Mumbai, Sept 20 (PTI) The BSE benchmark Sensex recovered some of its initial losses but still down by 106 points today due to persistent selling pressure in view of political crisis following the decision of Trinamool Congress, a key ally of the UPA government, to withdraw its support.
Sensex resumed lower from 18,292.22 and dropped further to 18,291.93. Immediately recovered to 18,423.65 before quoting at 18,389.58 at 1025 hrs, still down 106.43 points or 0.58 per cent from Tuesday's close.
The NSE 50-share Nifty also dropped by 34.70 points or 0.62 pct to 5,565.35.
Major losers were BHEL (3.02 pc), Gail India (2.41 pc), HDFC (2.19 pc), Sterlite (2.11 pc), L&T (1.80 pc), Hero MotoCo (1.54 pc), RIL (1.32 pc), Tata Steel (1.27 pc) and Coal India (1.14 pc).
Asian stocks fell from the highest level since May today after Japanese exports dropped for the third month. Key indices in China, Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan dropped by up to 1.1 per cent.
However, Foreign institutional investors continued to make heavy purchases for the third day in a row on Tuesday. FIIs bought shares worth a net Rs 1049.18 crore September 18 as per the provisional data from the stock exchanges.
Indian stocks to watch-Sept 20
Nifty futures on Singapore Exchange were down 0.04 percent, while the MSCI-Asia Pacific index excluding Japan was down 0.6 percent.
U.S. stocks rose on Wednesday as investors dipped back into the market after the recent pullback from a rally that lifted the S&P 500 to just shy of five-year highs.
Asian shares fell on Thursday as investors awaited manufacturing data from China later in the session for clues about whether Beijing would be prompted to take more stimulus action in the world's second-biggest.
FACTORS TO WATCH
India's opposition parties will stage a nationwide strike against FDI in retail and the fuel price hike.
India to auction 341.6 billion rupees ($6.35 billion) in debt auction limits for foreign institutional investors.
Indian government to review the countrywide status of cane planting which has been hit by poor monsoon rains in some producing belts. (1030GMT)
India's weather office to release weekly data on the monsoon rainfall for the past week in the second half of the day. (0930GMT)
INDIAN STOCKS TO WATCH
The biggest ally in Prime Minister Manmohan Singh's government pulled out of the ruling coalition on Tuesday, escalating a political firestorm over big-ticket reform measures launched last week to revive India's flagging economy.
India's crisis-torn government looked set to offer a limited rollback of its hike in diesel prices on Wednesday after a key ally withdrew from the coalition, reducing it to a minority administration and raising the risk of an early election.
State Bank of India, has cut its base rate, the minimum interest rate at which it lends, by 25 basis points to 9.75 percent with effect from Thursday, it said in a statement late on Tuesday.
IDFC Private Equity, a unit of India's Infrastructure Development Finance Co, has invested about 1.55 billion rupees ($28.80 million) in private Indian dairy firm Parag Milk Foods, the companies said.
The Reserve Bank of India has not ruled out buying bonds in the open market to inject liquidity despite cutting the cash reserve ratio for lenders, deputy governor Subir Gokarn said on Tuesday.
Suzlon Energy, the world's fifth-largest wind turbine maker, plans to extend the maturity of convertible bonds due Oct. 11 by four months to give it time to raise funds to repay bondholders.
Concerned over rising gold imports, the Reserve Bank of India said it is planning to come out with financial products on the lines of gold ETFs to give options to investors to take advantage of price movement in the precious metal.
The Cabinet Committee on Economic Affairs (CCEA) is likely to consider on Friday a proposal to raise price of sugar sold through state rationing shops. If approved, it would be the first hike in about a decade.
ONGC Videsh, the overseas arm of ONGC has held initial talks with Cairn India for a partnership in Sri Lanka, where Cairn drilled successfully to announce the island's first hydrocarbons discovery, said a senior industry source.
ONGC plans to raise natural gas production by over 7.22 million standard cubic metres per day (mmscmd) in next two years to meet the growing energy deficit in the country, official sources said.
Finland-based Fortum is looking to invest up to 250 million euros (about 1.76 billion rupees) in India's power market, President and CEO Tapio Kuula said.
Turning a profit in India for global supermarkets is widely expected to prove even tougher than in China, where Wal-Mart Stores Inc loses money after a dozen years and restrictions are fewer than those imposed by India.
Norwegian telecoms firm Telenor is in talks with several potential new partners in India, Chief Executive Jon Fredrik Baksaas said on Wednesday.
Telenor may not get licences for all its planned circle areas in India, depending on the result of the upcoming spectrum auction, the firm's chief financial officer said on Wednesday.
The Competition Commission has sent notices to 17 car makers on an alleged anti- ompetitive practice of selling spare parts at higher prices to consumers and it is likely to schedule the hearings for next month to seek explanations.
Hero MotoCorp is likely to end the July-September period with its sharpest year-on-ear drop in quarterly sales in at least a decade as rising petrol prices and high interest rates have forced people to put off purchases.
The company will build 448,000 units this month, according to the production plan. This would put sales for the quarter at 1.4 million, down 9.3 percent from a year earlier.
PSA Peugeot Citroen has surrendered its right to a 600-acre tract of land at Sanand, Gujarat, an upcoming auto hub, where it planned to set up a 40-billion rupees manufacturing facility, Economic Times reported without citing a source.
Gujarat Industrial Development Corporation (GIDC), the agency for allotting land for industries in Gujarat, confirmed the development in Peugeot Citroen's local subsidiary. All their plans for India are on hold as of now, said M Sahu, MD of GIDC.
Fiat will launch its own sales outlets in India by March, completing separation from former joint venture partner Tata Motors, said Ravi Bhatia, vice-president (commercial) at Fiat India Automobiles. Fiat is aiming to achieve a 10-fold increase in market share, he said.
A lenders' consortium has agreed to finance cash-strapped newspaper publisher Deccan Chronicle Holdings so that its team, Deccan Chargers, can play in next year's edition of the Indian Premier League (IPL).