The market failed to sustain higher level despite firm start on sustained selling pressure. Volatility was high throughout the day. Rumours that the Reserve Bank of India may hike cash reserve ratio (CRR) or interest rate later in the day to tame inflation, spooked the market. The market breadth turned negative from positive.
Global cues were positive, with European and Asian markets trading in positive zone. US markets saw a sharp rally yesterday, 5 June 2008.
Inflation based on the wholesale price index (WPI) rose 8.24% in the year through 24 May 2008, compared to previous week's rise of 8.10%. The government also revised the annual inflation rate for the year through 29 March 2008 to 7.75% as compared to 7.41% reported earlier.
Crude oil climbed close to $6 on Thursday, 5 June 2008, to more than $127 per barrel as funds shifted back into oil when the dollar fell against the euro following a signal from the European Central Bank that it may raise interest rates. The crude contract climbed another 0.3% in Asian trading today.
The 30-share BSE Sensex was down 203.62 points or 1.29% at 15,566.10, as per provisional closing. The Sensex lost 243.22 points at day’s low of 15,526.50 touched in late trade. After opening 144.69 points higher at 15,914.41, the Sensex advanced further to strike an intra-day high of 15,970.70 in early trade. At the day’s high, Sensex gained 200.98 points.
The broader based S&P CNX Nifty was down 51.60 points or 1.10% at 4,625.35 as per provisional closing.
Reserve Bank of India governor YV Reddy yesterday, 5 June 2008 hinted at a possible increase in CRR in an attempt to curb inflationary expectations
The market breadth was negative on BSE with 1516 shares declining as compared to 1142 that advanced. 64 remained unchanged. On the contrary, the market breadth was strong in early trade.
The BSE Mid-cap index was down 0.95% to 6,339.21 and the BSE Small-Cap index slipped 0.60% to 7,689.53, as per provisional closing.
The total turnover on BSE amounted to Rs 5229 crore as compared to Rs 3973 crore by 14:30 IST.
Among the 30-member Sensex pack, 25 declined while the rest advanced.
Mahindra & Mahindra (M&M), the country’s largest tractor company in terms of sales, advanced 3.07% to Rs 580 on 60,044 shares. On 5 June 2008, the company agreed to buy Italian auto designer Engines Engineering for an undisclosed sum. The stock was the top gainer from Sensex pack.
Tata Motors (up 1.37% to Rs 539.90), Infosys Technologies (up 0.73% to Rs 1994.10), and Grasim (up 1.06% to Rs 2270) edged higher from the Sensex pack
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) was down 0.74% to Rs 2231.10 on high volumes of 17.10 lakh shares. The stock had surged to an intra-day high of Rs 2299 in opening trade. Reliance Industries today said only one unit at its Nagothane petrochemicals plant had been shut by a fire and others were running normally. The plant has an annual capacity of 4,00,000 tonnes of ethylene. The shut unit has annual capacity of 1,20,000 tonnes
India’s third largest software services exporter Wipro lost 4.05% to Rs 507 on 2.86 lakh shares. It was the top loser from Sensex pack.
Hindalco Industries (down 3.99% to Rs 174.65), ITC (down 3.98% to Rs 213.50) and DLF (down 3.98% to Rs 517.50), edged lower from the Sensex pack.
India’s largest state run engineering company in terms of outstanding order book Bharat Heavy Electricals declined 1.80% to Rs 1419, after striking an intra-day high of Rs 1499.95. On 26 May 2008, the company had bagged Rs 1,150-crore turnkey contract from a joint venture of HPCL and Mittal Energy for setting up an energy efficient 153 megawatt captive power plant at Bhatinda in Punjab.
India's second largest power generation company in terms of sales, Reliance Infrastructure (formerly Reliance Energy), slipped 2.29% to Rs 1105, after hitting day’s high of Rs 1163. The stock was boosted by reports that it has won regulatory approval to raise power tariff by as much as 10.22% for its 2.6 million users in Mumbai. Shares of rival power generation company Tata Power Company rose 1.86% to Rs 128.05 on reports it has also hiked tariff marginally. The new tariff will be applicable from 1 June 2008 31 March 2009.
Interest rate sensitive banking shares declined. ICICI Bank (down 1.66% to Rs 768.25) and HDFC Bank (down 1.05% to Rs 1230) declined.
India’s largest stare-run bank in terms of net profit State Bank of India fell 1.80% to Rs 1330. The bank signed an agreement with Societe Generale Securities Services, a division of Societe Generale Group, to form a joint venture company for providing custody services.
Reliance Industries was the top traded counter on BSE with turnover of Rs 386.07 crore followed by Reliance Capital (Rs 214.18 crore), Cairn India (Rs 208.51 crore), Gokul Refoils (Rs 196.95 crore), and Anu’s Labs (Rs 173.44 crore), in that order.
European markets, which opened after Indian markets pared early gains. Key benchmark indices in United Kingdom (up 0.47% to 6,023.40), France (up 0.01% to 4,907.23), and Germany (up 0.02% to 6,943.43), advanced.
Most Asian markets, which opened before Indian markets, were trading higher today, 6 June 2008. Japan's Nikkei (up 1.03% at 14,489.44), Hang Seng (up 0.61% at 24,402.18), Taiwan's Taiwan Weighted (up 0.08% at 8,745.35), Singapore's Straits Times (up 0.26% at 3,151.94), advanced. However, China's Shanghai Composite declined 0.56% at 3,332.77.
US markets rallied yesterday, 5 June 2008 on stronger-than-expected May 2008 sales by Wal-Mart and other retailers and a surprising fall in weekly jobless claims, spurring optimism about the economy's health. The Dow Jones industrial average gained 213.97 points, or 1.73%, to 12,604.45. The S&P 500 index advanced 26.85 points, or 1.95%, to 1,404.05, and the Nasdaq Composite index surged 46.80 points, or 1.87%, to 2,549.94
The European Central Bank said yesterday, 5 June 2008, it would keep key lending rates unchanged at 4%. The bank, however, anticipates inflation to be more persistent than previously anticipated. Also the Bank of England kept its benchmark interest rate unchanged at 5% yesterday, 5 June 2008.
Back home, frenzied buying coupled with short covering after three straight days of fall triggered a solid rally yesterday, 5 June 2008. The 30-share BSE Sensex jumped 254.93 points or 1.64% at 15,769.72 and the broader based S&P CNX Nifty was up 91.35 points or 1.99% to 4,676.95, on that day.
As per provisional data, foreign funds sold shares worth a net Rs 1418.34 crore yesterday, 5 June 2008. Domestic funds bought shares worth a net Rs 570.03 crore on that day.
Foreign institutional investors (FIIs) were net buyers of Rs 1054.43 crore in the futures & options segment yesterday, 5 June 2008. They were net buyers of index futures to the tune of Rs 1035.25 crore and bought index options worth Rs 405.81 crore. They were net sellers of stock futures to the tune of Rs 402.85 crore and bought stock options worth Rs 16.22 crore.
Meanwhile, market regulator Securities and Exchange Board of India (Sebi) yesterday, 5 June 2008, ruled out relaxing curbs imposed last year on participatory notes (PNs), a derivative tool that enables unregistered foreign investors to invest in Indian stock markets. In October 2007, Sebi had imposed restrictions on Foreign Institutional Investors (FIIs) to issue PNs and asked FIIs and their sub-accounts not to issue fresh PNs against underlying derivatives and wind up their existing position in 18 months.
Source: Capital Market
Global cues were positive, with European and Asian markets trading in positive zone. US markets saw a sharp rally yesterday, 5 June 2008.
Inflation based on the wholesale price index (WPI) rose 8.24% in the year through 24 May 2008, compared to previous week's rise of 8.10%. The government also revised the annual inflation rate for the year through 29 March 2008 to 7.75% as compared to 7.41% reported earlier.
Crude oil climbed close to $6 on Thursday, 5 June 2008, to more than $127 per barrel as funds shifted back into oil when the dollar fell against the euro following a signal from the European Central Bank that it may raise interest rates. The crude contract climbed another 0.3% in Asian trading today.
The 30-share BSE Sensex was down 203.62 points or 1.29% at 15,566.10, as per provisional closing. The Sensex lost 243.22 points at day’s low of 15,526.50 touched in late trade. After opening 144.69 points higher at 15,914.41, the Sensex advanced further to strike an intra-day high of 15,970.70 in early trade. At the day’s high, Sensex gained 200.98 points.
The broader based S&P CNX Nifty was down 51.60 points or 1.10% at 4,625.35 as per provisional closing.
Reserve Bank of India governor YV Reddy yesterday, 5 June 2008 hinted at a possible increase in CRR in an attempt to curb inflationary expectations
The market breadth was negative on BSE with 1516 shares declining as compared to 1142 that advanced. 64 remained unchanged. On the contrary, the market breadth was strong in early trade.
The BSE Mid-cap index was down 0.95% to 6,339.21 and the BSE Small-Cap index slipped 0.60% to 7,689.53, as per provisional closing.
The total turnover on BSE amounted to Rs 5229 crore as compared to Rs 3973 crore by 14:30 IST.
Among the 30-member Sensex pack, 25 declined while the rest advanced.
Mahindra & Mahindra (M&M), the country’s largest tractor company in terms of sales, advanced 3.07% to Rs 580 on 60,044 shares. On 5 June 2008, the company agreed to buy Italian auto designer Engines Engineering for an undisclosed sum. The stock was the top gainer from Sensex pack.
Tata Motors (up 1.37% to Rs 539.90), Infosys Technologies (up 0.73% to Rs 1994.10), and Grasim (up 1.06% to Rs 2270) edged higher from the Sensex pack
India’s largest private sector company in terms of market capitalisation and oil refiner Reliance Industries (RIL) was down 0.74% to Rs 2231.10 on high volumes of 17.10 lakh shares. The stock had surged to an intra-day high of Rs 2299 in opening trade. Reliance Industries today said only one unit at its Nagothane petrochemicals plant had been shut by a fire and others were running normally. The plant has an annual capacity of 4,00,000 tonnes of ethylene. The shut unit has annual capacity of 1,20,000 tonnes
India’s third largest software services exporter Wipro lost 4.05% to Rs 507 on 2.86 lakh shares. It was the top loser from Sensex pack.
Hindalco Industries (down 3.99% to Rs 174.65), ITC (down 3.98% to Rs 213.50) and DLF (down 3.98% to Rs 517.50), edged lower from the Sensex pack.
India’s largest state run engineering company in terms of outstanding order book Bharat Heavy Electricals declined 1.80% to Rs 1419, after striking an intra-day high of Rs 1499.95. On 26 May 2008, the company had bagged Rs 1,150-crore turnkey contract from a joint venture of HPCL and Mittal Energy for setting up an energy efficient 153 megawatt captive power plant at Bhatinda in Punjab.
India's second largest power generation company in terms of sales, Reliance Infrastructure (formerly Reliance Energy), slipped 2.29% to Rs 1105, after hitting day’s high of Rs 1163. The stock was boosted by reports that it has won regulatory approval to raise power tariff by as much as 10.22% for its 2.6 million users in Mumbai. Shares of rival power generation company Tata Power Company rose 1.86% to Rs 128.05 on reports it has also hiked tariff marginally. The new tariff will be applicable from 1 June 2008 31 March 2009.
Interest rate sensitive banking shares declined. ICICI Bank (down 1.66% to Rs 768.25) and HDFC Bank (down 1.05% to Rs 1230) declined.
India’s largest stare-run bank in terms of net profit State Bank of India fell 1.80% to Rs 1330. The bank signed an agreement with Societe Generale Securities Services, a division of Societe Generale Group, to form a joint venture company for providing custody services.
Reliance Industries was the top traded counter on BSE with turnover of Rs 386.07 crore followed by Reliance Capital (Rs 214.18 crore), Cairn India (Rs 208.51 crore), Gokul Refoils (Rs 196.95 crore), and Anu’s Labs (Rs 173.44 crore), in that order.
European markets, which opened after Indian markets pared early gains. Key benchmark indices in United Kingdom (up 0.47% to 6,023.40), France (up 0.01% to 4,907.23), and Germany (up 0.02% to 6,943.43), advanced.
Most Asian markets, which opened before Indian markets, were trading higher today, 6 June 2008. Japan's Nikkei (up 1.03% at 14,489.44), Hang Seng (up 0.61% at 24,402.18), Taiwan's Taiwan Weighted (up 0.08% at 8,745.35), Singapore's Straits Times (up 0.26% at 3,151.94), advanced. However, China's Shanghai Composite declined 0.56% at 3,332.77.
US markets rallied yesterday, 5 June 2008 on stronger-than-expected May 2008 sales by Wal-Mart and other retailers and a surprising fall in weekly jobless claims, spurring optimism about the economy's health. The Dow Jones industrial average gained 213.97 points, or 1.73%, to 12,604.45. The S&P 500 index advanced 26.85 points, or 1.95%, to 1,404.05, and the Nasdaq Composite index surged 46.80 points, or 1.87%, to 2,549.94
The European Central Bank said yesterday, 5 June 2008, it would keep key lending rates unchanged at 4%. The bank, however, anticipates inflation to be more persistent than previously anticipated. Also the Bank of England kept its benchmark interest rate unchanged at 5% yesterday, 5 June 2008.
Back home, frenzied buying coupled with short covering after three straight days of fall triggered a solid rally yesterday, 5 June 2008. The 30-share BSE Sensex jumped 254.93 points or 1.64% at 15,769.72 and the broader based S&P CNX Nifty was up 91.35 points or 1.99% to 4,676.95, on that day.
As per provisional data, foreign funds sold shares worth a net Rs 1418.34 crore yesterday, 5 June 2008. Domestic funds bought shares worth a net Rs 570.03 crore on that day.
Foreign institutional investors (FIIs) were net buyers of Rs 1054.43 crore in the futures & options segment yesterday, 5 June 2008. They were net buyers of index futures to the tune of Rs 1035.25 crore and bought index options worth Rs 405.81 crore. They were net sellers of stock futures to the tune of Rs 402.85 crore and bought stock options worth Rs 16.22 crore.
Meanwhile, market regulator Securities and Exchange Board of India (Sebi) yesterday, 5 June 2008, ruled out relaxing curbs imposed last year on participatory notes (PNs), a derivative tool that enables unregistered foreign investors to invest in Indian stock markets. In October 2007, Sebi had imposed restrictions on Foreign Institutional Investors (FIIs) to issue PNs and asked FIIs and their sub-accounts not to issue fresh PNs against underlying derivatives and wind up their existing position in 18 months.
Source: Capital Market
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