Sensex sheds 678 points on weak global markets

The market declined sharply in late trade. NTPC, Bharat Heavy Electricals, ITC, and Reliance Energy were major losers from Sensex. were major losers from Sensex. All the sectoral indices on BSE were in red. Capital goods, banking, power, metal stocks were major losers. Market breadth was weak. Profit taking was witnessed across the board as mid-cap and small-cap counters faltered.

Data showing heavy FII sales on Tuesday, 20 November 2007, weighed on the market sentiment. The sentiment was also impacted by media reports that the government is considering raising the securities transaction tax (STT), with one of the options being increasing the ceiling to 0.5%. Finance minister P Chidambaram could move an appropriate amendment to the Finance Act, 2007, in Parliament in the current winter session for raising STT, reports suggest.

Persistent worries about the impact of sub-prime mortgage defaults on US economy pulled stocks across Asia and Europe. 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.

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.

Foreign institutional investors (FIIs) were net sellers to the tune of Rs 4,201.14 crore in the futures & options segment on Tuesday, 20 November 2007. According to data released by the NSE, FIIs were net sellers of index futures to the tune of Rs 2,897.67 crore and bought index options worth Rs 35.34 crore. They were net sellers of stock futures to the tune of Rs 1,334.46 crore and sold stock options worth Rs 4.36 crore.

FIIs sold shares worth Rs 1072.10 crore in the cash market on Tuesday, 20 November 2007. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 463.95 crore on Tuesday, 20 November 2007, as per provisional data.

The market breadth was weak. On BSE, 614 stocks advanced, while 2,184 stocks declined and 29 stocks were unchanged. All the 30 stocks from the Sensex pack were in the red.

BSE clocked a turnover of Rs 7301 crore compared to Tuesday (20 November 2007)'s Rs 8,623.31 crore.

Nifty November 2007 futures were at 5,536.25, at a discount of 24.8 points as compared to spot closing of 5,561.05.

NSE’s futures & options (F&O) segment turnover was Rs 70,758.86 crore, which was lower than Rs 73,178.98 crore crore on Tuesday,20 November 2007.

The BSE Mid-Cap index declined 4.73% to 8,217.84. The BSE Small-Cap index declined 3.98% to 10,265.23. Both these indices underperformed Sensex.

BSE Bankex (down 4.99% to 10,227.71), BSE Consumer Durable index (down 3.97% to 5,119.74), BSE Capital Goods index (down 5.14% to 19,302.78), BSE FMCG index (down 4.28% to 2,103.82), BSE Metal index (down 6.11% to 16,253.59), BSE Power index (down 5.91% to 4,246.51), BSE Realty index (down 4.73% to 9,953.63) underperformed Sensex.

BSE Auto index (down 3.15% to 5,170.85), BSE IT index (down 1.65 to 3,987.66), BSE Oil & Gas index (down 3.34% to 11,730.99) outperformed Sensex.

Index heavyweight and India’s largest private sector firm by market capitalisation Reliance Industries declined 2.33% to Rs 2,722. The stock came sharply off session's high of Rs 2,800. As per reports, Reliance Industries (RIL) has signed production sharing agreement (PSA) for two exploratory blocks 34 and 37 located in the Jeza basin of eastern Yemen, taking its total number of overseas exploratory blocks to nine.

FMCG major ITC declined 5.95% to Rs 184.85. As per reports it is preparing for a series of acquisitions to strengthen its food business, the fastest growing segment among the new businesses under its umbrella.

Banking majors declined sharply. ICICI Bank (down 5.5% to Rs 1,003.10), HDFC Bank (down 2.98% to Rs 1,583), and State Bank of India (down 5.48% to Rs 2,154.65) edged lower.

Power stocks plunged. NTPC (down 8.03% to Rs 239.50), Tata Power Company (down 4.76% to Rs 1,159.25), Reliance Energy (down 5.65% to Rs 1,692.85), PowerGrid Corporation of India (down 7.7% to Rs 146.90) edged lower.

Capital goods stocks declined. Larsen & Toubro slipped 5.25% to Rs 4,108.60 on BSE, after the company said on Tuesday 20 November 2007 it had signed an agreement with Raytheon for the US defence major's multi-role fighter jet programme, besides co-operation in defence projects. Bharat Heavy Electricals (down 6.33% to Rs 2,486.10) and Suzlon Energy (down 6.66% to Rs 1,905.05) were other losers from capital goods sector.

Metal stocks declined for the second day in a row due to falling global metal prices. Sterlite Industries (down 7.65% to Rs 885.50), Hindalco Industries (down 4.94% to Rs 184.55), Steel Authority of India (down 6.89% to Rs 245.45) edged lower.

Tata Steel declined 4.37% to Rs 822. As per reports, Riversdale Mining, Tata Steel’s partner in Australia, has discovered around 1.2 billion tonnes of coal at northern Benga in the Moatize district of Mozambique which happens to be the world’s largest unexplored coal province.

IT stocks declined due to persistent worries about US economy. Wipro (down 2.7% to Rs 436.55), Satyam Computer services (down 1.56% to Rs 412), Infosys (down 1.04% to Rs 1,548.10) and Tata Consultancy Services (down 1.25% to Rs 948.50) edged lower.

India’s largest real estate developer by market capitalisation DLF declined 4.12% to Rs 870.50. Indiabulls Real Estate (down 6.94% to Rs 615.30) and Unitech (down 5.48% to Rs 359.35) edged lower.

ACC was down 0.48% to Rs 1,079.40, off session's low of Rs 1,050. The company said today, 21 November 2007, it had sold surplus assets, including land in Haryana state, for Rs 205 crore.

Religare Enterprises settled at Rs 521.70 on BSE, a premium of 182% over IPO price of Rs 185. It was listed on the bourses today, 21 November 2007.

Chambal Fertiliser & Chemicals declined 13.9% to Rs 64.40 and was the top loser from BSE's 'A' group shares. Dena Bank (down 11.52% to Rs 78.45), Escorts (down 11.6% to Rs 142.95), Gujarat Narmada valley Fertilisers Company (down 10.1% to Rs 174.85) and Neyveli Lignite (down 10.92% to Rs 185.60) were other major losers from A group.

Tata Teleservices Maharashtra declined 8.88% to Rs 46.20 and clocked the highest volume of 2.22 crore on BSE. Reliance Petroleum clocked the second highest volume of 1.93 crore and declined 2.09% to Rs 203.45. IFCI declined 10.87% to Rs 86.55 and clocked third highest volume of 1.85 crore shares. Reliance Natural Resources declined 9.84% to Rs 149.75 and clocked the fourth highest volume of 1.78 crore shares. Bellary Steels and Alloys declined 2.88% to Rs 5.06 and clocked the fifth highest volume of 1.54 crore shares.

Reliance Petroleum clocked the highest turnover of Rs 400.9 crore on BSE. Reliance Natural Resources (Rs 278.47 crore), Reliance Industries (Rs 270.54 crore), Reliance Capital (Rs 213.29 crore) and Reliance Energy (Rs 178.54 crore) were other major turnover toppers on BSE.

Among side counters, Inhouse Productions (up 72.81% to Rs 22.05), Orient information Technology (up 19.03% to Rs 19.45), Acrysil (up 19.93% to Rs 70.70), Dharani Sugars (up 18.59% to Rs 22.65) edged higher.

Rama Pulp & Paper (down 15.08% to Rs 38), SQL Star International (down 14.44% to Rs 44.45) and Chambal Fertilisers, Triveni Engineering (down 13.65% to Rs 129.05) and Chemicals (down 13.9% to Rs 64.40) edged lower.

European markets were weak. France’s CAC 40 (down 2.09% to 5,391.78), Germany’s DAX (down 1.91% to 7,484.65) and UK’s FTSE 100 (down 1.55% to 6,130.20) edged lower.

Asian markets fell today after the Federal Reserve said US economic growth would probably slow in 2008. Hong Kong's Hang Seng (down 4.15% at 26,618.19), Japan's Nikkei (down 2.46% at 14,837.66), Singapore's Straits Times (down 2.65% at 3,347.25), Taiwan's Taiwan Weighted (down 2.27% at 8,484.11), South Korea's Seoul Composite (down 3.49% at 1,806.99), edged lower.

Oil prices resumed their march toward $100 a barrel. Light crude for January delivery surged $3.39 to settle at a record $98.03 a barrel on the New York Mercantile Exchange.

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.