Post Session Commentary - July 1 2008

The market faced a blood bath during closing hours and ended in deep red as heavy selling witnessed across the board on growing worries about high oil prices as International Energy Agency has cautioned today about tight oil supply in the medium term along with rising inflation and political uncertainty. The BSE Sensex slipped below 13,000 mark for the first time since April 2007 and NSE Nifty below 3,900. The BSE Midcap and Smallcap indices closed with deep cut of more than 4%. Market opened on flat note on the back of mixed global cues but was not able to sustain the momentum and drifted downward. Further it was showing volatility and continued to trade weak to close in deep red. Oil Prices rose over $143 per barrel on Monday. From the sectoral front, all indices closed in red with reality stocks ended with a huge cut of 7% and bank and metal indices with more than 5%. Metal, Bank, Reality, Oil & Gas and Capital Goods stocks were worst performers as witnessed most of the selling. The market breadth was extremely weak as 2272 stocks closed in red while 406 stocks closed in green.

The BSE Sensex closed lower by 499.92 points at 12,961.68 and NSE Nifty ended down by 143.80 points at 3,896.85. The BSE Mid Caps and Small Cap closed negative with fall of 244.62 points and 316.85 points 5,141.86 and 6,385.11 respectively. The BSE Sensex touched intraday high 13,613.82 and intraday low of 12,904.09.

Lossers from the BSE are Reliance Infra (10.54%), Reliance Com Ltd (10.49%), M&M Ltd (9.27%), Maruti Suzuki (8.05%), SBI (7.81%), DLF Ltd (7.02%), HDFC (6.47), ICICI Bank Ltd (6.46%) and JP Associates (6.01%).

The Metal index closed down by 713.11 points at 12,494.19. As SH Precoated (16.35%), JSW SL (13.92%), Ispat Industries (11.32%), Maharashtra Seamless (9.67%), Sesa Goa Ltd (9.48%) and Hindustan Zinc (7.42%) closed in negative territory.

The Capital Goods index dropped by 336.38 points to close at 9,744.31. Major lossers are Suzlon Energy (9.22%), BEML Ltd (6.98%), Punj Lloyd (6.87%), Bharat Elect (5.42), Havells India (5.22%) and ABB Ltd (5.15%).

The Banking index closed down by 332.39 points at 5,583.59. Lossers are Bank of India (8.77%), SBI (7.81%), Indian Overseas Bank (7.58%), PNB (6.91%), Karnataka Bank (6.51%), ICICI Bank Ltd (6.46%) and Andhra Bank (5.10%).

The Reality Index closed lower by 327.54 points at 4,215.93. Lossers are Housing Dev (12.70%) along with Pheonix Mill (12.40%), Ansal Infra (10.70%), Omaxe Ltd (8.75%), Anant Raj (8.69%) and DLF Ltd (7.02%).

The Oil & Gas index closed down by 275.44 points at 8,733.72. As Aban Offshore (9.71%), Reliance Natural Resources (9.13%), Cairn India (5.95%), BPCL (5.81%), IOC (5.12%)and Essar Oil Ltd (4.69%) closed in negative territory.

The Auto index closed lower by 176.15 points at 3,409.47. Lossers are M&M Ltd (9.27%), Maruti Suzuki (8.05%), Escorts Ltd (7.93%), TVS Motor Ltd (7.37%) and Appollo Tyre (7.22%).