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Friday, September 12, 2008

Post Session Commentary - Sep 12 2008


Domestic markets suffered another setback today and close down deep in red. It was one more terrible session for the markets, as were under pressure for the fourth successive day. BSE Sensex closed around 14,000 level and NSE Nifty ended around 4,200 mark. After a strong start to the session the market was not able to sustain the momentum and gave up its gains to trade sharply lower despite a fall in weekly inflation figures to 12.1% along with more than expected growth in IIP numbers to 7.1% in July 2008 against 5.4% previous month. The bears took complete charge as markets showed harsh slide during last trading hours to end the day with huge losses. Weak European markets also contributed to the sentiments. From the sectoral front, all the indices ended with losses and IT stocks were major contributor to drag down the market as closed with loss of more than 4%. Mid cap and Small cap stocks also remained unfavorable as they closed with a cut of more than 1%. Other than that, heavy selling was seen in Oil & Gas, Reality, Metal, Bank and Capital Goods stocks. The market breadth was negative as 1848 stocks closed in red while 818 stocks closed in green and 74 stocks remained unchanged.

The IIP data came in better than expected as it rose 7.1% in July 2008 as against 5.4% in the previous month 8.3% for the same period of previous year. Capital Goods showed a descent growth to 21.9% as compared to 12.3%(YoY). However, growth in manufacturing declined to 7.5% from 8.8%(YoY).

The BSE Sensex closed lower by 323.48 points at 14,000.81 and NSE Nifty ended down by 61.85 points at 4,228.45. The BSE Mid Caps and Small Caps closed with losses of 110.06 points at 5,537.14 and by 107.39 points at 6,711.54. The BSE Sensex touched intraday high of 14,433.20 and intraday low of 13,933.87.

Losers from the BSE are Reliance Infra (6.32%), Infosys Tech (6.00%), Reliance (4.13%), ICICI Bank Ltd (4.89%), HDFC (3.84%), DLF Ltd (3.64%), Satyam Comp (3.47%), TCSLtd (3.34%), Reliance (3.31%), Seterlite In (3.11%) and JP Associates (2.96%).

The BSE Oil & Gas index closed lower by 223.30 points at 9,116.44 as Reliance Natural Resources (3.67%), Reliance (3.31%), HPCL (2.61%), Essar Oil Ltd (2.50%), Gail India (1.56%) and ONGC Ltd (1.22%) ended in negative territory.

The BSE IT index dropped by 183.70 points to close at 3,806.74. As Infosys Tech (6.00%), NIIT Ltd (5.35%), Oracle Fin (5.07%), Rolta India (4.37%), HCL Tech (3.68%) and Patni Comp (3.64%) closed in negative territory.

The BSE Reality index plunged 182.11 points to close at 4,693.72. As Indiabull Real (6.27%), Orbit Co (5.73%), Ansal Infra (5.50%), Pheonix Mill (5.22%), Housing Dev (5.10%) and Akruti City (4.92%) closed in negative territory.

The BSE Bank index closed lower by 181.44 points at 7,029.22. Losers are Kotak Bank (5.33%), ICICI Bank Ltd (4.89%), Oriental Bank of Commerce (4.76%), Yes Bank (4.24%), Canara (2.75%) and Karnataka Bank (2.01%).

The BSE Metal index lost 110.37 points to close at 10,881.42. Major losers are Jindal Steel (4.03%), Seterlite In (3.11%), Welspan Gujarat Sr (2.86%), Jai Corp Ltd (2.65%), Ispat Indus (1.93%) and NMDC Ltds (1.17%).

The BSE Capital Goods index ended down by 104.42 points at 11,836.58. Major losers are Gammon India (3.67%), Suzlon Energy (3.49%), Alstom Proje (3.02%), Siemens Ltd (2.82%), Bharat Bijli (2.74%) and Reliance Industrial Infra (2.59%).