Sensex shed 502 points on weak global cues; ICICI Bank, RIL tumble

The market slumped today after reports filtered of seven blasts in Bangalore in afternoon. Weak global cues and profit booking by investors after a recent sharp surge in a short span also weighed on the indices. Index pivotals ICICI Bank and Reliance Industries plunged.

As per provisional data released by the stock exchanges after trading hours, foreign funds today, 25 July 2008, sold shares worth a net Rs 565.73 crore. Domestic funds sold shares worth a net Rs 302.41 crore.

The 30-share BSE Sensex fell 502.07 points or 3.40% at 14,274.94. The index lost 566.38 points at the day's low of 14,210.63, hit in late trade. Sensex lost 292.62 points at the day's high of 14,484.39, hit in early trade.

The broader based S&P CNX Nifty slipped 121.7 points or 2.74% at 4311.85. Nifty July 2008 futures were at 4441.90, at a premium of 13.45 points as compared to spot closing.

US stocks declined sharply on Thursday, 24 July 2008, after a report showing yet another drop in US home sales prompted investors to take profits in financial shares, which had rallied over the past week. The Dow Jones industrial average fell 283.10 points, or 2.43%, to close at 11,349.28. The Standard & Poor's 500 Index slid 29.65 points, or 2.31%, to 1,252.54, while the Nasdaq Composite Index shed 45.77 points, or 1.97%, to 2,280.11.

One person was killed and several persons have been injured in seven blasts in the outskirts of Bangalore today afternoon. Although the police have not yet been able to ascertain the cause of the blast, reports suggest that it may be an act of terror.

Oil rose above $126 a barrel on Friday, 25 July 2008, extending a rebound a day earlier that helped stem a nearly two-week dive as buyers crept back into the market before the weekend, superceding lingering demand worries. Crude oil for September delivery was at $126.35 a barrel, up 86 cents, on the New York Mercantile Exchange (NYMEX) at 16:56 IST.

European markets, which opened after Indian market, were in red. Key benchmark indices in UK, France and Germany were down 0.90% to 1.48%. Asian markets, which opened before Indian market, dropped. Key benchmark indices in Hong Kong, Japan, South Korea, China and Singapore were down by between 1.50% to 1.97%.

The BSE Mid-Cap index fell 0.15% to 5,572.59 and the BSE Small-Cap index was down 0.25% to 6,778.78. Both these indices outperformed the Sensex.

The barometer index BSE Sensex is down 6012.05 points or 29.63% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6931.83 points or 32.68% away from its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth was negative on BSE with 1154 shares advancing as compared to 1460 that declined. 77 remained unchanged.

BSE clocked a turnover of Rs 5834 crore as against Rs 7,445.07 on Thursday, 24 July 2008. NSE's futures & options (F&O) segment turnover was Rs 53,163.45 crore, which was lower than Rs 58129.42 crore on Thursday, 24 July 2008.

India’s largest private sector bank by assets ICICI Bank slumped 9.62% to Rs 656.85 after its American depository receipt (ADR) fell more than 10% in the US market yesterday. The stock is witnessing a major selling pressure since Thursday, 24 July 2008 after it rose nearly 42% to Rs 738.25 in just five trading session to Wednesday, 23 July 2008 from Rs 519.60 on 16 July 2008. The stock lost 1.55% on Thursday, 24 July 2008.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries slipped 6.90% to Rs 2147.35 after the company met forecasts with a 13% rise in quarterly profit, but analysts were still disappointed after four quarters of 20%-plus earnings growth. The firm posted 13.2% growth in net profit to Rs 4,110 crore on a 41% growth in turnover to Rs 41,805 crore in Q1 June 2008 over Q1 June 2007. Nearly 95% of the increase in turnover was due to increase in prices, with volume increases accounting for the rest, said a press release from the company.

Other major Sensex losers were, HDFC Bank (down 7.17% at Rs 1127.15), Housing Development Finance Corporation (down 5.66% at Rs 2221.55), Jaiprakash Associates (down 4.50% at Rs 163.45), ONGC (down 4.31% at Rs 983), and Bharat Heavy Electricals (down 4.01% at Rs 1654.90).

Top Sensex gainers were, Ranbaxy Laboratories (up 3.12% at Rs 481.25), ACC (up 2.41% at Rs 574.25), Hindustan Unilever (up 1.91% at Rs 232.20), Grasim Industries (up 0.70% at Rs 1842.95), and Satyam Computer (up 1.41% at Rs 374.55).

Banking shares dropped. Axis Bank (down 6.44% at Rs 712.50), Canara Bank (down 4.06% at Rs 183.15), Yes Bank (down 3.41% at Rs 127.35), Kotak Mahindra Bank (down 3.35% at Rs 559.65), and State Bank of India (down 2% at Rs 1448.75), slipped. The BSE Bankex underperformed the Sensex, falling 5.75% to 6,751.86.

Oil & gas stocks declined sharply after crude oil prices bounced back from recent low. Reliance Petroleum (down 4.52% at Rs 159.65), GAIL (India) (down 2.64% at Rs 366.65), Reliance Natural Resources (down 3.34% at Rs 95.50 ), Cairn India (down 1.09% at Rs 221.85), and HPCL (down 0.20% at Rs 229.70), slipped. The BSE Oil & Gas index underperformed the Sensex, falling 5.08% to 9,504.42.

Realty shares slipped. Indiabulls Real Estate (down 10.21% at Rs 294.65), Housing Development & Infrastructure (down 6.20% at Rs 473), and DLF (down 3.24% at Rs 490.75), declined. The BSE Realty index underperformed the Sensex, falling 3.84% to 5,029.06.

Mangalore Refinery & Petrochemicals jumped 16.07% to Rs 67.45 after its net profit surged 129.4% to Rs 845.39 crore on a 42.9% increase in sales to Rs 10662.46 in Q1 June 2008 over Q1 June 2007. The firm declared the results during market hours today.

Container handler Gateway Distriparks rose 0.53% to Rs 85.15 after its board approved buyback of shares at a price not exceeding Rs 110 per share for an aggregate amount of Rs 64 crore.

Media firm TV Today Network surged 12.64% to Rs 107.80 after the company said its board will meet on 31 July 2008 to consider buyback of equity shares.

Chemicals maker Balaji Amines was locked at 20% upper limit at Rs 120.20 after the company posted 67.2% rise in net profit to Rs 5.15 crore on 48.6% increase in net sales to Rs 73.08 crore in Q1 June 2008 over Q1 June 2007.

Reliance Industries clocked the highest turnover of Rs 443.93 crore on BSE. Reliance Capital (Rs 374.65 crore), Reliance Natural Resources (Rs 321.39 crore), Reliance Petroleum (Rs 195.87 crore), and Reliance Infrastructure (Rs 166.42 crore), were the other turnover toppers on BSE in that order.

Reliance Natural Resources reported the highest volume of 3.34 crore shares. Ispat Industries (1.76 crore shares), Mangalore Refinery & Petrochemicals (1.41 crore shares), Nagarjuna Fertilizers & Chemicals (1.39 crore shares), and Chambal Fertilizers & Chemicals (1.23 crore shares), were the other volume toppers on BSE in that order.

Inflation based on the wholesale price index rose 11.89% in 12 months to 12 July 2008, a tad lower than previous week's annual rise of 11.91%, government data released. Although, the annual inflation rate held just below previous week’s level the rate has not cooled enough to banish expectations of monetary tightening next week, reports suggest. The Reserve Bank of India (RBI) holds a review on Tuesday, 29 July 2008 and market expects it to raise the key lending rates to cool effects of higher fuel prices.