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Monday, June 30, 2008
SBI increases home loan rates
Home loans and auto financing from public sector State Bank of India would be dearer as the lender has decided to hike interest rates by 50 basis points on all credit linked to Prime Lending Rates.
Speaking at a function here on Monday, State Bank Chairman-cum-Managing Director O P Bhatt said the bank has decided to raise the interest rate by 0.5 percent on all loans such as home loans and auto loans which are linked to PLR.
The revision in PLR came after SBI raised its PLR from 12.25 percent to 12.75 percent last week following Reserve Bank's increasing its key short-term lending rate to banks and the mandatory cash deposits that banks need to keep with the apex bank (CRR) by 0.5 percent each.
Referring to the impact on bank's profit margins, Bhatt he hoped to maintain the net interest margin at 3 percent this fiscal.
SBI had earlier announced to hike interest rate on fixed deposit rates by up to 75 basis points effective from June 30.
State Bank of India in which government has about 60 percent stake is targeting 40 percent growth in non-interest income in 2008-09, compared to 28 percent last fiscal.
The bank had lowered its PLR twice in February to 12.25 percent but decided to raise by 50 basis points last week.
"The net profit of the bank is likely to be affected next quarter though there is not much on first quarter profits ending today," he said.
He also indicated the bank is expected to set aside at least USD 10 billion to provide for depreciation in its treasury portfolio as interest rate rise.
Asian Markets Ends June On A Cautious Note
Markets Remain At Par As Crude Oil Settles Above $ 140
Most Asian indices were stuck near break-even point, as investors remained cautious after a string of weak finishes recently and ahead of key economic data from the U.S. later in the week. Energy-related stocks ranked among gainers on high-crude-oil prices, but airline and refining shares extended losses. Concerns about slowing growth in corporate earnings also contributed to weak sentiment.
Japanese stocks continued their downbeat performance, with the benchmark Nikkei 225 Average ending lower for the eighth straight session a day ahead of the Bank of Japan's tankan business sentiment survey. The Nikkei closed down 0.5% to 13,481.38, while the broader Topix index ended little changed at 1,320.10. Looking at the oil prices, Japan's refiners and trading houses surged their May crude oil imports by 16.3% from a year earlier to 20.30 million kiloliters, 4.12 million barrels a day. On the good side, Japan's overall oil product output rose 6.0% on year to 16.99 million kiloliters in May.
On the housing front, Japan's housing starts fell 6.5% in May from a year earlier to 90,804 units. That was the 11th straight month of declines. Housing starts fell 8.7% in April and dropped 15.6% in March. Starts for individual homes in May fell 5.7% to 27,194 units, while those for rental housing slipped 8.6% to 37,733 units. Starts for multiunit dwellings, meanwhile, fell 3.1% to 25,157 units, including condominiums. Adding more concern total construction orders received by Japan's 50 leading domestic contractors fell 25.2% on year to 782.9 billion yen in May following a 8.4% drop in April and a 6.4% gain in March.
Orders from the public sector fell 12.7% to Y83.9 billion. Private-sector orders decreased 23.2% to Y606.4 billion. Overseas construction orders declined 58.9% to Y48.5 billion, the ministry said
China's Shanghai Composite fell 0.5% to 2,736.10, after rising as high as 2,766.80 earlier in the day. In Shenzhen, the All Share index lost 0.3% to 793.13.
The benchmark Hang Seng Index, which fell during six of the previous seven sessions in Hong Kong, registered a gain of 0.3% to 22,102.01, while the Hang Seng China Enterprises Index rose 0.8% to 11,909.75.
Australia's S&P/ASX 200 dropped down by 0.4% to 5,215.30, giving a large part of its gains after touching 5,305.90 earlier in the day. The backward movement in stocks gains importance as a private measure of Australian inflation jumped to new highs in June as households paid more for petrol and rents, keeping upward pressure on interest rates just a day before a central bank policy meeting.
The TD Securities-Melbourne Institute monthly inflation gauge rose 0.5% in June, after a 0.3% increase in May. Annual inflation accelerated to 4.8%, from 4.5 %, the highest in the five-year history of the series.
Elsewhere, South Korea's Kospi fell 0.6% to 1,674.92 and Singapore's Straits Times Index rose 0.1% to 2,959, while Taiwan's weighted index fell 0.3% to 7,523.54.
The August contract for crude-oil futures climbed as much as $1.34 to $141.55 a barrel in electronic trading, after adding 57 cents to $140.21 a barrel on the New York Mercantile Exchange on Friday. The front-month contract had touched a record high of $142.99 a barrel in electronic trading on Friday.
In currency trading, the 105.53 yen in Asia compared with 106.18 yen earlier in the day and 106.17 yen in New York late Friday. The Japanese yen strengthened against the U.S. dollar after Moody's Investors Service upgraded the rating on Japanese government bonds to Aa3 from A1 with a stable outlook. The upgrade was prompted by expectations of continued fiscal restraint and consolidation, coupled with an easing-out of the debilitating effects of deflation," Moody's Senior Vice President Thomas Byrne wrote in a statement.
On Wall Street, the Dow Jones Industrial Average fell 106 points to 11,346 and the Nasdaq Composite dipped 5.7 points to 2,315, while the S&P 500 index fell 4.8 points to 1,278.
Moving towards European markets which moved broadly lower in the final trading session of the quarter, with shares of Swedish telecoms operator TeliaSonera down sharply after France Telecom decided to walk away without making a formal offer.
Among the main European indexes, the French CAC fell 0.2% to 4,387.17 and the German DAX 30 dipped 0.8% at 6,370.62. Meanwhile the U.K. FTSE 100 gained 0.2% at 5,541.60.
Meanwhile on the economic front the day was sounds good either as Euro-zone consumer prices surged in June, hitting a new record high Monday and probably increasing the European Central Bank's hawkish bias ahead of its rate-setting meeting.
The flash estimate of the annual rate of euro-zone inflation was 4.0% in June, up from May's 3.7%, and ahead of expectations of 3.9%.
The inflation rate's latest surge marks a new record high for the measure, which is at its highest level since Euro stat began collecting data in 1997.
Following the news markets tanked further. At 9.35 GMT the U.K's FTSE 100 was at 5,541.60 with a gain of 0.2%. However the French CAC fell further by 0.5% to 4,375.32 while the German DAX 30 tanked by 1.6% at 6,323.33.
Following the regional trend, the Italian producer price growth in May registered its fastest rise since the index began, driven by rising energy and food prices.
On the year, producer prices rose 7.5% in May, up from a 6.3% rise in April. On the month the index rose 1.5%, compared with a 0.4% rise in April. Both increases were the highest ever recorded since the index began in January 2003.
In U.K. mortgage approvals slumped in May, dropping more than a quarter to a fresh record low, while net mortgage lending fell to its weakest level in more than six years last month underlining the troubles in the U.K. housing market.
Mortgage approvals, which were already at a record low of 58,000 in April, fell to 42,000 in May, the lowest number since the series began in 1999. May's drop of 16,000 was the largest monthly decline in mortgage approvals on record.
Looking ahead the day is scheduled to release Canada’s GDP figure followed by Chicago’s PMI index for June. In the late night we will have Tankan survey for large manufacturing index and non-manufacturing index.
NSE Bulk Deals to Watch - June 30 2008
Date,Symbol,Security Name,Client Name,Buy/Sell,Quantity Traded,Trade Price / Wght. Avg. Price,Remarks
30-JUN-2008,ALKYLAMINE,Alkyl Amine Chem Ltd,SECURITIES ANALYSIS.I.PVT.LTD,BUY,100000,99.36,-
30-JUN-2008,CERA,Cera Sanitaryware Limited,ALPHA VANIJYA PVT. LTD.,BUY,35000,120.23,-
30-JUN-2008,CERA,Cera Sanitaryware Limited,SHEO KUMAR AGARWAL,BUY,32500,120.35,-
30-JUN-2008,FEDERALBNK,Federal Bank Ltd.,GOLDMAN SACHS INVESTMENT (MAURITIUS) 1 LIMITED A/C SHORT TER,BUY,1428167,185.55,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,186764,107.81,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,B K SHAH CO KETAN BHAILAL SHAH,BUY,146268,107.58,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,HOTEL LIBRARY CLUB P LTD,BUY,133970,106.52,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,LEGEND COMMODITY & DERIVATIVES PRIVATE LIMITED,BUY,80780,107.28,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,MANIPUT INVESTMENTS PVT LTD,BUY,126491,113.38,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,MANSUKH SECURITIES & FINANCE LTD,BUY,89835,105.20,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,MLB CAPITAL PVT LTD,BUY,68000,105.62,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,NAMAN SECURITIES & FINANCE PVT LTD,BUY,60511,108.72,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,NISSAR BROTHERS,BUY,136607,103.87,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,PRASHANT JAYANTILAL PATEL,BUY,131219,107.29,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,TRANSGLOBAL SECURITIES LTD.,BUY,73030,107.34,-
30-JUN-2008,GWALCHEM,Gwalior Chemical Industri,FIN BRAINS SECURITIES (INDIA) LTD.,BUY,240971,115.82,-
30-JUN-2008,GWALCHEM,Gwalior Chemical Industri,MANISH VRAJLAL SARVAIYA,BUY,174126,125.46,-
30-JUN-2008,GWALCHEM,Gwalior Chemical Industri,MBL & COMPANY LTD.,BUY,290931,119.95,-
30-JUN-2008,GWALCHEM,Gwalior Chemical Industri,MORGAN STANLEY MAURITIUS COMPANY LTD,BUY,170000,119.80,-
30-JUN-2008,MVL,MVL Limited,AMBIT SECURITIES BROKING PVT. LTD.,BUY,428264,88.23,-
30-JUN-2008,MVL,MVL Limited,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,BUY,1189304,90.38,-
30-JUN-2008,MVL,MVL Limited,AVANI AMITBHAI KORADIA,BUY,400000,91.79,-
30-JUN-2008,MVL,MVL Limited,B K SHAH CO KETAN BHAILAL SHAH,BUY,430035,89.85,-
30-JUN-2008,MVL,MVL Limited,DHIRAJ ANOPCHAND MEHTA PROPRIETORRINKI ENTERPRISE,BUY,774538,87.01,-
30-JUN-2008,MVL,MVL Limited,DINDAYAL BIYANI STOCK BROKERS LTD,BUY,311617,85.82,-
30-JUN-2008,MVL,MVL Limited,DINESH MUNJAL,BUY,591759,88.52,-
30-JUN-2008,MVL,MVL Limited,LATIN MANHARLAL SECURITIES PVT. LTD.,BUY,634133,88.11,-
30-JUN-2008,MVL,MVL Limited,MANIPUT INVESTMENTS PVT LTD,BUY,479148,89.07,-
30-JUN-2008,MVL,MVL Limited,R.M. SHARE TRADING PVT LTD,BUY,508129,91.65,-
30-JUN-2008,MVL,MVL Limited,SANJAY BHANWARLAL JAIN,BUY,354979,88.00,-
30-JUN-2008,MVL,MVL Limited,TRANSGLOBAL SECURITIES LTD.,BUY,755976,89.47,-
30-JUN-2008,ORBITCORP,Orbit Corporation Limited,SHREE DHOOT TRADING & AGENCIES LTD,BUY,380000,305.60,-
30-JUN-2008,PUNJABCHEM,Punj Chem & Crop Prot Ltd,FAIRDEAL TRADELINK,BUY,50000,215.00,-
30-JUN-2008,PUNJABCHEM,Punj Chem & Crop Prot Ltd,V AND U CAPLEASE PVT LTD,BUY,5201,211.91,-
30-JUN-2008,PVR,PVR Limited,THE WESTERN INDIA & EXECUTOR CO LTD (IND ADVANTAGE FUND SCHE,BUY,1175000,173.88,-
30-JUN-2008,TUBEINVEST,Tube Investments Ltd,PARRY AGRO INDUSTRIES LTD,BUY,8300000,41.65,-
30-JUN-2008,VISAKAIND,Visaka Industries Ltd.,G VIVEKANAND,BUY,106000,49.44,-
30-JUN-2008,ALKYLAMINE,Alkyl Amine Chem Ltd,SHAH SANJIV DHIRESHBHAI,SELL,68649,99.43,-
30-JUN-2008,CERA,Cera Sanitaryware Limited,MINIVET LIMITED,SELL,35000,120.40,-
30-JUN-2008,CERA,Cera Sanitaryware Limited,NAKUL ARUN JAGJIVAN,SELL,41561,120.04,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,186253,109.24,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,B K SHAH CO KETAN BHAILAL SHAH,SELL,146243,106.93,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,HOTEL LIBRARY CLUB P LTD,SELL,133970,107.21,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,LEGEND COMMODITY & DERIVATIVES PRIVATE LIMITED,SELL,80780,107.66,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,MANIPUT INVESTMENTS PVT LTD,SELL,126491,114.06,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,MANSUKH SECURITIES & FINANCE LTD,SELL,89835,106.06,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,MLB CAPITAL PVT LTD,SELL,68000,104.32,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,NAMAN SECURITIES & FINANCE PVT LTD,SELL,66082,109.03,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,NISSAR BROTHERS,SELL,136607,104.38,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,PRASHANT JAYANTILAL PATEL,SELL,131219,108.43,-
30-JUN-2008,GMRFER,GMR Ferro Alloys & Indust,TRANSGLOBAL SECURITIES LTD.,SELL,73030,107.36,-
30-JUN-2008,GWALCHEM,Gwalior Chemical Industri,FIN BRAINS SECURITIES (INDIA) LTD.,SELL,240971,115.97,-
30-JUN-2008,GWALCHEM,Gwalior Chemical Industri,MANISH VRAJLAL SARVAIYA,SELL,174126,124.93,-
30-JUN-2008,GWALCHEM,Gwalior Chemical Industri,MBL & COMPANY LTD.,SELL,290931,119.63,-
30-JUN-2008,MVL,MVL Limited,AMBIT SECURITIES BROKING PVT. LTD.,SELL,428264,88.96,-
30-JUN-2008,MVL,MVL Limited,ASTUTE COMMODITIES & DERIVATIVES Pvt Ltd,SELL,1189289,91.40,-
30-JUN-2008,MVL,MVL Limited,AVANI AMITBHAI KORADIA,SELL,400000,89.01,-
30-JUN-2008,MVL,MVL Limited,B K SHAH CO KETAN BHAILAL SHAH,SELL,430039,89.83,-
30-JUN-2008,MVL,MVL Limited,BEYOND SECURITIES PRIVATE LIMITED,SELL,358915,93.03,-
30-JUN-2008,MVL,MVL Limited,DHIRAJ ANOPCHAND MEHTA PROPRIETORRINKI ENTERPRISE,SELL,774538,91.25,-
30-JUN-2008,MVL,MVL Limited,DINDAYAL BIYANI STOCK BROKERS LTD,SELL,311617,87.80,-
30-JUN-2008,MVL,MVL Limited,DINESH MUNJAL,SELL,591759,88.95,-
30-JUN-2008,MVL,MVL Limited,LATIN MANHARLAL SECURITIES PVT. LTD.,SELL,623133,88.25,-
30-JUN-2008,MVL,MVL Limited,MANIPUT INVESTMENTS PVT LTD,SELL,479148,89.27,-
30-JUN-2008,MVL,MVL Limited,R.M. SHARE TRADING PVT LTD,SELL,508129,93.85,-
30-JUN-2008,MVL,MVL Limited,SANJAY BHANWARLAL JAIN,SELL,354979,88.02,-
30-JUN-2008,MVL,MVL Limited,TRANSGLOBAL SECURITIES LTD.,SELL,755963,90.39,-
30-JUN-2008,ORBITCORP,Orbit Corporation Limited,JAROLI VINCOM PVT LTD,SELL,200000,305.60,-
30-JUN-2008,PUNJABCHEM,Punj Chem & Crop Prot Ltd,V AND U CAPLEASE PVT LTD,SELL,50000,215.00,-
30-JUN-2008,PVR,PVR Limited,HSBC M F A/C HSBC ADVANTAGE INDIA FUND,SELL,150000,174.00,-
30-JUN-2008,PVR,PVR Limited,OPPENHEIMER INTERNATIONAL SMALL CO FUND,SELL,1000000,174.00,-
30-JUN-2008,TUBEINVEST,Tube Investments Ltd,CORBEL ESTATE AND INVESTMENTS PVT LTD,SELL,6560397,41.50,-
30-JUN-2008,TUBEINVEST,Tube Investments Ltd,MAHINDRA HOLDINGS LIMITED,SELL,1312103,41.50,-
30-JUN-2008,VISAKAIND,Visaka Industries Ltd.,BNP PARIBAS ARBITRAGE,SELL,100000,49.50,-
BSE Bulk Deals to Watch - June 30 2008
Deal Date Scrip Code Company Client Name Deal Type * Quantity Price **
30/6/2008 506767 ALKYL AMIN C SECURITIES ANALYSIS.I.PVT.LTD B 96000 99.22
30/6/2008 532989 BAFNA PHARMA N D NISSAR B 333493 36.87
30/6/2008 532989 BAFNA PHARMA RAMESH VINAYAK VAZE B 221000 38.76
30/6/2008 532989 BAFNA PHARMA KEDAR RAMESH VAZE B 116499 34.94
30/6/2008 532989 BAFNA PHARMA N D NISSAR S 333493 36.98
30/6/2008 532989 BAFNA PHARMA RAMESH VINAYAK VAZE S 221000 38.03
30/6/2008 532989 BAFNA PHARMA KEDAR RAMESH VAZE S 91503 35.23
30/6/2008 590061 BRUSHMAN IND SECUREX CAPITAL MKT LTD B 75000 121.50
30/6/2008 590061 BRUSHMAN IND BEDI JASDEEP S 130173 121.24
30/6/2008 500469 FEDERAL BANK VINAMARA UNIVERSAL TRADERS PVT LTD B 747222 186.00
30/6/2008 532980 GOKUL REFOIL PACIFIC CORPORATE SERVICES LTD B 168000 204.20
30/6/2008 531025 INCA FINLEAS VHM IMPEX PRIVATE LTD B 87500 118.06
30/6/2008 531025 INCA FINLEAS VISAGAR POLYTEX LIMITED S 87300 118.08
30/6/2008 530885 JAISAL SECUR SRIPATHEE INVESTMENTS PRIVATE LIMITED B 25000 37.24
30/6/2008 523704 MASTEK* MASTEK LIMITED B 502000 390.00
30/6/2008 523704 MASTEK* RELIANCE LONG TERM EQUITY FUND S 500000 390.00
30/6/2008 532991 MVL LIMITED WLD INVESTMENT PVT LTD B 445024 106.11
30/6/2008 532991 MVL LIMITED SPJSTOCK B 1021107 87.50
30/6/2008 532991 MVL LIMITED R M SHARES TRADING PVT LTD B 410345 92.08
30/6/2008 532991 MVL LIMITED SAM GLOBAL SECURITIES LTD B 288701 87.00
30/6/2008 532991 MVL LIMITED DINDAYAL BIYANI STOCK BROKERS LTD. B 292715 88.51
30/6/2008 532991 MVL LIMITED SPJSTOCK S 1021107 88.91
30/6/2008 532991 MVL LIMITED R M SHARES TRADING PVT LTD S 410345 89.72
30/6/2008 532991 MVL LIMITED BEYOND SECURITIES PRIVATE LIMITED S 827599 98.90
30/6/2008 532991 MVL LIMITED SAM GLOBAL SECURITIES LTD S 288701 86.47
30/6/2008 532991 MVL LIMITED DINDAYAL BIYANI STOCK BROKERS LTD S 292715 86.40
30/6/2008 532986 NIRAJ CEMENT NAYANBHAI RAMESHCHANDRA SHAH B 61981 205.22
30/6/2008 532986 NIRAJ CEMENT AYODHYAPATI INVESTMENT PVT LTD B 1184991 207.30
30/6/2008 532986 NIRAJ CEMENT HEMANT MADHUSUDAN SHETH B 52835 223.45
30/6/2008 532986 NIRAJ CEMENT BHANDARI RAKHI K B 57000 203.01
30/6/2008 532986 NIRAJ CEMENT ASTUTE COMMODITIES AND DERIVATIVES PVT LTD B 79260 205.00
30/6/2008 532986 NIRAJ CEMENT AYODHYAPATI INVESTMENT PVT LTD S 1184991 205.80
30/6/2008 532986 NIRAJ CEMENT BHANDARI RAKHI K S 57000 210.70
30/6/2008 532986 NIRAJ CEMENT ASTUTE COMMODITIES AND DERIVATIVES PVT LTD S 93365 207.40
30/6/2008 532606 PAREKH ALUM MANISH JASWANT MARU B 500000 112.00
30/6/2008 532606 PAREKH ALUM MEENAKSHI JATIA S 152359 112.00
30/6/2008 532606 PAREKH ALUM LOTUS GLOBAL INVESTMENTS LIMITED S 60000 112.00
30/6/2008 532791 PYRAMID SAIM SPJSTOCK B 241736 240.29
30/6/2008 532791 PYRAMID SAIM SPJSTOCK S 252736 234.99
30/6/2008 502587 RAMA PUL PAP JYOTIKABEN MAHESHBHAI HADVANI B 39000 27.51
30/6/2008 526049 SHRILAKSHMI VIPUL HIRALAL SHAH B 117000 101.56
30/6/2008 532863 SPICE TELE SUKSHAM FINLEASE AND INVESTMENT PVT LTD S 5204272 72.55
30/6/2008 530585 SWASTIK INV JIGNESHBHAI HIRALAL SHAH S 90000 24.19
30/6/2008 526586 WIM PLAST LT M M S HOLDINGS PVT LTD S 41020 51.05
Post Session Commentary - June 30 2008
The market was badly hit for the second consecutive day by posting heavy losses across the counters on account of heavy selling pressure backed by rise in crude oil price and political uncertainty. The BSE Sensex slipped below 13,500 mark and NSE Nifty below 4,100. The BSE Midcap and Smallcap indices closed with deep cut of more than 3%. New York crude oil reached an all time high to $142.99 a barrel on Friday. In the domestic political scenario, left parties has again threatened to pull out support from the UPA if government went to IAEA and there are signs that Congress may go ahead with the deal even if it leads to the collapse of the UPA coalition and early elections. Market opened on flat note on the back of mixed global cues and turned volatile during early trade. Further it slipped sharply and continued the losing trend through out of trading session to close in deep red. From the sectoral front, Oil & Gas, Capital Goods, Reality, Bank and Consumer Durables stocks were under pressure, while IT and Pharma stocks witnessed some buying interest. The market breadth was weak as 2107 stocks closed in red while 542 stocks closed in green.
The BSE Sensex closed lower by 340.62 points at 13,461.60 and NSE Nifty ended down by 96.10 points at 4,040.55. The BSE Mid Caps and Small Cap closed negative with fall of 172.23 points and 236.11 points 5,386.48 and 6,701.96 respectively. The BSE Sensex touched intraday high 13,872.06 and intraday low of 13,405.54.
Lossers from the BSE are Reliance Infra (11.47%), ACC Ltd (9.80%), Ambuja Cement (6.83%), DLF Ltd (6.60%), Reliance Com Ltd (6.58%), Grasim Industries (5.05%), M&M Ltd (5.00), HDFC (4.40%) and MAruti Suzuki (4.22%).
The Oil & Gas index closed down by 378.47 points at 9,009.16. As Essar Oil Ltd (11.11%), Reliance Natural Resources (10.71%), BPCL (6.30%), HPCL (5.52%), Reliance (4.06%) and Aban Offshore (3.89%) closed in negative territory.
The Capital Goods index dropped by 361.45 points to close at 10,080.69. Major lossers are Jyoti Struct (9.57%), Elecon Eng C (7.82%), BEML Ltd (7.02%), ABB Ltd (6.33), Suzlon Energy (6.29%) and Alstom Proje (5.71%).
The Reality Index closed higher by 331.78 points at 4,543.47. Lossers are Housing Dev (10.27%) along with Indiabull Real (8.56%), Penland Ltd (7.78%), Parsvnath (7.52%), Ansal Infra (7.18%) and Unitech Ltd (6.65%).
The Banking index closed down by 209.97 points at 5,915.98. Lossers are Yes Bank (8.38%), PNB (6.45%), Kotak Bank (5.61%), Indian Overseas Bank (5.51%), SBI (4.04%), Axis Bank (4.02%), Andhra Bank (3.51%) and ICICI Bank Ltd (3.51%).
The IT index closed higher by 15.07 points at 4,019.82. Gainers are NIIT Ltd (8.12%), Financ Tech (2.02%), Infosys Tech (1.59%), Tech Mahindra (0.79%) and I-Flex (0.76%).
The Pharma index closed up by 14.28 points at 4,164.33. As Matrix Lab (4.46%), Sun Pharma (4.42%), Dr Reddy’s Lab (2.66%), Glenmark Pharma (1.97%) and Cipla Ltd (0.29%) closed in positive territory.
Sensex plummets 341 points
The market witnessed the second crash today after witnessing a fall of 620 points on Friday. Following a steep fall in global stock markets led by fears of a hike in crude oil prices, the Sensex resumed on a bearish note at 13,791, 11 points below its last close of 13,802. By mid-morning trades, the Sensex shed around 400 points on across-the-board selling pressure. The market started to deteriorate further towards the close, as fresh bout of selling saw the Sensex plummet over 350 points and touch the day's low of 13,406. The Sensex dropped 2.47% and was down 341 points for the day at 13,462. The Nifty shed 96 points at 4,041.
The market breadth was heavily tilted in favour of the losers as 2,103 stocks declined, while only 546 stocks advanced and 42 stocks remained unchanged on the BSE. All the sectoral indices were battered on the BSE except information technology (IT), fast moving consumer goods (FMCG) and health care (HC) stocks. The BSE Realty index lost heavily and dropped 6.81% followed by the BSE consumer durables (CD) index (down 4.71%), the BSE Oil & Gas index (down 4.03%), the BSE Power index (down 3.55%), the BSE capital goods (CG) index (down 3.46%) and the BSE Bankex index (down 3.43%). The second-rung benchmark indices the BSE mid-cap index and the BSE small-cap index tanked over 3% each.
Only 8 stocks from 30 Sensex stocks managed to end in the green. Among the major losers Reliance Infrastructure tanked by 11.47% at Rs751.05. ACC slumped by 9.80% at Rs512, Ambuja Cement shed 6.83% at Rs73.50, Grasim Industries crumbled by 6.66% at Rs1,815. DLF dropped 6.60% at Rs389, Reliance Communications slipped by 6.58% at Rs433.10, Tata Motors plunged 5.03% at Rs416 and Mahindra & Mahindra fell by 5% at Rs477. Other front-line stocks also declined by over the range of 0.50-4% each.
Realty stocks took a heavy pounding. Housing Development & Infrastructure plunged by 10.27% at Rs387, Indiabulls Real Estate tumbled by 8.56% at Rs271.20, Peninsula Land lost 7.78% at Rs51, Ansal Infrastructure by 7.18% at Rs69.15 and Unitech declined by 6.65% at Rs170.65. DLF, Sobha Developers, Omaxe, Phoenix Mill, Mahindra Life, Akruti City and Anant Raj crashed around 4-5% each. CD stocks, too, were hammered on the bourses. Rajesh Export slumped by 10.36% at Rs58.40, Videocon Industries dropped 6.12% at Rs275.40 and Blue Star fell by 3.89% at Rs374.55.
Over 2.37 crore MVL shares changed hands on the BSE followed by Reliance Petroleum (1.51 crore shares), Reliance Natural Resources (1.44 crore shares), Chambal Fertilisers (84.61 lakh shares) and IFCI (81.62 lakh shares).
Valuewise, Reliance Industries registered a turnover of Rs379 crore on the BSE followed by Reliance Capital (Rs262 crore), MVL (Rs210 crore), Niraj Cement (Rs148 crore) and Reliance Communications (Rs141 crore).
Sensex down 960 points in two trading sessions
The market extended losses for the second successive day today, with Sensex shaving off nearly 1000 points in last two tradng sessions as high inflation, rising interest rates, record high oil prices and political concerns continued to haunt the markets. Over the past few days, the market has witnessed a sharp fall with bears totally dominating the proceedings on the street.
The barometer index BSE Sensex today hit its lowest level in more than 14 months. Realty, consumer durables, oil & gas and capital goods stocks fell. The market breadth was weak.
Political uncertainty weighted on market sentiments. The media continues to speculate whether the ruling Congress led United Progressive Alliance government will be able to push through a much-debated Indo-US nuclear deal and still retain its power, in the face of heavy opposition from its key communist allies. The Left parties on Sunday, 29 June 2008, renewed their threat to withdraw support from the ruling coalition if Prime Minister Manmohan Singh forged ahead with the nuclear deal.
The uncertainty pertains to whether there will be stability at the centre if mid-term polls are held i.e. whether the new government will complete five years and whether the new government restarts economic reforms process which has virtually come to a halt in the last two years or so.
A sustained selling of Indian stocks by foreign institutional investors (FIIs) has also dented market sentiment. As per provisional data, foreign funds sold shares worth a net Rs 703.11 crore on Friday, 27 June 2008. FII outflow in June 2008 totaled Rs 9349 crore (till 26 June 2008). FII outflow in calendar year 2008 totaled Rs 24,719.10 crore (till 26 June 2008).
The 30-share BSE Sensex plunged 340.62 points or 2.47% at 13,461.60. Sensex lost 396.68 points at day’s low of 13,405.54, its lowest level in more than 14 months. Sensex gained 69.84 points at its high of 13,872.06 hit in mid-morning trade.
The broader based S&P CNX Nifty was down 96.1 points or 2.32% at 4,040.55.
Sensex had slumped 619.60 points or 4.30% to 13,802.22 on Friday, 27 June 2008. A setback to stocks in Asia and US, sharp spurt in crude oil prices and political uncertainty due to Indo-US nuclear deal rattled the bourses on that day. From a record high of 21,206.77 hit on 10 January 2008, Sensex has lost 7,745.17 points or 36.52% to current 13,461.60. It has declined 6,825.39 points or 33.64% in calendar year 2008 so far.
BSE clocked a turnover of Rs 4,439 crore today as compared to Rs 6,015.06 crore on Friday, 27 June 2008.
Nifty July 2008 futures were at 3960, at a steep discount of 80.55 points as compared to spot closing of 4040.55. NSE's futures & options (F&O) segment turnover was Rs 40,590.90 crore, which was lower than Rs 45,408.54 crore on Friday, 27 June 2008.
The market breadth was weak on BSE with 542 shares advancing as compared to 2,107 that declined. 43 remained unchanged. 21 stocks ended in red from Sensex pack.
As per the provisional figures on NSE, foreign institutional investors sold shares worth Rs 208.66 crore today, 30 June 2008 while domestic funds bought shares worth Rs 724.18 crore.
The BSE Mid-Cap index declined 3.1% to 5,386.48 and BSE Small-Cap index fell 3.4% to 6,701.96. Both these indices underperformed Sensex.
BSE Realty index (down 6.81% at 4,543.47), BSE Consumer Durables index (down 4.71% to 3,477.60), The BSE Oil & Gas index (down 4.03% to 9,009.16), The BSE Power (down 3.55% to 2,252.39), BSE Capital Goods index (down 3.46% at 10,080.69), BSE Bankex (down 3.43% at 5,915.98), BSE Auto (down 2.83% at 3,585.62), BSE PSU index (down 2.67% to 5,666.42), underperformed the Sensex.
BSE IT index (up 0.38% to 4,019.82), BSE FMCG index (up 0.35% to 2,080.33), BSE Health Care index (up 0.34% at 4,164.33), BSE Metal index (down 0.64% to 13,207.30), BSE TecK index (down 1.6% to 3,043.99), outperformed the Sensex.
Realty stocks tumbled. Unitech (down 6.65% to Rs 170.65), Indiabulls Real Estate (down 8.56% to Rs 271.20) and DLF (down 6.6% to Rs 396.20) edged lower.
Consumer durables stocks declined. Rajesh Exports (down 10.36% to Rs 58.40), Videocon Industries (down 6.12% to Rs 258.55), Blue Star (down 3.89% to Rs 374.55), and Titan Industries (down 3.63% to Rs 991.55) edged lower.
Oil & Gas stocks declined. HPCL (down 5.52% to Rs 175.35), Gail (India) (down 2.4% to Rs 332.95), BPCL (down 6.3% to Rs 236), Indian Oil Corporation (down 2.74% to Rs 332.25) edged lower.
State run oil refiner ONGC declined 1.86% to Rs 814.70. It came off from session's high of Rs 853.50. It has reportedly discovered a new oil field in the Farsi oil bloc of the Persian Gulf. ONGC will undertake the development of the newly discovered field upon determining that its development is economically feasible.
Oil prices rose to a record near $143 a barrel on Friday, 27 June 2008, as a drop in global equities markets lured more investors into commodities. Crude oil rose one dollar in electronic trading to $141.21 a barrel on Monday, 30 June 2008.
Capital Goods stocks fell. India’s largest engineering and construction firm by sales Larsen & Toubro was down 3.7% to Rs 2,183.20. It came off from session's high of Rs 2,308. The company today said it had received an order wroth Rs 1,557 crore from Andhra Pradesh Power Development Company for the supply of steam turbine generators.
India's biggest power equipment maker in terms of revenue, Bharat Heavy Electricals was flat at Rs 1,380.60. The company today said it has bagged an order exceeding Rs 2080 crore for a 400-megawatt thermal power project in Syria. Wind turbine maker Suzlon Energy declined 6.29% to Rs 215.90.
Anil Dhirubhai Ambani group stocks tumbled. Reliance stocks slumped. Reliance Infrastructure lost 11.47% to Rs 784.80 and Reliance Communications shed 6.58% to Rs 442.40.
Hindalco Industries (up 1.97% to Rs 142.10), ITC (up 1.66% to Rs 187), Jaiprakash Associates (up 0.84% to Rs 143.85), Cipla (up 0.29% to Rs 211.10), NTPC (up 0.4% to Rs 151.65), Tata Steel (up 0.22% to Rs 728.35) edged higher from the Sensex pack.
ACC (down 9.8% to Rs 522.50), Ambuja Cements (down 6.83% to Rs 75.70), Grasim Industries (down 6.66% to Rs 1,815), DLF (down 6.6% to Rs 396.20), Tata Motors (down 5.03% to Rs 426.50), Mahindra & Mahindra (down 5% to Rs 485.05), HDFC (down 4.4% to Rs 1,962.40), edged lower from the Sensex pack.
Reliance Petroleum clocked the highest volume of 1.51 crore shares on BSE. Reliance Natural Resources (1.44 crore shares), Chambal Fertilisers and Chemicals (84.61 lakh shares), IFCI (81.62 lakh shares) and Ispat Industries (79.15 lakh shares) were the other volume toppers in that order.
Reliance Industries clocked the highest turnover of Rs 379.85 crore on BSE. Reliance Petroleum (Rs 262.7 crore), Reliance Capital (Rs 243.63 crore), Niraj Cement Structurals (Rs 148.04 crore) and Reliance Communications (Rs 141.88 crore) were the other turnover toppers in that order.
European markets which opened after Indian markets were mixed. Key benchmark indices in France and UK were up by between 0.04% to 0.81%. Germany’s DAX fell 0.91%.
Asian markets were trading mixed today. The key benchmark indices in Singapore, China, Japan and Taiwan were down by between 0.33% to 1%. Key benchmark indices in HangSeng and South Korea were up by 0.01% to 0.27%.
US markets finished lower for the second consecutive day on Friday, 27 June 2008, hit by surging crude oil prices and a fresh round of banking troubles. The Dow Jones Industrial Average fell 106.91, or 0.93 %, to 11,346.51. The Nasdaq composite index fell 5.74, or 0.25% to 2,315.63 and S&P 500 index fell 4.77, or 0.37% to 1,278.38.
Market likely to be volatile
The market may open on a weak note as Asian indices are exhibiting a mixed trend in the morning trades followed by Friday's loss in the US markets. It may keep the market volatile. Pressure on the liquidity front because foreign institutional investors (FIIs) are net sellers of equity could make the investors jittery. On the upside, the Nifty could test the recent high around the 4190 level and may witness support around the 4090 level. The Sensex has a likely support at 13730 and may test higher levels of 13945.
US indices fell sharply on Friday with the Dow Jones tumbling 107 points to close at 11346. The Nasdaq dropped 6 points at 2316.
Indian floats largely had a mixed outing on the US bourses. Tata Motors was the major loser and declined by above 6% followed by ICICI Bank and MTNL, which lost 4.29% and 4.04% respectively. HDFC Bank, Rediff, Patni Computer and VSNL ended with steady losses. Among the gainers, Satyam, Infosys, Dr Reddy's and Wipro ended with steady gains.
Crude oil prices in the US market gained and jumped to an all-time high of $142.60 on Friday as a sell-off on Wall Street sent the Dow Jones into bear market. At the end the Nymex Light Crude oil for August 2008 delivery gained 57 cents to close at $140.21 a barrel. However, in the commodity space, the Comex gold for August 2008 series gained $16.20 to settle at $931.30.
Weakness in the market may persist
The market may extend a sharp fall witnessed over the past few days. Concerns about slowdown in corporate earnings, political uncertainty and sustained FII inflow will continue to keep market sentiments edgy. The barometer index BSE Sensex tumbled to its lowest level in 13 months on Friday, 27 June 2008.
Companies in sectors ranging from capital goods to automobiles are feeling the heat on their margins from rising input costs and slackening growth over the past two quarters. Nevertheless, advance tax payment by the Indian corporate sector this year so far has been decent to strong. Government’s direct tax collection from the corporate sector rose 39.81% to Rs 30655 crore until 21 June 2008 compared to the corresponding period last year.
Oil prices rose to a record near $143 a barrel on Friday, 27 June 2008, as a drop in global equities markets lured more investors into commodities. Crude oil rose one dollar in electronic trading to $141.21 a barrel on Monday, 30 June 2008.
Political uncertainty continues to haunt the bourses. The media continues to speculate whether the ruling Congress led United Progressive Alliance government will be able to push through a much-debated Indo-US nuclear deal and still retain its power, in the face of heavy opposition from its key communist allies. The Left parties on Sunday, 29 June 2008, renewed their threat to withdraw support from the ruling coalition if Prime Minister Manmohan Singh forged ahead with the nuclear deal.
A sustained selling of Indian stocks by foreign institutional investors (FIIs) has also dented market sentiment. As per provisional data, foreign funds sold shares worth a net Rs 703.11 crore on Friday, 27 June 2008. FII outflow in June 2008 totaled Rs 9349 crore (till 26 June 2008). FII outflow in calendar year 2008 totaled Rs 24,719.10 crore (till 26 June 2008).
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