Sensex sheds 344 points on weak global cues, higher inflation

The market tumbled today hit by a series of bad news on the domestic and global front. India's inflation surged to more than 3-year high, global markets declined and crude oil hit yet another record high near $125 a barrel.

All the sectoral indices on BSE, barring FMCG index, were in red. Oil & gas, realty and banking stocks declined sharply.

Inflation based on wholesale prices rose 7.61% in the 12 months to 26 April 2008, marginally higher than previous week's annual rise of 7.5%, government data released in early afternoon trade showed.

European markets, which open after Indian markets, were trading sharply lower. Key indices in UK, France and Germay were down by 1.52% to 2.48%. Asian markets, which opened before Indian market, were trading lower. Key indices in China, Hong Kong, Japan, Singapore, South Korea and Taiwan were down by 0.84% to 2.06%.

US stock futures were in the red indicating weak opening on the Wall Street today after the world's largest insurer, American International Group, posted record quarterly losses, and as the oil price hit new high. Dow futures were down 77 points and S&P 500 futures were down 8 points.

The 30-share BSE Sensex lost 343.58 points or 2.01% at 16,737.07. The index shed 401.71 points at day's low of 16,678.94, hit at the fag end of the trading session. Sensex rose 45.3 points at the day's high of 17,125.95, hit in early trade.

The broader based S&P CNX Nifty lost 99.10 points or 1.95% at 4982.60. Nifty May 2008 futures were at 4978, a discount of 4.6 points as compared to spot closing.

As per provisional data, foreign funds sold shares worth a net Rs 619.34 crore today. Domestic funds bought shares worth a net Rs 180.16 crore.

The Sensex declined 863.05 points or 4.90% this week, from 17,600.12 on 2 May 2008.

The market breadth was weak on BSE with 704 shares advancing as compared to 2019 stocks that declined. 61 stocks remained unchanged.

The BSE Mid-Cap index fell 2.25% to 6,992.66 and BSE Small-Cap index fell 2.11% to 8,505.64. Both the indices underperformed the Sensex.

BSE clocked a turnover of Rs 6561 crore as against Rs 5,965.87 crore on Thursday, 8 May 2008. The NSE's futures & options (F&O) segment turnover was Rs 34,951 crore, which was higher than Rs 28,943.79 crore on Wednesday, 7 May 2008.

Top Sensex gainers were, ITC (up 1.51% at Rs 218.30), Wipro (up 0.81% at Rs 501.20), Satyam Computer (up 0.49% at Rs 473.40), Grasim Industries (up 0.35% at Rs 2340), and ONGC (up 0.04% at Rs 1028.80).

India’s biggest cellular service provider by market share Bharti Airtel gained 1.76% to Rs 842.20. Some reports suggested Bharti Airtel may make an offer to acquire MTN Group next week.

Top Sensex losers were, Jaiprakash Associates (down 6.60% at Rs 251.30), Reliance Infrastructure (down 4.45% at Rs 1332.05), ACC (down 4.20% at Rs 712), and Hindalco Industries (down 3.61% at Rs 173.55).

India's largest private sector firm by market capitalisation and oil refiner Reliance Industries (RIL) fell 5.19% at Rs 2527.65.

The BSE Bankex underperformed the Sensex, falling 2.78% to 8,511.65. India’s largest private sector bank by assets ICICI Bank fell 1.94% to Rs 874.05. HDFC Bank (down 3.74% at Rs 1451.95), State Bank of India (down 3.13% at Rs 1675.70) and Housing Development Finance Corporation (down 2.79% at Rs 2644.70), declined.

Private sector lender Kotak Mahindra Bank fell 5.78% to Rs 737.15. Global investment firm Credit Suisse has cut its rating on the stock by 20% to Rs 708 a share.

The BSE Oil & Gas index underperformed the Sensex, falling 4.71% at 11,080.88. Essar Oil (down 10% at Rs 257.15), Reliance Petroleum (down 8.03% at Rs 181.05), Reliance Natural Resources (down 5.86% at Rs 106.80), BPCL (down 2.51% at Rs 374.90), HPCL (down 1.56% at Rs 242.30), and Indian Oil Corporation (down 1.59% at Rs 442.65), slumped.

The BSE Realty index underperformed the Sensex, falling 2.95% to 7,891.10. Housing Development & Infrastructure (down 7.63% at Rs 725.90), Omaxe (down 5.04% at Rs 216.50), Unitech (down 4.59% at Rs 286.55), and DLF (down 2.08% at Rs 630.40), tumbled.

Among the side counters, Spice Communication (down 8.60% at Rs 40.40), Lanco Infratech (down 8.39% at Rs 463.70), Bombay Dyeing (down 7.83% at Rs 906.35), Chennai Petroleum (down 7.79% at Rs 350.80), and Reliance Capital (down 7.04% at Rs 1,287.40), slumped.

Electronic display units maker MIC Electronics rose 0.28% to Rs 905.10 after the firm said its board will meet on 19 May 2008 to consider splitting each share into five.

Train wagon maker Texmaco jumped 4.14% to Rs 1510.55 after the firm said its board would meet on 16 May 2008 to consider a stock split

India’s largest dry cell battery manufacturer by sales Eveready Industries India gained 0.90% to Rs 45.05 after the company reported lower net loss of Rs 8.16 crore in Q4 March 2008 compared to net loss of Rs 26.45 crore in Q4 March 2007. Sales rose 10.40% to Rs 193.20 crore in Q4 March 2008 over Q4 March 2007.

IT firm 3i Infotech fell 0.94% to Rs 125.80. The firm said on Thursday it has acquired 26% stake in Hyderabad-based IT infrastructure services firm Locuz Enterprise Solutions, for an undisclosed sum.

Aishwarya Telecom clocked the highest turnover of Rs 502.20 crore on BSE. Reliance Petroleum (Rs 291.21 crore), Reliance Capital (Rs 283.57 crore), Reliance Industries (down 268.66 crore) and IFCI (Rs 173 crore), were the other turnover toppers on BSE in that order.

Aishwarya Telecom reported the highest volume of 5.37 crore shares on BSE. IFCI (2.81 crore shares), Ispay Industries (1.56 crore shares), Reliance Petroleum (1.5 crore shares) and Reliance Natural Resources (1.21 crore shares), were the other volume toppers on BSE in that order.

US markets rebounded from early lows on Thursday, 8 May 2008, led by technology stocks. Retailers' monthly sales reports also helped ease concerns about an economic downturn. The Dow Jones industrial average rose 52.43 points, or 0.41%, to 12,866.78. The Standard & Poor's 500 index gained 5.11 points, or 0.37%, to 1,397.68, and the Nasdaq Composite index advanced 12.75 points, or 0.52%, to 2,451.24.