Sensex sheds 205 points as oil boils; banking, realty shares drop

The market could not hold on to the last week’s gains as weak global markets and record high oil prices weighed on the market sentiment today. Concerns about a further monetary tightening by the Reserve Bank of India (RBI) heightened after RBI governor Y V Reddy today said inflation rate was totally unacceptable and the official data underestimates the actual rise.

The wholesale price index rose 7.83% in 12 months to 3 May 2008, higher than previous week's annual rise of 7.61%, government data released on Friday, 16 May 2008, showed. It was the highest since an annual reading of 7.93% on 6 November 2004.

Crude-oil futures marked their first close above $127 a barrel Monday 19 May 2008, with the market extending last week's strength on growing concerns about energy supply and demand from China.

The 30-share BSE Sensex lost 204.76 points or 1.17% at 17,230.18. Sensex lost 298.68 points at day’s low of 17,136.26 touched in late trade.

The broader based S&P CNX Nifty was down 52.75 points or 1.02% at 5,104.95. Nifty May 2008 futures were at 5102, at a discount of 2.95 points as compared to spot closing of 5104.95.

However, the market breadth was positive. Consumer durables stocks were mixed. Banking, healthcare and realty stocks declined.

The NSE's futures & options (F&O) segment turnover was Rs 33,290.93 crore, which was lower than Rs 37,876.68 crore on Friday, 16 May 2008.

The BSE Mid-Cap index was down 0.33% to 7,106.06 while the BSE Small-Cap index rose 0.44% to 8,658.61. Both these indices outperformed the Sensex

BSE Health Care index (down 1.19% at 4,269.84), BSE PSU index (down 1.82% to 7,651.74), BSE Realty index (down 1.87% at 7,894.10), BSE Bankex (down 1.98% at 8,763.85) underperformed Sensex.

BSE Consumer Durables index (up 2.7% to 4,706.29), BSE Metal index (up 0.7% to 15,176.97), BSE Auto index (up 0.13% at 4,763.69), BSE IT index (down 0.01% to 4,467.15), BSE TecK index (down 0.57% to 3,534.49), BSE Power (down 0.83% to 3,304.79), BSE FMCG index (down 0.93% at 2,484.94), BSE Capital Goods index (down 0.97% at 13,563.48), BSE Oil & Gas index (down 1.06% to 11,169.61) outperformed Sensex.

European markets were in the red. Key benchmark indices in France, Germany and UK were down by between 0.93% to 1.3%. Asian markets were trading lower today, 20 May 2008. Key benchmark indices in China, Hong Kong, Japan, Singapore South Korean and Taiwan were down by between 0.24% to 4.48%.

The market breadth was positive on BSE with 1,431 shares advancing as compared to 1,292 that declined. 66 remained unchanged.

Among the 30-member Sensex pack, 23 declined while the rest gained.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries declined 1.26% to Rs 2,602. It has reportedly formed a $1 billion joint venture with New York-based Vornado Realty Trust to set up a real estate fund.

Consumer durables stocks were mixed. Titan Industries (down 4.79% to Rs 1,212.40), Gitanjali Gems (down 2.92% to Rs 297.05) edged lower. However, Videocon Industries (up 16.94% to Rs 410.35) and Asian Star Company (up 0.08% to Rs 1,266) edged higher.

Banking stocks declined. ICICI Bank (down 1.43% to Rs 927.65) and HDFC Bank (down 2.51% to Rs 1,464.65) edged lower.

India’s largest commercial bank State Bank of India declined 2.85% to Rs 1,655.45. It has reportedly decided to stop giving loans for the purchase of tractors and other farm equipment. Due to mounting non-performing assets in the farm equipment loan segment, the bank has decided to temporarily put on hold all future advances for farm equipment like tractors, power tillers and combined harvesters, the reports suggested.

Realty stocks declined. Indiabulls Real Estate (down 2.52% to Rs 523.70), DLF (down 1.95% to Rs 636.55) and Unitech (down 2.67% to Rs 279.05) edged lower.

HealthCare stocks declined. Sun Pharmaceuticals Industries (down 2.22% to Rs 1,353.60) and Cipla (down 2.02% to Rs 208.20) edged lower.

Dr Reddys Laboratories declined 1.75% to Rs 638.85. The company’s net profit fell 39.65% to Rs 162.26 crore on 9.78% slide in total income to Rs 1038.47 crore in Q4 March 2008 over Q4 March 2007. The company announced the result during market hours today

India’s largest tractor maker by sales Mahindra & Mahindra declined 1.31% to Rs 653.50. It is reportedly eyeing Italian motorcycle marque brands — Cagiva and MV Agusta. The Castiglioni family, which owns flagship MV Agusta and Cagiva motorcycle brands, has been facing financial troubles for some time and has been on the look out for a potential acquirer, the reports added.

India’s largest car maker by sales Maruti Suzuki India was down 1.06% to Rs 810.25. It has reportedly increased prices of cars by up to Rs 18,000 because of higher raw material costs.

India’s largest engineering and construction firm by sales Larsen & Toubro declined 0.83% to Rs 2,971.50. The company announced today it had received electrical project orders worth Rs 640 crore in the Gulf region.

Satyam Computer Services (up 1.32% to Rs 494.60), Tata Motors (up 1.28% to Rs 678.35), Infosys (up 0.86% to Rs 1,887.20), Tata Steel (up 0.42% to Rs 894.65), ACC (up 0.35% to Rs 682.45), Ranbaxy Laboratories (up 0.04% to Rs 510.90), edged higher from the Sensex pack.

Jaiprakash Associates (down 5,22% to Rs 256), Reliance Infrastructure (down 4.53% to Rs 1,394.40), Bharat Heavy Electricals (down 3.28% to Rs 1,736.50), Bharti Airtel (down 2.65% to Rs 828.75), NTPC (down 2.64% to Rs 186), Tata Consultancy Services (down 2.4% to Rs 952.75) edged lower from Sensex pack.

Aishwarya Telecom clocked the highest volume of 1.46 crore shares on BSE. IFCI (1.4 crore shares), Ispat Industries (1.14 crore shares), Cairn India (91.4 lakh shares), Nagarjuna Fertilisers and Chemicals (89.36 lakh shares), were the other volume toppers in that order.

Cairn India clocked the highest turnover of Rs 290.82 crore on BSE. Mundra Port and Special Economic Zone (Rs 263.59 crore), Housing Development and Infrastructure (Rs 256.23 crore), Aishwarya Telecom (Rs 171.34 crore) and Suzlon Energy (Rs 168.38 crore), were the other turnover toppers in that order.

US markets ended mixed on Monday 19 May 2008 after a late-day sell-off. Weakness in techs, retail and housing prompted traders to lock in some profits. The Dow gained 41.36 points, or 0.32%, to 13,028.16. The S&P 500 rose 1.28 points, or 0.09%, to 1,426.63. The Nasdaq composite index was down 12.76 points, or 0.50%, to 2,516.09.

Back home on Friday 16 May 2008, the 30-share BSE Sensex rose 81.40 points or 0.47% at 17,434.94. The broader based S&P CNX Nifty advanced 42.45 points or 0.83% at 5,157.70. The market was closed on Monday, 19 May 2008, for a public holiday.

The BSE Sensex had risen 697.87 points or 4.17% to 17,434.94 in the week ended Friday, 16 May 2008. The S&P CNX Nifty rose 175.10 points or 3.51% to 5157.70 in the week.