Realty, auto, metal shares drag indices lower for fourth straight day

The key benchmark indices suffered losses for the fourth straight day on unabated selling pressure in blue-chip stocks. This was despite a firm start triggered by a sharp fall in crude oil prices yesterday, 15 July 2008. Both the barometer indices BSE Sensex and S&P CNX Nifty registered fresh 15-month low. Volatility was the hallmark of today�s trade. The market breadth was weak. Real estate stocks crashed. Ranbaxy Labs was the star of the day, galloping over 15% on high volumes.

As per provisional data, foreign funds sold shares worth a net Rs 229 crore while domestic funds bought shares worth a net Rs 14.12 crore today, 16 July 2008.

Global cues were mixed. European markets, which opened after Indian market, slipped after firm start. Asian markets, which opened before Indian market, were mixed.

Crude oil prices declined sharply on Tuesday, 15 July 2008. On the New York Mercantile Exchange, August crude settled down $6.44, or 4.44%, at $138.74 a barrel yesterday, 15 July 2008.

Political uncertainty will continue to weight on the Indian market in the near term. The government is holding a two-day special session of parliament on 21 July 2008 and 22 July 2008 to seek vote of confidence after it was reduced to minority following withdrawal of support by Left parties on 8 July 2008. The government hopes to retain power due to backing from Samajwadi Party, a regional party in Uttar Pradesh.

The 30-share BSE Sensex was down 100.39 points or 0.79% to 12,575.80. It touched a fresh 15-month low of 12,514.02 in mid-afternoon trade. At the day�s low the Sensex lost 162.17 points. The Sensex opened with 133.74 point upward gap at 12,809.93 and advanced further to touch a high of 12,935.25 in mid-morning trade. At the day's high, the Sensex rose 259.06 points.

The broader based S&P CNX Nifty was down 44.4 points or 1.15% at 3816.70. Nifty hit a 15-month low of 3,790.20 in intra-day trade. Nifty July 2008 futures were at 3821.20, at a premium of 4.50 points as compared to spot closing.

The BSE Sensex is down 7711.19 points or 38.01% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 8630.97 points or 40.69% away from its all-time high of 21,206.77 struck on 10 January 2008.

BSE clocked a tunover of Rs 4557 crore today as compared to Rs 4,304.08 crore on Tuesday, 15 July 2008. NSE's futures & options (F&O) segment turnover was Rs 45,738.28 crore, which was higher than Rs 44,122.92 crore on Tuesday, 15 July 2008.

The BSE Mid-Cap index slipped 1.46% to 5,088.28 and the BSE Small-Cap index fell 1.66% to 6,324.45. Both these indices underperformed the Sensex.

The market breadth was weak on BSE with 1788 shares declining as compared to 827 that advanced. 75 remained unchanged.

Most sectoral indices on BSE settled with losses. The BSE Realty index (down 6.31% at 4,219.12), BSE Auto (down 2.38% at 3,394.49), BSE Oil & Gas index (down 1.03% to 8,588.39), BSE PSU index (down 1.19% to 5,752.70), BSE Consumer Durables index (down 2.23% to 3,391.23), BSE Health Care index (up 1.59% at 3,971.41), BSE Metal index (down 2.37% to 11,935.92), BSE Bankex (down 1.96% at 5,400.24), underperformed the Sensex.

The BSE Capital Goods index (down 0.15% at 10,160.53), BSE Power (down 0.65% to 2,209.88), BSE TecK index (down 0.17% to 2,784.50), BSE FMCG index (up 0.85% to 1,897.46), and BSE IT index (down 0.63% to 3,566.98), outperformed the Sensex.

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

India�s largest pharma company in terms of sales Ranbaxy Laboratories was the star of the day�s trading session. The stock galloped 15.10% to Rs 471.05 on high volumes of 69.90 lakh shares after the company's chief executive Malvinder Singh said in a televised conference that the deal with Japan's Daiichi Sankyo remains on track. He also said that the firm would provide all information required for a probe by the US authorities within the next month. It was the top gainer from Sensex pack.

Ranbaxy shares tumbled nearly 23% in last two trading sessions to Rs 409.25 on 15 July 2008 from Rs 531.45 on 11 July 2008 on concerns a US probe may impact Ranbaxy's latest deal with Daiichi Sankyo. US government has filed a motion, seeking certain documents from Ranbaxy over doubts of it indulging in alleged malpractices like concealing and forging crucial data to get marketing approval for its products in the US.

Telecom duo saw divergent trend. While India�s largest cellular services provider in terms of market capitalisation Bharati Airtel advanced 2.68% to Rs 729, Reliance Communications, the country�s second largest cellular services provider in terms of market capitalisation lost 1.13% to Rs 401.50.

Two oil exploration heavyweights saw divergent trend. Oil & Natural Gas Corporation (ONGC) gained 2.60% to Rs 867 while Cairn India lost 3.96% to Rs 226.50

India�s largest cigarette manufacturer in terms of sales ITC gained 2.43% to Rs 164.05. As per reports Amar Singh, whose Samajwadi Party is the key to the survival of the ruling Congress-led UPA Government wants the Unit Trust of India (UTI) and other public financial institutions to divest their stake in ITC in favour of British American Tobacco (BAT). Public financial institutions have a combined 37.62% (as at end March 2008) holding in ITC, which includes 11.90% of UTI and 13.65% of Life Insurance Corporation of India.

India�s largest engineering and construction company in terms of order book Larsen & Toubro (L&T) gained 0.51% to Rs 2291.10 on reports the company plans to form a Rs 2000-crore forging venture with Nuclear Power Corporation of India (NPCIL).

Bharat Heavy Electricals, the country�s largest power equipment maker in terms of sales, was up 1.31% to Rs 1390 on reports the company is in talks with Reliance Industries and Oil & Natural Gas Corporation to build offshore oil rigs.

Hindustan Unilever (up 2.53% to Rs 217), Ambuja Cements (up 1.43% to Rs 81.35), and Reliance Infrastructure (up 1.05% to Rs 755.50), edged higher from Sensex pack.

India�s largest private sector firm by market capitalization and oil refiner Reliance Industries shed 1.10% at Rs 1955.10 on 15.51 lakh shares. The stock moved in a range of Rs 2024.90 and Rs 1922.50 during the day.

Real estate stocks cracked on renewed selling pressure. India�s largest real estate developer DLF lost 7.48% to Rs 395 on 22.13 lakh shares. It was the top loser from Sensex pack.

Unitech (down 10.68% to Rs 137.15), Sobha Developers (down 4.51% to Rs 229.55), Omaxe (down 5.55% to Rs 115.55), Ansal Infrastructures (down 4.16% to Rs 82.35), and Anant Raj Industries (down 2.95% to Rs 119), were the other losers from the realty pack.

India's largest software services provider TCS lost 3.16% to Rs 726 ahead of its Q1 June 2008 results due today. The stock had hit a high of Rs 769 in early trade. The stock also hit an all time low of Rs 719.10 in intra-day trade.

Other IT pivotals were mixed. Satyam Computer Services (down 0.49% to Rs 396.25), and Wipro (down 1.16% to Rs 373.55) fell.

However India's second largest software services provider Infosys staged a solid recovery from day�s low of Rs 1527.35 to settle 0.65% at Rs 1554.10

Auto stocks dropped despite a sharp fall in crude oil yesterday, 15 July 2008. Tata Motors (down 1.72% to Rs 397.05), Mahindra & Mahindra (down 5.55% to Rs 493), Hero Honda Motors (down 2.38% to Rs 638), and Bajaj Auto (down 5.16% to Rs 455), slipped from auto pack.

Among the metal pack, National Aluminium Company (down 5.55% to Rs 354), Hindalco Industries (down 0.55% to Rs 137.15), Sesa Goa (down 5.25% to Rs 2746.25), Sail (down 2.87% to Rs 128.50), and Tata Steel (down 2.08% to Rs 633.55), slipped.

India's largest dedicated housing finance company in terms of operating income HDFC fell 3.92% to Rs 1729.70 after the company reported 25.56% rise in net profit to Rs 468.11 crore on a 26.67% increase in total income to Rs 2318.62 in Q1 June 2008 over Q1 June 2007. The stock hit a low of 1690, a 52-week low.

Banking shares extended yesterday�s losses. HDFC Bank (down 0.70% to Rs 910), ICICI Bank (down 1.81% to Rs 519.65), and State Bank of India (down 3.21% to Rs 1140), slipped.

Fears over the solvency of major Western banks rattled finacial stocks across the globe on Tuesday, 15 July 2008, after the US Federal Reserve and Treasury Department mounted a rescue plan to help support top mortgage lenders Fannie Mae and Freddie Mac following the sharp fall last week in their stock prices.

Jaiprakash Associates (down 5.88% to Rs 136.80), and ACC (down 2.35% to Rs 514), were the other losers from Sensex pack.

Ranbaxy Laboratories was the top traded counter on BSE with turnover of Rs 319.50 crore followed by Reliance Industries (Rs 308.53 crore), Reliance Capital (Rs 294.84 crore), Reliance Petroleum (Rs 285.18 crore), and Reliance Infrastructure (Rs 114.47 crore), in that order.

Reliance Petroleum led the volumes chart notching volumes of 1.81 crore shares followed by Reliance Natural Resources (1.75 crore shares), IFCI (1.35 crore shares), Ispat Industries (1.29 crore shares) and Chambal Fertilisers (1 crore shares), in that order

S Kumar Nationwide swung wildly in choppy trade. The stock which was down around 23% at day�s low of Rs 52.55 staged a solid rebound. It ended 5.43% lower at Rs 64.50 on volumes of 14.78 lakh shares. The company today reported 37.03% fall in net profit to Rs 26.86 crore on 1.2% rise in total income to Rs 383.91 crore in Q1 June 2008 over Q1 June 2007. The company announced the results during trading hours today, 16 July 2008.

Sugar shares surged on reports sugar price may rise as India�s sugar output is likely to fall as much as 25% to 20 million metric tonne in the year ended September 2009. Shree Renuka Sugars (up 7.65% to Rs 112.65), Balrampur Chini Mills (up 3.63% to Rs 75.75), Uttam Sugars (up 2.08% to Rs 51.50), and Dhampur Sugar (up 5.08% to Rs 45.50), surged.

This figure is less than the 22 million tonne forecast by the London-based International Sugar Organisation earlier this month. India is the second largest sugar producer in the world after Brazil.

State run oil-marketing companies were mixed after a sharp fall in crude oil prices yesterday, 15 July 2008. Hindustan Petroleum Corporation (up 2.16% to Rs 198.40), Bharat Petroleum Corporation (up 3.66% to Rs 254) rose. However Indian Oil Corporation slipped 0.19% to Rs 342.

Gammon India was up 0.95% to Rs 214 on reports the company is in talks to acquire more than 50% stake in Italy-based power firm Sofinter in a deal valued at more than $70 million.

Novartis India gained 3.22% to Rs 281.90 on reporting 29.8% surge in net profit to Rs 29.64 crore on 10.70% rise in net sales to Rs 153.68 crore in Q1 June 2008 over Q1 June 2007. The company announced the results after trading hours on Tuesday, 15 July 2008.

BGR Energy Systems spurted 13.38% to Rs 248.80 after the company said it has won a contract worth Rs 4900 crore for engineering, procurement and construction of a thermal power project in Rajasthan. The company made this announcement during trading hours today, 16 July 2008.

Sintex Industries rose 2.70% to Rs 289 on reports the company is set to acquire US-based industrial composite moulder, Continental Structural Plastics.

Thermax gained 2.98% to Rs 145 after the company said it has bagged an order worth Rs 820 crore from a major refiner to supply pulverized coal fired boilers for its captive cogeneration plant. The company made this announcement during trading hours today, 16 July 2008.

Sentiment may continue to remain cautious after the Fed Chairman Ben Bernanke yesterday, 15 July 2008 said that while the likelihood is high that the US economy would slow further, the outlook for inflation had also intensified, providing little comfort for investors and consumers struggling in stagflationary conditions.

European markets, which opened after Indian market, were in the red. Key benchmark indices in UK, Germany and France were down by between 0.45% and 0.94%.

Asian markets, which opened after Indian markets, were trading mixed today, 16 July 2008. Key benchmark indices in Japan, Singapore and Hong Kong were up by between 0.05% and 0.23%. However indices from Taiwan, China, Singapore and South Korea were down by between 0.13% and 2.65% respectively.

US markets settled mixed yesterday, 15 July 2008, on worries about the success of the government plan to rescue mortgage finance companies Freddie Mac and Fannie Mae and to stabilise the financial sector. The Dow Jones industrial average declined 92.65 points, or 0.84%, to 10,962.54. The Standard & Poor's 500 index lost 13.39 points, or 1.09%, to 1,214.91, while the Nasdaq Composite gained 2.84 points, or 0.13%, to 2,215.71.