Friday, May 8, 2009

Market Dips In Southward - May 08, 2009

The key benchmark indices dip in deep red after an extended range bound trade. The mixed cues from other Asian markets and also the weekend closing is pulling down the sentiments of domestic traders. After an early volatility the markets is sinking in the southward direction.

Further, Inflation rises to 0.70% for the week ended April 25 from 0.57% in the previous week. Meanwhile, the Federal Reserve stress result announced overnight triggered that out of 19 US banks 10 need to raise a total of USD 74.6 billion in capital.

Bank of America Corp. requires USD 33.9 billion in additional capital under regulators criteria, the largest gap. Wells Fargo & Co. requires USD 13.7 billion, while Citigroup Inc at USD 5.5 billion.

On the sectoral front, traders on-loaded positions across the sectors except IT. Metal stocks plunged on profit taking after a recent surge. IT stocks plunged on the US government plans to scrap tax incentives that encourage American firms to ship jobs overseas.

Banking stocks dipped on retreated on profit taking after a recent surge. Realty stocks rose on reports commercial banks have stepped up lending to the real estate sector.

The Market breadth, indicating the overall strength of the market, was weak. On BSE, out of 2,445 stocks traded so far, 1,122 shares advanced while 1225 shares declined. Nearly 98 shares are unchanged.

The BSE Sensex is trading lower by 283.21 points at 11,833.72 and NSE Nifty is down by 79.34 points at 3,604.55.

The BSE Mid Cap is trading lower by 54.42 points at 3,722.51 and Small cap is trading down by 31.81 points at 4,231.79.

Major gainers from the BSE Sensex pack are Hindustan Uniliver Ltd spurted 0.91% to Rs. 232.75 along with ONGC by 0.60% to Rs. 895.20 and Sun Pharmaceuticals Industries advanced 0.11% to Rs. 1,290.00.

Losers from the BSE Sensex Pack are Sterlite Industries by 7.04% to Rs. 481.00 along with, Hindalco Industries plunged 6.34% to Rs. 65.75, Wipro Ltd by 4.30% to Rs. 363.70, ICICI Bank by 2.93% to Rs. 533.00, HDFC Bank by 2.86% to Rs. 1,143.05, Reliance Infra by 2.74% to Rs. 788.05, Housing Development Finance Co by 2.56% to Rs. 1,769.60, Tata Motors by 2.43% to Rs. 265.50 and State Bank of India by 2.41% to Rs. 1,334.00 among others.

The BSE Metals is lower by 258.49 points or 3.17% at 7,896.59. Stocks trading in red are Sterlite Industries by 7.04% to Rs. 481.00, Hindalco Industries by 6.34% to Rs. 65.75, JSW Steel by 5.68% to Rs. 404.95, Hindustan Zinc by 4.43% to Rs. 580.05, Jindal Steel by 4.07% to Rs. 1,607.00, Tata Steel by 3.31% to Rs. 284.60 and Steel Authority of India by 1.59% to Rs. 123.45 among others.

United Spirits retrieved 6.49% to Rs. 668.05 after reports Diageo’s talks to buy a stake in the alcohol maker have hit a roadblock.

Consolidated Construction Consortium advanced 0.18% to Rs. 137.60 on bagging an order worth Rs. 70 crore.

Bharati Shipyard increased fabulously by 13.17% to Rs. 107.85 after the company acquired the 14.9% stake of Great Offshore which the promoters of Great Offshore had pledged with Bharati.

Deep Industries surged 4.94% to Rs. 60.50 on bagging an order worth Rs 22.99 crore.

Tata Steel fell 3.31% to Rs. 284.60 despite the company said its sales volume surged by 31% to 4.52 lakh tons in April 2009 over April 2008 led by robust demand from auto and construction sectors.

Birla Corporation fell 4.87% to Rs. 196.35 after net profit declined 17.80% to Rs 323.51 crore in the year ended March 2009 over the year ended March 2008

DLF Ltd fell 3.55% to Rs. 236.20 on reports promoters may sell 6-7% in to foreign institutional investors for raising Rs 2,000 crore to Rs 2,500 crore.

Sun Pharmaceuticals Industries advanced 0.11% to Rs. 1,290.00 on receiving US nod for a new generic drug.

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