Sensex sheds 232 points on weak global markets

The market which plunged sharply in opening trade, tracking weak global cues, kept on recovering as the day progressed on value buying coupled with short covering. It settled near day’s high. Trading was marked by a high degree of volatility. All the indices on BSE except the BSE IT index settled lower. All the European indices were trading lower.

The wholesale-price-based inflation rose 4.45% in the week ended 28 July 2007 compared to 4.36% rise in the previous week.

India's industrial production in June 2007 grew at the slowest pace in eight months as interest rates at a five-year high curbed consumer spending. Production at factories, utilities and mines rose 9.8% from a year earlier, following a revised 10.9% gain in May 2007.

The BSE 30-share Sensex lost 231.90 points or 1.54% at 14,868.25. It opened with a sharp 466-point downward gap at 14,631.15 and slumped further to touch a low of 14,570.89. From here, it started recovering to hit a high of 14,901.31 at 15:20 IST.

The BSE Sensex oscillated in a range of 330.42 points today as compared to a gyration of 480.10 points on Thursday, 9 August 2007.

The S&P CNX Nifty declined 69.85 points or 1.59% at 4,333.35. It also recovered sharply from a low of 4239.20. The Nifty August 2007 futures settled at 4303, a discount of 30.35 points as compared to spot closing.

Sensex had slumped 207.83 points to 15100.15, on late sell-off yesterday, 9 August 2007 after European indices opened weak after BNP Paribas suspended redemptions from three funds citing problems in US subprime mortgages.

The market breadth also recovered sharply, but still was negative on BSE with 1,574 shares declining as compared to 1127 that advanced, while 58 remained unchanged.

The BSE Mid-Cap index was down 0.79% to 6,507.62 while the BSE Small-Cap index slipped 0.75% to 7,904.13

Among the sectoral indices, the BSE Capital Goods Index (down 0.90% at 12,768.35), BSE Health Care Index (down 1.37% at 3,601.09), BSE Auto Index (down 0.69% to 4,736.40) and BSE FMCG Index (down 0.88% to 1,903.05), ended down.

The total turnover on BSE amounted to Rs 5,196 crore as against to Rs 5,495.26 crore on Thursday, 9 August 2007. The NSE F&O turnover was Rs 48,868.82 crore as compared to Rs 55,930.24 crore on Thursday, 9 August 2007.

Among the 30-member Sensex pack, 22 slipped while 8 gained.

IT stocks staged a solid comeback from the day’s low. The BSE IT Index gained 0.85% at 4,774.13. The BSE IT index had declined 2.77%over the last one month to 9 August 2007. It had touched a 52 -week high of 5,611.33 on 19 February 2007 and a 52- week low of 3,983.83 on 9 August 2006.

India's fourth largest software exporter Satyam Computers surged 2.33% to Rs 478 on 8.68 lakh shares. It was the top gainer from Sensex pack. It recovered from low of Rs 452.15

Infosys Technologies gained 0.72% to Rs 1949.90, off the session’s low of Rs 1872 and Wipro rose 0.51% to Rs 480.45, off the day's low of Rs 455. TCS settled 0.37% lower to Rs 1142.30, after touching a low of Rs 1050

The Indian rupee was trading at 40.63 against the US dollar, weaker that as compared to yesterday's close of 40.53/40.54

India’s largest listed cellular services provider Bharti Airtel plunged 3.60% to Rs 838.10, on 3.82 lakh shares. It was the top loser from the Sensex pack. Bharti Airtel added 2.1 million cellular customers in July 2007, taking its user base to 44.8 million.

India’s largest private sector company Reliance Industries (RIL) lost 1.21% to Rs 1819.80 on 9.18 lakh shares. It moved in a band of Rs 1778 and Rs 1821.80. The Egyptian government said on Thursday, 9 August 2007, that Reliance Industries (RIL) will invest $10 billion in the oil refining, petrochemical and plastic industries in Egypt.

Oil & Natural Gas Corporation (ONGC) lost 2.94% to Rs 841. BSE Oil and Gas Index was down 1.71% to 7,755.96

India's largest commercial vehicle maker Tata Motors rose 0.85% to Rs 668.70. Tata Motors, India's top bus and truck maker, is looking to expand its auto sales in Southeast Asia and it plans to use Thailand as a manufacturing base.

Banking and financial shares were under selling pressure throughout the day. The BSE Bankex was down 2.52% at 7,773.71, and was the worst performer among the sectoral indices on BSE. The Bankex had touched a 52-week high of 8,531.80 on 20 July 2007 and a 52-week low of 4,882.74 on 8 August 2006.

India’s largest housing finance company Housing Finance Development Corporation (HDFC ) slumped 3% to Rs 1955.

ICICI Bank (down 2.84% to Rs 865), HDFC Bank (down 2% to Rs 1132) and SBI (down 2.58% to Rs 1607) also slipped.

Other bank stocks also declined. Kotak Mahindra Bank (down 3.62% to Rs 740), Oriental Bank of Commerce (down 1.56% to Rs 228.50), Punjab National Bank (down 2.63% to Rs 498.90), Bank of India (down 1.34% to Rs 242.50), Bank of Baroda (down 0.91% to Rs 295), Axis Bank (down 2.29% to Rs 593) and Allahabad Bank (down 1.64% to Rs 90) were trading weak.

NTPC (down 2.68% to Rs 165.10), and Reliance Communications (down 2.41% to Rs 523.80), were the other losers from Sensex pack.

Deepak Fertilisers (down 6.69% to Rs 95.55), ICSA India (down 9.44% to Rs 1654), Max India (down 6% to Rs 208.80), Lokesh Machines (down 9.28% to Rs 101.65) were the top losers from small-cap and mid-cap basket.

Atlanta (up 10% to Rs 280.40), ANG Auto (up 10.80% to Rs 230), Orbit Corporation (up 16.56% to Rs 524.70), Educomp Solutions (up 5.55% to Rs 2620), and Falcon Tyres (up 5% to Rs 146) surged.

Metal shares lost ground as global metal prices declined. Hindalco Industries (down 2.37% to Rs 152.30), Hindustan Zinc (down 2.36% to Rs 713), Sterlite Industries (down 3.47% to Rs 589), JSW Steel (down 1.80% to Rs 625), and Sail (down 0.86% to Rs 149) slipped.

Commodities futures from Shanghai to Tokyo, including copper and precious metals, fell sharply on global risk aversion. The BSE Metal Index declined 2.30% to 10,863.61

World's sixth-largest steel-maker Tata Steel shed 2.37% to Rs 637 on reports that the company would pay 50 basis points more on the $1-billion tranche with a seven-year tenure to fund the Corus deal.

Orbit Corporation was the most active counter on BSE with turnover of Rs 317.72 crore followed by IFCI (Rs 231.54 crore), and DLF (Rs 171.65 crore).

United Breweries jumped 4.10% to Rs 321.40 on high volumes of 30 lakh shares after two block deals of 13.51 lakh shares each were struck at an average price of Rs 301.37 per shares on BSE by 10:02 IST

Tube Investments rose 0.74% to Rs 61 after two block deals of 6 lakh shares each were executed at Rs 58.95 per share on BSE at 10:09 IST.

Tata Power Company was down 0.49% to Rs 686.10. It signed a contract with Toshiba Corporation for Turbine Generators for the first 4000 MW Ultra Mega Power Project at Mundra.

Jai Corp was locked at the 5% upper circuit of Rs 5580.45 after its board approved a 1:1 bonus issue. The scrip surged 71.02% from a recent low of Rs 3107.60 on 25 July 2007 to Rs 5314.75 on 9 August 2007 backed by the company’s decision to split and/or bonus issue.

Omaxe slipped 1.91% to Rs 343.25 after the National Stock Exchange (NSE) barred further F&O positions in Omaxe as 95% of marketwide limit was reached on Thursday, 9 August 2007.

Aditya Birla Nuvo was down 3.63% to Rs 1410 after the Gujarat High Court approved the scheme of amalgamation of Aditya Birla Insulators with the company. The unlisted firm, Aditya Birla Insulators is the largest Indian manufacturer of high voltage porcelain insulators. It is a subsidiary of Aditya Birla Nuvo.

Ahluwalia Contracts India rose 4.10% to Rs 572 on bagging construction contract worth Rs 688 crore for the Commonwealth Games 2010 Village Residential project from Emaar MGF Construction . The current order book value of the company stands at Rs 2748 crore.

Idea Cellular lost 2.33% to Rs 121.35. It gained 877,931 subscribers in July 2007, lifting its total users to 17 million.

Industrial Investment Trust had gained 1.90% to Rs 98.35 after NN Financial Services and Nimbus (India) made an open offer for 20% stake in the company at Rs 111 per share. The acquirers want to mop up 20,00,000 equity shares of Rs 10 each.

Drug maker Cadila Healthcare slipped 2.80% to Rs 340 despite reports that it is close to acquiring a mid-sized Spanish pharmaceutical firm for about $30 million.

Hindustan Copper advanced 4.70% to Rs 125.90 on reports it plans to enter gold mining in India and is scouting copper mines abroad. The stock jumped 20% in the past 4 trading session from Rs 99 on 3 August to Rs 120.25 on 9 August 2007. Meanwhile, recent reports suggest the Ministry of Mines had proposed a financial restructuring package worth Rs 637 crore for HCL's revival.

All the Asian indices tumbled today, 10 August 2007, following a rout in global markets as credit jitters flared up after a major French bank BNP Paribas froze three funds that invested in US subprime mortgages. Financial shares across the region were hit hard. Nikkei tumbled 2.37%.

Hong Kong's Hang Seng (down 2.88%), Taiwan's Taiwan Weighted (down 2.74%), Singapore's Straits Times (down 1.58%), Shanghai Composite (down 0.10%), and South Korea's Seoul Composite (down 4.20%) plunged.

US stocks fell yesterday, 9 August 2007, on deepening fears about a spreading credit crunch. The Dow Jonex Industrial Average fell 387.18 points, or 2.83%, to 13,270.68. The broader Standard & Poor's 500 index fell 44.40 points, or 2.96%, to 1,453.09. The Nasdaq Composite index fell 56.49 points, or 2.16%, to 2,556.49.

Oil prices were steady at above $71 on Friday, 10 August 2007, as investors watched for any further signs of distress caused by the US subprime mortgage sector crisis. US crude fell 5 cents to $71.54 a barrel. London Brent crude rose 11 cents to $70.32.