Sensex Edge Lower

123jump.com Staff
28 Aug, 2007
New York City

In subdued trading in Mmumbai averages fell a fraction reflecting quiet trading across in Asia. Sensex fell 0.4% to 14,901 in a weak trading. Rupee edged lower against dollar. Of the 30 stocks in Sensex, 19 increased. Daily turnover on NSE and BSE has declined from its peak between 10% and 15%. Hindalco led the gaiers and ICICI Bank led the decliners among Sensex stocks. Communist parties and ruling coalition controlled by Congress Party look for commong platform for nuclear deal with India.

[R]11:30AM New York, 8:00PM Mumbai – In subdued trading in Mumbai, stock averages fell and metals gained. ICICI Bank and Hindlaco led the stocks in Sensex.[/R]

Sensex in Mumbai trading closed up 58.84 or 0.4% higher to 14,901.22. CNX Nifty traded up 12.40 to close at 4,315.00. Rupee edged lower to 41.01 to one dollar.

Of the stocks on Bombay Stock Exchange, 1,593 gained, 1,061 declined, and 75 were unchanged. Of the 30 stocks in the index, 19 increased and 11 declined. Hindalco, the largest Aluminum maker, jumped 3.10% to 153 rupees. ICICI Bank led the decliners in the index with a loss of 2.9% to 858 rupees.

Daily turnover on the National Stock Exchange was reported at 9,198 crore rupees with 1,146 stocks changing hands.

The ruling coalition and communist parties appear to have found a common ground in resolving their differences related to nuclear deal with the U.S. The key demand to stop negotiations with the International Atomic Energy Agency is still unresolved.

Weaker rupee against dollar helped software services stocks edge higher. Satyam Computers led the sector with a rise of 2.1% to 448 rupees followed by 1.7% increase to 1,880 in Infosys, and fractional gains in Wipro and TCS.

The recent turmoil in credit markets in the U.S. has forced several mortgage brokers and originators to reduce staff. The volume of new mortgage issued has been dramatically lowered in the last three months affecting the need for staff and outsourcing. Several business process outsourcing companies including Wipro, WNS, and iGate have been forced to redeploy staff to other activities.

ICICI Bank fell 2.9% on the news that the Reserve Bank of India challenged its plan to sell a stake in its subsidiary that plans to distribute insurance and financial products.

Bharti Airtel fell 0.4% to 874 rupees after the Telecom regulatory authority asked the company to terminate its value added services that uses truncated codes, violating national numbering and code convention.

Reliance Retail the newly formed division of Reliance Industries has entered in alliance with Concor, Container Corporation of India to provide transportation and distribution infrastructure through 60 terminals across the country. The parent company Reliance Industries stock jumped 2.8% to 1,890 rupees.

Metal stocks jumped after metal prices firmed in Asia trading. Steel Authority led the sector with a gain on 2.6% to 153 rupees followed by 1.7% advance in Hindustan Zinc to 697 rupees, and 0.5% increase in Tata Steel to 606 rupees.

[R]7:00AM New York, 8:00PM Tokyo-Japanese shares retreated on a firming yen, as weak US housing market data sucked out investor confidence. Tokyo Stock Exchange to list exchange-traded fund. Isuzu and Hino sign diesel technology agreement.[/R]

Japanese stocks ended down marginally in mixed trading, dragged by losses in exporters. U.S. inventory of unsold houses climbed 5%, the biggest increase in 17 years kept investors on the edge. Tokyo fell 0.09%, down from a marginal gain of 0.32% on Monday. Of the 225 Nikkei shares, 128 fell, 87 gained while 10 were unchanged.

In Tokyo trading Nikkei 225 lost 0.09% or 13.9 to 16,287.48 in volatile trading led by exporters, as yen firmed against major foreign currencies. Exporters feared foreign earnings would take a hit. Against the euro, the yen was up 157.58 from 158.12 yesterday. To the American dollar, the yen closed up 115.63 from 116 yesterday, tracking firmer gains of as high as 112 reported last week.

The Ministry of Finance completed sale of 20-year bonds worth 800 billion yen at 2.1%. The auction drew bids worth 3.4 times the bond sales lower than 3.63 times in the previous auction in July.

Of the Nikkei 225 shares, exporters fell on concern foreign earnings will fall on a rising yen. Industrials dropped too in mixed trading Nippon Suisan led decliners falling 5.4% followed by Tokyo Dome Corp down 3.10% and Keio Corp lost 2.75%. Mitsubishi UFJ dropped 2.74% while Sumitomo Metals Mining edged lower 2.60%. Paper manufacturing firms, some banks gained. Nippon Sheet Gla led up 4.83% followed by Yahoo Japan Corp up 3.88%. Mitsub Paper rose 3.45% while Kyowa Hakko kog and OKI Electric closed higher 3.10% and 2.88% respectively. Softbank Corp, Bank of Yokohama and Shinsei Bank Ltd all gained over 1.5%. OSI Paper Co Ltd and Nippon Paper Group firmed as well.

The Tokyo Stock Exchange is planning to list an exchange-traded fund that is linked to the price of gold and can be exchanged for the metal, Japan press reports said Monday. The ETF will help TSE’s diversification away from shares and commodities.

Mitsubishi UFJ Financial Group Inc will form a capital alliance with Australian financial service firm Challenger Financial Services Group Ltd by buying firm''s new shares. This may be an extension to Challenger’s Monday announcement that Mitsubishi UFJ Ltd. and Mitsubishi UFJ Securities Co. subsidiaries to Mitsubishi UFJ will buy some 40 million Challenger shares at A$5.20. Mitsubishi UFJ closed lower 1.77%.