Sensex ends slightly higher; Bharti Airtel surges, DLF plunges

Key benchmark indices logged small gains on positive global cues in what was a highly choppy trading session. Stocks oscillated wildly reacting to inflation data, corporate results and global cues. The BSE 30-share Sensex was up 34.67 points, or 0.39%.

The market had opened on a firm note on positive global cues. Also market regulator Sebi's move asking promoters of listed companies to disclose their pledged shares, if any, with lenders boosted the market. Caution gripped market after a strong start as key benchmark indices eased from day's high weighed by index heavyweight Reliance Industries, which slipped in red, in anticipation of subdued results from the firm later in the day. The market which gave up gains on higher inflation data in afternoon trade. Sensex oscillated in and out of positive zone in late trade.

Wholesale price index rose 5.6 % in the 12 months to 10 January 2009, above the previous week's annual rise of 5.24%, government data showed at 12:00 IST today.

Positive global cues lifted sentiment. European stocks rose on Thursday, 22 January 2009, as banking shares such as UBS bounced back from recent steep losses, while investors awaited earnings from tech bellwether Nokia. Key benchmark indices in UK, Germany and France were up by between 1.76% and 1.95%.

Asian markets, which opened before the Indian markets, were firm today led by financial companies and the optimism that government policies to ease the financial crisis will ease the global recession. Key benchmark indices in Hong Kong, South Korea, Singapore, China, Taiwan, Japan were up by between 0.13% to 1.9%.

US stocks jumped on Wednesday, 21 January 2009 after a surprisingly healthy earnings report from IBM fueled optimism that technology profits may fare better than other sectors during the recession. The Dow Jones Industrial Average climbed 279.01 points, or 3.51%, to end at 8,228.10, the S&P 500 Index gained 35.02 points, or 4.35%, to finish at 840.24 and the Nasdaq Composite Index rose 66.21 points, or 4.60%, to close at 1,507.07.

In an investor friendly move, the market regulator Sebi on Wednesday, 21 January 2009, asked promoters of listed companies to disclose if they have pledged shares with lenders, while saying it has had no luck in determining the real size of the Satyam Computer fraud. The regulator's announcement on disclosure of pledged shares comes in the wake of the Satyam scam, wherein promoter Ramalinga Raju had pledged nearly all his shares, whose prices he had inflated by falsifying profits.

The details of disclosure should be made in two stages that is event-based and periodical, which will be notified shortly after amending the relevant regulations and listing agreements, Sebi chairman C B Bhave said after the board meeting.

On the flip side, the Planning Commission deputy chairman, Mr Montek Singh Ahluwalia yesterday, 21 January 2009 told the industry not to expect any more stimulus packages from government during this financial year ending March 2009. He said that enough has been done for the industry.

The government has already announced two stimulus packages to give a boost to the economy, reeling under the impact of the global slowdown. The government and the Reserve Bank were working in close coordination on steps to stimulate the economy, he noted.

The BSE 30-share Sensex rose 34.67 points, or 0.39%, to 8,813.84. The Sensex rose 148.52 points at the day's high of 8,927.69 in early trade. The Sensex fell 79.85 points at the day's low of 8,699.32 in mid-afternoon trade. The Sensex swung 228.37 points between the day's high and the day's low.

The S&P CNX Nifty rose 7.65 points, or 0.28%, to 2,713.80.

Nifty January 2009 futures were at 2696, a discount of 17.80 points as compared to the spot closing of 2713.80. Turnover in NSE's futures & options (F&O) segment was Rs 38,676.85 crore, much lower than Rs 43,026.95 crore on Wednesday, 21 January 2009.

The market breadth, indicating the overall health of the market, was weak on BSE with 756 shares advancing as compared with 1,687 that declined. 41 shares remained unchanged. The breadth was positive in early trade.

Among the 30-share Sensex pack, 15 rose while the rest fell. ACC, Jaiprakash Associates, Tata Power Company, Grasim Industries, rose by between 0.1% to 3.05%.

Sectoral indices on BSE displayed mixed trend. The BSE Teck index (up 1.27%), the BSE Bankex (up 0.74%) outperformed the Sensex. The BSE Oil & Gas index rose 0.39%, matching Sensex' rise. However the BSE Realty index (down 5.47%), the BSE Consumer Durables index (down 2.77%), the BSE Metal index (down 2.5%), the BSE Capital Goods index (down 1.61%), the BSE Auto index (down 1.58%), the BSE HealthCare index (down 1.31%), the BSE FMCG index (down 0.96%), the BSE PSU index (down 0.56%), the BSE Power index (down 0.24%), the BSE IT index (up 0.36%), underperformed the Sensex.

The BSE Sensex has lost 868.14 points or 8.63% 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

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) rose 1.21% to Rs 1,132.95. The stock swung in volatile band of Rs 1,153.40 - Rs 1110.65.

The company after market hours today announced 8.8% fall in net profit to Rs 3501.crore in Q3 December 2008 over Q3 December 2007, its first drop in three years, but beat forecasts as refining margins did not fall as much as expected.

India's largest telecom services provider by sales Bharti Airtel rose 6.19% after it before market hours today reported a 25% rise in net profit in Q3 December 2008 over Q3 December 2007. The stock was the top gainer from the Sensex pack.

Realty stocks fell on reports falling interest rates have failed to revive housing demand. india's largest realty developer by m-cap DLF plunged 9.36% to Rs 164.05 on high volumes of 57.55 lakh shares. Indiabulls Real Estate and Unitech fell 4.69% and 3.41% respectively.

Most metal stocks fell on worries a weakening domestic and global economy will hit demand. India's largest steel maker by sales Tata Steel fell 5.1% to Rs 179.20. The stock hit a high of Rs 193.90 after the company's overseas unit signed a pact with UK based Klesch & Company for selling aluminium smelters. Other metal stocks, Steel Authority of India, Hindalco Industries, Hindustan Zinc, fell by between 1.34% to 7.39%. While, National Aluminum Company and Sterlite Industries rose by between 2.66% to 5.52%.

Bank stocks turned mixed in volatile trade after latest data showed rise in inflation over the previous week. India's largest bank in terms of assets and branch network State Bank of India rose 0.66% to Rs 1,089.05. The stock moved between the high of Rs 1,102.80 and the low of Rs 1,065.30. India's second largest private sector bank by net profit HDFC Bank rose 0.37% to Rs 892.80. The stock moved between the high of Rs 948.70 and the low of Rs 882.80. Its American depository receipt (ADR) gained 4.85% on Wednesday, 21 January 2009. India's largest private sector bank by net profit ICICI Bank fell 2.53% to Rs 378.35. The stock moved between the high of Rs 385.70 and the low of Rs 359.40. Its ADR rose 6.34 % overnight.

India's largest dedicated housing finance company by total income HDFC rose 2.04%. 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.

Auto stocks fell on worries high interest rates and sluggish consumer spending have dented demand for automobiles, including for trucks, motorcycles and scooters. Mahindra & Mahindra, Maruti Suzuki India and Tata Motors fell by between 2.86% to 5.21%. India's largest motorbike maker by sales Hero Honda Motors rose 0.91% as company on 21 January 2009 its net profit rose 9.24% to Rs 300.42 crore in Q3 December 2008 over Q3 December 2007.

Capital goods stocks fell on worries a slowing economy will crimp orders. Larsen & Toubro, BEML, ABB, Thermax fell by between 0.03% to 6.83%.

India's largest drugmaker by sales Ranbaxy Laboratories fell 8.89%. The company after the market hours today 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.

Bharat Forge tanked 6.12% after the company reported a 92.52% fall in net profit to Rs 4.35 crore in Q3 December 2008 over Q3 December 2007.

Coromandel Fertilisers rose 13.12% after its net profit rose 77% in Q3 December 2008 over Q3 December 2007.

Pudumjee Pulp & Paper Mills rose 2.2% after its board approved 5 to 1 stock split

Kotak Mahindra Bank fell 5.81% after its net profit fell 30.03% in Q3 December 2008 over Q3 December 207.

Meanwhile, Singapore's government said it plans to spend $20.5 billion Singapore dollars ($13.6 billion) this year, causing a budget deficit blowout, in a bid to spur domestic demand and ease the impact of a severe recession. The government will target job preservation, bank lending, and infrastructure projects while widening this year's fiscal deficit to 6% of gross domestic product, the city-state's largest deficit ``to date,'' Finance Minister Tharman Shanmugaratnam said Thursday in a televised speech.

Singapore, however, slashed its 2009 growth forecast Wednesday for a second time this month, saying the economy could shrink as much as 5% as global demand for the country's exports collapses. China's GDP grew at slowest pace in 7 years and Japan's export plunged most since 1980.

Japan's central bank kept its already super-low interest rate on hold today, 22 January 2009, as widely expected but sharply downgraded its economic outlook amid an ever-deepening recession. In a unanimous vote, the Bank of Japan's policy board chose to keep the overnight call rate target at 0.1%. The BOJ now predicts that the world's second largest economy will shrink 1.8% this fiscal year through March and will contract 2% next fiscal year. The policy board cut the overnight call rate target to 0.1% from 0.3 % in December, joining the U.S. Federal Reserve in lowering borrowing rates to nearly zero amid an ever-worsening outlook for the global economy.