All the hopes of a stable week of trading, raised by the sustained recovery over the pervious 4 trading sessions, were shattered today as the indices crashed yet again. The selling was so widespread and a repeat of weakness seen during the first 2 days of the previous week as both frontline indices lost over 2.5 per cent each.
Sensex closed with losses of 349 points at 13382 and the Nifty lost 97 points to end at 3832. Nifty December futures closed at a discount of 35 points to the spot index.
Technology stocks came under heavy pressure following the decline in ADR prices yesterday. HCL Tech was the worst performer in the sector, losing 3.94 per cent. Satyam gave up 3.47 per cent and TCS lost 3.34 per cent while Infosys ended 3.01 per cent.
BHEL was the worst performer among index stocks, losing 4.15 per cent. L&T gave up 3.78 per cent and ABB gave up 2.96 per cent while Siemens closed 2.76 per cent lower.
Tata Motors, one of the best performers yesterday, lost 3.51 per cent. M&M lost 2.51 per cent and Maruti shed 1.37 per cent.
Tata Power, another major gainer yesterday, declined 3.39 per cent.
Reliance Communications saw considerable selling pressure and lost 3.72 per cent. Bharti closed 2.22 per cent lower.
Reliance Industries lost 2.76 per cent while ONGC closed 1.09 per cent lower. Gail India ended 3.92 per cent lower.
ACC was the worst performer among cement stocks, declining 3.5 per cent.
Among banks, SBI lost 3.11 per cent and PNB slipped 2.59 per cent. HDFC Bank gave up 2.62 per cent and ICICI Bank lost 2.14 per cent.
There were only 2 gainers among Nifty stocks. Hero Honda added 0.44 per cent and Zee Entertainment closed 0.2 per cent higher.
Global markets / crude oil
US markets corrected yesterday on profit booking, despite increased merger activity. Much of the weakness came in afternoon trades as oil stocks slipped after the correction in crude oil prices.
The Dow closed with marginal losses of less than 0.05 per cent while S&P 500 ended more than 0.3 per cent lower. Technology stocks were the worst hit and the NASDAQ ended almost 0.9 per cent lower.
Markets across Asia were weak today following the decline in US indices. Thailand crashed nearly 15 per cent following a government decision to discourage short term fund flows into the market. Indonesia tumbled nearly 3 per cent while Singapore closed almost 2.25 per cent lower. Malaysia lost close to 2 per cent and Japan ended 1.1 per cent lower. Hong Kong gave up 1.2 per cent while South Korea lost 0.4 per cent.
Shanghai continued to rally, despite the weakness across the region, and gained another 1.35 per cent after rallying 2.5 per cent yesterday.
European markets were mixed in opening trades but have declined in early afternoon trades. Major indices are trading with losses of between 0.7 and 0.95 per cent each.
Crude oil prices corrected yesterday on renewed speculation about milder winter and rising oil inventories across the globe. Near month NYMEX futures ended nearly 2 per cent lower at $62.21 per barrel. The commodity has slipped further and is trading below $62 per barrel in European trades today.
Large-cap news flow
- Reliance Industries has made another oil discovery in the KG basin, according to unconfirmed reports. The company holds a 90 per cent stake in the exploration field
- may raise up to Rs9,000 crore from overseas markets next year to part-finance the 4,000 MW ultra-mega power project at Mundra, Gujarat - according to unconfirmed media reports. The project is expected to cost around Rs18,000 crore
- Lanco Infratech said the company, in consortium with an overseas firm, is the successful bidder for the 4,000 MW ultra-mega power project at Sasan in Madhya Pradesh. The proposed plant may involve investment of over Rs16,000 crore and would use locally mined coal
Mid-caps and small caps also came under pressure today, but overall losses were much lower than large caps. Select mid-caps continued to see significant price action as trading interest remained high, even as others corrected.
The CNX Mid-Cap index ended 71 points, or 1.4 per cent, lower at 4939. BSE mid-cap index lost 1.21 per cent and the BSE small cap index ended with losses of 1.07 per cent.
Goldstone Technologies was locked in the 10 per cent upper circuit today as well, taking 7 day gains to 100 per cent. Teledata and Texmaco were also locked in 10 per cent upper circuits.
Birla Ericsson gained another 11.27 per cent after surging 20 per cent yesterday.
Carol Info, Entertainment Network, Tulip IT, SB&T International, Zenith Info and Karnataka Bank were the other major gainers
Hindustan Composites, RS Software, Fedders Lloyd, Yokogawa, Crompton Greaves, Matrix Labs, Pudumjee Pulp and Ennore Foundries were among the major mid-cap losers.
Mid-cap news flow
- Varun Shipping has acquired a new 57,206 cbm capacity LPG tanker, taking the total number of LPG tankers in the company's fleet to 12.
- Lupin has received tentative US FDA approval for a hypertension drug with a market size of $53 million.
- Taneja Aerospace has allotted 23.5 lakh equity shares to Merrill Lynch at a price of Rs155 per share.
- UTV has denied media reports that the company is ion discussions to buy Dhruva Interactive.
- Bombay Rayon Fashions is considering a preferential issue of convertible warrants to promoters. Warrants would be convertible at a price of Rs207 per share.
- Binani Industries said its subsidiary Binani Zinc has received closure notice from pollution control authorities.
- Goldstone Technologies has entered into an agreement with BSNL to provide IPTV and gaming services to the latter's customers in Hyderabad.
- Dwarikesh Sugar said its sugar mill expansions and new mills would benefit from the UP state government's incentive scheme for new capital investment.
- Rana Sugars said it would start commercial production at its new mill with a crushing capacity of 5,000 tonnes per day and cogeneration unit of 20 MW.
- The board of HOV Services would meet later this week to consider raising of additional funds.
- Tata Metalliks has completed the Rs17 crore expansion at one of its blast furnances. The company has also completed construction of a railway siding at one of its units.
- Dollex Industries has started commercial production at a sugar mill taken on a 6-year lease.
- Stone India has received an order for a freight train brake system costing Rs94 lakhs per train.
- R Systems would issue 4.1 lakh equity shares at a price of Rs250 per share to shareholders of a company being acquired. The company would open a branch office in Belgium.
- The board of Havells India would meet next week to consider a QIP or GDR/FCCB issue.
- The board of ANG Auto would meet later this week to consider a FCCB issue and preferential issue to promoters.