Persistent selling activity during the final hour of trade led the indices to end the day on a weak note. The BSE-Sensex ended lower by around 200 points, while the NSE-Nifty closed lower by about 80 points. Stocks from the mid-cap and small-cap spaces ended the day on a weak note as well, recording losses of about 0.6% and 0.3% respectively. While stocks from the oil & gas and metals space led the pack of losers today, stocks from the FMCG and capital goods sectors managed to garner investors’ interest.
Other Asian markets ended the day on a mixed note today. The European indices are currently trading in the red. The Rupee was trading at 48.55 against the US dollar at the time of writing.
Retail stocks ended the day on a mixed note. While Shopper’s Stop ended the day on a firm note, Trent and Pantaloon ended the day on a weak note. Retail major, Pantaloon is planning to invest about Rs 2.5 bn within the next eighteen months for setting up ten ‘Central malls’ across India. As per the management, the company will be expanding its retailing space by about 10% to 12% as it plans to add nearly 1.5 m to 1.7 msqft (million square feet) to its existing retail space of about 14 msqft. Some of the locations the company has identified include Ahmedabad, Bangalore, Vizag, Raipur and Jaipur. As per a leading business daily, the company has already tied up funds for the same. Last month, the company had raised about Rs 3.7 bn through a preferential allotment. Further, it is believed that the company will raise long term funds to the tune of Rs 10 bn by issuing securities to various investors.
Energy stocks ended the day on a weak note led by Reliance Industries, GAIL and Gujarat Gas. As per a leading business daily, upstream energy major, ONGC has made oil and gas discoveries in three regions – Cambay basin, Matar (Gujarat) and KG Basin. The company is believed to have found oil in the Cambay basin, oil and gas in Matar and gas in the KG basin. However, the reserve estimates for these locations are still unknown. This is a welcome development for the company at a time when it is actively scouting for hydrocarbon assets both in India and abroad in order to boost India’s energy security.
Apparel exports for the month of April 2009 have fallen by about 10% YoY. According to official numbers, garment exports dropped from US$ 886 m in April 2008 to US$ 800 m in April this year. Considering that demand from Europe and the US has been on the decline over the past few months, the industry is expecting a 10% to 15% YoY fall in exports during the month of May 2009. In addition to this, the industry’s exporters have also been facing stiff competition from countries such as Vietnam, Cambodia and Bangladesh.
