US markets declined yesterday, 5 May 2008, with financial shares facing the maximum brunt on fears of Bank of America Corp likely to abandon its deal to buy Countrywide Financial Corp. However, Bank of America said after the closing bell that it remained committed to acquiring Countrywide.
Most of the Asian markets recovered after trading negative in early trades. Key indices in Singapore, South Korea, Hong Kong and Taiwan were up 0.05% to 0.58%. However, China's Shanghai Composite was down 0.13%. Japanese markets are closed today on account of holiday.
At 12:20 IST, the 30-share BSE Sensex was down 117.20 points or 0.67% at 17,373.70. The index lost 151.38 points at day’s low of 17,339.52, hit in mid-morning trade. Sensex gained 11.25 points at day’s high of 17,502.15, hit at the onset of trading session.
The broader based S&P CNX Nifty was down 29 points or 0.56% at 5163.25.
The market breadth was negative on BSE with 992 shares advancing as compared to 1451 stocks that declined. 74 stocks remained unchanged.
The BSE Mid-Cap index fell 0.28% to 7,278.90 and BSE Small-Cap index fell 0.32% to 8,817.23.
India’s largest private sector firm by market capitalisation and oil refiner Reliance Industries fell 0.36% at Rs 2,656.
India’s top listed cellular service provider by market share Bharti Airtel slipped 3.46% to Rs 863.95. Bharti Airtel has reportedly bid for 51% of South African telecommunications group MTN. According to reports, Bharti had tabled a bid for MTN at 165 rand per share and had secured $12 billion from banks to finance the deal, which would make Bharti a top player in emerging markets telecoms.
The BSE Bankex was up 0.08% to 9,137.75. Indian Overseas Bank (up 3.38% at Rs 153.10), Oriental bank of Commerce (up 1.81% at Rs 225.50), Union Bank of India (1.69% at Rs 171.60), Bank of Baroda (up 1.36% at Rs 324.40), and HDFC Bank (up 0.73% at Rs 1,541), moved up.
India’s largest private sector bank by assets ICICI Bank fell 0.36% to Rs 929.80.
The BSE Metal index was up 0.96% at 16,039.27. Hindustan Zinc (up 3.22% at Rs 650), Sterlite Industries (up 2.98% at Rs 845.30), Tata Steel (up 1.49% at Rs 814.50), Maharastra Seamless (up 0.92% at Rs 329.05), Steel Authority of India (up 0.66% at Rs 183.15) and Hindalco Industries (up 0.30% at Rs 184), gained.
The BSE Power index was down 0.89% at 3,358.45. Reliance Infrastructure (down 2.93% at Rs 1,472.50), Tata Power (down 2.84% at Rs 1,354.70), GMR Infrastructure (down 2.74% at Rs 161.70), Torrent Power (down 1.08% at Rs 137.40), CESC (down 1.04% at Rs 475.05) and NTPC (down 0.65% at Rs 197.20), slipped.
Polyester filament yarn maker Century Enka plunged 5.18% to Rs 121.65 after the company reported net loss of Rs 0.89 crore in Q4 March 2008 as compared to net profit of Rs 1.38 crore in Q4 March 2007. Total income rose 31.50% to Rs 326 crore in Q4 March 2008 over Q4 March 2007.
Civil construction firm Unity Infraprojects rose 2.17% to Rs 613.35 after the company said it secured two orders aggregating Rs 222.54 crore.
State-run lender UCO Bank jumped 4.48% to Rs 52.45 on reports the bank would raise Rs 325 crore through an equity issue in June 2008, and convert government equity worth Rs 300 crore into preference shares.
Steel maker JSW Steel fell 2.49% to Rs 876.30 on reports the firm will moderate any price hike this year and raise capacity to offset pressure on margins.
Civil construction firm Patel Engineering rose 1.72% to Rs 606.05 after its unit's joint venture in the United States received a dam reconstruction contract worth $280 million. The stock had earlier touched a high of Rs 632.
The Dow Jones industrial average fell 88.66 points, or 0.68%, to 12,969.54 on Monday, 5 May 2008. The Nasdaq Composite index fell 12.87 points, or 0.52%, to 2,464.12. The S&P 500 fell 6 points to 1,407.
Back home, the 30-share BSE Sensex fell 109.22 points or 0.62% at 17,490.90 while the broader based S&P CNX Nifty slipped 35.95 points or 0.69% at 5192.25, on Monday, 5 May 2008.
As per provisional data, foreign funds sold shares worth a net Rs 236.81 crore yesterday, 5 May 2008. Domestic funds bought shares worth a net Rs 457.16 crore on that day.
Foreign institutional investors (FIIs) were net sellers of Rs 89.70 crore in the futures & options segment yesterday, 5 May 2008. They were net sellers of index futures to the tune of Rs 200.56 crore and bought index options worth Rs 382.48 crore. They were net sellers of stock futures to the tune of Rs 232.22 crore and sold stock options worth Rs 39.39 crore.
Meanwhile, in a move that will help stock market investors and brokers use their margin funds efficiently, the Securities and Exchange Board of India (Sebi) on Monday, 5 May 2008, approved cross-margining across cash and derivatives segments. The Sebi circular also said that near-month stock futures positions would not be considered for cross-margin benefit three days prior to expiry (the last Thursday of every month).
The asset base of the mutual fund industry increased by 7.32% during the month of April 2008. The mutual fund industry now has Rs 5,67,601.98 crore of assets under management.