The release of Union Budget 2008-09 by Finance Minister P Chidambaram on 29 Feb'08 as follows(features and highlights):
*Farmers have been granted a package of Rs 60,000-cr
*Rs 44 crore for 22 Sainik schools
*300 more ITIs to be elevated with an investment of Rs 750 cr
*Setting up of 3 new IITs, 16 central universities
*Power sector would be given national fund for transmission, distribution reforms
*Hike of Rs 12,966 cr from Rs 10,866 cr in NHDP allocation
*Govt would now cost Rs 50,000 cr on farm loan waiving
*Tea would get Rs 400 mn special support fund
*Agri loans would be reconstructed in 2004-06 under special packages to be waived
*Tea Research association would be allocated Rs 20 cr
*Micro irrigation scheme allocated Rs 500 cr
*Agriculture share in total investment would be raised to 16% from 10.2%
*Grant for ministry of minorities would be raised to Rs 1,000 cr
*Planned schemes for woman to get Rs 11,460 cr this fiscal
*Child related schemes would be granted Rs 33,434 cr
*288 branches of public sector banks would be set up in 2008
*Corporate surcharge tax: unchanged
*Indirect tax proposals to incur a loss of Rs 5,000 cr
*Direct tax proposals would be revenue neutral
*Dividend of subsidiary company will be released from DDT
*Banking transaction tax to be exempted
*Central sales tax: Reduced to 2%
*15% rise in short term capital gains tax
*5-yr tax holiday for building hospitals in tier-II, tier III regions
*Short-term capital gains rises to 15 pc
*Excise duty of Rs 1.35/litre applied on unbranded petrol
*Excise duty of Rs 4.6/litre applicable on unbranded diesel
*Introduction of Commodities Transactions Tax
*Securities Transaction Tax would be considered like deductible expenditure
*Star hotels: 2,3,4 star hotels to get 5-yr tax holiday in UNESCO's heritage sites
*FBT exempted on creche, employee sports, guest houses facilities
*Duty on two wheelers slashed from 16 to 12 pc
*Tax slab for Rs 3-5 lakh would be 20 pc
*TAX: exemption raised from Rs 1,10,000 to Rs 1,50,000
*TAX: Women exemption threshold streched from Rs 1,45,000 to 1,80,000
*TAX: Senior citizens' exemption raised from Rs 1,95,000 to 2,25,000
*TAX: Corporate income tax unchanged
*Hike of duty on non filter cigarettes
*Excise duty reduced to 8% on water purification items
*Duty taken off on naptha for production of polymers
*Refigeration components to get less expensive
*Reduction of excise duties on anti-AIDS drugs
*Tax-GDP ratio higher at 12.5%
*Step down of excise on paper and its products
*Reduction of excise duties on buses, chassis
*Excise on small cars stepped to 14%
*Excise on pharma goods reduced to 14%
*General CENVAT rate: dipped from 16% to 14%
*5% cut of customs duty on some bulk drugs
*Crude sulphur: duties stepped down to 5%
*Relieve of duties on coral
*Fiscal Deficit & Revenue Deficit: pegged at 3.1% & 1.4%.
*Duties on convergence products dipped to 5%
*Set top boxes: 100% exemption
*COMMONWEALTH GAMES: allocated Rs 624 cr.
*Steel melting & aluminum scrap: duties reduced
*Peak rate of customs duties unchanged
*Sixth central pay commission would submit report by March
*Revenue Deficit would be 1.4 % agt Budget Estimate of 1.5%
*Planning Commission to assess major schemes
*PROTECT TIGER: Rs 50 cr to Natl Tiger Conservation Authority to get Rs 50 cr
*Rs 75 cr for ICCR for cultural development
*Defence allocation raised by 10% to Rs 1,05,600 cr
*PDS to get Rs 32,676 as subsidy
*Smart-card based PDS system to come up in Haryana, Chandigarh
*PDS to be toned up
*Grant of Rs 44 cr to 22 Sainik schools each
*Rs 75 cr to given to Agri Ministry to set up soil testing labs in 250 districts
*Rs 15,000 cr to be given for a non-profit body for dev programme
*Set up a world-class skilled development programme
*PAN requirement extended to all securities transactions
*Set up bond, derivative market
*More clarity in Derivative market
*Risk Capital Fund to be established in SIDBI
*Allocation of Rs 12,966 cr for National Highway Dev programme
*Rs 8,000 cr for accelerated power development programmes
*Ultra mega power project to come up at Tilana shortly
*NHDP to get Rs 12,956 Cr
*Banks would be bucked up to embrace total financial inclusion
*Foreign invt: Oil block exploration anticipated to get up to $8 bn
*Setting up of Coal regulator
*Health Insurance for 17 lakh families of weavers
*Approval of State data centres scheme and gets Rs 275 cr
*1 lakh broadband-enabled common service centres to be set up in villages
*Better allocation of NHDP programme
*Power distribution to get Rs 800 cr
*Public Sector Bank: Around 288 branches to be opened in districts with minority community concentration.
*Manufacturing rate of growth planned to be doubled
*RIDF corpus to be raised to Rs 14,000 cr
*Education: 20% hike from Rs 28,674 cr to Rs 34,400 cr
*Total amount of loans being waived is Rs 50,000 cr
*Debt waiver scheme to end up by June 30
*Minority Affairs Ministers alloted Rs 1000 cr.
*Interest subvention would prove negative for banks
*Waiver forms up to 4% of total bank loans
*Sensex dipped to 210 points
*500 soil testing labs would be established in the country
*Marginal,small farmers gets 100% waiver on all loans. Benefit to 4 crore farmers
*Farmers would provided with scheme of debt waiver and debt relief
*Allocation for NRHM hiked to Rs 12,050 cr
*National Horticulture Mission would be allocated Rs 1,100 cr
*Rs 50 cr for Weather based crop insurance scheme
*Tea Research Association would be given a special grant of Rs 20 cr
*Rashtriya Krishi Vikas Yojana would be allocated Rs 2,80,000 cr.
*53 minor irrigation programmes would come into action
*Coffee, cardamom growing gets more funds
*Child specific schemes would be given Rs 34,334 crores
*Rs 2.80 lakh cr has been set for agri-credit in 2008-09
*Ministry of Woman and Child Development to be alloted Rs 7,200 cr
*24% hike in allocation for child development
*Border area development gets Rs 500 cr
*Anti-Polio drive gets Rs 1,042 cr
*Hospital sector likely to gain Interest subvention has been increased in the year 2007-08 *Jawaharlal Nehru Urban Renewal Mission would be alloted Rs 6,865cr
*Development of agri-credit has been impressive
*Minority Affairs Ministry fund raised to Rs 1,000 cr
*Setting up of 288 PSU bank branches in minority districts
*Rs 540 cr to be given for the development plan for minority districts
*LIC would entail all women SEGs
*Rs 200 crore to be given for potable water in schools
*Rural health services would be alloted Rs 12,050 cr for its development
*Publishing market would gain from education boost
*Sanitation programmes would be alloted Rs 1200 cr
*More number of minority placements in central para-military forces
*Higher Education: more institutions in the 11th plan.
*Anganwadi helpers & workers remuneration hiked to Rs 750 & Rs 1,500
*National Programme for elderly citizens at Rs. 400 crore
*Rajiv Gnadhi Natl Fellowship Programme would be alloted rs 75 cr
*Rs 9 cr for Nat Handicap Development Corp
*Natl Minorities Development Corp would be alloted Rs 75 cr
*Rs. 500 crore for Arunachal and north eastern states
*Education spend to be raised by 20% to Rs 34,400 cr
*NE region would be granted Rs 1, 350 cr for development
*Rajiv Gandhi Drinking Water mission allotment would be raised
*NREG scheme to be implemented in 596 districts
*National Rural Health Mission allocation raised by 15%
*Rs 30,000 health cover allotment for every worker in unorganised sector
*Increase of Health allocation to 15% *supply safe drinking water as per Rajiv Gandhi's plan
*3 IIScs would be set up in Bhopal and Trivandrum
*National Programme for the Elderly to be set up
*Secondary education Scheme: Rs 4,554 crore
*2 schools would be set up for planning and architecture
*Rs 4,554 crore Secondary education Scheme
*Rs 100 cr would be given to Ministry of Science and tech for Natl Knowledge Network
*All knowledge bodies would be connected through broadband
*Rs 85 crore for the setting up of a knowledge society
*Scholarships would be given for science and research
*Education and Health allocation up 20%
*Service Sector to rise at 10.7%
*Setting up of 3 IITs in AP, Bihar and Rajasthan
*16 central universities would come up
*Mid-day meal scheme: for upper primary classes also. Budgetary allocation Rs 8,000 *Navodiya Vidyalayas to start up in 6,0-00 districts
*6,000 model high schools to be established
*Agricultural growth rate planned at 2.6%
*reforms for Education, health remains a major concern
*2008-09 would be a year of integration
*He remains to be convicted to sustain 8% growth
*Effect of global mkts on local mkts is hazy
*Govt, RBI will to take a conjoint step to manage capital inflow
*Govt to monitor all foreign fund inflow
*Govt. to check foreign inflow to stabilise Indian mkts
*Rashtriya Krishi Vikas Yojna launched
*Food grains overall output is 219.32 mn tonnes
*We should remain wakeful for downside risk
*Crude oil has seen a step down
*Agriculture condition was disatisfactory
*Capital inflows proves to be point of consideration against monetary management
*Growth rate at 8.8%
*Service sector remains the propelling force for Budget
The release of Union Budget 2008-09 by Finance Minister P Chidambaram on 29 Feb'08 as follows(features and highlights):
For the past two days market was went up because of the global markets. U.S,Hongkong markets up for the past two days. the upside movement will continue till tomorrow,because tomorrow is the last day for Futures and options. the brokers will take the market to upside.In every rise you sell your position. after budget market may fall this is what the message which i have received from many brokerage houses. because of the railway budget kalindee rail,texamo,Beml, stone india went up. by 2010 all the trains should contain stainless steel body comportment because of this jindal stainless steel will gain more.yesterday it went up around 10%.in longterm view one can take position on Jindal stainless steel.
Budget plays a vital role for a developing country like India. The budget of the country has its overall effect upon the various sectors of the economy.The concept of growth fear is partly met as it is growing fast. But achieving the development indicators is very far to reach. Growing Inequality is the best example. In this context, Budget haves its own importance.
the Railway Minister Mr Lalu Prasad Jadav forecasted briefly the Indian railway Budget 2008. It is learnt that the fare and additional surcharge will not be increased. The honorable Railway Minister thinks that such benefits have only made possible by the hard work of the railway workers.
Following are the highlights of the Railway Budget presented by Laloo Prasad Yadav
*No increase in passenger fares
*No increase in freight rates
*55 New trains, 37 trains extended
*550 km of new lines to be added in 2006-07
*Number of coaches in 190 trains to be increased
*1,100 km of gauge conversion, 435 km of doubling
*’A’ & ‘B’ category stations to be made model stations
*Fare cut in 1st class AC passenger by 18%
*Fare cut in 2nd class AC passenger by 10%
*Fare cut in 3rd class AC passenger by 25%
*Fully AC 'Garib Rath' to run on a pilot project basis
*Fares in 'Garib Rath' to be 25% lower than AC-III tier.
*Charges leviable on issue of E-tickets reduced
*50% concession in fares to farmers, milk producers
*50% concession to handicapped people
*Rs 22,000 crore for dedicated freight corridor
*Double stack container train to be launched in March
*Private container trains to be allowed by March 31
*Diesel, petrol freight charges down by 8 per cent
*Dynamic pricing policy for freight introduced
*30% discount during non-peak, 20% in peak season on incremental freight
*Freight loading target for 2006-07 at 726 million tonnes
*Freight revenues to be Rs 40,320 crore in 2006-07
*Journey time of Rajdhani, Shatabdi to be reduced
*Upgradation of lower class passengers to higher class
*’Jansadharan ticket booking scheme’ to be launched
*’Gramin ticket booking service’ for rural youth
*200 Mail/Express trains to be made Superfast
*ATMs, cyber cafes to be provided at major stations
*All-India rail timetable to be reworked
*200 automatic ticket vending machines in Mumbai to be set up
*Railway protection force for the security of women
*Passenger revenues to be Rs 16,800 crore in 2006-07
*Largest ever plan outlay of Rs 23,475 crore
*Outlay includes Rs 7,511 cr from central exchequer
*Outlay includes Rs 10,794 crore from internal resources
*Outlay includes Rs 5,170 crore from extra budgetary funds
*Rationalisation of goods tariff to continue
*Number of commodity groups to be reduced from 80 to 28
*Fund Balance increases to Rs 11,000 cr
Posted by Arun jeevan at 8:02 AM
As i told earlier in my posts the stock market is not at all looking good.Indian stock market is continuously falling because of lot of selling taking place in every rise,that's what the volatile movement continues.stay calm in this bearish market,otherwise one can take PUT options. if the downside movement continues Nifty will go down to 5050,4925,4835,4734.Sensex may come down 6 to 8% on Feb 28th or Feb 29. Reliance power announced bonus of 3 shares for every 5 shares held with investor's,because of this news you can see some spurt on Reliance power today(Monday).it will go up to 470-500 range during this range one can exit this counter and go for Siemens (Rs 1570).Record date is march 3rd to get bonus shares of 1:1.
The board of Reliance Power Ltd approved a 3-for-5 bonus share.The bonus issue of three shares for every five held will bring down the cost of Reliance Power shares to Rs269 for retail investors, as against a discounted offer price of Rs430, and Rs281 for institutions compared with an offer price of Rs450, said Anil Ambani, chairman, Reliance-Anil Dhirubhai Ambani Group (R-Adag), in a conference on Sunday.
The founder-promoters of the company, including Ambani and Reliance Energy Ltd, who together hold 90% of Reliance Power’s equity, will not be issued bonus shares. The promoters, however, had acquired shares in Reliance Power at Rs17 each.
Ambani, also the non-executive chairman of Reliance Power, said he was giving up 2.6% of his shareholding in Reliance Power to Reliance Energy, which owns about 45% of Reliance Power, so its ownership structure remains intact. After the bonus issue and this transfer, Ambani’s stake in Reliance Power will fall 5 percentage points to 40%, while public shareholding will rise to 15%.
Reliance Power has sought an enquiry by the Securities and Exchange Board of India (Sebi), the stock market regulator, into “hammering” of the stock price, Ambani said.
Reliance Power plans to set up 13 plants with 28,200MW of generating capacity in five years, one-third of India’s planned projects in power. However, the first of these plants will only start production in 2010 and the company is unlikely to report strong profits for five years.
The merger of Centurion Bank of Punjab (CBoP) with HDFC Bank is proceeding at a brisk pace. While the boards of both the banks today gave their in-principle approvals to the merger, they will meet again on Feb25(Monday) to consider the swap ratio and later on Feb28(Thursday) to consider the draft scheme of amalgamation.
Initially centurion bank has acquired BankMuscat's Indian operations in 2003,followed by Bank of punjab in 2005,then it became centurion bank of punjab(CBOP).now HDFC acquiring CBOP,so that HDFC bank will become very strong. Already HDFC has a strong presence in western and southern india,but CBOP has its strong presence in north india.
Sources at both the banks did not give a deadline as to when the entire merger process would be completed. Both the banks have already appointed valuers to suggest a share swap ratio. Market observers, who expect an all-stock deal, are speculating a swap ratio in the range of one share of HDFC Bank for 15-20 shares of CBoP.HDFC Bank's last traded price Rs1474.Centurion bank of punjab's last traded price is Rs 58
What is invisible shield?The invisibleSHIELD is the toughest, most durable gadget scratch protection film available in the whole world.It was first used by the U.S military to protect the helicopter blades from wear and tear while travelling through long distance.The film is so flexible that it can be wound around the whole device with their custom shapes so easily.Even if there is no custom shape ready for use they can make one immediately.The invisibleSHIELD is now available for more than 1000 devices and many more yet to come.
More than all of these things invisibleSHIELD is the only company which provides you the 100% original product for the customers.They have now started to use this wraping the whole body technique in electronic devices also.So if you ever want to have your devices scratch free you can blindly choose invisibleSHIELD.I guess the information provided will be useful.
If you want to have a video demo on how strong this invisible shield is.click the below link.
Posted by Arun jeevan at 12:51 AM
As i told earlier market went down around 400 points in two days,volatality will continue before budget sensex will go down upto 16500 to 17000 range so one should be very careful in this indian volatile market.At the same time our india's fundamentals are really looking strong.In long term prespective sensex will touch 2100 to 22000 range before end of 2008 according to technical analysis,In near term the volatality will continue.Feb 28&29 is the crucial days for indian stock market.During those days we can buy some postions so wait and watch as of now.
For the past two days the way indian stock market behaves is not good, At particular point some kind of buying should continue for a week.But here the market moved in sideways only,In every rise huge selling is taking place,one could not able to do intraday,if the market looking positive one can sell the positions eventhough it's cost to cost or less loss, because market will fall within friday(Feb22).during that time you can cover the positons,so that you can make some amount of profit. According to my prespective only trading is good for this situation.
- A main feature of this budget is that it is the last budget to be presented by the current government before it faces the general elections next year. Therefore, it will be targeted at getting votes. This means that it could well be a `populist` budget with pay-off's for voters in terms of lower taxes. Another possibility is that tax rates are left unchanged for corporate, but there are a host of announcements on increased outlays to social sectors like education and health.
The main challenges that this budget also needs to address are (i) inflation, (ii) the slowdown in the GDP, particularly in the manufacturing sector, (iii) a much tougher global environment and its impact on growth through the external sector in the months ahead and (iv) a rising subsidy burden, which does not fully reflect in the fiscal deficit. Therefore, on balance,all the broking house's expects that the key features of this budget will be as given below:
- Reduction in direct tax rates for individuals but not for corporates Some reduction or elimination of dividend distribution tax.
- Rationalization of excise duties, including the auto sector.
- Rationalization of exemptions for corporates.
- Lower customs duties for commodities to contain inflation and rationalization of inconsistencies.
- Enhanced credit availability for the agriculture sector.
- A sharp increase in the outlays for social sectors like health and education
I expect the sectors to be positively impacted by the budget are auto, capital goods, cement, construction, FMCG, logistics, oil and gas, metals, fertilizers and pharmaceuticals. However, it expect largely neutral for the sectors like media, telecom, information technology and real estate.
The government on Thursday night appointed National Securities Depository Ltd chairman & managing director Chandrasekhar Bhaskar Bhave as the sixth chairman of the Securities and Exchange Board of India(SEBI). An official notification is expected on Friday to enable Bhave, a former SEBI chief to take over from M Damodaran who completes his three-year term this weekend.
Rural electrification Corporation (REC) is the prime lender for the power sector,Which is going to hit the indian capital market with a public issue. Issue opens tomorrow(Feb19) closes Feb 22. India's huge power deficit and its position as a country that has one of the lowest per capita power consumption of 600 units (world average of 2,500 units) has led the government to pursue policies to attract public and private investments into the Indian power sector. This means huge demand for funds for setting up projects and hence, benefits for sector specific specialised financing organisations like Power Finance Corporation (PFC) and Rural Electrification Corporation (REC). REC is seeking to partner an infrastructure to enter electricity distribution.The company had last year floated a wholly-owned subsidiary - REC Power Distribution Company Ltd (RPDCL) - to promote and develop distribution systems. However, the subsidiary is proposed to be converted into a joint venture to enable REC diversify its range of offerings. RPDCL has also entered into an agreement with Jodhpur Vitran Nigam Ltd for supervision and inspection of village electrification work under the Rajiv Gandhi Grameen Vidyuthikaran Yojana (RGGVY). In medium term point of view one can subscribe to REC @cutoff price.
Reliance Power Ltd(Anil Ambani group) decided to issue bonus shares to all categories of investers,excluding the promoters comprising Reliance Energy and ADA Group.This decision is going to be finalised in the meeting of its Board of Directors on Feb 24. the company listed on indian stock market on Feb 11.Reliance power's Initial Public Offering which was offered for retail investors at Rs.430 a share and institutional investors at Rs.450 a share. But in the listing day itself it went down around 16% of its issue price Rs 450 during the closing it went to Rs 373. so all the investers was disappointed and they are very angry on anil ambani. This is the first time thatan issue bearing the Reliance tag had failed to make money for investors in the very first day. The company has written to the SEBI denanding on investigation into the market manipulation. After Rel.power board meet on FEb 24 only we can get an clear picture about the bonus ratio and other details. because of this news today (monday) you can see an upside movement in Reliance power.
yesterday night US markets went down around 200 points,because of that only our indian stock market is also down in the opening time.In the morning Bombay Stock Exchange(BSE)sensex went down upto 331 points. Afternoon onwards market start increasing and went up by 363 points(18070). National Stock Exchange index Nifty raised by 101.10 points at 5,303.10 with all the index-linked stocks moving up.Buying activity picked up after reports that inflation rate has declined to 4.07 per cent for the week ended on February 2 against 4.11 per cent in the previous week, mainly due to fall in prices of some food items, jet fuel, and select manufactured goods.Then PM manmohan singh told that government will take proper steps to appreciate indian rupee value.
- PM Manmohan Singh on Friday assured India Inc that his government would take care of its various concerns, including an appreciating rupee value, in the coming Budget session.
- The Tata industries and the US aircraft major Boeing are forming a joint venture company for making defence-related aerospace components in India.
- National Thermal Power Corporation(NTPC) and Bihar State Electricity Board(BSEB) signed a JV agreement Friday in order to build a coal-based power station in Bihar. NTPC Limited and BSEB signed a bipartite JV Agreement to promote a Joint Venture Company to establish, operate and maintain a 1980 MW power station at Nabinagar in Bihar’s Aurangabad district.
The United Progrssive Allaiance(UPA) government on thursday increased the prices of petrol by Rs 2 and diesel by Re 1.The revision will came into effect from yesterday(Thursday) midnight.Eventhough they are getting strong opposition from the supporting left parties.But according my prespective government movement is correct,the reason for this hike in oil prices is due to international crude prices,crude oil prices went upto $100/barrel. But at the same time the government can reduce the taxes on petrol &diesel,sothat there maybe an chance to reduce the oil prices by 5opaisa t0 Re 1.
Due to this petrol and diesel price hike oil major like IOC,BPCL,HPCL and other related oil and gas co's Reliance petrol,Essar oil,RNRL stocks went up by around 10%.major contributors(IOC,BPCL,HPCL) will get Rs 500 to 800 crore. so oil sectors having good substantial growth in future also, one can invest in oil sectors in long term prespective.
sensex went up to 17766 points i.e 817 points up.there is some kind of relief rally came in midcap and small cap also. During the continuous fall in market midcap and smallcap affected drastically.midcap and smallcap went up by around 350 points. some handsome buying came at the opening level thats why opening itself sensex went up by around 500 points.no need to book the loss in this market,suppose nifty went below 5165 means one can start selling. According to experts view upside movement may continue,market will touch 18500 level.
Company Open Date Close Date Issue Price (Rs)
V Guard Industries Limited Feb 18, 08 Feb 21, 08 85.00
Globus Spirits Ltd. Feb 19, 08 Feb 22, 08 148.00
Rural Electrification Corporation Ltd. Feb 19, 08 Feb 22, 08 105.00
For the past 4 trading session's indian stock market continuously went down due to US economy slow down and the weakness in global markets.today some Relief rally came in indian stock market in the morning trading session,Sensex went around 500 points up and came back and during closing Sensex is up by 341 points(16949),Nifty up by 91 points(4929).for the past two days market is in high volatile movement so without experiance one could not able to trade in this market.experts saying that FII's selling their positions continuously.still indian stock market is most attractive one for more number of FII's.our economy is fundamentally very strong.for long term investers there won't be any problem at all,only day traders and short term investers are facing some problems,within 1 or 2 month's market will move in a steady state.
Don't panic,stay calm for some time,right time will come.
Due to more selling presseure, the Sensex went crashing by over 1000 points to 16,457.74 in afternoon trade today. Then it recovered from that level and finally settled at 16,630.91, it still recorded a massive loss of 833.98 points or 4.78% for the day.
The Nifty, went down to a low of 4803.60 in intra-day trades, ended with a big loss of 263.35 points or 5.14% at 4857.
TOMORROW ALSO VOLTAILITY WILL CONTINUE.NIFTY WILL CONSOLIDATE IN AND AROUND 4500-4600.SO INVESTORS SHOULD BE VERY CAREFUL WHILE TRADING.ALSO THIS IS THE RIGHT TIME TO BUY THE STOCKS.
STOCKS OF INTREST
1.RNRL BUY AROUND 110.00
2.RPL BUY AROUND 125.00
3.NEYVELI LIGNITE BUY AROUND 110-120
4.NTPC BUY AROUND 170-180
5.ONGC BUY AROUND 9006.CAIRN
Among the sectoral indices on BSE, the IT index finished with a small gain. The Power index, the biggest loser today, nosedived 8.61%. The Oil & Gas barometer lost a little over 7%. The Bankex, Consumer Durables, Capital Goods, FMCG, Metal, PSU and Realty indices lost 3% - 6.5%. BSE Auto (down 3.39%), Healthcare (down 3.16%) and Teck (down 2.38%) also declined sharply.
IT majors Satyam Computer Services (3.4%), Infosys Technologies (0.5%), Tata Consultancy Services (0.4%) and Wipro (0.25%) were in demand today. Maruti Suzuki, the only other Sensex component to close on the positive side, gained a little over a per cent.
All stocks from the Reliance pack got hammered today. Reliance Energy went down by as much as 19.4% to Rs 1582.30. Reliance Communications lost 8.6%. Reliance Industries lost a little over 6%.
Hindustan Unilever(down 7.45%), Mahindra & Mahindra (down 7.4%), NTPC (down 6.7%), Ranbaxy Laboratories (down 6.7%), State Bank of India (down 6.65%), Larsen & Toubro (down 6.1%), ITC (down 6%), BHEL (down 5.75%), ONGC (down 5.6%), ACC (down 5.35%), Bajaj Auto (down 5.25%) and HDFC (down 5.2%) declined sharply.
Hindalco, Cipla, Bharti Airtel, Tata Steel, ICICI Bank, Ambuja Cements, DLF, Grasim Industries, HDFC Bank and Tata Motors lost 2% - 5%.
Tata Power closed with a big loss of 11.45%. Unitech lost 10.45%. GAIL India ended lower by 9.3%. SAIL, Reliance Petroleum, Nalco and Idea Cellular dropped down by 7% - 8% today. Sterlite Industries, BPCL, Suzlon Energy, Hero Honda, Punjab National Bank, Cairn India, Dr. Reddy's Laboratories, ABB and Sun Pharmaceuticals also closed with sharp losses.
VSNL, which rose to a high of Rs 497.50 in intra-day trades, ended at Rs 481.65 with a handsome gain of 8.75%. Zee Entertainment (2.4%) and GlaxoSmithKline Pharma (1.15%) also bucked the trend and posted smart gains.
Reliance Power, which had a disastrous debut, went down by 17.25% from its issue price to Rs 372.30. On the National Stock Exchange, around 134.3 million shares were traded at the Reliance Power counter today.
Lanco Infratech, Orchid Chemicals, HDIL, Hinduja Ventures, Jindal Steel, Rolta India, MphasiS, Reliance Capital, Mangalore Refineries & Petrochemicals, Spice Telecom, Welspun Gujarat, Ispat Industries, Jet Airways, Puravankara Projects, Edelweiss Capital, Polaris, India Cements and Century Textiles were some of the big losers in BSE 'A' Group today.
Stocks from midcap and smallcap segments were also down again. Mirroring the sell-off, the Midcap index went down by 5.42% and the Smallcap went down upto 4.84%.
Most expected Reliance power went down 16% it closed around 373.the reason is very simple As all of you already aware that this(Reliance power) is a biggest issue in an indian capital market.Also the issue price is Rs 450 is too much according to valuations.Because at present they are producing 600MW only,by 2010 they will produce more power.But at present NTPC is producing 36,500MW(approximately)power.similarly Tata power is also producing good amount of power.compared to Reliance power NTPC,Tata power,Neyveli lignite,are far better according to valuations,only because of the name sake Reliance we have invested such a huge amount.
Everybody including both retail investers and HNI category people and others all came to gether to sell Reliance power due to fear of this bearish market thats why it went down upto 16%
Eventhough during this negative sentiment in market some of the stocks looking good for intraday.
By experience am telling you the following stocks are good for intraday
ROHIT FERRO(fertilizer stocks such as chambal,nagarjuna,coromental,RCF,etc...)
Reliance power(Anil Dhirubhai company)is the biggest issue in indian stock market.Everybody is eagerly awaiting for its listing.Reliance power is listing on Feb 11 2008,The stock is likely to list at around Rs 450-500 at the worst case and maximum possisbility of Rs 600 not more than that,it will touch 650-700 in short term.while opening is high means one should sell there positions in Rel.power.it will stabilize in and around Rs 500.During some correction we can take back the positions for long term perspective.
The issue price has been fixed at Rs 450. The stock will be part of NSE F&O, the lot size is of 450 shares and options strike priced between Rs 10-1350.
Reliance Power is the flagship company of the Reliance ADA Group to develop, construct and operate power generation projects. The company is currently developing 12 power projects with a combined planned installed capacity of 28,000 MW, one of the largest portfolios of power generation assets under developments.