Domestic markets suffered sever setback today, 16 August 2007, and settled near day’s low on intense selling pressure throughout the day. Earlier today, the market opened on a extremely bearish note following weak global cues. However the turnover was high today. Also the Japanese yen appreciated sharply against the US dollar today, and was hovering at 114 level. This might have led to yen carry trade unwinding.

All the sectoral indices on BSE settled with losses. All the Asian and European markets were gripped by intense selling pressure.

Back home, the BSE 30-share Sensex slumped down 642.70 points or 4.28% at 14,358.21, the second most point fall in a day. The Sensex opened with a sharp 416-point downward gap at 14,584.92 and slipped to touch a low of 14,345.03 at 15:22 IST.

Sensex oscillated 203.89 points between the day's low of 14,345.03 and high of 14,584.92

The S&P CNX Nifty lost 191.60 points or 4.38% at 4,178.60. The Nifty August 2007 futures settled at 4144.95, a discount of 33.65 point as compared to spot closing

The Sensex’s biggest single day fall of 826 points had occurred on 18 May 2006. Fears that a possible change in taxation laws on sale of shares would raise tax-liability for FIIs had triggered sharp fall on that day when margin calls had accentuated the decline.

All the sectoral indices on BSE were trading lower. The BSE Auto index (down 3.11% to 4,662.17), BSE Oil & Gas index (down 4.37% to 7,504.59), BSE PSU index (down 3.93% to 6,729.50), BSE Capital Goods index (down 4.43% to 12,214.56), BSE Healthcare index (down 2.83% to 3,526.95) and BSE TECk index (down 3.80% to 3,535.42), all edged lower.

The total turnover on BSE amounted to Rs 5,291 crore as against Rs 4,232 crore on Tuesday, 14 August 2007

The NSE F&O turnover was Rs 46447.41 crore as compared to Rs 28493.98 crore on Tuesday, 14 August 2007

The market breadth indicating the overall health of the market was weak as small-cap and mid-cap stocks came under selling pressure. However, the breadth had improved from opening trade. On BSE, 1866 shares declined as compared to 861 that advanced, while 42 remained unchanged.

The BSE Small-Cap Index slipped 2.95 to 7,797.26 while the BSE Mid-Cap Index declined 3.21% to 6,352.44

All the shares from the 30-member Sensex pack declined.

BSE metal index bore the highest brunt amongst the sectoral indices in the market mayhem today. It fell 6.51% or 717 points to 10,299. It touched a high of 10,690 and low of 10,273 during the day.

Tata Steel, the country’s largest private sector steel maker, plunged 10.24% to Rs 576 on 26.01 lakh shares. It was the top loser from the Sensex pack.

Other metal shares Sterlite Industries (down 8.21% to Rs 558.45), JSW Steel (down 5% to Rs 614) and Sail (down 2.41% to Rs 143.85) were not spared either.

Hindalco Industries, the country’s largest aluminium company, lost 5.60% to Rs 145.35. As per reports, it plans to become supplier to the car market. The Aditya Birla flagship, which also makes copper and owns mines, will soon make high-grade aluminium products for the body-in-white segment of cars as part of an integration process following its recent acquisition of Novelis.

Tata steel, Sterlite Industries and Hindalco Industries have weightages of 27.51%, 17.73% and 13.99% respectively in BSE Metal index. BSE Metal Index had declined 8.89% over the last one month to 14 August 2007.

IT pivotals recovered from their lows as the Indian rupee fell to its weakest in two months as global funds sold emerging-market assets as losses from subprime loans in the US deepened. The Indian rupee was quoted at 41.17 per unit of US dollar. It had closed at 40.76 on Tuesday, 14 August 2007. The BSE IT index declined the least among the sectoral indices on BSE, by 2.61% to 4,637.13

Though Satyam Computers (down 1.47% to Rs 469), Infosys Technologies (down 1.65% to Rs 1922) and Wipro (down 2.73% to Rs 468), were trading lower, they had recovered sharply from their low. A rise in the rupee adversely affects the margin of IT companies. Hence, any signs of the rupee weakening boosts IT stocks.

Telecom shares were off-loaded. Mahanagar Telephone Nigam (MTNL) lost 5.20% to Rs 134.95 on reports that it has joined the race to pick up a 51% stake in Telkom Kenya. The other Indian listed players who are learnt to be bidding for a majority stake in the Kenyan government controlled company include Bharti Airtel (down 6.97% to Rs 798) and Reliance Communications (down 5.75% to Rs 494.35) also declined.

India’s biggest power generation firm by sales National Thermal Power Corporation shed 3.21% to Rs 167.20. The Union Ministry of Coal has granted in-principle approval for allocation of a new coal block, Chhati Bariatu South, to NTPC. This will help the company's efforts to secure long-term supplies of coal.

India’s biggest private sector entity and oil refiner Reliance Industries lost 5.40% to Rs 1732.90 on 11.52 lakh shares. As per reports, the Prime Minister’s Economic Advisory Council (EAC) has endorsed the gas price discovered by RIL by inviting bids from large consumers in the domestic market. RIL will also benefit from the government’s recent decision to impose anti-dumping duty of $545.22 (about Rs 22,000) per tonne on import of partially oriented yarn (POY) from China.

Ranbaxy Laboratories lost 3.56% to Rs 30.50 on reports that Europe’s third-biggest drugmaker Novartis has sued the company to block sale of a blood-pressure medicine Diovan, in the United States.

ACC (down 0.57% to Rs 984.70), Dr Reddy’s Laboratories (down 1.49% to Rs 628), and Hindustan Unilever (down 2% to Rs 196) outperformed the market.

BSE Realty index was the second worst performer today as it slumped 5.56% or 410 points to 6980.08. Realty majors Unitech (down 8.06% to Rs 466.40), Indiabulls Real Estate (down 6.23% to Rs 458.95) and Sobha Developers (down 6.13% to Rs 741), edged lower.

Housing Development and Infrastructure declined 7.50% to Rs 504. As per reports, it has tied up with Lehman Brothers to bid for the redevelopment of Asia’s largest slum, Dharavi. The project is expected to generate close to Rs 25000 crore in revenue for the Maharashtra government.

Parsvnath Developers slumped 9.36% to Rs 299.80. Its board approved private placement of non-convertible debentures worth Rs 300 crore.

The third biggest fall was seen in Bankex which lost 5.42% or 424 points to 7,421, due to credit related problems globally. Banking heavyweights ICICI bank (down 5.17% to Rs 832.30), State Bank Of India (down 5.78% to Rs 1521.60) and HDFC Bank (4.62% to Rs 1094).

Gabriel India (up 21.25% to Rs 31.10), English India Clays (up 20% to Rs 576), Jindal Hotels (up 19.91% to Rs 53.90), Titagarh Industries (up 14.92% to Rs 41.20), LML (up 9.93% to Rs 14.28), and DIL (up 7.96% to Rs 297) were the top gainers from the small-cap and mid-cap basket.

IVRCL Infrastructures (down 11.96% to Rs 333), Shakti Pumps (down 11.17% to Rs 132.40), Omnitech Solutions (down 10.30% to Rs 147.60), Petron Engineering (down 9.68% to Rs 199.20), and Orbit Corporation (down 9.89% to Rs 443.65) were the top losers from the small-cap and mid-cap basket.

Kernex Microsystems India jumped 5% to Rs 312.20. On 10 August 2007, the company said it had executed a service contract with Konkan Railway Corporation, Mumbai, for providing operational maintenance and annual maintenance contract services for the anti-collision systems. The estimated amount of contract for operation and maintenance of ACD systems will be about Rs 28.50 crore. It had gained 10% in the past two trading sessions to Rs 297.35 on 14 August 2007.

Sical Logistics lost 6.85% to Rs 225.15. It acquired a cutter section dredger for $24.92 million to expand operations in the global offshore market. The dredger will be deployed in the Chinese dredging market, and is estimated to earn revenue of about $9.8 million annually.

Engineers India declined 2% to Rs 453 despite despite winning an order worth $27 million from Abu Dhabi Polymers Company, Abu Dhabi, to manage construction of petrochemical complex in Abu Dhabi. The company made this announcement after market hours on Tuesday 14 August 2007.

Realty major DLF was down 2.70% to Rs 587 in spite of reports of its imminent purchase of DCM Shriram Consolidated’s mill land in Delhi for Rs 1600 crore. As per reports, DLF is set to buy about 38 acres of land in New Delhi for more than Rs 1600 crore. The deal to buy Swatantra Bharat Mills from DCM Shriram Consolidated, about 4-5 km from Delhi's central business district will be the largest private sector land deal in the country.

DCM Shriram Consolidated also slipped 1.92% to Rs 84.20, after hitting a high of Rs 90.10

Ispat Industries gained 5.48% to Rs 14.82 on media reports that it plans to invest about Rs 10,000 crore within five years to ramp up domestic production. Ispat Industries is also planning to expand overseas through capacity expansion and backward integration.

Bongaigaon Refinery and Petrochemicals advanced 4.17% to Rs 57.50 as investors mopped up the stock due to attractive dividend yield. The company has declared dividend of Rs 3.50 per share and the stock continues to trade cum-dividend. At the current market price of Rs 57.50, the dividend yield works out to 6%. The stock becomes ex-dividend from 21 August 2007.

Industrial Development Bank of India was down 5.07% to Rs 118. As per reports, the bank aims to raise Rs 300 crore in debt in the current fiscal year.

Hindustan Copper jumped 5% to Rs 145.85. After market hours on Tuesday, 14 August 2007, the government sanctioned the financial restructuring proposal of the company approving conversion of non-plan loan of Rs 50 crore into equity and waiver of 7.5% non-cumulative redeemable preference shares amounting to Rs 180.73 crore. The company also approved reduction of face value of equity shares from existing Rs 10 to Rs 5 per share.

Birla Kennametal advanced 5% to Rs 273.60 after it scheduled a meeting of the board of directors on 22 August 2007 to consider 5-for 1 stock-split.

Federal-Mogul Goetze (India) plunged 7% to Rs 148 after the company revised downward the price band for its rights issue. Federal-Mogul Goetze (India) said on Tuesday, 14 August 2007, its board had revised the pricing of its rights issue to Rs 145-Rs 170 per share, from the earlier band of Rs 180-Rs 215.

Domestic stock markets remained closed on 15 August 2007 on account of Independence day.

All Asian indices declined today, 16 August 207, as investors concerned over the health of global credit markets continued to sell stocks across the board.

Hong Kong's Hang Seng (down 3.29% at 20,672.39), Japan's Nikkei (down 1.99% at 16,149.49), Taiwan's Taiwan Weighted (down 4.56% to 8,201.37), Shanghai Composite (down 2.14% to 4,765.48), Singapore's Straits Times (down 3.70% to 3,152.16) and South Korea's Seoul Composite (down 6.93% to 1,691.98) edged lower.

US shares had tumbled yesterday, 15 August 2007, after the Federal Reserve added more cash to the banking system but failed to quash investors' jitters about problems in lending. The Dow Jones Industrial Average fell 167.45 points, or 1.29%, to 12,861.47. Broader stock indicators also declined. The S&P 500 index dropped 19.84 points, or 1.39%, to 1,406.70. The Nasdaq Composite index lost 40.29 points, or 1.61%, to 2,458.83.

Meanwhile as per reports, the Income Tax Department is likely to scrutinise tax returns of over 700 top companies, which include A-group category companies listed on the Bombay Stock Exchange and NSE-500, to detect possible tax evasion. For the returns filed till 31 July 2007, the Income tax officers can serve the scrutiny notice any time on or before 31 July 2008. Reports further said that all stock brokers and commodity brokers as well as their sub-brokers earning Rs 1 crore or more in brokerage will also be brought under the scrutiny net.

India’s indirect tax receipts rose 11.6% to Rs 66417 crore in April-July 2007 on robust customs collections, the finance ministry said on Tuesday, 14 August 2007.

US oil prices slipped below $73 a barrel on Thursday, 16 August 2007, on signs a major storm brewing in the Atlantic might not endanger Gulf of Mexico oil platforms. US crude oil prices fell 52 cents to $72.81 a barrel. London Brent crude lost 56 cents to $71.08 a barrel.