Sensex plunges 224 points

The market witnessed a complete trend reversal today. It started declining sharply since mid-afternoon trade on intense selling pressure at higher levels, after European indices opened weak and Asian indices also started coming off their highs. Earlier, trading had resumed on an optimistic note today, 9 August 2007, on string buying demand for index pivotals, tracking firm US markets overnight.

The BSE 30-share Sensex was down 224.02 points to 15,083.96, as per provisional closing. It opened with a 144.46-point upward gap at 15,452.44 and cruised ahead to hit a high of 15,542.40, at 10:31 IST. It slipped to a low of 15,062.10 at 15:06 IST.

It oscillated 480.10 points for the day

The S&P CNX Nifty lost 61.60 points to 4,400.50, as per provisional closing.

All the European markets were trading lower today, 9 August 2007 as BNP Paribas suspended redemptions from three funds citing problems in US subprime mortgages. The news came just at a time when worries about global credit problems arising from US subprime mortgatge woes appeared to be easing.

The market breadth which was strong till mid-afternoon trade on BSE turned negative, as small-cap and mid-cap stocks succumbed to selling pressure: 1,660 shares declined as compared to 1,065 that advanced, while 51 remained unchanged

The total turnover on BSE amounted to Rs 5036 crore as compared to Rs 3891 crore by 14:30 IST

Among the 30-member Sensex pack, 23 declined while the rest advanced.

India’s biggest aluminium company Hindalco Industries slipped 3.77% to Rs 155.75 on 8.72 lakh shares. It was the top loser from Sensex pack

IT shares declined after a sharp rally yesterday, 8 August 2007 after the government on Tuesday, 7 August 2007, tightened external commercial borrowing (ECB) norms. Infosys Technologies (down 1.83% to Rs 1931.50), Satyam Computers (down 2.77% to Rs 466) and TCS (down 1.10% to Rs 1141), slipped. The Indian rupee was trading at 40.51 against the US dollar.

India’s leading power equipment maker Bharat Heavy Electricals was up 1.26% to Rs 1734, off its days high of Rs 1786. The stock surged after it bagged a contract worth Rs 2900 crore for building three 500-megawatt units in north India. It was the top gainer from the Sensex pack.

Pharma shares Cipla (up 0.67% to Rs 187.55), and Dr Reddy’s Laboratories (up 1.23% to Rs 638) gained, as they are considered as defensive shares in falling market.

ICICI Bank, the country’s largest private sector bank in terms of net profit, rose 0.37% to Rs 887.10, on reports that the Foreign Investment Promotion Board (FIPB) is expected to reconsider the much-discussed proposal of infusion of foreign funds into its holding company at its next meeting on 17 August 2007. The came off a session's high of Rs 919.80

SBI (down 3.57% to Rs 1645) and Reliance Energy (down 3.59% to Rs 755) were the other losers from the Sensex pack.

India’s largest private sector enterprise Reliance Industries (RIL) lost 1.91% to Rs 1839.80 on 10.55 lakh shares. RIL is understood to be keen on picking up a stake in the proposed 4,00,000-barrel-a-day Jizan refinery project in Saudi Arabia.

Omaxe was trading at Rs 349.95 on BSE, a premium of 12.90% over IPO price of Rs 310. The stock debuted at Rs 400 on BSE. The stock had hit a low of Rs 341.50 and high of Rs 410 during the day. On BSE, 1.20 crore shares changed hands in the counter. The IPO of Omxe had received strong investor response. It was subscribed 68 times. The company had priced the IPO at the top end of the Rs 265 to Rs 310 price band. The National Stock Exchange (NSE) has included Omaxe in futures & options (F&O) segment. The lot size of Omaxe in F&O is set at 650.

Asian markets eased from higher levels today, 9 August 2007. Nikkei (up 0.83% to 17,170.60), Taiwan Weighted (up 0.91% at 9,182.60) and South Korea's Seoul Composite (up 0.28% at 1,908.68) gained.

Hong Kong's Hang Seng lost 0.43% at 22,439.39. It came sharply off higher level.

Shanghai Composite advanced 1.95% to 4,754.09, after hitting an all time high of 4,768.88.

US stocks surged yesterday, 8 August 2007, as solid results in the technology arena and renewed demand for risky debt soothed investors a day after the Federal Reserve said the economy should keep expanding. The Dow Jones Industrial Average rose 153.56 points, or 1.14%, to 13,657.86. The Standard & Poor's 500 index rose 20.78 points, or 1.41%, to 1,497.49. The S&P has had its biggest three-day point gain since October 2002. The technology-dominated Nasdaq Composite index advanced 51.38 points, or 2.01%, to 2,612.98.

As per provisional data, foreign institutional investors (FIIs) bought shares worth a net Rs 86.96 crore, while domestic institutional investors (DIIs) were net buyers of shares worth Rs 216.43 crore on Wednesday, 8 August 2007.

Crude prices continued to hover around the $72 mark on signs that US gasoline demand may have peaked as the summer driving season neared close. It was trading at $72.33, up $0.18, on the Nymex in early morning trade.
source:
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