Sensex ends lower; Tata Motors soars 10.47%

The Sensex ended on a lower note ahead of F&O expiry. Broader markets outperformed the Sensex. Realty stocks were in the limelight followed by auto and metal stocks, while FMCG and banking stocks dropped.

It opened with a gain of 53.46 points, at 15,428.50 on Tuesday on mixed global cues and soon fell into the negative terrain. RBI announcement did not cheered the market. It continued to trade in the negative, touching a low of 15,240.53 on the back of profit booking seen in select frontliners. After the RBI news, the market turned choppy and traded in a narrow range rest of the day. The index however moved up into the positive and touched a high 15,463.46. Finally, the index closed in the red.

As expected, the Reserve Bank of India (RBI) kept key policy rates unchanged. The repo rate under the liquidity adjustment facility (LAF) has been retained unchanged at 4.75%. The reverse repo rate under the LAF has been retained unchanged at 3.25%. The cash reserve ratio (CRR) of scheduled banks has been retained unchanged at 5% of net demand and time liabilities (NDTL). Statutory liquidity ratio (SLR) also left unchanged at 24%.

BSE Midcap and Smallcap index rose 1.13% and 1.68% respectively.

European stocks advanced after earnings beat analysts` estimates. The futures on the Standard & Poor`s 500 Index were little changed. UK`s benchmark index FTSE 100 declined 6.84 points, or 0.15%, to trade at 4,579.29. French benchmark index CAC 40 rose 0.18 points, or 0.01%, to trade at 3,372.54 and Germany`s benchmark index DAX gained 7.78 points, or 0.15% to trade at 5,259.26. (4.13 p.m., IST)

Futures on the S&P 500 dipped 2.10 points to 977.80 at 4.07 p.m. Dow Jones Industrial Average futures declined 13 points to 9,057, Nasdaq-100 Index futures fell 2.50 points to 1,597.

The Sensex ended the day with a loss of 43.10 points, or 0.28% at 15,331.94 after touching a high of 15,463.46 and a low of 15,240.53. The broad-based NSE Nifty fell 8.20 points, or 0.18% at 4,564.10 after hitting a high of 4,599.90 and a low of 4,529.15.

Major gainers in the 30-share index were Tata Motors (10.47%), Reliance Infrastructure (3.91%), DLF (3.40%), Reliance Communications (2.98%), Maruti Suzuki India (2.84%), and Tata Steel (2.54%).

On the other hand, Hindustan Unilever (7.28%), ICICI Bank (2.37%), Grasim Industries (1.77%), State Bank Of India(1.70%), Infosys Technologies (1.51%), and Reliance Industries (1.46%) were the major losers in the Sensex.

Overall market breadth was positive. Out of the total 2,745 stocks traded at BSE, 1,709 advanced, 945 declined while 91 remained unchanged.

Initial public offering (IPO) of Ahmedabad based Adani Power, promoted by Adani Enterprises, received overwhelming response today. The issue has managed to achieve full subscription with in hours of its opening.

As at 1:45 p.m, the issue was subscribed 3.87 times. A total of 962,302,445 bids were received out of which 1,306,305 bids were received at cut-off price.

The company has proposed a public issue of approximately 301.65 million equity shares of Rs 10 each for cash at a price to be decided through 100% book building process. The issue closes on July 31, 2009.

The price band of the issue has been fixed at Rs 90 to Rs 100 a share. It hopes to raise around Rs 30.16 billion at cap price. The net issue will constitute 13.47% of the post issue paid up capital of the company.