labels: stock markets - india, markets - general
Sensex crashes 471 points as global sell-off continues news
Rex Mathew
05 March 2007

Continued sell-off in other Asian markets dashed all hopes of a market recovery and the indices opened substantially lower. The Sensex dropped over 500 points and the Nifty declined over 150 points in early trades as all the frontline index stocks remained under heavy pressure. After a few recovery attempts, which were beaten, back without much delay, the indices closed near their day's lows.

Sensex closed with massive losses of 471 points at 12415 and the Nifty crashed 150 points to end at 3577. Nifty March futures closed at a discount of 28 points to the spot index. This is the second worst decline for the indices this calendar year after the budget day crash of last week.

Reliance Industries lost another 4.32 per cent after Friday's more than 3 per cent decline. ONGC gave up 3.24 per cent. Gail India dropped sharply by 7.84 per cent and IPCL lost 7.5 per cent.

Among oil marketing stocks, HPCL slipped 6.26 per cent and BPCL gave up 3.65 per cent.

SAIL saw a major sell-off and slipped 8.46 per cent while Tata Steel lost 5.12 per cent.

Jet Airways was the worst performer among index stocks with losses of 9.7 per cent.

Among auto stocks, M&M crashed 7.96 per cent and Maruti gave up another 7.23 per cent. Tata Motors lost 4.58 per cent.

OBC was the worst performer among banking stocks with losses of 7.87 per cent. SBI lost 4.21 per cent and ICICI Bank dropped 2.53 per cent.

Among other banking and financial services stocks, IDBI crashed 10.86 per cent and Canara Bank lost 9.83 per cent. IDFC gave up 8.37 per cent.

Wipro was the biggest loser among technology stocks and ended 6.49 per cent lower. TCS gave up 4.39 per cent and Infosys shed 4.12 per cent. Satyam closed 3.08 per cent lower.

Among engineering stocks, Siemens crashed 7.59 per cent while L&T lost 5.12 per cent. BHEL closed 4.32 per cent lower and ABB declined 5.39 per cent.

Ranbaxy remained under heavy pressure and lost another 7.66 per cent while Dr. Reddy's closed 6.45 per cent lower.

ACC gave up another 5.04 per cent.

Select cement stocks recovered after last week's heavy losses. Gujarat Ambuja added 2 per cent while Grasim closed 0.25 per cent higher. There were no other gainers among Nifty stocks.

Global markets / crude oil
Asian markets tumbled for the fifth consecutive session as the yen carry trades continued to unwind. Malaysia was the biggest loser, ending 4.65 per cent lower, while Hong Kong gave up 4 per cent. Indonesia lost nearly 3.5 per cent and Japan gave up around 3.35 per cent. Singapore dropped 3 per cent and South Korea gave up 2.7 per cent. Shanghai index gave up another 1.6 per cent after last week's heavy losses.

European markets opened weak and slipped further as the session progressed. Major indices are trading with losses of between 1.65 per cent and 2 per cent each in early afternoon trades.

Crude oil prices have turned weak on forecasts that energy demand may decline if global economic growth slows down further. Near month NYMEX futures are trading with losses of nearly 2 per cent at around $60.5 per barrel in European trades today.

Large-cap news flow

  • would set up a wholly owned subsidiary under the name ICICI Holdings. The stakes held by ICICI Bank in various insurance and financial services ventures like ICICI Prudential Life Insurance, ICICI Lombard General Insurance, Prudential ICICI Asset Management etc to the new subsidiary. ICICI Holdings may consider a public listing to finance the future capital needs of these businesses.
  • to enter the life insurance business. The JV would have an initial capital of $73 million. Canara Bank would hold a 51- per cent stake while OBC would have 23 per cent. The remaining 26 per cent would be held by HSBC
  • The board of M&M has approved a bid to acquire a 43 per cent stake in Punjab Tractors
  • Cement manufactures, in a meeting with government officials, have reportedly refused to roll back the price hikes announced last week
  • Steel manufacturers like Tata Steel, SAIL and JSW Steel have agreed toannounced last week. Prices of HR coils would be brought down by Rs500 per tonne.
  • NTPC has decided to amend its memorandum to enable entry into nuclear power generation
  • BPCL is planning to start oil trading from Singapore to market refined products in the global markets
  • JSW Steel is planning to set up a $2 billion aluminium project in Andhra Pradesh with a capacity of 250,000 tonnes per annum, according to media reports

Mid-Cap Action
Mid-caps and small caps also came under heavy pressure and lost substantially today. Losses for the mid and small caps were much higher than large caps. The CNX Mid-Cap index ended with losses of 246 points, or 5.08 per cent, at 4877. BSE mid-cap index lost 4.97 per cent and the BSE small cap index ended with losses of 5.64 per cent.

Some of the recent listings continued to face heavy pressure. Transwarranty Finance lost 16.03 per cent while Cambridge Technologies gave up 12.52 per cent. Technocraft ended 12.23 per cent lower.

Among prominent mid-caps, Voltas shed 12.26 per cent and Bombay Dyeing lost 11.84 per cent. Polaris declined 8.98 per cent while Apollo Tyres shed 8.12 per cent. Tata Tele Maharashtra closed 7.57 per cent lower.

IFCI tumbled 10.05 per cent after Friday's 7 per cent fall.

R Systems, Jayant Agro, Arihant and Adhunik Metallics were the other major losers among mid-caps.

Precision Wire, Wartsila, Blue Dart, GMDC, Shi-Vani Oil, BSL and TV Today were among the few mid-cap gainers.

Mid-cap news flow

  • would set up the world's largest thin film solar panel fabricating unit at an estimated cost of $250 million.
  • Orchid Chemicals has forfeited Rs8.06 crore collected at the time of issue of warrants to promoters who have failed to convert them within the stipulated time
  • Arrow Coated has clarified that the company has not finalised any overseas deals
  • Sucrose India has received government approval for a clean development mechanism (CDM) project which is eligible for carbon credits
  • The board of Dagger Forst would meet next week to approve the revised prospectus for the rights cum public issue
  • Network 18 would make a rights issue of partly convertible preference shares in the ratio of 1 preference share for every 5 equity shares held. Pricing of the issue would be decided later
  • The board of Som Distilleries would meet later this week to consider a preferential issue to Kotak Mahindra Bank
  • Kilburn Engineering has received new orders worth Rs54.06 crore
  • Granules India has signed an agreement to provide contract manufacturing services to an Australian pharma company
  • Strides Arcolab has received tentative approval for an anti-HIV drug from the US FDA
  • Provogue India has allotted 29 lakh equity shares to foreign investors at a price of Rs440 per share and 18 lakh convertible warrants to promoters
  • Sumeet Industries would issue bonus shares in the ratio of one share for every share held
  • Encore Software is planning to issue 50.5 lakh warrants to promoters and other investors
  • Kesoram Industries has started production at its new cement unit
  • The board of Geodesic Information has approved the acquisition of Chandamama India in a cash and stock deal
  • Ginni Filaments would merge 4 associate companies with itself. The company would also spend Rs31 crore on expansion
  • Ind-Swift Laboratories is planning a preferential issue of warrants to promoters

*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.

Market Counters
Figures in Rupees

BSE 30
Scrip Name Open High Low Last Price
ACC
840.00
845.10
803.00
812.10
Bajaj Auto
2,517.00
2,530.00
2,421.00
2,460.00
Bharti Tele
695.00
704.00
671.00
681.00
BHEL
2,075.00
2,078.80
1,980.00
2,015.00
Cipla
221.25
224.00
215.00
217.40
Dr Reddys Lab
657.95
657.95
608.00
618.00
Grasim Indus
2,080.00  
 2,159.00
 2,020.00
2,102.10
Guj Ambuja
111.00  
 113.30
 105.00
111.85
HDFC Bank Ltd
 
 
 
929.85
HDFC Ltd
 
 
 
1,495.15
Hero Honda
 
 
 
684.45
Hindalco
 
 
 
134.15
HLL
178.00
179.00
171.50
172.50
ICICI Bank
 
 
 
820.70
Infosys
2,074.70
2,074.70
2,000.25
2,001.10
ITC
 
 
 
162.50
L&T
1,450.00
1,450.00
1,374.90
1,376.00
Maruti
820.00
822.00
770.00
770.00
NTPC
137.55
140.00
129.00
135.90
ONGC
 
 
 
773.35
Ranbaxy
343.00
343.80
319.00
319.00
Rel Energy
 
 
 
470.05
Reliance
1,300.00
1,300.00
1,250.00
1,250.00
Satyam
429.30
429.30
409.30
411.20
SBI
991.00
999.00
955.25
963.00
Tata Motors
764.85
774.80
728.10
735.00
Reliance Comm Ventures Ltd
419.30
419.30
385.90
393.50
Tata Steel
440.00
440.00
415.50
416.10
TCS
1,190.00
1,190.00
1,151.50
1,161.00
Wipro
570.00
571.00
531.00
532.00
     Last Update : 5 March, 2007 16:00 PM

S&P CNX Nifty
Scrip Name Open High Low Last Price

RELIANCE

1300

1301

1248.2

1251.15

RCOM

402

411

385.3

394

INFOSYSTCH

2077.9

2077.9

2000

2008.9

ICICIBANK

855.5

855.5

793.25

819.7

SAIL

101.2

103.9

94.4

98.1

TATASTEEL

441.3

441.3

415.25

416.5

BHARTIARTL

697.8

701.95

672.15

675.05

LT

1462.35

1462.35

1375

1379

BHEL

2065

2075.5

1970

2002.95

SBIN

999

1003

955

965.1

TATAMOTORS

774.1

779

728

737

TCS

1190

1199

1150

1157

ITC

166

166.5

157.25

160

GUJAMBCEM

107.1

113.25

103

110

SUZLON

1042.7

1042.7

962.5

976.1

SATYAMCOMP

419

423.8

410

416

ONGC

785

789.45

758.5

776.1

M&M

744.8

764.7

700

700.9

ACC

859

859

801

809.6

WIPRO

570

570

527.15

533.45

MARUTI

825

825

762

780

HDFC

1500

1514.7

1470

1487.8

GRASIM

2051

2158

2038.1

2099.05

BAJAJAUTO

2503

2503

2416.85

2450.2

SIEMENS

1077.55

1077.55

1000

1003.6

ABB

3519.7

3519.7

3308

3345

HINDALC0

138

138.5

131.75

133.15

HCLTECH

529.8

625.7

529.8

612

MTNL

132.5

138

131

133

HINDLEVER

176

178.4

171.65

172.75

HDFCBANK

921.65

939

883.55

931

ZEEL

220

229

208

220.55

HEROHONDA

681.1

703.5

611

686.5

REL

467.55

479.95

448.2

470

RANBAXY

345.5

345.5

317.6

318.95

DRREDDY

601

662.5

601

619.5

VSNL

336.6

358.05

336.6

358.05

PNB

380.35

420

380.35

413.85

HINDPETRO

261

262.95

242.1

247

CIPLA

222.9

223.95

215

217.95

BPCL

293

299.8

285

291

TATAPOWER

510

515

492

510

JETAIRWAYS

599

599

538.05

540.05

SUNPHARMA

949

953.9

914

950.95

DABUR

95.05

95.05

90.45

93.45

IPCL

258.9

258.9

235.1

235.3

ORIENTBANK

170

171.7

159.05

159.05

GAIL

278

278

251.05

253.8

NATIONALUM

214

221.9

210.5

219.05

GLAXO

1130

1178

1120

1129.55

Last Update : 5 March, 2007 16:00 PM


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Sensex crashes 471 points as global sell-off continues