MUMBAI: The key benchmark indices failed to sustain higher level as selling pressure emerged in metal and IT stocks. A muted initial response the follow-on public offer of NMDC weighed on sentiment.
The BSE 30-share Sensex was up 0.27 per cent, coming down significantly from early gains while the wide-based Nifty gained 0.29 per cent at 5117, above the psychologically important 5100 mark. Most Asian stocks rose, reversing initial losses.
On BSE, 1712 shares declined as compared with 1110 that advanced. A total of 83 shares remained unchanged. The breadth was much stronger in opening trade but later it turned weak.
Amongst the sectoral indices, BSE Oil and Gas Index was the top gainer up 0.96 per cent, BSE FMCG Index surged 0.90 per cent and BSE Realty Index went up by 0.61 perr cent. BSE Teck Index (down 0.37 per cent) and BSE Healthcare Index (down 0.34 per cent) were among the losers.
BSE Midcap Index was down 0.10 per cent and BSE Smallcap Index moved 0.21 per cent lower.
Hero Honda Motors (3.06 per cent), ACC (2.42 per cent), Jaiprakash Associates (1.68 per cent) and Housing Development Finance (1.49 per cent) were amongst the Sensex gainers.
Among the 30-member Sensex pack, 16 advanced while the rest slipped. NTPC (down 1.33 per cent), Maruti suzuki (down 1.27 per cent), and Bharti Airtel (down 1.20 per cent), edged lower from the Sensex pack.
Cement stocks gained on recent reports that prices are likely to rise by Rs 5-25 per 50-kg bag. The impeding price hike comes after the finance minister increased the excise duty on cement in the budget to 10 per cent from the earlier 8 per cent, imposed a cess of Rs 50 per tonne on domestic and imported coal and hiked fuel prices, pushing up freight rates for cement companies.
Index heavyweight Reliance Industries (RIL) advanced 1.62 per cent to Rs 1006, moving past the Rs 1000 mark. As per reports, RIL is close to striking hydrocarbon at its Palar deepwater block in the Cauvery basin. In the Palar block, RIL is said to be testing a well. The hydrocarbon success would be known only after testing is completed.
India’s largest bank by net profit and branch network State Bank of India (SBI) fell 0.38 per cent, extending Tuesday’s 1.28 per cent fall. A bill seeking to reduce Centre’s shareholding in the SBI from 55 per cent now to 51 per cent and to allow the bank to raise more capital from the market through preference shares, was introduced in the Lok Sabha on Monday.
Other banking shares saw mixed trend. India’s largest private sector bank by net profit HDFC Bank rose 0.20 per cent . ICICI Bank declined 0.76 per cent to Rs 911.35 and was the top loser from the Sensex pack.
IT stocks declined on profit taking after recent gains triggered by upbeat US jobs data. US is the biggest market for Indian IT firms.
India’s third largest software services exporter by sales Wipro fell 0.43 per cent. India’s second largest software services exporter by sales Infosys slipped 0.90 per cent
But, India’s largest software services exporter by sales Tata Consultancy Services (TCS) gained 1.49 per cent. Reports citing Girja Pande, TCS’s Asia-Pacific chairman indicated that the company hopes to quadruple its market share in Asia outside India within five to seven years.
Telecom pivotals saw divergent trend. India’s largest cellular services provider by sales Bharti Airtel lost 1.03 per cent. As per reports, Bharti Airtel has completed about 60 per cent of its due-diligence of Zain’s African assets.
Zain, Kuwait’s biggest phone company, and Bharti Airtel said on 15 February 2010 that they had entered into exclusive talks under which the Bharti would buy most of Zain’s African assets for $10.7 billion. The exclusive talks will continue until March 25.
The follow-on public offer (FPO) of iron ore miner NMDC was subscribed 9 per cent by 14:00 IST on the first day of the issue today, NSE data showed. The government is divesting 8.38 per cent stake in NMDC through the FPO as a part of its aggressive divestment drive to raise funds in a bid to bring fiscal deficit down. The company’s FPO will close on Friday, 12 March 2010. The price band has been fixed between Rs 300 and 350.
European markets opened lower today, extending fall for the third straight day, weighed by financial shares. Key benchmark indices in UK, Germany and France were down by between 0.07 per cent to 0.16 per cent.
Asian stocks fluctuated as shipping lines and oil companies declined, while Australia’s largest telephone company rose on speculation it will avoid a breakup.The key benchmark indices in South Korea, Japan, Indonesia, Taiwan and Singapore were up by between 0.08 per cent to 0.59 per cent. However, China’s Shanghai Composite declined 0.66 per cent. Hong Kong’s Hang Seng index was unchanged.
US equities ended slightly higher on Tuesday as falling commodity prices pressured materials stocks, offsetting gains in the telecom and industrial sectors. The Dow Jones Industrial Average gained 11.86 points, or 0.11 per cent, to 10,564.38. The Standard & Poor’s 500 Index edged up 1.95 points, or 0.17 per cent, to 1,140.45 and the Nasdaq Composite index rose 8.47 points, or 0.36 per cent, to 2,340.68.
