Auto, bank shares in focus ahead of monetary policy review

The market staged a sharp recovery in late trade on buying in banking and auto shares and in index heavyweights Reliance Industries and L&T. The market had declined sharply in afternoon trade due to fall in Asian markets. Volumes remained low for the second day in a row. Banking and auto shares were in focus ahead of the monetary policy review tomorrow, 29 January 2008.

European markets, which opened after Indian market were trading lower today. Asian markets, which opened before Indian market, settled lower today, 28 January 2008. US markets tumbled on Friday, 25 January 2008.

The BSE Sensex declined 208.88 points or 1.14% at 18,152.78. It opened with downward gap of 349.77 points at 18,011.89 and dipped further to touch a low of 17,443.29 in afternoon trade. At the day's low, the Sensex lost 918.37 points. Sensex hit a high of 18,213.21 in late trade. At the day's high, Sensex was down 148.45 points for the day.

The broader CNX S&P Nifty was down 109.25 points or 2.03% at 5,274.10. Nifty January 2008 futures were at 5,253.30, a discount of 20.80 points as compared to spot closing.

Turnover was low. BSE clocked a turnover of Rs 3901 crore as compared to Rs 5,221.62 crore on Friday, 25 January 2008.

Turnover in NSE’s futures & options segment rose to Rs 43395.88 crore as compared to Rs 39007.70 crore on Friday, 25 January 2008.

Though the market breadth was negative, it improved from earlier in the day. On BSE, 1844 shares declined as compared to 881 that advanced. 34 shares remained unchanged. In opening trade 1553 shares had declined as compared to 251 that advanced.

The BSE Mid-Cap index was down 0.43% to 7,986.68 while the BSE Small-Cap index was down 1.13% to 10,303.51. Both these indices outperformed the Sensex.

Most sectoral indices on BSE settled lower. BSE Bankex (up 1.24% at 11,521.22), BSE FMCG index (down 0.54% at 2,148.45), BSE Oil & Gas index (down 1.07% at 11,078.11), BSE Consumer Durables index (down 0.59% to 5,258.50), BSE Metal index (down 1.03% at 15,442.75), outperformed the Sensex

BSE Capital Goods index (down 1.99% at 17,116.36), BSE Health Care index (down 1.25% at 3,645.71), BSE Power index (down 1.50% at 3,912.66), BSE Realty index (down 4.54/% at 10,689.41), BSE PSU index (down 1.39% to 8,543.89), BSE Auto (up 1.72% at 4,926.14), BSE IT index (down 3.69% at 3,659.96) and BSE TecK index (down 3.67% to 3,299.84), underperformed the Sensex

Among the BSE 30-share Sensex pack, 21 declined. In morning trade, all the 30-members of Sensex pack were down.

Auto stocks staged a sharp comeback from early losses on value buying. India’s second largest bike manufacturer in terms of sales Bajaj Auto advanced 6.22% to Rs 2405. It was the top gainer from Sensex pack. It swung in a wide range of Rs 2101 and Rs 2490 in the day.

Maruti Udyog (up 4.38% to Rs 866) and Mahindra & Mahindra (up 2.79% to Rs 693), also posted gains.

Banking shares though trading with losses, recovered from early lows, ahead of Reserve Bank of India (RBI)’s quarterly monetary policy review scheduled on Tuesday, 29 January 2008. India’s largest commercial bank in terms of net profit State Bank of India slumped 4.25% to Rs 2302.90. The stock hit a low of Rs 2200 in early trade.

HDFC Bank was down 1.96% to Rs 1570, off day’s low of Rs 1440 while ICICI Bank gained 1.17% to Rs 1274, off day’s low of Rs 1201. As per media reports, a sharp cut in US interest rates last week has increased the possibility of a 25 basis points repo rate cut by Reserve Bank of India.

Development Credit Bank surged 7.69% to Rs 124), Syndicate Bank rose 6.97% to Rs 109, Yes Bank gained 5% to Rs 245 and Union Bank of India rose 2.46% to Rs 208.50.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) was down 2.07% to Rs 2555.50. It moved in a range of Rs 2440 and Rs 2591. 4.91 lakh shares were traded on the counter on BSE. As per reports RIL plans to foray in engineering, procurement and construction business to clock a turnover of Rs 5,000 crore in first year itself and double it in second year.

India’s largest private sector engineering company in terms of order book position Larsen & Toubro was down 1.55% to Rs 3830, off sharply from day's low of Rs 3675. It today reported 40.10% surge in net profit to Rs 481.79 crore on 53.48% rise in total income to Rs 6483.55 crore in Q3 December 2007 over Q3 December 2006. European markets opened lower.

Housing Development Finance Corporation (up 3.30% to Rs 2803), Reliance Energy (up 2.11% to Rs 2073), and ACC (up 2.55% to Rs 807.80), edged higher from the Sensex pack

India’s largest real estate developer DLF slipped 5.20% to Rs 896 on 2.78 lakh shares. It was the top loser from Sensex pack.

Ranbaxy Laboratories (down 5.10% to Rs 349.20), Bharti Airtel (down 4.87% to Rs 870.05), and Infosys Technologies (down 4.60% to Rs 1451), were the other losers from Sensex pack

Reliance group stocks dominated turnover charts with four out of five turnover toppers being from Reliance pack. Reliance Natural Resources was the most active counter on BSE with turnover of Rs 239.08 crore followed by Reliance Capital (Rs 178.76 crore), Reliance Energy (Rs 164.34 crore), Essar Oil (Rs 164.13 crore) and Reliance Petroleum (Rs 150.18 crore), in that order.

Reliance Natural Resources topped in terms of volumes on BSE clocking volumes of Rs 1.73 crore shares followed by Ispat Industries (1.48 crore shares), Reliance Petroleum (91.10 lakh shares), IFCI (76.25 lakh shares) and Essar Oil (74.80 lakh shares), in that order.

Ashok Leyland declined 2.67% to Rs 36.50 on reporting 14.2% rise in net profit to Rs 120.21 crore on 1.3% rise in net sales rose to Rs 1800.08 crore in Q3 December 2007 over Q3 December 2006.

VSNL declined 5.21% to Rs 526 on posting 93.3% decline in net profit to Rs 9.52 crore on 0.11% rise in total income 0.11% to Rs 1113.52 crore in Q3 December 2007 over Q3 December 2006.

JSW Steel declined 1.32% to Rs 954.70. It reported 9.38% fall in net profit to Rs 328.18 crore on 10.80% rise in total income to Rs 2,598.19 crore in Q3 December 2007 over Q3 December 2006.

Tata Tea rose 0.21% to Rs 795.10. It reported 37.5% fall in net profit to Rs 58.88 crore on 6.28% rise in total income to Rs 1189.65 crore in Q3 December 2007 over Q3 December 2006.

Welspun Gujarat Stahl Rohren rose 1.69% to Rs 505. As per reports it is in talks to acquire Remi Metals Gujarat, an integrated steel and seamless pipe maker, from the Saraf family.

ING Vysya Bank slipped 1.87% to Rs 312 despite reporting 198.3% surge in net profit to Rs 42.75 crore in on 42.10% rise in total income to Rs 546.44 crore in Q3 December 2007 over Q3 December 2006.

Nicholas Piramal India dropped 3.44% to Rs 302.90 after the company said on Friday, 25 January 2008, it has signed a memorandum of understanding with Pierre Fabre Laboratories to collaborate on oncology research.

Glenmark Pharmaceuticals India gained 2.43% to Rs 511. The company today said it has received US Food and Drug Administration approval for its state-of-the-art semi-solids manufacturing plant at Baddi, Himachal Pradesh.

Key benchmark indices in United Kingdom (down 1.82% to 5762.40), Germany (down 1.69% to 6,701.35) and France (down 2.17% to 4,772.35) slipped

Asian markets settled lower today, 28 January 2008. Hong Kong's Hang Seng (down 4.25% at 24,053.61), Japan's Nikkei (down 3.97% at 13,087.91), Taiwan's Taiwan Weighted (down 3.28% at 7,485.79), Singapore's Straits Times (down 4.81% at 3,007.54), China’s Shanghai Composite (down 7.19% to 4,419.29) and South Korea’s Seoul Composite (down 3.85% at 1,627.19), edged lower.

US markets declined on Friday, 25 January 2008 led by financial companies, on concern that banks will be saddled with more credit market losses and the Federal Reserve won't cut interest rates enough to stimulate growth. Dow Jones industrial average slipped 171.44 points or 1.38% to 12,207.17. The Nasdaq Composite lost 34.72 points or 1.47% to 2,326.20.

Asian stocks had surged on Friday, 25 January 2008 led by several factors including strong corporate sentiment in Germany and a return of some confidence in the US economy after solid employment data and a congressional fiscal package. The Bush administration's fiscal package includes $150 billion of tax rebates and business incentives meant to prevent a slowdown in the country's economy.

India's wholesale price index rose 3.83% in the 12 months to 12 January 2008 marginally higher than the previous week's rise of 3.79%, government data showed on Friday, 25 January 2008. The annual inflation rate was 6.15% during the corresponding week of the previous year.

Crude oil prices dropped on Monday, 28 January 2008 with the light, sweet crude for March delivery sliding 63 cents to $90.08 a barrel in electronic trading on the New York Mercantile Exchange in Singapore. Brent crude fell 50 cents to $90.40 a barrel on the ICE Futures exchange in London.