Weak Trading In India, Reliance Com Drops

123jump.com Staff
29 Oct, 2008
New York City

In Mumbai stocks closed higher in a volatile trading on a decline in trading volume. Reliance Communications dropped 10% ahead of the earnings results. Mahindra & Mahindra gained 8.3% after the company said that product demand is strong.

[R]10:00AM New York, 7:30 PM – The Sensex index rises 0.4% in volatile trading.[/R]

Market Sentiment

Stocks in India rose in a volatile trading after the expiry of the October 2008 derivative contracts. Expectations that the U.S. Federal Reserve Bank and the Bank of Japan will slash their key rates and rising crude oil prices also spurred growth.

In Mumbai, the BSE 30-share Sensex rose 0.4% or 36.43 to 9,044.51, and the CNX Nifty gained 0.5% or 12.45 to 2,697.05.

Of the stocks traded on BSE 1104 rose, 1319 declined, and 75 remained unchanged.

Trading Statistics

Daily turnover on the BSE declined to 3,091 crore rupees from 3,388.65 rupees.

Short-Selling No Longer A Concern

The Economic Times of India reported today that a senior official in the Finance Ministry reported today that short-selling doesn''t pose significant risk on the country''s financial sector after the Securities & Exchange Board of India took aggressive measures.

Gainers & Losers

Reliance Communications dropped 10.3% and Hindalco Industries rose 18.24% ahead of the announcement of the company''s second quarter results on Friday.

Reliance Industries increased 4.47% to 1,204.40 rupees after the company shut down its polypropylene plant at the Jamnagar refinery complex in order to increase the propylene yield.

Financial stocks were mixed. HDFC Bank plunged 2% and ICICI Bank soared 3.2%, and the State Bank of India fell 2%.

IT stocks were also mixed. Satyam Computer Services plummeted 5.4%, Wipro soared 7.3%, Infosys edged upc1.8% and Tata Consultancy Services climbed 0.4%.

ACC rose 7% to 473.70 rupees, Tata Power Company gained 4.3% to 616.55 rupees and Jaiprakash Associates advanced 0.53% to 61.65 rupees.

ONGC rose 0.9% ahead of its second quarter results.

DLF declined 7% to 202.45 rupees, Ranbaxy Laboratories dropped 9.6% to 172.85 rupees, Hindustan Unilever fell 4.7% to 208.20 rupees.

Reliance Communications fell 10.2% ahead of its earnings results on Friday.

M&M gained 8.3% notwithstanding a 20.6% fall in net profit to 226.77 crore rupees after it said that demand for its products remain strong.

Hero Honda Motors, Tata Motors rose 1.5% and 3.7% respectively and Maruti Suzuki India declined 1.2%.

Commodity stocks also rose on rising metal prices. Tata Steel, Sterlite Industries, Hindustan Zinc gained between 3.4% and 15.1%.

Hindalco Industries surged 18.4% ahead of its second quarter earnings results on Friday.
National Aluminum Company declined 1.9%.

Tata Tea lost 7.4% on reports it may cut tea prices.

Sical Logistics fell 2.2% after reporting a net loss of 41.93 crore rupees in the second quarter of the year.

Fortis Healthcare rose 4.1% on reporting net profit of 10.06 crore rupees.

Unitech rose 1.4% after agreeing to sell a majority stake in its telecommunication unit.