Nifty settles below 5,000; IT stocks give up early gains

Indian equities reversed early gains in choppy trade to settle lower closely mirroring European markets which opened after Indian market. Latest data showing higher than expected UK inflation figures pulled European markets lower after firm start. The S&P CNX Nifty slipped below 5,000 mark.

The market had opened higher tracking firm global markets with the Sensex surging past 17,000 mark in opening trade. It failed to sustain higher levels. The market breadth was just about positive, after staying strong throughout the day.

The 30-share BSE Sensex slipped 108.04 points or 0.64% at 16,752.86. Sensex lost 163.43 points at day’s low of 16,697.47 touched in late trade. Sensex had opened 147.13 points higher at 17,008.03. The barometer index hit a high of 17,085.63 in early afternoon trade. At the day’s high, Sensex gained 224.73 points.

The broader based S&P CNX Nifty shed 54.85 points or 1.09% at 4,957.80. Nifty May 2008 futures were at 4954, a discount of 3.80 points as compared to spot closing

As per provisional data, foreign funds bought shares worth a net Rs 73.93 crore today. Domestic funds bought shares worth a net Rs 266.50 crore.

The market breadth was just about positive, after staying strong throughout the day. On BSE 1366 shares advanced as compared to 1341 that declined. 76 remained unchanged.

The BSE Mid-Cap index was up 0.16% to 6,956.81 while the BSE Small-Cap index declined 0.07% to 8,397.71. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 6596 crore as compared to Rs 6,007.51 crore yesterday, 12 May 2008. Turnover in NSE’s futures & options segment amounted to Rs 38107.72 crore as compared to Rs 41000.8 crore yesterday, 12 May 2008.

Sectoral indices on BSE displayed mixed trend. The BSE FMCG index (up 0.57% to 2,500.33), BSE PSU index (down 0.32% to 7,713.53), BSE Bankex (up 0.43% at 8,601.84), BSE Auto (down 0.39% at 4,669.95), BSE Health Care index (up 0.02% at 4,178.25), BSE Metal index (up 0.64% to 15,747.88), BSE Realty index (up 0.13% at 7,747.12), BSE Power (down 0.18% to 3,213.24), BSE Capital Goods index (down 0.46% at 13,060.97), and BSE Consumer Durables index (up 1.39% to 4,401.45), outperformed the Sensex.

The BSE Oil & Gas index (down 2.56% at 10,907.37), BSE TecK index (down 0.88% to 3,379.07), BSE IT index (down 0.76% to 4,265.14), underperformed the Sensex.

Among the 30-member Sensex pack, 21 declined while the rest advanced.

Metal stocks gained on renewed buying. India’s largest private sector aluminium company in terms of sales Hindalco Industries advanced 2.97% to Rs 180.20 on 8.84 lakh shares. It was the top gainer from Sensex pack.

Tata Steel (up 1.21% to Rs 853), JSW Steel (up 3.46% to Rs 959.90) and National Aluminium Company (up 7.26% to Rs 487) advanced.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) slumped 2.13% to Rs 2500.05 on 7.52 lakh shares.

Jaiprakash Associates (up 1.97% to Rs 251.25), and ICICI Bank (up 0.42% to Rs 882), edged higher from Sensex pack.

IT stocks pared gains. India’s fourth largest software services exporter Satyam Computer Services rose 1.22% to Rs 495.50, off session's high of Rs 505.70.

India’s largest software services exporter TCS slumped 3.16% to Rs 898, off sharply from day’s high of Rs 945. It was the top loser from Sensex pack.

Infosys Technologies (down 1.83% to Rs 1740, off day’s high of Rs 1813) and Wipro (down 3.08% to Rs 492.05, off day’s high of Rs 510.95), dropped.

India’s largest commercial bank in terms of total assets State Bank of India rose 0.40% to Rs 1670 after is signed a memorandum of understanding with Insurance Australia Group for a general insurance venture to tap the fast-growing Indian market.

Oil exploration heavyweights corrected today, as soaring crude oil prices took a pause after recent rally. Oil & Natural Gas Corporation, the country’s largest state run oil exploration company in terms of sales, slipped 2.60% to Rs 1002.

Cairn India, the country’s largest private sector oil exploration company tumbled 8.90% to Rs 276 on high volumes of 86.38 lakh shares.

Bharti Airtel, the country’s largest telecom services provider in terms of market capitalisation shed 2.05% to Rs 821.10. UAE's Emirates Telecommunications Corp said on Monday, 12 May 2008, it was evaluating a bid for South African telecom firm MTN. This may compel Bharti Airtel to raise its indicative offer, which media reports said valued MTN at about $37 billion.

Engineering heavyweights Bharat Heavy Electricals (down 0.58% to Rs 1738), and Larsen & Toubro (down 1.69% to Rs 2787), declined

DLF, the country’s largest real estate developer in terms of market capitalisation shed 1.25% to Rs 614.10. As per reports, the company will file papers for $2 billion real estate investment trust (REIT) with the Singapore authorities next month.

Reliance Communications, the country’s second largest telecom services provider in terms of market capitalisation lost 0.90% to Rs 545. The company has formed a joint venture with French-US equipment firm Alcatel-Lucent to offer managed network services to domestic as well as international telecom operators.

Tata Motors (down 2.48% to Rs 652), Ranbaxy Laboratories (down 2.06% to Rs 484) and ACC (down 2.94% to Rs 681), edged lower from Sensex pack.

Recently listed Aishwarya Telecom jumped 5.81% to Rs 104.80. It was the top traded counter on BSE with turnover of Rs 592.02 crore. Cairn India (Rs 247.16 crore), Reliance Petroleum (Rs 216.72 crore), IFCI (Rs 212.81 crore) and Reliance Industries (Rs 190.77 crore) were the other turnover toppers.

Aishwarya Telecom, also, topped the volume chart clocking volumes of 7.26 crore shares on BSE followed by IFCI (3.50 crore shares), Ispat Industries (1.47 crore shares), Reliance Petroleum (1.19 crore shares) and Reliance Natural Resources (1.17 crore shares), in that order

Among the other side counters, Rallis India plunged 6.19% to Rs 422.25 after it went Rs 16 per share ex-dividend from today.

MphasiS jumped 8.32% to Rs 239 on reports Hewlett-Packard was in talks to buy outsourcing firm Electronic Data Systems, which owns a majority stake in the Indian software firm. If the deal fructifies, it will trigger the mandatory open offer for 20% stake in Mphasis, as per the Securities & Exchange Board of India (Sebi) takeover regulation. EDS holds 60.89% stake in MphasiS.

Thermax shed 1.13% to Rs 459 despite reports the company plans to invest over Rs 200 crore in this financial year for expansion purpose.

GAIL India dropped 2.20% to Rs 406 after posting a marginal 6.12% rise in net profit to Rs 722.38 crore on 25.99% increase in total income to Rs 5034.95 crore in Q4 March 2008 over Q4 March 2007. The company announced the results during trading hours today, 13 May 2008.

Phillips Carbon Black fell 3.84% to Rs 181.35. The company said on Monday, 12 May 2008, it has signed a joint venture agreement with subsidiaries of Vietnam National Chemical Corp to set up a carbon black facility in Vietnam.

Indiabulls Real Estate surged 3.30% to Rs 535 after reporting 362.9% surge in net profit to Rs 27.82 crore on 765.20% increase in net sales to Rs 28.81 crore in Q4 March 2008 over Q4 March 2007. The company announced the results after trading hours on Monday, 12 May 2008.

Bajaj Holdings & Investments slipped 0.90% to Rs 676. As per reports Bajaj Auto plans to sign a joint venture with European car maker Renault and Japanese giant Nissan to manufacture a small car in India with a price tag of $2500.

European markets, which opened after Indian markets, reversed early gains after UK’s consumer price inflation rose to an annual rate of 3% in April 2008, which dampened expectations of near-term interest rate cuts. Key benchmark indices in Germany (down 0.30% to 7,015.05), France (down 0.41% to 4,955.47), and United Kingdom (down 0.79% to 6,171.50) edged lower.

Asian markets were trading higher barring China’s Shanghai Composite which fell 1.84% at 3,560.62 led on uncertainty following a deadly earthquake in southwest China on Monday, 12 May 2008 and the central bank's announcement of the fourth bank reserve ratio hike this year.

Hang Seng (up 1.95% at 25,552.77), Nikkei 225 Average (up 1.53% at 13,953.73), Straits Times (up 0.73% at 3,203.42), Seoul Composite (up 1.05% at 1,842.80), Taiwan Weighted (up 1.81% at 8,989.15) advanced.

US markets rallied yesterday, 12 May 2008 led by financials and technology stocks after the world's largest bond insurer MBIA said it has enough cash to cover claims. Also the drop in oil prices helped ease investors worries about inflation's impact on consumer spending. The Dow Jones industrial average rose 130.43 points, or 1.02%, to 12,876.31. The Nasdaq Composite index rose 42.97 points, or 1.76%, to 2,488.49.

Back home, frenzied buying in late trade helped market snap its five-day slide yesterday, 12 May 2008. The 30-share BSE Sensex rose 123.83 points or 0.74% to 16,860.90 and the broader based S&P CNX Nifty was up 30.05 points or 0.60% at 5,012.65, on that day.

India's industrial production growth dropped sharply to 3% in March 2008, slowing from the previous month's unrevised 8.6%, government data showed on Monday, 12 May 2008. It was the slowest annual growth since a 2.4% rise in February 2002.

Manufacturing production rose 2.9% in March 2008 from a year earlier, compared with 8.6% growth in February 2008. Industrial output rose 8.1% in 2007/08 compared with 11.6% in 2006/07.

New York's main oil futures contract, light sweet crude for June delivery, was 73 cents lower at $123.50 as profit taking helped cool a red-hot market.