Market opens on a weak note

Local market opened lower mirroring negative global cues. Asian markets were trading lower today, 31 March 2008 while US markets closed lower on Friday, 28 March 2008. The BSE Sensex dipped below 16,000 mark only to regain it in choppy trade. Market breadth was positive on BSE. 27 stocks from the 30-member Sensex pack declined. IT pivotals declined on selling pressure.

At 10:26 IST, the 30-share BSE Sensex was down 365.15 points or 2.20% at 16,011.38. It opened with a downward gap of 144.63 points at 16,226.66 and slipped further to touch low of 15,987.69 in early trade. At the day’s low, the Sensex lost 383.60 points.

The broader based S&P CNX Nifty was down 100.05 points or 2.02% at 4,841.95.

The market breadth was positive: On BSE 1,066 shares advanced as compared to 727 that declined. 30 shares remained unchanged.

The total turnover amounted to Rs 659 crore on BSE by 10:30 IST.

IT pivotals declined on selling pressure. India’s second largest software services exporter Infosys Technologies slumped 5.10% to Rs 1449 on 32147 shares. It was the top loser from Sensex pack.

Other IT pivotals, Satyam Computers (down 2.56% to Rs 398), Wipro (down 4.30% to Rs 434.50), and TCS (down 1.20% to Rs 857), also declined

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries lost 2.66% to Rs 2288.70 on 1.23 lakh shares. The stock moved in a range of Rs 2278 and Rs 2340 so far during the day.

ICICI Bank (down 3.86% to Rs 803), HDFC Bank (down 3.14% to Rs 1357.10), and DLF (down 2.40% to Rs 679), were the other losers from Sensex pack.

Cipla, the country’s third largest pharma company in terms of sales, gained 1.88% to Rs 221.65 on 1.05 lakh shares. It was the top gainer from Sensex pack.

ITC (up 1.43% to Rs 209.25), and Hindalco Industries (up 0.03% to Rs 175.50), were the other gainers from Sensex pack.

Ranbaxy Laboratories (up 0.46% to Rs 466.50), and Cipla (up 0.42% to Rs 205), were the other gainers from Sensex pack.

Among the side counters, Axon Infotech (up 18.39% to Rs 41.20), Indowind Energy (up 17.68% to Rs 66.90), and Sulzer India (up 17.72% to Rs 674), surged

Marketmen are keenly awaiting Q4 and full year March 2008 results from Indian corporates. Robust corporate advance tax payments in Q4 March 2008 indicate that corporate profit growth will be strong in the quarter. Advance tax figures showed banks, hospitality and software firms are doing better than sectors like automobiles and cement.

The sharp rise in inflation has been a cause of concern, which has now risen above the Reserve Bank of India’s caution limit of 5%. India’s wholesale price index surged to 13-month to 6.68% in the 12 months to 15 March 2008, surging from the previous week’s rise of 5.92%, government data showed on Friday, 28 March 2008.

Asian markets were trading lower today, 31 March 2008. Hang Seng (down 1.73% at 22,882.77), Japan’s Nikkei (down 2.25% at 12,531.88), Taiwan’s Taiwan Weighted (down 0.86% at 8,549.02) Singapore’s Straits Times (down 0.50% at 3,016.65), Shanghai Composite (down 2.30% to 3,497.65), and South Korea’s Seoul Composite (down 0.79% to 1,688.37) edged lower.

US markets closed lower on Friday, 28 March 2008 after a profit warning from J.C. Penney renewed fears about slower consumer spending. The Dow Jones industrial average slipped 86.06 points, or 0.70%, to 12,216.40. The S&P 500 index was down 10.54 points, or 0.80%, to 1,315.22, and the Nasdaq Composite index declined 19.65 points, or 0.86%, to 2,261.18.

The Sensex surged 1,376.46 points or 9.18% to 16,371.29 in the week ended Friday, 28 March 2008 on buying by foreign institutional investors and local funds. The S&P CNX Nifty rose 368.05 points or 8.04% to 4,942 in the week.

As per provisional data, foreign institutional investors (FIIs) purchased sold worth Rs 401.95 crore on Friday, 28 March 2008. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 729.50 crore on that day.

FIIs were net sellers of Rs 132.21 crore in the futures & options segment on Friday, 28 March 2008. They were net sellers of index futures to the tune of Rs 366.53 crore and bought index options worth Rs 406.38 crore. They were net sellers of stock futures to the tune of Rs 184.53 crore and bought stock options worth Rs 12.47 crore.

Stocks In News

IRB Infrastructure speeds up on new order win

IRB Infrastructure Developers gained 1.89% to Rs 180.80 at 10:14 IST on BSE after the company said it had won a bid from Maharashtra State Road Development Corporation for the integrated road development program in the city of Kolhapur, Maharashtra.

Amtek Auto may see action

Amtek Auto said on Friday, 28 March 2008, it expects a potential loss of up to $18 million over the next two years due to volatility in global currency prices. The company said the promoters have undertaken to bring the matching amount to meet the obligation through 10-year debentures or preference shares.

Tata Power may sell stakes in holding companies and assets to help fund its $6 billion capacity expansion plans, the company said in a presentation that was published on Friday. Tata Power plans to raise its power generation capacity by more than five times to nearly 13,000 megawatts by 2013, the company said in an analyst presentation sent to the stock exchange.

Binani Cement builds on overseas acquisition

Binani Cement rose 0.49% to Rs 60.95 at 9:56 IST on BSE after the company said on Friday, 28 March 2008, its wholly owned subsidiary Mukundan Holdings has acquired 49% stake in a company in Dubai and 30% stake in Krishna Holdings, Singapore.

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