Market ends lower; Capital goods shares weigh

The key indices ended in the negative territory. Weakness in Asian markets and a surge in crude oil prices spoiled the investor sentiments today. IT and oil & gas stocks were the front-runners. Capital goods stocks and the shares of PSU firms suffered the most.

European markets, which open after Indian markets, were trading higher. In Europe, key indices in UK, France and Germany were up 0.64% to 0.88%.

Asian markets ended lower today. Key indices in China, Hong Kong, Japan, Singapore and South Korea were down by 0.27% to 4.13%. However, Taiwan’s Taiwan Weighted Index was up 0.78%.

US crude was steady at $121.79 a barrel, just off a record high at $122.73 in New York with prices doubling in the past year. Foreign brokerage house Goldman Sachs, which had predicted that oil would hit $100 a barrel now forecasts a potential spike to $200 a barrel.

The 30-share BSE Sensex fell 33.70 points or 0.19% at 17,339.31. The index lost 143.03 points at day’s low of 17,229.98, hit in the afternoon trade. Sensex gained 40.80 points at day’s high of 17,413.81, hit in the early afternooon.

The broader based S&P CNX Nifty fell 9.15 points or 0.18% at 5135.50. Nifty May 2008 futures were at 5157.10, a premium of 21.6 points as compared to spot closing.

The market breadth was weak on BSE with 1163 shares advancing as compared to 1538 stocks that declined. 64 stocks remained unchanged.

The BSE Mid-Cap index fell 0.40% to 7,201.57 and BSE Small-Cap index fell 0.25% to 8,727.17. Both the indices underperformed the Sensex.

BSE clocked a turnover of Rs 5886 crore as against Rs 6,741.54 crore on Tuesday, 6 May 2008.

The NSE's futures & options (F&O) segment turnover was Rs 33,563.90 crore, which was higher than Rs 32,856.62 crore on Tuesday, 3 May 2008.

IT stocks moved up after rupee touched a 8-month low on Tuesday, 6 may 2008 as oil refiners stepped up dollar buying after oil hit a record high, adding to concerns of a widening trade deficit and slowing capital inflows. The BSE IT index outperformed the Sensex, gaining 0.68% to 4,413.30.

TCS (up 3.02% at Rs 966.20), Mphasis (up 2.51% at Rs 228.70), Infosys Technologies (up 1.26% at Rs 1,843.20), Wipro (up 0.14% at Rs 499.15), and Tech Mahindra (up 0.93% at Rs 952.20), rose.

The BSE Oil & Gas index outperformed the Sensex, rising 0.68% to 11,723.46. Reliance Industries (up 1.05% at Rs 2,682.35), Aban Offshore (up 1.05% at Rs 2,682.35) and Essar Oil (up 0.74% at Rs 287.05), rose.

Oil refiner Cairn India jumped 7.47% to Rs 278.45 in anticipation that the spiraling crude oil prices, which soared to a record high of $122.73 yesterday, will lead to higher price realization. Earlier in the day, the stock had touched an all time high of Rs 283.50.

However, state-run oil firms declined. HPCL (down 3.96% at Rs 244.05), Indian Oil Corporation (down 3.68% at Rs 459.15), BPCL (up 3.14% at Rs 382.85), slipped.

The BSE Capital Goods index underperformed the Sensex, falling 2.24% to 13,641.62. Bharat Electronics (down 6.11% at Rs 1,229.90), Bharat Heavy Electricals (down 4.12% at Rs 1,783.75), BEML (down 2.52% at Rs 1,137.05), Larsen & Toubro (down 2.44% at Rs 2,986.50) and Punj Lloyd (down 2.06% at Rs 354.45), tumbled.

The BSE Bankex underperformed the Sensex, falling 0.79% to 9,016.91. Axis Bank (down 4.29% at Rs 907.15), Bank of India (down 4.17% at Rs 338.85), Kotak Mahindra Bank (down 2.60% at Rs 836), Bank of Baroda (down 2.40% at Rs 317.55) and ICICI Bank (down 0.99% at Rs 918.85), slipped.

Plastic materials maker Uflex jumped 1.63% to Rs 149.60 after posting 60.6% surge in net profit to Rs 24.84 crore on 13.9% rise in net sales to Rs 362.42 crore in Q4 March 2008 over Q4 March 2007.

Information technology firm Mastek soared 8.34% to Rs 368.20 on reports that the company is betting on transport and healthcare sectors for fuelling its future revenue.

Marine transportation services provider Mercator Lines vaulted 3.38% to Rs 107.20 after its wholly owned subsidiary Mercator Lines (Singapore) reported three-fold jump in net profit to $52.2 million in the year ended March 2008 over the year ended March 2007.

Ethanol maker Dollex Industries was locked at upper limit of 5% at Rs 43.45 on setting 20 May 2008 as the record date for a 2-for-1 stock split.

Apparel maker and exporter Gokaldas Exports surged 12.32% at Rs 232.90 on reports that major stakeholder Blackstone Group was considering delisting the company this year.

Film maker Pritish Nandy Communications was locked at upper limit of 10% at Rs 64.20 after it said on Tuesday, 6 May 2008 it has signed a three-film deal with US-based Sony Pictures.

Ethanol maker Praj Industries gained 1.92% to Rs 199.05 after the company reported 77.44% surge in net profit to Rs 153.54 crore on 20.10% increase in total income to Rs 740.31 crore in the year ended March 2008 over the year ended March 2007.

Aishwarya Telecom settled at Rs 90.85 on BSE, a sharp premium of 159.57% over its issue price of Rs 35. The stock debuted at Rs 50.10 on BSE, a premium of 43.14% over its issue price.

Debutant Aishwarya Telecom clocked the highest turnover of Rs 697.52 crore on BSE. Reliance Capital (Rs 240.15 crore), Idea Cellular (Rs 205.62 crore), Cairn India (Rs 204.54 crore) and Bharti Airtel (Rs 172.08 crore), were the other turnover toppers on BSE in that order.

Aishwarya Telecom reported the highest volume of 8.27 crore shares on BSE. Idea Cellular (2.03 crore shares), Ispat Industries (1.80 crore shares), IFCI (1.23 crore shares) and Cybermate Infotek (1.03 crore shares), were the other volume toppers on BSE in that order.

US markets rose to a four month high yesterday, 6 May 2008 as Financial and energy shares sparked the positive moves on the US indices. US largest mortgage financing company Fannie Mae surged after its officials said they were cautiously optimistic that the worst of the credit crisis had passed even after posting a $2.5 billion quarterly loss. The Dow Jones industrial average rose 51.29 points or 0.40% to 13,020.83. The Nasdaq Composite index rose 19.19 points, or 0.78%, to 2,483.31. The S&P 500 advanced 11 points to 1,418