Sensex sheds 529 points ahead of US bailout vote

Bearish sentiment prevailed today as key benchmark indices snapped last two days' rally on weak global cues. Sensex fell close to 600 points at the day's lows hit in late trade. The barometer index had risen 459.92 points in the preceding two trading sessions. Index heavyweight Reliance Industries (RIL) hit 52-week low, falling more than 7.5%. Tata Steel fell more than 10% while Sterlite Industries fell more than 8.5%. Ranbaxy Laboratories rose more than 4.5%. The market breadth was weak.

Concerns about the effectiveness of the US bailout plan in averting a recession in the global recession weighed on investor sentiments. The US Senate on Wednesday, 1 October 2008, passed the government's financial rescue plan. On the same day, the Senate also approved the Indo-US nuclear deal.

US stock futures were trading higher. Nasdaq futures were up 8 points and Dow Jones futures gained 55 points. European markets which opened after Indian market were in green. France’s CAC 40, and UK’s FTSE 100 were down between 0.17% to 0.23%. However, Germany’s DAX was up 0.13%.

Asian stocks dropped today, 3 October 2008, on fears that the global economy will worsen even if the US Congress passes a $700 billion bank rescue bill. Key benchmark indices in Hong Kong, Japan, Singapore were down by between 1.39% to 2.9%. The key benchmark index in Taiwan rose 0.68% as state funds bought index heavyweights to boost the market. Stock markets in China and South Korea were closed.

The BSE 30-share Sensex plunged 529.35 points or 4.05% to 12,526.32, its lowest closing in 18 months. The index shed 583.06 points at the day's low of 12,472.61, hit in late trade. The Sensex fell 54.48 points at day’s high of 13,001.19, in early trade.

The S&P CNX Nifty ended down 132.45 points or 3.35% to 3,818.30.

BSE clocked a turnover of Rs 4,767 crore today as compared to a turnover of Rs 4,358.87 crore on 1 October 2008.

Nifty October 2008 futures were at 3851, at a premium of 32.70 points as compared to spot closing of 3818.30. NSE's futures & options (F&O) segment turnover was Rs 44,983.07 crore, which was lower than Rs 47,733.85 crore on Wednesday, 1 October 2008.

The BSE Sensex is down 7,760.67 points or 38.25% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 8,680.45 points or 40.93% below its all-time high of 21,206.77 struck on 10 January 2008.

The BSE Mid-Cap index was down 3.03% at 4,677.80 and the BSE Small-Cap index was down 2.52% at 5,465.40.

BSE Metal index (down 7.01% to 8,417.11), BSE Oil & Gas index (down 5.74% to 8,426.67), BSE Consumer Durbles index (down 4.24% to 2,887.66), underperformed Sensex.

BSE FMCG index (down 0.49% to 2,180.14), BSE Auto index (down 0.91% to 3,654.25), BSE HealthCare index (down 1.28% to 3,663.42), BSE PSU index (down 2.28% to 6,171.50), BSE Power index (down 2.5% to 2,227.68), BSE Realty index (down 2.84% to 3,329.85), BSE Capital Goods index (down 3.34% to 10,238.99), BSE IT index (down 3.34% to 3,110.28), BSE Teck index (down 3.39% to 2,523.49), BSE Bankex (down 3.88% to 6,428.95), outperformed Sensex.

The market breadth was weak on BSE with 669 shares advancing as compared to 1,924 that declined. 51 shares remained unchanged.

India’s largest private sector company by market capitalization and oil refiner Reliance Industries fell 7.67% to Rs 1,760.95. The stock hit a 52-week low of Rs 1,745.10 today.

Metal stocks dropped after commodity prices fell overnight on fears the global economic slowdown will hurt demand. Sterlite Industries (down 7.84% to Rs 395.75), Steel Authority of India (down 7.09% to Rs 114.65), National Aluminum Company (down 5.52% to Rs 349.20), Hindalco Industries (down 0.86% to Rs 97.70), Hindustan Zinc (down 6.91% to Rs 404.80), edged lower.

The world’s sixth largest steel maker Tata Steel fell 10.22% to Rs 393.80 and was the top loser from the Sensex pack. The company said on Wednesday, 1 October 2008 its Singapore-based unit has agreed to buy 19.9% stake in Canadian miner New Millenium Capital Corporation for $22.6 million (Rs 106 crore).

ICICI Bank (down 8.51% to Rs 504.50), Tata Power Company (down 6.13% to Rs 888.50), Reliance Infrastructure (down 5.15% to Rs 741.25), HDFC (down 5.57% to Rs 2,081.85), Bharti Airtel (down 4.25% to Rs 756.45), edged lower from the Sensex pack.

Hindustan Unilever (up 0.81% to Rs 256.15) and Mahindra & Mahindra (up 1.7% to Rs 515.15) edged higher from the Sensex pack.

India’s largest drug maker by sales Ranbaxy Laboratories surged 4.83% to Rs 263.85 on reports the US Department of Justice may withdraw the motion against the company next week in a local court in the US. It was the major gainer from Sensex pack.

India’s second largest IT services Infosys fell 4.33% to Rs 1,390.95. The stock recovered from session’s low of Rs 1,382. Axon raised the pressure on Indian outsourcer Infosys on Thursday, 2 October 2008, to raise its offer for the UK-based consultancy group by recommending the counter-bid of HCL Technologies to its shareholders.

HCL last week trumped Infosys’s 600 pence per share bid for Axon with a cash offer of 650 pence, which values Axon at £441m ($780m), 8.3 % higher than the Infosys bid.

India’s largest commercial vehicle maker by sales Tata Motors declined 2.52% to Rs 330.70. Tata Motors' sales rose 2.7% to 49,647 units in September 2008 over September 2007. Sales of commercial vehicles rose 6% to 28,648 units in September 2008 over September 2007. Sales of passenger vehicles declined 2.5% to 16,586 units in September 2008 over September 2007.

Cals Refineries clocked the highest volume of 1.23 crore shares on BSE. Reliance Natural Resources (1.04 crore shares), IFCI (67.50 lakh shares), Chambal Fertilisers and Chemicals (51.08 lakh shares) and Reliance Petroleum (49.2 lakh shares) were the other volume toppers in that order.

Reliance Industries clocked the highest turnover of Rs 649.31 crore on BSE. Reliance Capital (Rs 313.20 crore), Bharti Airtel (Rs 234.49 crore), ICICI Bank (Rs 207.31 crore) and Axis Bank (Rs 181.18 crore) were the other turnover toppers in that order.

The US Senate on Wednesday, 1 October 2008, passed the government's financial rescue plan after the House of Representatives rejected it in its original form. The House is expected to vote on the revised bill on Friday, 3 October 2008. Under the plan, the Treasury would buy illiquid assets held by financial institutions, in the hope of restoring confidence and thawing credit markets vital to the wider economy.

The Indo-US nuclear deal on Wednesday, 1 October 2008, secured the approval of the US Senate which overwhelmingly voted a bill rejecting all the killer amendments and paving the way for its implementation. The landmark civil nuclear cooperation agreement, entered into between Prime Minister Manmohan Singh and US President George W. Bush in 2005, secured 86 votes while 13 Senators voted against it. The legislation, which has already been cleared by the House of Representatives, will now head to the White House for Mr. Bush signing it into a law