India Plunges on Weak Global Markets

123jump.com Staff
18 Jan, 2008
New York City

Indian stocks fell for the fifth session in a row. Sensex plunged 3.5% or 687 to 19,013 after global markets closed sharply lower on the talks of U.S. recession. HDFC third quarter earnings rose 83% on rising loan portfolio. ITC, the tobacco giant, reported 16% rise in earnings on 13% rise in sales.

[R]10:00AM New York, 7:30PM Mumbai - Sensex plunged, India''s annual economic growth may be lowered.[/R]

Stocks in Mumbai trading fell for the fifth day in a row on a decline in large companies including Reliance Industries, DLF, and ICICI Bank.

The 30-share BSE benchmark index declined 3.5% or 687.12 to 19,013.70. The broader CNX S&P Nifty lost 3.5% or 207.90 to 5705.30.

Of the BSE shares, 2,505 shares fell, 362 shares surged, and 23 remained unchanged. Among the 30-benchmark index shares, 25 stocks slipped and the rest climbed.

Trading turnover on the BSE was recorded at 8,753 crore rupees and turnover on the National Stock Exchange stood at.19,884 crore rupees.

Reliance Industries was the most active stock with a turnover of 493.87 crore rupees on the BSE. Housing Development Finance Corporation, Reliance Natural Resources, Reliance Energy and ICICI Bank were other companies on the most active list.

Deputy Chairman of the Planning Commission, Montek Singh Ahluwalia, warned on Friday that India''s annual economic growth rate could be lowered by 0.5% if global economic growth slows.

Last year, the commission projected an annual average growth rate of 9% for the next five years.

On Thursday, Finance Minister Palaniappan Chidambaram said India cannot remain immune to U.S. recession.

Wholesale price index leapt 3.8% in the week ended January 4, 2008 compared to 3.5% during the week ended December 29 2007.

Of the BSE shares, Reliance Industries fell 6.6% to 2,799.5 rupees. Reliance Natural Resources fell 5.2% to 205.75 rupees. Reliance Energy dropped 4.01% to 2,124.05 rupees, Reliance Communications lost 3.7% to 702.15 rupees.

ICICI Bank fell 5.8% to 1245.45.rupees and State Bank of India lost 2.08% to 2,368.3 rupees.

Indian Oil Corporation slid 7.6% to 607 rupees.

Larsen & Toubro declined 3.6% to 3,930.1 rupees, Mahindra & Mahindra dropped 3.2% to 728.4 rupees.

Tata Steel slipped 3.5% to 781.9 rupees and Tata Motors slipped 3.4% to 712.2 rupees.

Grasim Industries gained 1.03% to 3340.7 rupees, Ambuja Cements rose 0.9% to 131.95 rupees, ACC gained 0.5% to 864.6 rupees, Bharti Airtel surged 0.2% to 973.9 rupees and Satyam Computers climbed 0.04% to 372.6 rupees.

Ranbaxy Laboratories jumped 5.1% to 386.65 rupees. The company reportedly said its profit may rise 25% in the current fiscal year on higher sales of treatments for infections, diabetes and AIDS in emerging markets.

On Thursday Ranbaxy reported flat result for the quarter ended in December 2007 with profits after tax at 188 crore rupees, on a consolidated basis. Consolidated net sales for the quarter increased 5% to 1,784 crore rupees.

ITC rose 2.1 to 212.6 rupees after reporting 15.79% rise in net profit to 830.72 crore rupees on 12.90% increase in sales to 3595.39 crore rupees.

Housing Development Finance Corporation lost 1.05% to 2,819 rupees after reporting net profit of 83% rise to 648.93 crore rupees.

HDFC’s capital adequacy ratio stood at 17.6% of the risk weighted assets, as against the minimum requirement of 12%. Tier 1 capital adequacy was 15.3% as against a minimum requirement of 6%.


[R]6:00AM New York, 6:00PM Hong Kong – Stocks recover from a morning loss of 4% to close fractionally higher.

Hong Kong Stock indexes closed in positive territory after a rally in financial stocks in volatile trading.

In Hong Kong trading Hang Seng Index recovered from a 4% dip in morning trading to rise 0.4% or 86.89 at 25,201.87, down 6.2% for the week. The China Enterprises index of H-shares, or Hong Kong-listed shares in mainland companies, gained 0.6% or 79.91 to 14,561.32, a decline of near 8% for the week.

Daily main-board turnover was HK$127.4 billion compared to HK$138.3 billion yesterday.

Industrial & Commercial Bank of China led financial stocks higher after it forecasted net profit to grow by 60% in 2007.

According to CSRC chairman Shang Fulin companies in China raised Rmb772.8 billion on the domestic market last year, adding that the aggregate capitalization of companies listed on mainland exchanges topped Rmb32.71 trillion.

China biggest lender ICBC rose 5.4% to HK$5.27 after reporting yesterday it expects its net profit to grow more than 60% in 2007 on rising fees.

Bank of China soared 4.7% to HK$3.60. China Construction Bank climbed 1.5% to HK$6.13 after saying it expects to post a 48% year-on-year rise in its 2007 net profit.

However HSBC Holdings plc edged 0.5% lower to HK$118.40 as worries related to unknown level of exposure to the U.S. subprime losses swirled in the market.

Cement company Sinoma surged 15.4% to HK$8.86, while construction contractor China Railway rose 5.2% percent to HK$10.18.

Yue Yuen Industrial Holdings slumped 6.8% to HK$24.6 as the U.S. economic outlook deteriorated after it reported fiscal 2007 net profit increase of 1.65%


[R]5:00AM New York, 7:00PM Tokyo - Japan consumer confidence falls four year low at 38 in December.[/R]

Stocks in Japan edged higher on the expectations that U.S. economy may respond to potential stimulus package from the U.S. government.

In Tokyo trading Nikkei 225 stocks rose 0.56% or 77.84 to 13,861.29, while the broader Topix Index increased 11.06 to 1,341.50.

In the first section of the Tokyo Stock Exchange 10.3 billion shares worth 1.1 trillion yen were traded and in the second section 346 million shares worth 3.8 billion changed hands.

Of the Nikkei 225 stocks 136 gained, 81 declined, and 8 were unchanged.

The Cabinet Office’s Economic and Research Institute said today that Japan’s consumer confidence index slumped from 39.8 in November to 38 in December, while the index gauging overall livelihood slid to 34.9 from 37.0 in November.

Income growth index fell to 39.6 in December from 40.7 a month ago and employment plummeted from 43.1 in November to 40.6 in December.

The index measuring the willingness to buy durable goods slipped from 38.4 recorded in November to 37 in December.

Of the Nikkei 225 index stocks Sumco Corp led advancers with a gain of 9.42% followed by gains in Mitsui Engineering and Shipbuilding of 9.23%, in Sumitomo Realty of 8.02%, in Comsys Holdings of 7.86%, and in Sumitomo Heavy of 6.89%.

Financial stocks also gained as well. Mitsubishi UFJ Financial Group climbed 0.31%, Mizuho Financial Group gained 1.04% and Resona Holdings jumped 3.53%.

Nippon Paper Group led declining Nikkei 225 index shares with a drop of 10.40% followed by losses in Sumitomo Electric Industries of 5.47%, in OJI Paper Co Limited of 4.69%, in Kikkoman Corporation of 4.64%, and in Millea Holdings of 4.34%.

Paper and pulp makers declined after OJI Paper Company Limited became latest company to announce today it had falsified the amount of recycled materials used to produce printer and photocopier paper.

However President of OJI Paper Company Kazuhisa Shinoda said that the prior use of less recycled materials will not affect earnings.

This week Nippon Paper Group said it had falsified data on paper products since 1996 to make it look as if it was complying with the mandatory recycled volume requirements.

Nippon Paper President Masatomo Nakamura also added that he will step down as a result.

Nissin Seifun Group, the parent company of Nisshin Foods, said today it will increase wholesale prices by 40%.

Bloomberg news reported today that Morgan Stanley has raised 50.2 billion yen from the sale of yen denominated bond sale to strengthen its balance sheet.