Wednesday, April 8, 2009

Market Reversing Early Losses But Trading In Red - April 08, 2009

The key benchmark indices plunged on account of profit booking in Index pivotals led by Bankex, Oil&Gas and Metal as these indices had galloped in last trading sessions the most. Further, weak global markets and bleak data for exports for the sixth month in a row in March 31, 2009 triggered profit sharing on the domestic market.

Meanwhile, with the outlook on economic growth and corporate earnings already bleak, the volatility in the rupee against the dollar is discouraging foreign institutional investor from investing even though stock prices have fallen to absurd levels.

On the sectoral front, traders off-loaded positions in majority of the sectors. Banking stocks plunged on fears of rising defaults in a weakening economy and on decline in American Depository Receipts (ADRs).

FMCG stocks gained on the expectations of better 4QFY09 results following reports of higher advance tax payment by these firms. Realty stocks advanced on hopes lower rates will spur housing demand.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of 2,361 stocks traded so far, 1,705 shares advanced while 595 shares declined. Nearly 61 shares are unchanged.

At 1.30PM, the BSE Sensex is trading lower by 103.11 points at 10,431.75 and NSE Nifty is down by 19.24 points at 3,237.35.

The BSE Mid Cap is trading higher by 71.61 points at 3,274.69 and Small cap is trading up by 118.20 points at 3,665.44.

Major gainers from the BSE Sensex pack are Tata Motors soared 5.52% to Rs. 220.70 along with Sun Pharma advanced 2.16% to Rs. 1,092.00, NTPC Ltd 1.79% to Rs. 187.70, Hindustan Uniliver by 1.74% to Rs. 231.00, Ranbaxy Labs by 1.21% to Rs. 184.50, ITC Ltd by 0.69% to Rs. 181.75, Maruti Suzuki 0.09% to Rs. 800.05.

Losers from the BSE Sensex Pack are Mahindra & Mahindra slipped 3.61% to Rs. 449.00 along with, Hindalco Industries plunged 3.59% to Rs. 57.80, Sterlite Industries by 3.51% to Rs. 372.20, ONGC Ltd by 3.45% to Rs. 855.15, Reliance communication by 3.28% to Rs. 210.95, DLF Ltd by 3.20% to Rs. 202.90, Bharti Airtel by 3.16% to Rs. 639.00, Infosys Technologies plunged 3.11% to Rs. 1,370.50, ICICI Bank by 2.79% to Rs. 364.20 and HDFC Bank by 2.74% to Rs. 1,033.80 among others.

The BSE Bankex is lower by 114.54 points or 2.33% at 4,926.27. Stocks trading in red are Kotak Bank plunged 4.40% to Rs. 355.00, Canara Bank 2.92% to Rs. 162.90, State Bank of India by 2.92% to Rs. 1,096.00, ICICI Bank by 2.79% to Rs. 364.20 and HDFC Bank by 2.74% to Rs. 1,033.80 among others.

Aurobindo Pharma advanced 1.58% to Rs. 193.00 on receiving approval from Swissmedic, Government of Switzerland, for launch of a new drug in Switzerland.

Infosys Technologies plunged 3.11% to Rs. 1,370.50 after its ADR on Nasdaq fell nearly 3% over the last two days.

Gammon India rose 10.33% to Rs. 78.00 on bagging an order worth Rs. 400 crore.

Tata Motors soared 5.52% to Rs. 220.70 on reports the company is in talks to repay the remaining portion of the $3-billion bridge loan it had taken to fund acqusition of British brands Jaguar and Land Rover.

Valecha Engineering soared 19.97% to Rs. 37.85 on bagging two orders totaling Rs. 136 crore.

NIIT gained 7.35% to Rs. 24.10 on signing a pact with New Delhi Municipal Council for providing information and communications training.

Hindalco Industries plunged 3.59% to Rs. 57.80 on profit booking.

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