Indices started on a weak note following subdued global cues and the cement import duty cut, which pulled down cement stocks.

After attempting a recovery following very good results from Bharti, the indices slipped as SBI disappointed the market with its results. Cement stocks came under further pressure in the afternoon and the indices ended near their day's lows.

Sensex closed with losses of 168 points at 14041 and the Nifty lost 36 points to end at 4066. Nifty January futures closed at a premium of 1 point to the spot index.

Cement stocks lost substantially following the government decision to lower import duty on cement, though the decision may not lead to substantial increase in imports. ACC was the biggest loser, closing 6.97 per cent lower. Gujarat Ambuja Cements lost 6.71 per cent while Grasim ended 3.59 per cent lower despite good quarterly numbers

Third quarter results of SBI were below market expectations and the stock ended 4.12 per cent lower. Among other banks, PNB lost 2.25 per cent and HDFC Bank shed 2.22 per cent

Results of Dr. Reddy's also did not support the stock, which lost 4.79 per cent

Maruti gave up 2.11 per cent after yesterday's gains

Jet Airways finally corrected and ended 3.09 per cent lower

The modest recovery in crude oil prices led to a 2.68 per cent fall in BPCL

Zee Entertainment was the best performer among index stocks with gains of 4.88 per cent

Nalco added 3.88 per cent following better than expected metal price outlook from the management while Hindalco added 0.15 per cent

Bharti Airtel ended 2 per cent higher following results which were way above expectations. MTNL gained 0.33 per cent

Tata Power saw an up move and added 1.76 per cent

OBC was the only gainer among banks, gaining 1.7 per cent

Bajaj Auto and Gail India were the only other gainers among Nifty stocks, both ending with very marginal gains.

Global markets / crude oil
US markets slipped yesterday on persistent worries about the sustainability of corporate earnings growth. Investment banks and analysts have started downgrading some of the frontline stocks and the guidance from the companies itself have been subdued.

The Dow ended with losses of 0.7 per cent while the S&P 500 index gave up close to 0.55 per cent. Technology stocks were the biggest losers yesterday as well and the NASDAQ lost almost 0.85 per cent.

Asian markets were mostly weak today after yesterday's strong rally and the weak closing by US indices. Thailand continued its decline and lost another 0.65 per cent while Singapore closed 0.4 per cent lower. Indonesia lost 0.5 per cent while Hong Kong, South Korea and Japan ended with marginal losses.

Shanghai remained firm and added more than 0.5 cent after gaining nearly 6 per cent in the previous 2 sessions. Malaysia ended with gains of nearly a per cent.

European markets opened weak and remain subdued. Major indices are trading with losses of between 0.15 and 0.75 per cent each in early afternoon trades.

Crude oil prices were firm yesterday as the commodity extended its gains from Friday. Near month NYMEX futures settled at $52.58 per barrel yesterday. The commodity has gained another per cent and is trading above $53 per barrel in European trades today.
Large-cap news flow

• Bharti Airtel will acquire the Singapore-India submarine cable network for a consideration of $110 million. The company is also planning to launch DTH services through a subsidiary. The company would transfer its mobile communication towers and related infrastructure to a separate company.
• Bank of India would raise Rs800 crore by issuing tier-I perpetual bonds and an additional Rs1,200 crore by issuing upper tier-II bonds
• Infosys said it has successfully completed the Oracle E-business suite implementation at Toshiba America.
• Wipro would hold a 66-per cent stake in a Saudi Arabian JV to offer application development and management, package implementation and system integration services.

Mid-Cap Action

Mid-caps and small caps tried to resist the selling pressure in the morning but gave up in afternoon trades. The CNX Mid-Cap index ended 70 points, or 1.34 per cent, lower at 5212. BSE mid-cap index lost 1.15 per cent and the BSE small cap index ended with losses of 0.84 per cent.

Pyramid Saimira continued its surge and closed at the 20 per cent upper circuit. Shree Ashtavinayak Cine, another new listing in the movie theatre business, rallied 10.79 per cent.

Among mid-cap technology stocks, NIIT Limited gained 11.47 per cent and KPIT Cummins rallied 11.66 per cent. Rolta added 6.97 per cent

Clutch Auto, Vishesh Info, Surya Roshni, Everest Kanto and Crisil were the major mid-cap gainers.

Mid-cap cement stocks came under severe pressure and lost substantially. Kesoram, Mangalam Cement and India Cements were the major losers.

Calsoft, Keval Kiran, Birla Jute, Mukand Engineering, India Infoline, Ceat and OCL were among the major mid-cap losers.

Mid-cap news flow

• Bhushan Steel would set up a new 6 million tonnes per annum steel plant as an expansion of its existing unit in Orissa. The company is also planning a new steel plant of unspecified capacity in West Bengal
• Patni Computer has expanded its US operations by opening its third regional development centre
• Cambridge Solutions would sell part of its US operations for $30 million in cash
• Themis Medicare would take a 5-year external commercial borrowing of $4 million
• Radha Madhav Corp has commissioned expanded production capacities
• Champagne Indage would acquire a wine business in Australia with a winery capacity of 3 million cases and 70 acres of land
• Southern Iron & Steel would issue shares to the extent of Rs395 crore on conversion of optionally convertible loans
• California Software would issue 5.56 lakh equity shares at a price of Rs90 per share on a preferential basis
• Mirza International is considering additional fund raising through issue of securities
• Surya Roshni is planning to invest Rs10 crore in real estate business
• Omax Autos said it would set up a manufacturing unit for chassis of medium and heavy commercial vehicles for Tata Motors in Lucknow
• BAG Films said a private investor would make an open offer for an additional 20 per cent stake in the company at a price of Rs13 per share
• Emco would manufacture dry type transformers
• Era Constructions has priced its $60 million FCCB offering with an option to retain an additional $15 million. The 5-year bonds would be convertible at a premium of 20 per cent
• Federal Mogul Goetze has increased the rights issue size to Rs115 crore from Rs100 crore
• JB Chemicals would make a strategic investment in a South African company
• Shree Precoated Steels would merge a privately held entity with the company
• Jumbo Bags would issue 30 lakh convertible warrants
• Mid-Day Multimedia has raised Rs33.7 crore by issuing equity shares and another Rs5 crore by issuing preference shares to promoters and Bennett, Coleman & Co.
• The board of Suven Life would meet later this month to consider a stock split and bonus issue
• Provogue India has sold a 25 per cent stake in its mall development subsidiary to a Mauritius-based company
• Premier Limited would issue 43.26 lakh convertible warrants to promoters at a price of Rs38.5 per share
• Bhartiya International would set up a 300-acre leather SEZ in Andhra Pradesh
• Ramsarup Industries has commenced the fencing work worth Rs28 crore at the Bangladesh border
  

*Disclaimer: The author may have positions in some of the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever.