As some arbitrageurs and jobbers stayed away from the market to protest change in tax treatment of the Securities Transaction Tax (STT) that came into force from today, low volumes saw share prices swing wildly on the first day of the new financial year FY 2009 (year ending March 2009). After opening on a firm note, market lost ground by early afternoon trade only to recover in mid-afternoon, led by recovery in index heavyweights Reliance Industries (RIL) and ICICI Bank. The market breadth was strong. 16 shares from the 30-member Sensex pack advanced.
European markets, which opened after Indian market extended gains after Swiss bank UBS AG unveiled a fresh attempt to reverse its fortunes and its writedowns came in along expected lines. UBS posted $19 billion in additional writedowns and said it was hiving off ailing portions of the bank into a separate unit. Asian markets, which opened before Indian market were mixed. US markets ended higher yesterday, 31 March 2008.
The 30-share BSE Sensex was down 17.82 points or 0.11% at 15,626.62. Sensex lost 342.59 points at days low of 15,301.85 touched in early afternoon trade. Sensex rose 189.61 points at days high of 15,834.05 hit in early trade. Sensex oscillated in a band of 532.20 points in volatile trade.
The broader based S&P CNX Nifty rose 5.05 points or 0.11% at 4,739.55. Nifty April 2008 futures were at 4775, a premium of 35.45 points as compared to spot closing
The market breadth was strong: On BSE 1,722 shares advanced as compared to 924 that declined. 51 shares remained unchanged.
The BSE Mid-Cap index was down 0.50% to 6,395.42 and the BSE Small-Cap index rose 0.31% to 7,865.90, as per provisional closing.
The total turnover slipped to Rs 4697 crore on BSE, as compared to Rs 5,941.63crore yesterday, 31 March 2008, probably due to absence of arbitrageurs.
Total turnover in NSEs futures & options segment amounted to Rs 47200.87 crore as compared to Rs 49087.03 crore yesterday, 31 March 2008.
The change in tax treatment of securities transaction tax (STT) is seen raising cost for arbitrageurs, which in turn may have resulted in fall in arbitrage volumes. STT will now be treated like any other deductible expenditure against business income of the assesses. This is against the earlier practice of 100% rebate for STT paid against the tax liability for the year.
Most Sectoral indices on BSE slipped. The BSE Consumer Durables index (up 0.10% to 3,887.15), the BSE FMCG index (up 2.06% at 2,337.27), and the BSE Oil & Gas index (up 3.36% to 10,353.72), outperformed the Sensex
However, the BSE IT index (down 0.20% to 3,540.59), the BSE Auto (down 1.22% at 4,469.60), the BSE Bankex (down 0.96% at 7,643.55), the BSE Realty index (down 1.17% at 7,466.48), the BSE Health Care index (down 0.44% at 3,831.32), the BSE TecK index (down 0.24% to 3,016.77), the BSE Power (down 1.16% to 3,152.66), the BSE Capital Goods index (down 3.21% at 13,559.93), the BSE Metal index (down 1.49% to 13,813.76), and the BSE PSU index (down 0.42% to 7,395.52), slipped.
Indias largest private sector company in terms of market capitalisation and oil refiner Reliance Industries advanced 2.97% to Rs 2331.80 on 10.48 lakh shares. The stock moved in a range of Rs 2245.50 and Rs 2375 during the day.
Indias largest FMCG company in terms of net sales. Hindustan Unilever jumped 4.39% to Rs 238.75 on 2.49 lakh shares. It was the top gainer from Sensex pack.
Reliance Energy, the countrys largest private sector power utility company in terms of net profit surged 3.11% to Rs 1290. The stock surged the most in Sensex pack, by 152%, in the financial year ended 31 March 2008. The company has bought back 9.51 lakh equity shares aggregating Rs 122.40 crore since the start of the buyback offer on Tuesday, 25 March 2008,
Indias largest software services exporter TCS advanced 3.16% to Rs 836.50 after it said on Monday, 31 March 2008, it had signed a five-year, multi-million dollar contract with auto components maker ArvinMeritor Inc. Financial details of the deal were not disclosed. The stock was the worst performer from Sensex pack, in the financial year ended 31 March 2008, declining 34%.
However other IT pivotals, Wirpo (down 3.60% to Rs 410), and Infosys (down 0.71% to Rs 1420), declined
North Indias largest cement maker by sales Ambuja Cements rose 0.29% to Rs 121.40 after it announced 16% rise in cement shipments to 1.72 million tonnes in March 2008 over March 2007.
ITC (up 2.25% to Rs 211), and Reliance Communications (up 2.90% to Rs 523.05), edged higher from Sensex pack.
Shares from capital goods witnessed a sell-off. Bharat Heavy Electricals, the countrys largest state run engineering company in terms of order book position, was down 8% to Rs 1892. It was the top loser from Sensex pack. On Monday, 31 March 2008, the company secured Rs 550-crore export order for supply of boilers from Koniambo Nickel SAS, an overseas joint venture of Switzerland-based mining group Xstrata PLC and a local company in New Caledonian.
Larsen & Toubro, the countrys largest private sector engineering company in terms of order book position, lost 4.80% to Rs 2880, after hitting low of Rs 2845. On Monday, 31 March 2008, the company bagged Rs 576 crore order from Hindustan Petroleum Corporation for 2 lakh tonne per annum lube oil base stock plant consisting of raffinate hydrotreating unit, mobil selective dewaxing unit and hydro finishing unit.
Tata Steel (down 3.77% to Rs 667), DLF (down 3.60% to Rs 623.20), and Mahindra & Mahindra (down 6.44% to Rs 650.85), slipped from Sensex pack.
Banking shares staged sharp recovery from lower levels. ICICI Bank (down 1.83% to Rs 756, after hitting a low of Rs 732) and HDFC Bank (down 1.13% to Rs 1305.10, after touching a low of Rs 1271), though down were well off their lower levels. Indias largest bank in terms of market capitalisation State Bank of India rose 1.45% to Rs 1622.
Indias largest car maker by sales Maruti Suzuki India declined 1.51% to Rs 817 after its sales declined 2% to 70,296 vehicles in March 2008 over March 2007. Maruti domestic sales remained flat at 64,421 units in March 2008 over March 2007. Its exports fell 19 %to 5,875 units in March 2008 over March 2007.
GSS America Systems was the top traded counter on BSE with turnover of Rs 468.38 crore. The stock saw high volatility today, swinging in a range of Rs 740.60 and Rs 865.
Reliance Capital (Rs 300.67 crore), Reliance Industries (Rs 243 crore), and Reliance Petroleum (Rs 211.09 crore), were the other turnover toppers on BSE in that order.
Unitech was the fifth top traded counter on BSE with turnover of Rs 157.32 crore boosted by a block deal of 40.09 lakh shares struck on the counter on BSE at Rs 277.90 per share at 10:16 IST. The stock fell 1% to Rs 273.40 on high volumes of 56.80 lakh shares.
Reliance Petroleum topped volumes charts on BSE clocking volumes of 1.30 crore shares followed by Reliance Natural Resources (1.22 crore shares), Ispat Industries (89.42 lakh shares), Bellary Steel (89.54 lakh shares), and Essar Oil (69.54 lakh shares), in that order
Among the side counters, Atul Auto (up 20% to Rs 62.45), Rajvir Industries (up 19.97% to Rs 137.90), Technocraft Industries (up 19.96% to Rs 62.50), and Indowind Energy (up 19.94% to Rs 81.80), surged.
However Bosch Chasiss Systems (down 10% to Rs 621.90), Setco Automotive (down 13.06% to Rs 169.10), and Panama Petrochemicals (down 9.92% to Rs 124), slipped
Reliance Petroleum surged 6.75% to Rs 166.80 after the company said has executed a facility agreement to raise $500 million for the refinery project at Jamnagar, Gujarat.
Punj Lloyd slipped 0.53% to Rs 905.60 despite winning an order worth $68 million from Tecnimont S.p.A, Italy for borouge 2 polyolefins project of Abu Dhabi Polymers Company, UAE. The company made this announcement during trading hours on Monday, 31 March 2008.
Dr Reddy's Laboratories gained 1.02
Source: Capital Market
