Post Market Commentary - May 26 2008

Indian market ended on negative note due to the heavy selling pressure in metal, capital goods and banking stocks during the trading session led by weak cues from the global markets. Market tumbled since its initial bell tracking the unfavouring cues from the global markets like the surging crude oil price along with the sluggishness of US economic growth and increasing inflationary pressures that led the investors to take cautious approach to book their positions and pushed the market to bearish zone. Also the expiry of derivatives contract on coming Thursday also adds to the sentiments. From the sectoral front, the metal, capital goods, banking and reality stocks were not in favour due to lack of support. However, the IT stocks gave a bit of support to the market as some buying was seen from these baskets. The market breadth was negative as 667 stocks closed in green while 2043stocks closed in red and 48 stocks remained unchanged.

The BSE Sensex closed lower by 301.14 points at 16,348.50 and NSE Nifty fell by 71.5 points to close at 4,875.05. The BSE Mid Cap and Small Cap closed down by 176.34 points and 199.23 points to 6,760.77 and 8,318.20 respectively.

Losers from the BSE are J P Associates (5.58%), Ambuja Cement (5.38%), BHEL (5.21%), Reliance Comm Ltd (5.08%), ICICI Bank Ltd (4.29%), HDFC (3.92%), Maruti Suzuki (3.83%), ITC Ltd (3.70%), Grasim Industries Ltd (3.51%) and Hindalco (3.39%).

Metal index closed lower by 452.59 points at 16,343.21, losers are Sh Precoated (6.02%), Jindal Saw (5.20%), Welspan Gujarat SR (4.92%), Ispat Indus (3.82%), Jindal Steel (3.75%), Steel Authority (3.44%) and Sterlite In (3.44%).

The Capital Goods index was down by 358.74 points to close at 12,833.68. Major losers are Praj Ind Ltd (6.61%), BHEL (5.21%), Thermax Ltd (5.19%), Bharat Electr (5.18%), Alstom Proje (4.32%) and Kirloskar Br (3.50%).

The Banking index closed lower by 292.91 points at 7,939.25. Losers are Federal bank (6.09%), Kotak Bank (5.99%), Indian Overseas Bank (4.75%), Axis Bank (4.61%), ICICI Banl Ltd (4.29%), and Allahabad Bank (4.03%).

The Reality index closed down by 170.05 points at 7,340.09. Losers are Housing Development (4.76%), Ansal Infra (4.29%), Penland Ltd (4.24%), Akruti City (3.95%), and Sobha Dev (3.89%).

The Oil & Gas index decreased by 154.61 points at 10,820.65. Losers are Aban Offshore (5.99%), Essar Oil Ltd (3.83%), BPCL (2.88%), Reliance (2.12%) and Reliance Nat Res (1.79%).