Fourth Decline in Sensex

123jump.com Staff
22 Nov, 2007
New York City

Sensex in Mumbai recovered from a sharp decline to close lower 0.4% to 18,526. The fourth decline in a row was led by losses in Larsen & Toubro of 4.1%, in Suzlon of 2.5%, and in Tata Power and NTPC of 5%. According a private research India led the world markets in the last four months of trading with a gain of 33% followed by gains in Qatar, UAE, Egypt, and Brazil.

[R]10:00AM New York, 7:30PM Mumbai-Sensex stocks fell for the fourth consecutive day in a week.[/R

The Sensex on the Bombay Stock Exchange recovered from a steep fall in the morning session lifted by gains recorded by financial and auto shares during the afternoon trading.

The BSE benchmark fell 0.4% or 76.30 at 18,526.32 a fourth loss in a row and the S&P CNX Nifty ended 0.8% or 41.70 at 5,519.35.

During the past four trading sessions, the key index, Sensex lost over 1,300 points with market capitalization dropped from $1.65 billion to $1.6 billion.

On the BSE, 780 shares advanced, 1,963 retreated, while 34 stocks were unchanged. Of the Sensex index 30 stocks, 17 closed higher and 13 declined. Turnover on the BSE was at 6,976 crore rupees.

However, despite this week loses which wiped off close to $85 billion on investors money from the bourse, India has emerged, the best performing stock market in the world during the past three months.

For the three months ending Nov 15th, India ranked as the best performing market in the world with a return on 34% according to a study conducted by MSCI Barra research service. Qatar, United Arab Emirates and Egypt followed India with a gain of 28% each. Among emerging markets, India is followed by Brazil with 31% return, while Chinese stocks have managed to generate 17%.

Another survey by Merrill Lynch showed that global investors were continuing with their investment strategy in emerging markets notably in India, despite weakening global macro-economic conditions, higher crude oil prices and credit concerns.

The Reserve Bank India said it is committed to put in place monetary measures to maintain price stability in the country. Inflation stood at 3.11% for the week ended November 3rd, compared to 2.97% a week ago. In India, food items account for 57% in Consumer Price Index.

Of the BSE shares, Reliance Industries surged 0.3% to 2,728.8 rupees. State Bank of India was up 4% to 2,241.8 rupees, ICICI Bank rose 2.2% to 1,126.9 rupees, HDFC Bank advanced 0.7% to 1,594.04 rupees.

Maruti Suzuki India rose 1.7% to 966.75 rupees, Bajaj Auto surged 2.1% to 2,472.55 rupees, Tata Motors climbed 0.8% to 692 rupees while, Mahindra & Mahindra was up 0.5% to 710.65 rupees.

Unitech fell 8.7% to 328.2 rupees, DLF lost 5.5% to 822.75 rupees, Indiabulls Real Estate slid 2% to 602.85 rupees.

Larsen & Toubro shed 4.1% to 3,941.9 rupees and Suzlon Energy lost 2.5% to 1,857.2 rupees. Bharat Heavy Electricals fell 0.04% to 2,485.1 rupees. BHEL said that it had received a contract worth 2,108 crore rupees for steam generators and steam turbines in Jharkhand.

Tata Power Company lost 1.2% to 1,145 rupees, Reliance Energy fell 5.2% to 1,605.1 rupees, NTPC retreated 5% to 227.55 rupees. ACC went up 2.2% to 1,103.3 rupees. ONGC fell 3.6% to 1,149.55 rupees.

Ranbaxy Laboratories shed 4% to 393 rupees on news that it had secured an approval from the Canadian authorities to manufacture and market tamsulosin hydrochloride capsules.

Reliance Petroleum rose 2.7% to 208.9 rupees and was the most active stock with a turnover of 2.46 crore shares on the BSE followed by Reliance Natural Resources with turnover of 2.16 crore shares and declined 1% to 150.25 rupees.

Reliance Petroleum was the most active stock by value with total trading value of 504.45 crore rupees on the BSE. Reliance Natural Resources, Reliance Industries, Reliance Capital, and Larsen & Toubro were other turnover leaders on the BSE.