The market slipped deep into the red in mid-morning trade led by fall in IT stocks and sharp fall in Reliance Industries from higher level. Political concerns eased further after Prime Minister Manmohan Singh today said the government hopes to complete his full five-year term and avoid early elections.
Earlier, the market had recovered from lower level from initial slide that was caused by weak Asian markets. Metal, oil & gas stocks were in demand. Capital goods stocks slipped. Most of the sectoral indices were in the red. Reliance Industries pared gains after hitting all-time high. Market breadth turned negative. Asian markets, which opened before Indian market, were subdued to weak.
At 11:25 IST, the BSE 30-share Sensex was down 195 points, or 1.04%, to 18,611.94 points. It opened subdued today. It hit a intraday low of 18,576.90 in mid-morning trade. At day's low of 18,576.90, Sensex had declined 237.17 points for the day.
The broader based S&P; CNX Nifty was down 54.35 points, or 0.98%, to 5,470.50.
Of the 30 shares of the Sensex, 8 had moved up, while the remaining were trading down. The market breadth was weak on BSE: 967 scrips advanced, 1,479 declined, while 579 remained unchanged.
Elections are still far away and the government has one-and-a-half years to complete, Prime Minister Manmohan Singh said today, 12 October 2007. The prime minister said if the India-United States civil nuclear deal does not come through, it will be a disappointment. He said the government was trying to reconcile the divergent points of view on the issue within the ruling coalition. Dr. Singh said ys it is his hope that on the nuclear deal, common sense will ultimately prevail.
He said it is his hope and expectation that the government will stay the course and noted there is a lot of unfinished agenda left to be completed. Left front which is supporting the government from outside has been against operationalisation of the nuclear deal with the US, which had caused a rift between the government and the Left front.
Metal stocks surged tracking firm global metal prices. Tata Steel (up 2.98% to Rs 873.90), Sterlite Industries (up 0.32% to Rs 824.80), Sail (up 2.11% to Rs 229.50) and Hindalco Industries (up 0.09% to Rs 176) edged higher.
Capital Goods stocks eased. L&T; (down 0.83% to Rs 3,457.80), Suzlon Energy (down 2.71% to Rs 1,730) edged lower. Bharat Heavy Electricals, however, rose 0.4% to Rs 2,431.
ICICI Bank declined 3.37% to Rs 1,053 and was the major loser from Sensex pack.
Indias largest private company in terms of market capitalization and oil refiner Reliance Industries (RIL) rose 0.99% to Rs 2,655.60. The stock came off sharply from higher level. It hit an all-time high of Rs 2,724 today. It holds its annual general meeting (AGM) today, 12 October 2007. Expectations have been running high about RIL declaring bonus or stock split at the AGM.
ONGC rose 2.77% to Rs 1,094.05. It hits an all-time high of Rs 1,112.85 today.
Reliance Energy (up 0.45% to Rs 1,605) and Mahindra & Mahindra (up 1.86% to Rs 829) edged higher.
IT stocks declined further and they were the major losers from Sensex pack. Strong rupee and possible US recession had hit the stocks since yesterday after Infosys had announced its Q2 September 2007 results before trading hours. Infosys (down 2.63% to Rs 1,924), Wipro (down 2.67% to Rs 475.05), Satyam Computer (down 3.19% to Rs 433.65), TCS (down 3.16% to Rs 1,038) edged lower.
Indias largest telecom services provider in terms of market share, Bharti Airtel, declined 1.93% to Rs 1,075.
HDFC Bank was down 1.4% to Rs 1,436. It announces Q2 September 2007 results today.
Mastek surged 18.73% to Rs 381.50 after its board approved the buyback of the company's equity shares for an amount up to Rs 65 crore.
Shares in apparel retailer Koutons Retail made their debut at Rs 515 at a 24% premium higher from the issue price of Rs 415. It was trading at Rs 592.15 now, at a premium of 42.69% over IPO price of Rs 415.
SE Investments (up 20% to Rs 306.40) , Cinerad Communications (up 20% to Rs 14.99), Ras Resorts (up 16.09% to Rs 44) edged higher.
Genesys International (down 25.24% to Rs 34.65), Aro Granite Industries (down 12.19% to Rs 82.50) edged lower.
Unity Infraprojects rose 5.07% to Rs 707 after the company and joint venture partner Nagarjuna Construction Co won orders worth Rs 2.25 billion.
Rolta India rose 6.22% to Rs 618 after firm said its board will consider a bonus issue on 22 October 2007 along with the quarterly results.
As per provisional data, FIIs bought shares worth a net Rs 795 crore on Thursday, 11 October 2007. Domestic institutions sold shares worth a net Rs 420 crore on that day.
Asian markets, which opened before the Indian markets, were subdued today. Hong Kongs Hang Seng (down 2.12% to 28,514.85) Singapores Straits Times (down 1.11% to 3,832.78), Japan's Nikkei (down 0.85% at 17,307), South Koreas Seoul Composite (down 1.71% to 2,023.29), Taiwan's Taiwan Weighted (down 2.14% to 9,490.01) edged lower.
On Wall Street on Thursday, 11 October 2007, Chinese Internet company Baidu.com Inc. tumbled 10% after JPMorgan cut its third quarter revenue target, spurring concerns that the recent US tech rally may be coming to a close. The tech-heavy Nasdaq Composite Index lost 39.41 or 1.4% at 2,772.20, while the blue-chip Dow which hit an intraday record high earlier, settled 63.57 points or 0.45% lower at 14,015.12.
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