Equities were battered at the start of the week owing to the weak sentiment caused by political uncertainty, soaring crude oil prices and higher inflation. The market saw renewed buying as global markets surged as soaring crude oil prices showed sings of abatement falling below USD 130 mark after hitting record high recently. Sensex gained more than 1,050 points in last two days of the week. The government is seeking a vote of confidence in parliament early next week, which would set direction for the market, a leading broker said.
Fitch Ratings on 15 July 2008, lowered India's domestic rating outlook to negative from stable due to the central government's worsening fiscal position. The change in outlook was also partly due to a notable increase in government debt issuance to finance subsidies not reflected in the budget.
The monsoon rains are likely to remain subdued in central, western and southern parts of the country over the next week, the government said on 17 July 2008. Rainfall between 1 June 2008 to 15 July 2008 was 6 per cent above the normal long-period average, the government said. This would be reflected in downward move in economic growth rate also Sensex would suffer in coming days, a leading broker pointed out.
Inflation based on the wholesale price index rose by 11.91 per cent in 12 months to July 5 2008, just above the previous week's annual rise of 11.89 per cent, government data released on July 17 2008, showed. It is the highest reading since annual numbers in the current series became available in April 1995.
The BSE Mid-Cap index shed 125.95 points or 2.35 per cent to 5,239.39. The BSE Small-Cap index fell 257.77 points or 3.84 per cent to 6,455.89.
Foreign Institutional Investors (FIIs) sold shares worth Rs 2,235.70 crore in the month of July 2008 so far, till July 17, 2008.
FIIs sold shares worth Rs 27,701 crore in the calendar year 2008.
Mutual funds have bought shares worth Rs 522.90 crore in the month of July 2008 till July 17 2008.
India's largest IT exporter by sales Tata Consultancy Services fell 0.53 per cent to Rs 794.95. The Company reported 8.58 per cent rise in net profit to Rs 1,204.01 crore on a 5.99 per cent increase in total income to Rs 5,321.88 crore in Q1 June 2008 over Q4 March 2007.
. India's largest home loan lender by sales Housing Development Finance Corporation rose by 3.35 per cent to Rs 2,067.55. The Company reported 25.56 per cent rise in net profit to Rs 468.11 crore on a 26.67 per cent increase in total income to Rs 2,318.62 in Q1 June 2008 over Q1 June 2007.
The world's sixth largest steel maker by sales Tata Steel fell 11.03 per cent to Rs 592.65 in the week. Recent reports suggested the Company is looking at acquiring an iron ore mine in Western Australia to supply iron ore to Corus' plants.
India's largest drugmaker by sales Ranbaxy Laboratories slumped 17.69 per cent to Rs 435.45 . The stock plunged after the US drug regulator, charged Ranbaxy with selling unsafe medicines in the US and reports were rife that these allegations could derail plans of the Company's promoters to sell their 34.8 per cent stake to Japanese drug major Daiichi Sankyo. Ranbaxy accused its corporate rivals for the hammering in the stock and said its deal with Daiichi Sankyo was binding and final.
India's largest state-run oil exploration firm in terms of revenue ONGC surged 10.99 per cent to Rs 942.60. Reports said the Company may possibly buy an equity interest in the UK-based Imperial Energy Corporation.
India's second largest listed telecom services provider by sales Reliance Communication fell 0.62 per cent to Rs 435.20. As per reports the firm received a notice for arbitration from Reliance Industries over the Company's merger talks with South Africa's MTN Group. RCom and MTN, Africa's largest mobile- phone company, are in exclusive negotiations to combine their businesses. RIL last month threatened to block any stake sale in RCom that does not give RIL an opportunity to buy the shares.
India's third largest IT services provider by sales Satyam Computer Services lost 13.84 per cent to Rs 382.95. The Company reported 17.32 per cent rise in consolidated net profit to Rs 547.70 crore on 8.47 per cent increase in sales to Rs 2,620.83 crore in Q1 June 2008 over Q4 March 2008.
India's fourth largest IT services provider by sales Wipro dropped 11.34 to Rs 365.55. On standalone basis, Wipro reported a 34 per cent fall in net profit to Rs 546 crore on 10.45 per cent decline in total income to Rs 4,807.4 crore in Q1 June 2008 over Q4 March 2007.
ICICI Bank was up 4.4 per cent to Rs 617.60, Reliance Industries moved up 4.77 per cent to Rs 2,112.65, Larsen &Toubro rose by 7.97 per cent to Rs 2,545.10, Bharat Heavy Electricals hiked by 0.59 per cent to Rs 1,530.25 edged higher in the week.