Key benchmark indices hit the day's low in mid-morning trade as some Asian stocks slipped into the red. The BSE 30-share Sensex was down 92.73 points, or 1.01%, off close to 137 points from the day's high.
After opening on a positive note tracking firm Asian stocks, the market soon fell into the red as investor sentiment remained edgy on heavy selling by foreign institutional investors this year. The market soon regained positive zone. The market weakened in morning trade
Foreign funds have sold shares worth Rs 4435 crore in calendar year 2009 so far (till 3 February 2009). Domestic funds have absorbed selling by foreign funds. Domestic funds provisionally bought shares worth a net Rs 284 crore on Wednesday, 4 February 2009. In calendar 2009, domestic funds have bought shares worth a net Rs 3,832.90 crore, as per BSE data.
Some Asian stocks swung between gains and losses even as markets in China and Hong Kong held firm on speculation stimulus in China will boost demand for metals and transport services. Key benchmark indices in Hong Kong and China, were up by between 0.42% to 2.69%. Key benchmark indices in Japan, Singapore and Taiwan fell by between 0.61% to 0.94%.
An improved manufacturing data in China has raised hopes that its downturn may be bottoming out. Data during trading hours in Asia on Wednesday showed China's official purchasing managers' index rose, even though it remained below a reading of 50 that divides expansion from contraction. The index rose to 45.3 for January 2009, up from 41.2 in December 2008 and a record low of 38.8 plumbed in November 2008.
China unveiled an eye-popping $585 billion spending plan in November 2008, and central bank governor Zhou Xiaochuan said in remarks published on Wednesday that the pump-priming had a positive impact.
US stocks fell on Wednesday, 4 February 2009, as a glum profit forecast from the top North American food maker Kraft Foods signaled consumers are skimping even on the basics and investors worried that government efforts to rescue banks could wipe out their shareholders. Even so, a report showing that the vast service sector shrank less than expected in January 2009 spurred technology gains, helping the Nasdaq finish near break-even. But that was before Cisco Systems Inc, the network equipment maker that is a tech bellwether, forecast a slide of as much as 20% in its current quarter revenue, hitting other tech shares after the bell.
The Dow Jones industrial average fell 121.70 points, or 1.51%, to 7,956.66. The Standard & Poor's 500 Index shed 6.28 points, or 0.75%, to 832.23. The Nasdaq Composite Index dipped 1.25 points, or 0.08%, to 1,515.05.
At 11:23 IST, the BSE 30-share Sensex was down 92.73 points, or 1.01%, to 9,108.68. The Sensex rose 45.24 points at the day's high of 9,247.09 in early trade. The Sensex fell 94.03 points at the day's low of 9,107.82 in mid-morning trade.
The S&P CNX Nifty was down 9.35 points, or 0.33%, to 2,793.70.
The market breadth, indicating the overall health of the market, was negative on BSE with 903 shares advancing as compared with 1,024 that declined. A total of 75 shares remained unchanged.
Among the 30-share Sensex pack, 22 fell while rest gained. Mahindra & Mahindra, Maruti Suzuki India, DLF fell by between 1.9% to 3.22%.
India's largest private sector company by market capitalization and oil refiner Reliance Industries (RIL) fell 0.86% to Rs 1,296.20 on profit booking. From a recent low of Rs 1,080.90 on 13 January 2009 the stock gained 20.95% to Rs 1,307.40 on 4 February 2009.
India's largest oil exploration firm by revenue ONGC rose 0.52% on reports it may revive the proposed 15-million tonne refinery project in Rajasthan which it had aborted more than a year ago.
PSU OMCs rose after the government issued oil bonds amounting to Rs 21942 crore to three oil marketing companies Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) to compensate them for their losses (under-recoveries) due to selling fuels below the market price. BPCL and HPCL rose by between 0.43% to 0.45%. But IOC lost 0.58%.
The government issued Rs 11,943.93 crore bonds to IOC, Rs 5,316.71 crore to BPCL and Rs 4681.36 crore to HPCL.
India's largest engineering and construction firm by sales Larsen & Toubro (L&T) fell 1.15% as investors were skeptical of about its interest in fraud-hit IT firm Satyam Computer. L&T, which holds a 12% stake in Satyam, is considered as a strong contender to acquire the software exporter firm.
Metal stocks extended yesterday's (4 February 2009) gain as improved manufacturing data in China on Wednesday suggested its downturn may be bottoming out. Tata Steel, Steel Authority of India, Hindustan Zinc, Sterlite Industries National Aluminum Company and Hindalco Industries rose by between 0.45% to 4.92%. China is the world's largest consumer of industrial metals.
Banking stocks fell on fears of rising defaults in a weakening economy. India's largest bank in terms of assets and branch network State Bank of India fel
Source : Capitalmarket.com
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