Post Session Commentary - May 29 2008

Indian market made a sharp downward movement towards the final trading session to close in red after giving up its initial gains on the back of heavy selling through last trading hours and fuel price worries. The domestic market opened higher tracking the favoring cues from the US Markets, but was not able to sustain the momentum and turned volatile due to fear of rising fuel prices and the expiry of the derivatives contracts. Further investors negative attitude forced the market to close in negative zone. The government would decide on raising fuel price in the next two to three days. The banking, oil & gas and auto stocks were worst sufferer of the investors’ negative attitude while the capital goods stocks were in limelight as most of the buying was seen from this basket. The market breadth was negative as 1115 stocks closed in green while 1537stocks closed in red and 109 stocks remained unchanged.

The BSE Sensex closed down by 209.11 points to close at 16,316.26 and NSE Nifty fell by 83.05 points to close at 4,835.30. The BSE Mid Cap and Small Cap closed lower by 11.77 points and 56.02 points at 6,741.76 and 8,181.07 respectively. BSE Sensex touched intraday high of 16,666.03 and intraday low of 16,196.02.

Losers from the BSE are Tata Motors (8.22%), Ambuja Cement (6.05%), Mahindra & Mahindra (5.52%), SBI (3.62%), Hindalco (3.54%), HDFC (3.24%), NTPC (3.03%) and ICICI Bank Ltd (2.79%).

The Banking index closed down by 214.69 points at 7,718.81. Losers are Allahabad Bank (4.42%), Bank of India (4.32%), Canara Bank (4.18%), Kotak Bank (3.63%), SBI (3.62%), CBOP (3.45%), and Andhra Bank (3.40%).

The Oil & Gas index decreased by 206.49 points to close at 10,571.42. Losers are REl Pet (2.43%), ONG Corp Ltd (2.38%), Reliance Nat Res (2.28%), Reliance (2.19%), Gail India (1.96%) and Essar Oil Ltd.

Auto index closed lower by 151.22 points at 4,410.81, losers are Tata Motors (8.22%), Mahindra & Mahindra (5.52%), Herohonda Motors (2.77%), TVS Motors Ltd (2.59%), Escorts Ltd (2.35%), Ashok Leyland (2.30%), and Maruti Suzuki (1.34%).

The reality index ended down by 113.47 points at 7,116.95. Major losers are Purvankara (6.06%), Housing Dev (3.29%), Ansal Infra (3.07%), Unitech Ltd (3.04%), Penland Ltd (2.68%), DLFLtd (2.39%) and Parsvnath (2.39%).

The Capital Goods index was up by 255.12 points to close at 12,827.03. Major gainers are L&T Ltd (6.64%), Bharat Elec (3.57%), Elecon Eng C (3.52%), Alstom Proj Ltd (2.92%), Jyoti Struct (1.65%), BEML Ltd (1.35%) and Areva (0.65%).