Dismal economic data and strengthening crude oil prices forced investors to dump shares across the board. IT stocks tumbled after IT bellwether Infosys said at the time of announcing Q1 June 2008 results today that the business environment was tough. All the sectoral indices on BSE were ih red. Capital goods slumped.
Meanwhile, crude oil jumped to $144.18 a barrel on Friday amid growing worries of threats to supplies from Nigeria and Iran, as well as concern over a Brazilian oil workers strike next week.
Industrial production rose 3.8% in May 2008, much lower than revised 6.2% growth in April 2008, the government data released today, 11 July 2008, afternoon showed. Industrial production growth for April 2008 revised downwards to 6.2% from earlier 7%.
Inflation based on the wholesale price index rose 11.89% in 12 months to 28 June 2008, above the previous week's annual rise of 11.63%, government data released today, 11 July 2008, afternoon showed. It was the reading since annual numbers in the current series became available in April 1995.
As per provisional closing, the 30-share BSE Sensex was down 425.04 points or 3.05% at 13,501.20. Sensex plunged 574.90 points at the days low of 13,351.34 hit in mid-afternoon trade. At the days high of 14,066.36, the Sensex gained 140.12 points at the onset of trading session.
The broader based S&P; CNX Nifty was down 102.85 points or 2.47% at 4059.35.
The BSE Mid-Cap index was down 2.04% at 5,363.58, while the BSE Small-Cap index was down 1.33% at 6,718.62.
The market breadth was weak on BSE, with 1635 losers outpacing 1013 gainers. 62 stocks remained unchanged.
BSE clocked a turnover of Rs 5299 crore as against Rs 4,825.81 crore on Thursday, 10 July 2008.
India's second largest software exporter by sales Infosys Technologies slipped 7.18% at Rs 1,676.45. Infosys today reported 4.2% growth in consolidated net profit to Rs 1302 crore in Q1 June 2008 over Q4 March 2008. Revenue rose 6.8% to Rs 4854 crore in Q1 June 2008 over Q4 March 2008.
Infosys has revised upwards earnings and revenue guidance for the year ending March 2009 (FY 2009). Infosys has forecast 24.4% to 26.6% growth in earnings per share as per Indian GAAP at between Rs 98.79 to Rs 100.51 in FY 2009 over the year ended March 2008 (FY 2008). It has forecast a between 27.5% to 29.5% growth in revenue at between Rs 21278 crore and Rs. 21622 crore in FY 2009 over FY 2008.
However, Infosys has not revised its earnings as well as revenue guidance in dollar terms i.e. as per US GAAP, which means that the upward revision in earnings and revenue guidance as per Indian GAAP is just due to a sharp fall in rupee against the dollar.
Indias largest private sector firm by market capitalization and oil refiner Reliance Industries declined 1.36% at Rs 2016.40.
Indias largest private sector bank by market capitalization ICICI Bank declined 4.09% at Rs 591.55.
Top Sensex losers were, Jaiprakash Associates (down 8.98% at Rs 155.65), TCS (down 7.87% at Rs 800.60), Larsen & Toubro (down 7.33% at Rs 2346), Reliance Infrastructure (down 6.85% at Rs 796.50), and Satyam Computer (down 6.6% at Rs 447).
The key Sensex gainers were, Ambuja Cement (up 2.47% at Rs 80.95), HDFC Bank (up 1.56% at Rs 1071.05), Cipla (up 0.66% at Rs 213), and Hindalco Industries (up 0.39% at Rs 154.25).
Indias top cellular service provider by sales Bharti Airtel rose 0.44% at Rs 745. It came off from early high of Rs 798.65. As per reports, the company added 2.56 million users in June 2008, taking its total user base to 69.4 million.
Indias largest commercial bank State Bank of India fell 0.16% to Rs 1236.20. The bank is likely to report double-digit net profit growth in the Q1 June 2008, Chairman O.P. Bhatt told media reporters today.
Stock broking firm Edelweiss Capital plunged 5.57% to Rs 524.35 after the company posted 10.08% fall in net profit to Rs 6.78 crore on a 84.52% rise in total income to Rs 56.63 crore in Q1 June 2008 over Q1 June 2007.
European markets, which were mostly higher earlier, declined as the session proceeded. Key indices in UK and France were down 0.08% to 1.09%. However, Germany's DAX index was down 0.10%.
Asian market which opened before Indian market rose, boosted by a report that the US government is weighing the takeover of top US mortgage lenders Fannie Mae and Freddie Mac which have been under fire on fears they may not be able to get the capital they need to survive. Key benchmark indices in Hong Kong, Japan, Singapore, South Korea and Taiwan were up by 0.87% to 2.39%. China's Shanghai Composite index was down 0.65%.
US stocks rose on Thursday, 10 July 2008, helped by optimism about a major deal in the chemicals sector and after the Federal Reserve chairman said the central bank and the government are focused on stabilizing the financial system. The Dow Jones Industrial Average rose 81.58 points or 0.73% at 11,229.02. The tech-laden Nasdaq Composite index rose 22.96 points or 1.03% to 2,257.85.
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