Sensex closed with losses of 172 points at 13602 and the Nifty lost 47 points to end at 3922. Nifty November futures closed at a premium of 11 points to the spot index.

Technology stocks came under severe pressure following the decline in ADR prices in US markets yesterday. HCL Tech was the worst performer among index stocks, closing 3.62 per cent lower.

Satyam lost 3.34 per cent and Wipro gave up 2.65 per cent. Infosys gave up 2.39 per cent and TCS lost 0.94 per cent.

Stocks of oil marketing companies lost ground on higher roil prices and unconfirmed reports of a possible retail fuel price cut tomorrow. BPCL lost 3.08 per cent and HPCL gave up 2.5 per cent.

SAIL was the biggest loser among metals, closing 3.49 per cent lower. Tata Steel lost 1.32 per cent and Hindalco gave up 1.89 per cent.

Reliance Communications gave up 3.11 per cent while Reliance Energy shed 2.88 per cent.

Jet Airways saw a correction after a sustained rally for the last many sessions and lost 2.79 per cent.

ICICI Bank was the worst performer among banking stocks, closing 2.46 per cent lower. HDFC Bank gave up 2.14 per cent and PNB lost 1.97 per cent.

Select pharma stocks were firm even as the market declined substantially. Glaxo was the best performer, adding 1.93 per cent, followed by Sun Pharma which closed 1.51 per cent higher.

Among cement stocks, Grasim added 0.87 per cent and Gujarat Ambuja gained another 0.21 per cent.

SBI saw a late rally to end 1.37 per cent higher.

Among autos, Hero Honda gained 0.66 per cent and Maruti closed 0.28 per cent higher.

Zee Tele and Gail India were the other gainers.

Global markets / crude oil
US indices tumbled yesterday on the wakening lower, rising crude oil prices and subdued sales performance by Wal-Mart which raised concerns about a slow down in consumer spending. Traders took profits after the sustained rally which had lasted many weeks without a major correction.

The Dow ended nearly 1.3 per cent lower while S&P 500 lost moer than 1.35 per cent. Technology stocks lost heavily and the NASDAQ index ended 2.2 per cent lower.

Asian markets also declined substantially following the decline in US indices and higher crude oil. Hong Kong was the worst performer, losing nearly 3 per cent, followed by Indonesia which lost close to 2.2 per cent. Singapore gave up over 1.85 per cent while Malaysia, South Korea and Thailand ended around a per cent each lower.

Shanghai lost 0.4 per cent and Japan closed with modest losses of 0.2 per cent.

European markets had a very weak opening, but have recovered part of their losses in early afternoon trades. Major indices are trading with losses of between 0.25 and 0.55 per cent each.

Crude oil prices gained yesterday on forecasts of cold weather in the US next month. Indications from a Saudi minister that the country would support another round of production cut by OPEC also helped prices. NYMEX futures settled at $60.62 per barrel yesterday and are trading close to $60.7 per barrel in European trades today.

Large-cap news flow

• ONGC would invest up to Rs9,000 crore to redevelop the Bombay High oil fields, according to unconfirmed media reports. The company would use new technology to increase recoverable reserves to 41 per cent of in-place reserves besides digging more wells.
  
  
• TCS has set a top line target of $10 billion by the year 2010. The company is targeting revenues of $4 billion for this financial year.
  
  
• Reliance Industries would set up piped natural gas networks in 100 cities once it starts commercial production of natural gas from the KG basin. Reports quoting company management indicate that piped gas would be priced almost one-third less than domestic LPG.
  
  
• Hindustan Zinc has settled external commercial borrowings of $125 million.
  
  
• The government may take a decision on retail oil prices by tomorrow, according to unconfirmed media reports.

Mid-Cap Action

Mid-caps and small caps also came under pressure today, but did better than the large caps. They opened with modest losses but drifted down in afternoon trades as many prominent mid-cap index stocks came under selling pressure.

The CNX Mid-Cap index ended with gains of 43 points, or 0.85 per cent, at 5037. BSE mid-cap index lost 0.61 per cent and the BSE small cap index ended with losses of 0.68 per cent.

Torrent Power got re-listed on the exchanges today after a reorganisation and consolidation of group companies. The stock opened at Rs45 and touched a high of Rs77 before finally ending at Rs71

Pearl Polymers saw a steep rise and ended the day on 20 per cent upper circuit. Amar Remedies gained close to 20 per cent while Godfrey Phillips was locked in 10 per cent upper circuit.

Indo-Tech Transformers, Hanung Toys, Shiv-Vani Oil, Celebrity Fashions, KEI Industries and Suryajyoti Spinning were the other major gainers among mid-caps

Among prominent mid-caps, India Bulls lost 5.72 per cent and Godrej Industries ended 5 per cent lower. Aban Offshore lost 5.2 per cent

Shivam Autotech, Mid-day Multimedia, Malu Paper, Dhanalakshmi Bank, Atul Products, HOV Services and UTV Software were among the major mid-cap losers.

Mid-cap news flow

• Force Motor would transfer its heavy commercial vehicles division to a JV with German truck company Man. Force would invest Rs100 crore in the JV which would launch heavy trucks in the country.
  
  
• Hinduja TMT said its BPO division would process insurance claims at its Bangalore centre for a large global insurance company. The company said the order would make it one of the largest third party BPO vendors in insurance.
  
  
• Unitech has issued non-convertible debentures worth Rs300 crore to LIC Mutual Fund.
  
  
• Varun Shipping has acquired a 2006-built Aframax class crude oil tanker for an undisclosed amount. The vessel would join the fleet early next year.
  
  
• Paramount Communications has successfully completed its $27 million FCCB issue.
  
  
• Godfrey Philips has denied media reports that the company is planning a bonus issue and stock split.
  
  
• Orient Ceramics would issue bonus shares in the ratio of 5 shares for every 4 shares held.
  
  
• KEI Industries would raise up to $36 million from an FCCB issue, which will close tomorrow.
  
  
• Natco Pharma has launched a new drug in the domestic market for treating lung cancer.
  
  
• IVRCL Infrastructure has received an order worth Rs388 crore for major irrigation projects in Andhra Pradesh.
  
  
• Kalpataru Power has commissioned its second 7 MW bio-mass based plant.
  
  
• A consortium of Sadbhav Engineering and PBA Infrastructure have won an order worth Rs297 crore for construction of roads. Sadbhav holds 51 per cent while PBA holds the rest.
  
  
• Pondy Oxides would issue bonus shares in the ratio of one share for every 10 shares held.
  
  
• Karur KCP Packaging has won new export orders worth $1.65 million
  
  
• Punj Lloyd has denied media reports that the company is planning a refinery in Russia.
  
  
• BLB Limited would diversify into insurance broking and real estate besides expanding its network
  
  
• Pioneer Embroideries would raise capital from an overseas issue.
  
  
• GNFC has re-started operations at all its plants after a maintenance shut down.
  
  
• Vijay Shanthi Builders would issue 19 lakh warrants on a preferential basis which are convertible at a price of Rs56 per share.
  

*Disclaimer: The author may have positions in some of the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever.