Market swung between gains and losses throughout the trading session. Banking and power stocks declined. FMCG and consumer durables stocks were in demand. IT stocks recovered from day's lows. Hindalco Industries and Larsen & Toubro declined sharply in late trade. Market breadth was strong.
India's wholesale price index rose 3.11% in the 12 months to 3 November 2007, above the previous week's rise of 2.97%, government data released today afternoon showed. The annual inflation rate was 5.45% during the corresponding week of the previous year.
The market had opened lower today extending Thursday (15 November 2007)s losses on worries that credit losses from US mortgage defaults and slumping US home prices would grow worse, hurting US economy and US corporate profits. It had bounced back from lower level after initial sharp fall.
Chief Executive John Stumpf of Wells Fargo & Co, the No. 2 US mortgage lender, told a conference on Thursday, 15 November 2007, that the US housing slump was far from over and was the worst since the Great Depression. Stocks declined across Asia and Europe due to concerns about US economy.
The market has been volatile in recent sessions, caught between jitters about the US housing problems and optimism about Indias economic outlook.
The 30-share BSE Sensex provisionally ended 27.01 points or 0.24% down at 19,737.88. Sensex hit a high of 19,838.03 in afternoon trade. At day's high, Sensex had risen 53.14 points. Sensex had lost as much as 312.38 points in early trade to a low of 19,472.51.
The broader CNX S&P; Nifty provisionally ended down 7.8 points or 0.13% at 5904.30.
BSE clocked a tunover of Rs 8854 crore compared to Thursday (15 November 2007)'s Rs 9,268.18 crore.
The market breadth was strong. On BSE, 1906 stocks advanced, while 901 stocks declined and 47 stocks were unchanged. 18 out of 30 stocks from the Sensex pack were in the red.
The BSE Mid-Cap index rose 1.30% to 8,523.39 and the BSE Small-Cap index rose 1.59% to 10,390.05.
Indias largest private sector firm by market capitalisation and oil refiner Reliance Industries moved up 0.36% to 2882.
Indias largest cigarette maker ITC jumped 8.36% to Rs 205.50. The stock has been rising ever since Citigroup came out with a buy rating on the stock recently, with a target price of Rs 215.
Indias top drug maker by market share Ranbaxy Laboratories declined 2.75% to Rs 412 after the drugmaker said it was recalling 600 mili gram (mg) and 800 mg tablets of its gabapentin drug from the US retail market.
Software stocks recovered after an initial decline. Satyam Computers rose 0.27% to Rs 430, TCS moved up 0.62% to Rs 985 and Wipro gained 1% to Rs 461. Indian IT firms rely on US market for more than 50% of their revenue.
The BSE IT index fell 0.94% to 4,156.91, led by decline in Infosys Technologies. Infosys lost 1.63% to Rs 1626.10.
The BSE Bankex fell 0.43% to 11,005.72. ICICI Bank, India's largest private sector bank by assets, fell 2.27% to Rs 1220, off session's low of Rs 1201.25.
Indias largest commercial bank State bank of India moved up 1.17% to Rs 2335, off sessions low of Rs 2270. The stock recovered on hopes the government would soon approve its right issue. SBI, 59.73% owned by the government, said last month it was planning to raise Rs 18000 crore by selling new equity around the end of 2007. On Wednesday, 14 November 2007, Finance Minister P Chidambaram said there was a strong case for the rights issue.
India's top mobile firm by market share Bharti Airtel moved up 1.32% to Rs 912 on reports that the company is not concerned about a drop in minutes of usage seen in the fiscal second quarter as new costumer additions are picking up well.
Hindalco Industries declined 5.42% to Rs 204, Larsen & Toubro fell 2.76% to Rs 4381, Reliance Communications fell 2.28% to Rs 708 and Reliance Energy fell 2% to Rs 1817.
Steel firm Essar Steel slumped 14.93% to Rs 49.85 after the company clarified that it has applied to BSE and NSE for delisting of the equity shares. The delisting price has been set at Rs 48.
Major European indices UKs FTSE 100, Germanys DAX and Frances CAC 40 were down by between 0.61% to 0.80%.
Asian stocks sank today, 16 November 2007, tracking overnight fall in US stocks. Key benchmark indices in Hong Kong, Japan, South Korea, Singapore and Taiwan were down by between 1.05% to 3.95%.
US stocks nose-dived on Thursday, 15 November 2007, as investors grappled with concerns about the strength of consumer spending and the overall economy after downbeat comments from Wells Fargo & Co. and J.C. Penney Co. The Dow Jones industrial average slid 120.96 points, or 0.91%, to finish at 13,110.05. The Standard & Poor's 500 Index dropped 19.43 points, or 1.32%, to close at 1,451.15. The Nasdaq Composite Index fell 25.81 points, or 0.98%, to 2,618.51.
US crude for December delivery settled down 66 cents, or 0.7%, at $93.43 a barrel on the New York Mercantile Exchange on Thursday. The catalyst for the drop in oil prices was data showing a surprising increase in US crude inventories in the latest week.
Meanwhile, as per media reports, private equity firm Blackstone Group, is said to have a huge pipeline of deals in India.
As per provisional data, FIIs sold shares worth a net Rs 153 crore on Thursday, 15 November 2007, when Sensex had lost 144.17 points or 0.72% to 19,784.89. FIIs were net sellers to the tune of Rs 999.50 crore this month (till 14 November 2007).
Massive FII inflow had send the market surging in September 2007 and October 2007. FII inflow was a robust in those two months - at Rs 16132.60 crore in September 2007 and Rs 20590.90 crore in October 2007. FII inflow had surged as huge liquidity infused by a steep 50 basis points cut in Fed funds rates in mid-September 2007 found its way into emerging markets.
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