Thursday, February 26, 2009

Market traded in red despite fall in inflation data: Sensex below 9K mark

Date : Feb-26-2009 13:32
The key benchmark Indices plunged on concern over global financial sector crisis and recession in key global economies has pushed economic growth in India down to a six-year low. Further, concerns about rising borrowing costs for Indian corporate pondered on the market as fears a downgrade of India’s sovereign rating by global rating agencies worries larger segment of the market.

Now all eyes are waiting for the RBI to reduce its key rates that would pump in more liquidity into the system and prompt the banks to reduce their respective PLRs to enhance the credit growth.

Volatility is likely to remain as rollover of Nifty positions from February 2009 series to March 2009 series stood at 62% while market wide rollover of positions was 57%, as on Wednesday, 25 February 2009.

On the sectoral front, traders off-loaded position across the sectors. Metal stocks declined on concerns a weakening domestic and global economy will have negative impact on demand. Banking stocks fell on fears of rising defaults in a weakening economy. Realty stocks plummeted on recent reports falling rates have failed to boost housing demand.

The Market breadth, indicating the overall strength of the market, was weak. On BSE, out of 2,207 stocks traded so far, 821 shares advanced while 1,285 shares declined. Nearly 101 shares are unchanged.

At 1.30PM, the BSE Sensex is trading lower by 45.37 points at 8,857.18 and NSE Nifty is down by 13.50 points at 2,749.00.

The BSE Mid Cap is trading lower by 2.28 points at 2,754.70 and Small cap is trading down by 26.03 points at 3,108.65.

Major losers from the BSE Sensex pack are Ranbaxy Labs deteriorated 16.55% to Rs. 172.95 along with ICICI Bank tumbled 5.65% to Rs. 321.25, Housing Development Finance by 4.09% to Rs. 1,203.15, Hindalco Ind by 2.00% to Rs. 39.25, Jaiprakash Associates by 1.94% to Rs. 65.75 and HDFC Bank by 1.75% to Rs. 849.00 among others.

Major gainers from the BSE Sensex pack are Tata Motors advanced by 1.89% to Rs. 142.50 along with Larsen & Toubro Ltd by 1.31% to Rs. 620.45, Grasim Industries Ltd by 0.98% to Rs. 1,421.00, ACC by 0.28% to Rs. 559.70 and Infosys Tech by 0.23% to Rs. 1,219.00 among others.

The BSE Bankex index is lower by 136.78 points or 3.20% at 4,140.25. Stocks trading in red are ICICI Bank fell by 5.65% to Rs. 321.25, Karnataka Bank by 4.43% to Rs. 61.45, Punjab National Bank by 4.38% to Rs. 326.50, Axis Bank 4.37% to Rs. 350.25, Canara Bank by 3.58% to Rs. 156.25, IDBI Bank3.45% to Rs. 47.60 and Yes Bank by 3.27% to Rs. 51.80 among others.

Ranbaxy Laboratories deteriorated 16.55% to Rs. 172.95 after US regulators raised questions against falsified data and test results.

Reliance Industries fell by 0.01% to Rs. 1,265.90 on fears a worsening global economy will hit demand for petrochemicals.

ONGC rose 0.06% to Rs. 697.20 and Cairn India gained 1.25% to Rs. 162.50 as crude oil prices surged over 6% on the New York Mercantile Exchange on Wednesday, 25 February 2009.

Piramal Healthcare rose 16.65% to Rs. 208.40 on report French drug maker Sanofi-Aventis has emerged as the front-runner to buy a substantial stake in the Indian firm.

Matrix Laboratories advanced 2.92% to Rs. 91.60 after the company said it got approval from the World Health Organisation for generic version of a HIV drug.

Larsen & Toubro rose 1.31% to Rs. 620.45 on bagging new orders aggregating to Rs. 1,162 crore.

Madras Aluminium Company was locked at 5% upper limit at Rs. 94.95 after Twin Star Holdings set a price of Rs. 105 for acquiring 20% stake in the Indian aluminium maker as part of a delisting offer.

Strides Arcolab jumped 6.99% to Rs. 71.90, on reporting strong financial performance for CY2008.

Petron Engineering Construction gained 0.82% to Rs. 67.55, after the company said it bagged two orders aggregating to Rs. 72.55 crore.

DLF slumped 3.62% to Rs. 149.00 on reports the Income-Tax department has ordered a special audit of the accounts of the real estate giant for the assessment year 2006-07.

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