RTTNews - Friday, weekend profit taking dragged the Indian market down modestly, but on a weekly basis, the benchmark Sensex ended up for the 14th straight week, the longest stretch of gains in four years. Earlier in the day, the market was trading higher before slipping into the red after the announcement of better-than-expected April industrial output data.
In what could be termed as nascent signs of recovery, India's industrial growth expanded 1.4 percent in April after showing contraction in three of the previous four months, government data showed on Friday. The index of industrial production(IIP) was better than a forecast for an annual decline of 0.2-0.3% and the revised annual fall of 0.8 percent in March(provisional 2.3 percent contraction). Industrial growth should have certainly bottomed out on a year-over-year basis and an healthy upward trend is likely in coming months, analysts said.
The BSE Sensex opened higher at 15,447 and rose to a high of 15,600 before slipping into the red. The Sensex hit the day's low of 15,174 in late trading before closing at 15,238, down 174 points or 1.13% from its previous close. Likewise, the S&P CNX Nifty fell 54 points or 1.17% to 4,583.
On the BSE, while the broad-based BSE 500 index fell 1.33%, the mid-cap and the small-cap indexes ended down over 2% each. The market breadth was extremely negative. Decliners outnumbered advancers by 2020 to 706 and 48 stocks closed unchanged.
Sector-wise, interest rate sensitive stocks from the realty, auto and banking, consumer durable and capital good stocks led the decliners with over 2% losses after an unexpected rise in industrial output in April and a rise in bond yields to a two-month high on Friday, suggested that the rate cutting cycle will come to an end sooner than later.
However, metal stocks showed notable gains after the LMEX, a gauge of six metals traded on the London Metal Exchange jumped 4.2% on Thursday. The oil & gas index ended up 1.38%, led by market heavyweight Reliance Industries ,which rose 2.48% on firm crude oil price.
Twenty-six out of 30 Sensex stocks ended in the red. Ranbaxy Laboratories(down 6.03%), DLF(down 5.80%), Reliance Communication(down 4.38%), Mahindra & Mahindra(down 3.92%), Tata Motors(down 3.69%), SBI(down 3.49%), Wipro(down 3.14%), Bharti Airtel(down 2.83%) and HDFC(down 2.76%) were the top losers.
LIC Housing Finance tumbled 4.39% amid reports that it raised Rs.4.45 billion by selling 18-month bonds. Everest Kanto Cylinder ended down 0.51% after the company decided to raise Rs.150 crore via share sales or debt through the QIP route/preferential allotment.
Mahindra & Mahindra fell 3.92% after it entered into a agreement to transfer its Land Systems Business forming part of the Mahindra Defence Systems division to Mahindra Defence Land Systems Private, its wholly-owned subsidiary.
Hindustan Oil Exploration declined 2.04% even as its FY09 consolidated net profit more than doubled to Rs 54.48 crore from Rs 25.78 crore in the previous year. Likewise, BHEL ended down 2.45% despite bagging a Rs 4015-crore contract from Hindalco Industries for supplying boilers, turbines and generators at its 900-MW captive power plant in Orissa.
Textile stocks such as S Kumars, Zodiac clothing and Gokaldass exports ended in the green after textiles minister Dayanidhi Maran offered to provide fiscal relief, including service tax exemption to textile exporters reeling under waning global demand.
McNally Bharat Engineering Company rallied 4.01% on receiving a Rs.300-crore contract from Hindustan Zinc. Ciba India plunged 11.55% after it reported a net loss of Rs. 11.90 crore in the March quarter compared to a Rs.2.90 crore net profit in the corresponding quarter last year.
Jubilant Organosys rose 1.36% after its subsidiary Jubilant Biosys signed a three-year drug development deal with US-based pharmaceutical firm Endo Pharmaceuticals. GlaxoSmithKline Consumer Healthcare ended up 0.35% on reports that it plans to extend its Rs 1,200-crore flagship brand Horlicks into newer products over the next 12-18 months.
Wipro fell 3.14% after Azim Premji Foundation and others sold 3 lakh shares of the company in the open market. Honda Siel Power Products lost 2.37% after its FY09 net profit declined 37% to Rs.15.64 crore. Hindustan Zinc jumped 7.85% after the company hiked the prices of zinc and lead to match global rates.
Satyam Computers ended down 0.49% after a 3-day rally. Sesa Goa rallied 5.62% after it has acquired Goa-based Dempo Group's mining assets for Rs 1,750 crore in an all-cash and debt-free deal.
On the BSE, Sesa Goa topped the traded value chart with a total turnover of Rs 462.03 crore followed by Reliance (Rs 266.74 crore), Reliance Capital (Rs 229.93 crore), Tata Steel (Rs 223.81 crore) and Suzlon (Rs 217.79 crore).
Unitech topped the volume chart with trades of 22.71 million followed by Sesa Goa (22.26 million), Ispat Industries (20.24 million), Suzlon (17.68 million) and IFCI (13.75 million).
Elsewhere, the other major Asian markets closed mostly higher, led by Japanese stocks where the Nikkei closed above the 10,000 level for the first time in more than eight months, European stocks were trading marginally weaker on profit taking and U.S. stock futures were treading water Friday morning in New York, with the mood on Wall Street cautious ahead of the latest reading on consumer sentiment, even as evidence pointing towards a turnaround strengthens.
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