Money on the markets

Banking index slides for 4th day in a row

The BSE Sensex closed 2.28 percent lower on Friday, extending losses for the week to 3.25 percent.

Leading financial stocks like ICICI Bank and SBI pulled the Banking Index down, which registered a drop of nearly 4 percent – its 4th fall this week.

The banking sector has seen an upsurge of almost 53 percent for the period December 31, 2008 to August 6, 2009.

Correspondingly, there has been an increase in Sensex heavyweights like ICICI Bank, which has gained over 70 percent, and SBI which has seen a growth of almost 40 percent over the same period.

The recent decline in banking stocks poses a concern. It could well be attributed to heavy selling by FIIs in almost all counters today.

Data from SEBI shows FIIs sold a net of $51.8 million on August 7 vs $100.8 million in the previous session. Rising NPAs, slow loan growth, central bank guidelines on reducing interest rates (thus resulting in reduced spread) and access to outside markets with competitive rates, all indicate reduced margins for banks.

Over the past few months, we have seen a record number of companies taking the equity route of QIP (qualified institutional placement) as a better means of raising funds than approaching banks for the same.

Sensex range bound in choppy trade

The Sensex remained volatile in trade and ended 0.08 percent lower on fears of a fall in corporate earnings for the June quarter.

IT bellwether Infosys Technologies, will kick off the earnings season on Friday.

The rupee weakened to 49/dollar, its weakest since May 18. It was down 2.2 percent on week early in opening trade.

The Wholesale Price Index fell 1.55 percent, with the primary and food article indices gaining and the fuel index remained unchanged. Manufacturing, however, slipped 0.1 pct.

The 30-share sensitive index swung from an intra-day high of 13,879 to an intra-day low of 13,643 and closed 11 points lower at 13,757. The fifty-share Nifty ended 0.05 percent higher at 4080.

On the sectoral front, the BSE Consumer Durable Index dropped 1.4 percent, followed by the Capital Goods Index which ended 1.07 percent lower. However, the BSE Metal Index closed 1.53 percent higher.

FIIs bought net $158.5 million in shares and sold $3.6 million in debt.

Sensex ends flat after recovering early losses

The BSE Sensex erased early losses to end flat, tracking global markets as concerns about the prospects for an economic recovery pushed key indices into negative territory. The market remained volatile ahead of the expiry of the current months derivative contract on Thursday. The rise in the benchmark was led by Reliance Industries, HDFC, BHEL and ONGC.

The 30-share sensitive index swung from an intra-day high of 14,394 to an intra-day low of 14,016 and closed 2.1 points lower at 14,324. The fifty-share Nifty ended 0.28 percent up at 4,247.

On the sectoral front, the BSE Banking Index dropped 2.1 percent, followed by the Metal Index which ended 1.5 percent lower. However, the BSE Oil & Gas Index closed 2.6 percent higher.

Great Offshore Ltd rose 7.9 percent to 413.60 rupees after shipbuilder ABG Shipyard offered to buy a stake in the firm at 375 rupees per share, countering a bid of 344 rupees by rival Bharati Shipyard.

FIIs sold net $40.7 million in shares and bought $51.7 million in debt.

Do you think the current sell-off will continue as renewed fears of economic recovery have made investors risk-averse?

Sensex slips on profit-booking

The BSE Sensex came under heavy selling pressure as investors booked profits in a market that has risen 80 percent since early March.

The 30-share sensitive index swung from an intra-day high of 14,668 to an intra-day low of 14,269 and closed 195 points lower at 14,326. The fifty-share Nifty ended 1.8 percent down at 4,235.

The fall in the benchmark was led by Reliance Industries, Bharti Airtel, Tata Power and NTPC.

On the sectoral front, the BSE Oil & Gas Index dropped 3.3 percent, followed by the Power Index which ended 2.4 percent lower. However, the BSE FMCG Index closed 0.49 percent higher.

On the global front, Asian markets rose on Monday while European markets traded weak. Oil was trading below $69 a barrel, pressured by a stronger dollar. A strong dollar can limit the demand for oil and commodities.

FIIs sold net $5.4 million in shares and bought $21.8 million in debt.

Sensex slips 1.7 pct; WPI slips to 30-year low

The BSE Sensex traded weak on Thursday as investors continued to book profits after it surged nearly 80 percent since early March.

The 30-share sensitive index swung from an intra-day high of 14,631 to an intra-day low of 14,188, and closed 257 points lower at 14,266. The fifty-share Nifty ended 2.4 percent down at 4251.

The fall in the benchmark was led by L&T, ICICI Bank, ONGC and Reliance Industries.

On the sectoral front, the BSE Realty Index dropped 5.8 percent, followed by the Metal Index which ended 4.8 percent lower. However, BSE IT Index closed 0.17 percent higher.

WPI fell 1.61 percent in early June on an annual basis for the first time in three decades.

FIIs sold net $47.3 million in shares and $7.5 million in debt.

Do you think the current sell off will continue on Friday? Will the Sensex slip below the 14,000 mark?

Sensex gains in choppy trade

The stock market was choppy today as slipping Asian stocks and weak U.S. manufacturing data sparked profit-taking.

Asian stocks fell for a second day after weak U.S. factory data and news of record job losses in Europe raised concerns about the world economy.

The 30-share sensitive index swung from an intra-day high of 15,022 to an intra-day low of 14,621, and finally closed 82 points higher at 14,957. The fifty-share Nifty ended 0.75 percent up at 4517.

Higher advance tax payments (which indicate improved earnings) from top companies such as Reliance Industries and SBI also aided the Sensex’s intra-day recovery.

On the sectoral front, the BSE Banking Index gained 2.26 percent, followed by the Power Index which ended 1.92 percent higher. The BSE Oil & Gas Index ended lower at 0.98 percent.

FIIs sold net $44.5 million in shares and $34.5 million in debt.

Sensex closes above 15000

The BSE Sensex seesawed today, erasing early losses of as much as 1.8 percent, and finally closed above the 15,000 mark on hopes of a revival in the economy. Higher European markets also helped lift investor sentiments.

The 30-share sensitive index of the Bombay Stock Exchange swung from an intra-day low of 14,601 to an intra-day high of 15,026, and finally closed 137 points up at 15,008. The fifty-share Nifty ended 0.93 percent up at 4572.

The main contributors to the benchmark’s rise were L&T, ICICI Bank, HDFC and Bharti Airtel.

The BSE Mid-Cap index continued its rally gaining 2.26 percent, while the BSE Small-cap index was up 2.23 percent.

On the sectoral front, the BSE Realty index was up 3.29 percent, followed by the Capital Goods Index which ended 3.23 percent lower. The BSE Metal Index, however, ended 2.1 percent lower.

FIIs sold net $67.5 million in shares and bought $46.6 million in debt.

Data released today showed that inflation rose 0.48 percent in the 12 months to May 23, lower than previous week’s annual rise of 0.61 percent.

To 15,000 and back

The Sensex topped 15,000 points during trade on Wednesday for the first time in nine months, but lost steam and closed at 14,870 as investors booked profits.

The 30-share sensitive index swung from an intra-day high of 15,045 to an intra-day low of 14,734, and finally closed 4 points down. The fifty-share Nifty ended 0.12 percent higher at 4530.

Profit-booking was seen mainly in Reliance Industries, Infosys and SBI. 

On the sectoral front, the BSE Banking Index shed 1.2 percent, followed by the IT Index which ended 1percent lower, mainly due to rise in the rupee. The BSE Consumer Durable Index, however, ended higher at 4.04 percent.

FIIs bought net $44.4 million in shares and $374.7 million in debt. Aggressive buying of Indian stocks by FIIs has kept investor sentiments upbeat. Their total inflow in calendar year 2009 totalled $4554.6 million.

Sustained buying by foreign funds, improving global and domestic economic data, and the prospect of having a stable government have all contributed to the recent rally. With the UPA government comfortably placed without the support of the Left, investors as well as corporates are hopeful of major divestment plans and tax breaks form the government.

Do you think the Sensex will close above the 15,000 psychological level tomorrow, or will there be more profit booking?

Sensex falls as post-poll euphoria begins to fade

The stock market was volatile today as profit taking continued for the second day after a two-day post election rally. Weak Asian markets too weighed on investor sentiments.

The Sensex moved mostly in negative territory throughout trade, turning positive briefly after touching an intra-day low of 13,704.43 points and then shifted back to the red. The benchmark closed 324.12 points down at 13,736.54, while the Nifty ended 59.40 points lower at 4,210.90. The main contributors to the benchmark’s fall were L&T, ICICI Bank, HDFC and Reliance Industries.

On the sectoral front, the BSE Capital Goods Index dropped 5.4 percent, followed by the Banking Index which ended 2.9 percent lower. The BSE Public Sector Undertaking Index, however, ended higher at 2.7 percent.

FIIs sold net $49.10 million in shares.

Oil stocks gained on account of higher crude prices which is now hovering above $60 a barrel. The realty sector fell on account profit taking, but the outlook remains robust as the new UPA government is likely to focus on investments in infrastructure to boost economic activity.

Data showed inflation has risen to 0.61 percent on account of higher food and metal prices in the 12 months to May 9.

Do you think the formation of the new government will infuse confidence among investors and help the Sensex cut losses?

Reliance Industries lead Sensex fall

The stock market was choppy today amid mixed cues from global markets. The benchmark opened 0.5 pct down and slipped further in the day as heavy volumes and signs of resistance saw investors booking profits instead of buying.

The Sensex touched an intra-day low of 13,976.49points and finally closed 241.37 points down at 14,060.66 The Nifty ended 48.15 points lower at 4,270.30.

The main contributors to the benchmark’s fall were ICICI Bank, Reliance Industries and Bharti Airtel.

On the sectoral front, the BSE Banking Index dropped 2.4 percent, followed by the Oil & Gas Index which ended 2.09 percent lower. The BSE Consumer Durable Index, however, ended higher at 9.69 percent.

FIIs bought net $1062.3 million in shares and $3.3 million in debt. Foreign funds have pumped about $4 billion into the market so far this year, pushing the market up by almost half from the year’s low in early March.

Do you think the market will remain choppy tomorrow or will it gain momentum as the Congress-led coalition finalises its plans for the formation of a new government?