Market ends in green

A rebound on the bourses after yesterday's sharp slump proved short lived as the Sensex gave up most of its intra-day gains in choppy trade. The market registered small gains for the day. The market had surged in afternoon trade after reports of top corporates paying higher advance tax in the fourth installment of 15 March 2008, raised expectations of good Q4 March 2008 results. Firm European markets had also aided the rally. The market had witnessed a bout of volatility earlier in the day.

Index heavyweight Reliance Industries (RIL) declined. Hindustan Unilever and DLF were major gainers from Sensex pack. Jaiprakash Associates and Tata Steel were major losers from the Sensex pack. The market breadth was weak. Asian markets which opened before Indian market, were mostly in green.

The 30-share BSE Sensex rose 23.97 points or 0.16% at 14,833.46. It hit a high of 15,164.73 in afternoon trade. At day’s high, Sensex rose 355.24 points. It hit a low of 14,677.24 in early trade, its lowest level since late August 2007. At day’s low Sensex lost 132.35 points.

The broader based S&P CNX Nifty ended up 29.9 points or 0.66% at 4,533.

The US Federal Reserve is widely expected to slash its benchmark interest rate, currently at 3% at its policy meeting later in the day. Fed funds futures are reflecting expectations the US central bank will cut its key fed funds rate by 100 basis, with an outside change of 125 basis-point cut. The move would further widen the interest rate differentials between the United States and Asian countries, which could in turn help spur capital inflows into the region.

BSE clocked a turnover of Rs 6926 crore, higher than Monday (17 March 2008)'s Rs 5722.92 crore.

Nifty March 2008 futures were at 4544, at a premium of 11 points as compared to spot closing of 4533.

The NSE's futures & options (F&O) segment turnover was Rs 47,532.30 crore, which was higher than Rs 40,058.11 crore on Monday, 17 March 2008.

As per the provisional figures on NSE, foreign institutional investors sold shares worth Rs 1,011.05 crore today, 18 March 2008 and domestic funds bought shares worth Rs 177.33 crore.

The market breadth was weak: On BSE 1,925 shares declined as compared to 745 shares that advanced. 45 shares remained unchanged. 18 out of 30 Sensex stocks were trading in green.

The BSE Mid-Cap index declined 1.48% to 6,033.91 and BSE Small-Cap index declined 2.09% to 7,365.20.

BSE Consumer Durables index (down 0.68% to 3,613.90), BSE Oil & Gas index (down 0.92% to 9,711.60), BSE Metal index (down 2.07% to 13,440.78), BSE IT index (up 0.04% to 3,298.87), BSE Bankex (down 0.99% to 7,493.97), BSE PSU index (up 0.01% to 7,154.31) underperformed Sensex.

BSE Power index (up 0.62% to 2,992.01), BSE HealthCare index (up 0.64% to 3,644.93), BSE Capital Goods index (up 1.79% to 12,933.88) BSE Auto index (up 0.22% to 4,339.07), BSE Realty index (up 1.92% to 7,243) and BSE FMCG index (up 0.53% to 2,130.74) outperformed Sensex.

From the Sensex pack, Ranbaxy Laboratories (up 3.4% to Rs 452.85), Hindustan Unilever (up 3.8% to Rs 231.05), DLF (up 5.3% to Rs 634.75), Tata Consultancy Services (up 3.17% to Rs 817.30), Bharat Heavy Electricals (up 1.55% to Rs 1,823.80), Reliance Communications (up 3.03% to Rs 497.80) and Cipla (up 2.02% to Rs 204.45) were major gainers.

Jaiprakash Associates (down 3.56% to Rs 200.65), Tata Steel (down 2.92% to Rs 639.25), HDFC (down 1.05% to Rs 2,202.20), ACC (down 1.58% to Rs 758.80), Infosys (down 1.71% to Rs 1,313.10), Hindalco Industries (down 2% to Rs 161.55) were major losers from Sensex pack.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries declined 1.65% to Rs 2,145.35. The company has paid advance tax of Rs 443 crore in Q4 March 2008 as against Rs 118 crore paid in Q4 March 2007.

India’s largest engineering and construction firm by sales Larsen & Toubro (L&T) rose 2.24% to Rs 2,763.95. L&T has paid Rs 170 crore as advance tax in the fourth installment this fiscal as against Rs 80 crore for the last quarter of the previous fiscal.

India's second largest power utility by revenue Reliance Energy (REL) rose 3.09% to Rs 1,227.65. The company may reportedly be close to inking an agreement with Indiabulls Real Estate (IBREL) to jointly develop a 6,000-acre multi-product special economic zone (SEZ) in Maharashtra’s Raigad district. The project may be developed as a 50:50 joint venture, reports added.

India’s largest private sector bank by net profit ICICI Bank rose 1.39% to Rs 767.95. The company has paid Rs 250 crore as advance tax in Q4 March 2008 as against Rs 125 crore in Q4 March 2007.

India’s largest commercial bank by net profit State Bank of India (SBI) was down 2.52% to Rs 1,592.20. SBI has paid Rs 1,148 crore advance tax in Q4 March 2008 as against Rs 690 crore in Q4 March 2007. Meanwhile, the rights issue of State Bank of India to raise Rs 16700 crore closes today. The bank, 59.73% owned by the government, is offering rights issue in the ratio of one share for every five held. The rights issue is priced at Rs 1,590 per share.

Ambuja Cements rose 1.1% to Rs 119.15. The company has paid Rs 170 crore as advance tax in Q4 March 2008 as against Rs 100 crore paid Q4 March 2007.

Indi’s largest truck maker by sales Tata Motors rose 2.09% to Rs 619. Tata Motors' advance tax outgo declined to Rs 75 crore in Q4 March 2008 compared to Rs 190 crore advance tax it paid in Q4 March 2007.

The world’s sixth largest steel maker Tata Steel declined 2.92% to Rs 639.25. The company paid advance tax of Rs 300 crore in Q4 March h 2008 compared to Rs 350 crore in Q4 March 2007.

Reliance Natural Resources clocked a highest volume of 2.77 crore shares on BSE. Jaiprakash Associates (2.55 crore shares), Reliance Petroleum (2.01 crore shares), Orchid Chemicals & Pharmaceuticals (1.13 crore shares) and GVK Power & Infrastructure (1.09 crore shares) were the other volume toppers in that order.

Jaiprakash Associates clocked the highest turnover of Rs 526.32 crore on BSE. Reliance Petroleum (Rs 310.23 crore), Reliance Capital (Rs 297.02 crore), Reliance Natural Resources (Rs 284.06 crore) and GSS America Infotech (Rs 274.42 crore) were other turnover toppers in that order.

European markets, which opened after Indian market, were firm. France’s CAC, Germany’s DAX and UK’s FTSE 100 rose 2.36% to 2.75%.

Asian markets were mostly in green. Key benchmark indices in South Korea, Hong Kong, Singapore,Taiwan and Japan were up between 0.66% to 1.6%. However, China's Shanghai Composite index was down 3.96%.

The Dow industrials ended slightly higher, but the S&P 500 and the Nasdaq fell on Monday after JPMorgan Chase & Co's deal to buy struggling brokerage Bear Stearns at a rock bottom price failed to dispel fears of deeper fallout from the escalating credit crisis. Asian markets were mostly in the red today.

Sensex tanked 951.03 points or 6.03% at 14,809.49 on Monday, 17 March 2008, as the fire sale of ailing US bank Bear Stearns and the Federal Reserve's emergency cut in its discount rate intensified concerns that there could be more victims of the global credit crisis. It was the second biggest single day point loss in the barometer index.

As per market buzz, a portfolio management scheme run by one of the biggest operators is facing big redemptions. With this being a curtailed trading week, traders are unlikely to build large positions. The market remains closed on Thursday (20 March 2008) on account of Id-E-Milad and on Friday (21 March 2008) on account of Good Friday.

The United Progressive Alliance-Left Committee on the Indo-US civil nuclear cooperation on Monday, 17 March 2008, felt that further discussions were needed on the draft India-specific safeguards agreement that was negotiated with the International Atomic Energy Agency (IAEA). The next meeting of the committee will be held in April 2008. External Affairs Minister Pranab Mukherjee said the outcome of the negotiations between India and the IAEA on the India-specific safeguards agreement was presented to the members of the committee at the meeting which was held on Monday.

A torrent of bad news has spooked bourses in the past few days with buyers deserting the market. Adding to the woes of domestic bourses already hit by tumbling global markets were earnings downgrade recently by brokerages of ICICI Bank, India’s biggest private sector bank in terms of net profit, and Larsen & Toubro, India’s biggest engineering and construction firm in terms of order book; lower-than-expected industrial production data for January 2008; and a surge in inflation.

The hike in short-term capital gains tax and alteration of tax treatment of the Securities Transaction Tax (STT) in Union Budget 2008-09 announced on 29 February 2008 has earlier dented sentiment. Buyers have stayed away from the bourses on continued uncertainty about the extent and duration of the credit crisis caused by the defaults in the US sub-prime mortgage market.