Post Session Commentary - Sep 15 2008

Domestic markets continued to face bloodbath today on heavy selling pressures across all the indices to close deep in red on the back of negative global market led by credit crisis in the US financial space. Terror attacks in New Delhi also fueled to the investor’s attitude. BSE Sensex closed below 13,600 level and NSE Nifty ended below 4,100 mark. Indian markets today opened in extremely negative zone and crashed since initial bell on weak global cues. Further markets extended its losses and continued to remain under pressure. Sharp fall in European markets further added to the sentiments. Though some bit of recovery was happened during final hours on the back of news that China''s central bank, has cut benchmark lending rates by 27 basis points to 7.20%, today (15 September 2008) but still market closed with heavy losses. The People''s Bank of China (PBOC) also cut the reserve requirement for all except the country''s five biggest banks and the Postal Savings Bank by 1%. Credit crisis in US financial space played a crucial role in today’s turmoil. From the sectoral front, rate sensitive Reality and IT stocks witnessed huge selling pressure and ended with deep cut of more than 7% and 5% respectively. Followed by, Metal, Oil & Gas, Capital Goods and Bank stocks who took huge beating on the bourses. Mid cap and Small cap stocks also remained unfavorable as lost more than 4%. The market breadth was negative as 2263 stocks closed in red while 359 stocks closed in green and 40 stocks remained unchanged.

On the global front Lehman Brothers filed for bankruptcy protection in US today. Along with that AIG was a bigger concern for the markets as facing liquidity crunch and seeking $40 billion loan from Federal Reserve to raise capital. Further, Bank of America agreed to buy Merill Lynch at a premium $29 per share as compared to the last closing price of $17 per share. Crude oil for October delivery declined $2.28 to $98.90 a barrel on the New York Mercantile Exchange after Hurricane Ike inflicted minimal damage to oil installations on the Texas coast.

The BSE Sensex closed lower by 469.54 points at 13,531.27 and NSE Nifty ended down by 215.55 points at 4,072.90. The BSE Mid Caps and Small Caps closed with losses of 248.55 points at 5,288.59 and by 331.07 points at 6,380.47. The BSE Sensex touched intraday high of 14,433.20 and intraday low of 13,933.87.

Losers from the BSE are Reliance Infra (9.72%), Satyam Comp (9.45%), Ranbaxy Lab (7.60%), DLF Ltd (7.54%), JP Associates (6.51%), ONGC Ltd (6.01%), TCS Ltd (5.74%), Reliance Com Ltd (5.68%), Tata Motors (5.16%) and Hindalco (5.12%).

The BSE Metal index lost 490.58 points to close at 10,390.84. Major losers are NMDC Ltd (9.03%), Welspan Gujarat Sr (8.93%), Ispat Indus (7.64%), Gujarat NRE C (6.79%), Jindal Steel (5.29%) and Hindalco (5.12%).

The BSE Capital Goods index ended down by 469.66 points at 11,836.58. Major losers are Walchand In (10.23%), Praj Indus (9.17%), Reliance Industrial Infra (8.11%), Siemens Ltd (6.53%), Havells India (6.30%) and Reliance Lakshmi Ma W (5.90%).

The BSE Reality index plunged 359.20 points to close at 4,344.52. As Anant Raj (12.76%), Ansal Infra (12.15%), Orbit Co (11.69%), Housing Dev (11.62%), Penland Ltd (10.24%) and Sobha Dev (8.10%) closed in negative territory.

The BSE Oil & Gas index closed lower by 301.98 points at 8,814.46 as Essar Oil Ltd (9.01%), Reliance Natural Resources (7.85%), Cairn India (7.44%), ONGC Ltd (2.50%), Gail India (6.01%) and Reliance Pet (5.06%) ended in negative territory.

The BSE Bank index closed lower by 237.20 points at 6,792.02. Losers are IDBI Bank Ltd (7.55%), Union Bank (6.53%), Karnataka Bank (5.85%), Indus Ind Bank (5.83%), Axis Bank (5.12%) and IOC (4.96%).

The BSE IT index dropped by 209.91 points to close at 3,596.83. As Aptech Ltd (13.15%), Satyam Comp (9.45%), Patni Comp (8.90%), Rolta India (8.47%), Oracle Fin (8.29%) and HCL Tech (6.18%) closed in negative territory.