Realty shares slide in volatile trade

Key benchmark indices ended slightly lower, snapping two-day gains, in what was a highly volatile trade. Subdued European indices and negative Dow futures played the spoilsport in second half of the day's trading session after logging steady gains in first half. The BSE 30-share Sensex fell 21.19 points, or 0.23%, off around 143 points from the day's high but above 70 points from day's low. Volatility was the hallmark of the day's trading session due to offsetting of open positions ahead of the expiry of January 2009 derivatives contract today, 29 January 2009.

India's wholesale price index rose 5.64% in the 12 months to 17 January 2008 slightly above the previous week's annual rise of 5.60%.

Meanwhile India's largest institutional investor, Life Insurance Corporation (LIC), said it will invest Rs 17,000 crore in the equity market during the Q4 March 2009. LIC's current investment portfolio is worth around Rs 8.06 lakh crore. As per IRDA guidelines, the institution has to invest 50% of the investible funds in government securities, 15% in infrastructure while the balance 35% can be invested in equities, corporate loans, mutual funds, fixed deposits and commercial papers.

In a populist move ahead of the general elections, the government on Wednesday, 28 January 2009, slashed petrol price by Rs 5 a litre and diesel by Rs 2 a liter, while the prices domestic LPG was also slashed by as much as Rs 25 per cylinder. The reduction was effective from 28 January midnight.

On the flip side, foreign institutional investors (FIIs) are in selling drive after an inflow of Rs 1319.10 crore in December 2008. Their outflow in January 2009 totaled Rs 4534 crore (till 27 January 2009).

Strong global cues had triggered a buoyant start. Rollover of open positions as on Wednesday, 28 January 2009, have been healthy during this series. As per reports, rollover of Nifty positions from January 2009 series to February 2009 series was 57%, higher from 53% during last series. Marketwide rollover of positions were also higher at 59%, from 55% earlier. Market came off the day's high later as pivotals cuts early gains.

Trading in the US futures indicated the Dow could fall 95 points at the opening bell. European stocks were subdued led by banking and commodity sectors. Key benchmark indices in France, Germany and UK fell by between 1.17% to 2.01%.

However Asian stocks advanced today, 29 January 2009, as investors took heart from the US Congress making headway on a $825 billion stimulus spending package and other efforts to stem the financial crisis. Financial markets in Hong Kong reopened after a three-day break, but markets in China and Taiwan remained closed. Key benchmark indices in Hong Kong, Japan, Singapore and South Korea rose by between 0.04% to 4.58%.

US stocks advanced on Wednesday, January 28, as bank stocks surged on confidence that the Obama administration was speeding a plan to remove bad assets from banks` books in an effort to revive lending.

The Dow Jones industrial average advanced 200.72 points, or 2.46%, to 8,375.45. The S&P 500 index advanced 28.38 points, or 3.36%, to 874.09. The Nasdaq Composite index gained 53.44 points, or 3.55%, to 1,558.34.

The BSE 30-share Sensex was down 21.19 points, or 0.23%, to 9,236.28. The Sensex rose 122.21 points at the day's high of 9,379.68 in early trade. The Sensex fell 92.51 points at the day's low of 9,164.96 in mid-afternoon trade.

The S&P CNX Nifty fell 25.55 points, or 0.9%, to 2,823.95.

The BSE clocked a turnover of Rs 3,814 crore today as compared to a turnover of Rs 3,606.74 crore on 28 January 2009.

Nifty February 2009 futures were at 2789.90, at a discount of 34.05 points as compared to the spot closing of 2823.95. Turnover in NSE's futures & options (F&O) segment surged to Rs 51,659.61 crore from Rs 40,894.23 crore on Wednesday, 28 January 2009.

Buying frenzy in index pivotals coupled with short covering of open positions ahead of January 2009 derivative contracts triggered a solid rally in key benchmark indices in the past two days. The Sensex advanced 583.12 points or 6.72% to 9,257.47 in two-trading days to 28 January 2009.

The market breadth, indicating the overall health of the market, turned negative with 1,271 shares declining as compared with 1,166 that rose. 60 shares remained unchanged. The breadth was strong in early trade.

Sectoral indices on BSE displayed mixed trend. the BSE Auto index (up 1.34%), the BSE IT index (up 1.04%), the BSE Metal index (up 0.44%), the BSE Bankex (up 0.3%), outperformed the Sensex.

The BSE Realty index (down 2.77%), the BSE Capital Goods index (down 2.01%), the BSE Power index (down 1.27%), the BSE Consumer Durables index (down 1.04%), the BSE HealthCare index (down 0.9%), the BSE PSU index (down 0.88%), the BSE Oil & Gas index (down 0.87%), the BSE Teck index (down 0.74%), the BSE FMCG index (down 0.56%), underperformed the Sensex.

Among the 30-share Sensex pack, 16 slipped while the rest rose.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 0.4% to Rs 1,268.05 on profit booking. The stock climbed up 13.73% to Rs 1,273.15 on 28 January 2009 from recent low of Rs 1,119.40 on 21 January 2009

India's largest oil exploration firm by revenue ONGC fell 0.48% to Rs 639.15 after its net profit slipped lower-than-expected by 43.3% to Rs 2474.81 crore on a 17.8% decline in sales to Rs 12436.43 crore in Q3 December 2008 over Q3 December 2007. The profit was hit by a slump in crude oil prices and a hefty subsidy bill.

State-run oil marketing firms rose despite government cut retail fuel prices on Wednesday (28 January 2009), its second reduction in nearly two months. HPCL and Indian Oil Corporation rose by between 0.22% to 2.76%. BPCL gained 1.28% after its net profit rose 175% in Q3 December 2008 over Q3 December 2007.

Rate sensitive realty stocks fell on reports falling interest rates have failed to revive housing demand. HDIL, Akruti City, Omaxe fell by between 1.83% to 5.81%. The stocks were firm in early trade. India's largest realty player by market capitalisation DLF slumped 7.15% and was the top loser from the Sensex pack

Capital goods stocks fell on worries slowing economy would crimp orders. ABB, Siemens, Crompton Greaves, Larsen & Toubro fell by between 1.65% to 5.01%.

India's largest electric equipment maker by sales BHEL fell 3.06% ahead of its Q3 December 2008 result today.

Power stocks fell. NTPC, Power Grid Corporation of India and Tata Power Company fell by between 0.29% to 2.3%. While Reliance Infrastructure and Reliance Power rose by between 0.2% to 5.01%.

FMCG Stocks slipped on profit taking after recent gains. ITC, Nestle India, Hindustan Unilever, United Spirits fell by between 0.03% to 8.08%.

Healthcare stocks, too, edged lower on profit booking. Ranbaxy Labs, Sun Pharma, Cipla fell by between 1.18% to 1.67%.

Auto stocks held firm after India cut fuel prices by up to 11 % late on Wednesday. Hero Honda Motors and M& M rose by between 1.19% to 4.23%.

India's largest commercial vehicle maker by sales Tata Motors rose 2.59% after recent reports the British government guaranteed up to 2.3 billion pounds of loans to help the ailing auto firms in the UK, which includes Jaguar Land Rover.

India's largest car maker by sales Maruti Suzuki India rose 4.67% even on reporting 54.3% fall in net profit in Q3 December 2008 over Q3 December 2007.

Banking stocks rose even after marginally higher inflation data. India's second largest private sector bank by net profit HDFC Bank rose 1.01% to Rs 921.70 as its American depository receipt (ADR) rose 8.49% on Wednesday, 28 January 2009.

India's largest bank in terms of assets and branch network State Bank of India fell 1.22% even after its net profit rose 37.03% to Rs 2478.42 crore on 38.3% rise in total operating income to Rs 21,255.90 crore in Q3 December 2008 over Q3 December 2007. The bank announced the result on 24 January 2008.

India's largest private sector bank by net profit ICICI Bank rose 0.01% to Rs 408.40. Its ADR rose 15.02% overnight. Net profit of ICICI Bank rose 3.41% to Rs 1272.15 crore on 0.1% rise in total operating income to Rs 10,350.62 crore in Q3 December 2008 over Q3 December 2007. The unexpected rise in net profit was because earnings from fees and bond trading offset slowing credit growth and rise in bad loans. The bank announced the result on Saturday, 24 January 2008.

India's largest dedicated housing finance company by total income HDFC rose 1.67%.

Satyam Computer Services tumbled 10.1% even on reports it is close to finalising a new head to help the government-appointed board put the fraud-hit outsourcing firm back on track.

Indian Hotels rose 0.39% after its net profit rose 38% in Q3 December 2008 over Q3 December 2007.

Maytas Infra hit 5% lower circuit on reports the southern Indian state of Karnataka will cancel projects being executed by Satyam-linked construction firm Maytas Infra.

Satyam Computer Services clocked the highest volume of 9.71 crore shares on BSE. Unitech (3.2 crore shares), Suzlon Energy (1.98 crore shares), Oriental Bank of Commerce (1.16 crore shares) and Cals Refineries (1.16 crore shares) were the other volume toppers in that order.

Satyam Computer Services clocked the highest turnover of Rs 503.69 crore on BSE. Reliance Industries (Rs 206.99 crore), United Spirits (Rs 170.64 crore), Oriental Bank of Commerce (Rs 150.65 crore) and State Bank of India (Rs 149.95 crore) were the other turnover toppers in that order.

The Fed in its two-day meet which concluded yesterday, 28 January 2009, said it was still mulling the extreme move to buy Treasuries but would do so if it would help private credit markets, emphasising its focus on bringing down borrowing rates for consumers and companies through other asset purchases. The fed also held its target for short-term interest rates between 0 and 0.25% as expected, and vowed to keep looking at alternative tools at its disposal for boosting the economy. It added that the economy remains weak and did not expect any economic recovery to occur until later this year.

Meanwhile, the US House of Representatives passed an $825 billion stimulus plan in President Barack Obama's first legislative achievement since taking office last week, with the debate now shifting to the Senate.