 "Market cautious over rate hike, sustained selling by FIIs")
• The key benchmark indices cut losses after sliding to fresh intra-day lows in morning trade as Asian stocks and US index futures rose, boosted by news that Al-Qaeda leader Osama bin Laden, the perpetrator of the September 11 terrorist attacks in the US, is dead.
• The BSE 30-share Sensex was down 56.98 points or 0.30 percent to 19,078.98, up 40.88 points from the day’s low and off 174.89 points from the day’s high. The market sentiment was weak on data showing sustained selling by foreign institutional investors (FIIs) last week. Another reason why investors were cautious was because the central bank is seen raising key short-term interest rates by a minimum 25 basis points at a policy review tomorrow, 3 May 2011.
[caption id=“attachment_3589” align=“alignleft” width=“380” caption=“Choppy trade as market fears interest rate hike. Photo:AFP”]
[/caption]
• Index heavyweight Reliance Industries (RIL) denied media reports that the Directorate General of Hydrocarbons (DGH) may on Monday target the company for the fall in production at KG-D6 gas fields. Most auto stocks declined after reporting monthly sales.
• Cairn India rose 1.59%. A ministerial panel in today’s meeting will discuss Cairn Energy’s proposal to sell a majority stake in Cairn India to London-based miner Vedanta Resources. The panel, headed by Finance Minister Pranab Mukherjee, is expected to send its recommendations to the Cabinet on the deal that was proposed in August 2010. Other panel members include Oil Minister Jaipal Reddy, Telecommunications Minister Kapil Sibal, Law Minister Veerappa Moily and Planning Commission Deputy Chairman Montek Singh Ahluwalia.
• India’s largest car maker by sales Maruti Suzuki India fell 1.33% after total sales rose a muted 4.4 percent to 97,155 units in April 2011 over April 2010. Domestic vehicle sales rose 8.9 percent to 87,144 units in April 2011 while exports fell 23.1 pecent to 10,011 units in April 2011.
• Infrastructure Development Finance Company (IDFC) lost 2.27 percent. Consolidated net profit rose 25.7 percent to Rs 286.67 crore on 26 percent rise in total income to Rs 1307.48 crore in Q4 March 2011 over Q4 March 2010.
• India’s top listed cellular services provider by sales Bharti Airtel rose 0.58% on reports the company plans to raise $750 million to $1 billion through a global bond issue to retire its costly Africa debt and fund expansion there.
• Steel Authority of India (Sail) fell 0.63 percent after net profit declined 27.71 percent to Rs 1507.12 crore on 0.09 percent fall in net sales to Rs 11944.74 crore in Q4 March 2011 over Q4 March 2010.
• The key benchmark indices in South Korea, Japan and Indonesia rose between 0.49 percent and 1.49 percent. Markets in China, Hong Kong, Singapore and Taiwan were closed for a local holiday.