Market shellacked on global weakness
Local bourses declined in step with battered global peers. Most of Asia-Pacific and European markets declined; China’s Shanghai Composite (down 2.93%), Singapore’s Straits Times (down 1.26%) and South Korea’s Seoul Composite (down 1.41%) were the worst hit by profit-booking.
The 30-shares BSE Sensex plunged 172.54 points, or 1.23%, to settle just below the 13,800 mark, at 13,799.49. It opened with an upward gap of 35.64 points, at 14,007.67. It also hit a high of 14,009.56, but began declining due to profit-booking. The fall accentuated in the second half of the day, the Sensex tumbling to a low of 13,756.86.
The S&P CNX Nifty lost 53.35 points (1.33%), to 3,962.
The market-breadth was weak on BSE, with over 1.5 losers for every gainer. Against 1,606 shares that declined, 967 advanced. Just 57 shares remained unchanged. The BSE Small-Cap index closed at 6,730.42, down 37 points, while the BSE Mid-Cap index lost 34 points, to 5,745.54.
The total turnover on BSE amounted to Rs 4,061 crore, compared to Rs 3,819 crore on Thursday (7 December).
Among the 30-Sensex pack, 27 declined while the only 3 of them managed some gains.
Tata Motors was the top loser, down 3.44% to Rs 861.50, as 3 lakh shares changed hands on BSE. It was down from an intra-day high of Rs 897.
ACC (down 2.95% to Rs 1,100), Hindalco (down 2.86% to Rs 178.15) and HLL (down 2.75% to Rs 233.75) were the other losers from the Sensex family.
Reliance Communication slipped 2.30% to Rs 445.85, after a block deal of 22.74 lakh shares was struck in the counter at Rs 454 per share. The counter clocked 35.27 lakh shares on BSE.
Index heavyweight Reliance Industries (RIL) lost 2.68% to Rs 1,265.90, on a volume of 11.20 lakh shares. The stock had slipped sharply from an intra-day high of Rs 1,310.
State Bank of India (SBI) lost 0.31% to Rs 1,342. As per reports, SBI intends to start operations in Israel by March 2007. The government-run moneylender also wants to enter Pakistan. The bank is expanding into countries, where India's trade and investment is set to grow in future.
NTPC declined 0.46% to Rs 151, as buying continued, after Merrill Lynch raised price target on the scrip, to Rs 180. In a recent report dated 5 December 2006, Merrill Lynch has raised its earnings estimates for NTPC. Its revised price target of Rs 180 on NTPC, is based on a discounted cash flow (DCF) analysis.
Reliance Energy was the top gainer, up 1.96% to Rs 552.65, on 3.02 lakh shares. The stock moved in a broad range of Rs 567.90 - Rs 541.
Grasim (up 0.06% to Rs 2,750) and Dr Reddy’s (up 1.50% to Rs 769) were the other survivors of the market carnage.
Reliance Communications was the top-traded counter on BSE with a total turnover of Rs 159.90 crore, followed by HDFC (Rs 143.53 crore) and Reliance Industries (Rs 143.48 crore).
Select shares from the sugar pack were in demand and kept their upward journey intact as buying continued on hopes that the sugar export ban may be lifted soon. Bajaj Hindusthan (up 1.80% to Rs 254), Simbhaoli Sugars (up 2.10% to Rs 69.50), Rajshree Sugars (up 1.67% to Rs 88.40), Balrampur Chini (up 1.42% to Rs 89.25), Uttam Sugar (up 1.10% to Rs 144) and Upper Ganges Sugar (up 0.47% to Rs 127.10) were the gainers from the sugar pack.
Among side-counters, i-flex solutions surged 16.90% to Rs 2,047, after Oracle Corp raised the open offer price for i-flex to Rs 2,100 per share. Oracle now intends to raise its stake in i-flex to 90% from the earlier plan of raising its holding to 75%, from existing 55%. In September 2006, Oracle had announced an open offer for 20% stake at Rs 1,475 per share.
Oracle’s substantial raise in the open offer price and the targetted stake in i-flex, sparking a rally in select other IT shares. Major gainers were Polaris Software (up 8.22% to Rs 146.75), Geometric Software (up 5.26% to Rs 119), Nucleus Software (up 4.66% to Rs 529.45), Subex Azure (up 5.14% to Rs 665.35), Sonata Software up (up 5% to Rs 51.80), Rolta (up 3.4% to Rs 261) and Mphasis BFL (up 2.93% to Rs 258.30).
Metal shares extended their recent fall with the BSE Metal index declining 159.93 points to 9,041.19. Ispat Industries (down 3.23% to Rs 11.40), Tata Steel (down 2.54% to Rs 479), Sterlite Industries (down 3.13% to Rs 553), Maharashta Seamless (down 2.76% to Rs 448.90), Jindal Steel & Power (down 3.57% to Rs 2130), JSW Steel (down 2.13% to Rs 329.25) moved lower.
UTV Software plunged 5.32% to Rs 262.60, despite acquiring two gaming companies, one in India and another in the UK. As per a statement issued to the bourses, UTV Software said it had acquired controlling stake in Indiagames, a Mumbai-based mobile and online gaming company, for around Rs 68 crore. It informed about buying a controlling stake in Ignition Entertainment, a British console games developer, for around Rs 60 crore.
Two block deals were struck on EIH counter, of 2.76 lakh shares each at Rs 110 and Rs 107.25, respectively. The stock lost 0.80% to Rs 105.15 on a total volume of 7.97 lakh shares.
Jewellery maker Rajesh Exports rose 5% to Rs 300.15, after the firm said it had secured a gold coin supply order worth Rs 25 crore from state-run Life Insurance Corp of India.
Teledata Informatics jumped 14.65% to Rs 18, after the firm said it plans to split up into three separate entities, each focusing on a specific business. The three entities will be called Teledata Marine Solutions, Teledata Technology Solutions and Teledata Informatics. The de-merger will create a potential to attract different sets of investors, strategic partners and lenders for each business, the company says.
Indian Oil Corporation, India's largest refiner, lost 2.42% to Rs 435.05. Reports say that the company bought 12.5% stake in the trans-Anatolian Pipeline Company, which is building a pipeline from Turkey's Black Sea port of Samsun to Ceyhan. It, however, did not give the price of acquisition. Tapco is currently owned by ENI of Italy, and Calik Enerji of Turkey on a 50-50 basis.
Infomedia India surged 10.16% to Rs 157.70, following news of T3's Indian launch under a licensing arrangement with the owner, Future Media. The company launched UK’s popular gadgets magazine, T3, which is priced at Rs 100. The monthly will have an initial print run of 22,000 copies.
Cosmetics maker Emami surged 7.12% to Rs 264, after three block deals of 92,656 shares were struck in the counter at an average Rs 235 per share, on BSE.
Mahindra & Mahindra (M&M) lost 2.23% to Rs 828, after it said on Friday that group company Mahindra Engineering & Chemical Company had sold its cable accessories division to 3M Electro & Communication India. The terms of the transaction have not been disclosed.
Peninsula Land rose 4.44% to Rs 694, after reports that it has plans for a rupee-dollar fund to buy land.
Bayer Cropscience was up marginally by 0.17% to Rs 269.50, after surging to an intra-day high of Rs 303.40, amid reports about the likely sale of Thane property for Rs 1,200 crore. The company has already got its large freehold land at Kokshet, Thane (near Mumbai), evaluated, and is close to reaching a deal with a large corporate. The evaluation places a price tag of Rs 1,200 crore, a huge premium to the existing rates in the area, reports add.
Shreyas Shipping & Logistics jumped 10.16% to Rs 133.90, after the company yesterday said it will raise up to Rs 150 crore for buyouts in India, or abroad. Shreyas Shipping may also utilise the funds to invest in other logistics companies.
Honeywell Automation India jumped 10% to Rs 1,776.95, amid reports that Honeywell Building Solution, a division of the company, is eyeing $1 billion sales in India by 2010.
The Nikkei average fell 0.34% on Friday as weaker-than-expected machinery orders data hit machinery stocks such as Fanuc Ltd., while Sanyo Electric Co Ltd. dropped on a cellphone battery recall. The Nikkei slipped 55.54 points to close at 16,417.82, after booking a six-week closing high on Thursday.
Hong Kong’s Hang Seng index lost 103 points (0.55%), to 18,739.99.
India's wholesale price index rose 5.30% in the 12 months to 25 November, lower than the previous week's annual rise of 5.45% due to a fall in food and energy prices, data showed on Friday. The annual inflation rate was 4.48% during the corresponding week of the previous year.
Profit-booking is likely to continue after India’s premier index, the BSE Sensex, rallied a little over 48% in this calendar year, as foreign funds purchased heavily, and the cumulative inflow from whom, in 2006, has reached $8.4 billion compared to a record inflow of $10.7 billion in 2005. Of these, $2 billion was pumped only a month -- November 2006.
The selling pressure is may last as a section of the market feels that investors will consolidate positions ahead of a record initial public offering of Cairn Energy's Indian subsidiary - Cairn India. The IPO, which will be India's biggest so far, is scheduled to open on 11 December, and is expected to rise up to $1.4 billion.
The European Central Bank had raised its key interest rate a quarter of a point to 3.5% on Thursday, despite strength in the euro that some analysts say could stunt economic growth and hurt the crucial export sector.
FIIs bought shares worth a net Rs 244 crore on 6 December, the day when the Sensex had risen 11 points. However, mutual funds sold shares worth a net Rs 177 crore the same day.
US stocks fell on Thursday as investors locked in profits ahead of jobs data on Friday that may show further weakening in the economy and hurt corporate earnings. The Dow Jones industrial average dropped 30.84 points, or 0.25%, to end at 12,278.41. The Standard & Poor`s 500 Index declined 5.61 points, or 0.40%, to finish at 1,407.29. The Nasdaq Composite Index slid 18.17 points, or 0.74%, to close at 2,427.69.
Oil prices rose in Asian trade, after the latest attack on an oil installation in Nigeria, and on growing expectations that OPEC will cut production further, dealers said. New York's main contract, light sweet crude for January delivery, was up 39 cents at $62.88 while Brent North Sea crude for January delivery rose 32 cents, to $62.89.
The 30-shares BSE Sensex plunged 172.54 points, or 1.23%, to settle just below the 13,800 mark, at 13,799.49. It opened with an upward gap of 35.64 points, at 14,007.67. It also hit a high of 14,009.56, but began declining due to profit-booking. The fall accentuated in the second half of the day, the Sensex tumbling to a low of 13,756.86.
The S&P CNX Nifty lost 53.35 points (1.33%), to 3,962.
The market-breadth was weak on BSE, with over 1.5 losers for every gainer. Against 1,606 shares that declined, 967 advanced. Just 57 shares remained unchanged. The BSE Small-Cap index closed at 6,730.42, down 37 points, while the BSE Mid-Cap index lost 34 points, to 5,745.54.
The total turnover on BSE amounted to Rs 4,061 crore, compared to Rs 3,819 crore on Thursday (7 December).
Among the 30-Sensex pack, 27 declined while the only 3 of them managed some gains.
Tata Motors was the top loser, down 3.44% to Rs 861.50, as 3 lakh shares changed hands on BSE. It was down from an intra-day high of Rs 897.
ACC (down 2.95% to Rs 1,100), Hindalco (down 2.86% to Rs 178.15) and HLL (down 2.75% to Rs 233.75) were the other losers from the Sensex family.
Reliance Communication slipped 2.30% to Rs 445.85, after a block deal of 22.74 lakh shares was struck in the counter at Rs 454 per share. The counter clocked 35.27 lakh shares on BSE.
Index heavyweight Reliance Industries (RIL) lost 2.68% to Rs 1,265.90, on a volume of 11.20 lakh shares. The stock had slipped sharply from an intra-day high of Rs 1,310.
State Bank of India (SBI) lost 0.31% to Rs 1,342. As per reports, SBI intends to start operations in Israel by March 2007. The government-run moneylender also wants to enter Pakistan. The bank is expanding into countries, where India's trade and investment is set to grow in future.
NTPC declined 0.46% to Rs 151, as buying continued, after Merrill Lynch raised price target on the scrip, to Rs 180. In a recent report dated 5 December 2006, Merrill Lynch has raised its earnings estimates for NTPC. Its revised price target of Rs 180 on NTPC, is based on a discounted cash flow (DCF) analysis.
Reliance Energy was the top gainer, up 1.96% to Rs 552.65, on 3.02 lakh shares. The stock moved in a broad range of Rs 567.90 - Rs 541.
Grasim (up 0.06% to Rs 2,750) and Dr Reddy’s (up 1.50% to Rs 769) were the other survivors of the market carnage.
Reliance Communications was the top-traded counter on BSE with a total turnover of Rs 159.90 crore, followed by HDFC (Rs 143.53 crore) and Reliance Industries (Rs 143.48 crore).
Select shares from the sugar pack were in demand and kept their upward journey intact as buying continued on hopes that the sugar export ban may be lifted soon. Bajaj Hindusthan (up 1.80% to Rs 254), Simbhaoli Sugars (up 2.10% to Rs 69.50), Rajshree Sugars (up 1.67% to Rs 88.40), Balrampur Chini (up 1.42% to Rs 89.25), Uttam Sugar (up 1.10% to Rs 144) and Upper Ganges Sugar (up 0.47% to Rs 127.10) were the gainers from the sugar pack.
Among side-counters, i-flex solutions surged 16.90% to Rs 2,047, after Oracle Corp raised the open offer price for i-flex to Rs 2,100 per share. Oracle now intends to raise its stake in i-flex to 90% from the earlier plan of raising its holding to 75%, from existing 55%. In September 2006, Oracle had announced an open offer for 20% stake at Rs 1,475 per share.
Oracle’s substantial raise in the open offer price and the targetted stake in i-flex, sparking a rally in select other IT shares. Major gainers were Polaris Software (up 8.22% to Rs 146.75), Geometric Software (up 5.26% to Rs 119), Nucleus Software (up 4.66% to Rs 529.45), Subex Azure (up 5.14% to Rs 665.35), Sonata Software up (up 5% to Rs 51.80), Rolta (up 3.4% to Rs 261) and Mphasis BFL (up 2.93% to Rs 258.30).
Metal shares extended their recent fall with the BSE Metal index declining 159.93 points to 9,041.19. Ispat Industries (down 3.23% to Rs 11.40), Tata Steel (down 2.54% to Rs 479), Sterlite Industries (down 3.13% to Rs 553), Maharashta Seamless (down 2.76% to Rs 448.90), Jindal Steel & Power (down 3.57% to Rs 2130), JSW Steel (down 2.13% to Rs 329.25) moved lower.
UTV Software plunged 5.32% to Rs 262.60, despite acquiring two gaming companies, one in India and another in the UK. As per a statement issued to the bourses, UTV Software said it had acquired controlling stake in Indiagames, a Mumbai-based mobile and online gaming company, for around Rs 68 crore. It informed about buying a controlling stake in Ignition Entertainment, a British console games developer, for around Rs 60 crore.
Two block deals were struck on EIH counter, of 2.76 lakh shares each at Rs 110 and Rs 107.25, respectively. The stock lost 0.80% to Rs 105.15 on a total volume of 7.97 lakh shares.
Jewellery maker Rajesh Exports rose 5% to Rs 300.15, after the firm said it had secured a gold coin supply order worth Rs 25 crore from state-run Life Insurance Corp of India.
Teledata Informatics jumped 14.65% to Rs 18, after the firm said it plans to split up into three separate entities, each focusing on a specific business. The three entities will be called Teledata Marine Solutions, Teledata Technology Solutions and Teledata Informatics. The de-merger will create a potential to attract different sets of investors, strategic partners and lenders for each business, the company says.
Indian Oil Corporation, India's largest refiner, lost 2.42% to Rs 435.05. Reports say that the company bought 12.5% stake in the trans-Anatolian Pipeline Company, which is building a pipeline from Turkey's Black Sea port of Samsun to Ceyhan. It, however, did not give the price of acquisition. Tapco is currently owned by ENI of Italy, and Calik Enerji of Turkey on a 50-50 basis.
Infomedia India surged 10.16% to Rs 157.70, following news of T3's Indian launch under a licensing arrangement with the owner, Future Media. The company launched UK’s popular gadgets magazine, T3, which is priced at Rs 100. The monthly will have an initial print run of 22,000 copies.
Cosmetics maker Emami surged 7.12% to Rs 264, after three block deals of 92,656 shares were struck in the counter at an average Rs 235 per share, on BSE.
Mahindra & Mahindra (M&M) lost 2.23% to Rs 828, after it said on Friday that group company Mahindra Engineering & Chemical Company had sold its cable accessories division to 3M Electro & Communication India. The terms of the transaction have not been disclosed.
Peninsula Land rose 4.44% to Rs 694, after reports that it has plans for a rupee-dollar fund to buy land.
Bayer Cropscience was up marginally by 0.17% to Rs 269.50, after surging to an intra-day high of Rs 303.40, amid reports about the likely sale of Thane property for Rs 1,200 crore. The company has already got its large freehold land at Kokshet, Thane (near Mumbai), evaluated, and is close to reaching a deal with a large corporate. The evaluation places a price tag of Rs 1,200 crore, a huge premium to the existing rates in the area, reports add.
Shreyas Shipping & Logistics jumped 10.16% to Rs 133.90, after the company yesterday said it will raise up to Rs 150 crore for buyouts in India, or abroad. Shreyas Shipping may also utilise the funds to invest in other logistics companies.
Honeywell Automation India jumped 10% to Rs 1,776.95, amid reports that Honeywell Building Solution, a division of the company, is eyeing $1 billion sales in India by 2010.
The Nikkei average fell 0.34% on Friday as weaker-than-expected machinery orders data hit machinery stocks such as Fanuc Ltd., while Sanyo Electric Co Ltd. dropped on a cellphone battery recall. The Nikkei slipped 55.54 points to close at 16,417.82, after booking a six-week closing high on Thursday.
Hong Kong’s Hang Seng index lost 103 points (0.55%), to 18,739.99.
India's wholesale price index rose 5.30% in the 12 months to 25 November, lower than the previous week's annual rise of 5.45% due to a fall in food and energy prices, data showed on Friday. The annual inflation rate was 4.48% during the corresponding week of the previous year.
Profit-booking is likely to continue after India’s premier index, the BSE Sensex, rallied a little over 48% in this calendar year, as foreign funds purchased heavily, and the cumulative inflow from whom, in 2006, has reached $8.4 billion compared to a record inflow of $10.7 billion in 2005. Of these, $2 billion was pumped only a month -- November 2006.
The selling pressure is may last as a section of the market feels that investors will consolidate positions ahead of a record initial public offering of Cairn Energy's Indian subsidiary - Cairn India. The IPO, which will be India's biggest so far, is scheduled to open on 11 December, and is expected to rise up to $1.4 billion.
The European Central Bank had raised its key interest rate a quarter of a point to 3.5% on Thursday, despite strength in the euro that some analysts say could stunt economic growth and hurt the crucial export sector.
FIIs bought shares worth a net Rs 244 crore on 6 December, the day when the Sensex had risen 11 points. However, mutual funds sold shares worth a net Rs 177 crore the same day.
US stocks fell on Thursday as investors locked in profits ahead of jobs data on Friday that may show further weakening in the economy and hurt corporate earnings. The Dow Jones industrial average dropped 30.84 points, or 0.25%, to end at 12,278.41. The Standard & Poor`s 500 Index declined 5.61 points, or 0.40%, to finish at 1,407.29. The Nasdaq Composite Index slid 18.17 points, or 0.74%, to close at 2,427.69.
Oil prices rose in Asian trade, after the latest attack on an oil installation in Nigeria, and on growing expectations that OPEC will cut production further, dealers said. New York's main contract, light sweet crude for January delivery, was up 39 cents at $62.88 while Brent North Sea crude for January delivery rose 32 cents, to $62.89.
posted by SY at 7:45 PM
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