Sensex off 13% from recent high

Institutional buying and short covering helped the market stage a strong rebound in the latter part of the trading session. The BSE 30-share Sensex lost 366.88 points. The barometer index had slumped about 950 points to a 2-year low in early afternoon trade in a sell-off in global markets triggered by concerns that the deepening of the credit crisis will push the global economy into a recession

Recovery in European markets and US futures from earlier steep losses helped the recovery on the domestic bourses gather steam in late trade. Ranbaxy Laboaratories spurted close to 10%. Reliance Industries, Reliance Communications, Maruti Suzuki India recovered.

The BSE 30-share Sensex lost 366.88 points or 3.14% to 11,328.36. The index tanked 954.48 points at the day's low of 10,740.76 in early afternoon trade, its lowest level since 2 August 2006. The Sensex fell 289.51 points at day’s high of 11,405.73, in late trade.

The S&P CNX Nifty was down 73.25 points or 2.03% to 3,533.35 as per the provisional figures. The index hit a low of 3,329.45 in early afternoon trade, its lowest level since 12 September 2006.

BSE clocked the turnover of Rs 5085 crore today as compared to a turnover of Rs 4,741.54 on 7 October 2008.

Nifty October 2008 futures were at 3553.50, at a premium of 39.85 points as compared to spot closing of 3513.65. NSE's futures & options (F&O) segment turnover was Rs 57,666.95 crore, which was lower than Rs 59,767.70 crore on Tuesday, 7 October 2008.

From the recent high of 13,055.67 on 1 October 2008, the Sensex has lost 1,727.31 points or 13.23%. The barometer index Sensex is down 8,958.63 points or 44.15% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 9,878.41 points or 46.58% below its all-time high of 21,206.77 struck on 10 January 2008.

The BSE Mid-Cap index was down 5.79% at 4,010.48 and the BSE Small-Cap index was down 5.57% at 4,699.19. Both these indices underperformed the Sensex.

All the sectoral indices on BSE were in red. BSE Consumer Durables index (down 6.75% to 2,380.15), BSE FMCG index (down 5.18% to 1,947.33), BSE IT index (down 4.9% to 2,701.23), BSE Bankex (down 4.42% to 5,772.27), BSE Metal index (down 4.31% to 7,209.46), BSE Teck index (down 3.74% to 2,264.73), BSE Capital Goods index (down 3.57% to 8,793.37), BSE Realty index (down 3.31% to 2,844.34) underperformed the Sensex.

BSE Power index (down 1.94% to 2,034.08), BSE Auto index (down 1.97% to 3,442.66), BSE HealthCare index (down 2.43% to 3,344.47), BSE Oil & Gas index (down 2.69% to 7,796.46), BSE PSU index (down 3.1% to 5,795.22), outperformed the Sensex.

The market breadth was extremely weak. On BSE, 441 shares advanced as compared to 2,165 that declined. 46 shares remained unchanged.

India’s largest private sector company by market capitalization and oil refiner Reliance Industries was down 1.54% to Rs 1,649.60. The stock recovered from 52-week low of 1,511 hit today. Reliance Industries will reportedly commission a new 5,80,000 barrels per day (bpd) refinery by the end of November 2008, ahead of the targeted December 2008 deadline.

Six stocks rose while rest 24 stocks fell from the Sensex pack. India’s largest drug maker by sales Ranbaxy Laboaratories spurted 9.08% to Rs 279.25 on reports the US Department of Justice had withdrawn a motion against the drugmaker for allegedly bringing adulterated and misbranded medications into the Unietd States. The stock was the major gainer form the sensex pack. The stock recovered from intraday low of Rs 236.

Most Sensex stocks recovered from their intra day low by the end of trading. Tata Power Company rose 6% to Rs 813.90 after touching a low Rs 671. DLF jumped 3.66% to Rs 314, recovering from a low of Rs 279. Reliance Communications rose 2.95% to Rs 309, bouncing back from a low of Rs 263.80. Mahindra & Mahindra rose 2.75% to Rs 486, off intraday low of Rs 447.10. Maruti Suzuki India jumped 3.13% to Rs 692, recovering from a low of Rs 628.

India’s largest commercial vehicle maker by sales Tata Motors fell 5.27% to Rs 299.90. The stock hit a 52 week low of Rs 295.20 today. The company on Tuesday, 7 October 2008, signed an agreement with Gujarat to make the Nano car there days after the company pulled out of West Bengal.

Among the major losers from Sensex pack were, Jaiprakash Associates (down 9.91% to Rs 90.95), Wipro (down 7.91% to Rs 282.35), Sterlite Industries (down 6.95% to Rs 292.55), ICICI Bank (down 6.53% to Rs 453.50), State Bank of India (down 6.1% to Rs 1,322.15)

Among the sectoral indices, consumer durables stocks index was the major loser. Videocon Industries (down 10.04% to Rs 160), Titan Industries (down 7.49% to Rs 890.90) and Blue Star (down 4.29% to Rs 256.45) edged lower.

FMCG stocks fell. ITC (down 5.13% to Rs 165.60), Hindustan Unilever (down 4.44% to Rs 238.05) and United Spirits (down 17.52% to Rs 619.55) edged lower.

India’s second largest IT exporter by sales Infosys Technologies lost 3.81% at Rs 1,254.35 ahead of its Q2 September 2008 results on Friday, 10 October 2008. The stock recovered from a 52 week low of Rs 1,196 today. Reports suggest that Infosys Technologies is widely expected to lower its dollar guidance for the current year ending March 2009 on the back of the events that have shaken the financial world. It is also expected to miss its revenue guidance in dollar terms for the September 2008 quarter. However, the company is likely to beat its rupee guidance aided by the rupee’s depreciation against the dollar.

India’s largest IT exporter by sales Tata Consultancy Services (TCS) fell 5.07% to Rs 546.60. The stock hit a 52-week low of Rs 510 today. The company announced today it will acquire Citigroup Global Services, the India based captive business process outsourcing (BPO) arm of Citigroup Inc for all cash consideration of $ 505 million. In addition, TCS will provide process outsourcing services to Citi for $2.5 billion over a period of 9.5 years.

Reliance Industries clocked the highest turnover of Rs 434.73 crore. Reliance Capital (Rs 287.26 crore), ICICI Bank (Rs 251.96 crore), Jaiprakash Associates (Rs 209.60 crore) and State Bank of India (Rs 152.25 crore) were the other turnover toppers in that order.

Jaiprakash Associates clocked the highest volume of 2.23 crore shares on BSE. Reliance Natural Resources (1.25 crore shares), GVK power Infrastructure (1.22 crore shares), Chambal Fertilisers and Chemicals (78.24 lakh shares) and IFCI (70.64 lakh shares) were the other volume toppers in that order.

Just after the Indian market closed, the Federal Reserve, European Central Bank and four other central banks announced cut in interest rates in an unprecedented, emergency coordinated bid to ease the economic effects of the financial crisis. The Fed cut its benchmark rate by 0.5% to 1.5%.

Earlier in the day, in a major development, the UK Treasury announced a $87.4 billion plan to inject money into the banking system to prevent a collapse of the UK banking system.

Europen markets were mixed. France’s CAC 40 and Germany’s DAX were down between 0.21% to 1.04%. UK’s FTSE 100 was up 0.34%.

Key benchmark indices in Asia were down by between 3.04% to 9.38% today, 8 October 2008.

US stocks plunged on Tuesday, 7 October 2008, amid escalating worries about credit markets and the financial sector. The Dow lost more than 500 points and all the major indexes slid more than 5%. The Standard & Poor's 500 index saw its first close below 1,000 in five years. Steps by the Federal Reserve to reinvigorate the dormant credit markets ultimately weren't enough to calm nervous investors.