company also approved investment of Rs 100 crore as equity capital in this subsidiary.

IVRCL Infrastructures & Projects gained 0.41% to Rs 412.60 after the company bagged orders worth Rs 388 crore from the irrigation department of the Andhra Pradesh government. The orders will be executed along with its joint venture partners, the company said.

Sadbhav Engineering advanced 2.45% to Rs 494.20 and PBA Infrastructure gained 2.64% to Rs 142 after Sadbhav Engineering said its joint venture with PBA Infrastructure has secured a construction contract worth Rs 297 crore. Sadbhav has a 51% stake in the joint venture and PBA holds 49%.

Torrent Power (TPL) the umbrella company of the newly amalgamated generation, transmission and distribution businesses of the Torrent Group settled at Rs 70.70 on BSE on high volumes of 1.30 crore shares. The stock was listed at Rs 60 on BSE. The stock hit a low of Rs 55.50 and high of Rs 76.30. Three companies Torrent Power AEC (TPAL), Torrent Power SEC (TPSL) and Torrent Power Generation (TPGL) were merged in TPL as a part of a scheme of arrangement. TPL’s equity capital is Rs 472.44 crore with face value of Rs 10 each.

Natco Pharma rose 1.60% to Rs 118.05 after it launched Pemnat (pemetrexed) for treatment of lung cancer.

TVS Motor was down 1.25% to Rs 98.90. As per reports, the company plans to invest $100 million over the next 3 year to set up a production base in Indonesia.

Eicher jumped 5% to Rs 131.80, the maximum permissible level of the day, after the company said it is considering delisting from BSE and NSE. Eicher has put up a board meeting on 28 November to consider proposal received from Eicher Goodearth, the promoters to initiate a voluntary delisting of the shares of the company from BSE and NSE in accordance with the provisions of the SEBI (Delisting of Securities) Guidelines, 2003.

Ashok Leyland rose 0.92% to Rs 44.05 on reports that it has tied up with French Company for supply of armoured vehicle in India.

Mirc Electronics lost 0.92% to Rs 21.45 after its Q2 September 2006 net profit slipped to Rs 10.5 crore as compared to Rs 11.5 crore in Q2 September 2005. Net sales rose to Rs 399.5 crore (Rs 316.5 crore).

DMC Vaults jumped 10% to Rs 20 after the company said has agreed to acquire FSI for 4,50,000 square feet at Rs 100 per square feet for development and construction of residential flats at Alwar, Rajasthan.

Rasandik Engineering Industries jumped 12% to Rs 146.35 after Reliance Mutual Fund acquired 1.4 lakh shares on Monday in a block deal on BSE at Rs 120. The stock had risen 13.7% on Monday to Rs 130.65 boosted by the block deal. Foreign fund Melchior Indian Opportunities was the seller.

Oil prices rose in Asian trading hours on geopolitical worries and hopes that OPEC will make further cuts in production. The New York Mercantile Exchange's main contract, light sweet crude for January delivery, rose $0.17 to $60.49 a barrel. Brent North Sea crude for January delivery gained $0.16 at $60.60.

All the European and Asia/Pacific markets were trading with losses except New Zealand’s NZX 50 which was up marginally by 0.02%.

The Nikkei average edged lower by 0.19% on Tuesday as losses in Honda Motor Co. and other blue-chip stocks were mostly offset by gains in Softbank Corp. and recently battered stocks such as banks. The Nikkei closed down 30.12 points at 15,855.26

Hang Seng index declined sharply by 2.94% or 564.48 points to 18639.53

US stock indexes sank on Monday, registering their worst day in months, amid concern about Google Inc.'s valuation and doubts about holiday spending after a disappointing sales estimate from Wal-Mart Stores Inc. In addition, downward pressure on the dollar for a fourth straight day hurt demand for US investments, while a rise in crude oil prices above $60 a barrel added to concerns about consumer spending. The Dow Jones industrial average fell 158.46 points, or 1.29%, to end at 12,121.71. The Standard & Poor's 500 Index lost 19.05 points, or 1.36%, to finish at 1,381.90. The Nasdaq Composite Index slid 54.34 points, or 2.21%, to close at 2,405.92.

Mutual funds were net sellers for the second day in a row on Friday 24 November. Mutual funds sold shares worth a net Rs 212.73 crore on 24 November compared to their outflow of Rs 276.24 crore on 23 November.