Market extends losses

The market suffered losses for the fourth straight week in the week ended Friday, 8 February 2008 as selling pressure continued for index pivotals. The market slipped in three out of five trading sessions in the week. Volatility was high throughout the week. Small-cap and mid-cap indices outperformed the Sensex

Depressed secondary market hit IPOs in the week. Emaar MGF Land became second victim of the depressed secondary market conditions as the company withdrew its IPO on Friday, 8 February 2008 due to poor response to the issue, a day after Wockhardt Hospitals on Thursday, 7 February 2008, pulled out its IPO for the same reason.

The BSE 30-shares Sensex lost 777.69 points or 4.26% to 17,464.89 in the week ended Friday, 8 February 2008. The S&P CNX Nifty lost 196.90 points or 3.70% to 5,120.35, in the week.

The BSE Mid-Cap index declined 128.27 points or 1.65% to 7,633.27, in the week ended Friday, 8 February 2008. The BSE Small-Cap index lost 151.97 points or 1.51% to 9,920.35, in the week.

The BSE Sensex has lost 3,741.88 points or 17.64% from a record high of 21,206.77 hit on 10 January 2008

Trading for the week started on an upbeat note with Sensex surging 417.74 points or 2.29% at 18,660.32 on Monday, 4 February 2008. On the same day, the broader CNX S&P Nifty gained 146.25 points or 2.75% at 5,463.50. The sentiment was boosted by Microsoft Corp's bid for Yahoo Inc and following China's buy of a large stake in takeover target Rio Tinto.

On Tuesday, 5 February 2008, the 30-share BSE Sensex rose a meagre 2.84 points or 0.02% at 18,663.16, after a weak start. The broader based CNX S&P Nifty was up 20.4 points or 0.37% to 5,483.90 on the same day.

The 30-share BSE Sensex slumped 523.67 points or 2.81% at 18,139.49 on Wednesday, 6 February 2008. On the same day, the broader CNX S&P Nifty declined 161.35 points or 2.94% at 5,322.55. Weak Asian markets played the spoilsport.

The 30-share BSE Sensex plunged 612.56 points or 3.38% at 17,526.93 following late sell-off in index pivotals. The broader CNX S&P Nifty lost 189.30 points or 3.56% at 5,133.25

On Friday, 8 February 2008, the Sensex declined 62.04 points or 0.35% to 17,464.89, after seeing volatile swings throughout the day. The broader CNX S&P Nifty slipped 12.90 points or 0.25% at 5,120.35.

India's largest private sector firm by market capitalization and oil refiner Reliance Industries fell 4.75% at Rs 2421.75 in the week. As per reports, Reliance Industries (RIL)'s two wells in D6 block in the Krishna Godvari (KG) basin have hit a technical snag. The loss to wells runs into about $175 million.

India's second largest listed telecom firm by sales Reliance Communications (RCom) advanced 5.61% to Rs 646.10 in the week. Reliance Infratel, a subsidiary of RCom has filed its draft red herring prospectus for an initial public offer (IPO) with the Securities and Exchange Board of India (Sebi). The company will offer 8,91,64,100 shares of Rs 5 each for cash, constituting 10.05% of its post-issue paid-up equity capital.

DLF, the largest real estate developer in terms of market capitalisation gained 0.39% to Rs 816.70 in the week. The stock will replace Glaxosmithkline Pharmaceuticals, in S&P CNX Nifty index from 14 March 2008.

India's third largest software services exporter Wipro declined 3.40% to Rs 422.45 in the week. As per reports the company plans to build electronic warfare systems, radars and flight simulators locally for US defence contractors.

Tata Motors, the country's largest truck manufacturer in terms of sales, shed 5.72% to Rs 711.15 in the week. It reported 11.76% fall in its passenger car sales in the domestic market during January 2008 at 20,119 units compared with 22,801 units in the same month a year ago.

India's largest oil exploration company in terms of market capitalisation Oil & Natural Gas Corporation (ONGC) lost 4.52% to Rs 997.25 in the week. As per reports, British oil major British Gas is all set to pick up a 30% stake in ONGC's Krishna Godawari basin block and 25% in Mahanadi basin block.

India's top small car maker in terms of sales Maruti Suzuki India slumped 11.15% to Rs 803.85 in the week. The company has raised prices of many of its models by Rs 1,000 to Rs 11,000 per unit.

Banking stocks were mixed during the week. ICICI Bank declined 10.94% to Rs 1066.70 and HDFC Bank lost 7.74% to Rs 1445.95. However, India's largest commercial bank in terms of net profit State Bank of India rose 0.27% to Rs 2,191.45.

Third quarter December 2007 results season has come to end. Most of the results were in line with market expectations. A total of 3321 companies reported 26.80% rise in net profit on 19.20% rise in net sales for Q3 December 2007 over Q3 December 2006. The net profit was boosted by 72.5% jump in other income

Annual inflation based on the wholesale price index rose 4.11% in the week ended 26 January 2008 from 3.93% in the week ended 19 January 2008, government data released on Friday, 8 February 2008 showed.

The Bank of England on Thursday, 7 February 2008, cut its key interest rate by a quarter percentage point to 5.25% to help shore up the economy but policymakers remained worries about inflation, dampening hopes of rapid-fire rate cuts. The European Central Bank kept euro-zone rates unchanged at 4% on the same day.

Meanwhile, Reliance Power, which raised a record $3 billion in its initial share sale in January 2008, will list on exchanges on Monday, 11 February 2008. The initial public offer had received bids for $190 billion.

The Bombay Stock Exchange (BSE) has decided to change the eligibility criteria for inclusion of scrips in 'A' group. The revised list will be announced on 18 February 2008 and will come into effect from 3 March 2008. A total of 200 companies will find place in A group. BSE has also discontinued the division of group 'B' into group 'B1' and 'B2'. All companies not included in group 'A', 'S' or 'Z', will constitute group 'B', according to a BSE circular.

On 7 February 2008, the Central Statistical Organisation released the advance estimates of national income for 2007-08. Gross domestic product (GDP) growth is estimated at 8.7% compared with 9.6% in 2006-07. Agriculture is expected to advance 2.6% in 2007-08 as against 3.8% in 2006-07. Manufacturing is expected to gain 9.4% in 2007-08.

On 4 February 2008, the International Monetary Fund (IMF), in a report summarising its annual consultation on India's economic policy, estimated India's growth at 8.75% for 2007-08 as a result of rising productivity and investment.