Sensex sheds 101 points in choppy trade

The market staged a smart intra-day rebound in second half of the day’s trading session led by recovery in Reliance Industries (RIL). Panic selling in early trade by wary investors kept market depressed in the first half. Fears in the market were that Left parties might withdraw support to the government, which may lead to early election. The market witnessed choppy swings throughout the day. Cement sector was the start sector of the day.

European markets, which opened before Indian market, were mixed. Asian markets which opened before Indian market recovered from early lows.

The Revolutionary Socialist Party (RSP), a part of the Left front, is reportedly pulling out of the United Progressive Alliance (UPA)-Left coordination committee. RSP has been seeking withdrawal of support to the UPA government since the last three years. The party is now planning to to step up pressure on the other Left parties to withdraw their support to the Manmohan Singh government, reports suggest

The 30-share BSE Sensex settled 100.62 points or 0.63% lower at 15,962.56, after opening 211.46 points lower at 15,851.72. Sensex shed 77.78 points at day’s high of 15,985.40 hit in mid-afternoon trade. The barometer index plunged 353.67 points at day’s low of 15,709.51 hit mid-afternoon trade.

The broader based S&P CNX Nifty fell 23.70 points or 0.5% at 4,715.90. Nifty swung wildly in a range of 4634 and 4739.30 during the day. Nifty June 2008 futures were at 4706, a discount of 9.9 points as compared to spot closing

The market breadth was weak on BSE with 1810 shares declining as compared to 860 that advanced. 55 remained unchanged.

The BSE Mid-Cap index declined 0.56% to 6,547.30 and the BSE Small-Cap index shed 0.97% to 7,882.29

The total turnover on BSE amounted to Rs 5229 crore as compared to Rs 4,809.14 crore yesterday, 2 June 2008. Turnover in NSE’s futures & options segment amounted to Rs 40448.71 crore as compared to Rs 35257.77 crore yesterday, 2 June 2008.

Sectoral indices on BSE displayed mixed trend. The BSE Oil & Gas index (up 2.02% to 10,412.49), BSE FMCG index (down 0.33% to 2,403.54), BSE Auto (up 0.27% at 4,370.05), BSE Health Care index (up 0.23% at 4,360.26), BSE Realty index (down 0.02% at 6,726.25), BSE Metal index (down 0.39% to 16,232.08), and BSE Consumer Durables index (up 0.68% to 4,222.18), outperformed the Sensex.

The BSE Power (down 2.64% to 2,754.20), BSE Bankex (down 0.77% at 7,397.25), BSE Capital Goods index (down 2.24% at 12,521.25), BSE TecK index (down 1.69% to 3,501.40), BSE PSU index (down 1.17% to 6,728.19), underperformed the Sensex.

Among the 30-member Sensex pack, 18 declined while the rest gained.

India’s largest cellular services provider Bharti Airtel slumped 4.23% to Rs 840.55 on 4.15 lakh shares. The stock had hit an intra-day high of Rs 868.65 in opening trade. It was the top loser from Sensex pack.

Select Sensex stocks staged a smart recovery from early lows. Reliance Infrastructure (down 3.72% to Rs 1126.90, off day’s low of Rs 1085), HDFC (down 2.87% to Rs 2458, off day’s low of Rs 2432), Bharat Heavy Electricals (down 2.86% to Rs 1550, off day’s low of Rs 1501.15) and Jaiprakash Associates (down 2.31% to Rs 207, off day’s low of Rs 200.20) recovered.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) advanced 2.31% to Rs 2410 on 11.65 lakh shares. As per reports, the Punjab Infrastructure Development Board (PIDB) has received proposals from Reliance Industries and Omaxe to set up an expressway from Pathankot to Ajmer and a ring road around Amritsar respectively.

India’s fourth largest software services exporter Satyam Computer Services shed 3.31% to Rs 501.50 after Upaid Systems said it has filed fresh claims as part of court proceedings against Satyam in a US court, which could raise possible damages beyond the earlier stated $1 billion.

In 2005, a patent infringement court case was initiated in Texas against third parties which revealed the use of forged signatures by Satyam employees on critical documents provided to Upaid by Satyam.

India’s largest private sector engineering company in terms of order book Larsen & Toubro declined 2.44% to Rs 2845. The company said on Monday, 2 June 2008, it is seeking shareholders' approval to transfer its medical equipment and systems business to a subsidiary or to sell it.

Private sector banking shares declined tracking fall in their American Depository Receipt (ADRs) on the New York Stock Exchange yesterday, 2 June 2008. ICICI Bank lost 0.90% to Rs 757.95 after its ADR slumped 6% and HDFC Bank shed 0.40% to Rs 1306 after its ADR fell 5.5%.

India’s largest bank in terms of market capitalisation State Bank of India (SBI) slipped 0.94% to Rs 1381

India’s second largest software services exporter Infosys Technologies was down 1.38% to Rs 1924, off day’s low of Rs 1882. The company received two patents from US Patent and Trademark Office in the areas of holography and mobile communications. The company made this announcement during trading hours today, 3 June 2008.

India’s largest pharma company in terms of sales Ranbaxy laboratories surged 3.67% to Rs 532.90 on 4.34 lakh shares. It was the top gainer from Sensex pack

Cement shares advanced on fresh buying. India's largest cement company in terms of sales ACC advanced 3.50% to Rs 648. The company has reportedly short listed some companies for acquisition. ACC has cash reserves of Rs 1000 crore which it would use for expansion and acquisition, reports suggest.

India’s second largest cement company in terms of sales Ambuja Cements rose 0.16% to Rs 92.40 even on company said its cement shipments fell 1% to 1.51 million tonnes in May 2008 over May 2007. Ambuja Cements' production fell 1% to 1.49 million tonnes in May 2008 over May 2007.

UltraTech Cement Company (up 1.28% to Rs 650), Prism Cement (up 2.44% to Rs 37.80), India Cements (up 4.38% to Rs 165.85), and Mysore Cements (up 6.42% to Rs 35.65) advanced.

As per reports, the government has done a flip flop on tax refunds for cement exports today, by withdrawing the benefit that was allowed only yesterday. The Directorate General of Foreign Trade revoked yesterday's notification which had restored the duty entitlement pass book scheme refund of local taxes on cement exports.

India's largest truck maker by sales Tata Motors rose 1.43% to Rs 571 after the company said on Monday it had completed the $2.3 billion acquisition of British luxury brands Jaguar and Land Rover.

Wipro (up 2.57% to Rs 508), ONGC (up 1.49% to Rs 845.55), DLF (up 2.53% to Rs 582), and Cipla (up 1.49% to Rs 210.85), edged higher from Sensex pack.

Reliance Industries was the top traded counter on BSE with turnover of Rs 278.70 crore followed by Reliance Capital (Rs 211.62 crore), Essar Oil (Rs 165.49 crore), Reliance Petroleum (Rs 155.16 crore), and IFCI (Rs 128.35 crore), in that order.

IFCI topped the volumes chart clocking volumes of 2.14 crore shares followed by Ispat Industries (1.45 crore shares), Aishwarya Telecom (1.12 crore shares), Chambal Fertilisers (98 lakh shares) and Reliance Natural Resources (96 lakh shares), in that order.

Shares of air carriers slipped after they raised fuel surcharge in line with rising jet fuel prices. Deccan Aviation (down 6.15% to Rs 104.50), SpiceJet (down 2.56% to Rs 30.50) and Jet Airways (down 0.33% to Rs 539.55) edged lower.

Punj Lloyd slipped 1.80% to Rs 281.95 after tumbling 10.53% yesterday, 2 June 2008. The sell-off was triggered after the company’s auditors commented that no provision has been made for expected losses of Rs 305 crore arising out of one of the contracts.

Kirloskar Brothers declined 1.77% to Rs 222.50 even as the company said it is reorganising its business into nine divisions to achieve a revenue target of $1 billion by 2011.

Adhunik Metaliks rose 2.85% to Rs 179.50 after its board approved initial public offer of the company's 100% subsidiary viz. Orissa Manganese & Minerals. The company announced this after market hours on Monday, 2 June 2008.

Mahanagar Telephone Nigam rose 2.50% to Rs 96.35 after its American Depository Receipt surged 13.8% to $4.61 on the New York Stock Exchange on Monday, 2 June 2008.

ABB declined 2.60% to Rs 999 despite winning an order worth Rs 295 crore to provide power solutions to JSW Energy for its upcoming 1200 megawatt thermal power plant in Ratnagiri, Maharashtra.

National Aluminium Company fell 4.26% to Rs 485 after the company reportedly lowered price of flat-rolled products by as much as Rs 3,500 a tonne to Rs 159,400 a tonne

Prime Minister Manmohan Singh yesterday, 2 June 2008, indicated that the government is left with no option but to hike the fuel prices in the wake of soaring global crude oil prices. However government's move to hike fuel price will face challenge from Left, and may propel inflation above 10%.

On the other hand, if government does not hike prices, oil marketing companies will go bankrupt, spoiling its report card.

European markets, which opened before Indian market, were mixed in opening session. Key benchmark indices in United Kingdom (up 0.03% to 6,009.40), and France (up 0.06% to 4,938.15), rose. However Germany’s DAX index slipped 0.46% to 6,976.87

Asian markets, which opened before Indian market, rebounded from early lows, but were still in the red. Shanghai Composite (down 0.65% at 3,436.80), Japan's Nikkei (down 1.60% at 14,209.17), Hong Kong's Hang Seng (down 1.83% at 24,375.76), Taiwan's Taiwan Weighted (down 1.64% at 8,581.35), Straits Times (down 1.13% at 3,151.98) and South Korea's Seoul Composite (down 1.44% at 1,821), edged lower.

US markets declined yesterday, 2 June 2008, on renewed fears that the credit crunch is yet to run its course after S&P downgraded debt ratings of three big securities companies. In the economic news, the May Institute of Supply Management (ISM) index, rose 2.1%, suggesting a slight contraction in United States manufacturing activity.

The Dow Jones industrial average plunged 134.50, or 1.06%, to 12,503.82. The S&P 500 index slipped 14.71 points, or 1.05%, to 1,385.67. The Nasdaq Composite index was down 31.13 points, or 1.23%, to 2,491.53.

US light crude for July delivery fell 50 cents a barrel to $127.26 today, 3 June 2008, as the start of the hurricane season stirred concerns that oil and natural gas output could be disrupted in the Gulf of Mexico. London Brent crude fell 80 cents to $127.22 a barrel today.