Nifty slips below 2,700 mark; metal, banking shares slump

Key benchmark indices faltered in volatile trade weighed by dismal global cues with European shares sliding to a six-year low, subdued Asian equities and an overnight decline in US indices. Trading in US index futures showing the Dow could fall 152 points at the opening bell, triggered further unwinding in late trade. The BSE Sensex lost 139.49 points, or 1.58%, to 8,674.35. Realty, metal and banking stocks were the chief casualties. However gains in index heavyweight Reliance Industries capped sharp losses.

The market began on a dull note turned positive in early trade powered by better than expected results from index heavyweight Reliance Industries. However it slipped once again in red later as IT pivotals extended early losses. Recovery from early lows in early afternoon trade was derailed by fresh selling in pivotals. The market extended the fall later. Weak global cues and recent selling by the foreign institutional investors weighed on sentiment.

European shares fell to a six-year low early as investors worried about further losses in the financial sector and data showed the British economy went into recession at the end of last year. Key benchmark indices in France, Germany and UK were down by between 1.55% to 2.12%.

Asian stocks fell today, 23 January 2009, led by technology companies and commodity producers, after Sony Corp forecast its first annual loss in 14 years and economists predicted China's economy will slow further. The key benchmark indices in Hong Kong, Japan, Singapore, China and South Korea fell by between 0.63% to 3.81%.

US stocks fell on Thursday, 22 January 2009, weighed down by Microsoft's proposed job cuts and disappointing earnings, while economic data showed further deterioration in the labor and housing markets.

The Dow Jones industrial average dropped 105.30 points, or 1.28%, to end at 8,122.80. The Standard & Poor`s 500 index slipped 12.74 points, or 1.52%, to settle at 827.50. The Nasdaq composite index decreased 41.58 points, or 2.76%, to close at 1,465.49.

Foreign institutional investors (FIIs) are in selling mode after an inflow of Rs 1319.10 crore in December 2008. Their outflow in January 2009 totaled Rs 3698.90 crore (till 21 January 2009).

The BSE 30-share Sensex was down 139.49 points, or 1.58%, to 8,674.35. The Sensex rose 45 points at the day's high of 8,858.84 in early trade. The Sensex fell 180.07 points at the day's low of 8,631.60 in mid-afternoon trade.

The S&P CNX Nifty fell 35.25 points, or 1.3%, to 2,678.55. Nifty January 2009 futures were at 2665, at a discount of 13.55 points as compared to the spot closing.

The market breadth, indicating the overall health of the market, was weak on BSE with 813 shares advancing as compared with 1,633 that declined. 41 shares remained unchanged. The breadth was positive in early trade.

The BSE clocked a turnover of Rs 3,313 crore today lower than Rs 3,184.98 crore on 22 January 2009.Turnover in NSE's futures & options (F&O) segment was Rs 36,809.97 crore, lower than Rs 38,676.85 crore on Thursday, 22 January 2009.

Sectoral indices on BSE displayed mixed trend. the BSE Bankex (down 4.16%), the BSE Metal index (down 3.35%), the BSE Capital Goods index (down 2.87%), the BSE Realty index (down 2.45%), the BSE IT index (down 2.04%), the BSE PSU index (down 1.96%), the BSE Teck index (down 1.76%) underperformed the Sensex.

The BSE HealthCare index (up 0.49%), the BSE Oil & Gas index (up 0.26%), the BSE Consumer Durables index (up 0.08%), the BSE FMCG index (down 1.22%), the BSE Power index (down 1.32%), the BSE Auto index (down 1.42%), outperformed the Sensex.

The BSE Sensex has lost 972.96 points or 10.08% so far in 2009 from its close of 9647.31 on 31 December 2008. The barometer index had lost 10639.68 points or 52.44% in the calendar year 2008

Among the 30-share Sensex pack, 26 fell while the rest rose. Jaiprakash Associates, Hindustan Unilever, ACC, Grasim Industries fell by between 2.55% to 6.95%.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) advanced 1.75% to Rs 1,153.15 off the day's high of Rs 1,174.35. The company after market hours on Thursday, 22 January 2009 announced a lesser than expected 8.8% fall in net profit to Rs 3501.crore in Q3 December 2008 over Q3 December 2007. RIL's net profit dipped for the first time in three years, but beat forecasts as refining margins did not fall as much as expected.

RIL earned $10 on every barrel of crude oil processed at its 660,000 barrel-a-day plant at Jamnagar in Gujarat, higher than other refineries in South Asia. The stock rose 1.21% ahead of the result yesterday.

India's largest oil exploration firm by revenue Oil & Natural Gas Corporation fell 0.52% to Rs 645.80 off the day's high of Rs 662 even on reports company will be signing an agreement with Kazakhstan for a share in Satpayev oil field in the Caspian Sea on 24 January 2009.

Bank stocks fell after moving between the positive and negative zones earlier as investors speculated falling bond yields and lower rates would accelerate loan growth and profitability. India's largest bank in terms of assets and branch network State Bank of India fell 4.34%. India's second largest private sector bank by net profit HDFC Bank fell 1.32% as its American depository receipt (ADR) fell 2.2% on Thursday, 22 January 2009. India's largest private sector bank by net profit ICICI Bank fell 3.71% as its ADR fell 3.72% overnight.

India's largest dedicated housing finance company by total income HDFC fell 0.84% to Rs 1,388.40 off the day's high of Rs 1,423.90. HDFC, during market hours on 21 January 2009 said its net profit fell 15.73% to Rs 546.83 crore in Q3 December 2008 over Q3 December 2007.

Metal stocks declined on worries a weakening domestic and global economy has hit demand. Steel Authority of India, Hindalco Industries, Hindustan Zinc, Tata Steel, National Aluminum Company and Sterlite Industries fell by between 0.57% to 7.17%.

Capital goods stocks fell on worries a slowing economy will crimp orders. Larsen & Toubro, ABB, BHEL, Thermax, BEML, Crompton Greaves fell by between 0.86% to 5.25%.

Realty stocks fell on reports falling interest rates have failed to revive housing demand .Meanwhile reportedly government is mulling a second stimulus package to the beleagured sector to revive housing demand. DLF, Indiabulls Real Estate, Omaxe fell by between 1.86% to 2.82%.

Unitech fell 4.77% on reports it will postpone the sale of its Gurgaon-based hotel, The Courtyard, as the real estate firm had received undervalued quotations from various suitors.

India's largest telecom services provider by sales Bharti Airtel fell 0.65% on profit booking. The stock gained 6.19% yesterday after the company before market hours on 22 January 2009 reported a 25% rise in net profit in Q3 December 2008 over Q3 December 2007.

India's second largest telecom services provider by sales Reliance Communications fell 4.5%. The company after market hours today announced 2.7% rise in net profit in Q3 December 2008 over Q3 December 2007, slightly missing expectations, as its network expansion costs weighed

IT stocks fell mirroring weak ADRs overnight. India's third largest software services exporter, Wipro fell 1.72% as its ADR fell 5.93% overnight. The company forecasted a 7% fall in revenue for Q4 March 2009 on global economic downturn and pricing pressure from western clients, at the time of declaring results before market hours on 21 January 2009.

India's second largest software services exporter Infosys Technologies fell 2.08% as its ADR fell 4.53% overnight. While, India's fifth largest IT exporter by sales HCL Technologies fell 4.85%.

TCS, India's largest software services exporter by sales fell 2.12% on reports it expects to slow its rate of hiring new staff this year, as a broad economic downturn affects its global clientele. TCS had reported a lower-than-expected rise in net profit in Q3 December 2008 with the management cautioning about the tough business environment at the time of declaring results after market hours on Thursday, 15 January 2008.

However Satyam Computer Services jumped 31.25% to Rs 38.85 on reports India's fraud-scarred outsourcing firm, may name a new leadership team later today, 23 January 2009, after a two-day meeting of the company's new government-appointed board. Meanwhile, potential bidders are reportedly circling the software services exporter, attracted by its large workforce and diversified global clientele that includes Nestle and General Electric.

India's largest commercial vehicle maker by sales Tata Motors rose 1.81% on reports the much delayed and much awaited Tata Nano is ready to hit the dealer networks by February 2009 end. Both the “base” model and the “fully loaded” model will be available at the dealer showrooms mid-to late February. Meanwhile company which bought the luxury brands Jaguar and Land Rover from Ford Motor last year, is in reportedly in talks with the UK government on assistance for the luxury units as sales plummet in their largest markets.

Among other auto stocks, Maruti Suzuki India, M&M and Hero Honda Motors fell by between 0.37% and 7.93%.

India's largest drugmaker by sales Ranbaxy Laboratories rose 0.75% to Rs 187.50 off the day's low of Rs 161.15. The company after the market hours on 22 January 2009 reported a net loss of Rs 806.55 crore in Q4 December 2008 compared to a net profit of Rs 48.4 crore in Q4 December 2007.

Reliance Infrastructure fell 0.55% as its net profit fell 16.71% to Rs 251.19 crore in Q3 December 2008 over Q3 December 2007.

Satyam Computer Services was the top traded counter on BSE with turnover of Rs 396.58 crore on BSE followed by Reliance Industries (Rs 321.36 crore), State Bank of India (Rs 179.66 crore), ICICI Bank (Rs 125.89 crore) and Reliance Infrastructure (Rs 119.46 crore).

Satyam Computer Services clocked the highest volume of 11.14 crore shares on BSE followed by Unitech (1.6 crore shares), Cals Refineries (94.82 lakh shares), Jaiprakash Associates (94.54 lakh shares) and Reliance Natural Resources (66.53 lakh shares)

United Spirits slipped 15.79% extending losses for the second day amid buzz the company has pledged a huge number of shares with financial institutions to avail loans.

Everest Kanto Cylinder fell 9.22% after the company reported 48% slide in net profit to Rs 8.23 in Q3 December 2008 over Q3 December 2007.

MRF fell 5.75% after the tyre maker posted a net loss of Rs 38.3 crore in Q1 December 2008 compared to a net profit of Rs 51.75 crore in Q1 December 2007.

Bharat Electronics rose 0.16% after its net profit rose 9% in Q3 December 2008 over Q3 December 2007.

Greaves Cotton fell 0.52% after its net profit fell 73% in Q2 December 2008 over Q2 December 2007.