Wednesday, February 11, 2009

Market Skeptical On US Plan To Heal Banking Industry: Sensex Below 9,600 Mark - Feb 11, 2009

The key benchmark indices extended loss after consecutive gains on the back of profit booking in some sectors and US government move to heal banking industry. The sentiment in the market is weak and investors are playing cautious on every move of news. However, the government will unveil an interim railway budget on February 13, 2009 followed by a mini general budget on February 16, 2009. It is also expected that the government will take measures to boost growth, especially in sectors where jobs are at stake.

Further, Infrastructure Leasing and Finance Company (IL&FS) is expected to acquire management control of the Maytas Infrastructure. This Non-banking Finance Company (NBFC) is erupting as one of government preference given its prominent role in infrastructure finance.

On the sectoral front, traders off-loaded position across sectors. Metal stocks plunged due to fluctuation in commodity prices at international levels and some amount of profit booking. Realty stocks fell due to liquidity crisis faced by corporate which may last much longer than expected. IT pivotal fell on weak sentiments of recovery.

The Market breadth, indicating the overall strength of the market, was weak. On BSE, out of 2,259 stocks traded so far, 990 shares advanced while 1,170 shares declined. Nearly 99 shares are unchanged.

At 1.30PM, the BSE Sensex is trading lower by 85.02 points at 9,562.45 and NSE Nifty is down by 21.34 points at 2,913.15.

The BSE Mid Cap is trading lower by 7.09 points at 2,947.16 and Small cap is trading down by 3.38 points at 3,339.14.

Gainers from the BSE Sensex pack are Maruti Suzuki by 2.43% to Rs. 623.00 along with Jaiprakash Associates advanced by 1.54% to Rs. 76.00, NTPC by 1.00% to Rs. 182.00 and ACC Ltd by 0.14% to Rs. 544.55.

Losers from the BSE Sensex Pack are Reliance Infra by 4.92% to Rs. 534.85 along with Tata Steel by 4.14% to Rs. 188.80, Grasim Industries by 2.64% to Rs. 1,380.10, DLF Ltd by 2.43% to Rs. 148.80, Reliance Industries by 2.33% to Rs. 1368.80, TCS Ltd by 2.17% to Rs. 512.65, Mahindra & Mahindra by 2.15% to Rs. 277.40, Tata Motors by 2.12% Rs. 135.90 and ONGC by 2.11% to Rs. 702.05.

The BSE Metal index is lower by 85.05 points or 1.62% at 5,166.41. Stocks trading in red are Tata Steel down by 3.96% to Rs. 189.15, JSW Steel by 3.40% to Rs. 1,039.50, JSW SL by 3.10% to Rs. 217.00, Sesa Goa Ltd by 2.67% to Rs. 96.65 among others.

Power Grid Corporation of India Ltd fell by 0.17% to Rs. 86.05 despite its plans to set up an overseas subsidiary. It is looking at entering Africa, Central and West Asia as well as India''s neighboring countries.

DLF Ltd plunged by 2.43% to Rs. 148.80 as it is reportedly expected to secure Rs. 2,000 crore of long term debt in two weeks from public sector banks and other financial institutions. The company has already secured Rs. 1,000 crore of long-term debt over the last few months.

Wockhardt Ltd fell by 1.92% to Rs. 94.75 despite it launched a new insulin, Glaritus, in India for the treatment of diabetes. Meanwhile, the promoters of Wockhardt have pledged stake with financial institutions such as IL&FS to raise fund.


Cairn India Ltd declined 3.06% to Rs. 161.70, as crude oil prices tumbled 5% in New York on Tuesday, 10 February 2009.

Jaiprakash Associates gained 1.54% to Rs. 76.00 on profit booking after the stock rose over 9% in the past three trading sessions.

Ranbaxy Laboratories fell 2.43% to Rs. 227.20 on reports it has US drug regulator''s nod to sell acute migraine drug sumatriptan in the US.

House of Pearl Fashions gained 3.63% to Rs. 47.15, after the company said its overseas unit is in the process of restructuring its business.

Reliance Power slipped by 0.97% to Rs. 102.20 after reports stated that the company may face delays in building its largest coal-fired plants as the credit crunch has seen its loan approvals held up.

Maytas Infra hit the upper circuit of 5% at Rs. 54.35, on reports IL&FS may acquire management control of the company.

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