RIL leads 248-point Sensex fall

Intense selling in index heavyweight Reliance Industries (RIL) and bank stocks triggered a sell-off in late trade. The BSE 30-share Sensex lost 248.45 points. Concerns of high inflation and steady rise in crude oil prices for three consecutive sessions weighed on the sentiments. Volatility was high in the second half of the trading session ahead of the expiry of August 2008 derivatives contracts. The market breadth was weak.

Bharat heavy Electricals, DLF and TCS shed over 3%. Reliance Industries (RIL) lost nearly 3%. Tata Power rose close to 1.5%.

As per provisional data released by the stock exchanges after trading hours, foreign funds today, 28 August 2008, sold shares worth a net Rs 187.19 crore. Domestic funds bought shares worth a net Rs 390.62 crore.

India's inflation based on the wholesale price index is forecast to have risen to a fresh 16-year high for the year through 16 August 2008. The government will release the inflation data after market hours today, 28 August 2008

The BSE 30-share Sensex lost 248.45 points or 1.74% at 14,048.34. At the day’s low of 14,002.43 struck in late trade, the Sensex lost 294.36 points. Sensex gained 50.40 points at day’s high of 14,347.19 hit in early trade.

The S&P CNX Nifty slipped 78.10 points or 1.82% to 4214. Nifty September 2008 futures were at 4229.50, at a premium of 15.50 points as compared to spot closing. August 2008 derivatives contracts expired today, 28 August 2008.

As per reports, marketwide rollover of positions from August 2008 series to September 2008 series stood at 62% while that of Nifty was at 56%, as of Wednesday, 26 August 2008. The rollovers are in line with those in previous series.

The BSE Sensex is down 6238.65 points or 30.75% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7158.43 points or 33.75% away from its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth was weak on BSE with 1718 shares declining as compared to 912 that advanced. 84 remained unchanged.

The BSE Mid-Cap indices fell 1.36% to 5,608.85 and the BSE Small-Cap index lost 1.13% to 6,782.30. Both these indices outperformed the Sensex.

The total turnover on BSE amounted to Rs 4035 crore as compared to Rs 3,701.35 crore yesterday, 27 August 2008. NSE's futures & options (F&O) segment turnover was Rs 66,164.24 crore, which was higher than Rs 47,535.27 crore on Wednesday, 27 August 2008.

Among the 30-member Sensex pack, 24 declined while the rest advanced.

India's largest private sector aluminium maker by sales Hindalco Industries settled at Rs 121.40 on 14.80 lakh shares. The stock started trading on an ex-rights basis today. The right issue is in the ratio of 3:7, priced at Rs 96 each. The stock also turned Rs 1.85 ex-dividend from today.

India’s largest real estate developer DLF plunged 3.31% to Rs 462.35 on 17.06 lakh shares. It was the top loser from Sensex pack. Other real estate shares Unitech (down 2.21% to Rs 152.90), Ansal Infrastrcutures (down 3.66% to Rs 96), Sobha Developers (down 3.31% to Rs 257), edged lower. However Akruti City spurted 8.76% to Rs 895.55. The BSE Realty lost 1.74% at 4,753.07.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) lost 2.88% to Rs 2086 on 12.45 lakh shares. On 26 Tuesday, August 2008, RIL confirmed media reports that it is planning to transfer 80% of its participatory interest (PI) in the D6 block in the Krishna Godavari (KG) basin to four unlisted subsidiaries. The BSE Oil & Gas Index fell 2.57% at 9,407.79.

Banking shares dropped ahead of the inflation data due after market hours today, 28 August 2008. ICICI Bank (down 2.28% to Rs 634.05), HDFC Bank (down 0.44% to Rs 1228), and State Bank of India (down 1.97% to Rs 1304.70), declined. BSE's banking sector index Bankex lost 1.77% to 6,596.41

Cement shares slipped after recent foreign brokerage report showed cement prices are set to decline 15-20% by fiscal 2009-10 due to increase in increase in cement supplies. ACC (down 1.34% to Rs 551), Ambuja Cement (down 1.69% to Rs 78.55), UltraTech Cement Company (down 1% to Rs 588.90), and India Cement (down 2.96% to Rs 136), slipped.

Tata Steel, the world's sixth-largest steel maker by capacity, lost 2.24% to Rs 568.40. The company said after trading hours today, 28 August 2008, its consolidated net profit rose 60.4% to Rs 3900.90 crore in Q1 June 2008 over Q1 June 2007, boosted by its Anglo-Dutch unit Corus.

India's largest oil exploration firm Oil & Natural Gas Corporation fell 0.34% to Rs 1002.25. British oil and gas explorer Imperial Energy said on Tuesday, 26 August 2008, that its management has agreed to a takeover from ONGC worth 1.4 billion pounds ($ 2.6 billion).

IT pivotals declined. Infosys Technologies, the country’s second largest software services exporter slipped 0.47% to Rs 1700. The company said after trading hours on Monday, 25 August 2008, it has agreed to acquire UK based SAP consulting company Axon Group plc, for 407.1 million pounds or Rs 3310 crore. Axon reported profit after taxation of 20.2 million pounds (Rs 160 crore) on revenue of 204.5 million pounds or Rs 1660 crore in the year ended 31 December 2007.

Wipro (down 2.67% to Rs 414), Satyam Computer Services (down 0.10% to Rs 404.50) and TCS (down 3.24% to Rs 792) declined. The BSE IT Index fell 1% to 3,853.39.

Capital goods heavyweights suffered steep losses today. Bharat Heavy Electricals (down 3.29% to Rs 1626) and Larsen & Toubro (down 2.58% to Rs 2510), slumped. The BSE capital goods index Index lost 2.23% at 11,492.50.

Telecom pivotals were also under pressure. India’s top cellular services provider by market capitalisation Bharti Airtel fell 0.14% to Rs 803. The company has reportedly linked up with Google, KDDI Corporation, Global Transit and SingTel to form a consortium, called South East Asia Japan Cable (SJC), which will connect Southeast Asia.

Reliance Communications, the country’s second largest cellular services provider by market capitalisation fell 2.47% to Rs 387.50

Reliance Infrastructure (down 3.29% to Rs 1626), TCS (down 3.24% to Rs 792), Tata Motors (down 2.92% to Rs 410.45), edged lower from Sensex pack.

India’s top tractor maker by sales Mahindra & Mahindra (M&M) fell 2.76% to Rs 560. The company is reportedly in talks with Italian motorcycle and scooter maker Malaguti Moto for a possible takeover.

India’s second largest private sector power generation company Tata Power rose 1.41% to Rs 1025.90 on 1.42 lakh shares. It was the top gainer from the Sensex pack.

NTPC, the country’s largest power generation company by sales rose 0.18% to Rs 171.50. As per reports the company is on course to take up retail distribution of electricity in upcoming industrial parks in Kerala.

Ranbaxy Laboratories, the country’s biggest pharma company by sales, gained 0.31% to Rs 513. As per reports, the Foreign Investment Promotion Board (FIPB) yesterday, 27 August 2008 approved the acquisition of Ranbaxy by Japan's Daiichi Sankyo and the deal would now have to be cleared by the Finance Minister and the Cabinet Committee on Economic Affairs.

Maruti Suzuki India (up 0.57% to Rs 630), and ITC (up 0.54% to Rs 184.50), edged higher from Sensex pack.

Reliance Capital was the top traded counter on BSE with turnover of Rs 266 crore followed by Reliance Industries (Rs 249.40 crore), Nutek India (Rs 157.80 crore), Larsen & Toubro (Rs 136.70 crore) and Reliance Natural Resources (Rs 114 crore), in that order.

Reliance Natural Resources topped volumes chart on BSE notching volumes of 1.24 crore shares followed by Nutek India (84.25 lakh shares), Chambal Fertilisers (63.30 lakh shares), IFCI (56 lakh shares) and Ispat Industries (53.15 lakh shares), in that order.

Mastek rose 0.24% to Rs 358.30 after about 12.88 lakh shares or 4.8% of the company’s equity changed hands in a block deal on BSE at Rs 361 each.

Pyramid Saimira Theatre rose 3.85% to Rs 139 on reports the company is close to acquiring UK’s oldest theatre chain Reel Cinemas, earlier Associated British Cinemas or ABC, for around Rs 200 crore.

Zandu Pharmaceutical Works surged 5% to Rs 16,553.65 on reports the Company Law Board has dismissed a petition filed by the co-promoters of the company opposing an alleged take-over bid by rival Emami.

Marksans Pharma rose 5% to Rs 20.35 after the company said it has acquired 100% stake in Relonchem, a leading UK based generic pharmaceutical company, for an undisclosed sum. The company made this announcement before trading hours today, 28 August 2008.

Apollo Sindhoori Capital Investments jumped 9.65% to Rs 58 after Aditya Birla Nuvo today, 28 August 2008, said its board had approved the acquisition of a controlling 56% in the company at about Rs 64 per share.

On the New York Mercantile Exchange, October 2008 crude rose $1.88 at $118.15 per barrel, yesterday, 27 August 2008 on fears that Tropical Storm Gustav could interrupt oil and natural gas output in the Gulf of Mexico.

European markets which opened after Indian markets were mixed. Key benchmark indices in UK and France were up by between 0.08% and 0.07%. Germany’s DAX fell 0.27%

Asian markets were trading mixed. Key benchmark indices in Hong Kong, Singapore, South Korea and Taiwan were down by between 0.52% and 2.29%. However indices in China and Japan rose 0.34% and 0.12% respectively.

US stocks rose yesterday, 27 August 2008, as unexpectedly strong data on durable goods orders soothed concerns about the sluggish economy while Fannie Mae and Freddie Mac led a rally in financial shares. The Dow Jones industrial average gained 89.64 points or 0.79% to 11502.51. The S&P 500 rose 10.15 points or 0.80% to 1,281.66. The Nasdaq Composite gained 20.49 points or 0.87% to 2382.46.