8:00AM NY- 7:00PM Mumbai Sensex plunges on selling pressure, rupee surges.
The Sensex on BSE finished 161.61, or 1.22%, lower at 13,124.32. The market-breadth was weak as there were more than two decliners for each advancer. As 1,740 stocks declined, 843 advanced and 60 remained unchanged. Of the 30 stocks in the Sensex only four advanced, while the other 26 declined. The turnover on BSE was Rs 3,126 crore. On NSE, the turnover was Rs 6,753.15.
Economic news
The sugar industries received a boost as the government declared the creation of a buffer stock mechanism, as also export incentives for two years. There would be an export subsidy of Rs 1,350 per ton for coastal sugar mills and an export subsidy of Rs 1450 per ton for northern mills. There would be an incentive of Rs 440 per tonne for export of raw sugar.
The rupee surged sharply to near 20-month high of 43.4150/43.4250 against the U.S. dollar in late morning deals tracking sharp increase in forward dollar trading and local banks sold dollar holdings to relieve tight cash conditions in the banking system.
Arcelor Mittal announced on Sunday the company could build steel plants in two Indian states, rather than just one. Mittal had signed an initial agreement with the state government of the Jharkhand in 2005 to build a $9 billion steel plant there but progress has been slow on problems over securing an iron ore mine.
Trading highlights
Indiabulls Real Estate was the most-active stock with a turnover of Rs 261.70 crore followed by Reliance Communications and MindTree.
Advancers
IT large-cap Satyam Computers led the gainers, up 1.73% to Rs 472.2, on a volume of 5.15 lakh shares. ONGC added 1.2% to Rs 853.2 and Tata Steel advanced 0.7% to Rs 441.9. Reliance Comm gained slightly 0.2% to Rs 426.3. Reliance Communications is planning to set up an overseas initial public offering for its international communication subsidiary FLAG Telecom, and has short-listed four merchant bankers for the float.
Decliners
Tata Motors was the top-loser, down 4.51% to Rs 754, on 2.66 lakh shares traded on BSE, after dipping to a low of Rs 749.35. Maruti Udyog lost 2.48% to Rs 818.9, while Hero Honda lost 1.72% to Rs 667.9. HDFC Bank plunged 3.5% to Rs 976.
Bajaj Auto shed 0.34% to Rs 2,525. The company is planning to manufacture small car to compete with proposed car from Tata at one lakh rupees.
Other large-cap decliners included HDFC, off 2.03% to Rs 1,562 and Reliance Energy shedding 2.30% to Rs 475. Maruti and Wipro slipped 2.5% each to Rs 819 and Rs 586, respectively.
Index heavy Reliance Industries lost 0.74% to Rs 1,369, on a volume of 3.70 lakh shares. Reliance Industries informed BSE that a separate meeting of equity shareholders, secured creditors, including debenture-holders & unsecured creditors will be held on April 21, 2007, to approve merger of Indian Petrochemicals Corporation with the company.
7:00AM European equities declined Monday on weak utilities, Iran tensions.
European stocks were lower on Monday morning. German Xetra Dax lost 15.2 points, or 0.2%, at 6,884.09 and in Paris, the French CAC 40 eased 16 points, or 0.2%, at 5,619.16, the U.K. FTSE 100 index declined 0.1% to 6,331.50.
Advancers
Porsche announced it planned a buyout offer fo VW. Porsche rose 3.1%. Porsche was forced to launch an offer after exercising an option to take its stake above 30%, to 31% from 27.3%.
OMV gained 2% after Citigroup boosted its price target for the refiner and reiterated a buy recommendation. UK homebuilders surged. Taylor Woodrow shares rose 15.6% while Wimpey shares increased 10.4%.
French information technology services company Atos Origin shares rose 3.3% as it said that its supervisory board has decided to explore strategic options following recent expressions of interest in the company.
Decliners |
