Stocks in India Close Lower

123jump.com Staff
18 Dec, 2007
New York City

Stocks in India fell for the second day in a row after lower closing in global markets. Sensex in Mumbai trading declined 0.9% or 181.7 to close at 19,079. Banks, properties, and infrastructure stocks led the decliners. Tata Power, Sterlite, Unitech, HDFC Bank declined more than 1.8%. In Asia Indonesia, Japan, and Australia closed lower.

[R]8:00AM New York, 6:30PM Mumbai - Sensex fell for the second day in row./R

Stocks in Mumbai closed weak on Tuesday with the benchmark index recording a loss of 0.9% or 181.7 at 19,079 after reaching a low of 19,009.35 and a high of 19,375.07. At day''s low Sensex lost 252 points.

Hindustan Unilever, Larsen & Toubro, HDFC, ICICI Bank and Reliance Industries led the decliners in the BSE-30 index with a loss of 1.75% or more.

Among the Bombay Stock Exchange shares, 1,193 stocks rose, 1,672 stocks declined, and 27 stocks remained unchanged. Of the Sensex 30 index, 18 declined. Trading turnover on the BSE amounted to 8,007 crore rupees, lower than 9,641 crore rupees reported on Monday. Turnover on the National Stock Exchange was at 19,519 crore rupees.

In the broader markets, S&P CNX Nifty slid 0.6% or 34.7 with the 50-share index closing at 5,742 levels. Stocks in oil & gas and healthcare sector were in demand, while selling pressure was visible in banking, metal and realty stocks.

Of the NSE-50 stocks, Tata Power Comapany, Sterlite Indus India, Unitech Ltd, VSNL and HDFC Bank were the leading decliners with a loss of over 1.8% each.

BPCL, Sun Pharma, Cipla, ITC Ltd, Cairn India and NTPC were the key gainers in the broader index with a rise of 1.6%.

In the region, the Asian markets closed flat on Tuesday. However, there has been a technical rebound following Monday''s falls with Kospi gaining 1.18% and Hong Kong''s benchmark gaining 0.5%. Japan''s Nikkei lost ground with a loss of 0.3%.

Reliance Industries declined 1.8% to 2,728.9 rupees on reports that the company has paid advance tax of 1,045 crore rupees in the third quarter ended 15th December 2007.

Reliance Communications fell 0.5% to 714.4 rupees on news reports that it has earmarked an investment of about 800 crore rupees to roll out a telecom network — fixed and mobile — in Uganda, in the Eastern Africa.

ITC gained 2.2% to 197.9 rupees, Tata Tea gained 1.3% to 880.6 rupees, and Hindustan Unilever shed 3.4% to 211.2.

Videocon industries added 0.5% to 619.4 rupees, Lloyd Electric advanced 1.2% to 174 rupees and Titan Industries jumped 5% to 1,459.65 rupees.

Sun Pharmaceuticals surged 4% to 1,137.95 rupees, Cipla gained 3.8% to 215.75 rupees, Dr. Reddy''s Laboratories advanced 0.1% to 717.45 rupees and Ranbaxy Laboratories climbed 1.1% to 410 rupees.

Tata Steel fell 0.9% to 816.35 rupees, Sterlite Industries retreated 1.8% to 959 rupees, while and Hindalco Industries slid 0.5% to 199.7 rupees. Steel Authority of India remained unchanged at 259.75 rupees.

Bharat Heavy Electricals declined 1.2% to 2,395.1 rupees while Larsen & Toubro shed 2.8% to 3,967.8 rupees. Suzlon Energy gained 1.8% to 1,861.8 rupees.

ICICI Bank fell 2.3% to 1,140.65 rupees and HDFC Bank slid 1.3% to 1,685 rupees. State Bank of India declined 0.5% to 2,303.7 rupees.

Maruti Suzuki India gained 0.9% to 1,019.65 rupees and NTPC surged 1.7% to 232.4 rupees. HDFC fell 2.3% to 2,812.3 rupees.


[R]6:00AM New York, 8:00PM Tokyo – Stocks in Tokyo fell for the fifth session in a row as weakness in financial sector drag averages.[/R]

In Tokyo trading Nikkei 225 pared a 0.7% decline by mid-day to close down 0.27% or 41.93 to 15,207.86, while the broader Topix Index shed 2.93% to 1,469.77.

In the first section of the Tokyo Stock Exchange 9 billion shares valued at 1.1 trillion yen changed hands while in the second section 305 million shares worth 10 billion yen were traded.

Of the Nikkei 225 stocks 101 gained, 106 declined, and 18 were unchanged. IHI Corp led advancers with a rise of 4.2% followed by Dowa Holdings.

The New York Federal Reserve Bank’s Buffalo branch general economic index fell 10.3 in December from 27.4 in November. Economists forecasted the index would be at 20%.

U.S. National Association of Home Builders/Wells Fargo index of homebuilder confidence was at 19, the lowest in 24 years. Home builders’ confidence has been at its low for the last three months in a row as housing market continues to suffer from tighter mortgage standards, rising inventory of homes for sale, and falling home prices.

Kyodo news reported yesterday that consumer loan and credit companies would set up an association on Wednesday to self-regulate the industry as the revised money lending business law moves into the second stage of implementation.

The new legislation mandates the Japan’s Financial Services Agency to exert a stronger influence in consumer loan companies and other non-bank moneylenders.

Separately, consumer lender Takefuji Corp said yesterday that it will lower its maximum interest rate on January 25th, 2008 to 18% from the current 27.3% before the new legislation is enacted by the Diet. The new rules require consumer lenders to limit the rate to 20% as of late 2009.

Bank of Japan reported yesterday in its quarterly preliminary report that the outstanding balance of financial assets fell by 20 trillion to 1.536 quadrillion yen at the end of September as a result of valuation losses on securities precipitated by the credit market turmoil.

The balance of shares and equities stood at 173.20 trillion, down from 189.96 trillion at the end of June. Furthermore, government bonds and investment trust beneficiary certificates stood at 35.37 trillion yen, while 10.11 trillion was for outward investment in securities. Individual assets held in cash and deposits were up 0.4% to 770.49 trillion yen.

Japan’s Finance Minister Fukushiro Nukaga said at a press conference in Tokyo today that new bond sales for the next fiscal year starting on April 1st, 2008 would be kept below 25.4 trillion yen.

Nukaga said the government will aim at bolstering economic growth and revitalize rural areas, and would tap about 10 trillion yen of reserved funds in “zaito” loans to affiliated agencies and local government.

Of the Nikkei 225 index shares IHI Corp led advancers with a rise of 4.18% followed by rises of 3.82% in Sumco Corp, of 3.44% in Showa Denko K.K, and of 2.89% in Toto Limited.

Exporters also gained after the yen weakened to 113.15 from 112.95 yesterday as economists bet the Bank of Japan will keep interest rates on hold at 0.5% on Thursday. Casio Computers firmed 0.08% and Sony Corporation added 0.49%.

Chiyoda Corp led the decliners in Nikkei 225 index with a fall of 4.98% followed by losses in Nikon Corp of 4.68%, in Alps Electric Company Limited of 4.63%, in Komatsu Limited of 4.41%, and Taiyo Yuden Company of 3.17%.

Shipbuilders also slumped on concerns economic growth is easing. Kawasaki Heavy Industries fell 2.47%.

Aeon Corp said on Monday that it is seeking investor support to block 15 billion yen takeover of drugstore CFS by Ain Pharmaciez Inc at a shareholders meeting on January 22nd, 2008. Aeon needs the support of at least 18% of voting rights to veto the takeover.