Sensex sheds 687 points on sell-off in heavyweights

The market slumped for a fifth trading session in a row today in a broad-based decline. Reliance Industries (RIL), ICICI Bank and DLF plunged. All the sectoral indices on BSE were in the red. BSE oil & gas and realty indices were the worst hit in today's fall. Small-caps and mid-cap stocks sank. Ranbaxy Laboratories was the star performer in today’s trade. Cement pivotals, too, survived the fall.

The market breadth was weak. 25 out of 30 shares from the Sensex pack were in the red. Asian markets came off lower level during the course of the trading session, from early fall. Most of the European indices, which were bleak in early trade, turned green during the course of the day.

Annual inflation, based on the wholesale price index (WPI), moved up 3.79% in the week ended 5 January 2008 compared with 3.5% in the week ended 29 December 2007.

Oil Minister Murli Deora said on Friday, 18 January 2008 that any rise in retail prices of petrol and diesel would be minimal. The Group of Ministers (GoM) on fuel prices would meet again on Saturday, 19 January 2008 to discuss the fuel price hike. A meeting of Indian ministers, which was expected to recommend a rise in retail prices of petrol and diesel, ended on Thursday, 17 January 2008 without a decision.

The 30-share BSE Sensex fell 687.12 points or 3.49% to 19,013.70. The BSE Sensex lost 8.71% in the week ended on Friday, 18 January 2008.

Sensex opened with a negative gap of 121.21 points. Soon, by early afternoon the market managed to enter the positive territory and gain 14.96 points at the day's high of 19,715.78. But relentless selling pressure in the index heavyweights pulled the index down and the Sensex shed 770.40 points at day's low of 18,930.42 at the fag end of the trading session.

The broader CNX S&P Nifty fell 207.90 points or 3.52% to 5705.30. Nifty lost 7.98% in the week ended on Friday, 18 January 2008. Sensex lost 8.8% in the week.

The BSE Mid-Cap index dropped 4.78% to 8,893.71. The BSE Mid-Cap index lost 5.77% in the week ended on Friday, 18 January 2008. The BSE Small-Cap index lost 4.55% to 12,160.45. The BSE Small-Cap index 4.20% in the week ended on Friday, 18 January 2008. Both these indices underperformed the Sensex in today’s trade.

The market breadth was weak. On BSE, 2505 shares declined as compared to 362 that rose. 23 remained unchanged.

BSE clocked a turnover of Rs 8753 crore compared to Thursday (17 January 2007)'s Rs 8,471.87 crore.

Nifty January 2008 futures were at 5728.80, at premium of 23.50 points compared with spot closing of 5705.30.

The NSE futures & options (F&O) segment turnover was Rs 72852.64 crore, which was higher than Rs 67865.55 crore on Thursday, 17 January 2008.

India’a largest private sector firm by market capitalization and oil refiner Reliance Industries fell 6.57% to Rs 2799.50.

The BSE Bankex lost 5% to 11,372.41. It underperformed the Sensex. India’s largest private sector bank by assets ICICI Bank fell 5.78% to Rs 1245.45. The ICICI Bank stock shed 13.50% in the week ended Friday, 18 January 2008 after an earlier sharp surge on its plan to list four of its subsidiaries starting with its securities arm.

Kotak Mahindra Bank slumped 10.46% to Rs 1130.65, Canara Bank dropped 9.61% to Rs 317.80, Bank of India shed 9.21% to Rs 405.85, Bank of Baroda skid 6.49% to Rs 434m Axis Bank fell 4.04% to Rs 1112.75 and State Bank of India declined 2.08% to Rs 23.68.30.

The BSE Oil & Gas index fell 5.88% to 12,594.91. It underperformed the Sensex. ONGC fell 3.33% to Rs 1209.45, Essar Oil slumped 8.09% to Rs 271.35, Indian Oil Corporation slipped 7.58% to Rs 607, Aban Offshore skid 5.89% to Rs 4382.30, HPCL gave away 5.74% to Rs 310.95 and Reliance Natural Resources fell 5.23% to Rs 205.75.

The BSE Realty index slipped 5.81% to Rs 12,021.74. It underperformed the Sensex. DLF fell 7.37% to Rs 1,005.75, Ansal Properties & Infrastructure slumped 12.69% to Rs 311.75, Penland shed 11.49% to Rs 129.40, Housing Development & Infrastructure fell 10.57% to Rs 1246.65, Omaxe shed 6.33% to Rs 423.75 and Unitech fell 3.13% to Rs 474.85.

Among the Sensex losers, NTPC slipped 6.30% to Rs 239.55, HDFC Bank fell 4.33% to Rs 1575.85, Reliance Energy dropped 4.01% to Rs 2124.05, Reliance Communications fell 3.73% to Rs 702.15, Larsen & Toubro declined 3.62% to Rs 3930.10, Tata Steel slipped 3.49% to Rs 781.90, Tata Motors declined 3.35% to Rs 712.20, and Mahindra & Mahindra dropped 3.19% to Rs 728.40.

Among the Sensex gainers, Grasim Industries advanced 1.03% to Rs 3340.70, Ambuja Cements rose 0.88% to Rs 131.95, ACC gained 0.48% to Rs 864.60, Bharti Airtel moved up 0.24% to Rs 973.90, and Satyam Computers rose 0.04% to Rs 372.60.

India’s largest drug maker by sales Ranbaxy Laboratories soared 5.10% to Rs 386.65. The company reportedly said its profit might grow 25% this year driven by higher sales of treatments for infections, diabetes and AIDS in emerging markets. On Thursday, 18 January 2008 Ranbaxy reported an almost flat result in Q4 December 2007 with profits after tax at about Rs 188 crore, on a consolidated basis. Consolidated net sales for the quarter grew 5% to Rs 1,784 crore.

India's biggest cigarette maker by revenue ITC rose 2.07% to Rs 212.60. The company reported 15.79% rise in net profit to Rs 830.72 crore on 12.90% increase in sales to Rs 3595.39 crore. The company declared the results during market hours today.

India's biggest dedicated housing finance firm by revenue, Housing Development Finance Corporation (HDFC) fell 1.05% to Rs 2819. HDFC reported net profit of 82.54% rise in net profit to Rs 648.93 crore on 47.83% increase in sales to Rs 21,50.35 crore in Q3 December 2007 over Q3 December 2006. The sharp surge in net profit was due to one-off gains.

Lumax Industries slumped 11.03% to Rs 338.05 after the auto parts maker said its board would meet on 30 January 2008 to consider closing its Chennai unit and the sale of its assets.

Diversified firm Jaiprakash Associates rose 1.38% to Rs 418.95 on reports the company bagged the Rs 40,000 crore Ganga expressway project in Uttar Pradesh.

Engineering firm Artefact Projects fell 0.98% to Rs 174.90. The company said on Thursday, 17 January 2008 its board has approved raising upto Rs 30 crore through equity or debt.

Entertainment firm Pyramid Saimira Theatre rose 0.79% to Rs 454.80. The company said on Thursday, 17 January 2008 it will raise about $400 million (Rs 1,600 crore) from the global market by March 2008. The funds raised will be used to consolidate the company’s international businesses and pursue plans for global acquisitions and expansion.

Shipping firm Essar Shipping was locked at upper limit of 5% at Rs 232.45 on reports that the company may merge a group company Essar Oilfield Services with itself, hoping to increase its stock market value through the addition of this high-potential and fast-growing business.

Reliance Industries clocked the highest turnover of Rs 493.87 crore on BSE. Housing Development Finance Corporation (Rs 414 crore), Reliance Natural Resources (Rs 389.07 crore), Reliance Energy (Rs 320.49 crore) and ICICI Bank (Rs 221.42 crore), were the other turnover toppers on BSE in that order.

Ispat Industries reported highest volume of 1.24 crore shares on BSE. Reliance Petroleum (1 crore shares), NTPC (73.34 lakh shares), Spice Communications (45.43 crore shares) and IDBI (38.08 crore shares), were the other volume toppers on BSE.

Major European markets recovered after trading in red earlier in the day. In Europe, key indices in UK, and France were up by 0.28% to 1.32%. However, Germany’s DAX was down 0.07%

Asian markets reversed early losses on growing hopes for measures to boost the US economy from President George W. Bush. Key benchmark indices in China, Hong Kong, Taiwan, Japan and South Korea were up 0.35% to 1.02%. Bush told lawmakers on Thursday, 17 January 2008, he wants tax rebates for families and breaks for businesses to boost the struggling US economy.

US stocks fell sharply on Thursday, 17 January 2008, as news of a plunge in regional factory activity and a hefty loss at Merrill Lynch further clouded an increasingly dire view of the US economy. The Dow Jones industrial average plunged 306.95 points, or 2.46%, to close at 12,159.21, on Thursday. The Standard & Poor's 500 Index lost 39.95 points, or 2.91%, at 1,333.25. The Nasdaq Composite Index shed 47.69 points, or 1.99%, at 2,346.90.

In one of the strongest signals yet that the economy is at high risk of contracting, the Philadelphia Federal Reserve Bank said mid-Atlantic factory activity has slowed much more than expected to levels that typically signal recession.

Securities and Exchange Board of India (Sebi) on Thursday, 17 January 2008 proposed a price band for stocks on their market debut to curb sharp swings. The Sebi suggested a 25% price band on the day of listing for initial public offerings of up to Rs 250 crore.

A unit of rating agency Moody's said on Thursday, 17 January 2008 suggested that India's economy should expand 8% in 2008, slower than 8.8% last year, as tight monetary conditions dampen loan demand and creaky infrastructure hobbles growth.

A deep recession in developed economies will have an adverse impact on the Indian economy, C. Rangarajan the chairman of the prime minister's Economic Advisory Council said in a news conference on Thursday, 18 January 2008.