Key benchmark indices suffered sharp losses mirroring its global peers on uncertainty about the potency of the US government's $700 billion bank bailout. High volatility was the hallmark of the day's trading session. All BSE sectoral indices suffered losses with IT, realty and banking leading the fall. However state-run oil marketing firms bucket weak market trend. The market breadth was weak. Ranbaxy Labs slumped over 11%.
European markets were trading lower. Key indices in UK, France and Germany were down 1.06% to 2.69%. Asian markets, which opened before Indian markets, were mixed. Key indices in China, Hong Kong and Singapore were down by 1.56% to 3.87%. However, key indices in Taiwan and South Korea were up by 1.17% to 1.44%. Japanese financial markets were closed today for Autumnal Equinox Day, a national holiday.
The BSE 30-share Sensex was down 424.65 points or 3.03% to 13,570.31. The index shed 451.49 points at the day's low of 13,543.47, hit in fag end of the session. The Sensex fell 16.7 points at day's high of 13,978.26, hit in mid-morning.
The S&P CNX Nifty was down 96.15 points or 2.28% to 4,126.90. Nifty September 2008 futures were at 4135, at a premium of 8.1 points as compared to spot closing.
The BSE Mid-Cap index was down 2.06% at 5,113.31 and the BSE Small-Cap index was down 1.63% at 6,092.97.
The market breadth was weak on BSE with 760 shares advancing as compared to 1823 that declined. 69 shares remained unchanged.
BSE clocked a turnover of Rs 4322 crore compared with Rs 4,886.79 on Monday, 22 September 2008. NSE's futures & options (F&O) segment turnover was Rs 68368.66 crore, which was higher than Rs 58188.03 crore on Friday, 19 September 2008.
India's largest drug maker by sales Ranbaxy Laboratories declined 11.05% at Rs 308.85 on reports the Canadian drug regulator, Health Canada, issued a notice to Ranbaxy saying it will be particularly cautious about drug marketing applications from Ranbaxy after the US drug regulator blocked the sale of more than 30 generic medicines made in two factories by the company. The stock had declined 2.70% in the previous session.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) declined 1.35% at Rs 2009.70. The stock came off session's high of Rs 2,096. Reliance Industries (RIL) began production of crude oil at KG-D6 block of the Krishna Godavari basin on 17 September 2008, the company said on 22 September 2008. RIL holds 90% participating interest in the block while the balance is being held by Niko Resources.
India's largest aluminium producer Hindalco Industries fell 1.59% at 108.10 after hitting a 52-week low of Rs 106.20 on BSE. The company's Rs 5,050 crore rights share offering for subscription Monday, 22 September 2008. The sale in a ratio of three shares for every seven held at Rs 96 a share will close on 10 October 2008. The company aims to use the funds to repay a bridge loan it had taken to buy Canada's Novelis in 2007.
Software shares tumbled on growing worries about outsourcing prospects amid a global financial turmoil. Satyam Computer (down 5.98% at Rs 331.65), TCS (down 5.91% at Rs 720.75), Wipro (down 5.77% at Rs 390.45), and Infosys Technologies (down 5.19% at Rs 1,543.35), slipped. The BSE IT index underperformed the Sensex, falling 5.07% at 3,455.05. Export-driven Indian software firms earn more than half of their revenue in dollar terms.
Realty shares extended previous session's fall. Indiabulls Real Estate (down 6.93% at Rs 209.50), Housing Development & Infrastructure (down 5.97% at Rs 209.60), and Unitech (down 3.66% at Rs 123.80), slumped. The BSE Realty index underperformed the Sensex, falling 4.68% to 3,903.82.
India's largest real estate developer by market capitalisation DLF fell 6.25% at Rs 394.60. As per recent reports, the company is retrenching around 300 employees across all its centres and subsidiaries as it decides to slow down its project execution, especially in Tier II cities, in the face of shrinking demand and expensive borrowing.
Banking shares were hard hit on fears local banks may reportedly suffer losses on their exposure to the US financial giants that collapsed recently. ICICI Bank (down 5.48% at Rs 599.70), HDFC Bank (down 4.62% at Rs 1237.70), and and State Bank of India (down 4.08% at Rs 1502.75), dipped. The BSE Bankex underperformed the Sensex, falling 4.19% to 6,804.42.
As per reports, nine of the country's largest commercial banks including State Bank of India (SBI), ICICI Bank and HDFC Bank reportedly have exposure of $420 million (Rs 2,000 crore) in the US financial giants. As per the government, banks other than SBI would suffer losses of Rs 600 crore due to the crisis. SBI alone has exposure of $170 million in Freddie Mac and Fannie Mae. The public sector giant's exposure in Lehman Brothers is estimated at $17 million.
The estimated losses are due to their ownership of securities sold by Fannie Mae, Freddie Mac, Merrill Lynch & Co., and Lehman Brothers Holding Inc, which have declined in value leading to marked-to-market losses, the report said.
Shares of three state-run oil marketing firms rose after crude oil for November 2008 delivery fell $3.30 to $106.07 a barrel in electronic trading today, 23 September 2008. BPCL (up 2.51% at Rs 345.55), Indian Oil Corporation (up 1.62% at Rs 388.60), and HPCL (up 1.24% at Rs 233.45), rose.
Reliance Industries clocked a highest turnover of Rs 396.30 crore on BSE. Reliance Capital (Rs 277.86 crore), Sesa Goa (Rs 239.39 crore), State bank of India (Rs 136.38 crore), and Reliance Natural Resources (Rs 135.41 crore), were the other turnover toppers on BSE in that order.
Sesa Goa reported a highest volume of 1.86 crore shares on BSE. Reliance Natural Resources (1.67 crore shares), Apollo Tyre (74.32 lakh shares), IFCI (67.07 lakh shares), and Cals Refineries (62.66 lakh shares), were the other volume toppers on BSE in that order.
The barometer index is down 6716.68 points or 33.10% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7636.46 points or 36% below its all-time high of 21,206.77 struck on 10 January 2008.
Diversified firm Karuturi Global rose 1.98% to Rs 20.65 on reports the company plans to raise $100 million by selling 15% stake in its Dubai based subsidiary to an undisclosed private equity firm.
Steel roll maker Tayo Rolls fell 3.59% to Rs 135.80 after the company scheduled a board meet on 26 September 2008 to price and fix swap ratio for its Rs 60.34 crore rights issue. The stock came off session's high of Rs 148.50 hit in early trade.
Construction firm Nagarjuna Construction Company lost 3.78% to Rs 112 even as the company secured four orders aggregating Rs 413 crore.
The BSE and NSE will extend trading hours from 24 September 2008 on account of disruption of satellite services due to sun outage. Trading will start as usual at 9.55 IST, but will be suspended between 11.25 IST and 12.10 IST. The day's session will end at 16.15 IST. The new trading timing will be effective till 8 October 2008.
European markets were trading lower. Key indices in UK, France and Germany were down 1.06% to 2.69%. Asian markets, which opened before Indian markets, were mixed. Key indices in China, Hong Kong and Singapore were down by 1.56% to 3.87%. However, key indices in Taiwan and South Korea were up by 1.17% to 1.44%. Japanese financial markets were closed today for Autumnal Equinox Day, a national holiday.
The BSE 30-share Sensex was down 424.65 points or 3.03% to 13,570.31. The index shed 451.49 points at the day's low of 13,543.47, hit in fag end of the session. The Sensex fell 16.7 points at day's high of 13,978.26, hit in mid-morning.
The S&P CNX Nifty was down 96.15 points or 2.28% to 4,126.90. Nifty September 2008 futures were at 4135, at a premium of 8.1 points as compared to spot closing.
The BSE Mid-Cap index was down 2.06% at 5,113.31 and the BSE Small-Cap index was down 1.63% at 6,092.97.
The market breadth was weak on BSE with 760 shares advancing as compared to 1823 that declined. 69 shares remained unchanged.
BSE clocked a turnover of Rs 4322 crore compared with Rs 4,886.79 on Monday, 22 September 2008. NSE's futures & options (F&O) segment turnover was Rs 68368.66 crore, which was higher than Rs 58188.03 crore on Friday, 19 September 2008.
India's largest drug maker by sales Ranbaxy Laboratories declined 11.05% at Rs 308.85 on reports the Canadian drug regulator, Health Canada, issued a notice to Ranbaxy saying it will be particularly cautious about drug marketing applications from Ranbaxy after the US drug regulator blocked the sale of more than 30 generic medicines made in two factories by the company. The stock had declined 2.70% in the previous session.
India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) declined 1.35% at Rs 2009.70. The stock came off session's high of Rs 2,096. Reliance Industries (RIL) began production of crude oil at KG-D6 block of the Krishna Godavari basin on 17 September 2008, the company said on 22 September 2008. RIL holds 90% participating interest in the block while the balance is being held by Niko Resources.
India's largest aluminium producer Hindalco Industries fell 1.59% at 108.10 after hitting a 52-week low of Rs 106.20 on BSE. The company's Rs 5,050 crore rights share offering for subscription Monday, 22 September 2008. The sale in a ratio of three shares for every seven held at Rs 96 a share will close on 10 October 2008. The company aims to use the funds to repay a bridge loan it had taken to buy Canada's Novelis in 2007.
Software shares tumbled on growing worries about outsourcing prospects amid a global financial turmoil. Satyam Computer (down 5.98% at Rs 331.65), TCS (down 5.91% at Rs 720.75), Wipro (down 5.77% at Rs 390.45), and Infosys Technologies (down 5.19% at Rs 1,543.35), slipped. The BSE IT index underperformed the Sensex, falling 5.07% at 3,455.05. Export-driven Indian software firms earn more than half of their revenue in dollar terms.
Realty shares extended previous session's fall. Indiabulls Real Estate (down 6.93% at Rs 209.50), Housing Development & Infrastructure (down 5.97% at Rs 209.60), and Unitech (down 3.66% at Rs 123.80), slumped. The BSE Realty index underperformed the Sensex, falling 4.68% to 3,903.82.
India's largest real estate developer by market capitalisation DLF fell 6.25% at Rs 394.60. As per recent reports, the company is retrenching around 300 employees across all its centres and subsidiaries as it decides to slow down its project execution, especially in Tier II cities, in the face of shrinking demand and expensive borrowing.
Banking shares were hard hit on fears local banks may reportedly suffer losses on their exposure to the US financial giants that collapsed recently. ICICI Bank (down 5.48% at Rs 599.70), HDFC Bank (down 4.62% at Rs 1237.70), and and State Bank of India (down 4.08% at Rs 1502.75), dipped. The BSE Bankex underperformed the Sensex, falling 4.19% to 6,804.42.
As per reports, nine of the country's largest commercial banks including State Bank of India (SBI), ICICI Bank and HDFC Bank reportedly have exposure of $420 million (Rs 2,000 crore) in the US financial giants. As per the government, banks other than SBI would suffer losses of Rs 600 crore due to the crisis. SBI alone has exposure of $170 million in Freddie Mac and Fannie Mae. The public sector giant's exposure in Lehman Brothers is estimated at $17 million.
The estimated losses are due to their ownership of securities sold by Fannie Mae, Freddie Mac, Merrill Lynch & Co., and Lehman Brothers Holding Inc, which have declined in value leading to marked-to-market losses, the report said.
Shares of three state-run oil marketing firms rose after crude oil for November 2008 delivery fell $3.30 to $106.07 a barrel in electronic trading today, 23 September 2008. BPCL (up 2.51% at Rs 345.55), Indian Oil Corporation (up 1.62% at Rs 388.60), and HPCL (up 1.24% at Rs 233.45), rose.
Reliance Industries clocked a highest turnover of Rs 396.30 crore on BSE. Reliance Capital (Rs 277.86 crore), Sesa Goa (Rs 239.39 crore), State bank of India (Rs 136.38 crore), and Reliance Natural Resources (Rs 135.41 crore), were the other turnover toppers on BSE in that order.
Sesa Goa reported a highest volume of 1.86 crore shares on BSE. Reliance Natural Resources (1.67 crore shares), Apollo Tyre (74.32 lakh shares), IFCI (67.07 lakh shares), and Cals Refineries (62.66 lakh shares), were the other volume toppers on BSE in that order.
The barometer index is down 6716.68 points or 33.10% in the calendar year 2008 so far from its close of 20,286.99 on 31 December 2007. It is 7636.46 points or 36% below its all-time high of 21,206.77 struck on 10 January 2008.
Diversified firm Karuturi Global rose 1.98% to Rs 20.65 on reports the company plans to raise $100 million by selling 15% stake in its Dubai based subsidiary to an undisclosed private equity firm.
Steel roll maker Tayo Rolls fell 3.59% to Rs 135.80 after the company scheduled a board meet on 26 September 2008 to price and fix swap ratio for its Rs 60.34 crore rights issue. The stock came off session's high of Rs 148.50 hit in early trade.
Construction firm Nagarjuna Construction Company lost 3.78% to Rs 112 even as the company secured four orders aggregating Rs 413 crore.
The BSE and NSE will extend trading hours from 24 September 2008 on account of disruption of satellite services due to sun outage. Trading will start as usual at 9.55 IST, but will be suspended between 11.25 IST and 12.10 IST. The day's session will end at 16.15 IST. The new trading timing will be effective till 8 October 2008.
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