Weekly wrap up: Sensex registers 1,813.75 pts fall

Weekly wrap up: Sensex registers 1,813.75 pts fall
Technical outlook: Downtrend may continue further
Brokers` outlook: Temporary bounce back likely on Monday


India`s benchmark index, Sensex saw worst weekly loss since last 20 month, as overseas investors are pulling back funds from Indian as well as global markets on concern that the plans to revive the US economy worth USD 150 billion of Bush administration will be unable to prevent recession. Domestic investors also liquidated stocks to subscribe to the biggest initial public offering of Anil Ambani promoted Reliance Power, which was subscribed 73 times on closing, in anticipation of earning handsome gains. The broad based decline in the markets was led by tech, oil & gas, bank, realty and metal shares. The 30 share index lost 1,813.75 points, or 8.70%, to 19,013.70 in the week ended Jan. 18, 2008, whereas the broad based NSE Nifty fell 494.8 points, or 7.98%, to 5,705.30 in the same period.

Overseas investors were net buyers in equities worth Rs 40.65 billion in the period of January 14 to 17. As per the provisional figures, overseas investors sold net of Rs 21.47 billion worth equities on January 18.


Major corporate developmentsIndia`s largest private sector company Reliance Industries (RIL) announced 2.89 times rise in net profit after tax at Rs 80,790 million for the third quarter ended December 2007 as compared to Rs 27,990 million for the quarter ended December 2006. Total Income has increased 31.37% to Rs 348,310 million for the quarter ended December 2007 from Rs 265,140 million for the quarter ended December 2006.Anil Dhirubhai Ambani Group (ADAG) company Reliance Energy on Thursday announced a 50% jump in net profit at Rs 3,016.00 million for the quarter ended December 2007 as compared to Rs 2,010.30 million for the quarter ended December 2006. Total Income has increased a meager 1.8% to Rs 18,534.10 million for the quarter ended December 2007 from Rs 18,204.30 million for the quarter ended December 2006. India`s largest pharmaceutical company, Ranbaxy Laboratories announced a substantial fall of 65.20% in earnings in the quarter ended Dec. 31, 2007, to Rs 484 million compared with Rs 1,390.70 million in the same quarter, last year. Net sales for the quarter rose marginally 1.24% to Rs 9,933.20 million, while the total income for the quarter climbed 8% to Rs 11,181.10 million, when compared with the corresponding quarter, a year ago.LIC Housing Finance, promoted by nation`s biggest insurer Life Insurance Corporation of India, announced a substantial rise of 38.39% in earnings in the quarter ended Dec. 31, 2007 to Rs 1,060.20 million compared with Rs 766.10 million in the prior year period. The total income for the quarter climbed 36.17% to Rs 5,516.20 million, when compared with the corresponding quarter, a year ago.IDBI announced a 38.69% jump in net profit at Rs 1,758.40 million for the quarter ended December 2007 as compared to Rs 1,267.90 million for the quarter ended December 2006. Total Income increased 31.62% to Rs 24,713.90 million for the quarter ended December 2007 from Rs 18,776.50 million for the quarter ended December 2006.Technology major, Wipro announced a 11.58% rise in consolidated net profit at Rs 8,540 million for the quarter ended December 2007 as compared to Rs 7,654 million for the quarter ended December 2006. Total Income on a consolidated basis rose 33.98% to Rs 54,332 million for the quarter ended December 2007, from Rs 40,552 million for the quarter ended December 2006.India`s largest software exporter, Tata Consultancy Services (TCS) registered a 18.87% rise in consolidated net profit to Rs 13,266.70 million for the quarter ended December 2007 from Rs 11,161 million in the same quarter, last year. The consolidated total income for the quarter climbed 23.04% to Rs 60,419.8 million compared with the corresponding quarter, a year ago.ITC posted a 15.80% jump in net profit after tax at Rs 8,307.20 million for the quarter ended December 2007 as compared to Rs 7,174.00 million for the quarter ended December 2006. Total Income has increased 11.13% to Rs 35,953.90 million for the quarter ended December 2007 from Rs 32,353.60 million for the quarter ended December 2006.Housing Development Finance Corporation (HDFC), India`s leading mortgage finance company, registered a 82.55% growth in net profit to Rs 6,489.30 million for the quarter ended December 2007, as compared with Rs 3,554.90 million for the corresponding quarter, last fiscal. Total income for the quarter rose 47.74% to Rs 21,547.20 million, from Rs 14,584.50 million in the same quarter, last year.

New ListingShares of Porwal Auto Components (PACL), a leading manufacturer of automotive components, after listing on bourses, settled at 6.20% premium on the Bombay Stock Exchange (BSE). Shares opened at a premium of Rs 4.85, or 6.46%, at Rs 79.85 as compared with the issue price of Rs 75 a share. It finally closed with a premium of Rs 4.65, or 6.20%, at Rs 79.65.


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