Thursday, November 19, 2009

Indian Share / Stock Markets BSE NSE Report 10 July 2009

Domestic markets yet again failed to get the equations right with investors, sending the Nifty below the psychological 5,000 mark. The spark set off by gloomy world markets caught flame as the day progressed and investors indulged in profit booking on worries over the pace of economic recovery and ambiguity in markets’ direction.

Pessimism dominated the session such that benchmarks did not make the grade to even have a sight of the green lane. Second-line shares that managed to dodge sellers at a point in morning trades, finally found it difficult to carry on the feat due to intensive selling activity taken up by all sections of investors.

Realty, banking, metal and technology stocks were worst hit in the day’s trade; in fact, none of the sectoral counters showed nerve to fight the brutal force of sellers. Finally, the 30-share BSE Sensex dropped 213.13 points or 1.25% to end at 16,785.65, while the S&P CNX Nifty plunged 65.70 points or 1.3% to settle at 4989.

The market breadth on the BSE was weak. 1052 shares ended in the green, 1682 shares ended in the green and 87 shares remained unchanged.

The Sensex touched a high and a low of 17,004.98 and 16,712.33, respectively. HDFC up 0.44%, ACC up 0.41% and Wipro up 0.08% were the only gainers on the benchmark.

Major losers on the Sensex were Jaiprakash Associates down 4.53%, Reliance Infra down 3.9%, DLF down 3.68%, Hindalco Inds down 3.46% and RCom down 2.41%.

The BSE Mid-cap and Small-cap indices dropped 1.67% and 1.08%, respectively.

The government released the Wholesale Price Index (WPI) for the week ending November 7 in respect of ‘Primary Articles’ and commodities in the broad group ‘Fuel, Power, Light & Lubricants'. The Primary Articles Index which has a weight of 22.02% in the overall WPI rose by 0.8% to 276.4 from 274.2 in the previous week.

According to the release, the annual rate of inflation, calculated on point to point basis, stood at 9.94% as compared to 9.16% for the previous week and 12.28% during the corresponding week of the previous year.

Among sectoral indices on the BSE, Realty down 4.36%, Bankex down 1.95%, Metal down 1.77%, TECk down 1.35% and Auto down 1.35% were the main losers.

Indiabulls Real Estate (down 5.48%) from Realty, IOB (down 4.23%) from Bankex, Hindalco Inds (down 3.46%) from Metal, Aptech (down 6.11%) from TECk and Exide Inds (down 5.5%) from Auto were the main losers on the respective indices.

There were no gainers in the sectoral space.

Government is set to give a big boost to the roads and highways infrastructure in the country with the National Highways Authority of India (NHAI) identifying 10 lucrative mega highway projects to be awarded to private developers. The projects, which will bring an estimated investment of Rs 45,000 crore, will be awarded in the next couple of years.

The government will auction the projects on a revenue-share basis. In such an arrangement the developers share a pre-defined percentage of the toll earnings with the government. Since these are lucrative projects expected to generate a lot of toll money, the government will also earn revenue through these. Total length of the identified projects would be 5,000 km.

The S&P CNX Nifty plunged 65.70 points or 1.3% to settle at 4989. The index touched a high and a low of 5053.45 and 4963.70, respectively.

Suzlon up 2.11%, ACC up 0.64%, PowerGrid up 0.38%, HDFC up 0.27% and Hindustan Unilever up 0.09% were the main gainers on the Nifty.

Unitech down 5.22%, JP Associates down 4.57%, Rel Infra down 3.7%, Siemens down 3.64% and DLF down 3.54% were the main losers on the Nifty.

Despite the Indian government reiterating its commitment once again to carry forward the reform agenda to its logical conclusions, the development in this regard seems to be rather slow in New Delhi. Major reform bills such as the Insurance Law Amendment Bill which aims at allowing the foreigners to own a greater stake in Indian insurance companies are unlikely in the forthcoming winter session of the Parliament.

Similar is the fate of the Banking Regulation Amendment Bill which also aims at raising the cap on FDI in banking industry and providing voting rights to foreign entities in private sector banks. The main reason being projected is shortage of time and host of other issues being on the agenda. Most of the government’s reform oriented energy is presently focused on the coveted Goods and Services Tax (GST) which aims at literally rewriting the indirect taxation regime in the country and promises to go far in improving efficiency and raising government’s revenue. There is also the Direct Taxes Code Bill which government may table in the winter session that ends on December 21.

Meanwhile, the winter session of Lok Sabha made a stormy start on Thursday as the members of Samajwadi Party (SP) and RLD created chaos over the demand for hike in sugarcane prices leading to adjournment of the House. Soon after the beginning of the session SP Chief Mulayam Singh Yadav and RLD President Ajit Singh led their party members into the well of the House demanding hike in sugarcane prices.

BJP leaders who have already announced plans to move an Adjournment Motion in the House over the sugarcane issue were raising the same issue from their seats.

European markets were trading lower. Britain’s FTSE 100 declined 0.2%, France’s CAC 40 slipped 0.48% and Germany’s DAX plunged 0.34%.

Asian markets ended mixed on Thursday as investor sentiment remained cautious following a weak close on the Wall Street overnight. Investors locked in profits on concerns over pricey valuations and pace of economic recovery. This apart, share-sale plans of Japanese companies gave rise to concerns that the value of existing holdings will be reduced.

Hang Seng declined 0.86% to 22,643.16, Nikkei 225 slipped 1.32% to 9,549.47 and Taiwan Weighted plunged 0.09% to 7,759.98.

On the other hand, Shanghai Composite gained 0.53% to 3,320.612, Straits Times rose 0.50% to 2,758.79 and Seoul Composite added 1.03% to 1,620.54.

Source : Livemint.com

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