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Sensex slips 119 points on weak global markets

MUMBAI - Equity values slipped further on Wednesday in a lackluster trade. Weak global markets and anxiety on the outcome of the market watchdog, the Securities and Exchange Board of India's (Sebi) board meet on Wednesday to review the rules regarding the issuance of participatory notes, kept the traders on sidelines. Banking and realty shares witnessed selling pressure, while IT stocks flared up on weak domestic currency. Index pivotal ICICI Bank was the biggest loser.

The 30-share BSE SEnsitive Index (Sensex) opened with a negative gap of 182 points at 15,030, and soon touched a low of 15,013. Fresh buying at lower levels helped the Sensex recoup part of the losses and rebound into the positive zone to a high of 15,273 - up 243 points from the day's low. However, the Sensex could not hold gains, and finally ended with a loss of 119 points at 15,093.

The NSE Nifty was down 23 points at 4,529. Nifty August futures were at 4562, a premium of 32.95 points from spot closing. The BSE clocked a turnover of Rs50.76 billion from Rs58.75 billion on Tuesday. NSE's futures & options turnover was Rs439.47 billion from Rs524.62 billion on Tuesday.

The market breadth was marginally negative - out of 2,749 stocks traded, 1,420 declined, 1,238 advanced and 91 were unchanged. In the 30-member list of Sensex shares, 9 advanced and 21 declined. ICICI Bank and HDFC Bank dropped 3.7 per cent each to Rs711 and Rs1,217, respectively. DLF shed 3.3 per cent at Rs549, and Reliance Infrastructure slipped 2.5 per cent to Rs1,068. HDFC and Hindalco plunged 2 per cent each to Rs2,414 and Rs140, respectively.

Larsen & Toubro, Tata Power and Reliance Communications declined nearly 2 per cent each to Rs2,796, Rs1,019 and Rs440, respectively. Maruti, BHEL and Jaiprakash Associates were down 1 per cent each at Rs670, Rs1,787 and Rs187, respectively. On the brighter side, Sterlite surged 2.7 per cent to Rs613. Infosys and TCS advanced over 1 per cent each to Rs1,625 and Rs828, respectively. Satyam was up nearly 1 per cent at Rs406.

Corporate news scenario: Tata Steel firmed up 0.41 per cent at Rs610.45 after the company said its Singapore unit signed a joint venture agreement with Vietnam Steel Corp and Vietnam Cement Industries to build a steel complex in the Southeast Asian country. Hindalco Industries dropped 2 per cent to Rs139.55. The company said its board will meet on August 14 to determine the price and other terms and conditions of the proposed rights offering. As per reports, Hindalco will set rights issue price at Rs96 per share.

Reliance Natural Resources topped the value chart with a turnover of Rs2.53 billion followed by Reliance Capital (Rs2.38 billion), Reliance Inds (Rs2.14 billion), Vishal Info (Rs2.13 billion) and ICICI Bank (Rs1.37 billion). Reliance Natural Resources led the volume chart with trades of around 24.5 million shares followed by Chambal Fertilisers (11.3 million), Nagarjuna Fertilisers (11 million), Ispat Industries (10 million) and Vishal Info (9.32 million shares).

The BSE Mid-Cap index slipped 0.1 per cent at 5,929.37 while the BSE Small-Cap index gained 0.13 per cent at 7,229.77. The BSE Bankex dropped 2.2 per cent to 7,271, and the Reatly index slipped 1.3 per cent to 5,611. On the other hand, the BSE IT and Healthcare indices moved up over 1 per cent each to 3,814 and 4,280, respectively. The BSE Healthcare index outperformed the Sensex, rising 1.05 per cent to 4,279.90.

ICICI Bank led the day's losses, crashing 3.77 per cent at Rs710.55. Other banking shares that followed suit were, Bank of Baroda (down 4.61 per cent at Rs271.30), HDFC Bank (down 3.69 per cent at Rs1217.20), and SBI (down 0.15 per cent at Rs1555.25).

Realty shares slipped. DLF (down 3.29 per cent at Rs548.60), Mahindra Lifespace Developers (down 4.61 per cent at Rs467.50), and Housing Development Infrastructure (down 4.05 per cent at Rs466.55) declined.

Pharmaceutical shares firmed up. Sun Pharma Advanced Research Company (up 5.50 per cent at Rs89.20), Glenmark Pharmaceuticals (up 4.04 per cent at Rs635.40), Divi's Laboratories (up 4.01 per cent at Rs1593.65), and Cipla (up 3.15 per cent at Rs232.15) saw good gains. However, Ranbaxy reacted 0.26 per cent at Rs499.05. Dr Reddy's Pharmaceuticals also gained 0.17 per cent at Rs600.25. As per reports, the company and Teva Pharmaceuticals have settled their patent dispute over carvedilol, allowing Dr Reddy's to sell the drug in the US.

IT shares moved up after the rupee weakened against the dollar. Infosys firmed up 1.34 per cent at Rs1625.20. TCS (up 1.20 per cent at Rs828.05), Satyam (up 0.87 per cent at Rs406.25), and Wipro (up 0.05 per cent at Rs433.50) also gained.

Majority of the 39 stocks that will be included in the derivative segment of National Stock Exchange from August 21 spurted on hopes that it will boost liquidity. Noida Toll Bridge Company (up 15.90 per cent at Rs49.20), Core Projects & Technologies (up 10.93 per cent at Rs254.20), Dish TV India (up 10.26 per cent at Rs39.75), UCO Bank (up 10.12 per cent at Rs40.80), and K S Oils (up 10 per cent at Rs65.30), were the prominent gainers among the 39 scrips that will be included for futures and options trading on NSE from August 21.

Among other prominent side counters stealing the limelight included Infrastructure developer BSEL Infrastructure Realty surging 5 per cent to Rs38.95 after the company said its board will meet on August 20 to consider the funding of $100 million for ongoing and future projects of the company.

Cable TV network distributor Wire & Wireless India gained 2.29 per cent to Rs26.75 after the company said its board will meet on August 20 to consider issue of equity shares on a rights basis. Real estate firm Puravankara Projects rose 1.03 per cent at Rs200.70 after the company said it will set up a unit for low-cost housing and invest Rs8000 crore over five years to develop 60 million square feet of land. Auto parts maker JBM Auto rose 4.08 per cent to Rs35.70 after the company said it will invest Rs2.45 billion in a plant in Pune to supply skin panels for the joint venture between Tata Motors and Fiat.