ICICI Bank, Infosys lead 292-points Sensex fall

Key benchmark indices ended sharply lower led by heavy selling in metal, banking and IT shares. The market witnessed a bout of volatility in the last one hour of trade. European markets, which were trading sharply lower in early trade, pared losses after the Kremlin said Russian President Dmitry Medvedev had ordered an end to the military operation in Georgia.

India's industrial output rose 5.4% in June 2008 from a year earlier, above the previous month's upwardly revised 4.1%, data released by the government today, 12 August 2008, afternoon showed. Manufacturing production rose 5.9% in June 2008 from a year earlier

The BSE 30-share Sensex fell 291.79 points or 1.88% to 15,212.13. At the day’s low of 15,124.91, the Sensex lost 379.01 in afternoon trade. The index rose 75.86 points at day’s high of 15,579.78 at the onset of trading session.

The S&P CNX Nifty fell 68.15 points or 1.47% to 4552.25. Nifty August 2008 futures were at 4570.50, a premium of 18.25 points as compared to spot closing.

As per provisional data released by the stock exchanges after trading hours, foreign funds today, 12 August 2008, sold shares worth a net Rs 687.19 crore. Domestic funds sold shares worth a net Rs 7.65 crore.

The BSE Mid-Cap index was down 0.79% to 5,935.53 and the BSE Small-Cap index was down 0.70% to 7,220.42.

The market breadth was weak on BSE with 1100 shares advancing as compared to 1556 that declined. 73 shares remained unchanged.

BSE clocked a turnover of Rs 5761 crore as against Rs 5,497.23 crore on Monday, 11 August 2008. NSE’s futures & options turnover amounted to Rs 52461.81 crore as compared to Rs 39699.28 crore Monday, 11 August 2008.

The market had surged in the past few days. From a recent low of 14577.87 on 4 August 2008, the BSE Sensex rose 926.05 points or 6.35% to 15,503.92 on Monday, 11 August 2008. The barometer index Sensex is down 5074.86 points or 25.01% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 5994.64 points or 28.26% away from its all-time high of 21,206.77 struck on 10 January 2008.

Maruti Suzuki (down 5.23% at Rs 678.05), Jaiprakash Associates (down 4.58% at Rs 188.55), HDFC (down 4.03% at Rs 2466.60), and Tata Power (down 3.68% at Rs 1037.25), were the major losers from the Sensex pack.

India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries rose 0.70% at Rs 2342.25.

Metal shares declined sharply. Tata Steel (down 5.71% at Rs 607.95), Jindal Steel & Power (down 5.11% at Rs 1993.60), Sterlite Industries (down 4.46% at Rs 597.05), and Steel Authority of India (down 2.18% at Rs 143.70), slipped. The BSE Metal index underperformed the Sensex, falling 3.62% at 12,660.73.

Banking shares tumbled. India’s largest private sector bank by market capitlisation fell 4.20% at Rs 738.20. Axis Bank (down 5.03% at Rs 721.55), HDFC Bank (down 3.42% at Rs 1263.90), and State Bank of India (down 2.20% at Rs 1557.55), fell. The BSE Bankex index underperformed the Sensex, falling 3.44% at 7,437.27.

IT shares declined. India's second largest software exporter by sales Infosys Technologies fell 3.98% at Rs 1603.70. Wipro (down 2.06% at Rs 433.30), TCS (down 1.85% at Rs 818.20), and Satyam Computer (down 1.90% at Rs 402.75), slipped. The BSE IT index underperformed the Sensex, falling 2.84% to 3,771.98.

FMCG shares bucked weak market trend. GlaxoSmithkline Consumer Healthcare (up 1.70% at Rs 650), United Spirits (up 1.60% at Rs 1369.20), REI Agro (up 1.42% at Rs 1107), ITC (up 1.19% at Rs 195.50), and Hindustan Unilever (up 0.60% at Rs 242.95), moved up. The BSE FMCG index outperformed the Sensex, rising 0.69% to 2,222.15.

Biotechnology firm Biocon rose 5.18% to Rs 403.05 after the company said its board has fixed 12 September 2008 as the record date for issue of bonus shares in the ratio of 1:1.

Plumping systems maker Astral Poly Technik surged 13.91% to Rs 177.30 after the company said it has formed a joint venture company with a Kenyan firm in which Astral will hold 26% stake.

Lifestyle retail chain operator Trent surged 10% to Rs 545.85 after the company said its subsidiary Trent Hypermarket has entered into a franchise agreement with Tesco Plc of UK to drive its Star Bazaar hypermarket business. Tesco is one of the world's leading international retailers.

Drug maker Panacea Biotech spurted 1.63% at Rs 308.85 on reports the company bagged a $35-million drug supply order from UNICEF to supply pentavalent vaccines, the first Indian company to get such a contract. Pentavalent combines four vaccines - Diptheria, Tetanus, Pertussis, Hepatatis B and HIB (whopping cough).

Reliance Industries clocked a highest turnover of Rs 296.48 crore on BSE. Reliance Capital (Rs 252.33 crore), Infosys Technologies (Rs 185.83 crore), Reliance Natural Resources (Rs 176.16 crore), and Larsen & Toubro (Rs 166.59 crore), were the other turnover toppers on BSE in that order.

Landmark Property reported a highest volume of 2.53 crore shares on BSE. Reliance Natural Resources (1.70 crore shares), Chambal Fertiliser & Chemicals (1.60 crore shares), Nagarjuna Fertiliser & Chemical (1.20 crore shares), Kashyap Technologies (93.12 lakh shares), were the other volume toppers on BSE in that order.

In Europe, key benchmark indices in UK, Germany and France were up 0.04% to 0.25%. Asian indices were trading lower. Key benchmark indices in China, Japan, South Korea, Hong Kong, Singapore and Taiwan were down by between 0.25% to 1%.

US stocks rose on Monday, 11 August 2008, as oil prices closed lower for a sixth day, improving prospects for consumer and business spending. The Dow Jones industrial average rose 48.03 points, or 0.41%, to 11,782.35 on Monday, 11 August 2008. The Standard & Poor's 500 Index gained 9.00 points, or 0.69%, to 1,305.32. The Nasdaq Composite Index jumped 25.85 points, or 1.07%, to 2,439.95.

The Indian government on Monday, 11 August 2008, approved 10 road projects to be build with the help of private firms at a cost of Rs 10507 crore. The projects, spread over eight states, are part a plan to significantly improve infrastructure in the country.

The board of market regulator Securities & Exchange Board of India will review the regulatory framework governing participatory notes (PNs), at its meeting on Wednesday, 13 August 2008.