Indian market retreats from higher levels

Monday, the Indian market ended almost flat after paring gains in the afternoon session. The market opened higher helped by a sharp retreat in the price of oil and firm cues from the rest of the global markets.

After trading firm in the opening session, the market pared the initial gains, led by selling pressure in Reliance and banking stocks at higher levels. Additionally, weak opening of the European markets weighed on investor sentiment. Stocks of real estate, banks and auto companies, which rose sharply in the morning, pared gains in the afternoon. Metal and power stocks led the decliners. Fertilizer stocks attracted fresh buying interest, while sugar stocks ended on a mixed note. Stocks of oil marketing companies rose, while shares of oil exploring and refining companies declined. Indian airline stocks ended firm following reports that the companies are contemplating a rise in fares by 10% to 20%, despite some possible downward revision in the price of aviation turbine fuel. There were reports that airlines could reduce fuel charges in-line with a retreat in the price of crude oil recently. Deccan Aviation (up 3.86%), Jagson Airlines (up 2.72%), SpiceJet (up 1.70%) rose sharply. After opening at 14,643, the BSE Sensex held to its ground firm in the morning, but pared gains to finish at near day's low. After touching an intra-day low of 14,416, the market finished slightly better at 14,450, up 49 points or 0.34% over Friday's close. Meanwhile, the S&P CNX Nifty ended at 4,335, up 0.18%. On the BSE, the mid-cap index closed up 0.25% and the broad-based BSE 500 index rose 0.30%, while the small-cap ended down 0.05%. The market breadth was slightly positive, with 1347 stocks gaining compared to 1287 stocks that declined. Seventeen out of 30 Sensex stock ended on a positive note. HDFC (up 3.63%), Mahindra & Mahindra (up 2.62%), DLF India (up 2.32%), Tata Motors (up 2.04%), Satyam Computers (up 1.79%), ICICI Bank (up 1.76%), Grasim Industries (up 1.47%), HDFC Bank (up 1.12%) were among the major gainers. However, Tata Power (down 2.84%), Jaiprakash Associates (down 2.74%), Ranbaxy Laboratories (down 2.05%), BHEL (down 1.60%), Tata Steel (down 1.49%), Sterlite Industries9down 1.32% and Maruti Suzuki (down 1.16%) declined sharply. Jet Airways rose 1.34% following reports the company could merge its wholly owned subsidiary, JetLite, into Jet Airways this fiscal year. ONGC declined 0.39% over reports that the company may not be able to acquire Russia-focused Imperial Energy Oil, as the Indian firm has already exhausted its investment limit. JK Lakshmi Cement advanced 2.85% over reports that the company is planning to invest Rs.1000 crore for setting up five ready-mix concrete plants by March 2009. Banco Products India rose 1.02% after the company proposed to merger Ganga Investments, a promoter group company with the company. Gujarat Apollo Industries surged up 4.64% after the company recommended a bonus issue to its shareholders in the ratio of 1:2. Hindustan Construction Company declined 0.32% following reports that HCC Real Estate, the real estate arm of the company would invest Rs.1000 crore to develop townships across India. Silver Smith India ended flat after the board of directors approved the company's proposal to acquire silver mines in various countries. Tata Motors ended up 2.04% despite protests from Trinamool Congress, which demanded 400 acres of land back, taken for the Tata Nano project in Singur, West Bengal. MM Forgings added 5.98% after the company fixed the record date for a proposed bonus issue to its shareholders. Ranbaxy Laboratories declined 2.05% following reports the Indian government will re-examine Daiichi Sankyo's plan to buy a controlling stake in the company. Era Infra Engineering drifted down 0.56% after the company bagged new orders worth Rs.42.35 crore from Delhi State Industrial and Infrastructure Development Corporation. Markets across the Asia-Pacific ended higher. Hong Kong's Hang Seng index ended up 3.50%, China's Shanghai Composite index added 0.34%, Japan's Nikkei 225 index rose 1.68% and South Korea's KOSPI Composite index advanced 0.35%, while the Malaysian KLSE Composite index ended down 0.63%. Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved