Post Session Commentary - June 20 2008

Indian market faced the blood bath today during the trading session and closed in deep red with BSE Sensex reached to its lowest in 2008 due to the high inflation figure that increased more than expectation and reached to 13 year high to stood at 11.05% for the week ended 7th June 2008 as against 8.75% in earlier week. Interest rate sensitive sectors suffered most on the expectations that RBI may announce some measures to curb inflation, like a hike in interest rates. The domestic market opened on positive zone on the back of favorable global cues but it was not able to sustain the momentum and soon slipped to extremely negative territory since initial bell. Stocks were hammered further to close in deep red. Political uncertainty in country also added to the negative sentiment as CPM threatened the UPA to withdraw its support if government moves forward with the deal. Government is planning go ahead to Nuke deal without the Left consent. All indices closed in negative and metal and oil & gas stocks were most unfavorable as most of selling was seen in these baskets. The market breadth was extremely negative as 2,247 stocks closed in red and 450 stocks closed in green.

The BSE Sensex closed lower by 516.70 points at 14,571.29 and NSE Nifty ended down by 156.70 points at 4,347.55. The BSE Mid Caps and Small Cap closed negative with fall of 197.74 points and 262.76 points at 6,032.43 and 7,397.66 respectively. The BSE Sensex touched intraday high 15,202.01 and intraday low of 14,519.27.

Losers from the BSE are Rel Com Ltd (6.65%), Reliance (6.61%), HIndalco (6.37%), JP Assoc (6.03%), Rel Infra (4.92%), Bharti Airtel (4.76%), Ambuja Cement (4.71%), Tata Steel (4.66%) and DLF Ltd (4.57%).

The Metal index closed lower by 603.80 points at 14,528.06. Losers are NALCO (6.75%), Hindalco (6.37%), Ispat Indus (5.61%), Tata Steel (4.66%), Sesa Goa Ltd (4.59%), Jindal Steel (4.52%), and Gujarat Nre C (3.52%).

The Oil & Gas index closed down by 498.96 points at 9,419.86. As Reliance Nat Res (7.27%), Essar Oil Ltd (6.62%), Reliance (6.61%), Cairn India (5.69%), Reliance Pet (5.19%) and Aban Offshore (4.57%) closed in negative territory.

The Capital Goods index dropped by 267.90 points to close at 11,399.79. Major losers are Praj Indus (6.30%), Kir Oil Eng (5.74%), Seimens Ltd (5.21%), Kirloskar Br (4.83%), Crompton Geaves Ltd (4.72%) and Alstom Proje. (4.68%).

The Reality Index closed lower by 250.79 points at 5,383.81. Losers are Housing Devel (9.17%) along with Akruti City (7.14%), Sobha Dev (6.66%), Parsvnath (6.28%), Penl;and Ltd (6.17%) and Ansal Infras (5.80%).

The Banking index closed down by 208.40 points at 6,804.78. Losers are BOI (7.36%), Bank of baroda (6.24%), Indian Overseas Bank (5.78%), OBC (5.50%), SBI (4.11%), Allahabad Bank (4.08%) and Union Bank (4.06%).

The Pharma index dropped by 101.52 points to close at 4,325.40 as Nicholas Pira (7.93%), Fortis Health (6.73%), Sunpha Adv (6.26%), Aurbindo Pharma (5.73%) and Matrix (5.34%) closed in negative territory.