Sensex Rebounds, Oil Drops

123jump.com Staff
22 Aug, 2008
New York City

Stocks gained a day after falling sharply on a sustained rise in inflation. Stocks rose as crude oil prices fell in the region and generally good monsoon season in the country. Normal rainfall in the most part of the nation has raised hopes of a rise in farm income and spending.

[R]10:00AM New York, 7:30 PM Mumbai - Sensex rises 1.11%. Tata warns over Nano manufacturing plant in West Bengal.[/R]

Market Sentiment

Stocks in India gained but lost some of the advances by mounting pressure from the uncertainty surrounding the financial markets. In particular, Citigroup’s assertions that the U.S.’s three biggest investment banks- Lehman Brothers, Morgan Stanley and Goldman Sachs- might incur combined write downs of $6.4 billion in the latest quarter also trimmed today’s gains. However stocks gained from bargain hunting as investors capitalized on the recent declines.

In Mumbai, the BSE 30-share Sensex rose 1.11% or 157.76 to 14,401.49, and the CNX Nifty advanced 1.02% or 43.60 to 4327.45.

Trading Statistics

Foreign institution investor sold shares worth 1,109.50 crore rupees in August 2008, and shares valued at 28,411.50 crore rupees for the year so far in August.

Reliance Industries fell 1.30% to 2,245.65 rupees.

Union Cabinet Approves IPTV Services

India’s Union Cabinet yesterday approved policy guidelines for the commercial rollout of a new cable delivery system, Internet Protocol TV (IPTV) services. The cabinet also gave approval to amend policy guidelines for down linking of television channels that enable broadcasters to provide content to IPTV service providers.

Gainers & Losers

Tata Steel dropped 3.53% to 594.45 rupees in the week as its subsidiary Anglo-Dutch steelmaker Corus entered into exclusive negotiations with Klesch & Company to sell its two aluminum smelters in the Netherlands and Germany.

Larsen & Toubro declined 2.09% to 2,604.90 rupees on news that the company is on the verge of buying equity stake in coalmines in Australia and Indonesia.

Ranbaxy Laboratories increased 4.61% to 522.80 rupees.

Ambuja Cements plunged 5.55% to 80 rupees on expectations that it will expand in the south Indian market by transporting the building material by sea route.

ITC plummeted 4.71% to 182.10 rupees after it acquired US-based technology firm Pyxis Solutions.

State Bank of India tumbled 7.86% to 1,346.25 rupees, while ICICI Bank fell 4.27% to 644.50 rupees as the lender sold an estimated $275 million from its credit derivative portfolio in its foreign branches.

Realty stock DLF fell 3.42% to 483.95 rupees.

Carmaker Maruti Suzuki slid 2.87% to 631.85 rupees on mulled plans to increase its vehicle exports to 2,00,000 units annually by 2010-11 and Tata Motors slipped 1.54% to 425.60 rupees.

Tata Warns Over Nano Plant

Reuters News reported today that it is prepared to move its Nano making plant from its eastern Indian site if violent protests against its acquisition of farmland in West Bengal state continue unabated. The continued protests might delay the launch of the Nano in October.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 86.17 or 0.68% to 12,666.04, ASX 200 index in Australia increased 56.20 or 1.15% to close 4,931.40. The KL Composite index in Malaysia increased 14.17 or 1.32% closed to 1,085.60. Hong Kong was closed today.

The Kospi Index in South Korea decreased 15.68 or 1.04% to close at 1,496.91, SET index in Thailand closed higher 5.40 or 0.80% to 681.93 and JSE Index in Indonesia increased 32.24 or 1.54% to 2,120.49. The Sensex index in India increased 157.76 or 1.11% closed to 14,401.49.