Weakness persists

The key benchmark indices were weak in mid-morning trade on sustained selling pressure. Negative cues from global markets dampened sentiment in opening trade. Asian markets which opened before Indian market, were in red. US stocks dropped on Friday, 28 March 2008, as a profit warning from US department store chain J.C. Penney raised concerns about slowing consumer spending while persistent worries about credit-related problems throttled financial stocks. A prominent analyst warned that earnings will not support current dividend payouts in 2008 at Citigroup, Wachovia Corp and other US banks.

The BSE Sensex dipped below 16,000 mark in early trade in choppy trade. 27 stocks from the 30-member Sensex pack declined. IT pivotals extended early fall on fresh selling pressure. The market breadth was positive on BSE.

At 11:27 IST, the 30-share BSE Sensex was down 388.90 points or 2.38% at 15,982.39. It opened with a downward gap of 144.63 points at 16,226.66 and slipped further to touch low of 15,877.57 in mid-morning trade. At the day’s low, the Sensex lost 493.72 points.

The broader based S&P CNX Nifty was down 105.75 points or 2.25% at 4,846.25.

The Cabinet Committee on prices will hold a meeting today, 31 March 2008, to take stock of high inflation that surged to over 13-month high of 6.68% in mid-March 2008. Inflation started its upward climb some weeks back, particularly because prices had risen the most in the case of cereals, vegetables, milk and edible oils. Fiscal measures such as reduction in import duties on edible oils have not yet yielded results in taming the inflationary pressures.

The market breadth was positive: On BSE 1,355 shares advanced as compared to 937 that declined. 51 shares remained unchanged.

The BSE Mid-Cap index was down 0.62% to 6,482.03 while the BSE Small-Cap index gained 0.18% to 7,915.92 The total turnover amounted to Rs 1689 crore on BSE by 11:30 IST as compared to Rs 659 crore by 10:30 IST.

IT pivotals extended early fall on fresh selling pressure. India’s second largest software services exporter Infosys Technologies slumped 6.32% to Rs 1429.85 on 1.16 lakh shares. It was the top loser from Sensex pack.

Other IT pivotals, Satyam Computers (down 4.10% to Rs 391.75), Wipro (down 2.30% to Rs 443.60), and TCS (down 3.47% to Rs 839.95), also declined

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries lost 1.43% to Rs 2314 on 2.95 lakh shares. The stock moved in a range of Rs 2278 and Rs 2340 so far during the day.

ICICI Bank (down 4.38% to Rs 798.60), HDFC Bank (down 4.73% to Rs 1334), and Grasim (down 4.82% to Rs 3574.85), were the other losers from Sensex pack.

Cipla, the country’s third largest pharma company in terms of sales, gained 1.77% to Rs 221.40 on 1.78 lakh shares. It was the top gainer from Sensex pack.

ITC (up 0.87% to Rs 208.10), and Hindalco Industries (up 0.11% to Rs 175.65), were the other gainers from Sensex pack.

Reliance Industries was the top traded counter on BSE with turnover of Rs 70.20 crore followed by Mundra Port & Special Economic Zone (Rs 67.18 crore), Reliance Capital (Rs 62.06 crore), NTPC (Rs 58.90), and Orchid Chemicals & Pharmaceuticals (Rs 57.56 crore), in that order Among the side counters, Axon Infotech (up 17.96% to Rs 41.05), Indowind Energy (up 20% to Rs 68.20), and Sulzer India (up 20% to Rs 687), surged IOL Broadband (down 10% to Rs 92.60), Godrej Industries (down 9.45% to Rs 260), and Setco Automotive (down 9.42% to Rs 165), slipped.

Asian markets were trading lower today, 31 March 2008. Hang Seng (down 1.91% at 22,840.13), Japan’s Nikkei (down 2.50% at 12,500.37), Taiwan’s Taiwan Weighted (down 0.59% at 8,572.59), Singapore’s Straits Times (down 0.50% at 3,016.65), Shanghai Composite (down 2.93% to 3,475.50), and South Korea’s Seoul Composite (down 0.28% to 1,697.03) edged lower.

Stocks In News

New order does not benefit L&T

Larsen & Toubro declined 3.98% to Rs 3022 at 11:11 IST on BSE even as the company said on Monday, 31 March 2008 its engineering and construction division has received an order worth Rs 576 crore from Hindustan Petroleum Corporation.

Investors withdraw from City Union Bank

City Union Bank declined 1.03% to Rs 28.70 at 11:14 IST on BSE after bank said it would issue 80 million shares by way of qualified institutional placement

Spanco Telesystems rings on new orders

Spanco Telesystems & Solutions surged 5.07% to Rs 172.05 at 10:33 IST on BSE after the company said on Monday, 31 March 2008, it won orders worth Rs 166 crore from various parties

Amtek Auto skids on currency market losses

Amtek Auto declined 2.3% to Rs 254.40 at 10:53 IST on BSE after company said it may suffer losses up to $18 million in the next two years due to volatility in the global currency market.

Click here to read all the Corporate News.

Click Here to View all the Mutual Fund News.

Click Here to register for FREE KRC Market Updates.

Kisan Ratilal Choksey Shares and Securities Pvt. Ltd.
1102, Stock Exchange Tower, Dalal Street, Mumbai 400 001
Phone: 91-22-56338050 / 66965555. Fax: 5633 8060
Members: BSE & NSE
www.krchoksey.com
Email: customercare@krchoksey.com / eservices@krchoksey.com