Market drifts lower on profit taking; rupee rise hits IT stocks

The market slipped today as investors booked profits after a sharp run-up in stocks for five straight sessions. Weak European market also weighed on the sentiments. Caution also prevailed ahead of inflation figures to be announced after the market hours today.

Selling was broad based. However, severity of fall was more on IT sector stocks as the rupee hit its highest in more than two months. Oil & gas stock bucked the weak market trend as crude oil prices slipped further.

The 30-share BSE Sensex lost 165.27 points or 1.11% at 14,777.01. The index lost 334.23 points at the day’s low of 14,608.05, hit in mid-afternoon trade. The index gained 187.81 at day's high of 15,130.09 hit at the onset of trading session.

The broader based S&P CNX Nifty fell 43.25 points or 0.97% at 4433.55. Nifty July 2008 futures were at 4441.90, at a premium of 8.35 points as compared to spot closing.

The BSE Mid-Cap index was down 0.62% to 5,580.90 and the BSE Small-Cap index shed 0.24% to 6,796.11. Both these indices outperformed the Sensex.

The market had surged in the last five days. Sensex had risen 2366.48 points or 18.81% in five trading sessions to 14,942.28 on Wednesday, 23 July 2008, from a low of 12,575.80 on 16 July 2008.

The barometer index is down 5509.98 points or 27.16% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6429.76 points or 30.31% away from its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth was weak on BSE with 1258 shares advancing as compared to 1458 that declined. 67 remained unchanged. The breadth was strong earlier in the day.

BSE clocked a turnover of Rs 7398 crore as against Rs 7,467 on Wednesday, 23 July 2008. NSE's futures & options (F&O) segment turnover was Rs 58,129.42 crore, which was lower than Rs 68,010.68 crore on Wednesday, 23 July 2008.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 1.81% to Rs 2306.55, ahead of its Q1 June 2008 results. After trading hours, RIL reported 13.2% growth in net profit to Rs 4110 crore on 40.65% increase in total income to Rs 41,805 crore in Q1 June 2008 over Q1 June 2007.

The top Sensex gainers were, ONGC (up 3.25% at Rs 1027.25), DLF (up 2.35% at Rs 507.20), Maruti Suzuki (up 1.80% at Rs 617.90), Reliance Infrastructure (up 1.23% at Rs 1027), HDFC Bank (up 0.70% at Rs 1214.20).

Top Sensex losers were, Tata Steel (down 5.40% at Rs 631), ACC (down 5.13% at Rs 560.75), Reliance Communication (down 4.52% at Rs 501.50), and State Bank of India (down 4.24% at Rs 1478.35).

India’s largest listed cellular services provider by sales Bharti Airtel fell 2.21% at Rs 797.95. The stock came off early high of Rs 861. Before trading hours today, Bharti reported 44.86% growth in net profit to Rs 2046.79 crore on a 39.72% increase in revenue to Rs 7952.32 crore in Q1 June 2008 over Q1 June 2007.

India’s largest private sector bank by assets ICICI Bank fell 1.55% at Rs 726.80.

Oil stocks rose. ONGC (up 3.25% at Rs 1,027.25), BPCL (up 2.25% at Rs 316.20), Cairn India (up 1.84% at Rs 224.30), Indian Oil Corporation (up 0.90% at Rs 404.15), and HPCL (up 0.48% at Rs 230.15), jumped. The BSE Oil & Gas index outperformed the Sensex, rising 1.51% to 10,013.40.

Reliance Natural Resources, Anil Dhirubhai Ambani Group-controlled gas transportation firm, spurted 9.47% at Rs 98.80. Fast-tracking the legal proceedings over the KG basin gas dispute between Reliance Industries (RIL) and Reliance Natural Resources (RNRL), the Bombay High court on Wednesday, 23 July 2008 decided to begin daily hearing between 12:00 IST and 14:00 IST every day from Thursday, 24 July 2008.

IT stocks slipped on strong domestic currency. India's second largest software exporter by sales Infosys Techologies fell 2.38% to Rs 1,565.620. TCS (down 6.49% at Rs 802.75), Tec Mahindra (down 6.23% at Rs 706.45), Satyam Computer (down 2.21% at Rs 369.35), and Wipro (down 0.09% at Rs 407.40), slipped. The BSE IT index underperformed the Sensex, falling 2.77% to 3,630.04.

Metal stocks tumbled. Jindal Steel & Power (down 6.11% at Rs 1,975.45), Tata Steel (down 5.40% at Rs 631), Sesa Goa (down 3.31% at Rs 3,194.85), Steel Authority of India (down 2.71% at Rs 142.05), and Sterlite Industries (down 2.65% at Rs 628), declined.

Drug maker Bliss GVS Pharma surged 20% to Rs 46.25 after the company said its board will meet on 29 July 2008 to consider issue of bonus shares.

Anil Dhirhai Ambani-controlled Reliance Power rose 2.95% to Rs 176 on reports it is set to enter the power equipment manufacturing sector in collaboration with the $7-billion global major Shanghai Electric.

State-run international trading firm MMTC rose 0.32% to Rs 24385.70 on reporting 38.1% surge in net profit to Rs 53.76 crore on a 60.8% rise in sales to Rs 9777.78 crore in Q1 June 2008 over Q1 June 2007.

Agrochemical maker United Phosphorous rose 3.04% to Rs 320.25 after it reported 57.9% rise in net profit to Rs 46.63 crore on 54.26% rise in total income to Rs 553.67 crore in Q1 June 2008 over Q1 June 2007. The company also approved 1-for-1 bonus issue of shares.

Cummins India surged 4.27% to Rs 289.10 on reporting 37.83% surge in net profit to Rs 88.24 crore on a 31.69% rise in total income to Rs 744.70 crore in Q1 June 2008 over Q1 June 2007.

Reliance Natural Resources reported a highest turnover of Rs 718.82 crore on BSE. Relance Capital (Rs 606.04 crore), Reliance Power (Rs 318.99 crore), Reliance Industries (Rs 283.70 crore), and Reliance Infrastructure (Rs 218.09 crore), were the other turnover toppers on BSE in that order.

Reliance Natural Resources clocked a highest volume of 7.29 crore shares on BSE. Chambal Fertilisers & Chemicals (1.94 crore shares), Nagarjuna Fertlisers & Chemicals (1.84 crore shares), Reliance Power (1.77 crore shares), and IFCI (1.73 crore shares), were the other volume toppers on BSE in that order.

European markets were weak. In Europe, key benchmark indices in UK, France and Germany were down by 0.51% to 0.98%.

Asian markets, which opened before Indian market, were mixed. Key indices in China, Japan, South Korea and Taiwan were up 0.80% to 2.55%. However, key indices in Singapore and Hong Kong were down 0.04% to 1.26%.

US stocks rose on Wednesday, 23 July 2008, as financial shares climbed on hopes lawmakers will approve a rescue plan for mortgage finance companies Fannie Mae > and Freddie Mac and as the price of oil fell. The Dow Jones industrial average rose 29.88 points, or 0.26%, to 11,632.38, while the Standard & Poor's 500 Index gained 5.11 points, or 0.40%, to 1,282.11, a three-week closing high. The Nasdaq Composite Index was up 21.92 points, or 0.95 percent, at 2,325.88.