Banking, IT shares lead 259 points Sensex fall

The market succumbed to selling pressure today as weak global equities and soaring crude oil prices worried investors. All the sectoral indices on BSE, barring the BSE Metal index, were in the red. Software and banking shares were worst hit in today's fall.

European markets, which opened after Indian markets, were trading lower. Key indices in UK, France and Germany were down by 0.36% to 0.52%.

Asian markets, which opened before Indian market, were trading mostly in red today, 8 May 2008. Key indices in Hong Kong, Japan, Singapore, South Korea and Taiwan were down by 0.32% to 1.13%. However, China’s Shanghai Composite was up 2.17%.

US markets suffered sharp losses on Wednesday, 7 May 2008, on worries about inflation and higher interest rates as oil jumped to a record. Financials stocks took a beating on concerns that new disclosure requirements for investment banks will limit their profits. The Dow Jones industrial average slumped 206.48 points, or 1.59%, to 12,814.35. The Nasdaq Composite index fell 44.82 points, or 1.80%, to 2,438.49. The S&P 500 shed 26 points at 1,393.

Oil prices for June 2008 delivery fell 6 cents to $123.47 a barrel in electronic trading on the New York Mercantile Exchange today, 8 May 2008, in Asia after jumping to a record of $123.93 a barrel yesterday, 7 May 2008.

The 30-share BSE Sensex fell 258.66 points or 1.49% at 17,080.65. The index lost 301.28 points at day’s low of 17,038.03, hit in the early afternoon trade. Sensex lost 126.7 points at day's high of 17,212.61 hit in early trade.

The broader based S&P CNX Nifty fell 53.8 points or 1.05% at 5081.70. Nifty May 2008 futures were at 5093, a premium of 11.3 points as compared to spot closing.

The market breadth was weak on BSE with 1102 shares advancing as compared to 1593 stocks that declined. 51 stocks remained unchanged.

The BSE Mid-Cap index was down 0.67% at 7,153.43 and the BSE Small-Cap index was down 0.44% at 8,689.04. Both the indices outperformed the Sensex.

BSE clocked a turnover of Rs 5904 crore as against Rs 6,622.02 crore on Wednesday, 7 May 2008. The NSE's futures & options (F&O) segment turnover was Rs 28,943.79 crore, which was lower than Rs 33,563.9 crore on Wednesday, 7 May 2008.

India's biggest private sector firm by market capitalisation and oil refiner Reliance Industries fell 0.79% to Rs 2661.05.

India's biggest cigarette maker by revenue ITC slumped 5.24% to Rs 215.05.

The BSE IT index underperformed the Sensex, falling 2.69% to 4,294.46. Mphasis (down 3.96% at Rs 219.65), Satyam Computer (down 3.72% at Rs 471.10), TCS (up 2.33% at Rs 943.70), HCL Technologies (down 1.82% at Rs 288.05) and Wipro (down 0.40% at Rs 0.40% at Rs 497.15), slipped.

India's second largest software exporter by sales Infosys Technologies fell 3.44% at Rs 1,779.80.

The BSE Bankex index underperformed the Sensex, falling 2.90% to 8,755.48. Kotak Mahindra bank (down 6.41% at Rs 782.40), Bank of Baroda (down 5.51% at Rs 300.05), Axis Bank (down 4.83% at Rs 863.35), HDFC Bank (down 2.24% at Rs 1,508.40), and State Bank of India (down 2.17% at Rs 1,729.80), tumbled.

India's biggest private sector lender by assets ICICI Bank fell 3% to Rs 891.30.

The BSE Metal index outperformed the Sensex, gaining 0.19% to 15,843.27. Tata Steel (up 2.51% at Rs 845.65), Welspun Gujarat Stahl Rohren (up 1.89% at Rs 409.60), Bhushan Steel (up 0.93% at Rs 790), Sesa Goa (up 0.89% at Rs 4,028.20), and Hindalco Industries (up 0.17% at Rs 180.05), moved higher.

Among the side counter, Moser Baer (up 8.08% at Rs 191.30), United Phosphorus (up 5.19% at Rs 349.35), Aban Offshore (up 5.03% at Rs 3,811.10), Great Offshore (up 5.03% at Rs 708.65) and IFCI (up 3.57% at Rs 60.85), soared.

Stocks from the side counters that declined were, Sintex Industries (down 6% at Rs 435), Indiabulls Financial Services (down 5.98% at Rs 491), Reliance Industrial Infrastructure (down 5% at Rs 1,465.90), and Lanco Infratech (down 5% at Rs 506.15).

Tata Communications rose 3.07% to Rs 502.50 on reports the government is planning to divest its residual 26.12% stake in the company.

India's third largest listed cellular services provider by sales Idea Cellular rose 2.41% to Rs 106.40. The firm slashed its long-distance call rates and roaming charges.

Mid-day Multimedia, which publishes a tabloid, gained 2.10% to Rs 34. The firm reported net profit of Rs 0.23 crore in the Q4 March 2008 as compared to net loss of Rs 2.88 crore in Q4 March 2007. Sales declined 2.19% to Rs 27.24 crore in Q4 March 2008 over Q4 March 2007.

Aishwarya Telecom clocked the highest turnover of Rs 722.21 crore on BSE. Reliance Power (Rs 250.45 crore), Reliance Capital (Rs 171.71 crore), Tata Steel (Rs 160.78 crore) and Cairn India (Rs 155.39 crore), were the other turnover toppers on BSE in that order.

Aishwarya Telecom reported the highest volume of 7.71 crore shares on BSE. IFCI (1.42 crore shares), Ispat Industries (1.14 crore shares), Kashyap Technologies (87.10 lakh shares) and Reliance Natural Resources (83.40 lakh shares), were the other volume toppers on BSE in that order.