Sensex in red, Nifty in green

The two key benchmark indices the BSE Sensex and the S&P CNX Nifty witnessed a divergent trend in highly choppy trade. While the BSE Sensex lost, the broader based S&P CNX Nifty gained. Firm European shares, higher US index futures and a finance ministry report which said prospects for India's expansion remain fairly robust, triggered a late recovery on the bourses.

Wild swings in US index futures after US government's rescue plan for Citigroup caused immense volatility on the domestic bourses. Trading in US index futures indicated the Dow could gain 154 points at the opening bell. The index futures swung between gains and losses after the US Treasury Department on Sunday, 23 November 2008, announced that it was investing $27 billion in Citigroup in exchange for preferred shares as one of a series of actions to help the beleaguered bank

Close home, after an initial fall caused by anxiety about potential US measures to prop up Citigroup, the market bounced back in morning trade boosted by the announcement of the US government rescue plan for the beleaguered US bank. But the rally fizzled out and the market weakened shortly as the package to prop up Citigroup was seen as unlikely to ease all concerns about the broader financial sector and as concerns over the global economy remained.

The market later cut losses on recovery in US index futures, surge in European stocks and positive outlook for India's economy by the Finance Ministry. The barometer index swung 340.09 points between the day's high and low.

The circumstances continue to be largely favourable for sustained, rapid and more inclusive growth of the economy, said a finance ministry report prepared for a conference of financial editors.

European markets surged as investors cheered US aid for the financial giant. Key benchmark indices in UK, Germany and France were up by between 2.75% and 4.52%.

The BSE 30-share Sensex was down 12.09 points or 0.14%, to 8,903.12. At the day's low of 8,701.93, the Sensex lost 213.28 points in mid-afternoon trade. The Sensex rose 126.81 points at the day's high of 9,042.02 in mid-morning trade.

The S&P CNX Nifty gained 14.80 points or 0.55% to 2708.25. The reason why this 50-share index rose despite a slight fall in the BSE Sensex was the rally in some its constituents which do form a part of the Sensex. Reliance Power (up 6.06%), GAIL India (up 5.14%), National Aluminium Company (up 4.97%), Idea Cellular Services (up 4.55%), and HCL Technologies (up 4.07%) rose. These five stocks have a combined weightage of 5.24% in Nifty.

Nifty November 2008 futures were at a marginal 0.95 point premium at 2709.20 compared to the spot closing. Turnover in NSE's futures & options (F&O) segment was Rs 46,218.94 crore, which was lower than Rs 47,696.14 crore on Friday, 21 November 2008.

The barometer index BSE Sensex is down 11,383.87 points or 56.11% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 12,303.65 points or 58.01% below its all-time high of 21,206.77 struck on 10 January 2008.

The market breadth, indicating the overall health of the market, was negative. On BSE, 1387 shares declined as compared with 1065 that advanced. 76 shares remained unchanged.

The BSE Mid-Cap index was down 0.49% at 2,902.29 and the BSE Small-Cap index fell 0.79% to 3,363.96. Both these indices underperformed the Sensex.

The total turnover on the BSE amounted to Rs 3199 crore as compared to Rs 3,580.22 crore on Friday, 21 November 2008.

Among the sectoral indices, the BSE Power index, the BSE Oil & Gas index, the BSE Capital Goods index, the BSE Teck index, the BSE PSU index, the BSE IT index, the BSE Auto index and the BSE FMCG index outperformed the Sensex.

The Bankex, the BSE Metal index, the BSE HealthCare index, the BSE Consumer Durables index and the BSE Realty index underperformed the Sesex.

Among the 30-member Sensex pack, 17 declined while the rest gained. Ranbaxy (down 3.98% to Rs 211), Grasim (down 3.87% to Rs 898.70), and Jaiprakash Associates (down 1.97% to Rs 57.10), edged lower from the Sensex pack.

ACC (up 1.39% to Rs 405) and Bharti Airtel (up 2.57% to Rs 635), edged higher from the Sensex pack.

Banking shares tripped as the $306 billion rescue plan for the number two US bank Citigroup was seen unlikely to ease all concerns about the broader financial sector and as concerns over the global economy remained. India's largest private sector bank by net profit ICICI Bank lost 4.75% to Rs 319.60 despite a 15.53% surge in its American depository receipt (ADR) on Friday, 21 November 2008. It was the top loser from the Sensex pack.

State Bank of India (down 3.88% to Rs 1137.25), and HDFC Bank (down 4.03% to Rs 822.20), also succumbed to selling pressure. The Bankex fell 3.14% to 4,454.68.

Shares in which Citigroup held substantial stake slumped as concerns that it may sell stake remained. India's top mortgage lender by net profit Housing Development Finance Corporation (HDFC) fell 1.73% to Rs 1375.10 in highly volatile trade. Citigroup holds nearly 12% stake in HDFC through various entities. The stock retraced sharply from early high of Rs 1443.50.

Real estate stocks declined on concerns of fall in margins after the National Association of Realtors said on Thursday 20 November 2008 the economic downturn will slow commercial real estate market in 2009. India's top realty developer by market capitalisation DLF slumped 4.62% to Rs 189.05 on reports the retail-cum-entertainment centre at Mumbai mills property which marked DLF's entry in Mumbai three years ago, has been delayed by two years due to downturn in the real estate sector.

Unitech (down 10.05% to Rs 28.65), and Housing Development & Infrastructure (down 2.97% to Rs 81.60), dropped. The BSE Realty index slumped 3.78% at 1,583.30, and was the top loser among the BSE sectoral indices.

IT pivotals gained after international financial services group Credit Suisse assigned an 'outperform' rating to the sector. The BSE IT Index rose 0.22% to 2,462.95. India's largest software services exporter TCS rose 2.85% to Rs 521 after the US government announced a rescue plan for Citigroup, the company's biggest client. It was the top gainer from the Sensex pack.

Infosys Technologies (up 0.44% to Rs 1190), and Wipro (up 1.83% to Rs 234), gained. But India's fourth largest software services exporter Satyam Computer Services plunged 4.41% to Rs 230. Citigroup Global Markets Mauritius holds 1.22% in the firm (as at end September 2008).

Firstsource Solutions rose 4.07% to Rs 12.80 after the company reported a consolidated net profit of Rs 28.28 crore in Q2 September 2008 as against net loss of Rs 50.04 in Q1 June 2008. The company declared the results during market hours today, 24 November 2008.

India's largest copper maker by sales Sterlite Industries was down 1.71% to Rs 215. Reports it expects a 4 lakh tonne a year capacity copper smelter in south India to be shut for about a month following a breakdown pulled the stock to a day's low of Rs 202.25.

Other metal shares dropped on fears the global financial crisis may crimp demand. Hindalco Industries (down 0.87% to Rs 51.45), and Tata Steel (down 3.78% to Rs 154), declined. The BSE Metal index lost 1.55% to 4,309.73.

India's top oil exploration firm by market capitalisation Oil & Natural Gas Corporation (ONGC) slipped 2.04% to Rs 676 on profit booking after surging 6.10% on Friday, 21 November 2008. Friday's surge in the stock was triggered by the company along with its partners bagging 20 oil & gas exploration block under the seventh round of the government's New Exploration Licensing Policy (NELP-VII).

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) gained 0.95% to Rs 1138.10 in choppy trade on reports the company has raised around Rs 2,000 crore through five-year bonds at an annualised coupon of 11.45%. The stock swung between a high and low of Rs 1155 and Rs 1095 respectively so far in the day.

India's top truck maker by sales Tata Motors declined 0.82% to Rs 132.50 on reports the company's Jamshedpur plant which manufactures commercial vehicles will be closed for five days from 25 November 2008 to 29 November 2008 plant amid slowing demand.

Frontline power generation companies gained on reports they are scouting for coal assets in Indonesia after the share prices of major mines there witnessed steep erosion following the global financial turmoil. India's largest private sector power generation firm by sales Tata Power rose 4.45% to Rs 659 and was the top gainer from the Sensex pack. Reliance Infrastructure (up 2.90% to Rs 499.25), NPTC (up 2% to Rs 153.25) and Reliance power (up 6.32% to Rs 111.05), gained. The BSE Power index gained 1.94% at 1,619.44 and was the best performer among the BSE secroral indices.

Capital goods heavyweights saw mixed trend on reports the government has proposed a Rs 50,000-crore special dedicated fund to provide loans to infrastructure projects. The BSE Capital Goods index declined marginally by 0.03% to 6,554.72.

The country's largest power equipment maker by sales, Bharat Heavy Electricals, rose 1.19% to Rs 1296.50 after it bagged an order worth Rs 240 crore from Coastal Gujarat Power (CGPL), for manufacturing and supplying transformers to Tata Power's power project in Gujarat. India's top engineering and construction firm by sales, L&T, fell 1.33% to Rs 750.25.

IVRCL Infrastructure & Projects fell 5.05% to Rs 125.10 despite bagging orders worth Rs 529.79 crore. The company announced the order win during trading hours today, 24 November 2008.

State run oil marketing companies surged after crude oil fell 1.5% to $49.20 a barrel as the US government's $306 billion rescue plan for Citigroup failed to banish investors' gloom. HPCL (up 6.81% to Rs 244), BPCL (up 2.34% to Rs 335.10), and IOC (up 7.52% to Rs 408), surged.

Lower oil prices will reduce underrecoveries at the state-run oil firms on domestic sale of petrol, diesel, LPG and kerosene at a controlled price.

Reliance Industries was the top traded counter on BSE with a turnover of Rs 281.70 crore followed by Reliance Capital (Rs 249.50 crore), State Bank of India (Rs 228.25 crore), Reliance Infrastructure (Rs 168.20 crore) and ICICI Bank (Rs 140.20 crore).

Unitech led the volumes chart on BSE clocking volumes of 1.66 crore shares followed by GVK Power Infrastructure (1.20 crore shares), Suzlon Energy (1.10 crore shares), Reliance Natural Resources (89 lakh shares) and Reliance Capital (Rs 55.80 lakh shares).

Dabur India rose 0.95% to Rs 75.20 after the company acquired 72.15% stake in skin care products firm Fem Care Pharma for Rs 203.7 crore in an all cash deal. Shares of the latter rose 4.68% to Rs 690. The company made this announcement after trading hours on Friday, 21 November 2008.

United Spirits soared 14.97% to Rs 804.70 on reports foreign liquor company Diageo could buy 14.99% stake, besides a distribution partnership in the Indian market.

Spice Communication surged 19.10% to Rs 30.55, snapping eight session of losses. The stock had shed 24.55% in eight successive sessions to Rs 25.65 on 21 November 2008 from Rs 34 on 10 November 2008.

EID Parry India slipped 0.93% to Rs 138.20 despite acquisition of a 48% stake in a US nutraceuticals company Valensa International. The company made this announcement after trading hours on Friday, 21 November 2008.

Asian markets were trading lower today, 24 November 2008. Key benchmark indices in China, Hong Kong, Singapore, South Korea, and Taiwan were down by between 0.25% and 3.67%. Japanese markets were closed for a public holiday.