Key benchmark indices extended losses in mid-morning trade. The BSE 30-share Sensex was down 267.27 points. The market had opened weak tracking subdued Asian markets and ahead of the inflation data scheduled to be announced after market hours today, 11 September 2008.
Banking & IT stocks declined. Index heavyweight Reliance Industries (RIL) and Reliance Infrastructure fell more than 3% each. DLF fell more than 4%. Tata Motors and Ranbaxy Laboratories were the only gainers from the Sensex pack. The market breadth was weak.
Asian markets were trading lower on continued worries about the credit crisis after Lehman Brothers failed to announce any firm deals to raise desperately needed capital after posting record quarterly loss on Wednesday, 10 September 2008. US markets ended with modest gains on Wednesday, 10 September 2008.
Nymex October 2008 futures slipped 68 cents to $102.58 a barrel yesterday, 10 September 2008 hit by a stronger dollar.
At 11:24 IST, the BSE 30-share Sensex was down 266.92 points or 1.82% to 14,395.69. At the days low of 14,395.48 hit in mid-morning trade, the Sensex fell 267.13 points. At the days high of 14,557.33 hit in early trade, the Sensex fell 105.28 points.
The S&P CNX Nifty slipped 87.95 points or 2% to 4,312.30.
The market breadth was negative on BSE with 1,397 shares declining as compared to 710 that advanced. 75 remained unchanged.
Among the 30-member Sensex pack, 28 declined while the rest gained.
Indias largest private sector firm in terms of market capitalization and oil refiner Reliance Industries fell 3.19% to Rs 2,018.
IT stocks declined despite further slide in rupee against dollar. Wipro (down 0.91% to Rs 428.70), Satyam Computer Services (down 0.7% to Rs 419.90) and Infosys (down 0.56% to Rs 1,748) edged lower. Falling rupee augurs well for the sector as it derives most of its revenues in dollars. The rupee fell to its lowest in nearly two years today, 11 September 2008. At 10:30 IST, the partially convertible rupee was at 45.405/410 per dollar.
Tata Consultancy Services, India's top software services exporter fell 1.16% to Rs 841.10. The company said on Wednesday it will partner with Swedish defence and aerospace group Saab for an aeronautical design and development centre.
Banking majors fell ahead of inflation data to be announced by the government after market hours today, 11 September 2008. ICICI Bank (down 1.53% to Rs e689), State Bank of India (down 1.07% to Rs 1,548.30) and HDFC Bank (down 0.15% to Rs 1,275) edged lower.
Annual inflation rose 12.34% in the year through 23 August 2008, lower than previous weeks 12.40% rise, data released by the government after trading hours on Thursday, 4 September 2008 showed.
DLF (down 4.18% to Rs 481.05), Reliance Infrastructure (down 3.43% to Rs 999.40), ONGC (down 2.94% to Rs 1,044.40), Tata Power Company (down 2.77% to Rs 1,020.50), Bharti Airtel (down 2.58% to Rs 791) edged lower from the Sensex pack.
Sterlite Industries fell 0.81% to Rs 503.80. From a recent high of Rs 622.35 on 8 September 2008 the stock had plunged 18.38% to Rs 507.90 on 10 September 2008 after the Vedanta group on Tuesday, 9 September 2008 announced a restructuring to simplify its corporate structure into three commodity-focused groups: copper and zinc-lead, aluminium-energy and iron ore.
Tata Motors (up 0.84% to Rs 422.05) and Ranbaxy Laboratories (up 0.74% to Rs 461.40) edged higher from the sensex pack.
National Thermal Power Corporation fell 1.52% to Rs 175.50 . The company today, 11 September 2008, it has formed a joint venture company with Bihar State Electricity Board under the name Nabinagar Power Generating Company for setting-up of a coal based power project having capacity of 1980 megawatt.
Suzlon Energy declined 1.56% to Rs 240 even as the company said its overseas unit has secured a contract from Martifer to supply wind turbines with a capacity of 79.80 megawatts for projects in Romania and Portugal. >
>Gujarat NRE Coke surged 3.94% to Rs 83.05 after the company said on Wednesday, 10 September 2008, its board will meet on 17 September 2008 to consider issue of equity shares on rights basis, with differential voting rights.
Asian markets were trading lower today, 11 September 2008. China's Shanghai Composite, Japan's Nikkei, Hong Kong's Hang Seng, Taiwan's Taiwan Weighted, Singapore's Straits Times, and South Korea's Seoul Composite were down between 0.84% to 3.19%.
US markets finished with modest gains on Wednesday, 10 September 2008 after rallying earlier on a drop in oil prices. The nervousness was due to investor worries about financial shares like Lehman Brothers. The Dow Jones industrial average gained 38.19 points, or 0.34%, to 11,268.92. The S&P 500 index advanced 7.53 points, or 0.61%, to 1,232.04, and the Nasdaq Composite index added 18.89 points, or 0.85%, to 2,228.70.