Market snaps seven-day losing streak; turnover spurts

A coordinated effort from global central banks to ease a funding squeeze in money markets helped the key benchmark indices reverse sharp early losses and end in green. The Sensex snapped its seven-day losing streak, gaining 52.70 points. A $21.7-billion deal by British bank Lloyds TSB to prevent another UK victim of the credit crisis also helped ease investor jitters after US stocks hit a three-year low on Wednesday, 17 September 2008.

Six of the globe's top central banks today, 18 September 2008, announced a series of measures to improve dollar liquidity in global money markets that this week had virtually frozen up completely. The US Federal Reserve said it had authorised a colossal $180 billion expansion of its temporary reciprocal currency arrangements, or swap lines.

Finance Minister P Chidambaram today, 18 September 2008, said more steps would be taken to provide liquidity if cash conditions were tight, adding global turmoil would partly impact credit availability in India. He also said public sector banks have virtually no exposure to the debt of Lehman Brothers, which filed for bankruptcy in the United States this week.

As per the provisional data released by the stock exchanges after trading hours, foreign funds today, 18 September 2008, sold shares worth a net Rs 1201.64 crore. Domestic funds bought shares worth a net Rs 1,192.20 crore.

The BSE 30-share Sensex rose 52.70 points or 0.4%, to close at 13,315.60. At the day’s high of 13,346.79 hit in mid-afternoon trade, the Sensex rose 83.89 points. The Sensex opened with a huge downward gap of 550.08 points at 12,712.82. At the day's low of 12,558.14 hit in early trade, the Sensex lost 704.76 points.

The S&P CNX Nifty rose 29.90 points or 0.75% at 4038.15. Nifty lost 208.70 points at the day’s low of 3799.55. Nifty September 2008 futures were at 4044, at a premium of 5.85 points as compared to spot closing.

The BSE Sensex had lost 1682.07 points or 11.25% in seven consecutive trading sessions from a recent high of 14,944.97 on 8 September 2008 to 13,262.90 on Wednesday, 17 September 2008. The barometer index is down 6,971.39 points or 34.36% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7,891.17 points or 37.21% below its all-time high of 21,206.77 struck on 10 January 2008.

High turnover was the hallmark of today's trading session. NSE’s futures & options (F&O) segment clocked turnover of Rs 74,094.75 crore, as compared to Rs 58,546.48 crore on Wednesday, 17 September 2008. Turnover in the cash segment of BSE amounted to Rs 7383 crore, as against turnover of Rs 5813 crore on Wednesday, 17 September 2008.

The market breadth was weak on BSE with 1914 shares declining as compared to 703 that rose. 67 remained unchanged.

The BSE Mid-Cap index lost 1.18% to 5,079.13 and the BSE Small-Cap index fell 2.24% to 6,075.43.

European bourses were higher after subdued start. Key benchmark indices in UK, Germany and France were up by between 0.95% and 1.88%. Asian markets, too, rebounded from early lows. Key benchmark indices in China, Hong Kong, South Korea, Japan, Taiwan, and were down by between 0.03% and 2.74%. Singapore’s Straits Times ended unchanged.

Earlier in the day Asian authorities poured more cash into money markets today, 18 September 2008 and sprang to the defence of tumbling currencies, bonds and stocks to prevent upheaval on Wall Street from shattering regional confidence. In India, the central bank supplied banks with Rs 6240 crore ($1.35 billion), its biggest injection in at least a month.

Among the 30-member Sensex pack, 17 slipped while the rest gained.

Banking shares vaulted ahead of the inflation data for the 12 months to 6 September 2008 due after market hours today, 18 September 2008. Bankex shot up 2.68% to 6,769.63 and was the top gainer among the sectoral indices on BSE. HDFC Bank, the country’s largest private sector bank in terms of net profit rose 3.82% to Rs 1229.70 after touching a low of Rs 1090. It was the top gainer from Sensex pack.

India’s largest state run bank in terms of net assets State Bank of India advanced 1.75% to Rs 1555, off day’s low of Rs 1435. As per recent reports, the bank paid 48% higher advance tax to Rs 1560 crore in Q2 September 2008 over Q2 September 2007.

India's largest private sector bank in terms of net profit ICICI Bank also staged a comeback climbing 2.98% to Rs 577, off sharply from day’s low of Rs 518. ICICI Bank on Wednesday, 17 September 2008 denied rumours of top management selling shares over the last few days.

The bank said on Tuesday, 16 September 2008, it held 57 million euros ($81 million) of senior bonds issued by Lehman Brothers, and would increase its provision on the debt by about $28 million to cover half of that exposure. Brokerage Edelweiss Capital said it expected ICICI to post about $200 million in losses on bonds, including debt issued by Lehman.

Mid-cap banking shares also joined the rally. Indian Overseas Bank (up 7.49% to Rs 110.45), Bank of Baroda (up 5.98% to Rs 327.90), Kotak Mahindra Bank (up 5.36% to Rs 583), Punjab National Bank (up 4.72% to Rs 518.70), and Asia Bank (up 1.67% to Rs 676), surged.

Gains in two heavyweights Reliance Industries and Oil and Natural Gas Corporation propelled the BSE Oil & Gas index by 2.36%, to 8,972.89.

India’s largest private sector firm in terms of market capitalization and oil refiner Reliance Industries rose 3.18% to Rs 1933.20. The stock recovered sharply after hitting a 52-week low of Rs 1764 in opening trade. The company may reportedly start producing crude oil from its Krishna Godavari D6 block by this month end, while the gas production will start towards November-end. The initial oil output from the same block is estimated to be 10,000-15,000 barrels a day, which could be raised to 34,000 barrels with more wells.

India’s top oil exploration firm by market capitalisation Oil and Natural Gas Corporation (ONGC) advanced 2.31% to Rs 1002, off sharply from early low of Rs 935.10. The company on Wednesday, 17 September 2008 said it has agreed to give Rocksource ASA, a Norwegian company, 10% participating interest in deep water block in the eastern offshore.

Sterlite Industries (up 3.35% to Rs 454), Mahindra & Mahindra (up 2.54% to Rs 551), and NTPC (up 3.79% to Rs 175.25), edged higher from Sensex pack.

Ranbaxy Laboratories, India’s top drug maker by sales slumped 9.81% to Rs 341.90 and was the top loser from Sensex pack. The US government has banned more than 30 generic drugs made by the company citing poor quality in two of its Indian factories.

India’s largest private sector steel maker by sales, Tata Steel was down 3.14% to Rs 460. It had touched a 52-week low of Rs 440 in intra-day trade. As per reports, the company paid lower advance tax to Rs 300 crore in Q2 September 2008 as compared to Rs 350 crore in Q2 September 2007. The BSE metal index plunged 3.55%, to 9,814.93.

Bharti Airtel fell 1.18% to Rs 760.95 on 54.04 lakh shares. A block deal of 11.72 lakh shares was struck on the counter at Rs 717 and a block deal of 16.91 lakh shares was struck on the counter at Rs 725 on BSE.

Woes continued for realty stocks as the BSE Realty index slumped to a 52-week low of 3,598.36. It closed 4.48% lower at 3,813.11. DLF (down 3.60% to Rs 394), Anant Raj Industries (down 9.51% to Rs 107), Indiabulls Real Estate (down 9.52% to Rs 190), and Housing Development & Infrastructure (down 3.69% to Rs 206), declined.

Unitech declined 4.26% to Rs 122.35 even as the company said various rumors relating to investment of Lehman Brothers in its Mumbai project are baseless. The company made the clarification after trading hours on Wednesday, 17 September 2008

Jaiprakash Associates (down 7.76% to Rs 126.20), Infosys (down 3.65% to Rs 1518.60) edged lower from the Sensex pack.

Reliance Industries topped the turnover charts on BSE with turnover of Rs 452.40 crore followed by Reliance Capital (Rs 442.25 crore), Bharti Airtel (Rs 391.40 crore), ICICI Bank (Rs 254 crore) and HDFC (Rs 222.30 crore), in that order.

Reliance Natural Resources led the volumes chart on BSE clocking volumes of 1.97 crore shares followed by S Kumar Nationwide (1.34 crore shares), IFCI (1.34 crore shares), K S Oils (1.21 crore shares) and Jaiprakash Associates (1.10 crore shares), in that order.

US crude oil prices jumped $6.01 to $97.16 a barrel, on Wednesday, 17 September 2008 as a US government report showed nationwide energy inventories fell in the aftermath of the Gulf Coast hurricanes and as the greenback slid against the euro.

Reliance Capital surged 4.74% to Rs 1119, off session’s low of Rs 974.70 after about 27.30 lakh shares or 1.1% of the company's equity changed hands in a block deal on NSE at Rs 1,057 each.

Wall Street tumbled to a three-year low on Wednesday, 17 September 2008 as the Federal Reserve's rescue of insurer AIG failed to calm a crisis of confidence in global markets. The Dow Jones industrial average plunged 449.36 points, or 4.06%, to 10,609.66. The S&P 500 index slipped 57.21 points, or 4.71%, to 1,156.39, while the Nasdaq Composite index declined 109.05 points, or 4.94%, to 2,098.85.