Thursday, October 27, 2005

Sensex tumbles to 2-month low, falls below 7,800


A major sell-off gripped the bourses today on the last day of the expiry of
October 2005 derivatives contracts. The near-month derivatives contracts
expire on the last Thursday of every month. Disappointing Q2 results from
the largest commercial bank State Bank of India (SBI), and lower than
expected Q2 results from cellular services major Bharti Tele-Ventures (BTL)
triggered the sharp fall. Sell-off gripped the bourses in the last one hour
or so of trading. Both BTL and SBI plunged following the results
announcement.

A subdued to weak trend in European markets and some Asian markets also hurt
market sentiment.

The 30-share BSE Sensex tanked 176.20 points or 2.1% to settle at 7,798.49 -
its lowest level in nearly two months since 30 August 2005. The S&P CNX
Nifty lost 55.60 points or 2.3% to 2,352.90.

Index heavyweight Reliance Industries (RIL) declined sharply in the last
half an hour or so of trading in a weak market even as the company reported
a surge in Q2 September 2005 net profit which also beat market expectation.

A host of PSU banks slipped following SBI’s disappointing Q2 outcome. ICICI
Bank declined sharply.

Turnover on BSE rose today. BSE clocked a turnover of Rs 2,778 crore
compared to Wednesday (26 October 2005) ’s Rs 2,391 crore. The last three
trading sessions had seen a fall in turnover ahead of the expiry of October
2005 derivatives contracts. BSE clocked a turnover of between Rs 2,391 crore
and Rs 2,437 crore in three trading sessions between 24 October 2005 and 26
October 2005.

FIIs have pressed heavy sales this month. The latest data showed that FIIs
sold shares worth a net Rs 453.60 crore on Wednesday (26 October 2005) – the
day when the Sensex shed 17 points in volatile trade. In the month of
October 2005, FIIs have sold shares worth a net Rs 2,721 crore (till 26
October 2005). The heavy FII selling has caused a major correction on the
bourses in the past few days with the Sensex tumbling to a 2-month low on
Thursday (27 October 2005). From a lifetime closing high of 8,799.96 on 4
October 2005, the Sensex has lost 1,001.47 points or 11.3% to the current
7,798.49.

Stocks like Cipla, Bhel, Reliance Energy, Satyam Computer, NTPC, Maruti
Udyog, Grasim, Tata Motors, and Tata Steel dropped between 3% to 4.3% today.

In an otherwise weak market, select small-cap and mid-cap stocks advanced.
Shares of select power equipment firms like Siemens, Thermax, KEC
International and Torrent Cables advanced. MNC pharma scrips like Aventis
Pharma, Glaxosmithkline Pharma and Pfizer moved higher.

Housing finance firms HDFC and LIC Housing Finance edged higher on
expectations of increase in home loan rates. LIC Housing Finance spurted
11.7% to Rs 207.

Market breadth was quite weak. 1,640 stocks declined on BSE as compared to
774 stocks that rose. 51 scrips were unchanged. Losers outpaced gainers by a
ratio of 2.1:1.

Shares of two shipping firms Essar Shipping and Meractor Lines plunged.

Bharti Tele-Ventures plunged 7.3% to Rs 312.15. The stock declined on high
volume of 15.9 lakh shares. Bharti Tele-Ventures' (BTL) consolidated net
profit, as per US accounting standards, jumped 43% to Rs 521 crore in Q2
September 2005 from Rs 364 crore in Q2 September 2004. The results fell
below market expectation. Analysts had forecast a net profit of around Rs
550 crore from the cellular services major.

BTL's consolidated revenues as per US GAAP rose 46% to Rs 2,709 crore from
Rs 1,851 crore, driven by strong subscription growth. The company said the
adverse movement of the rupee against the dollar during the second quarter
had impacted its results.

Disappointing Q2 results hit SBI. The stock lost 6% to Rs 830. The stock
declined on huge volume of 33.9 lakh shares on BSE. SBI today reported a
12.3% growth in Q2 September 2005 net profit to Rs 1215.36 crore (Rs 1081.89
crore). Total income rose 1.2% to Rs 9856.04 crore from Rs 9737.43 crore.

SBI’s net interest income rose 6.7% to Rs 3,607.95 crore from Rs 3,379.81
crore. There was a tax credit of Rs 49.98 crore in Q2 September 2005 as
against a tax provision of Rs 765.65 crore in Q2 September 2004.

A host of PSU banks lost ground. Andhra Bank plunged 7% to Rs 88.90, Bank of
Baroda lost 5.3% to Rs 214.90, Bank of India shed 5.2% to Rs 101.70, Vijaya
Bank lost 5% to Rs 51.80, Canara Bank shed 3% to Rs 199 and Oriental Bank of
Commerce shed nearly 3% to Rs 234.

ICICI Bank plunged 5.6% to Rs 482. 3.3 lakh shares changed hands in the
counter on BSE.

RIL dropped in volatile trade. The stock lost 2% to Rs 747.20. 40.5 lakh
shares changed hands in the counter on BSE. RIL’s net profit has jumped 42%
in Q2 September 2005 to Rs 2,481 crore (Rs 1,752 crore). Net sales have
risen 28% to Rs 20,717 crore (Rs 16,164 crore). A surge in net profit was
partly due to a sharp fall in interest cost to Rs 222 crore from Rs 434
crore in Q2 September 2004. The operating profit margin (OPM) declined to
17.9% in Q2 September 2005 from 19.6% in Q2 September 2004.

On a sequential (quarter on quarter) basis, net profit rose 7.4% from Rs
2,310 crore in Q1 June 2005. Sales rose 16.4% on a sequential basis from Rs
17,784 crore in Q1 June 2005. OPM declined to 17.9% in Q2 September 2005
from 20% in Q1 June 2005.

RIL said the increase in sales for the first six months, April-September
2005, reflected a 23% increase in product prices and a 4 percent rise in
volumes from the same period a year ago.

Hero Honda gained 3.7% to Rs 730 on expectation of a surge in festive Diwali
sales following a good monsoon this year. 2.55 lakh shares changed hands in
the counter on BSE.

Oil exploration major ONGC gained 1.1% to Rs 942 on the back of strong Q2
results. ONGC, on Wednesday, reported a 22.2% growth in Q2 September 2005
net profit to Rs 4138.25 crore (Rs 3383.87 crore). Total income (net of
excise) rose 10% to Rs 13543.31 crore (Rs 12289.29 crore).

L&T moved up 1% to Rs 1,370 after the company said on Wednesday that it had
sold its glass containers business to ACE Glass Containers Ltd. for an
undisclosed amount, thereby totally exiting the packaging business. L&T has
been exiting unrelated businesses as a part of its restructuring of
operations

Sail edged lower by 1.2% to Rs 49.80 after the company reported a 25.5% fall
in Q2 September 2005 net profit to Rs 1126.76 crore (Rs 1513.15 crore).
Total income (net of excise) rose 5.1% to Rs 7156.27 crore from Rs 6808.26
crore in Q2 September 2004.

Hinduja TMT flopped 8% to Rs 332.70 after the company reported 42.4% fall in
Q2 September 2005 net profit to Rs 12.10 crore from Rs 21.04 crore in Q2
September 2004. Income from operations declined 9.3% to Rs 41.03 crore (Rs
45.27 crore).

Patni Computer slumped 7% to Rs 419. 3.5 lakh shares changed hands in the
counter on BSE. Patni Computer today reported a 10% growth in Q3 September
2005 net profit to Rs 71.35 crore (Rs 67.60 crore). Revenue rose 37.9% to Rs
519.70 crore (Rs 376.66 crore).

Gail India dropped nearly 5% to Rs 238. Gail India reported a 69.7% growth
in Q2 September 2005 net profit to Rs 774 crore (Rs 456 crore). Net sales
rose 16.8% to Rs 3601 crore from Rs 3081 crore.

Mercator Lines plummeted 6.6% to Rs 102.10 after the company reported flat
Q2 September 2005 results. The company reported a net profit of Rs 31.59
crore as compared to a net profit of Rs 31.64 crore for Q2 September 2004.
Net sales rose 7.8% to Rs 134.65 crore (Rs 124.91 crore).

Essar Shipping tumbled 7.5% to Rs 28.20 after the company reported a 60%
fall in Q2 September 2005 net profit to Rs 12.34 crore (Rs 30.89 crore). Net
sales declined 31.4% to Rs 153.10 crore (Rs 223.11 crore).

Indian Rayon nudged up 1.6% to Rs 599.50 after the company reported a surge
in Q2 September 2005 net profit. Indian Rayon reported 56.4% growth in Q2
September 2005 net profit to Rs 38.59 crore (Rs 24.67 crore). Total income
rose 21.1% to Rs 569.94 crore (Rs 470.39 crore).

Gujarat Gas inched up 1.1% to Rs 1,096 after the company reported 53.5%
growth in Q3 September 2005 net profit to Rs 24.45 crore (Rs 15.92 crore).
Net sales rose 12.8% to Rs 160.48 crore (Rs 142.21 crore).

Engineers India spurted 6% to Rs 660 after the company reported a 28.8%
growth in Q2 September 2005 net profit to Rs 32.71 crore (Rs 26.80 crore). A
surge in other income by 30% to Rs 19.45 crore (Rs 14.88 crore) boosted Q2
bottom line. Net sales rose 12.3% to Rs 175.88 crore (Rs 156.58 crore).

Ciba Specialty Chemicals spiraled up 8.4% to Rs 414 on the back of robust Q2
September 2005 results. Ciba Specialty Chemicals (India) (CSCI) has reported
a 66.6% surge in Q2 September 2005 net profit to Rs 14 crore as against the
Rs 8.40 crore registered in Q2 September 2004. Net sales have spiraled up
13.9% to Rs 159.70 crore (Rs 140.20 crore).

Lumax Industries plunged 18.6% to Rs 106 after the company reported a sharp
fall in Q2 September 2005 net profit. Lumax Industries’ net profit declined
91.7% in Q2 September 2005 to Rs 0.22 crore (Rs 2.65 crore). Net sales rose
38% to Rs 98.07 crore (Rs 71.03 crore).

KEC International gained 4.4% to Rs 245 on the back of robust Q2 September
2005 results. For Q2 September 2005, KEC has registered a 67.6% growth in
net profit to Rs 15.49 crore compared to Rs 9.24 crore in Q2 September 2004.
Top line growth was behind the strong bottom line growth. Net sales jumped
55.2% to Rs 412.72 crore (Rs 265.78 crore).

TVS Motors lost 5% to Rs 88 after the company reported a 7% fall in Q2
September 2005 net profit to Rs 31.95 crore (Rs 34.24 crore). Net sales rose
6.2% to Rs 789.23 crore (Rs 742.87 crore).

EIH gained 2.5% to Rs 451.75 on the back of strong Q2 results. EIH has
reported a net profit of Rs 8.03 crore for Q2 September 2005 as compared to
a net loss of Rs 4.94 crore in Q2 September 2004. Total income has risen
27.2% to Rs 160.60 crore from Rs 126.19 crore.

source:capitalmarket

2 Comments:

Blogger www.ShareTipsInfo.com Team said...

Dear Visitors,

This blog is really nice and informative. We are pleased to know this blog is really helping people. Its our pleasure to post informative content on this useful blog created by webmaster.

Time changes and with every passing day graphs of stock market changes which in turn changes the portfolio of investor. Like recent fall in Indian stock market
has ruined the portfolio of investors
who were invested in Nse and Bse
listed scripts. They have lost around say 60% of there money. But now once again after that correction in stock market Nifty and Sensex has picked up momentum. But
we again warns all investors that don’t be too over tempted by this rise as its just a minor upmove. Until Nifty doesn’t close above 5300 for 3-4 sessions we are not at all bullish in market. So invest in market for short term or prefer day trading commonly known as Intraday trading.

Apart from it rising price of Crude oil, Rising Inflation is a matter of concern. Though dollar is becoming stronger that will boost IT sector and Exporters.

All in all we suggest be in Indian stock market and if you are investor invest with the proper strategies like go Long for maximum 1 week that too with proper stoploss and target.
If you are day trader be a strict intraday trader then , clear your goals and trade with strict stoploss and target if you want to earn.



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2:53 AM  
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