Sensex down 61 pts on profit-booking

Sensex fell by 61.35 points to 18,480.96 with stocks of metal,auto and banking sectors leading the fall.

Written by Agencies | Mumbai | Published: September 18, 2012 9:31 am

Snapping a nine-day long rally,the BSE benchmark Sensex today fell by over 61 points in early trade as funds and retail investors indulged in profit-booking at prevailing higher levels amid weak trend in Asian markets.

The 30-share index fell by 61.35 points,or 0.30 per cent,to 18,480.96 with stocks of metal,auto and banking sectors leading the fall.

Sensex had gained over 1,230 points in the previous nine sessions to touch 14-month high on the back of broad-based buying by funds and retail investors,triggered by the government decisions to accelerate economic reforms by allowing FDI in organised retail and aviation,among others.

Similarly,the wide-based National Stock Exchange index Nifty declined by 23.55 points,or 0.41 per cent,to 5,586.45.

Brokers said besides profit-booking by speculators after recent significant gains,a weak trend on Asian bourses mainly influenced the trading sentiment here.

In Asian region,Hong Kong’s Hang Seng index fell by 0.17 per cent,while Japan’s Nikkei Index shed 0.04 per cent in the morning trade today.

The US Dow Jones Industrial Average had ended 0.30 per cent lower in yesterday’s trade.

Indian stocks to watch-Sept 18

GLOBAL MARKETS

Nifty futures on Singapore Exchange were up 0.1 percent,while the MSCI-Asia Pacific index excluding Japan was down 0.3 percent.

U.S. stocks fell on Monday in light trading after a rally that drove the S&P 500 last week to its highest level in nearly five years and as falling oil prices hit energy shares.

Asian shares retreated from four-month highs on Tuesday as markets paused from last week’s rallies,calculating the impact on growth from the Federal Reserve’s aggressive stimulus and eyeing whether Spain will request a bailout to ease its fiscal strains.

FACTORS TO WATCH

India’s Planning Commission head Montek Singh Ahluwalia,head of Prime Minister’s Economic Advisory Council C Rangarajan and other policy makers at summit. (0345GMT onwards)

India Finance Minister at a National Stock Exchange Event. (0515GMT)

India will release consumer price index data for August.(0530 GMT)

Trinamool Congress,the Congress Party’s biggest ally,will meet in the eastern city of Kolkata this evening to review its support to India’s ruling coalition government over the reforms push by Prime Minister Manmohan Singh.

Subir Gokarn,a deputy governor at the Reserve Bank of India at event. (1400GMT)

INDIAN STOCKS TO WATCH

TOP NEWS

India would be lucky to meet a target to keep the country’s fiscal deficit at 5.1 percent of the gross domestic product (GDP),Finance Minister P. Chidambaram said on Monday.

India will take additional fiscal consolidation measures by the end of October to boost growth,the country’s finance minister said,adding he expects the central bank to take more supportive measures in its next policy review.

FINANCIAL/REGULATORY

Despite the overall gloom in the economy,advance tax collections from the top 100 companies were higher by 10 per cent for the September quarter,according to a senior tax department official.

The loan rate for consumer segments such as home and automobile loan rates might see a further fall,following a reduction in the cash reserve ratio.

TELECOMS/IT

Indian software services provider Tech Mahindra has agreed to buy 51 percent of Comviva Ltd.,a mobile phone software maker,the company told reporters on Monday.

Britain’s Vodafone,locked in a $2.2-billion tax dispute in India,has said it is consulting on the need to make provisions towards legal risks in the country,triggering talk it may be preparing for a settlement with the tax authorities.

Google is eating into the market of Indian IT services providers by aggressively selling its products and technology solutions to small and medium businesses,which are estimated to spend $15 billion on technology by 2015.

Mobile phone companies that win spectrum in the upcoming 2G airwaves auction will receive unified licences at the circle level and will be allowed to migrate to the full unified licensing regime by December,a senior telecom ministry official said.

ENERGY/COMMODITIES

JSW Steel and Himachal Emta Power lost a coal block in West Bengal,while Tata Power and Hindalco Industries are likely to lose the bank guarantee for their block in Jharkhand.

Sajjan Jindal is on the prowl for acquiring coking coal assets in Australia and Canada to fire furnaces of his 14.3-mtpa steel facilities in the state of Karnataka,even as raging controversies over ‘illegal mining’ threaten to disrupt his plans to nearly treble capacity in eight years.

After two months of losses,oil marketing companies (OMCs) have started making profits on sale of petrol,thanks to the softening global price and an excise cut announced by the government last week.

Power distribution companies would now have to bear a heavier penalty for breaching grid discipline.

PHARMA

An Indian patents appeals board on Friday dismissed Bayer AG’s petition seeking a stay on the compulsory license issued to India’s Natco Pharma for selling generic copies of cancer drug Nexavar in India,a spokesman for the board said.

The country’s second-largest pharmaceuticals company,Cipla ,is in talks with an international health group to expand its contraceptive pills market. The drugmaker has held preliminary talks with London-based International Planned Parenthood,an organisation that promotes sexual and reproductive health,for supplying drugs in Africa and South Asian countries and collaborating in research in the contraceptives segment.

HOTELS/REALTY

Strengthening its luxury hotel portfolio,ITC has launched Grand Chola in Chennai.

With decks cleared for multi-brand retail giants to enter India,the country’s real estate developers are busy drawing up plans to tap the fresh demand the development will generate in the commercial realty sector.

AUTO

Tata Motors Ltd’s global vehicle sales rose 13 percent in August from a year earlier,the Indian company said,with sales at its key Jaguar Land Rover subsidiary rising 13 percent,less than in recent months.

Mercedes Benz is launching the B class,a compact sports tourer,with a sub-Rs 25 lakh price tag,its cheapest car in India yet. And it will go further down the price spectrum in the first quarter of 2013 when it launches its entry-level model,the A class for under Rs 20 lakh.

MEDIA

Deccan Chargers,the Hyderabad franchise of the Indian Premier League (IPL),the contract of which was terminated by the Board of Control for Cricket in India (BCCI),has got a breather from the high court,till September 24.

OTHER FACTORS TO WATCH

Indian debt/FX factors to watch

Yen under pressure ahead of BOJ,euro near 4-mth high

Oil plunges in rapid afternoon selloff,CFTC looking into trades

Foreign institutional investor flows

For closing rates of Indian ADRs

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