Realty, bankex, metal shares lead an over 350-point Sensex plunge

Wide-based selling in stocks
and sectors across the board took their toll on bourses with key benchmark indices suffering an over 3.5% slide. Bears dominated throughout the day following renewed concerns about the deteriorating state of the US economy. Data showing the Dow could plunge 135 points at the opening bell, sustained selling by foreign institutional investors and profit booking after an over 8% surge in the week ended Friday, 31 January 2009 also played the spoilsport. The BSE 30-share Sensex slumped 357.54 points, or 3.79%.

India's exports fell an annual 1.1% in December 2008 to $12.69 billion, government data showed on Monday, a third straight loss as the global slowdown cuts demand for Indian goods.The trade deficit narrowed to $7.57 billion in December 2008 compared with $10.07 billion in November 2008, due to a sharp drop in the cost of oil imports. Imports were up an annual 8.8 % at $20.26 billion in December 2008, while oil imports fell 30.9% during the month from a year earlier to $4.71 billion.

European shares were lower today as investors worried about corporate profits, with banks and energy stocks the biggest losers on the index. The key benchmark indices in France, Germany and UK were down by between 1.85% to 2.49%.

Asian stocks were mixed today, 2 February 2009 as shrinking factory output in Australia and declining corporate profits increased concerns that the global recession is intensifying. Key benchmark indices in China and Taiwan rose by between 0.28% to 1.06%. While indices in Hong Kong, Japan, Singapore and South Korea fell by between 1.38% to 3.12%.

US markets slumped on Friday, 30 January 2009 in response to the latest economic data with the US economy seeing a 3.8% contraction in the fourth quarter - at the fastest pace in nearly 27 years in the fourth quarter, deepening fears that the ongoing global recession could prevail longer than expected.

The Dow Jones Industrial Average lost 148.15 points, or 1.82%, to 8,000.86. The Standard & Poor's 500 Index slid 19.26 points, or 2.28%, to 825.88. The Nasdaq Composite index tumbled 31.42 points, or 2.08%, to 1,476.42.

Meanwhile, Indian manufacturing activity shrank for a third straight month in January 2009 as faltering business and consumer confidence and a sharp global slowdown crimped demand, a survey showed.

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 4233.70 crore (till 29 January 2009).

According to provisional data on NSE, FIIs were net sellers worth Rs 64.15 crore while mutual funds bought shares worth Rs 398.39 crore on Friday, 30 January 2009.

The BSE 30-share Sensex was down 357.54 points, or 3.79%, to 9,066.70. The Sensex fell 60.66 points at the day's high of 9,363.58 in early trade. The Sensex fell 375.27 points at the day's low of 9,048.97 in late trade.

The S&P CNX Nifty fell 108.15 points, or 3.76%, to 2,766.65.

Markets had ended the truncated week ended Friday 30 January 2009 with smart gains on buying frenzy in index pivotals coupled with short covering of open positions ahead of January 2009 derivative contracts on Thursday (29 January 2009). The BSE 30-share Sensex rose 749.89 points or 8.64% to 9,424.24 and the S&P CNX Nifty rose 103.45 points or 3.73% at 2874.80 in the week.

The BSE clocked a turnover of Rs 3,020 crore today as compared to Rs 3,606.30 crore on Friday, 30 January 2009.

Nifty February 2009 futures were at 2738, at a discount of 28.65 points as compared to the spot closing of 2766.65. Turnover in NSE's futures & options (F&O) segment was Rs 34,205.27 crore lower than Rs 34,242.93 crore on Friday, 30 January 2009.

All BSE sectoral indices logged losses. The BSE Realty index (down 10.32%), the BSE Metal index (down 5.34%), the BSE Bankex (down 5.11%), the BSE Consumer Durables index (down 4.16%), underperformed the Sensex.

The BSE FMCG index (down 0.63%), the BSE HealthCare index (down 1.2%), the BSE Auto index (down 1.41%), the BSE IT index (down 2.49%), the BSE PSU index (down 2.51%), the BSE Capital Goods index (down 2.72%), the BSE Teck index (down 3.04%), the BSE Oil & Gas index (down 3.11%), the BSE Power index (down 3.59%) outperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak on BSE with 884 shares advancing as compared with 1,600 that declined. 62 shares remained unchanged.

Hindustan Unilever was the lone gainer from the 30-member Sensex pack. India's largest FMCG company by sales rose 0.31% to Rs 262.

Among losers from the Sensex pack, Jaiprakash Associates, Bharti Airtel, Reliance Communications, fell by between 2.86% to 13.7%.

India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 3.6% to Rs 1,277.55. Reliance Industries-owned Reliance Retail has reportedly deferred its cash and carry operations with the entire operational management headed for an exit.

Metal stocks fell on worries after weak results posted by the metal firms on fall in demand. Tata Steel, Hindalco Industries, Sterlite Industries, Steel Authority of India, National aluminum Company fell by between 4.31% to 7.91%.

Rate sensitive realty stocks slumped on recent reports falling interest rates have failed to revive housing demand. The BSE Realty index plunged over 10%. Indiabulls Real Estate, Ansal Properties, HDIL fell by between 9.59% to 12.43%.

India's largest realty player by market capitalization DLF slumped 13.54%. DLF reported 69% fall in consolidated net profit to Rs 670.79 crore on a 58.8% decline in total income to Rs 1502.79 crore in Q3 December 2008 over Q3 December 2008, before market hours today.

Unitech fell 9.02% after it announced a 74.12% fall in consolidated net profit after tax in Q3 December 2008 over Q3 December 2007.

Banking stocks fell as fears of rising defaults in a weakening economy and on fall in American Depository Receipts (ADRs) offset hopes a further fall in interest rates may boost lending growth. India's second largest private sector bank by net profit HDFC Bank fell 3.9% as its American depository receipt (ADR) fell 1.92% on Friday, 30 January 2009.

India's largest bank in terms of assets and branch network State Bank of India declined 4.91%. State Bank of India will lower its home loan rates to 8% for new customers over the coming year, the second time it has reduced mortgage rates in as many months as the economy slows. The new rate will be offered between 2 February and 30 April 2009, the bank said in a statement. SBI had previously charged 9.75% on a floating basis for home loans, and 11.25-12.25% on a fixed basis.

India's largest private sector bank by net profit ICICI Bank fell 7.54%.

India's largest dedicated housing finance company by total income HDFC fell 7.37%.

Auto stocks fell on worries high interest rates and sluggish consumer spending have dented demand for automobiles, including for trucks, motorcycles and scooters. India's top small car maker by sales Maruti Suzuki India fell 1.01% even after the company said its vehicle sales rose 5.4% in January 2009 over January 2008.

India's largest commercial vehicle maker by sales Tata Motors fell 4.48% after it posted an unexpected Rs 227 crore loss in Q3 December 2008 after market hours on Friday 30 January 2009.

India's largest tractor maker by sales Mahindra & Mahindra slipped declined 4.52% after its consolidated net profit fell 93.4% to Rs 26.67 crore on a 6.2% decline in gross revenue and other income in Q3 December 2008 over Q3 December 2007. The results were announced at the fag end of the day's trading session on Friday, 31 January 2009.

Outsourcing focussed IT firms fell on fears a weak global economy would cut the amount firms spent on technology. India's second largest software services exporter Infosys Technologies slipped 2.05% as its ADR fell 3.28% on Friday.

India's third largest software services exporter, Wipro dipped 4.76% as its American depository receipt (ADR) fell 0.86% on Friday. 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.

TCS, India's largest software services exporter by sales fell 3.91% while India's fifth largest IT exporter by sales HCL Technologies fell 2.24%.

Satyam Computer Services rose 6.57% on 3.44 crore shares on reports India's market regulator will consider relaxing takeover rules for an open offer in Satyam Computer Services to help the fraud-scarred outsourcer attract suitors.

Fertiliser stocks were up after an Indian court allowed Reliance Industries to sell gas from its KG basin fields at government-approved prices. Deepak Fertlisers , Rashtriya Chemicals and Fertlisers, GSFC, National Fertiliser, Nagarjuna Fertilisers & Chemicals rose by between 0.34% to 4.92%.

Sun Pharmaceutical Industries fell 2.52% even after its consolidated net profit rose 28% in Q3 December 2008 over Q3 December 2007.

Grasim Industries fell 0.63% as its net profit fell 40.5% in Q3 December 2008 over Q3 December 2007.

Spice Communication jumped 68.9% to Rs 80.65, extending 81.21% surge on Friday, 30 January 2009 on the back of reports industrialist BK Modi's firm joined the fray to buy out the troubled IT firm Satyam Computer Services. Modi, however, made it clear that the telecom group would be interested in buying out Satyam and that it was not looking at a piecemeal acquisition. He added that he saw Rs 2,000 crore as a benchmark for Satyam.

Century Textiles fell 4.3% after it said it is cutting production of denim cloth at its factory in Madhya Pradesh to 50% of the total capacity, due to demand recession.

Satyam Computer Services clocked the highest volume of 3.44 crore shares on BSE. Cals Refineries (3.33 crore shares), Spice Communications (2.59 crore shares), Unitech (1.78 crore shares) and Reliance Natural Resources (1.03 crore shares) were the other volume toppers in that order.

Reliance Industries clocked the highest turnover of Rs 229.11 crore on BSE. Satyam Computer Services (Rs 199.18 crore), Spice Communications (Rs 189.55 crore), DLF (Rs 138.03 crore) and United Spirits (Rs 128.01 crore) were the other turnover toppers in that order.