Market extends loss on concern of interim budget outlay: Sensex below 9,400 mark

Date : Feb-16-2009 13:31

Market extended loss as investors are not sure whether the interim budget would live up to the expectation for a stimulus plan. The nervousness was seen into couple of heavy weight stocks on the back of concern of weakening economy. Further, most Asia-pacific markets were trading lower, after data revealed Japan’s economy shrank as recessions in the US and Europe triggered a record dip in exports.

On the sectoral front, traders off-loaded position across the sectors. Banking stocks fell on weak sentiment for financial sector stocks globally. Realty stocks declined on fear that interim budget may not include sops to the housing sectors. Textile stocks advanced on hopes the government may unveil some sops in the interim budget to revive the troublesome sector. Tyre stocks fell on reports the government has started issuing licenses to allow import of truck and bus radial tyres.

The market breadth, indicating the overall strength of the market, was weak. On BSE, out of 2,261 stocks traded so far, 771 shares advanced while 1,407 shares declined. Nearly 83 shares are unchanged.

At 1.30PM, the BSE Sensex is trading lower by 299.63 points at 9,335.11 and NSE Nifty is down by 91.50 points at 2,856.85.

The BSE Mid Cap is trading lower by 65.44 points at 2,947.51 and Small cap is trading down by 49.04 points at 3,346.53.

Losers from the BSE Sensex pack are Jaiprakash Associates plunged by 7.15% to Rs. 70.10 along with Reliance Infra down by 5.82% to Rs. 536.15, State Bank of India by 5.07% to Rs. 1,133.50, R. Com by 5.04% to Rs. 172.50, Larsen & Toubro by 5.01% to Rs. 666.00, Sterlite Ind 4.65% to Rs. 262.70, Reliance Industries fell 4.53% to Rs. 1,328.00, ICICI Bank by 4.45% to Rs. 415.00, Tata Steel by 4.35% to Rs. 185.70 and BHEL by 4.30% to Rs. 1,403.75 among others.

The BSE Realty index is lower by 71.64 points or 4.50% at 1,520.72. Stocks trading in red are Indiabulls Realty by 7.75% to Rs. 100.65, Unitech by 5.49% to Rs. 30.10, Housing Dev by 4.39% to Rs. 83.80, Ansal Infra by 4.07% to Rs. 28.25, DLF by 3.24% to Rs. 155.40 and Orbitco by 1.64% to Rs. 54.10 among others.

Reliance Communication fell 5.04% to Rs. 172.50 as it reportedly entered into a Rs. 50 crore deal with US-based Ditech Networks to deploy the latter`s voice enhancement solution on its recently unveiled GSM network.

Reliance Industries fell 4.53% to Rs. 1,328.00 on profit booking.

NTPC fell 1.80% to Rs. 179.60 as it entered in to an MOU with Nuclear Power Corporation of India (NPCIL) and formed a joint venture company for setting up Nuclear Power Projects.

Cairn India fell 1.83% to Rs. 161.00, despite crude oil prices spurted 10% on the New York Mercantile Exchange on Friday, 13 February 2009.

Satyam Computer Service spurted 3.89% to Rs. 48.10 after the stock market regulator relaxed takeover rules in certain conditions, which should make it easier for fraud-hit Satyam Computer to find a buyer.

Bartronics India jumped 8.40% to Rs. 83.25, after the company said it secured a project from the Municipal Corporation of Delhi for setting up 2000 kiosks.

Jain Irrigation Systems surged 0.32% to Rs. 377.00, on signing a pact with National Bank for Agriculture and Rural Development for village development programme in Maharashtra.

Titagarh Wagons tumbled 8.93% to Rs. 209.70, after the stock rose almost 40% in a run up to interim railway budget that held on Friday, 13 February 2009.

Markets tumble, Sensex below 9,000

MUMBAI: Equities opened sharply lower on Thursday dragged down by weak overseas markets. All sectoral indices took a sharp hit with realty and IT stocks leading declines.

Bombay Stock Exchange’s 30-share Sensex plummeted 377.39 points to 8993. National Stock Exchange’s benchmark Nifty slumped 119 points to 2719 from Wednesday’s close.

Nortel Networks Corp, North America's biggest telephone equipment maker, filed for bankruptcy on Wednesday, hoping to save a once highflying business whose decade-long decline has accelerated with the global economic crisis. The filing marks a crucial stage in the slow deterioration of one of Canada's most prominent companies.

However, the bankruptcy filing of networking vendor Nortel is expected to have only a marginal impact on Indian IT companies. The telecom giant is a long-time outsourcer to Indian service providers. The top three Indian IT service providers - Tata Consultancy Services, Infosys Technologies and Wipro — as well as a few smaller firms like Sasken Technologies are vendors to Nortel. TCS, which is set to announce its third quarter results on Thursday, said its exposure to Nortel was very minimal and less than 1% of its revenue.

Meanwhile, US stocks fell to six-week lows on Wednesday on worries about deeper losses at banks worldwide and as US retail sales data pointed to a deepening recession. US retail sales dropped for a sixth month with a 2.7 per cent slump in December, the Commerce Department said yesterday, twice the drop economists had estimated.

The Dow lost 248.34 points, or 2.94 per cent, to 8,200.22; while the S&P 500 slid 29.12 points, or 3.34 per cent, to 842.67 and the Nasdaq Composite shed 56.82 points, or 3.67 per cent, to 1,489.64.

Asian stocks fell, dragging the regional stock benchmark to the lowest in five weeks, after Japanese machinery orders and US retail sales dropped at more than double the pace economists expected. The Nikkei dropped 2.5 per cent, Topix fell 2.46 per cent, Hang Seng lost 4.67 per cent Straits Times dipped 3.13 per cent.

Source: http://timesofindia.indiatimes.com/?in_leftnav