The benchmark indices closed sharply lower and continued their downtrend for the second consecutive day. The markets crossed the total turnover of Rs 1 lakh crore as institutions were the sellers in today's trade. They booked profits at higher levels. The Nifty closed below the 4400 mark while the Sensex ended below 15,000 level. Both the indices were seeing some bouts of volatility in the second half of trade.
Financial, technology, telecom, capital goods, metal and select oil & gas stocks witnessed selling pressure. However, ONGC, NTPC, Sterlite Industries, DLF and GAIL were the only gainers. All sectoral indices ended in the red.
The markets started with good gains led by positive Asian cues and had managed to recover Tuesday's losses. But after two hours of positive trade, both the indices slipped into the red due to sell-off in heavyweights. The 50-share NSE Nifty shed 159 points or 3.5% from an intraday high of 4557.95, before closing at 4398.90, down 1.57% or 70.20 points. The 30-share BSE Sensex lost 219.37 points or 1.46%, to settle at 14,843.12, after shedding 526 points or 3.4% from day's high of 15,369.42.
At per the provisional data, the Nifty July future closed with 14 points premium. The Nifty 4200 Put shed 6.5 lakh shares in OI (open interest) while the Nifty 4600 Call added 5 lakh shares in OI. Reliance Industries, HDFC, BHEL, Bharti, TCS, SAIL, ICICI Bank, L&T and Infosys were draggers.
Vijay Bhambwani of bsplindia.com said if we broke 4400 one could even see those head and shoulder targets of 3875 or 3650 materializing provided the decline is on very steep volumes. "Today we are seeing distribution, volumes are higher, markets are tempted to make an up thrust but failed and terminated at 4560 odd levels. That should be treated as a short-term top now."
Total traded turnover increased 31.6%, to Rs 1,19,647.60 crore as against Rs 90,914.18 crore on Tuesday. This included Rs 21,352.57 crore from the NSE cash segment, Rs 91,641.08 crore from the NSE F&O and the balance Rs 6,653.95 crore from the BSE cash segment.
Earnings
HDFC lost 4.4% despite good quarterly numbers. Its Q1FY10 net profit went up 20.73% to Rs 565 crore and net interest income was up 27.41% to Rs 830.2 crore.
BHEL declined 2.9%. Its Q1FY10 PAT (profit after tax) was up 22.42% at Rs 470.59 crore and net sales went up 29.25% to Rs 5,595.65 crore, YoY.
Wipro Q1 consolidated net sales declined to Rs 6,289.1 crore from Rs 6,482.1 crore while net profit went up a bit by 0.54% to Rs 1,015.5 crore from Rs 1,010 crore (QoQ) (US GAAP). IT services revenue stood at $1,033 million, down 1.3% (QoQ). The stock was down 1.5%.
Canara Bank Q1FY10 net interest income (NII) was up 26.72% at Rs 1,291.5 crore and net profit was up 352.39% at Rs 555.3 crore, YoY. The stock lost 2%.
All sectoral indices ended in the red. BSE Capital Goods, Auto, Power, IT, TECk, Metal, Healthcare and Bank indices were down 1-1.8%
In the capital goods space, ABB, BHEL, Crompton Greaves and L&T were down 1.6-3%. Power stocks like Reliance Infrastructure, Neyveli Lignite, Reliance Power, GVK Power, Torrent Power and Power Grid Corp lost 1-3.4%. Lanco Infratech, Tata Power and GMR Infra were down 0.4-0.8%.
In the technology space, Tech Mahindra, HCL Tech, TCS, Mphasis, Wipro and Infosys declined 1-5%. Banking stocks like Kotak Mahindra, Axis Bank, ICICI Bank and HDFC Bank slipped 1-2.9%. SBI was down 0.9%.
In the metal pack, Hindalco, Tata Steel, SAIL, Sesa Goa, Hindustan Zinc, JSW Steel and Jindal Saw lost 1.4-3.4%.
Oil & gas stocks like Cairn India, BPCL, Reliance Industries, Reliance Petroleum and IOC were down 1.5-3%. HPCL was down 0.51%.
In the auto space, Ashok Leyland, Bajaj Auto, Maruti Suzuki, Hero Honda and M&M lost 1.4-3%. Tata Motors was down 0.79%.
Telecom stocks like Tata Communication, Reliance Communication, Bharti Airtel, Idea Cellular and MTNL slipped 1.5-2.7%. In the realty space, Ackruti City, Unitech and Indiabulls Real fell 0.9-2.6%.
The market breadth was negative; about 1308 shares advanced while 1451 shares declined on the BSE. Nearly 405 shares remained unchanged. Among the broader indices, the BSE Midcap was down nearly 1% and Smallcap Index fell just 0.35%.
In the midcap space, India Cements, LIC Housing Finance, Anant Raj Industries, Gujarat Flourochem and Simplex Infra were down 6-8%. In the smallcap space, Sanghi Industries, Sunflag Iron, Anus Labs, Titagarh Wagons, Dalmia Cement and TIL declined 6-7.5%.
On the global front, Asian markets ended mixed. Shanghai was up 2.6%. Nikkei, Straits Times and Taiwan Weighted were up 0.3-0.7%. However, Hang Seng fell 1.3% and Jakarta Composite down 1%. Straits Times was flat.
At the time of closing of Indian equities, European markets and US futures were trading marginally in the red.
Mkts slide further; RIL, Bharti, SAIL, BHEL, TCS, L&T drag
At 14:53 hours IST, selling in financial, technology, capital goods, telecom, select power and oil & gas stocks was putting pressure on the benchmark indices. The Nifty was struggling at the 4400 mark as institutions were the sellers. The broader indices were also quiet in trade.
Wednesday, July 22, 2009
SEBI removes no-delivery period
To avoid volatility in markets, watchdog SEBI has done away with the practice of keeping shares under no-delivery during the record date
for corporate announcements like bonus or dividend.
No-delivery period means that trading during the record date would not result in any delivery of shares.
However, this system was useful when trading used to take place in the physical form as certificates had to be delivered before record date starts to the registrars of companies.
However, the practice lost importance during the present days of demat or electronic trading.
"...it is decided to do away with 'no-delivery period' for all types of corporate actions in respect of the scrips which are traded in the compulsory dematerilaised mode," market regulator SEBI said in a circular.
Market analysts said the move will prevent market volatility.
"The announcement would prevent fluctuation in prices and it is good for the market," brokerage firm SMC Global Vice- President Rajesh Jain.
SEBI added the circular is issued to protect the interests of investors in securities and to promote and regulate the securities market and it would come into effect from August 1, 2009.
for corporate announcements like bonus or dividend.
No-delivery period means that trading during the record date would not result in any delivery of shares.
However, this system was useful when trading used to take place in the physical form as certificates had to be delivered before record date starts to the registrars of companies.
However, the practice lost importance during the present days of demat or electronic trading.
"...it is decided to do away with 'no-delivery period' for all types of corporate actions in respect of the scrips which are traded in the compulsory dematerilaised mode," market regulator SEBI said in a circular.
Market analysts said the move will prevent market volatility.
"The announcement would prevent fluctuation in prices and it is good for the market," brokerage firm SMC Global Vice- President Rajesh Jain.
SEBI added the circular is issued to protect the interests of investors in securities and to promote and regulate the securities market and it would come into effect from August 1, 2009.
IRDA caps ULIP charges
the Insurance Regulatory Development Authority (IRDA) has finalised the cap on charges for ULIP contracts. IRDA has stipulated that charges cannot exceed 300 bps for contracts up to 10 years and 225 bps for contracts of more than 10 years.
The cap is expressed in terms of the difference between the gorss and net yield. This cap will come into effect by 1st October 2009.
The cap is expressed in terms of the difference between the gorss and net yield. This cap will come into effect by 1st October 2009.
Likely to raise Rs 600cr via QIP in Q2FY10: LIC Hsg Fin
R Ramachandran Nair, Director and CEO of LIC Housing Finance, said that the company was likely to raise Rs 600 crore via Qualified Institutional Placement (QIP) during the second quarter of FY2010.
He spoke following the announcement of the company's first quarter results. The company's Q1 standalone net sales were up at Rs 745.1 crore versus Rs 605.4 crore. Nair said the company’s Q1 provisioning stood at 57% versus 48% last quarter while its provisions stood at Rs 250 crore versus Rs 244 crore in the previous quarter.
He spoke following the announcement of the company's first quarter results. The company's Q1 standalone net sales were up at Rs 745.1 crore versus Rs 605.4 crore. Nair said the company’s Q1 provisioning stood at 57% versus 48% last quarter while its provisions stood at Rs 250 crore versus Rs 244 crore in the previous quarter.
Air India slash fare to woo domestic fliers
The special fares are divided into two categories and would be valid till 20 September this year
National air-carrier, Air India on Wednesday announced special fares on its select domestic sectors to attract passengers during the lean season.
The tickets under the special fares, which are in two categories, can be purchased upto three days before flying and would be valid till 20 September, Air India said.
The first category of special fares, available on 24 domestic sectors on the airlines’ network, comprises of basic fares and passenger service fee, the release said.
No fuel surcharge would be applicable on these fares, it said. Under the offer a Mumbai-Hyderabad travel would cost only Rs2,079. Similarly, a Mumbai-Kochi travel would cost Rs3,279 and Mumbai-Bangalore Rs2,779, the release said.
The second category of special fares offers would be applicable on 70 select domestic routes and exclusive of all taxes and passenger service fee, Air India said.
However, a passenger would have to pay user development fee at aiports where its is applicable, the release said.
National air-carrier, Air India on Wednesday announced special fares on its select domestic sectors to attract passengers during the lean season.
The tickets under the special fares, which are in two categories, can be purchased upto three days before flying and would be valid till 20 September, Air India said.
The first category of special fares, available on 24 domestic sectors on the airlines’ network, comprises of basic fares and passenger service fee, the release said.
No fuel surcharge would be applicable on these fares, it said. Under the offer a Mumbai-Hyderabad travel would cost only Rs2,079. Similarly, a Mumbai-Kochi travel would cost Rs3,279 and Mumbai-Bangalore Rs2,779, the release said.
The second category of special fares offers would be applicable on 70 select domestic routes and exclusive of all taxes and passenger service fee, Air India said.
However, a passenger would have to pay user development fee at aiports where its is applicable, the release said.
May go for IPO, stake sale of insurance biz: Rel Cap
Reliance Capital aims to be a world-class financial enterprise, it chairman Anil Ambani today said at its annual general meeting. “Our focus has shifted from gaining market share to profitability,” he said.
Ambani added that the company was considering various options to unlock value in the insurance business, and that it was likely to go for stake sale, IPO of its insurance business.
Ambani added that the company was considering various options to unlock value in the insurance business, and that it was likely to go for stake sale, IPO of its insurance business.
Kalam frisked by US airlines staff
While travelling to the United States a month ago, former president Dr A P J Abdul Kalam was frisked at the IGI Airport in Delhi by the employees of Continental Airlines.
Reports said, Dr Kalam was made to wait for the security check and was made to take off his shoes for checking. However, while this was being done, officials of CISG objected to Kalam's checking.
Ex-president Kalam is exempted from security checks and frisking.
Treating the matter as most serious, Civil Aviation Ministry today ordered an inquiry into the incident and Praful Patel called the matter 'absolutely unpardonable'.
Reports said, Dr Kalam was made to wait for the security check and was made to take off his shoes for checking. However, while this was being done, officials of CISG objected to Kalam's checking.
Ex-president Kalam is exempted from security checks and frisking.
Treating the matter as most serious, Civil Aviation Ministry today ordered an inquiry into the incident and Praful Patel called the matter 'absolutely unpardonable'.
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