Market loses ground on FII sales

The market lost ground as foreign investors continued to withdraw funds from Indian markets amidst growing unease over US economic outlook and weakening credit markets in the US. Housing sector slump in United States coupled with weak dollar and surging oil prices weighed on global markets.

The Japanese yen strengthened to a two-year high against the dollar and also gained against the euro as investors reversed carry trades, where they borrow yen to buy high-yielding but risky assets.

Crude oil prices climbed back above $97 a barrel in thin trade on Friday, 23 November 2007 buoyed by the unrelenting decline in the US dollar. London Brent crude rose 35 cents to $94.85 a barrel, while US light crude for January delivery stood at $97.35 a barrel.

The 30-share BSE Sensex fell 845.49 points or 4.29% to 18,852.87 in the week ended Friday, 23 November 2007. The broader S&P CNX Nifty fell 298.25 points or 5.04% to 5608.60.

The BSE Mid-Cap index fell 3.33% to 8,228.50, while the BSE Small-Cap fell 2.02% to 10,171.43.

On Monday, 19 November 2007, the 30-share BSE Sensex lost 64.53 points or 0.33% at 19,633.36. The broader CNX S&P Nifty was up 0.8 points or 0.01% at 5,907.65. The market lost ground in late trade as index heavyweight Reliance Industries dropped and ITC slipped.

On Tuesday, 20 November 2007, the market slipped deep into the red in late trade as IT and metal stocks tumbled. The 30-share BSE Sensex lost 352.56 points or 1.8% at 19,280.80. The S&P CNX Nifty ended down 126.75 points or 2.15% to 5,780.90.

On Wednesday, 21 November 2007, the 30-share BSE Sensex lost 678.18 points or 3.52% at 18,602.62. At day’s low of 18,515.30 Sensex had lost 765.50 points. The broader CNX S&P Nifty was down 219.85 points or 3.8% at 5,561.05.

On Thursday, 22 November 2007, the market bounced back in late trade as banking and auto stocks jumped amidst volatile trade. The Sensex ended down 76.30 points or 0.41% at 18,526.32. The S&P CNX Nifty ended 41.7 points or 0.75% lower at 5,519.35.

On Friday, 23 November 2007, the market shrugged off blasts in Uttar Pradesh and galloped in late trade on a volatile day of trading. It snapped the last six day losses by posting decent gains today. The 30-share BSE Sensex rose 326.55 points or 1.76% at 18,852.87. The S&P CNX Nifty rose 89.25 points or 1.62% to 5,608.60.

The BSE Bankex fell 5.35% to 10,414.36 in the week ended Friday, 23 November 2007. ICICI Bank fell 6.49% to Rs 1140.35 in the week, State Bank of India declined 3.20% to Rs 2251.20 and Axis Bank fell 4.58% to Rs 929.95.

The BSE Capital Goods index fell 6.43% to 19,316.12 in the week. Larsen & Toubro fell 6.29% to Rs 411.50, Bharat Heavy Electricals (Bhel) dropped 8.73% to Rs 2543.20 and Jaiprakash Associates gained 6.93% to Rs 1625.95.

The BSE IT index declined 3.41% to 4,017.10. Infosys Technologies fell 4.03% to Rs 1558, Wipro fell 3.55% to Rs 442.05 and TCS declined 2.26% to Rs 985.50.

The BSE Power index fell 6.74% to 4,282.35. Reliance Energy declined 5.51% to Rs 1725.10, Neyveli Lignite fell 0.60% to Rs 214.30, Power Grid Corporation of India fell 2.92% to Rs 151.20 and NTPC slumped 10.48% to Rs 236.60.

Financial services provider Religare Enterprises debuted on 21 November 2007. The stock debuted at Rs 323.75, a premium of 75% over the IPO price of Rs 185. The stock settled at Rs 521.70 on BSE on that day, a premium of 182% over IPO price.

Varun Industries, a Mumbai-based exporter of stainless steel kitchenware, debuted on exchanges on 22 November 2007. The stock debuted on BSE at Rs 105, a 75% premium compared to its issue price of Rs 60. It ended at Rs 112.65 on BSE, a premium of 87.75% over IPO price.

Allied Computers International, a Mumbai based IT hardware company, debuted on BSE on Friday, 23 November 2007 at Rs 21, a 75% premium compared to its issue price of Rs 12. It settled at Rs 37.70 on BSE, a premium of 214.16% over IPO price.

Barak Valley Cements, which manufactures various grades of ordinary portland cement, debuted on BSE on Friday, 23 November 2007 at Rs 65, a 54.76% premium over IPO price of Rs 42. It settled at Rs 56.05 on BSE, a 33.45% premium compared to IPO price.

Rathi Bars, which manufactures cold twisted deformed (CTD) steel bars and thermo-mechanically treated (TMT) steel bars, debuted on BSE on Friday, 23 November 2007 at Rs 38, an 8.57% premium over IPO price of Rs 35. It settled at Rs 31.90 on BSE, an 8.85% discount as compared to IPO price.

A large number of foreign investors want to register in India to participate in the booming stock market, Securities & Exchange Board of India (Sebi) chief M. Damodaran, told a business conference on Wednesday, 21 November 2007. He said a number of FIIs have approached Sebi for registration in the past one month.

India's wholesale price index rose 3.01% in the 12 months to 10 November 2007, below the previous week's rise of 3.11%, government data released on Friday, 23 November 2007, showed. The annual inflation rate was 5.39% during the corresponding week of the previous year