The market stayed weak almost throughout the day’s trading session. All the global markets were in the red, with the exception of China. IT stocks lost ground after IT bellwether Infosys Technologies today, 11 July 2007, cut its FY 2008 EPS and revenue guidance in rupee terms. Shares from the auto and banking pack also saw some profit booking. However, real estate, cement, metal and offshore oil services firms edged higher.

The BSE 30-share lost 99.26 points to 14,910.62. It opened lower at 14,948.15 and slumped to 14,829.55, tracking weak global markets. At the day's low of 14,829.55, the Sensex had shed 180.33 points for the day. The Sensex staged a smart recovery from the day’s low and moved into the positive zone at one point of time in mid-morning trade, when fresh selling emerged, once again pulling it lower.

The Sensex swung 186 points in the day in volatile trade.

The S&P CNX Nifty lost 18.90 points to 4,387.15. The Nifty July 2007 futures settled at 4385, a marginal discount of 2.15 points compared to spot closing.

The market breadth was positive on BSE as buying continued in small-cap and mid-cap stocks, despite the weak broad markets: 1,508 shares advanced as compared to 1,174 that declined, while 69 remained unchanged.

The BSE Mid-cap index was up 0.58% to 6,704.40. The BSE Small-cap index struck an all-time high of 8,090.13, and finally settled 0.81% higher at 8,074.86.

The total turnover on BSE amounted to Rs 5,473 crore as against Rs 5,111 crore on Tuesday, 10 July 2007. The NSE F&O turnover was Rs 34043.56 crore as compared to Rs 32720.71 crore on Tuesday, 10 July 2007.

Among the Sensex pack, 18 declined while the rest advanced

IT pivotals saw intense selling pressure right from the opening bell. Four of the top five losers from the Sensex were IT stocks. The BSE IT Index tumbled 3.34% at 4,868.77, and was the top loser among sectoral indices on BSE

IT bellwether Infosys Technologies slumped 4.65% to Rs 1,926, on high volumes of 15.32 lakh shares. It was the top traded counter on BSE with turnover of Rs 2,98.55 crore. It was the top loser from the Sensex pack.

The company today revised upwards its EPS guidance for FY 2008 (year ending 31 March 2008) in dollar terms to a growth of 28.4% to 29.7% compared to the earlier guidance of 25.7% to 27.7% growth. It has also slightly raised the revenue guidance in dollar terms to 29% to 31%, from the earlier guidance of a growth of between 28% to 30%.

EPS guidance in rupee terms has been cut to reflect a growth of 15.6% to 16.8% compared to the earlier guidance of 20% to 22% growth. It has also reduced the revenue guidance in rupee terms to 16.9% to 18.3%, from the earlier guidance of a growth of 22.6% to 24.6%.

Infosys' consolidated net profit as per Indian GAAP was down 5.6% to Rs 1079 crore in Q1 June 2007, from Rs 1,144 crore in Q4 March 2007. Revenue was almost unchanged at Rs 3,773 crore in Q1 June 2007 compared to Rs 3,772 crore in Q4 March 2007.

Satyam Computers shed 3.25% to Rs 481, TCS lost 3.10% to Rs 1,151 and Wipro lost 1.97% to Rs 510.50.

The Indian rupee eased on Wednesday, 11 July 2007 after a few foreign banks covered short dollar positions and oil refiners bought the US unit to fund imports. In early trade, the partially convertible rupee was at 40.4150/4250 per dollar, weaker than Tuesday's close of 40.3950/4050. It hit a nine-year peak of 40.28 in late May 2007.

Mid-cap IT stocks also declined. Infotech Enterprises (down 0.86% to Rs 382), Mastek (down 0.38% to Rs 285.15), MphasiS BFL (down 2.29% to Rs 307.50), Polaris Software (down 2.26% to Rs 151.70), and NIIt Technologies (down 1.74% to Rs 515.80) edged lower tracking frontline peers.

Auto stocks edged lower on profit booking. Tata Motors (down 1.97% to Rs 729.90), Mahindra & Mahindra (down 0.81% to Rs 782) and Maruti Udyog (down 0.37% to Rs 810) edged lower. The BSE Auto Index slipped 0.52% to 4,920.28.

Leading private sector lender ICICI Bank declined 1.10% to Rs 953 and State Bank of India slipped 0.88% to Rs 1537.

Metal stocks were in demand on renewed buying. The BSE Metal Index gained 1.48% to 11,104.86.

Steel maker Tata Steel galloped 4.20% to Rs 660.55 on 13.27 lakh shares. It was the top gainer among Sensex constituents. A recent report by a brokerage states that India’s steel consumption will grow 16% annually until 2012, or twice as fast as in the past five years, fueled by demand for construction projects worth $1 trillion. The construction industry, growing 60% a year, will keep steel mills running at near full capacity. The brokerage house expects global steel prices to rise in 2008 and 2009

Bhushan Steel (up 0.38% to Rs 713), JSW Steel (up 2.38% to Rs 670), Hindustan Zinc (up 3.27% to Rs 731) and Sail (up 1.66% to Rs 137.75) were the other gainers from metal sector.

Cement stocks advanced on renewed buying on expectation of strong Q1 June 2007 results. Cement major ACC (up 3.32% to Rs 1071.10), UltraTech Cement Company (up 1.60% to Rs 896.55), Birla Corporation (up 4.28% to Rs 286.20) and Grasim (up 2.77% to Rs 2802) edged higher.

Reliance Energy (REL) vaulted 2.10% to Rs 625.50 on its plans to invest Rs 60,000 crore to add 15,000 mega watts (MW) of power over the next five years. This will boost the company’s generation capacity almost 17 times from 941 MW now. The stock was also boosted by market rumors that promoters may hike their stake in REL by 5%, taking it around to 40%

The BSE Realty index, launched by BSE on Tuesday, 10 July 2007, surged today and struck an all time high of 7,644.80. It settled 3.38% higher at 7,626.53, and was the best performer among the sectoral indices on BSE. A heavyweight in this index, Unitech, rose 3.19% to Rs 542.90 and another heavyweight DLF surged 3.51% to Rs 591.80. Indiabulls Real Estate (up 8.12% to Rs 506.50) and Mahindra Gesco Developers (up 1.2% to Rs 556) also gained.

Offshore oil services firms were in demand on reports that rig rates have gone up by 10-15% globally. Dolphin Offshore (up 2.46% to Rs 285), Aban Offshore (up 1.88% to Rs 3075), Selan Exploration (up 7.11% to Rs 105.50) and SEAMEC (up 6.92% to Rs 250.20), all gained

Select PSU banks edged higher after bond yields fell to 4-½ month low today, raising hopes that interest rates had peaked at least for the time being. Indian Overseas Bank (up 7.39% to Rs 135.95), Union Bank of India (up 3.9% to Rs 148), Bank of India (up 4.22% to Rs 248.40) and Bank of Baroda (up 0.87% to Rs 277), edged higher.

HCL Technologies rose 0.42% to Rs 343 on opening of an offshore development centre in Chennai dedicated to Konica Minolta Group. The software services provided by HCL will support the Japanese language to communicate accurately with KM's researchers.

The contract is of three years' duration and extendable thereafter every year in which the five business companies of KM will outsource product engineering work to the company. HCL expects around $30 million worth of business in 3 years through this deal.

iGate Global Solutions declined 2% to Rs 291 on reporting a net loss of Rs 0.49 crore in Q1 June 2007 compared to a net profit of Rs 21.42 crore in Q4 March 2007. Sales declined 5.09% to Rs 185.25 crore in Q1 June 2007 compared to Rs 195.19 crore in Q4 March 2007. The results were announced before market hours today, 11 July 2007.

Reliance Natural Resources rose 3.59% to Rs 41.85 after the firm said on Tuesday, 11 July 2007, it had sought government approvals to set up city gas distribution projects in Delhi and its adjoining towns as well as in Mumbai. It also struck an all time high of Rs 42.25

Nagarjuna Construction Company was up 2.35% to Rs 207 on reports that private equity investor Blackstone is in talks to pick up a stake in the company. The Indian firm plans to raise up to $180 million (Rs 730 crore) through the sale of fresh shares to a few financial institutions including Blackstone.

Development Credit Bank rose 0.82% to Rs 110.85 after the private sector lender said its board approved preferential issue to sell 16% stake to five investors and raise around Rs 310 crore. The announcement was made after market hours on Tuesday, 10 July 2007. Each of the five investors will get up to 4.6% stake in the bank, where each share is priced at Rs 105 each.

The five investors are Tata Capital, Al Bateen Investment of the United Arab Emirates, GRA Finance Corporation, DCB Investments, Mauritius and India Capital Opportunities 1.

All Asian markets fell today, 10 July 2007, reacting to the sharp overnight fall on the Wall Street. The Japanese market fell, led by exporters such as Toyota Motor Corp. and Sony Corp., as the US dollar weakened against the yen. Japan's Nikkei plunged 1.11% to 18,049.51.

Hong Kong's Hang Seng (down 1.22% at 22,607.02), Taiwan's Taiwan Weighted (down 1% at 9,290.95), and Singapore's Straits Times (down 0.70% at 3,594.94) edged lower.

However China’s Shanghai Composite recovered after the initial fall. It was up 0.33% to 3,865.72l

All the European indices were trading with losses.

US stocks fell sharply on Tuesday, 10 July 2007, after investor enthusiasm was hit right at the outset of earnings season after both Home Depot Inc. and Sears Holdings lowered their forecasts.

The Dow Jones declined 148.27, or 1.09%, to 13,501.70. Broader stock indicators also dipped. The Standard & Poor's 500 index fell 21.73, or 1.42%, to 1,510.12, while the Nasdaq Composite index lost 30.86, or 1.16%, to 2,639.16.