(RTTNews) - Tuesday, India’s Sensex ended with notable declines, shrugging off the coordinated efforts by the bank and the stock market regulators. The BSE Sensex ended notably lower, while the S&P CNX Nifty ended in positive territory.

The market opened sharply higher, boosted by confidence building measures announced by the regulators. Within an hour, the market drifted down into negative territory, but it recovered soon following a recovery in Asian stocks, higher US futures and a 100 basis points cut in interest rates by the Australian Central Bank. The recovery proved short-lived as global credit woes continued to weigh on market movement. Reports that Barclays and Royal Bank of Scotland had held emergency funding talks for at least $79 billion with the UK government dampened investor sentiment. Capital goods, IT, banking and realty stocks took the sharpest knock, followed by FMCG, healthcare, metal and telecom stocks. However, oil/gas, public sector and power stocks ended with modest gains.

After opening higher at 12,068, the BSE Sensex declined to an intra-day low of 11,502 in the afternoon, before recouping some of its loss to finish at 11,695, down 106 points or 0.90% over the previous close. Midcaps and smallcaps were relatively more affected. The mid-cap index lost 2.0%, the small-cap index shed 2.17% and the broad-based BSE 500 index ended down 1.23%. However, the S&P CNX Nifty ended at 3,607, up 0.12%.

On the BSE, the market breadth was extremely negative, with 1820 stocks ending in the red compared to 789 stocks that closed in positive territory. The Sensex futures ended at a premium of 205 points to the benchmark.

TCS (down 7.02%), Larsen & Toubro (down 6.94%), Sterlite Industries (down 6.35%), HDFC Bank (down 6.17%), Mahindra & Mahindra (down 5.84%), Satyam Computers (down 5.18%), Wipro (down 4.07%), Tata Power (down 3.82%), ITC (down 3.08%), State Bank of India (down 1.81%), Hindalco (down 1.61%), ACC (down 1.39%), ICICI Bank (down 1.07%) and Infosys (down 1.04%) were among the major decliners.

However, NTPC (up 4.27%), Ranbaxy Laboratories (up 3.88%), BHEL (up 3.26%), Bharti Airtel (up 2.66%), Reliance (up 2.04%), Tata Steel (up 2.03%), followed by Reliance Infrastructure, Grasim Industries, Maruti Suzuki, ONGC, Tata Motors, Jaiprakash Associates, DLF India and Reliance Communication ended in positive territory.

Stocks in News

Tata Motors ended up 0.88% on reports that Ratan Tata and the Chief Minister of Gujarat Narendra Modi will make a joint statement on rollout of Nano from Gujarat this evening. IVRCL Infrastructures declined 1.86% despite the company bagging new orders worth Rs 499.23 crore from the irrigation and CAD department, Andhra Pradesh.

Dynamatic Technologies rose 2.03% after the company acquired a UK based aeronautic company for a total consideration of $16 million. Hindalco Industries shed 1.61% even as the company said that one of its promoters, IGH Holoding on Monday acquired 19,68,213 equity shares of the company from the stock exchanges. Country Club India gained 4.21% after the company fixed October 22 as the record date for a 5-for-1 stock split of its equity shares.

XL Telecom & Energy plunged 10.41% after the company said Goldman Sachs Investments (Mauritius) reduced its holding in the company to 9.4%. Provogue India lost 2.62% after the company said that UK’s LTG International would invest Rs.56.97 crore in its subsidiary Prozone Enterprises. ONGC added 1.25% over reports that the company will tie up with Uranium Corporation of India for exploring and mining uranium.

Bharti Airtel ended up 2.66% following reports the company will launch direct-to-home satellite television services on October 9. Hindustan Zinc slumped 9.30% at Rs.339.20 after the Citigroup has downgraded the company’s stock to ’sell’ and reduced the target price to Rs.430. Prism Cement plummeted 6.09% after the company’s net profit declined 71% for the September quarter compared to the same quarter last year.

GVK Power & Infrastructure plunged 15.33% on reports that the company plans to raise about $200 million by selling up to 25%stake in its subsidiary GVK Energy. Zandu Pharmaceutical Works shed 2.51% on reports that the Parikhs, co-promoters of Zandu Pharmaceutical Works, are preparing for an out- of- court settlement with Emami.

Asian markets

Markets across the Asia-Pacific region ended mixed on Tuesday following higher US futures and amid hopes that central banks across the region will cut rates to lessen the impact of the global credit crunch. Indexes across markets recovered after the Reserve Bank of Australia surprised markets by slashing its key rate by 1% to 6% - its biggest cut since 1992. Meanwhile, the Bank of Japan decided to keep its interest rates unchanged. Reports said the Bank of Japan would coordinate with the US Federal Reserve and the European Central Bank to shore up investor confidence. China’s Shanghai Composite index declined 0.73% and Japan’s Nikkei 225 index slipped 3.03%, while South Korea’s KOSPI ended up 0.54% and Australia’s All Ordinaries index gained 1.17%.

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