Sensex falls below 19,000
The market declined sharply below 19,000 points in the mid-morning trade. Market had earlier recovered from lower level in early trade. Reliance Industries declined further. Capital goods, banking, power and metal stocks were major losers. Market breadth turned negative. Profit taking was witnessed in mid-cap and small-cap counters as well. Asian markets were trading in red.
At the time of opening bell, rising Ascendant is Sagittarius with Leo Navamansha. Moon is posited in watery sign with watery navamansha. Ganesha feels that retrograde Mars is not good for Stock Market's Bull. Over and above Sun-Jupiter square aspect is favorable for Bear.
Data showing heavy FII sales on Tuesday, 20 November 2007, weighed on the market sentiment. The market sentiment was also impacted by media reports that the government is considering raising the securities transaction tax (STT), with one of the options being increasing the ceiling to 0.5%. Finance minister P Chidambaram could move an appropriate amendment to the Finance Act, 2007, in Parliament in the current winter session for raising STT, reports suggest.
Mars, being lord of twelfth and seventh house in India's chart is retrograde. Ganesha feels that FII's activity of withdrawing fund may continue till December 2007. As per provisional data, FIIs sold shares worth a net Rs 1800.68 crore in the cash market on Tuesday, 20 November 2007. Domestic institutional investors (DIIs) were net buyers of shares worth Rs 463.95 crore on Tuesday, 20 November 2007.
Index heavyweight and India's largest private sector firm by market capitalisation Reliance Industries declined 1.25% to Rs 2,752. As per reports, Reliance Industries (RIL) has signed production sharing agreement (PSA) for two exploratory blocks 34 and 37 located in the Jeza basin of eastern Yemen, taking its total number of overseas exploratory blocks to nine.
Capital goods stocks declined. Larsen & Toubro slipped 2.18% to Rs 4,244.80 on BSE, after the company said on Tuesday 20 November 2007 it had signed an agreement with Raytheon for the US defence major's multi-role fighter jet programme, besides co-operation in defence projects. Bharat Heavy Electricals (down 2.08% to Rs 2,596) and Suzlon Energy (down 1.77% to Rs 2,005) were other losers from capital goods sector.
IT stocks declined.Satyam Computer Services (down 2.26% to Rs 409.10),Wipro (down 1.95% to Rs 439.90), Infosys (down 0.44% to Rs 1,557.50) and Tata Consultancy Services (down 0.53% to Rs 956.95) edged lower.
Asian markets fell after the Federal Reserve said US economic growth would probably slow in 2008. Hong Kong's Hang Seng (down 3.33% at 26,845.67), Japan's Nikkei (down 1.94% at 14,916.74), Singapore's Straits Times (down 1.41% at 3,389.82), Taiwan's Taiwan Weighted (down 1.79% at 8,519.16), South Korea's Seoul Composite (down 3.11% at 1,814.59), edged lower.
US markets recovered in late trade on speculation of possible rate cut on 11 December 2007. The Dow Jones industrial average gained 51.70 points, or 0.04%, to 13,010.14. The Standard & Poor's 500 index advanced 6.43 points, or 0.45%, to 1,439.70, and the Nasdaq Composite index surged 3.43 points, or 0.13%, to 2,596.81.
Jupiter will be transiting from its sign Sagittarius. Ganesha feels that the number and proportion of FII shall become greater than previous year in forthcoming year. But on the other hand Rahu and Ketu will change its sign During April 2008. This indicates heavy volatility in Equity and Commodity markets. A large number of foreign investors want to register in India to participate in the booming stock market, Securities & Exchange Board of India (Sebi) chief M. Damodaran, told a business conference on Wednesday, 21 November 2007.
The Ganeshaspeaks Team