Sensex sheds 131 points on uncertainty about US outlook

The key benchmark indices ended the volatile session with a loss of nearly one percent. Mixed global cues and imminent expiry of March 2008 derivative contracts kept the market volatile throughout the day. Concerns about the US economy which is said to be already in recession resurfaced following data that showed that US consumer confidence fell to a five-year low in March 2008.

Uncertainty about the US outlook kept a lid on Europen and Asian markets. In Europe, key indices in UK, France and Germany were down by 0.19% to 0.53%. Asian markets, which opened before Indian markets, ended mostly in red. Key indices in Japan, China, Singapore and Taiwan were down by 0.31% to 0.63% whereas indices in Hong Kong and South Korea were up by 0.28% to 0.68%.

Back home, investors turned cautious after the previous day's 6.1% jump. Majority of the sectoral indices on BSE slipped into red. ICICI Bank was the top loser from the Sensex pack. The market breadth was positive.

The 30-share BSE Sensex was down 130.66 points or 0.81% at 16,086.83. The index lost 207.62 points at session's low of 16,009.87 hit in afternoon trade. The index gained 92.39 points at the session's high of 16,309.88, hit at the onset of the trading session.

The broader CNX S&P Nifty was down 48.65 points or 1% at 4828.85. Nifty March 2008 futures were at 4840.15, at a premium of 11.30 points as compared to spot closing of 4828.85.

As per provisional data, foreign institutional investors (FIIs) bought shares worth a net Rs 393.91 crore today. Domestic funds sold shares worth a net Rs 108.65 crore.

The NSE's futures & options (F&O) segment turnover was Rs 57,628.83 crore, which was lower than Rs 66,627.57 crore on Tuesday, 25 March 2008.

The March 2008 derivative contracts will expire on Thursday, 27 March 2008. As per reports, the marketwide rollover of derivative positions from March 2008 series to April 2008 series stood at 38%, while that of Nifty was 41% by Tuesday, 25 March 2008.

The BSE Mid-cap index outperformed the Sensex, rising 1.56% at 6,271.03. The BSE small-cap index outperformed the Sensex, rising 2.12% at 7,438.96.

The market breadth was positive. On BSE, 1733 stocks advanced, 978 declined and 50 stocks were unchanged.

The BSE clocked a turnover of Rs 6100 crore as against Rs 6,880.05 crore on Tuesday, 25 March 2008.

India's largest private sector bank by assets ICICI Bank fell 4.17% at Rs 843.25.

India's largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) fell 0.68% to Rs 2298.70.

India's top commercial vehicle maker by sales Tata Motors ended almost unchanged at Rs 679.40. As per reports, US automaker Ford has agreed to sell its luxury brands Jaguar and Land Rover to India's Tata Motors for more than $2 billion. Ford, which signed the deal on Tuesday, 25 March 2008, plans to publicly announce the transaction in New York today, reports suggest.

Top Sensex gainers were, Tata Steel (up 3.79% to Rs 657.85), Housing Development Finance Corporation (up 2.73% to Rs 2660.35), ITC (up 2.09% to Rs 195.10), HDFC Bank (up 1.64% to Rs 1441.15) and Satyam Computer (up 0.47% to Rs 413).

Top Sensex losers were, Hindustan Unilever (down 4.31% to Rs 234.40), Bharti Airtel (down 3.75% to Rs 803.10), Jaiprakash Associates (down 3.02% to Rs 226.05), Bharat heavy Electricals (down 2.86% to Rs 1954.95), and Reliance Communication (down 2.25% to Rs 526.10).

The BSE Bankex underperformed the Sensex, falling 0.83% to 8,301.80. Union Bank (down 2.80% to Rs 149.45), Bank of Baroda (down 2.19% to Rs 292.75), Canara Bank (down 1.64% to Rs 225.20), State Bank of India (down 1.53% to Rs 1713.60) and Federal Bank (down 0.49% to Rs 214.25), declined.

The BSE Oil & Gas index underperformed the Sensex, falling 0.82% to 10,224.56. Cairn India (down 2.52% to Rs 211), Reliance Natural Resources (down 2.49% to Rs 99.75), Gail India (down 1.67% to Rs 425.90), ONGC (down 1.11% to Rs 1063) and Essar Oil (down 1.09% to Rs 209.35), slipped.

The BSE Metal index outperformed the Sensex, rising 1.01% to 13,745.18. Gujarat NRE Coke (up 11.01% to Rs 137.10), Welspun Gujarat Stahl Rohren (up 5.54% to Rs 350.75), Shree Precoated (up 4.96% to Rs 155.55), and Sterlite Industries (up 0.82% at Rs 709.90).

The BSE IT index outperformed the Sensex, rising 0.17% to 3,692.55. Mphasis (up 6.74% at Rs 194.85), Financial Technologies (up 4.12% at Rs 1,434.50), TCS (up 0.38% at Rs 879.30) and Infosys Technologies (up 0.20% at Rs 1,495.60). However, Wipro fell 1.31% at Rs 429.

Shipping firm Mercator Lines rose 6.59% to Rs 76 after the company said its subsidiary Mercator Lines, Singapore has entered into negotiation with Refined Success for the time charter-out of Geastiniono TBN, a gearless panamax vessel.

Avantel Softech surged 9.41% to Rs 59 after the company said it has bagged an order worth Rs 8.25 crore from the Government of India for supply of satellite communication receiver terminals for Indian Navy

Engineering firm GEI Industrial Systems soared 10.85% to Rs 71.50 after the company said it has bagged an order worth Rs 30 crore from Essar Construction for supply of air cooled heat exchangers for a project in Gujarat.

Private sector lender Axis Bank vaulted 4.34% to Rs 826.50 after a two block deals totaling 45.46 lakh shares were struck on the counter at average price of Rs 799.89 per share on BSE. Garment manufacturer SEL Manufacturing Company rose 5% to Rs 276.05 after the company said its board has approved raising upto $250 million through issue of foreign currency convertible bonds and global depository receipts.

Diesel engines maker Kirloskar Oil Engines jumped 5.55% to Rs 105.60 after three block deals aggregating 30.99 lakh shares were executed on the counter at an average price of Rs 100.03 per share in opening trade on BSE.

Edible oils maker K S Oils gained 0.78% to Rs 64.85 after the company said it has acquired a single palm plantation over a vast area spread across 50,000 acres of green land in Indonesia.

Ispat Industries clocked highest volume of 1.87 crore shares on BSE. Reliance Natural Resources (1.58 crore shares), Reliance Petroleum (80.76 lakh shares), IFCI (75.89 lakh shares) and Essar Oil (72.50 lakh shares), these were other volume toppers on BSE in that order.

Reliance Capital reported highest turnover of Rs 385.64 crore on BSE. Axis Bank (Rs 378.50 crore), Indiabulls Financial Services (Rs 261.05 crore shares), GSS America (Rs 252.54 crore) and Reliance Industries (Rs 186.86 crore), these were other turnover toppers on BSE in that order.

US markets ended on mixed note yesterday, 25 March 2008 after the consumer confidence fell sharply in March 2008 with the Consumer Confidence Index (CCI) slumping to a five-year low of 64.5. The Dow Jones industrial average declined 16.04 points, or 0.13%, to 12,532.60. The S&P added 3.11 points, or 0.23%, to 1,352.99 and the Nasdaq gained 14.30 points, or 0.61%, to 2,341.05.