Post Session Commentary - June 30 2008

The market was badly hit for the second consecutive day by posting heavy losses across the counters on account of heavy selling pressure backed by rise in crude oil price and political uncertainty. The BSE Sensex slipped below 13,500 mark and NSE Nifty below 4,100. The BSE Midcap and Smallcap indices closed with deep cut of more than 3%. New York crude oil reached an all time high to $142.99 a barrel on Friday. In the domestic political scenario, left parties has again threatened to pull out support from the UPA if government went to IAEA and there are signs that Congress may go ahead with the deal even if it leads to the collapse of the UPA coalition and early elections. Market opened on flat note on the back of mixed global cues and turned volatile during early trade. Further it slipped sharply and continued the losing trend through out of trading session to close in deep red. From the sectoral front, Oil & Gas, Capital Goods, Reality, Bank and Consumer Durables stocks were under pressure, while IT and Pharma stocks witnessed some buying interest. The market breadth was weak as 2107 stocks closed in red while 542 stocks closed in green.

The BSE Sensex closed lower by 340.62 points at 13,461.60 and NSE Nifty ended down by 96.10 points at 4,040.55. The BSE Mid Caps and Small Cap closed negative with fall of 172.23 points and 236.11 points 5,386.48 and 6,701.96 respectively. The BSE Sensex touched intraday high 13,872.06 and intraday low of 13,405.54.

Lossers from the BSE are Reliance Infra (11.47%), ACC Ltd (9.80%), Ambuja Cement (6.83%), DLF Ltd (6.60%), Reliance Com Ltd (6.58%), Grasim Industries (5.05%), M&M Ltd (5.00), HDFC (4.40%) and MAruti Suzuki (4.22%).

The Oil & Gas index closed down by 378.47 points at 9,009.16. As Essar Oil Ltd (11.11%), Reliance Natural Resources (10.71%), BPCL (6.30%), HPCL (5.52%), Reliance (4.06%) and Aban Offshore (3.89%) closed in negative territory.

The Capital Goods index dropped by 361.45 points to close at 10,080.69. Major lossers are Jyoti Struct (9.57%), Elecon Eng C (7.82%), BEML Ltd (7.02%), ABB Ltd (6.33), Suzlon Energy (6.29%) and Alstom Proje (5.71%).

The Reality Index closed higher by 331.78 points at 4,543.47. Lossers are Housing Dev (10.27%) along with Indiabull Real (8.56%), Penland Ltd (7.78%), Parsvnath (7.52%), Ansal Infra (7.18%) and Unitech Ltd (6.65%).

The Banking index closed down by 209.97 points at 5,915.98. Lossers are Yes Bank (8.38%), PNB (6.45%), Kotak Bank (5.61%), Indian Overseas Bank (5.51%), SBI (4.04%), Axis Bank (4.02%), Andhra Bank (3.51%) and ICICI Bank Ltd (3.51%).

The IT index closed higher by 15.07 points at 4,019.82. Gainers are NIIT Ltd (8.12%), Financ Tech (2.02%), Infosys Tech (1.59%), Tech Mahindra (0.79%) and I-Flex (0.76%).

The Pharma index closed up by 14.28 points at 4,164.33. As Matrix Lab (4.46%), Sun Pharma (4.42%), Dr Reddy’s Lab (2.66%), Glenmark Pharma (1.97%) and Cipla Ltd (0.29%) closed in positive territory.