Money on the markets

LIVE BLOG: Sensex, global markets tumble

Sensex slips below 15,000; Wipro drops

The BSE Sensex erased early morning gains of over 2 percent and ended 1.46 percent down on Wednesday as weak sentiments across Asia downplayed investor sentiments.

The 30-share sensitive index swung from an intra-day high of 15,369 to an intra-day low of 14,786 and closed 219 points lower at 14,843.

The fifty-share Nifty ended 1.57 percent down to 4398.

IT and capital goods stocks saw some heavy selling while most of the other sectors pared their early gains.

On the sectoral front, the BSE Capital Goods Index dropped 1.87 percent, followed by the Auto Index which ended 1.61 percent lower. All other indices ended the day in the red.

Wipro Ltd beat estimates with a 13 percent rise in quarterly profit but joined its bigger rivals in giving a cautious forecast due to uncertainty in the global economy.

Shares in Wipro ended 1.52 percent lower at 451 rupees on the muted outlook.

Sensex, Nifty rally; Satyam falls

The Sensex closed 4.9 percent higher on Friday to post its biggest rise in three months, as investor confidence was bolstered by a jump in other Asian markets following positive news from the United States.

The benchmark closed 412.86 points up at 8756.61, supported by index heavyweights Reliance Industries (up 6.6percent), ICICI Bank (up 8.6 percent) and Infosys (up 5.6 percent).

Financial stocks across the world were boosted after Bank of America Chief Executive Kenneth Lewis said the largest U.S. bank was profitable in January and February

The BSE Realty Index was the frontrunner, closing 7.57 percent higher on hopes of a rise in demand for housing if there is a further rate cut.

Shares in Unitech, Indiabulls Real Estate, HDIL, DLF were up in the range of 5-12 percent.

There was good news for Satyam with investment banking sources saying about eight potential bidders had registered with Satyam to buy a 51 percent stake in the fraud-hit outsourcer.

Despite this, shares in Satyam closed 3.6 percent lower at 45.5 rupees.

Sensex snaps 2-day fall; expiry watched

After gaining nearly 2 percent during trade, the benchmark index pared gains and closed just 80.5 points higher at 8902, as cuts in factory gate duty and service tax triggered short covering ahead of the expiry of monthly derivatives contracts. The day belonged to auto and metal stocks, which appeared attractive on expectation the duty cuts on Tuesday will boost sales.

The BSE Auto Index closed 3 percent higher and the BSE Metal Index ended 1.2 percent up. Apollo Tyres, Tata Motors (trucks) and Ashok Leyland have slashed prices after yesterday’s announcement.

Banking stocks were firm on renewed hopes of an interest rate cut by the Reserve Bank soon. ICICI Bank, Karnataka Bank and Yes Bank were up in the range 1-2.68 percent.

Fraud-hit Satyam Computer Services rose nearly 3 percent to close at 45.05 rupees. SEBI has eased the norms for preferential allotment of shares by some companies, a move that should help Satyam find a strategic investor.

In the U.S., Federal Reserve Chairman Ben Bernanke on Tuesday said nationalization of big U.S. banks not at hand, bringing cheer to the market.

The slashing of factory gate duties and service tax appears to have driven the market up, but do you think the Sensex will be able to sustain the uptrend throughout the week, or will we see some volatility till the expiry of monthly derivatives?

Less profit is not loss

The times they are a changin’, and indeed they have. For better or for worse, I am not sure, but what has changed is the way we look at making money from money.

Call it what you may — credit crisis, crisis of confidence, financial tsunami, meltdown — erosion of wealth is never good news. And rattled markets often lead to political turmoil and even shift in power.