Friday Closing Report: Between a stock and a hard place

Global economic concerns and pressures from institutional investors led the Indian market lower for the second day in a row. The recent rally was due for a correction and investors made use of the opportunity to book profits.

The market opened sideways in the absence of supportive global cues. It touched an early high but slipped into the negative terrain amid choppy trade. The indices emerged above the neutral line in mid-morning trade only to slip once again on profit booking after the recent rally. The picture turned bleaker in the post-noon session with the market touching its intraday low. It pared some of the losses and closed marginally lower, down for the second day in a row.

The Sensex closed 65.06 points (0.32%) lower at 20,250. The index swung between a high-low of 20,409 and 20,145, respectively. The Nifty settled at 6,103, down 16.85 points (0.28%), after touching a high of 6,148 and 6,067 during trade today.

The losers outnumbered the gainers in today’s session. The Sensex ended with 20 decliners against 10 gainers and the Nifty had 31 stocks in the red compared to 19 on the advancing side. Among the broader indices, the BSE Mid-cap index declined 0.47% and the BSE Mid-cap index shed 0.28%.

The top performers on the Sensex were Cipla (up 1.74%), Hindalco Industries (up 1.32%), Reliance Communications (RCom) (up 1.26%), Wipro (up 0.98%) and Reliance Industries (RIL) (up 0.94%). The main losers on the index were Tata Steel (down 3.48%), Mahindra & Mahindra (M&M) (down 2.74%), Jaiprakash Associates (down 2.30%), Tata Motors (down 1.90%) and Oil & Natural Gas Corporation (ONGC) (down 1.66%).

The sectoral gainers included BSE Healthcare (HC) (up 0.82%), BSE IT (up 0.37%) and BSE Oil & Gas (up 0.22%). BSE Metal (down 1.49%), BSE Auto (down 1.30%) and BSE Consumer Durables (down 1.08%).

Domestic passenger car sales jumped by 30.38% to 1,69,082 units in September, compared to 1,29,684 units in the corresponding month last year. This was the best performance by any category in the auto sector last month.

According to numbers from the Society of Indian Automobile Manufacturers (SIAM) released today, total vehicle sales across all categories registered a growth of 21.63% at 13,29,086 units in September, as against 10,92,687 units in the month a year ago.

Asian markets closed mostly in the red on concerns about corporate earnings. However, Chinese and Hong Kong markets ended on a positive note following news that Moody’s Investor Services is likely to upgrade China’s government bond rating. However, caution prevailed ahead of the US jobs data to be released later today.

The Jakarta Composite tanked 1.09%, Nikkei 225 tumble 0.99%, Straits Times declined 0.42%, Seoul Composite was down 0.20% and Taiwan Weighted shed 0.48%. On the brighter side, Shanghai Composite jumped 3.13% Hang Seng added 0.26%.

Union finance minister Pranab Mukherjee is hopeful that the steps taken by the government and the Reserve Bank of India (RBI) would bring inflation down to 6% by the end of this financial year.

The finance minister expressed his concern over inflationary pressures on food items. "We have taken steps to improve the supply side by easing import of food items that are in short supply," he said. Mr Mukherjee is in Washington for the annual meeting of the International Monetary Fund and the World Bank.

The US market closed lower on Thursday on concerns that corporate earnings might not match analysts’ expectations and monthly jobs data, due later today, might disappoint. Meanwhile, initial jobless claims fell by 11,000 to 445,000 in the week ended 2nd October, the fewest since 10th July. On the corporate front, Alcoa Inc., the biggest US aluminium producer, reported third-quarter profit excluding certain items of 9 cents a share. The stock slipped 1.4% before the results were released.

The Dow fell 19.07 points (0.17%) to 10,948. The S&P 500 dipped 1.91 points (0.16%) to 1,158.On the other hand, the Nasdaq added 3.01 points (0.13%) to 2,383.

Buying by foreign institutional investors (FIIs) was almost negated by selling by domestic institutional investors (DIIs) yesterday. FIIs were net buyers of stocks worth Rs1,183 crore while DIIs were net sellers of equities worth Rs1,193 crore.

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COMMENTS

ErSS Hari

7 years ago

DIIs selling is aggressive but party has been started by FIIs ETFs they will encourage downside to be aggressive buyers again at one stroke.They sense the Govt view and till current A/C situation does not improve FIIs are going to stay.Option writers to be beware again.Now strategies may be formulated around 15 oct when results start pouring in.

Mahindra advances FCCBs redemption period

New Delhi: Mahindra & Mahindra (M&M) said today that it has advanced the period for redeeming the outstanding Foreign Currency Convertible Bonds (FCCBs) worth $141.2 million to this year from the earlier 14 April 2011, reports PTI.

"M&M today issued a notice for early redemption of its outstanding FCCBs of $141.2 million and setting the last date for conversion of FCCBs into shares/GDRs to 29 October 2010, and the balance outstanding FCCBs after conversion, if any, will be redeemed on 8 November 2010," the company informed the Bombay Stock Exchange (BSE).

The utility vehicle manufacturer had issued FCCBs worth $200 million in April 2006, each with a face value of $1,00,000. Out of the total issue, the company bought back bonds worth $10.5 million, while FCCBs worth $48.3 were converted into shares/GDRs during the last three months.

"In the last 12 weeks, the bonds have started converting, as they are in the money by a huge margin. We trust, that given the current market price, the bond holders would find it valuable to convert their holding into M&M shares/GDRs," executive director and group CFO Bharat Doshi said.

M&M had decided the conversion price at Rs461.02 a share with a fixed exchange rate of Rs44.42 a dollar. The company has the right to call the bond after two years if the share price is more than 120 per cent of the conversion price for a consecutive 30 trading days. "The company's share price has been trading consistently higher than 120 per cent for the last 12 weeks and currently the share price of the company is Rs725.70 and the $/Rs is 44.30," the company said in the statement to the BSE.

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Nagarjuna Agrichem sets up three wind turbine generators in Tirunelveli

Pesticides manufacturer Nagarjuna Agrichem Ltd said it installed three wind turbine generators of 2.1 MW each in Tirunelveli District, Tamil Nadu.

The project cost is about Rs34 crore. The company said it expects to generate around 46 lakh kWh/PA per wind turbine generator.

On Friday, Nagarjuna Agrichem shares ended 0.7% at Rs213 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.3% to 20,250 points.

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COMMENTS

THANGAM

7 years ago

i am working LM.Wind Power Blades india PVT.Bangalore. i have 3year 6 month EXP.in production Department. i want job in other company.

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