Markets snap 6-day winning streak, Sensex down 86 pts

Market finished lower in volatile trade today snapping its six-day winning streak, dragged lower by banking, capital goods and select blue-chip stocks. However, real estate and IT stocks cushioned sharp fall. Most Asian and European markets were trading higher today. However, US markets settled lower yesterday, 22 April 2008.

After opening on a firm note the market slipped into the red in mid-morning trade. It staged a strong rebound from lower level in mid-afternoon trade, only to slide again later.

As per provisional data, foreign institutional investors today sold shares worth a net Rs 480.93 crore. Domestic funds bought shares worth a net Rs 70.04 crore.

The 30-share BSE Sensex lost 85.83 points or 0.51% at 16,698.04. It lost 194.42 points at day’s low of 16,589.45 hit in mid-morning trade. Sensex hit a high of 16,871.27 in early trade. At the day’s high, Sensex rose 87.40 points.

Prior to today’s fall, the Sensex posted gains for six straight sessions till Tuesday, 22 April 2008, primarily due to healthy earnings and firm global markets. The barometer index had gained 1088.77 points or 6.94% in six trading sessions from 15,695.10 on 10 March 2008 to 16,783.87 on 22 April 2008.

The total turnover on BSE amounted to Rs 6312 crore as compared to Rs 6,404.24 crore yesterday, 22 April 2008. Turnover in NSE’s futures & options segment amounted to Rs 52107.86 crore as compared to Rs 51643.74 crore yesterday, 22 April 2008.

The market breadth was positive. On BSE, 1420 shares advanced as compared to 1304 that declined. 59 remained unchanged. 17 shares from the 30-member Sensex pack declined.

Banking shares were weak throughout the day. HDFC Bank, the country’s second largest private sector bank in terms of net profit slipped 3.20% to Rs 1440 on 75,330 shares. It was the top loser from Sensex pack.

India’s largest private sector bank in terms of net profit ICICI Bank slipped 1.75% to Rs 867 on 9.25 lakh shares. It recovered from day’s low of Rs 845.35

State Bank of India, the country’s largest commetcial bank in terms of assets, slipped 2.14% to Rs 1,695.05 after its Chairman O.P. Bhatt today said the bank is making a provision of $10 million towards mark-to-market losses due to the subprime crisis overseas. Bhatt also said the bank’s customers’ exposure to foreign exchange derivative losses could be between Rs 600-700 crore ($150-175 million), which would be accounted for on customers’ books.

India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) fell 1.38% to Rs 2,571.35 on 8.24 lakh shares. The stock moved in a range of 2566.25 and Rs 2632.75 during the day. RIL said on Tuesday it had formed a joint venture with Office Depot to provide office products and services in India. The two firms have also acquired eOfficePlanet, an Indian office products and services dealer, to accelerate the rollout of the joint venture.

India’s biggest dam builder Jaiprakash Associates was down 1.24% to Rs 242.60 on volumes of 31.53 lakh shares. The stock moved in a range of Rs 238.50 and Rs

Bharat Heavy Electricals (down 2.71% to Rs 1821), Ranbaxy Laboratories (down 1.92% to Rs 477.80), and Bharti Airtel (down 1.43% to Rs 844.05), edged lower from Sensex pack

ACC, the country’s second largest cement manufacturer in terms of sales, surged 3.43% to Rs 847.50 on 1.28 lakh shares ahead of its March 2008 quarterly results on Thursday, 24 April 2008. It was the top gainer from Sensex pack

India’s top small car maker Maruti Suzuki India gained 1.39% to Rs 764.80 ahead of its March 2008 quarterly results on Thursday, 24 April 2008.

IT pivotals gained on fresh buying. Wipro (up 3.32% to Rs 445), TCS (up 0.45% to Rs 891) and Infosys (up 3.38% to Rs 1653) advanced. However, India’s fourth largest software services exporter Satyam Computer Services slipped 1.23% to Rs 430.50, off its day’s low of Rs 422.

Real estate shares advanced on fresh buying. DLF (up 1.59% to Rs 684.90), Unitech (up 2.05% to Rs 286.25), Akruti City (up 2.28% to Rs 1,115), Omaxe (up 4.15% to Rs 233.20), and Purvankara Projects (up 6.40% to Rs 295.20), advanced.

India’s largest private steel maker in terms of sales, Tata Steel staged a sharp recovery from day’s low of Rs 757 to settle 1.55% higher at Rs 793. The stock rose after Anglo-Dutch steelmaker Corus, owned by the company, announced price increases for reversing mill plate and structural sections. The announcement is a stark contrast to Tata Steel’s earlier announcement of holding the domestic steel prices

Reliance Petroleum was the top traded counter on BSE with turnover of Rs 277 crore followed by IFCI (Rs 259.70 crore), Reliance Industries (Rs 214.25 crore), Reliance Natural Resources (Rs 214 crore) and Reliance Capital (Rs 167.30 crore) in that order.

IFCI led the volumes charts clocking volumes of 4.20 crore shares followed by Ispat Industries (2.74 crore shares), Reliance Natural Resources (1.80 crore shares), Indiabulls Securities (1.50 crore shares) and Tata Teleservices (Maharashtra) (1.44 crore shares) in that order.

Among the side counters, Blue Dart Express (up 20% to Rs 661.90), Castrol India (up 18.19% to Rs 292), Indian Toners (up 19.95% to Rs 24.05), National Oxygen (up 19.93% to Rs 53.25) and Arvind Mills (up 15.22% to Rs 56.40), surged.

However Bihar Caustic (down 9.46% to Rs 82.30), Eastern Silk Mills (down 13.64% to Rs 180.50), and Usher Agro (down 8.44% to Rs 179.65), declined
Century Plyboards India gained 1.75% to Rs 725 on reports it has acquired Chennai based Sharon Plywoods and Karnal based Century Panels.

Indiabulls Real Estate rose 2.12% to Rs 511.80 on reports its subsidiary Citra Developers has acquired 134 acres of land at Kalyan near Mumbai for Rs 676 crore. Indiabulls plans to build an integrated on the land, reports added.

Educomp Solutions slipped 3.75% to Rs 3980 despite posting 65.45% surge in net profit to Rs 31.47 crore on 54.41% growth in total income to Rs 119.53 crore in Q4 March 2008 over Q3 December 2007. The company announced the results during trading hours today, 23 April 2008.

Deccan Aviation fell 3.37% to Rs 143.35 after posting net loss of Rs 199.65 crore in Q3 March 2008 as compared to net loss of Rs 213.17 crore in Q3 March 2007. Deccan Aviation’s net sales rose 27.4% to Rs 557.61 crore in Q3 March 2008 over Q3 March 2007. The company announced the results after trading hours on Tuesday, 22 April 2008.
Exide Industries lost 2.88% to Rs 74.20, off sharply from day’s high of Rs 82.95. The company posted 63.1% rise in net profit to Rs 62.82 crore on 49.4% growth in total income to Rs 796.36 crore in Q4 March 2008 over Q4 March 2007. The company announced the results after trading hours on Tuesday, 22 April 2008.

Kirloskar Brothers advanced 2.74% to Rs 285 after posting 43.4% rise in net profit to Rs 52.66 in on 26.90% rise in net sales to Rs 569.01 crore in Q4 March 2008 over Q4 March 2007.

SKF India shed 1.40% to Rs 305 on posting 3% rise in net profit to Rs 37.76 crore on 9.04% rise in total income to Rs 394.18 crore in Q1 March 2008 over Q1 March 2007. The company announced the results during the market hours today, 23 April 2008.

CRISIL spurted 8.59% to Rs 3532 after it posted 74% surge in consolidated net profit to Rs 31.48 crore on 30.68% rise in consolidated net sales rose 30.68% to Rs 116.74 in Q1 March 2008 over Q1 March 2007

The near-term market will be driven by the quality of earnings rolled out by corporates in the coming days. Aggregate results of 225 companies showed 18.90% rise in net profit on 32.30% rise in net sales in Q4 March 2008 over Q4 March 2007. There was 36.90% rise in net profit on 22.50% rise in net sales in FY March 2008 over FY March 2007.

European markets, which opened after Indian markets were trading mixed. Key benchmark indices in United Kingdom (down 0.16% to 6,024.40), and Germany (down 0.80% to 6,732.32), slipped. However France CAC 40 index rose 0.10% to 4,877.75

Meanwhile, rating agency CRISIL has revised its GDP growth forecast to 8.1% for 2008-09 from the earlier forecast of 8.5% in view of the worsening inflation, interest rate and global growth outlook. Despite some moderation, the overall growth scenario is expected to remain strong with investment as the main driver.