In a similar pattern witnessed yesterday, 18 March 2008, the market pared large part of its intra-day gains today. The Sensex fell below 15,000 mark in late trade. The market breadth was weak in contrast to a strong breadth earlier in the day. Traders refrained from building large positions ahead of a long weekend. The market remains closed on Thursday (20 March 2008) on account of Id-E-Milad and on Friday (21 March 2008) on account of Good Friday.
The market had galloped in the early trade as fears of a global turmoil in credit markets eased after a steep interest rate cut by the US Federal Reserve and following better-than-expected results from two major investment banks -- Goldman Sachs Group and Lehman Brothers Holdings. European markets which opened after Indian market, were in red.
The 30-share BSE Sensex provisionally ended up 204.39 points or 1.38% at 15,037.85. It hit a high of 15,465.81 in early trade. At days high, Sensex rose a massive 632.35 points. Sensex rose 96.62 points at the day's low of 14,930.08 hit in late trade.
The broader based S&P; CNX Nifty was up 52.55 points or 1.16% at 4,585.55 as per the provisional figures.
IT and auto stocks gained. Realty stocks fell. Satyam Computer Services and Tata Motors were major gainers from Sensex pack. The BSE Mid-Cap and Small-Cap indices declined.
The BSE Sensex clocked a turnover Rs 5766 crore today 19 March 2008 compared to Tuesday 18 March 2008's turnover of Rs 6,971.56 crore.
The US Federal Reserve on Tuesday 18 March 2008 cut its key interest rate by three-quarters of a percentage point. Though the cut was smaller than some market participants had expected, investors focused on the likelihood of future cuts. Wall Street expects the Fed to cut interest rates further next month, but any future cuts are likely to be smaller.
US investment banks Goldman Sachs and Lehman Brothers posted better-than-expected quarterly earnings, providing evidence that bank profits were intact despite the deepening credit crisis.
The market breadth was weak: on BSE 775 shares advanced as compared to 1,897 shares that declined. 37 shares remained unchanged.
The BSE Mid-Cap index declined 1.38% to 5,950.78. BSE Small-Cap index was down 2.03% at 7,215.41.
Indias largest private sector company in terms of market capitalisation and oil refiner Reliance Industries rose 0.25% to Rs 2,150.80. It came off from its high of 2,244.90.
Realty stocks declined. Unitech (down 3.79% to Rs 266.50), DLF (down 2.17% to Rs 621) and Indiabulls Real Estate (down 1.43% to Rs 445) edged lower.
IT stocks rose. Wipro (up 3.92% to Rs 374), Satyam Computer Services (up 4.71% to Rs 388) and Infosys (up 2.81% to Rs 1,350) edged higher. Tata Consultancy Services declined 1.14%t o Rs 808.
Auto stocks rose. Mahindra & Mahindra (up 2.98% to Rs 655.15), Tata Motors (up 5.01% to Rs 650), Maruti Suzuki India (up 2.14% to Rs 829.90) edged higher. But Indias largest motorcycle maker by sales Hero Honda Motors declined 4.42% to Rs 649.70.
From the sensex pack, ITC (up 2.26% to Rs 187.40), Bharti Airtel (up 2.59% to Rs 777.75), HDFC Bank (up 3.11% to Rs 1,270.05) , Larsen & Toubro (up 2.72% to Rs 2,839) and Ambuja Cements (up 3.11% to Rs 122.85) were major gainers.
Hindalco Industries (down 4.09%t o Rs 154.95), Hindustan Unilever (down 2.49%t o Rs 225.30), Reliance Energy (down 1.72%t o Rs 1,206.50), ICICI Bank (down 0.21% to Rs 766.35) and Grasim Industries (down 1.35% to Rs 2,595.05) were key losers from the Sensex pack.
Indias second largest telecom services provider by sales Reliance Communications (RCom) rose 1.82% to Rs 506.45. The company is reportedly planning to set up WiMax networks across 50 countries in the next three years to move into the global telecommunication market. To get a headstart, the telecom major is planning to acquire a European WiMax operator in a $300-400 million (Rs 1,200-1,600 crore) deal.
The Dow Jones Industrial Average surged 420.41 points or 3.51% at 12,392.66 on Tuesday, 18 March 2008. The Nasdaq Composite Index soared 91.25 points or 4.19% at 2,268.26.
European markets were in red. Frances CAC, Germanys DAX and UKs FTSE 100 were down by 0.4% to 0.81%.
In Asia on Wednesday, 19 March 2008, key benchmark indices in Hong Kong, Japan, South Korea, Taiwan and China were up by 1.42% to 2.53%.
Back home, reports that top Indian corporates have paid higher advance tax in the fourth installment of 15 March 2008, has raised expectations of good Q4 March 2008 results.
A torrent of bad news spooked bourses in the past few days with buyers deserting the market. Adding to the woes of domestic bourses already hit by tumbling global markets were earnings downgrade recently by brokerages of ICICI Bank, Indias biggest private sector bank in terms of net profit, and Larsen & Toubro, Indias biggest engineering and construction firm in terms of order book; lower-than-expected industrial production data for January 2008; and a surge in inflation.
The hike in short-term capital gains tax and alteration of tax treatment of the Securities Transaction Tax (STT) in Union Budget 2008-09 announced on 29 February 2008 has earlier dented sentiment. Buyers have stayed away from the bourses on continued uncertainty about the extent and duration of the credit crisis caused by the defaults in the US sub-prime mortgage market.
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