Stock and Business news

The Bombay Stock Exchange (BSE)’’s Sensitive Index (Sensex) tumbled more than five per cent on Thursday, led by losses in top-listed Reliance Industries and financial stocks, joining the rest of Asia in a broad sell-off after U. S. markets plunged.

By noon, the 30-share BSE index was down five per cent at 8,335.02, after falling as low as 8,316.39.

This was its lowest since October 27, when it touched a three-year low of 7,697.39.

The 50-share National Stock Exchange (NSE) index was down 4.33 per cent at 2,520.90.

Later, at 2:30 p. m., sensex was at 8396, down by 376 points or 4.30 per cent.

Traders said they were hoping for a rate cut by the Reserve Bank over the next few days, their expectations fuelled by falling inflation.

Experts say that with the US Federal Reserve slashing the growth forecasts through 2009 and with chances of even deeper interest rate cuts, fears of a further slowdown are sinking in.

“This is the seventh straight day that the index is on a losing street and that too more than 300 points. This is something, which is unusual but these are unusual times and on Wednesday we saw US market tanking by 400 points because now they fear that the Fed (Federal Reserve) expectation of the US Gross Domestic Product (GDP) to be negative and today the Asian markets were also down. So I think (in view of) these problems and these kinds of recessionary situations it seems (this situation) will remain longer than what originally people had thought,” said Sunil Shah, a market expert.

Private-sector lender ICICI Bank fell 7.1 per cent, while HDFC Bank lost 6.2 per cent and mortgage lender Housing Development Finance Corp eased 5.8 per cent as financial stocks extended losses on fresh fears of rising defaults.

Reliance Industries, with the maximum weightage in the index, fell 5.2 per cent to 1,072.90 rupees, extending its losses this year to 63 per cent.

Meanwhile, software exporters fell as the slowdown in key U. S. and European markets raised revenue concerns.

India’’s annual inflation rate for the week to November 8 fell to 8.90 per cent, marginally below the previous weeks annual rate of 8.98 per cent.

The benchmark index has been one of Asia’’s worst performers this year losing more than 58 per cent. All of its components fell on Thursday, while in the broader market
1,614 losers outpaced.

Big falls in the United States and bad news from Japan spooked Asian markets. U. S. shares fell to five and a half year lows after the Federal Reserve slashed its economic growth forecasts for 2009.

Japan reported its exports posted their biggest annual decline in seven years in October.

Asian stock markets took heavy losses Thursday, reflecting widespread gloom about US economic troubles and another bad day on Wall Street.

Japan’s key Nikkei 225 Stock Average plummeted nearly 7 per cent, ending the day below the 8,000 level.

Traders said the sell-off was the result of mounting concern over the US economy, particularly the Big Three automakers’ financial fate.

The Nikkei 225 Stock Average tumbled 570.18 points, or 6.89 per cent, to close at 7,703.04.

The broader Topix index of all first-section issues also fell 45.15 points, or 5.46 per cent, to 782.28.

The Tokyo players dumped mostly export-oriented issues on the stronger yen and on Wall Street’s plunge overnight after the news about US legislators’ reluctance to provide a rescue plan to the three US automakers.

Hong Kong stocks fell 4.04 per cent, joining a regional downward spiral in share prices after the heavy overnight losses on Wall Street.

The blue-chip Hang Seng Index closed at 12,298, down 517 points. Turnover was 44.6 billion Hong Kong dollars (5.75 billion US dollars).

At one point, the index fell more than 6 per cent and threatened to close below 12,000; however, it bounced back slightly in later trading to stay above that barrier.

The fall came after the Dow Jones Industrial Average in the United States fell 5 per cent overnight to close below 8,000, triggering falls in regional markets.

Shares also crashed on the Seoul stock exchange on panic selling.

The benchmark Kospi index fell 68.13 points, or 6.7 per cent, to close at 948.69.

The main index of the technology-heavy Kosdaq market tumbled 24.35 points to 273.06.

Taiwan stocks shed nearly 5 per cent, with the TAIEX index falling 194.16 points, or 4.53 per cent, to close at 4,089.93.

Indonesian stocks dropped 2.15 per cent. The Jakarta Composite Index ended at 1,154.97, down 25.39 points.

Dealers said the decline was in line with falls in markets across Asia as well as the drop on Wall Street.

India’s benchmark Sensex fell by 4.84 per cent in early trade, extending its losses for the seventh straight session on heavy selling by funds and investors tracking weak global cues.

The 30-share-sensitive index of the Bombay Stock Exchange which has lost over 1,750 points over the last six sessions, fell by another
424.56 points to 8,349.22 after 90 minutes of trading up to 11:40 am (0610GMT).

Similarly, the broader 50-share Nifty index of the National Stock Exchange also dipped by 123.25 points, down 4.68 per cent.

Singapore share prices slid sharply, with the Straits Times Index falling 3.1 per cent, or 51.64 points, to close at 1,613.95.

Thai shares shed 3.59 per cent of their value, with the index crashing below the 400-point psychological barrier.

The Stock Exchange of Thailand (SET) index ended at 393.85, down 14.66 points or 3.59 per cent, on thin trading amounting to 8.8 billion baht (255.8 million dollars.)

“The biggest factor is still the global economy,” said Mongkol Phuangphaetha, an analyst at Asia Plus Securities.

Philippine share prices plunged 3.45 per cent. The 30-share composite of the Philippine Stock Exchange lost 65.85 points to close at
1,842.33 from Wednesday’s finish of 1,908.18.

Steep falls on Wall Street and fears of an impending recession at home dragged Australian stocks down. The ASX 200 gave up 146 points, or 4.3 per cent, to 3,206.

The New Zealand stock market followed the international downward trend but escaped with less damage than others, with the benchmark NZX-50 index closing down 2.3 per cent.

The index slumped to a four-year low, losing 62 points to 2,644, but suffered all that loss in morning trading and stabilised in the afternoon.

Indonesian stocks dropped 2.15 per cent Thursday, sparked by falls across Asia after US stocks sank to a five-year low.

The Jakarta Composite Index ended at 1,154.97, down 25.39 points.

Dealers said the decline was in line with falls in markets across Asia as well as the drop on Wall Street.

The Indonesian rupiah, meanwhile, tumbled to its weakest level since the Asian financial crisis a decade ago. The rupiah traded at 12,350 against the greenback at mid-day, dealers said.

Shares crashed Thursday on the Seoul stock exchange on panic selling after recession fears caused the US market to plunge to five-year-lows.

South Korea’s currency slid to a 10-year-low against the dollar.

The benchmark Kospi index fell 68.13 points, or 6.7 per cent, to close at 948.69.

Declining issues outnumbered advancers 791 to 66.

The main index of the technology-heavy Kosdaq market tumbled 24.35 points to 273.06.

On currency markets, the US dollar was quoted at 1,497.0 Korean won, down 50.50 won from Wednesday’s close of 1,446.50 won.

India’s benchmark Sensex fell by 4.84 per cent in early trade on Thursday, extending its losses for the seventh straight session on heavy selling by funds and investors tracking weak global cues.

The 30-share-sensitive index of the Bombay Stock Exchange which has lost over 1,750 points over the last six sessions, fell by another 424.56 points to 8,349.22 after 90 minutes of trading up to 11:40 am (0610GMT).

All sectoral indices were trading in the negative territory with major contributors to the fall being Reliance Industries, Infosys Technologies, Satyam Computers, Tata Consultancy, Wipro, ICICI Bank, HDFC Bank and Bharti Airtel.

Similarly, the broader 50-share Nifty index of the National Stock Exchange also dipped by 123.25 points, down 4.68 per cent.

Weakness in US markets, where the key Dow Jones index tanked 5.07 per cent on Wednesday, also impacted the Indian bourses.

Meanwhile, the Indian rupee depreciated by another 38 paise to a low of 50.40 against the dollar on increased capital outflows and strong demand for the US currency from importers amid weakening markets.

Philippine share prices plunged 3.45 per cent on Thursday, dragged down by Wall Street’s overnight losses as investors braced for a prolonged economic slump.

The 30-share composite of the Philippine Stock Exchange lost 65.85 points to close at 1,842.33 from Wednesday’s finish of 1,908.18.

A total 552.06 million shares worth 1.38 billion pesos (28.16 million dollars) were traded.

Losers led gainers 96 to 12, while 22 issues were unchanged.

Traders said investors were jittery after the Dow Jones industrial average tumbled 5.07 per cent overnight to its lowest level in five-and-a-half years.

Hong Kong stocks opened more than 5 per cent lower Thursday, joining a regional downward spiral in share prices following heavy overnight losses on Wall Street.

The blue-chip Hang Seng Index was down 690.71 points, or 5.39 per cent, in the first 10 minutes of trading Thursday, leaving the index at 12,125.09.

The losses come after the Dow Jones Index in the US fell 5 per cent overnight to close below 8,000 points, triggering falls in Asian markets including Australia, Japan and South Korea.

Hong Kong share prices have fallen by almost 40 per cent since dropping through the 20,000 barrier at the end of September.

Indian equities opened positively despite none too encouraging global signals and moved up further in subsequent trading session as investors went bargain hunting after five successive days of losses.

The 30-share index, BSE Sensex opened with a gain of 33.47 points, at 8,970.67 on Wednesday.

Metal stocks, among the severely battered in recent sessions, were among the top gainers, while Oil, real estate, banking, capital goods and power stocks also moved up sharply.

Moreover, the other sectors including FMCG, auto and PSU sectors also made smart gains this morning. Some IT and pharma stocks also zoomed up on heavy buying action.

BSE Midcap and Smallcap stocks have also risen sharply on account of good buying action.

In the previous day session, the Sensex closed the day after losing 353.81 points, while the NSE Nifty declined by 116.40 points, or 4.16%.

The overall breadth of the market was sharply positive.

At 10:28 a.m., the BSE Sensex stood at 9145.50, up 208.30 points. Meanwhile the broad based Nifty gained 57.55 points at 2740.70.

Major gainers in the 30-share index were Sterlite Industries, ACC, Grasim Industries, ITC, Jaiprakash Associates, Mahindra & Mahindra, Ranbaxy Laboratories, Tata Steel, Bharti Airtel, Hindustan Unilever, Infosys Technologies, BHEL, DLF, HDFC Bank, HDFC, Hindalco, ICICI Bank, Larsen & Toubro, Reliance Infrastructure, State Bank of India, Tata Motors, Tata Power, Satyam Computer Services.

China’s two stock markets soared by more than 6 per cent Wednesday, buoyed by speculation of more government economic measures and an overnight rally on Wall Street.

The key Shanghai Composite Index, which tracks shares traded in foreign and local currencies, gained 115.04 points, or 6.05 per cent, to close at 2,017.47.

The smaller Shenzhen Composite Index ended the day up 32.33 points, or 6.16 per cent, jumping to 557.31.

Both markets had lost more than 6 per cent Tuesday after strong gains last week and Monday.

State media attributed the rebound to speculation that the government would increase assistance to industries affected by the global financial crisis after a recent announcement of a 4-trillion-yuan (586-billion-dollar) package of infrastructure spending.

News that the government plans to introduce a long-awaited fuel tax also helped to boost shares in the auto and petrochemical industries.

Chinese auto firms, like those in the United States and Europe, are seeking government help amid forecasts that vehicle sales in China could rise by 5 per cent next year, compared with 22 per cent last year, the Shanghai Daily newspaper said.

Indian markets Wednesday snapped a five-session losing streak and were in the positive territory with the benchmark Sensex climbing 3 per cent to breach 9,000 levels.

The 30-share sensitive index, which dipped 3.8 per cent on Tuesday, gained 194.89 points and was quoted at 9,132.09, 15 minutes after trading opened.

The Bombay Stock Exchange’s barometer index was at 9,226.56 at 12.20 pm (06 50 GMT), up 3.24 per cent.

The broader 50-share S&P CNX Nifty of the National Stock Exchange also rose 85.40 points to 2,768.55, up by 3.18 per cent.

Market analysts said the bourses regained strength following overnight gains in the US markets.