10:00AM New York, 7:30PM Mumbai – Mumbai stocks decline ahead of the rate cut in the U.S. Net profit at Reliance Communications, Nestle India, HDFC and Videocon rises.

Market Sentiment

India market fell on Wednesday as profit taking pulled the market lower. The U.S. Fed rate cut mattered to investors, more than 30% of stocks in India are held by international investors. Large cap companies Reliance Industries and ICICI Bank lost the ground.

At close, the 30-share BSE Sensex declined 0.5% or 91.15 at 17,287.31. On the National Stock Exchange Nifty fell 0.6% or 29.6 at 5,165.90.

Banks led by ICICI Bank declined. Realty, oil and gas and consumer durables stocks fell. However, auto, software and consumer stocks gained.

Of the BSE traded shares, 1,296 stocks gained, 1,397 stocks declined while 75 remained unchanged.

Turnover

Daily turnover on the BSE stood at 6,856 crore rupees and 16,448 crore rupees on the NSE.

Sesa Goa was the most active stock on the BSE with the highest turnover of 258.69 crore rupees followed by Reliance Petroleum, Reliance Communications, Titagarh Wagons and Reliance Capital.

Gainers and Decliners

Titan Industries fell 4.5% to 1,244.30 rupees and Asian Star Company declined 1.3% to 1,275.30 rupees.

DLF fell 2.8% to 705.25 rupees, Unitech lost 2.2% to 310.40 rupees and Indiabulls Real Estate fell 1.7% to 547.75 rupees.

ICICI Bank declined 2.4 % to 879.40 rupees, HDFC Bank declined 2.1% to 1,514.85 rupees and, State Bank of India was down 1% to 1,776.35 rupees.

ITC gained 3.6% to 219.80 rupees and Tata Tea was up 3.7% to 912.25 rupees.

Hindustan Unilever remained unchanged at 250.65 rupees.

Mahindra & Mahindra gained 4.3% to 670.40 rupees, Maruti Suzuki India surged 1.5% to 741.90 rupees, Tata Motors rose 3.5% to 662.20 rupees and Hero Honda Motor fell 1.6% to 848 rupees.

Wipro closed up 2% to 488.60 rupees, Infosys gained 0.2% to 1,753.75 rupees Tata Consultancy Services rose 1% to 919.55 rupees and Satyam Computer Services surged 0.6% to 482.20 rupees.

Grasim Industries closed down 2.8% to 2,402.75, Hindalco Industries fell 2.3% to 193.60 rupees and ACC declined.

NTPC rose 1.1% to 196.75 rupees on the news that its board had approved spending 487 crore rupees on renovating Auraiya gas power station in Uttar Pradesh.

Reliance Update