The key benchmark indices extended initial losses to hit fresh intraday lows in afternoon trade soon after banking major State Bank of India announced poor Q4 results. Weak start for European stocks also weighed on the sentiment. The BSE 30-share Sensex was down 144.10 points or 0.78%, up close to 10 points from the day's low and off close to 235 points from the day's high. The market breadth was weak. The S&P CNX Nifty tumbled to near eight-week low and the Sensex hit 1-1/2-week low.
Index heavyweight Reliance Industries extended initial slide. State-run upstream oil companies plunged on reports the government has increased subsidy burden on upstream companies with respect to under-recoveries of oil marketing firms on sale of fuel at controlled price. Interest rate sensitive realty stocks declined on worries higher interest rates could dent demand for residential and commercial property. IT stocks rose on a weak rupee.
Meanwhile, stock brokers have informed their clients that shares purchased in cash segment on Monday, 16 May 2011, cannot be sold for delivery on Tuesday, 17 May 2011, due to merger of settlements. Banks remain closed today on account of Buddha Purnima.
At 13:20 IST, the BSE 30-share Sensex was down 144.10 points or 0.78% to 18,202.77. The index lost 155.24 points at the day's low of 18,189.79 in afternoon trade, its lowest level since 5 May 2011. The Sensex gained 90.77 points at the day's high of 18,435.80 in morning trade.
The S&P CNX Nifty was down 55.25 points or 1% to 5,443.75. The Nifty hit a low of 5,442.10 in intraday trade, its lowest level since 23 March 2011.
The market breadth, indicating the health of the market, was weak. On BSE, 1534 shares declined while 1025 shares advanced. A total of 118 shares remained unchanged.
Among the 30-member Sensex pack, 20 declined while the rest of them advanced. Hero Honda Motors, Tata Motors and NTPC shed by between 1.84% to 3.38%.
India's largest commercial bank by branch network State Bank of India (SBI) was down 3.72% after bank announced during market hours today that net profit fell 98.88% to Rs.20.88 crore on 18.07% rise in total income to Rs. 26536.84 crore in Q4 March 2011 over Q4 March 2010. A sharp surge in tax provision to Rs. 1901.85 crore from Rs. 977.88 crore in Q4 March 2010 pulled down the profit to a measly figure in Q4 March 2011.
India's largest private sector bank by net profit ICICI Bank lost 1.17%. The bank raised its benchmark base rate by 50 basis points to 9.25% per annum effective 7 May 2011. It has also announced an increase of 0.5% in its benchmark prime lending rate and in its Floating Reference Rate for consumer loans (including home loans).
India's second largest private sector bank by net profit HDFC Bank rose 0.54%. The bank raised its base rate by 55 basis points (bps) to 9.25% per annum and prime lending rate (PLR) by 50 bps to 17.75% effective 12 May 2011.
Index heavyweight Reliance Industries (RIL) lost 2.4% to Rs. 921.65, extending initial decline. The stock gyrated between Rs. 921.10 and Rs. 947.45 so far during the day. Reportedly RIL is working on a pricing formula for coal bed methane from three blocks in Sohagpur (east and west) and Sonhat in Madhya Pradesh, prior to asking government approval. The government is now insisting on its power to set the price for any gas produced by private companies. Reports added that RIL is discussing the pricing issue with some power and fertiliser companies and will take it to the government once it arrives on a price.
India's largest oil exploration firm by sales ONGC plunged 5.78% on high volume of 18.31 lakh shares on reports the government has increased upstream share to 38.5% of total subsidy burden of about Rs. 77922 crore for the year ended March 2011 (FY 2011). Upstream companies will have to bear burden of Rs. 30,000 crore in FY 2011, reports added. Another state run upstream oil firm Oil India slumped 4.65%.
Software firms rose after the rupee fell to its lowest in two months against the dollar on Monday. The partially convertible rupee ended at 45.1550/1650 per dollar on Monday after falling to 45.18 in intraday trade -- its weakest since 17 March 2011. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. India's second largest software services exporter Infosys rose 0.29%. India's largest software services exporter TCS gained 1.08%. India's third largest software exporter Wipro shed 0.78%.
Interest rate sensitive realty stocks declined on worries higher interest rates could dent demand for residential and commercial property. Purchases of both residential and commercial property are largely driven by finance. Ackruti City, DLF, HDIL and Unitech fell by between 0.02% to 1.34%.
India's largest cigarette maker by sales ITC rose 1.69% on expectations of good Q4 results. The company unveils its Q4 March 2011 result on 20 May 2011.
Among other FMCG stocks, Dabur India, Hindustan Unilever, United Spirits and Britannia Industries rose by between 0.17% to 3.94%.
State-run Steel Authority of India declined 3.12% after media reports quoted company's chairman C. S. Verma as saying that the company will likely launch its follow-on public offer share sale by 14 June 2011, after the board of directors of the steel maker finalise the draft prospectus early next week.
Foreign institutional investors (FIIs) bought shares worth Rs. 47.07 crore and domestic funds bought shares worth Rs. 3.41 crore on Monday, 16 May 2011 as per provisional figures released by the stock exchanges.
The corporate results announced so far have been good. The combined net profit of a total of 1982 companies rose 17.5% to Rs. 58824 crore on 22.6% rise in sales to Rs. 607395 crore in the quarter ended March 2011 over the quarter ended March 2010.
On the macro front, the wholesale price index (WPI) rose an annual 8.66% in April 2011, lower than the upwardly revised annual rise of 9.04% in March 2011, government data showed on Monday. The government also revised upwards inflation rate for February 2011 to 9.54% from provisional rise of 8.31% reported earlier.
State-run oil marketing companies hiked petrol rates by a steep Rs. 5 per litre effective midnight Saturday. Reports on Sunday indicated that Finance minister Pranab Mukherjee will head a ministerial panel to decide on raising diesel, LPG and kerosene prices later this week. If diesel price is hiked, it could further stoke inflationary pressure in the economy -- diesel being a key transportation fuel. The Reserve Bank of India (RBI) at its annual 2011-2012 monetary policy review on 3 May 2011, said it will continue with its anti-inflationary stance. Short-term sacrifices in economic growth will have to be made to rein in surging prices, the central bank said.
European shares fell on Tuesday weighed by persistent peripheral euro zone debt concerns, while OMV was among the top fallers after it announced a refinancing plan. The key benchmark indices in France, Germany and UK fell by between 0.34% to 0.65%.
Asian stocks declined in volatile trade. The key benchmark indices in South Korea, Taiwan and Hong Kong fell by between 0.08% to 0.86%. The key benchmark indices in Japan and China were up 0.09% and 0.13% respectively. Markets in Singapore and Indonesia were closed for a public holiday.
Trading in US index futures indicated that Dow could rise 10 points at the opening bell on Tuesday, 17 May 2011.
US crude futures were down 39 cents or 0.4% at $96.98 a barrel on Tuesday. India imports majority of its crude oil requirements and high oil prices have raised concerns about widening current account deficit (CAD). High oil prices have also raised concerns about higher oil subsidy bill for the government and its negative impact on the government's fiscal position.
Index heavyweight Reliance Industries extended initial slide. State-run upstream oil companies plunged on reports the government has increased subsidy burden on upstream companies with respect to under-recoveries of oil marketing firms on sale of fuel at controlled price. Interest rate sensitive realty stocks declined on worries higher interest rates could dent demand for residential and commercial property. IT stocks rose on a weak rupee.
Meanwhile, stock brokers have informed their clients that shares purchased in cash segment on Monday, 16 May 2011, cannot be sold for delivery on Tuesday, 17 May 2011, due to merger of settlements. Banks remain closed today on account of Buddha Purnima.
At 13:20 IST, the BSE 30-share Sensex was down 144.10 points or 0.78% to 18,202.77. The index lost 155.24 points at the day's low of 18,189.79 in afternoon trade, its lowest level since 5 May 2011. The Sensex gained 90.77 points at the day's high of 18,435.80 in morning trade.
The S&P CNX Nifty was down 55.25 points or 1% to 5,443.75. The Nifty hit a low of 5,442.10 in intraday trade, its lowest level since 23 March 2011.
The market breadth, indicating the health of the market, was weak. On BSE, 1534 shares declined while 1025 shares advanced. A total of 118 shares remained unchanged.
Among the 30-member Sensex pack, 20 declined while the rest of them advanced. Hero Honda Motors, Tata Motors and NTPC shed by between 1.84% to 3.38%.
India's largest commercial bank by branch network State Bank of India (SBI) was down 3.72% after bank announced during market hours today that net profit fell 98.88% to Rs.20.88 crore on 18.07% rise in total income to Rs. 26536.84 crore in Q4 March 2011 over Q4 March 2010. A sharp surge in tax provision to Rs. 1901.85 crore from Rs. 977.88 crore in Q4 March 2010 pulled down the profit to a measly figure in Q4 March 2011.
India's largest private sector bank by net profit ICICI Bank lost 1.17%. The bank raised its benchmark base rate by 50 basis points to 9.25% per annum effective 7 May 2011. It has also announced an increase of 0.5% in its benchmark prime lending rate and in its Floating Reference Rate for consumer loans (including home loans).
India's second largest private sector bank by net profit HDFC Bank rose 0.54%. The bank raised its base rate by 55 basis points (bps) to 9.25% per annum and prime lending rate (PLR) by 50 bps to 17.75% effective 12 May 2011.
Index heavyweight Reliance Industries (RIL) lost 2.4% to Rs. 921.65, extending initial decline. The stock gyrated between Rs. 921.10 and Rs. 947.45 so far during the day. Reportedly RIL is working on a pricing formula for coal bed methane from three blocks in Sohagpur (east and west) and Sonhat in Madhya Pradesh, prior to asking government approval. The government is now insisting on its power to set the price for any gas produced by private companies. Reports added that RIL is discussing the pricing issue with some power and fertiliser companies and will take it to the government once it arrives on a price.
India's largest oil exploration firm by sales ONGC plunged 5.78% on high volume of 18.31 lakh shares on reports the government has increased upstream share to 38.5% of total subsidy burden of about Rs. 77922 crore for the year ended March 2011 (FY 2011). Upstream companies will have to bear burden of Rs. 30,000 crore in FY 2011, reports added. Another state run upstream oil firm Oil India slumped 4.65%.
Software firms rose after the rupee fell to its lowest in two months against the dollar on Monday. The partially convertible rupee ended at 45.1550/1650 per dollar on Monday after falling to 45.18 in intraday trade -- its weakest since 17 March 2011. A weak rupee boosts revenue of IT firms in rupee terms as the sector derives a lion's share of revenue from exports. India's second largest software services exporter Infosys rose 0.29%. India's largest software services exporter TCS gained 1.08%. India's third largest software exporter Wipro shed 0.78%.
Interest rate sensitive realty stocks declined on worries higher interest rates could dent demand for residential and commercial property. Purchases of both residential and commercial property are largely driven by finance. Ackruti City, DLF, HDIL and Unitech fell by between 0.02% to 1.34%.
India's largest cigarette maker by sales ITC rose 1.69% on expectations of good Q4 results. The company unveils its Q4 March 2011 result on 20 May 2011.
Among other FMCG stocks, Dabur India, Hindustan Unilever, United Spirits and Britannia Industries rose by between 0.17% to 3.94%.
State-run Steel Authority of India declined 3.12% after media reports quoted company's chairman C. S. Verma as saying that the company will likely launch its follow-on public offer share sale by 14 June 2011, after the board of directors of the steel maker finalise the draft prospectus early next week.
Foreign institutional investors (FIIs) bought shares worth Rs. 47.07 crore and domestic funds bought shares worth Rs. 3.41 crore on Monday, 16 May 2011 as per provisional figures released by the stock exchanges.
The corporate results announced so far have been good. The combined net profit of a total of 1982 companies rose 17.5% to Rs. 58824 crore on 22.6% rise in sales to Rs. 607395 crore in the quarter ended March 2011 over the quarter ended March 2010.
On the macro front, the wholesale price index (WPI) rose an annual 8.66% in April 2011, lower than the upwardly revised annual rise of 9.04% in March 2011, government data showed on Monday. The government also revised upwards inflation rate for February 2011 to 9.54% from provisional rise of 8.31% reported earlier.
State-run oil marketing companies hiked petrol rates by a steep Rs. 5 per litre effective midnight Saturday. Reports on Sunday indicated that Finance minister Pranab Mukherjee will head a ministerial panel to decide on raising diesel, LPG and kerosene prices later this week. If diesel price is hiked, it could further stoke inflationary pressure in the economy -- diesel being a key transportation fuel. The Reserve Bank of India (RBI) at its annual 2011-2012 monetary policy review on 3 May 2011, said it will continue with its anti-inflationary stance. Short-term sacrifices in economic growth will have to be made to rein in surging prices, the central bank said.
Asian stocks declined in volatile trade. The key benchmark indices in South Korea, Taiwan and Hong Kong fell by between 0.08% to 0.86%. The key benchmark indices in Japan and China were up 0.09% and 0.13% respectively. Markets in Singapore and Indonesia were closed for a public holiday.
Trading in US index futures indicated that Dow could rise 10 points at the opening bell on Tuesday, 17 May 2011.
US crude futures were down 39 cents or 0.4% at $96.98 a barrel on Tuesday. India imports majority of its crude oil requirements and high oil prices have raised concerns about widening current account deficit (CAD). High oil prices have also raised concerns about higher oil subsidy bill for the government and its negative impact on the government's fiscal position.
