Monday, 10 September, 2007

Markets slip, slide, recover

The markets managed to stage a smart recovery by close of trading session on Monday with the benchmark index settling at 15,596 levels.

The Sensex slipped to a low of 15,363 levels in opening moves on the back of weak global cues. In the broader markets, the Nifty closed flat at 4,507 levels.

Most Asian markets fell sharply on Monday after disappointing US jobs data renewed concerns about growth in the world`s largest economy.

The benchmark Nikkei 225 index shed 357.19 points or 2.22 per cent to close at 15,764.97. It dropped nearly three per cent early in the day.

Korea Composite Stock Price Index tanked 49.03 points or 2.6 per cent, to close at 1,835.87. It lost as much as 3.9 per cent in morning trade before paring losses.

"I expect the markets to correct further. The Sensex can slip by another 500-700 points," said Deven Shah, technical analyst,

Back home, leading the pack of losers at the Sensex was technology major TCS. The counter slipped 2.8 per cent or Rs 30 by close. Wipro, Infosys Technologies, Satyam Computer, Hindalco, Cipla, HDFC and ICICI Bank also ended in the red.

"If the Nifty can overcome 4,530 levels, it should continue its journey north," added Hemen Kapadia, CEO,

However, ITC Limited and Ambuja Cements surged over three pre cent each. Ranbaxy, NTPC, Reliance Energy, SBI, Tata Motors and Tata Steel were some of the other notable gaines.

Reliance Industries announced on Monday that it has acquired polyester assets of a Malaysian firm, Hualon.

According to the company, the move will help consolidate its position further as the world`s largest polyester manufacturer with 2.5 million tonnes capacity and increase in revenue by around $1 billion.

The stock reacted positively to the development and surged 1.3 per cent or Rs 26 by close of trading session to settle at Rs 1,987 levels.

Pockets of green

FMCG counters are held firm on Monday. The BSE FMCG index gained 1.9 per cent or 38 points. ITC Limited at Rs 184 levels zoomed 3.7 per cent. Tata Tea and Nirma were some of the other key gainers.

Chennai Petroleum, MRPL, BPCL, HPCL and Cairn India gained ground in the oil and gas space besides Reliance Industries.

KEC Infrastructure (up 3.6 per cent), HEG limited (up 3.3 per cent), Ingersoll Rand (up 2.7 per cent), Alstom Projects (up 2.4 per cent), Dredging Corporation (up 2.4 per cent), Bharat Electronics (up 2 per cent) and ABB (up 1.6 per cent) logged gains in the capital goods space.

Technology weak

Among sectoral indices, the BSE IT index was the worst hit. It skidded 1.9 per cent or 88 points. Key losers included Wipro, Tech Mahindra, Satyam Computer, Moser Baer, Rolta India and Infosys Technologies.

Profit booking was also visible in select banking counters. Centurion Bank of Punjab, Yes Bank, ICICI Bank, Karnataka Bank, Indian Overseas Bank, Axis Bank and Canara Bank ended the day in negative turf.

JSW Steel at Rs 676 levels was the top loser in the metal pack. It shed 3.7 per cent or Rs 26. Hindalco, Sterlite Industries, Ispat Industries, Hindustan Zinc and Jindal Saw also lost ground.