Sensex slide leads to falling turnover, volumes
Mumbai— The foreign institutional investors (FIIs) prefered to stay away from the market on the first day of the new settlement at the Bombay Stock Exchange, (BSE).

This directly impacted the trading volume and value of the markets.
BSE registered a meagre trading turnover of only Rs 1,115 crore while NSE clocked the total turnover in the region of Rs 1,500 crore. The average combined turnover of both the exchanges was around Rs 4,500 crore last week, which came down to Rs 2,600 crore on Monday.
At BSE, on Monday more than 6.8 crore shares were traded while on the previous trading day (last Friday) it recorded trading in 9.12 crore shares. Similarly at NSE, as compared to around 24 crore shares traded on Friday last it recorded trading only in 18.92 crore shares.
The top five stocks in terms of value were stocks like Satyam Computers, which led the pack. The stock registered highest trading volume of Rs 120.05 crore and 57.73 lakh shares changed hands.
Infosys Technologies came second with the trading turnover of Rs 109.14 crore in 2.96 lakh shares. Global Telesystems was third registering a turnover of Rs 74.22 crore in 34.60 lakh shares.
Digital Equipment and Wipro saw huge offloading from operators. Digital was down from Rs 553.95 to Rs 532.20 and clocked a turnover of Rs 65.71 crore in 12.16 lakh shares coming at fourth place. Wipro on the other hand saw a turnover of Rs 64.54 crore and 4.04 lakh shares changed hands.

From the old economy sector cement stocks figured in the top 10 most active stocks, they included Tata Steel, Reliance Industries Limited (RIL) and Cement major ACC.
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UTI selling wave—sensex down by 59 points
Mumbai-- Starting the week on a relatively weaker note, players on both the BSE and the NSE resorted to selling led by UTI. This saw the benchmark Sensex losing more than around 59 points while the NSE’s S&P CNX Nifty was down 21 points.
While the downgrading of India’s sovereign rating and concerns of slowdown in the US economy affected the sentiments, brokers said all-round selling by UTI contributed the most to the downslide.
UTI is facing huge redemption pressure in the wake of its problems in maintaining the net asset value (NAV) for its premier unit scheme US-64. The UTI will announce its annual performance on June 30.
The Sensex opened slightly better at 3565.88 from 3557.64 recorded on Friday. It climbed to the day’s high of 3590.56 before the mid-session and dipped 100 points to reach intra-day low of 3490.83 before closing at 3498.38, a loss of 59.26 points. Nifty followed suit to close at 1127.20, a loss of 20.85 points.
Glaxo India was down 5.9 per cent at Rs 361.80, on news of decline in the turnover of the company by 8.2 per cent during the first five months of the current year as compared to the same period a year ago.
Grasim Industries was down 3.98 percent; Infosys Technologies was also down by 3.44 per cent. The other losers were Mahindra & Mahindra, Satyam Computer, Reliance Petroleum, HLL and NIIT.
Stocks like Shrirama-Multitech, Tata Chemicals, Thomas Cook, ICICI Ltd, BPCL and Sun Pharma were the major gainers while ACC, Hindalco, MTNL, Colgate, Castrol, Cipla and Dr Reddy’s Lab saved the day for the Sensex.
Dr Reddy was also a gainer and the impact of licensing of its anti-diabetic molecule to Novaritis AG continued to fall on the stock price, which increased by another 2.74 per cent to close at Rs 1,478.40.  
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Corporate FDs interest capped at 14 percent
New Delhi—The Department of Company Affairs (DCA) has reduced the existing cap on interest rates on FDs raised by corporates by 1 percent to 14 per cent. The capping was done through a notification issued late last week.
Senior DCA officials said the rates had been reduced in consultation with the Reserve Bank of India in order to align them with the FD rates offered by the NBFC sector.
At the ground level, the cut may not mean much since companies such as BPCL, Indo Gulf and Indal have been able to raise money at sub 10 per cent rate through issue of non-convertible debentures (NCDs).
The NCD rates are low on account of excess liquidity in the system, which may pass over time, but the DCA rate cut would have the effect of signalling a downward movement in the overall rates. This amendment also means that, manufacturing companies inviting deposits from the public would not be able to pay more than 14 per cent return on the deposits accepted.

The alignment is in line with the overall policy of the apex bank to depress the overall interest rates sufficiently to make the cost of funds cheaper for industry.
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