ITC and Tata Motors slumped on weak Q1 results and were the major losers from the Sensex pack. Metal and power stocks gained. Banking shares were under pressure ahead of the inflation data for 12 months to 19 July 2008 to be released after trading hours today, 31 July 2008. FMCG stocks declined.
The market may remain volatile throughout the day today, 31 July 2008 as futures & options contracts for July 2008 series expire. As per reports, marketwide rollover of positions from July 2008 series to August 2008 series stood at 61%, while that of Nifty was 54%, as of Wednesday 30 July 2008.
At 11:19 IST, the 30-share BSE Sensex was down 20.49 points or 0.18% at 14,262.25. The market had witnessed a bout of volatility at the onset of the trading session. The Sensex opened 72.27 points higher at 14,359.48 and rose further to an intra-day high of 14,360.21 in early trade. At the day's high, the Sensex rose 73 points. At the day’s low of 14,168.79, the Sensex lost 118.42 points in early trade.
The broader based S&P CNX Nifty was down 19.1 points or 0.44% at 4,332.65.
The market breadth was strong on BSE with 1,148 shares advancing as compared to 866 that declined. 61 remained unchanged.
Among the 30-member Sensex pack, 16 declined while the rest gained.
India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) rose 1.44% to Rs 2,194.25.
FMCG stocks fell. India’s largest cigarette maker in terms of sales ITC tumbled 4.47% to Rs 179.40. It was the top loser from Sensex pack. After market hours yesterday, 30 July 2008, the company reported 4% drop in net profit at Rs 748.67 crore on 18% growth in net turnover to Rs 3,900 crore in Q1 June 2008 over Q1 June 2007. The drop in net profit was attributed to the increase in excise duties on non-filter cigarettes in the Union Budget 2008, steep rise in commodity prices and store rentals.
Britannia Industries (down 1.34% to Rs 1,337), Dabur India (down 0.17% to Rs 90.55) and United Breweries (down 1.53% to Rs 154.10) edged lower.
Metal stocks rose. Hindalco Industries (up 1.61% to Rs 142.40), National Aluminum Company (up 1.05% to Rs 442.30), Steel Authority of India (up 0.74%t o Rs 137.05), Sterlite Industries (up 1.69% to Rs 633) and Tata Steel (up 3.01% to Rs 648.60) edged higher.
Power stocks rose. NTPC (up 1.58% to Rs 173.55), Reliance Infrastructure (up 1.77% to Rs 986.30), Reliance Power (up 2.39% to Rs 166.85), Tata Power Company (up 1.19% to Rs 1,128.75) edged higher.
Banking shares were under pressure ahead of the weekly inflation data, which will be released after market hours today, 31 July 2008. State Bank of India (down 1.06% to Rs 1,372), HDFC Bank (down 1.69% to Rs 1074), and ICICI Bank (down 0.99% to Rs 631.50), edged lower from frontline banking pack.
Maruti Suzuki India (down 2.56% to Rs 573.75), Bharti Airtel (down 1.35% to Rs 799.05), Tata Consultancy Services (down 1.11% to Rs 829.25), ACC (down 0.91% to Rs 585.95), Infosys (down 0.89% to Rs 1,588.40) edged lower from Sensex pack.
Wipro (up 3.48% to Rs 437.15), DLF (up 2.54% to Rs 503.15), ONGC (up 1.07% to Rs 1,001.30), Mahindra & Mahindra (up 0.76% to Rs 517.40) edged higher from Sensex pack.
Tata Motors, the country’s top truck manufacturer in terms of sales lost 5.38% to Rs 393.90 after the company reported 30.10% fall in net profit to Rs 326.11 crore on 14.40% rise in net sales to Rs 6928.44 crore in Q1 June 2008 over Q1 June 2007. The company announced the results during trading hours yeserday, 30 July 2008, when the stock had risen 4.91% to Rs 416.30
On the New York Mercantile Exchange, September 2008 crude surged $4.58, or 3.75%, to $126.77 a barrel yesterday, 30 July 2008 after data showed a surprise drawdown in gasoline stocks last week.
Asian markets were trading mixed today, 31 July 2008. Key benchmark indices in China and Taiwan were down by between 0.65% and 1.53%. However, indices in Hong Kong, Japan Singapore and South Korea were up by between 0.44% and 0.98%.
US markets surged yesterday, 30 July 2008 after encouraging jobs data and the central bank's attempts at boosting liquidity in the financial markets offset a surge in oil prices. The Dow Jones jumped 186.13 points, or 1.63%, to 11,583.69. The Standard & Poor's 500 index rose 21.06 points, or 1.67%, to 1,284.26, and the Nasdaq Composite index advanced 10.10 points, or 0.44%, to 2,329.72.
Market regulator, Securities & Exchange Board of India (Sebi) yesterday, 30 July 2008 finalised the guidelines that would allow a retail investor investing in an initial public offering to pay only to the extent of shares allotted to him and not pay 100% upfront advance for shares applied, as is the current norm. The payment system, called Application Supported by Blocked Amount (ASBA), will require retail investors bidding at a cut-off price, to apply through self-certified syndicate banks (SCSBs), in which they have accounts.