Sensex sheds 209 points as an imminent oil price hike looms

The market, which swayed between positive and negative territory earlier in the day, slumped in the last hour of trade. Major selling pressure was seen in auto and banking shares. Tata Motors plunged even as Larsen & Toubro bucked the weak market trend.

Petroleum minister, Murli Deora today, 29 May 2008, said the government would take a decision on raising fuel prices in the next two to three days. A meeting of the Cabinet, which was to have taken up the matter today, has been postponed, he said.

Another reason for volatility was imminent expiry of May 2008 futures & options today. As per reports, rollover of Nifty positions from May 2008 series to June 2008 series stood at 57% as compared to 62% in the April 2008 to May 2008 series, as on 28 May 2008. The marketwide rollovers were healthy, at 62% as compared 61% in the previous series.

The 30-share BSE Sensex lost 209.11 points or 1.27% to 16,316.26. The Sensex lost 329.35 points at the day’s low of 16,196.02, hit in late trade. The index climbed 140.66 points at day’s high of 16,666.03, hit in the onset of trading session.

The broader based S&P CNX Nifty plunged 83.05 points or 1.69% at 4835.30. Nifty June 2008 futures were at 4875, a premium of 39.70 points against the spot closing.

The NSE's futures & options (F&O) segment turnover was at Rs 64758.96 crore, higher than Rs 56333.67 crore on Monday, 26 May 2008. BSE clocked a turnover of Rs 5915 crore in the cash segment as against Rs 5,431.78 on Wednesday, 28 May 2008.

US crude fell 76 cents to $130.27 a barrel, while London Brent crude fell 83 cents to $130.10 a barrel today, 29 May 2008, as a strengthening dollar more than offset fears of supply disruptions in Nigeria.

European markets, which open after Indian markets, were trading higher. Key indices in France, Germany and UK were up by 0.34% to 0.78%. Asian markets were trading higher today, 29 May 2008. Key indices in Japan, Hong Kong, Taiwan, Singapore and South Korea were up by 0.22% at 3.03%. However, China’s Shanghai Composite was down 1.66%.

US markets ended higher yesterday, 28 May 2008, after a volatile session led by better-than-forecast durable goods orders and positive financial results from select retailers. The Dow Jones industrial average gained 46 points to 12,594. The Nasdaq Composite index rose 5 points to 2,487. The S&P 500 index garnered 5 points to 1,390.10.

The market breadth turned weak in the last one hour of trade. On BSE, 1115 shares advanced as compared to 1537 stocks that declined. 109 stocks remained unchanged.

The BSE Mid-Cap index fell 0.17% at 6,741.76 and BSE Small-Cap index fell 0.68% to 8,181.07. Both these indices outperformed the Sensex.

India’s largest engineering & construction firm by revenue Larsen & Toubro soared 6.64% at Rs 2889.10, off day’s high of Rs 2949. The firm recommended a liberal 1:1 bonus issue and a total dividend of Rs 17 per share for the year ended March 2008. The company reported a 37.95% rise in net profit to Rs 966.76 crore on a 34.79% increase in total income to Rs 8715.92 crore in Q4 March 2008 over Q4 March 2007.

India's largest commercial vehicles maker by sales Tata Motors slid 8.22% at Rs 582.55. Tata Motors on Wednesday, 28 May 2008 said it plans to raise about Rs 7,200 crore through three simultaneous but separate rights issues, including an issue of equity shares worth up to Rs 2,200 crore.

Foreign investment firm Citigroup Inc. today, 29 May 2008 lowered the target price on Tata Motor stock to Rs 791 from Rs 914 earlier.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 2.19% at Rs 2466.50.

Major Sensex gainers were, Reliance Communication (up 3.92% at Rs 573.20), Cipla (up 2.98% at Rs 213.95 ), Satyam Computer (up 2.30% at Rs 526.25), Ranbaxy Laboratories (up 1.77% at Rs 504.60), and Wipro (up 1.25% at Rs 512.50).

Major Sensex losers were, Ambuja Cements (down 6.05% at Rs 97.80), Mahindra & Mahindra (up 5.52% at Rs 606.20) State Bank of India (down 3.62% at Rs 1464.30), and Hindalco Industries (up 3.54% at Rs 189.60).

The BSE Bankex underperformed the Sensex, falling 2.71% to 7,718.81. Allahabad Bank (down 4.42% at Rs 81.05), Bank of India (down 4.32% at Rs 288.85), Kotak Mahindra Bank (down 3.635 at Rs 680.05), Axis Bank (down 3.39% at Rs 783.30), and HDFC Bank (down 2.01% at Rs 1,324.40), slipped.

India's largest private sector bank by assets ICICI Bank fell 2.79% at Rs 797.30.

The BSE Auto index underperformed the Sensex, falling 3.31% to 4,410.81. Hero Honda (down 2.77% at Rs 778.40), TVS Motor Company (down 2.59% at Rs 37.55), Ashok Leyland (down 2.30% at Rs 36.10) and Maruti Suzuki (down 1.74% at Rs 764.30), declined.

The BSE Capital Goods index outperformed the Sensex, gaining 2.03% to 12,827.03. Bharat Electronics (up 3.57% at Rs 1,175), Elecon Engineering Company (up 3.52% at Rs 128), BEML (up 1.35% at Rs 1,091.25) and Areva T&D (up 0.65% at Rs 1,493.60), gained.

However, Bharat Heavy Electricals (down 0.76% at Rs 1,599.90), and Punj Lloyd (down 2.19% at Rs 310.80), slipped.

Piramal Life Sciences, which debuted at Rs 300, ended at Rs 313.90 on a volume of 72.42 lakh shares on BSE. The research and development unit was separated from parent Piramal Healthcare, formerly known as Nicholas Piramal. The stock touched a high of Rs 519.80.

FMCG products maker Godrej Consumer Products jumped 3.82% to Rs 136 after four block deals aggregating 27.98 lakh shares were executed in the counter at an average price of Rs 131.32 per share on BSE in opening trade.

Industrial chemicals maker Pidilite Industries gained 0.14% to Rs 146 on reporting 36.33% rise in net profit to Rs 33.4 crore on 35% increase in total income to Rs 371 crore in Q4 March 2008 over Q4 March 2007.

India's leading manufacturer of oleochemicals Godrej Industries surged 2.14% to Rs 264.55 after posting 39.39% surge in net profit to Rs 108.81 crore on 8% increase in total income to Rs 787.97 crore in the year ended March 2008 over the year ended March 2007.

India's largest pharma company by market capitalisation Sun Pharmaceutical Industries fell 5.07% to Rs 1388.55 after the company failed to clinch the deal for Israeli drug major Taro Pharma. Sun Pharmaceutical on Wednesday, 28 May 2008 informed BSE of a notice received from Taro rejecting Sun's revised offer of $10.25 per share due to it being inadequate and no longer in the best interests of the company.

Among the side counters, Suzlon Energy (down 5.01% at Rs 275.05), Indian Bank (down 4.89% at Rs 122.55), Deccan Aviation (down 4.80% at Rs 117.05) and GMR Infrastructure (down 4.55% at Rs 134.30), slipped.

Among the gainers were IFCI (up 6.50% at Rs 62.30), IVRCL Infrastructures (up 6.50% at Rs 403.10), Sun TV Network (up 6.26% at Rs 331.75), and Bhushan Steel (up 5.10% at Rs 836.65).

Larsen & Toubro clocked the highest turover of Rs 449.63 crore on BSE. IFCI (Rs 341.60 crore), Piramal Life Sciences (Rs 281.86 crore), Chambal Fertilisers and Chemicals (Rs 223.52 crore) and Bajaj Finserve (Rs 199.56 crore), were the other turnover toppers on BSE in that order.

IFCI reported the highest volume of 5.42 crore shares on BSE. Chambal Fertilisers and Chemicals (2.48 crore shares), Nagarjune Fertilisers and Chemicals (1.91 crore shares), Ispat Industries (1.32 crore shares) and Aishwarya Telecom (1.16 crore shares), were the other volume toppers on BSE in that order.