Thursday, April 16, 2009

Market Extends Its Downturn As Investors Turned Cautious - April 16, 2009

The key benchmark index plunged as huge amount of profit booking was seen after the market rallied strongly for past couple of days. Signs of strengthening Indian economy, easing of credit crisis and sign of recovery in major indices round the world triggered a strong rally on domestic bourses in past. Now, investors turned cautious on political uncertainty as the month-long election began today. Moreover, this election may result in fuss as no single political party is able to form a government, as per the sources.

Meanwhile, India''s wholesale price index rose 0.18 per cent in the 12 months to April 4, below the previous week''s annual rise of 0.26 per cent, government data showed on Thursday.

On the sectoral front, traders off-loaded positions across the sectors except in Consumer Durables, Realty and FMCG. Realty stocks advanced on hopes lower rates will spur housing demand as most of the deals are driven by finance. Telecom socks spurted on strong monthly subscriber addition figures. Further, IT stocks decline on stronger rupee and a weak guidance by Infosys Technologies for FY10.

The Market breadth, indicating the overall strength of the market, was weak. On BSE, out of 2,539 stocks traded so far, 883 shares advanced while 1,585 shares declined. Nearly 71 shares are unchanged.

At 1.30PM, the BSE Sensex is trading lower by 175.24 points at 11,109.49 and NSE Nifty is down by 64.45 points at 3,419.7.

The BSE Mid Cap is trading lower by 89.57 points at 3,512.31 and Small cap is trading down by 108.39 points at 4,015.05.

Major gainers from the BSE Sensex pack are Wipro Ltd surged 2.45% to Rs. 275.60 along with Sun Pharma advanced 1.97% to Rs. 1,190.00, Hinduatan Uniliver Ltd 1.44% to Rs. 239.00, ITC Ltd by 1.00% to Rs. 187.45, Maruti Suzuki by 0.39% to Rs. 851.00 and TCS Ltd by 0.08% to Rs. 578.00.

Losers from the BSE Sensex Pack are Tata Motors declined 8.52% to Rs. 257.25 along with, Tata Steel plunged 6.12% to Rs. 275.40, DLF Ltd by Larsen & Toubro 5.67% to Rs. 829.00, Ranbaxy Laboratories plunged 5.18% to Rs. 189.50, Reliance Infra by 4.87% to Rs. 675.70, Sterlite Industries gained 4.18% to Rs. 404.25, and Mahindra & Mahindra by 4.17% to Rs. 454.40 among others.

The BSE Metals is lower by 359.96 points or 4.85% at 7,422.51. Stocks trading in red are Jindal Saw deteriorated 11.16% to Rs. 212.05, NMDC Ltd 9.21% to Rs. 206.00, JSW Steel Ltd by 7.60% to Rs. 339.85, Sesa Goa Ltd by 7.29% to Rs. 110.60 and Jindal Steel by 7.04% to Rs. 1,371.00 among others.

Ranbaxy Laboratories plunged 5.18% to Rs. 189.50 on reports the company may post losses of more than Rs. 2,500 related to hedging against currency moves.

Sterlite Industries gained 4.18% to Rs. 404.25 as copper climbed on the London Metal Exchange.

Unitech Ltd advanced 4.89% to Rs. 50.40 as the Company plans to raise as much as Rs 1,250 crore through private placement of shares to qualified institutions to repay part of its debt.

Blue Dart Express shed 2.38% to Rs. 436.00 after weak financial performance for quarter ended March 2009.

Rallis India advanced 5.62% to Rs. 519.00 on posting strong financial results for Q4 FY09.

Reliance Communications jumped 1.46% to Rs. 226.70 after it added a record 11.3 million new subscribers in Q4 March 2009.

Natco Pharma slipped 0.54% to Rs. 73.00 on signing a pact with Dr Reddy''s Laboratories for the development, manufacture and supply of a generic oncology drugs, used for cancer treatment

Gitanjali Gems galloped 25.24% to Rs. 91.30 ahead of the commencement of buyback program at a maximum price of Rs. 120 a share, a premium of 22.5% over the ruling price.

Max India gained 1.70% to Rs. 122.50 after the company said its promoters revoked a part of the pledged shares.

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