Equities slip further on global cues; Sensex down 139 points

MUMBAI — Indian equities kept downward pace today, in reaction to selling moods in technology stocks and discouraging trends in global markets. Ranbaxy Labs suffered over 10 per cent on high volumes. Fresh selling at dayís high in mid-afternoon trade derailed a feeble recovery from lower level witnessed earlier in the day. Volatility was high in the later half of day. The market breadth was weak.

By Our Correspondent (Bombay Stock)

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Published: Tue 15 Jul 2008, 11:44 PM

Last updated: Sun 5 Apr 2015, 12:49 PM

IT pivotals tumbled hit by sharp fall in American depository receipts on the New York Stock Exchange on Friday.

Most Asian markets, which opened before Indian markets, were trading lower today. US markets ended volatile session on Friday, with the Dow Jones falling below the 11,000 level for the first time since August 2006. Growing concern about the health of Fannie Mae and Freddie Mac send bank shares to an 11-year low. However, European stocks surged, boosted by a US plan to rescue embattled mortgage finance companies Fannie Mae and Freddie Mac and by a fresh surge of acquisition activity.

Marketmen feel that domestic political uncertainty may continue to weigh on the bourses in the near term. The government is holding a two-day special session of parliament on July 21-22 to seek vote of confidence after it was reduced to minority following withdrawal of support by Left parties on July 8. The government hopes to retain power due to backing from Samajwadi Party, a regional party in Uttar Pradesh.

The 30-share BSE Sensitive Index (Sensex) opened with a negative gap of 110 points at 13,360 on the back of continued weakness in technology stocks. Fresh buying in energy and metal stocks helped the Sensex rebound into the positive zone and touch a high of 13,559. Fresh round of selling in technology stocks and other pivotals pulled down the Sensex to a low of 13,270 — down 289 points from the day's high. The Sensex finally ended with a loss of 139 points at 13,331.

The NSE Nifty ended with a marginal loss of nine points at 4040. Nifty July-end futures were at 4045, a premium of 5.3 points as compared to spot closing.

The BSE reportred an overall turnover of Rs44.75 billion from Rs53.86 billion on Friday. Turnover in NSE's futures and options segment amounted to Rs400.96 billion from Rs501.5 billion Friday.

The market breadth was negative - out of 2,649 stocks traded, 1,576 declined, 1,009 advanced and 64 were unchanged. Among the 30-member Sensex pack, 15 advanced and other 15 slipped.

Ranbaxy was the worst performer among the Sensex shares, crashing 10.5 per cent (Rs56) to Rs476. Satyam plunged 8 per cent to Rs409, and Infosys tumbled over 7 per cent to Rs1,556. TCS shed 3.8 per cent at Rs769. Wipro dropped 2 per cent to Rs404. HDFC, BHEL, ITC and HDFC Bank slipped 3.3 per cent each to Rs1,933, Rs1,470, Rs169 and Rs1,033, respectively. Hindalco declined 3 per cent to Rs151. ICICI Bank shed 2 per cent at Rs580. ACC dropped 1.5 per cent to Rs535. Jaiprakash Associates and Bharti Airtel were down over 1 per cent each at Rs155 and Rs737, respectively.

Among the gainers, Mahindra & Mahindra surged 4.50 per cent to Rs554.90 on 25,411 shares. It was the top gainer from Sensex pack. ONGC and NTPC surged over 3 per cent each to Rs877 and Rs167, respectively. SBI rallied nearly 3 per cent each to Rs1,258. Tata Steel gained 2.7 per cent at Rs684. Ambuja Cements and Tata Motors added 2.5 per cent each to Rs83 and Rs409, respectively. Reliance Infrastructure and Hindustan Unilever moved up 2 per cent each to Rs818 and Rs219, respectively. Cipla, Reliance and Larsen & Toubro advanced 1.5 per cent each to Rs215, Rs2,047 and Rs2,392, respectively.

Corporate news scenario: Ranbaxy tumbled 10.83 per cent to Rs473.90 on 2.86 million shares. The stock was hammered on reports the US government has levelled serious allegations against the company. The US department of justice (DoJ) has said that there was evidence to suggest that Ranbaxy used active pharmaceutical ingredients (API) from unapproved sources, blended unapproved API with approved API, and used less-than-approved API at its Paonta Sahib (Himachal Pradesh) plant in its drugs, resulting in the sale of subpotent, super- potent or adulterated medicines in the US market. In a statement, Ranbaxy strongly denied the allegations raised by the US Department of Justice (DOJ).

The company also stated that its business in the US continues as normal. Ranbaxy also said the company's deal with Japanese drug maker Daiichi Sankyo is binding and final and remains on track. ONGC galloped 3.60 per cent to Rs879.85.

BULLION: Precious metals hardened on buying interest at the local bullion market today. Pure Gold (.999) zoomed Rs145 to close at Rs13,335 per ten grams and Standard gold (.995) also moved up Rs145 to finish Rs13,305 per ten grams. Silver gained Rs300 to end at Rs25,700 per kg.

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