The market ended flat after moving between positive and negative zone. The market recovered from weak start caused by weak global cues. Reliance Industries edged higher. Auto, banking and IT stocks fell while power and metal stocks edged higher. The market breadth was strong.
European markets which opened after Indian markets were subdued in early trade. Asian markets, which opened before Indian markets, were mostly lower.
Liquidity may get a boost from huge refunds that investors will get from Reliance Power IPO though it remains to be seen how much money comes to secondary market in the light of immense volatility witnessed on the bourses last month. Reliance Power, which raised a record $3 billion in its initial share sale in January 2008, said on Friday, 1 February 2008, it had begun refunding excess application money to investors. The initial public offer had received bids for $190 billion.
The 30-share BSE Sensex rose a meagre 2.84 points or 0.02% at 18,663.16. Sensex hit a high of 18,729.83 in morning trade. At the day's high, Sensex gained 69.51 points. Sensex touched a low of 18,509.54 in initial trade. At day’s low it shed 150.78 points.
The broader based CNX S&P Nifty was up 20.4 points or 0.37% to 5,483.90.
BSE clocked a turnover of Rs 5301 crore, compared to Rs 5764.15 crore on Monday, 4 February 2008.
Nifty February 2008 futures were at 5495, at a premium of 11.10 points as compared to spot closing of 5483.90.
The NSE's futures & options (F&O) segment turnover was Rs 31,121.35 crore, which was lower than Rs 40,169.33 crore on Monday, 4 February 2008.
The BSE Mid-Cap index was up 0.83% at 8,071.29. BSE Small-Cap was up 1.01% at 10,466.78. Both these indices outperformed Sensex.
The market breadth was strong: on BSE 1,900 advanced as compared to 887 that declined. 35 stocks remained unchanged. 16 out 30 stocks from the Sensex pack were in green.
Metal stocks rose. Jindal Steel & Power (up 13.25% to Rs 2,586.35), Hindalco Industries (up 1.93% to Rs 181.95) edged higher.
Tata Steel, world's sixth largest steel maker, rose 1.87% to Rs 817.80. Tata Steel has reportedly lost its bid to buy the rights to iron ore reserves in Liberia to the Johannesburg-based Delta Mining Consolidated Company.
National Aluminium Company (down 1.58% to Rs 413.85) and Sterlite Industries (down 1.37% to Rs 836.30) edged lower.
Auto stocks declined. India's biggest car maker in terms of sales, Maruti Suzuki India declined 2.7% to Rs 872.35. Maruti Suzuki may reportedly launch a Rs 1.5 lakh car by end of this year or early 2009 to challenge Tata Motors' Nano. According to reports, it will have a Suzuki 660cc engine - as against Nano's 623cc - and wear a tag of around Rs 1.5 lakh on road (excluding insurance). Nano is expected to be Rs 1.25 lakh on road.
Tata Motors, India's top commercial vehicles maker in terms of sales, declined 1.87% to Rs 755.50. Tata Motors is reportedly satisfied with the progress of negotiations with US carmaker Ford Motor Company to buy British marquee brands Jaguar and Land Rover. The deal is expected to cost $2 billion.
Hero Honda Motors declined 5.56% to Rs 726.80, Bajaj Auto fell 2.24% to Rs 2,404 and Mahindra & Mahindra slipped 2.24% to Rs 680.55.
Banking stocks declined. India’s largest private sector bank by assets ICICI Bank fell 1.69% to Rs 1,189.80. The company has reportedly decided to split its home loans business between itself and an unit called ICICI Home Finance Company. The bank will fund home loans of up to Rs 20 lakh, with the unit handling the rest.
HDFC Bank declined 2.14% to Rs 1,515.10 and State Bank of India fell 1.9% to Rs 2,228.35.
Shares in software services exporters took a beating due to a gloomy economic outlook in the United States, which contributes to more than half of their revenue. Tata Consultancy Services (down 2.72% to Rs 949.45), Wipro (down 2.14% to Rs 454.30 and Infosys (down 1.91% to Rs 1,611.25) edged lower. Satyam Computer Services rose 0.22% to Rs 438.20.
Healthcare stocks rose. Ranbaxy Labotatories (up 3.78% to Rs 387.25), Sun Pharmaceuticals (up 1.39% to Rs 1,123.60), Cipla (up 1.81% to Rs 202.95) and Dr. Reddy’s Laboratories (up 3.13% to Rs 544.45) edged higher.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries rose 0.9% to Rs 2,616. The Bombay High Court will hear petitions on the gas supply dispute between Reliance Industries and Reliance Natural Resources on Tuesday, 5 February 2008.
India’s largest engineering & construction firm by revenue Larsen & Toubro rose 1.28% to Rs 3,855.05.
Among the Sensex gainers, NTPC rose 4.03% to Rs 223.10.
Reliance Communications declined 1.17% to Rs 677 despite Ministry of Communications & Information Technology, Government of India, granting approval to Reliance Telecom (RTL), a wholly owed subsidiary of the company, for providing CDMA services in Assam and North East service areas.
Jindal Steel & Power rose 13.25% to Rs 2,586.35. The scrip topped gainers in BSE's A group shares. Neyveli Lignite surged 12.11% to Rs 167.10. It was the second biggest gainer from A group. Escorts rose 9.63% to Rs 101.90. It was the third biggest gainer from A group. Sobha Developers rose 8.74% to Rs 868.60. It was the fourth biggest gainer from A group. IndusInd Bank rose 7.85% to Rs 110.60. It was the fifth biggest gainer from A group.
Reliance Natural Resources clocked highest turnover of Rs 330.81 crore on BSE. Reliance Communications (Rs 414.41 crore), Reliance Petroleum (Rs 163.91 crore), NTPC (Rs 110.69 crore) and Ispat Industries (Rs 87.33 crore) were other turnover toppers in that order.
Reliance Natural Resources clocked highest volume of 2.2 crore shares on BSE. Ispat Industries (1.91 crore), IFCI (1.52 crore) Tata Teleservices (1.08 crore) and Reliance Petroleum (93.77 lakh) were other volume toppers on BSE in that order.
European markets were weak. France’s CAC 40 (down 0.82% to 4,932.93), Germany’s DAX (down 0.44% to 6,969.43) and UK’s FTSE 100 (down 0.55% to 5,993.10) edged lower.
Asian stocks slipped on Tuesday, 5 February 2008 after a wave of broker downgrades on Wall Street on Monday, 4 February 2008, sparked fresh worries about the health of the US financial sector. In Asia, key benchmark indices in Hong Kong, China, Japan and Singapore were down by 0.82% to 1.55%. However, South Korea's Seoul Composite index was up 0.38%.
US stocks closed lower on Monday on profit taking and analyst downgrades of major financial institutions, including American Express and Wells Fargo. The Dow Jones industrial average lost 108.03 points, or 0.85% at 12,635.16 on Monday, 4 February 2008. The Standard & Poor's 500 Index lost 14.60 points, or 1.05%, at 1,380.82. The Nasdaq Composite Index shed 30.51 points, or 1.26%, at 2,382.85.