Sensex sheds 458 points as Asian stocks tumble

The domestic bourses tumbled today on negative cues from the global markets. Asian markets, which opened before Indian markets, suffered setback as oil prices hit a record high above $100 a barrel on Tuesday, 19 February 2008. European markets, which opened after Indian markets, declined. The market breadth was weak. 26 stocks from the 30-share Sensex pack declined. Shares from auto, banking and real estate were the hit the most in today's market fall.

Crude oil slipped on Wednesday, 20 February 2008 after surging nearly 5% to a record above $100.10 a barrel a day ago amid an influx of fresh investor capital into the commodities sector and concerns that Organization of Petroleum Exporting Countries (OPEC) will not hike output next month. US crude slipped 61 cents to $99.40 a barrel. London Brent crude fell 68 cents to $97.88 a barrel.

The 30-share BSE Sensex was down 458.06 points or 2.53% at 17,617.60. Sensex plunged to a low of 17,505.56 in late trade. At the day’s low of 17,505.56, the Sensex lost 570.10 points.

The broader based S&P CNX Nifty was down 126.35 points or 2.39% at 5,154.45. Nifty February 2008 futures were at 5130, a discount of 24.45 points as compared to closing

The market breadth was weak: On BSE 1,917 shares declined as compared to 825 that advanced. 54 shares remained unchanged.

The BSE Mid-Cap index was down 1.25% to 7,589.39 and BSE Small-Cap index slipped 1.68% to 9,631.26. Both these indices outperformed the Sensex

The total turnover on BSE amounted to Rs 4791 crore as compared to Rs 6,176.69 crore on Tuesday, 19 February 2008

NSE’s futures & options turnover amounted to Rs 43987.02 crore as compared to Rs 36397.03 crore on Tuesday, 19 February 2008

The IPO of Rural Electrification Corporation (REC) was subscribed 2.72 times by 16:00 IST on the second day of the issue today, 20 February 2008. The price band for the IPO is Rs 90 to Rs 105. The issue closes on 22 February 2008.

All sectoral indices on BSE declined except BSE IT index which rose 0.21% to 3,857.83. The BSE Consumer Durables index (down 1.73% to 4,759.08), the BSE Auto (down 2.22% at 4,758.64), the BSE FMCG index (down 2.01% at 2,223.62), the BSE Health Care index (down 1.25% at 3,680.69), the BSE TecK index (down 1.01% to 3,305.88), the BSE Metal index (down 2.32% to 15,833.53), the BSE Oil & Gas index (down 2.22% to 10,884.00), the BSE Power (down 2.32% to 3,624.39), outperformed the Sensex.

The BSE Capital Goods index (down 2.80% at 15,932.87), the BSE Bankex (down 3.23% at 10,609.81), the BSE PSU index (down 2.77% to 8,299.70), the BSE Realty index (down 3.59% at 9,709.24), underperformed the Sensex.

Auto stocks declined on selling pressure. India’s top small car maker in terms of sales, Maruti Suzuki India lost 5.22% to Rs 765 on 3.53 lakh shares. It was the top loser from Sensex pack.

Other auto stocks Tata Motors (down 4.19% to Rs 707) and Mahindra & Mahindra (down 3.91% to Rs 632), also slipped.

However Bajaj Auto, the country’s second largest bike manufacturer gained 0.96% to Rs 2345. The stock moved in a range of Rs 2280 and Rs 2380.10 today. It was the top gainer from Sensex pack. The stock garnered 14.16% in the past four days from Rs 2022.20 on 13 February 2008 to Rs 2322.60 on 19 February 2008. The company yesterday, 19 February 2008 said the Bombay High Court has sanctioned a scheme of arrangement between the company, Bajaj Holdings & Investment and Bajaj Finserv and their respective shareholders and creditors.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) slipped 2.78% to Rs 2482 on 5.48 lakh shares. The stock had dipped to low of Rs 2083 today. As per recent reports, the company is in advanced talks with the New York-based Vornado Realty Trust, one of the world’s top five real estate asset managers, to float a $1-billion plus fund.

Banking shares saw some recovery from early lows. HDFC Bank (down 1.81% to Rs 1540, off day’s low of Rs 1510), State Bank of India (down 2.90% to Rs 2198, off day’s low of Rs 2182), and ICICI Bank (down 4.13% to Rs 1167.50, off day’s low of Rs 1160.10), recovered though were in the red. Bank stocks fell earlier in the day on reports the Reserve Bank of India has rejected proposals of few banks to increase their capital market exposure beyond the regulatory cap of 40% of net worth on grounds of excessive market volatility.

Bharat Heavy Electricals (down 4.73% to Rs 2119.90), Tata Steel (down 4.77% to Rs 773.85) and DLF (down 3.47% to Rs 813.20) were the other losers from Sensex pack.

IT pivotals eased from day’s high on profit booking after advancing as the rupee slipped to 5-month low against the dollar. Tata Consultancy Services (TCS) (up 0.82% to Rs 882, off day’s high of Rs 892), Infosys Technologies (up 0.59% to Rs 1566, off day’s high of Rs 1588.70), rose.

Tata Consultancy Services during trading hours today, 20 February 2008, said it has signed a multi year contract with Chrysler LLC to provide a comprehensive portfolio of information technology services.

However, Satyam Computers (down 0.08% to Rs 421.25, off day’s high of Rs 434.25), and Wipro (down 0.44% to Rs 411, off day’s high of Rs 423.50) slipped. Indian IT firms derive a lion's share of revenue from exports and they had been hit hard in the last one year by rupee’s surge.

Among the mid-cap IT stocks, Polaris Software Labs (up 2.31% to Rs 93), Rolta India (up 2.95% to Rs 305), HTMT Global Solutions (up 4.18% to Rs 315.40), and NIIT Technologies (up 1.84% to Rs 130), advanced.

Oil marketing companies declined as crude oil prices rallied. Hindustan Petroleum Corporation (down 4.93% to Rs 296.20), Bharat Petroleum Corporation (down 4.94% to Rs 429), and Indian Oil Corporation (down 4.02% to Rs 534), declined on worries of higher under recoveries from sale of petrol and diesel.

Real estate shares were the worst hit today. Unitech (down 4.08% to Rs 381.05), DLF (down 3.47% to Rs 813.20), and Parsvnath Developers (down 2.57% to Rs 275.10), slipped.

Reliance Power was down 0.80% to Rs 410 on volumes of 34.76 lakh shares. The company said on Sunday, 17 February 2008, its board will meet on Sunday, 24 February 2008, to consider issue of bonus shares. The bonus shares will be issued to non-promoter shareholders to compensate the losses suffered by them when the company was listed last week. The stock has been consistently trading at a discount to IPO price of Rs 450, since its listing on 11 February 2008.

Debutante Bang Overseas was the top traded counter on BSE clocking turnover of Rs 326.50 crore followed by Shriram EPC (Rs 323.50 crore), OnMobile Global (Rs 266 crore), Reliance Natural Resources (Rs 258 crore) and Reliance Capital (Rs 253 crore), in that order.

Reliance Natural Resources led the volume chart with 1.91 crore shares followed by Bang Overseas (1.67 crore shares), Hexaware Technologies (1.53 crore shares), Shriram EPC (1.04 crore shares) and Essar Oil (97 lakh shares), in that order.

Wind turbine manufacturer and engineering firm Shriram EPC settled at Rs 293.60 on BSE, a discount of 2.1% over IPO price of Rs 300. The stock debuted at Rs 290, a discount of 3.3% over the IPO price. The stock hit a low of Rs 281.05 and high of Rs 374.70. On BSE, 1.04 crore shares changed hands in the counter.

Bang Overseas settled at Rs 171.80 on BSE, a discount of 17% over the IPO price of Rs 207. The stock debuted at Rs 207, which was the same as the IPO price of Rs 207. The stock touched a high of Rs 260 and a low of Rs 166.50. On BSE, 1.66 crore shares were traded in the scrip.

Construction stocks declined on reports of the central intelligence unit of Indian Customs launching a series of cases alleging import duty evasion by nine infrastructure firms. Gayatri Projects (down 5% to Rs 501.40), Jaiprakash Associates (down 6.83% to Rs 246.20), Punj Lloyd (down 1.47% to Rs 371.50), Hindustan Construction Company (down 2.16% to Rs 163), Nagarjuna Construction Company (down 1.65% to Rs 274.05), and IVRCL Infrastructure Projects (down 0.97% to Rs 453) edged lower.

Under the Customs Act 1962, equipment imported into India for completion of infrastructure projects financed by the UN or an international organization and approved by the government is exempt from customs duty. The firms had imported machinery, such as piling rigs for construction of roads, and had availed the exemption.

Among the side counters, OCL India (up 20% to Rs 271.85), Gujarat NRE Coke (up 14.80% to Rs 156) and Global Broadcast Network (up 14.20% to Rs 1119.60) surged.

However, Force Motors (down 8.60% to Rs 201.10), Lanco Infrastructures (down 8.50% to Rs 429.65), and Panasonic Carbon India Company (down 10.80% to Rs 124.70), declined.

Allcargo Global Logistics jumped 8.31% at Rs 774 after its board approved raising Rs 240 crore from private equity firm Blackstone through issue of shares, debentures and warrants. The company made this announcement after market hours on 19 February 2008.

Orchid Chemicals & Pharmaceuticals declined 2.89% to Rs 248.25 despite receiving approval from the US Food and Drug Administration for its abbreviated new drug application for cefuroxime axetil tablets. The company made this announcement during market hours today, 20 February 2008.

Royal Orchid Hotels gained 0.78% to Rs 115.65 after the company said it has formed a joint venture with Parsvnath Hotels, a wholly-owned subsidiary of Delhi based real estate developer Parsvnath Developers.

Pyramid Saimira Theatre slipped 3.28% to Rs 339. The company plans to invest up to Rs 300 crore in its group firms. The company made this announcement before market hours today, 20 February 2008.

Bhushan Steel declined 2.23% to Rs 990 despite signing a memorandum of understanding with Madhya Pradesh Trade and Investment Facilities Corporation for setting of manufacturing facilities in the state for Rs 3000 crore.

Wockhardt dropped 1.15% to Rs 340 even as it reported 22.8% growth in consolidated net profit to Rs 106.90 crore on 43.30% rise in consolidated total income to Rs 765.70 crore in Q4 December 2007 over Q4 December 2006. The results were announced during trading hours today, 20 February 2008.

Bombay Dyeing and Manufacturing Company rose 3.46% to Rs 720 on reports that it plans to invest Rs 60 crore over the next 2-3 years to open 100 company managed stores. The company is also planning to extend its network to neighbouring countries beginning with United Arabian Emirates in the near future.

Meanwhile in an attempt to boost liquidity, a Securities and Exchange Board of India (Sebi) panel has reportedly recommended that the face value of shares be made a uniform of rupee one in two phases. In the first phase it has recommended that all forthcoming IPOs to be priced based on a mandatory Re 1 face value per share. In the second phase, listed entities having shares with more than Re 1 face value be asked to bring it down to the uniform value. The panel's recommendation would be discussed at the next Sebi board meeting.

European markets extended early fall today, 20 February 2008. Key benchmark indices in United Kingdom (down 1.33% to 5,887.80), Germany (down 1.23% to 6,915.86) and France (down 1.08% to 4,833.40) edged lower.

Asian markets were lower today, 20 February 2008. Japan's Nikkei (down 3.25% at 13,310.37), Hong Kong's Hang Seng (down 2.21% at 23,590.58), Taiwan's Taiwan Weighted index (down 1.62% at 7,894.25), Singapore's Straits Times index (down 1.80% at 3,043.16), South Korea's Seoul Composite index (down 1.90% at 1,687.91) and China’s Shanghai Composite index (down 2.09% to 4,567.06) edged lower

US markets slipped on Tuesday, 19 February 2008 as crude oil surged above $100 a barrel, erasing earlier gains on concerns that higher energy costs could fan inflation and cut consumer spending and profits. The Dow Jones industrial average declined 10.99 points, or 0.09%, to 12,337.22. The Standard & Poor's 500 index slipped 1.21 points, or 0.09%, to 1,348.78 and the Nasdaq composite fell 15.60 points, or 0.67%, to 2,306.20.