Sensex ends a tad above 14,900; Sterlite Industries tanks

Key benchmark indices ended a choppy session lower weighed down by weak Asian markets. The BSE 30-share Sensex declined 44.21 points. Firm European markets triggered a sharp recovery in afternoon trade, lifting the Sensex to positive zone but the market once again slipped into the red on fresh selling at higher level. The market breadth was negative.

Sterlite Industries tumbled 8%. Tata Motors was under pressure throughout the day, sliding around 4%. On the positive side Bharti Airtel and Maruti Suzuki India added over 2% each. Telecom pivotals were in demand. Capital goods heavyweights saw divergent trend. Refinery and sugar stocks bucked weak market trend.

European markets, which opened after Indian markets were trading higher. Key benchmark indices in UK, Germany and France rose between 0.39% and 1.24%.

Asian stocks dropped. Key benchmark indices in Japan, Hong Kong, Taiwan, Singapore, South Korea were down by between 0.93% and 3.51%. However China’s Shanghai Composite rose 0.11%.

Foreign institutional investors (FIIs) were net equity sellers worth Rs 391.53 crore while mutual funds bought shares worth Rs 106.27 crore today, 9 September 2008, according to provisional data on NSE.

The BSE 30-share Sensex declined 44.21 points or 0.3%, to settle at 14,900.76. It opened 130.64 points lower at 14,814.33. At the day’s high of 14,998.32 hit in mid-afternoon trade, the Sensex gained 53.35 points. At the day’s low of 14,714.92 hit in early trade, the Sensex lost 230.05 points.

The S&P CNX Nifty slipped 13.6 points or 0.3%, to end at 4468.70. Nifty September 2008 futures were at 4481, at a premium of 12.30 points as compared to spot closing.

The BSE Sensex is down 5386.23 points or 26.55% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 6306.01 points or 29.73% away from its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth was negative on BSE with 1464 shares declining as compared to 1181 that advanced. 69 remained unchanged.

The BSE Mid-cap index fell 0.72% at 5,778.20 and BSE Small-cap index declined 0.26% to 6,964.61

The total turnover on BSE amounted to Rs 4550 crore as compared to Rs 4,505.75 crore yesterday, 8 September 2008. NSE's futures & options (F&O) segment turnover was Rs 43,958.71 crore, which was lower than Rs 45,977.53 crore on Monday, 8 September 2008.

Among the 30-member Sensex pack, 20 declined while the rest gained.

Metal stocks suffered the most among the sectoral indices on BSE led by Sterlite Industries. India’s largest aluminium and copper maker by sales plunged 8.07% to Rs 572.15 on 23.05 lakh shares. It was the top loser from Sensex pack. Sterlite Industries today said its parent company, Vedanta Resources PLC approved a restructuring program of the group's businesses. Under the scheme, Sterlite will demerge its aluminium and energy businesses to Madras Aluminium which will be later renamed Sterlite Aluminum. Sterlite Industries shareholders would get seven shares in Madras Aluminium for every four shares held as part of a restructuring. The BSE Metal index lost 1.78% to 11,801.18.

Madras Aluminium jumped 20% to Rs 219 on high volumes of 49.41 lakh shares.

India’s top truck maker by sales Tata Motors lost 3.80% to Rs 419.90. The stock slipped after the company said on Monday, 8 September 2008, that the suspension of work at the Nano plant will continue due to limited clarity on the outcome of Sunday’s talks between the State government and the leadership of the just ended Trinamool Congress-led agitation outside the Singur site.

Ranbaxy, India’s top drug maker by sales fell 2.91% to Rs 450.90, after striking day’s high of Rs 480. The Japanese drug maker Daiichi Sankyo’s open offer to acquire an additional 20% stake at Rs 737 a share in the company ended on 4 September 2008.

Capital goods heavyweights saw divergent trend. The BSE Capital Goods index fell 0.46% to 12,366.39. India’s largest power equipment maker by sales, Bharat Heavy Electricals declined 2.49% to Rs 1746 despite reports the company has won a contract worth Rs 2,200 crore for setting up a combined cycle power plant in Tripura on turnkey basis.

India’s largest engineering & construction firm by outstanding order book position Larsen & Toubro rose 0.09% to Rs 2739.85, after touching day’s low of Rs 2691.25

Real estate shares were subdued. The BSE Realty index fell 1.16% at 5,077.16. DLF, the country’s largest realty company by market capitalisation fell 1.36% to Rs 505.10. On Monday, 8 September 2008, the company received a clearance from the Securities and Exchange Board of India (Sebi) to go ahead with a buyback plan. In July 2008, DLF had announced its Rs 1,100-crore plan to buy back shares from existing shareholders at a price not exceeding Rs 600 a share.

Unitech, the country’s largest listed realty company, fell 0.46% to Rs 162.50

India’s largest private sector bank by net profit ICICI Bank shed 0.74% to Rs 715.45. Other banking shares State Bank of India (down 2.16% to Rs 1557.10), and HDFC Bank (down 0.67% to Rs 1292), slipped. The Bankex lost 1.28% to 7,368.33.

India’s second largest software services exporter Infosys Technologies fell 0.08% to Rs 1747.10. The stock came off day’s low of Rs 1700. HCL Technologies may reportedly counter bid Infosys for acquiring the UK-based SAP consultant Axon. According to reports, HCL may make an offer in the range of 690 pence per share for Axon compared to Infosys’ offer of 600 pence per share

Tata Power Company (down 1.69% to Rs 1082.30), and Mahindra & Mahindra (down 1.42% to Rs 582), edged lower from the Sensex pack.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) was down 0.11% to Rs 2129.70 on 8.11 lakh shares. The stock moved in a range of Rs 2086.15 and Rs 2156.40 during the day.

India’s top small car maker by sales Maruti Suzuki India gained 2.36% to Rs 710 on 1.79 lakh shares. It was the top gainer from Sensex pack.

Telecom shares were in demand. India’s second largest cellular services provider in terms of market capitalisation Reliance Communications (RCom) advanced 1.57% to Rs 404.80. As per recent reports, RCom’s subsidiary Reliance Big Entertainment has acquired a majority stake in the US-based cricket webcasting portal, Willow TV, for an undisclosed amount.

Bharti Airtel, the country’s largest cellular services provider in terms of market capitalisation rose 2.15% to Rs 837

India’s largest oil exploration company by market capitalisation Oil and Natural Gas Corporation (ONGC) rose 0.25% to Rs 1102. As per reports the company’s wholly-owned subsidiary ONGC Videsh (OVL) has bid for a 20% stake in the Angolan Block 32, which is owned by a consortium of firms led by French firm Total Exploration and Production Angola. The Angolan Block 32 reportedly has 1.5 billion barrels of oil reserves, the production of which is slated to start in 2012.

Reliance Infrastructure (up 1.24% to Rs 1071.50), Grasim (up 0.41% to Rs 2020) and TCS (up 1.40% to Rs 866.90) gained from Sensex pack.

Resurgere Mines & Minerals was the top traded counter on BSE with turnover of Rs Rs 262.80 crore followed by Austral Coke & Projects (Rs 239.50 crore), Reliance Industries (Rs 172.35 crore), Reliance Capital (Rs 155.25 crore) and Gokul Refoils (Rs 153.85 crore), in that order.

IFCI led the volumes chart on BSE notching volumes of 2.15 crore shares followed by Austral Coke & Projects (1.06 crore shares), Resurgere Mines & Minerals (86.50 lakh shares), Reliance Natural Resources (74.15 lakh shares) and Reliance Power (58 lakh shares), in that order.

Refinery stocks gained on drop in oil prices. Hindustan Petroleum Corporation (up 5.70% to Rs 245.55), Bharat Petroleum Corporation (up 2.26% to Rs 353), and Indian Oil Corporation (up 0.10% to Rs 432.90), rose. US crude for October 2008 delivery fell $1.18 to $105.16 a barrel today, 9 September 2008. It hit a five-month low of $104.70 a barrel yesterday, 8 September 2008.

Sugar stocks were in demand after the Supreme Court in an interim order on Monday, 8 September 2008, asked sugar mills in Uttar Pradesh (UP) to pay yo all outstanding cane arrears to growers for the 2007-08 crushing season at the rate of Rs 110 for a quintal within the next four weeks. Balrampur Chini Mills (up 3.31% to Rs 95.10), Shree Renuka Sugars (up 1.33% to Rs 121.75), and Bajaj Hindustan (up 0.91% to Rs 172.30), gained.

This is lower than the State Advised price of Rs 125 for a quintal fixed by the UP government for the current season.

Tech Mahindra rose 2.84% at Rs 796.10 on reports the firm bagged a $250 million, 7-year contract from a North Amercian telecom services firm. It has also won a smaller, 3-year deal from a Kuwait-based telecom firm for under $10 million. Revenues from both contracts will start flowing in from the last quarter of the current financial year, the reports added.

Idea Cellular rose 2.72% to Rs 85.10. The company has fixed 6 October 2008, as the closing date for its open offer for an additional 20% stake in Spice Communications. The offer opens on 17 September 2008.

Punj Lloyd slipped 1.36% to Rs 304.50. The company said its Singapore unit Punj Lloyd Pte has bagged an order worth Rs 167 crore from FWP, Singapore to carry out select mechanical work on Jurong Island, Singapore. The company made this announcement during trading hours today, 9 September 2008.

Ramco Systems jumped 6.80% to Rs 106 after the company said on Monday, 8 September 2008, its board will meet on 11 September 2008 to consider certain changes in the proposed rights issue to raise up to Rs 173 crore.

US stocks surged on Monday, 8 September 2008 as investors bet Washington's bailout of mortgage finance giants Fannie Mae and Freddie Mac would stabilize the US housing sector and calm jittery world financial markets. The Dow Jones industrial average advanced 289.78 points, or 2.58%, to 11,510.74. The S&P 500 index rose 25.48 points, or 2.05%, to 1,267.79, and the Nasdaq Composite index gained 13.88 points, or 0.62%, to 2,269.76.