Market stays nervous ahead of Fed meet, derivatives expiry

The market edged lower for third straight day in choppy trade tracking weak European and Asian markets. Investors refrained from making fresh commitments ahead of the crucial Federal Open Market Committee (FOMC) meeting on interest rates today, 30 January 2008 and expiry of January 2008 derivative contracts scheduled tomorrow, 31 January 2008.

Reliance Industries, Hindustan Unilever, DLF and Oil & Natural Gas Corporation led the fall. The market breadth was weak. 22 shares from 30-member Sensex pack declined.

The 30-share BSE Sensex slipped 344.98 points or 1.91% at 17746.96. It opened with an upward gap of 28.28 points at 18,120.22 and rose further to touch a high of 18,129.18 in early trade. At the day's high of 18,129.18, the Sensex rose 37.24 points. The barometer index plunged 408.43 points at the day’s low of 17,683.51 hit in mid-afternoon trade.

The broader based S&P CNX Nifty was down 113.20 points or 2.14% at 5167.60. Nifty January 2008 futures were at 5145, a discount of 22.60 points discount over spot closing.

The Union Cabinet today approved easing caps on foreign investment in sectors such as civil aviation, petroleum and natural gas and commodity exchanges, Information and Broadcasting Minister Priyaranjan Dasmunsi said.

The total turnover on BSE was Rs 4042 crore as compared to Rs 4,793.08 crore yesterday, 30 January 2008

Turnover on NSE’s futures & options rose to Rs 57973.91 crore as compared to Rs 56019.95 crore yesterday, 30 January 2008

The market breadth was weak on BSE with 2007 shares declining as compared to 744 that advanced. 39 shares remained unchanged.

The BSE Mid-Cap index was down 2.40% to 7,829.06 while the BSE Small-Cap index was down 2.22% to 10,146.86. Both these indices underperformed the Sensex.

All the sectoral indices on BSE declined. BSE Metal index (down 0.86% to 15,406.33), BSE FMCG index (down 1.76% at 2,166.94), BSE Health Care index (down 0.38% at 3,654.45), BSE IT index (down 0.60% at 3,708.32), BSE TecK index (down 1.30% to 3,277.58), outperformed the Sensex.

BSE Power index (down 2.88% at 3,822.67), BSE Bankex (down 1.98% at 10,899.86), BSE Capital Goods index (down 1.98% at 16,625.91), BSE Realty index (down 2.43% at 10,148.19), BSE PSU index (down 2.52% to 8,247.62), BSE Consumer Durables index (down 2.73% to 5,134.32), BSE Oil & Gas index (down 4.45% at 10,684.56), BSE Auto (down 2.26% at 4,812.46), underperfomed the Sensex

India’s largest private sector power utility company in terms of sales, Reliance Energy plunged 5.48% to Rs 1991.50 on 8.80 lakh shares. It was the top loser from Sensex pack

Shares from auto pack came under selling pressure. India’s second largest bike manufacturer in terms of sales, Bajaj Auto slipped 3.26% to Rs 2301, off day’s low of Rs 2211. Bajaj Auto posted 5.32% fall in net profit to Rs 326.81 crore in Q3 December 2007 over Q3 December 2006.

Other shares from auto pack which declined were Tata Motors (down 3.30% to Rs 692.20), and Maruti Suzuki India (down 1.86% to Rs 841.25).

India’s top tractor maker in terms of sales Mahindra & Mahindra declined 1.52% to Rs 691. It registered 67.6% rise in net profit to Rs 405.15 crore boosted by one-off gain. The company’s sales rose 14.1% to Rs 2,940.15 crore in Q3 December 2007 over Q3 December 2006. The company announced results during market hours today 30 January 2008.

Hindustan Unilever (down 5.19% to Rs 195.50), Reliance Communications (down 4.80% to Rs 612), and Oil & Natural Gas Corporation (down 5.10% to Rs 967), were the other losers from the Sensex pack.

India’s largest private sector firm by market capitalization and oil refiner Reliance Industries (RIL) was down 4.19% to Rs 2467.80. A total of 5.19 lakh shares changed hands on the counter on BSE. The stock had hit a high of Rs 2582 in early trade. As per recent reports RIL plans to foray in engineering, procurement and construction business to clock a turnover of Rs 5,000 crore in first year itself and double it in second year.

India’s largest private sector bank in terms of net profit ICICI Bank slipped 3.05% to Rs 1183.05. The stock moved in a range of Rs 1167.20 and Rs 1225

India’s largest listed real estate developer in terms of land bank DLF slipped 3.31% to Rs 854. The company today posted net profit of Rs 605.84 crore on total income of Rs 1,812.59 crore in Q3 December 2007. The company announced the results during market hours today 30 January 2008

State-run power equipment maker Bharat Heavy Electricals rose 1.36% to Rs 2079.90, and was the top gainer from Sensex pack. The company said on Tuesday, 29 January 008, it will invest Rs 736 crore ($187 million) in upgrading its boiler capacity in southern India by 2009

India’s largest cellular services provider in terms of market capitalisation Bharti Airtel rose 1.20% to Rs 860.50. It posted 36.04% rise in net profit to Rs 1,419.84 crore on 41.46% rise in total income 41.46% to Rs 6,682.57 crore in Q3 December 2007 over Q3 December 2006. The company announced the results during market hours today, 30 January 2008.

National Thermal Power Corporation (NTPC), the country’s largest power generation company in terms of sales, slipped 4.56% to Rs 202. It today announced 15.37% fall in net profit to Rs 1,779.9 crore for Q3 December 2008 over Q3 December 2007.

Tata Steel (up 0.53% to Rs 720), and ACC (up 0.80% to Rs 798), edged higher from the Sensex pack.

India’s largest biggest software services exporter Tata Consultancy Services was down marginally by 0.02% to Rs 863.05. The company said on Wednesday one of its subsidiaries had won a 100 million pounds, or $200 million, outsourcing contract from Sun Life Financial.

Essar Oil was the second most top traded counter on BSE with turnover of Rs 217.55 crore. The stock was down 6.56% to Rs 228.60. On Tuesday, the counter saw high volumes of 1.19 crore shares of which just 5.94% were meant for delivery.

Reliance Natural Resources topped the volume chart clocking total volumes of 1.59 crore shares followed by Ispat Industries (1.05 crore shares), Reliance Petroleum (94.25 lakh shares), Essar Oil (91.50 lakh shares) and Himachal Futuristic Communications (63.40 lakh shares) in that order.

Sun Pharmaceuticals Industries surged 6.80% to Rs 1131 on posting 109.5% rise in net profit to Rs 345.93 crore on 30.90% rise in net sales rose 30.9% to Rs 733.91 crore in Q3 December 2007 over Q3 December 2006. The company announced results during market hours today 30 January 2008.

Asian Paints rose 6.30% to Rs 1171 on reporting 65.3% surge in net profit to Rs 107.69 crore on 29.80% rise in net sales to Rs 916.24 crore in Q3 December 2007 over Q3 December 2006. The results were announced during trading hours on Tuesday, 29 January 2008

Thermax declined 2.96% to Rs 650.20 despite reporting 35.3% rise in net profit to Rs 75.03 crore on 53.70% rise in net sales to Rs 845.43 crore in Q3 December 2007 over Q3 December 2006. The results were announced during trading hours on Tuesday, 29 January 2008

Tata Power Company declined 1.15% to Rs 1297 at 14:18 IST on BSE, on reporting 29.5% fall in net profit to Rs 197.28 crore in Q3 December 2007 over Q3 December 2006. Tata Power Company’s net sales rose 18.2% to Rs 1419.40 crore in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Tuesday, 29 January 2008.

Adani Enterprises fell 2.10% to Rs 881.05 on reporting 226.2% surge in net profit to Rs 120.74 crore on 20.60% rise in net sales rose 20.6% to Rs 3166.42 crore in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Tuesday, 29 January 2008.

Lanco Infratech dropped 10% to Rs 477 despite reporting 91.6% surge in net profit to Rs 38.91 crore on 191% jump in net sales to Rs 382.15 in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Tuesday, 29 January 2008.

Bombay Dyeing & Manufacturing Company slipped 0.30% to Rs 782 despite reporting net loss of Rs 37.01 crore in Q3 December 2007 as compared to net profit of Rs 7.21 crore in Q3 December 2006. Bombay Dyeing & Manufacturing Company’s net sales jumped 173.5% to Rs 291.60 crore in Q3 December 2007 over Q3 December 2006. The results were announced after trading hours on Tuesday, 29 January 2008.

Bartronics India dropped 3.46% to Rs 236 after the company said it has acquired the assets of US based firms Proximities Inc., in Melbourne, Florida and SRG America Inc. headquartered in Iselin, New Jersey, for a total consideration of $50 million.

Eicher Motors rose 2.46% to Rs 290 after company approved transfer of its commercial vehicle division to a new subsidiary.

Dabur India declined 3.41% to Rs 97.65 despite reporting 22.9% rise in net profit to Rs 88.14 crore on 1.5% rise in net sales to Rs 516.44 crore in Q3 December 007 over Q3 December 2006. The results were announced after trading hours on Tuesday, 29 January 2008.

Reliance Natural Resources was the most active counter on BSE with turnover of Rs 223.30 crore. Essar Oil was the second most top traded counter on BSE with turnover of Rs 217.55 crore. Reliance Energy (Rs 178.30 crore), Reliance Petroleum (Rs 155.25 crore) and Reliance Capital (Rs 138.90 crore) were the other turnover toppers in that order.

Third quarter December 2007 results so far have been decent. A total of 1397 companies reported 35.90% rise in net profit on 21.70% rise in net sales for Q3 December 2007 over Q3 December 2006.

European markets, which opened after Indian market, edged lower. Key benchmark indices in United Kingdom (down 0.58% to 5,851.30), Germany (down 0.69% to 6,845.65) and France (down 1.43% to 4,870.56) declined.

Asian markets were trading weak today, 30 January 2008. Hong Kong's Hang Seng (down 2.63% at 23,653.98), Japan's Nikkei (down 0.99% at 13,345.03), Taiwan's Taiwan Weighted (down 0.43% at 7,543.50), South Korea's Seoul Composite (down 2.98% at 1,589.06) and China’s Shanghai Composite (down 0.90% to 4,417.98) declined.

On Tuesday, 29 January 2008, US markets advanced on expectation that the Federal Reserve will slash interest rates in a meeting scheduled on Wednesday, 30 January 2008. The Dow Jones industrial average gained 96.41 points, or 0.78%, to 12,480.30. The Standard & Poor's 500 index advanced 8.34 points, or 0.62%, to 1,362.30,and the Nasdaq Composite rose 8.15 points, or 0.35%, to 2,358.06.

Back home, the Reserve Bank of India (RBI) kept key rates - repo rate, reverse repo rate, bank rate and cash reserve ratio, unchanged at its quarterly monetary policy review announced yesterday, 29 January 2008

Crude oil climbed to a two-week high above $92 a barrel on Wednesday, 30 January 2008 as investors anticipate that a second US interest rate cut this week will overshadow news of a build in US crude stockpiles. US crude rose 75 cents to $92.39 a barrel. London Brent crude were up 57 cents to $92.57 a barrel.