The White House and congressional leaders agreed on a deal to authorize the biggest banking rescue in U.S. history.
The $700 billion program would effectively nationalize an array of mortgages and securities backed by them -- instruments whose deteriorating value has clogged the nation's financial system.
Lawmakers finished writing the bill late Sunday, after which Speaker of the House Nancy Pelosi declared it "frozen," meaning no changes would be made. The bill leaves many mechanics of the operation up to the Treasury. Among these are the crucial issues of how the U.S. government would decide which assets it will buy and how it would decide what to pay for them. The legislation leaves the Treasury 45 days to issue guidelines on those procedures. The bill awaits votes in Congress starting on Monday.
From big Wall Street houses to small community banks, executives have expressed an interest in signing up for the bailout. But some have said the extent of their involvement will depend on critical details.
The political fallout from the bailout could be substantial, given the enormous expenditure of taxpayer money. Some polls show wide opposition. But the legislation includes provisions designed to guard against ultimate losses for the government. And it calls on the Treasury, as an owner of mortgage securities, to "encourage the servicers of the underlying mortgages" to minimize foreclosures.
The deal came after tension-filled weekend negotiations, where the specter of a faltering economy collided with the politics of a presidential election to create one of the biggest congressional dramas of recent years. Saturday included a high-decibel exchange between Treasury Secretary Henry Paulson and congressional Democrats, a ban on handheld email devices to forestall news leaks, and a battery of lobbying calls from the president and the presidential candidates.
Monday, September 29, 2008
Saturday, September 27, 2008
Bailout Compromise Gets New Life
Courtesy - Wall Street Journel
Negotiations Resume, With Nod to Conservatives' Objections
WASHINGTON -- The Bush administration and Congress closed in on a new compromise aimed at stabilizing U.S. financial markets, a move designed to assuage conservatives who one day earlier had staged a revolt against the controversial $700 billion project.
The potential compromise isn't yet final, and details could change. But as of Friday night it appears that the plan's central elements, as originally envisioned by the Treasury Department, remain intact.
Congressional leaders were planning for possible votes Sunday.
The renewed effort represents a remarkable turnaround from the fracas that engulfed Washington Thursday night. In a sign of the political tensions at play, an earlier compromise plan was thrown into disarray after a White House meeting of top leaders -- including the two presidential candidates -- descended into a shouting match.
Republican nominee Sen. John McCain had returned to Washington to attend bailout negotiations. But the interjection of the presidential campaign, and the resulting finger-pointing, upset the delicate balance that had been struck in negotiations between congressional Democrats and Treasury Secretary Henry Paulson.
"I would hope the two presidentials would go to the debate tonight and leave us alone to get our work done here," said Sen. Harry Reid, a Nevada Democrat, sounding exhausted on the Senate floor Friday morning.
Under the Bush plan, the Treasury Department would be able to buy $700 billion of toxic investments currently burdening many financial institutions. The hope is that doing so would encourage investors to recapitalize the struggling banks, and get the nation's bond markets working again.
It would also, however, put taxpayers on the hook for potential losses if the investments bought by the government didn't later recover some of their value.
House Republicans, antsy about the power granted to the Treasury under that original plan, wanted to replace it with one based on an insurance model: Banks would pay premiums into a pool of money that would then be used to cover losses on the bad assets in question.
Treasury officials had earlier told lawmakers the concept was unworkable, people familiar with the matter said. Indeed, officials there briefly considered it, but concluded it wouldn't be as effective in clearing the rot from banks' balance sheets.
The compromise being hammered out Friday night would graft the insurance concept onto the original Treasury plan, most likely as an option. That would satisfy the administration, which could chose not to use it, as well as conservative lawmakers, who can claim to have influenced the legislation.
The White House has already agreed to other Democratic demands for the bailout, including greater oversight of the plan, and pay curbs for executives at some companies that benefit from the bailout.
The administration also agreed to a commitment to help struggling homeowners. And it agreed for the $700 billion to be released in installments; $250 billion would be made available immediately.
As Friday unfolded, Democrats signaled a willingness to consider including some version of the insurance proposal. "Adding insurance as an option...that's never been an issue," said Rep. Barney Frank (D., Mass.), chairman of the House Financial Services Committee and a lead negotiator.
At a late-afternoon news conference, House Speaker Nancy Pelosi sounded conciliatory, suggesting that Mr. Paulson should have "the latitude to accept any and all proposals," so long as they don't interfere with the core goals of the bailout plan.
The unexpected opposition from House Republicans on Thursday had thrown into chaos efforts to craft a rescue package for the financial markets. Democratic leaders of the House and Senate, after working with the Bush White House for several days on details, said they felt blindsided by the Republican move.
The face-off reflected years of tension between the Bush White House and House Republicans, and exposed the ideological differences within the Republican Party over the role of government in free markets.
President George W. Bush, who urged lawmakers to "rise to the occasion" Friday, has said his first instinct is to not intervene in the market. But he became convinced of the need after Mr. Paulson and Federal Reserve Chairman Ben Bernanke warned that the financial crisis could spread to Main Street from Wall Street and throw the country into a deep recession.
Many Senate Republicans, including Bob Bennett of Utah and Judd Gregg of New Hampshire, have tried to be supportive of the White House's efforts to find common ground with Democrats. But conservatives who dominate the Republican Party's caucus in the House have been less amenable, particularly those disaffected with the Bush administration's sizable domestic spending and the realities of life as a minority party.
Rep. Tom Davis (R., Va.) said Republicans have felt like "bystanders" the past two years and wanted to be brought into the negotiations as full partners. Democrats "have got to come and meet us halfway," he said.
By midweek, it became clear that only a couple dozen of the 199 House Republicans were likely to support the plan in its existing form.
House Republicans say their alternative proposal would bring stability and new capital to the market. It would also remove regulatory barriers that they say block private investors from investing capital into ailing financial institutions.
"We were simply trying to come up with a constructive solution to break an impasse," said Rep. Paul Ryan (R., Wis.), who outlined the plan to Sen. McCain in a meeting Thursday.
The struggle over the bailout bill represents one of the most dramatic congressional showdowns of recent years. In 1990, the Democratic House voted down a major deficit-reduction package backed by the administration of the first President Bush. The package was later brought back to the floor and approved, but only after changes that tilted the measure to the left.
A few years later, the Republican-controlled Congress balked at the Clinton administration's plans to help rescue Mexico's economy, forcing the administration to use other measures to achieve its goals.
At a closed-door meeting of House Republicans on Friday, House Minority Leader John Boehner and other party leaders received an ovation for having resisted pressure to support the Bush-backed package during a White House meeting the previous day.
Negotiations Resume, With Nod to Conservatives' Objections
WASHINGTON -- The Bush administration and Congress closed in on a new compromise aimed at stabilizing U.S. financial markets, a move designed to assuage conservatives who one day earlier had staged a revolt against the controversial $700 billion project.
The potential compromise isn't yet final, and details could change. But as of Friday night it appears that the plan's central elements, as originally envisioned by the Treasury Department, remain intact.
Congressional leaders were planning for possible votes Sunday.
The renewed effort represents a remarkable turnaround from the fracas that engulfed Washington Thursday night. In a sign of the political tensions at play, an earlier compromise plan was thrown into disarray after a White House meeting of top leaders -- including the two presidential candidates -- descended into a shouting match.
Republican nominee Sen. John McCain had returned to Washington to attend bailout negotiations. But the interjection of the presidential campaign, and the resulting finger-pointing, upset the delicate balance that had been struck in negotiations between congressional Democrats and Treasury Secretary Henry Paulson.
"I would hope the two presidentials would go to the debate tonight and leave us alone to get our work done here," said Sen. Harry Reid, a Nevada Democrat, sounding exhausted on the Senate floor Friday morning.
Under the Bush plan, the Treasury Department would be able to buy $700 billion of toxic investments currently burdening many financial institutions. The hope is that doing so would encourage investors to recapitalize the struggling banks, and get the nation's bond markets working again.
It would also, however, put taxpayers on the hook for potential losses if the investments bought by the government didn't later recover some of their value.
House Republicans, antsy about the power granted to the Treasury under that original plan, wanted to replace it with one based on an insurance model: Banks would pay premiums into a pool of money that would then be used to cover losses on the bad assets in question.
Treasury officials had earlier told lawmakers the concept was unworkable, people familiar with the matter said. Indeed, officials there briefly considered it, but concluded it wouldn't be as effective in clearing the rot from banks' balance sheets.
The compromise being hammered out Friday night would graft the insurance concept onto the original Treasury plan, most likely as an option. That would satisfy the administration, which could chose not to use it, as well as conservative lawmakers, who can claim to have influenced the legislation.
The White House has already agreed to other Democratic demands for the bailout, including greater oversight of the plan, and pay curbs for executives at some companies that benefit from the bailout.
The administration also agreed to a commitment to help struggling homeowners. And it agreed for the $700 billion to be released in installments; $250 billion would be made available immediately.
As Friday unfolded, Democrats signaled a willingness to consider including some version of the insurance proposal. "Adding insurance as an option...that's never been an issue," said Rep. Barney Frank (D., Mass.), chairman of the House Financial Services Committee and a lead negotiator.
At a late-afternoon news conference, House Speaker Nancy Pelosi sounded conciliatory, suggesting that Mr. Paulson should have "the latitude to accept any and all proposals," so long as they don't interfere with the core goals of the bailout plan.
The unexpected opposition from House Republicans on Thursday had thrown into chaos efforts to craft a rescue package for the financial markets. Democratic leaders of the House and Senate, after working with the Bush White House for several days on details, said they felt blindsided by the Republican move.
The face-off reflected years of tension between the Bush White House and House Republicans, and exposed the ideological differences within the Republican Party over the role of government in free markets.
President George W. Bush, who urged lawmakers to "rise to the occasion" Friday, has said his first instinct is to not intervene in the market. But he became convinced of the need after Mr. Paulson and Federal Reserve Chairman Ben Bernanke warned that the financial crisis could spread to Main Street from Wall Street and throw the country into a deep recession.
Many Senate Republicans, including Bob Bennett of Utah and Judd Gregg of New Hampshire, have tried to be supportive of the White House's efforts to find common ground with Democrats. But conservatives who dominate the Republican Party's caucus in the House have been less amenable, particularly those disaffected with the Bush administration's sizable domestic spending and the realities of life as a minority party.
Rep. Tom Davis (R., Va.) said Republicans have felt like "bystanders" the past two years and wanted to be brought into the negotiations as full partners. Democrats "have got to come and meet us halfway," he said.
By midweek, it became clear that only a couple dozen of the 199 House Republicans were likely to support the plan in its existing form.
House Republicans say their alternative proposal would bring stability and new capital to the market. It would also remove regulatory barriers that they say block private investors from investing capital into ailing financial institutions.
"We were simply trying to come up with a constructive solution to break an impasse," said Rep. Paul Ryan (R., Wis.), who outlined the plan to Sen. McCain in a meeting Thursday.
The struggle over the bailout bill represents one of the most dramatic congressional showdowns of recent years. In 1990, the Democratic House voted down a major deficit-reduction package backed by the administration of the first President Bush. The package was later brought back to the floor and approved, but only after changes that tilted the measure to the left.
A few years later, the Republican-controlled Congress balked at the Clinton administration's plans to help rescue Mexico's economy, forcing the administration to use other measures to achieve its goals.
At a closed-door meeting of House Republicans on Friday, House Minority Leader John Boehner and other party leaders received an ovation for having resisted pressure to support the Bush-backed package during a White House meeting the previous day.
Friday, September 26, 2008
Global leaders seek Indian PM's expertise to salvage financial crisis
With the world gripped in financial crisis, the expertise of Indian Prime Minister Manmohan Singh, a highly acclaimed economist, was much in demand as he met various leaders, including US President George Bush, in New York, where world leaders have gathered for the United Nations General Assembly.
Every leader the Prime Minister met sought his opinion on how to deal with the financial meltdown, Indian officials accompanying the Prime Minister have said.
The issue came up in a big way during his meeting with World Bank President Robert B Zoellick.
Singh, a World Bank economist-turned politician, is expected to speak on the subject in his presentation at the United Nations General Assembly.
Sensex shed 445pts; Realty, metal, banking stocks slide
The Sensex opened 65 points lower at 13,482 on weak cues from other Asian markets. Persistent weakness, thereafter, saw the index slip deeper into red as the day progressed.
Realty, metal and banking stocks bore the brunt of the selling pressure today. The Sensex dropped to a low of 13,054, and finally settled with a loss of 445 points at 13,102.
The BSE Realty index slumped 6.3% (243 points) to 3,597. The Metal index shed 4.8% (475 points) at 9,502, and the Bankex dropped 4.3% (293 points) to 6,571.
The market breadth was extremely negative - out of 2,673 stocks traded, 2,170 declined, 444 advanced and the rest were unchanged today.
INDEX SHAKERS...
Ranbaxy slumped 8% to Rs 272.
Sterlite, ICICI Bank and Grasim tumbled around 6% each to Rs 447, Rs 561 and Rs 1,761, respectively.
Hindalco, Mahindra & Mahindra, BHEL and DLF plunged around 5% each to Rs 99, Rs 531, Rs 1,551 and Rs 370, respectively.
Tata Steel, Reliance Communications and Maruti shed nearly 5% each at Rs 461, Rs 348 and Rs 671, respectively.
HDFC Bank, SBI, Larsen & Toubro and Infosys dropped around 4% each to Rs 1,246, Rs 1,434, Rs 2,468 and Rs 1,448, respectively.
HDFC and ONGC slipped 3.5% each to Rs 2,089 and Rs 1,035, respectively.
Reliance Infrastrcuture, Reliance, NTPC and Tata Motors were down around 3% each to Rs 850, Rs 1,961, Rs 174 and Rs 373, respectively.
...AND THE MOVERS
ITC surged 2% to Rs 192, and Hindustan Unilever was up over 1% at Rs 253.
VALUE & VOLUME TOPPERS
Reliance Capital topped the value chart with a turnover of Rs 478.70 crore followed by Reliance (Rs 373 crore), Axis Bank (Rs 170.40 crore), Jai Corp (Rs 167.55 crore) and Larsen & Toubro (Rs 144.55 crore).
IFCI led the volume chart with trades of around 96.75 lakh shares followed by Anant Raj Industries (87.80 lakh), Reliance Natural Resources (85.80 lakh), Sesa Goa (82 lakh) and Idea Cellular (65.80 lakh).
Tuesday, September 23, 2008
Kingfisher sacks 300 ex-Air Deccan employees
Three hundred employees of Air Deccan, now re-branded Kingfisher Red, are being laid off by Vijay Mallya-led Kingfisher Airlines, just weeks after the completion of merger between the two Bangalore-based carriers. On Monday morning, the staff at Bangalore and some other offices was asked to accept the severance package and resign.
The process would continue for a day or two. Many of these employees have been with Air Deccan for nearly five years.
According to Kingfisher spokesman, the retrenched employees include 200 security personnel, 50 airport services staff and 50 from the engineering department. These employees were given a severance package equal to two months gross salary for every completed year of service (subject to a minimum of 3 months pay-out).
A week ago JetLite had announced plans to cut 800 employees from its 2,300 workforce.
The process would continue for a day or two. Many of these employees have been with Air Deccan for nearly five years.
According to Kingfisher spokesman, the retrenched employees include 200 security personnel, 50 airport services staff and 50 from the engineering department. These employees were given a severance package equal to two months gross salary for every completed year of service (subject to a minimum of 3 months pay-out).
A week ago JetLite had announced plans to cut 800 employees from its 2,300 workforce.
Monday, September 22, 2008
PepsiCo announces $500 million investment in India
PepsiCo chairperson and chief executive Indra Nooyi has announced an investment of $500 million in India over the next three years to triple revenues by 2014.
The investment would be spread over manufacturing, market infrastructure, environment sustainability initiatives, research, new products and agriculture, Chennai-born Nooyi said.
'The new investment will contribute 50,000 new direct and indirect jobs to the Indian economy,' she said at a press conference here.
'India is among the top five market of PepsiCo and we remain extremely bullish on the country, she added
Nooyi is in India to chair the $39-billion food and beverages giant's two-day annual conclave from Monday.
Besides Nooyi, some of the top executives expected at the meeting include chief executive and vice chairman Michael D. White, senior vice president and general counsel Larry Thompson, and PepsiCo UK president Salman Amin.
PeosiCo, which entered India in 1989 mainly as a beverages company, has invested $700 million in the country so far. It has 43 bottling plants in India, of which the company owns 15, while the rest are operated by franchisees.
It also has three factories to manufacture the Frito-Lay range of potato chips, Cheetos extruded snacks, and traditional Indian snacks under the Kurkure and Lehar brands.
The investment would be spread over manufacturing, market infrastructure, environment sustainability initiatives, research, new products and agriculture, Chennai-born Nooyi said.
'The new investment will contribute 50,000 new direct and indirect jobs to the Indian economy,' she said at a press conference here.
'India is among the top five market of PepsiCo and we remain extremely bullish on the country, she added
Nooyi is in India to chair the $39-billion food and beverages giant's two-day annual conclave from Monday.
Besides Nooyi, some of the top executives expected at the meeting include chief executive and vice chairman Michael D. White, senior vice president and general counsel Larry Thompson, and PepsiCo UK president Salman Amin.
PeosiCo, which entered India in 1989 mainly as a beverages company, has invested $700 million in the country so far. It has 43 bottling plants in India, of which the company owns 15, while the rest are operated by franchisees.
It also has three factories to manufacture the Frito-Lay range of potato chips, Cheetos extruded snacks, and traditional Indian snacks under the Kurkure and Lehar brands.
Rs 1 lakh cr club shrinks
As the market continues to bleed, major Indian companies have lost significantly on market capitalisations and the prominent losers from the benchmark index at the Bombay stock exchange are DLF, ICICI Bank and Reliance Communications. Indian companies have lost significant value in market capitalisations since January 10 when the market started to slip.
There has been a significant fall in the number of companies that command market capitalisation of more than Rs 1,00,000 crore. The number has reduced from 13 to five since January 10.
Out of the list of 30 companies listed in the benchmark index at Bombay Stock Exchange - Sensex, only four companies form a part of the elite club now, which earlier stood at 10. The list includes two companies operating in oil sector that have been doing well on the back of rising oil prices -Reliance Industries and ONGC. The two others are - NTPC and Bharti Airtel.
Out of the Sensex companies that held a market cap above the Rs one lakh crore, DLF has been the biggest loser with two thirds of its value lost. ICICI Bank is the second biggest loser with a fall in value of 57 per cent.
By comparison, its nearest rival in the private sector -HDFC Bank has lost only 15 per cent since then. The third biggest loser is Reliance Communications, which has lost almost 55 per cent of its value.
In comparison Bharti Airtel, its competitor in the same industry has lost only 21 per cent of its value.
There has been a significant fall in the number of companies that command market capitalisation of more than Rs 1,00,000 crore. The number has reduced from 13 to five since January 10.
Out of the list of 30 companies listed in the benchmark index at Bombay Stock Exchange - Sensex, only four companies form a part of the elite club now, which earlier stood at 10. The list includes two companies operating in oil sector that have been doing well on the back of rising oil prices -Reliance Industries and ONGC. The two others are - NTPC and Bharti Airtel.
Out of the Sensex companies that held a market cap above the Rs one lakh crore, DLF has been the biggest loser with two thirds of its value lost. ICICI Bank is the second biggest loser with a fall in value of 57 per cent.
By comparison, its nearest rival in the private sector -HDFC Bank has lost only 15 per cent since then. The third biggest loser is Reliance Communications, which has lost almost 55 per cent of its value.
In comparison Bharti Airtel, its competitor in the same industry has lost only 21 per cent of its value.
Saturday, September 20, 2008
Wkly Review: Sensex recovers sharp losses, ends week on a +ve note
In a roller-coaster ride during the week under review, some positive developments at the fag-end of the week helped the benchmark Sensex to rebound from early sharp losses, ending with a gain of over 41 points.
Steps taken by US policymakers and other top central banks globally to pump billions of dollars to revive the scary financial system and positive statements by the local government, assisted the Sensex to recover from a nine-week low of 12,558.14 points to close the week above the 14K-level.
Marketmen said morale-boosting signals from New Delhi after a Cabinet meeting, chaired by Prime Minister Manmohan Singh, also boosted investor sentiment.
The PM's caution came during the Cabinet Committee on Economic Affairs meeting after Finance Minister P Chidambaram briefed about the financial crisis in US while stating the Indian economy was not affected by the developments.
Tracking global trends which rallied after regulators in the UK and US halted short-selling in financial stocks on late Thursday, boosted the badly battered investors' confidence which had touched rock bottom after the collapse of investment bank Lehman Brothers and distress sale of Merrill Lynch.
In the week to September 20, the Bombay Stock Exchange 30-share barometer recovered its early losses sharply to end the week at 14,042.32 points, a mere rise of 41.51 points or 0.30 per cent over the previous weekend close.
Similarly, the 50-share Nifty of the National Stock Exchange also recouped by 16.80 points or 0.40 per cent to close the week at 4,245.25 points from the last weekend close.
RIL, ONGC, HDFC Bank, HDFC, SBI, Bharti Airtel, ACC, Tata Motors, NTPC, Maruti Suzuki and Tata Powers were the major gainers from the Sensex pack, while Ranbaxy, DLF, Jaiprakash Associates, Grasim, Hindalco, ICICI Bank, Reliance Com, REL Infra, Satyam Computer, Sterlite, Tata Steel and TCS suffered a sharp to moderate setback.
Reflecting a rally in some of the refinery and banking counters, the BSE-Oil&Gas index rose by 351.98 points or 3.86 per cent and the Bankex by 80.66 points or 1.15 per cent.
Although a battered realty segment attracted good buying support on Friday, it was the biggest loser from the sectoral indices. BSE-Realty index tumbled by 591.08 points or 12.59 per cent followed by the BSE-Metal by 847.83 points or 7.79 per cent and the BSE-CD by 264.21 points or 7.39 per cent.
Depicting a heavy sell-off in small-cap and mid-cap counters, BSE-Smallcap index plunged by 495.55 points or 7.38 per cent and the BSE-Midcap by 308.36 points or 5.57 per cent.
The broad-based BSE-100 Index declined by 58.60 points or 0.80 per cent to end the week at 7,285.77 points from 7,344.37 points.
The BSE-200 Index and the Dollex-200 were also quoted further lower at 1,695.81 and 611.44 at the weekend compared to last weekend's close of 1,1717.28 and 626.44 respectively.
On the NSE, the S&P CNX Defty eased by 21.50 points or 0.67 per cent to close the week at 3,189.80 from 3,211.30 last weekend and the CNX Nifty Junior also ended the week down by 251.25 points or 3.67 per cent to 6,591.55 points from previous weekend's close of 6,842.80 points.
Among the sectoral indices, the BSE Metal Index nosedived by 904.35 points or 7.67 per cent to 10,881.42, the BSE Realty Index by 285.54 points or 5.73 per cent to 4,693.72, the BSE CD Index by 211.00 points or 5.57 per cent to 3,575.28 and the BSE Oil&Gas Index by 536.24 points or 5.56 per cent to 9,116.44.
Saturday, September 13, 2008
News...
- Wall St ends flat; Indian ADRs end mixed
- FIIs net sell Rs 777cr in F&O on Friday
- FII-TO-FII TRADES: Pantaloon traded at 26% premium
- Govt not to extend export freight assistance to sugar mills
- Industrial growth above expectation, chambers want rates cut
- Cheaper crude welcome; but no fuel price cut on cards: Deora
- Goldman Sachs expects RBI to up rates one more time
- Industrial production dips to 7.1% y-o-y
- HC asks CIC not to disclose text of agreement with Tatas
- Govt rules out regulating steel prices
- Petroleum Min mulling dual pricing policy for diesel
- Rupee loses 18 paise to touch new 23-month low
- FIIs net sell Rs 777cr in F&O on Friday
- FII-TO-FII TRADES: Pantaloon traded at 26% premium
- Govt not to extend export freight assistance to sugar mills
- Industrial growth above expectation, chambers want rates cut
- Cheaper crude welcome; but no fuel price cut on cards: Deora
- Goldman Sachs expects RBI to up rates one more time
- Industrial production dips to 7.1% y-o-y
- HC asks CIC not to disclose text of agreement with Tatas
- Govt rules out regulating steel prices
- Petroleum Min mulling dual pricing policy for diesel
- Rupee loses 18 paise to touch new 23-month low
Market closings on Friday, September 12...
Sensex 14001 (-323)
Nifty 4228 (-62)
Rs-$ 45.72
Gold (Rs) 11347 (0)
Silver (Rs) 17962 (0)
Nifty 4228 (-62)
Rs-$ 45.72
Gold (Rs) 11347 (0)
Silver (Rs) 17962 (0)
Industry expands 7 per cent in July
India's industrial output grew at a faster rate of 7.1 per cent in July this year surpassing consensus estimate by a wide margin mainly on account of higher production of capital goods and consumer durables.
Tuesday, September 2, 2008
Sensex ends up 551pts; banking, realty stocks rally
Following yesterday's late pull-back, the Sensex opened with a positive gap of 110 points at 14,609. Agressive buying in the second half of the trading backed by a sharp fall in US crude oil prices saw the index rally past the 15,000-mark.
Banking, realty, energy and capital goods stocks were the major gainers today. The Sensex touched a high of 15,106, and finally ended with a gain of 551 points at 15,050.
The BSE Realty index soared 7.3% (367 points) to 5,367, and the Bankex zoomed 6% (425 points) to 7,447.
The market breadth was fairly positive - out of 2,733 stocks traded, 1,675 advanced, 986 declined and the rest were unchanged today.
INDEX MOVERS...
SBI and ICICI Bank zoomed over 7% each to Rs 1,521 and Rs 713, respectively. HDFC soared 4.7% to Rs 2,445, and HDFC Bank rallied 3.5% to Rs 1,341.
DLF and Jaiprakash Associates surged around 7% each to Rs 530 and Rs 174, respectively. Reliance Infrastructure gained 6% at Rs 1,042.
ONGC soared 7% to Rs 1,102. Maruti and Larsen & Toubro rallied over 4.5% each to Rs 664 and Rs 2,681, respectively.
TCS, ACC, Reliance Communications and Wipro surged 4% each to Rs 849, Rs 588, Rs 405 and Rs 451, respectively.
BHEL and Reliance moved up 3.5% each to Rs 1,785 and Rs 2,214, respectively.
Grasim, Infosys and Tata Power were up 3% each at Rs 2,002, Rs 1,775 and Rs 1,070, respectively.
...AND THE SHAKERS
Ranbaxy and Tata Motors slipped nearly 2% each to Rs 490 and Rs 430, respectively.
VALUE & VOLUME TOPPERS
Resurgere Mines topped the value chart with a turnover of Rs 928.50 crore followed by Reliance Capital (Rs 292.40 crore), Reliance (Rs 218.35 crore), ICICI Bank (Rs 209.25 crore) and Reliance Natural Resources (Rs 198.40 crore).
Reliance Natural Resources led the volume chart with trades of around 2.06 crore shares followed Resurgere Mines (1.63 crore), IFCI (1.05 crore), IDFC (90.40 lakh) and Marksans (85.25 lakh).
Banking, realty, energy and capital goods stocks were the major gainers today. The Sensex touched a high of 15,106, and finally ended with a gain of 551 points at 15,050.
The BSE Realty index soared 7.3% (367 points) to 5,367, and the Bankex zoomed 6% (425 points) to 7,447.
The market breadth was fairly positive - out of 2,733 stocks traded, 1,675 advanced, 986 declined and the rest were unchanged today.
INDEX MOVERS...
SBI and ICICI Bank zoomed over 7% each to Rs 1,521 and Rs 713, respectively. HDFC soared 4.7% to Rs 2,445, and HDFC Bank rallied 3.5% to Rs 1,341.
DLF and Jaiprakash Associates surged around 7% each to Rs 530 and Rs 174, respectively. Reliance Infrastructure gained 6% at Rs 1,042.
ONGC soared 7% to Rs 1,102. Maruti and Larsen & Toubro rallied over 4.5% each to Rs 664 and Rs 2,681, respectively.
TCS, ACC, Reliance Communications and Wipro surged 4% each to Rs 849, Rs 588, Rs 405 and Rs 451, respectively.
BHEL and Reliance moved up 3.5% each to Rs 1,785 and Rs 2,214, respectively.
Grasim, Infosys and Tata Power were up 3% each at Rs 2,002, Rs 1,775 and Rs 1,070, respectively.
...AND THE SHAKERS
Ranbaxy and Tata Motors slipped nearly 2% each to Rs 490 and Rs 430, respectively.
VALUE & VOLUME TOPPERS
Resurgere Mines topped the value chart with a turnover of Rs 928.50 crore followed by Reliance Capital (Rs 292.40 crore), Reliance (Rs 218.35 crore), ICICI Bank (Rs 209.25 crore) and Reliance Natural Resources (Rs 198.40 crore).
Reliance Natural Resources led the volume chart with trades of around 2.06 crore shares followed Resurgere Mines (1.63 crore), IFCI (1.05 crore), IDFC (90.40 lakh) and Marksans (85.25 lakh).
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