Post Session Commentary - June 23 2008

Indian market closed in red by extending its Friday’s losses due to sustained sales that was witnessed in key indices mainly metal and capital goods stocks, which ended with a cut of more than 4% and 5% respectively. The domestic market opened sharply lower on the back of weak global cues and observed heavy selling pressure since the initial bell. It remained under black clouds till the end of trading. Concerns of further tightening of monetary policy triggered the negative sentiments. The rising inflation concerns along with the chances of another hike in interest rate by RBI and political uncertainty also put some more pressures to the market. Heavy selling in capital goods, metal, power, realty, and oil stocks added pressure on the markets while IT stocks were on limelight as maintained to close on positive zone. The market breadth was extremely negative as 2,222 stocks closed in red and 425 stocks closed in green while 50 stocks remained unchanged.

The BSE Sensex closed lower by 277.97 points at 14,293.82 and NSE Nifty ended down by 81.15 points at 4,266.40. The BSE Mid Caps and Small Cap closed negative with fall of 217.20 points and 261.36 points 5,815.23 and 7,136.30 respectively. The BSE Mid Cap and BSE Small Cap ended with a deep cut of more than 3% each. The BSE Sensex touched intraday high 14,510.55 and intraday low of 14,163.45.

Lossers from the BSE are JP Associates (7.95%), Hindalco (7.83%), L&T Ltd (6.53%), Maruti Suzuki (5.43%), Ranbaxy Lab (5.38%), Reliance Infra (4.76%), M&M Ltd (4.55%), Tata Steel (4.12%) and Reliance (3.55%).

The Metal index closed lower by 671.73 points at 13,856.33. Lossers are Hindalco (7.83%), Hindustan Zinc (6.19%), Welspan Guj Sr (5.94%), Nalco (5.41%), Jindal Steel Ltd (5.36%), Steel Authority (4.57%), and Sterlite In (4.15%).

The Capital Goods index dropped by 602.78 points to close at 10,797.01. Major lossers are Alstom Proje. (8.65%), Punj Lloyd (6.86%), L&T Ltd (6.53%), Suzlon Energy (6.21%), Lakshmi Ma W (6.03%) and Elecon Eng C. (5.93%).

The Oil & Gas index closed down by 247.79 points at 9,172.10. As Essar Oil Ltd (7.51%), Aban Offshore (6.79%), Reliance Nat Res (4.22%), Reliance (3.55%), IOC (3.19%) and Reliance Pet (1.73%) closed in negative territory.

The Reality Index closed lower by 195.89 points at 5,187.92. Lossers are Akruti City (9.04%) along with Anant Raj (9.00%), Penl; Ltd (7.27%), Unitech Ltd (7.12%), Housing Dev (7.00%) and Ansal Infras (6.00%).

The Banking index closed down by 174.20 points at 6,630.58. Lossers are BOI (9.12%), Indian Overseas Bank (6.81%), Andhra Bank (6.65%), Allahabad Bank (6.61%), Karnataka Bank (6.14%), Federal Bank (6.02%) and Bank of Baroda (5.77%).

The IT index went up by 28.80 points to close at 4,233.42 as HCL Tech (1.63%), Wipro Ltd (1.14%), Patni Computer (1.12%), Infosys Tech (1.09%) and Satyam Computer(1.04%) closed in positive territory.