Post Session Commentary - July 15 2008

The domestic market ended the day in deep red after going through a blood bath, on the back of strong selling activity in key stocks. The Indian market opened with a heavy gap down, tracking weak cues from the global market. The US financial sector continued to tumble due to uncertainty reigned in the wake of the failure of California-based bank IndyMac. Regulators are worried that the IndyMac did not have enough cash to get by after panicked investors withdrew more than $1.3bn in 11 days and seized its assets. Further, the domestic political uncertainty and the inflation worries also added to the woes that led the market to trade completely on the back foot without showing any sign of recovery and forced it to land in extremely negative territory. The BSE Sensex closed below 12,700 level and NSE Nifty below 3,900. Key indices had witnessed a deeper crack during final trading hours. All the 30-stocks of the Sensex ended in red and also all the BSE Sectoral indices concluded the day with heavy losses. From the sectoral front, Bankex index were completely hammered to close with deep cut of more than 7% as most selling was reported from this basket. Followed this was Capital Goods, Metal and Reality stocks which also closed with cut of more than 5%. The market breadth was negative as 535 stocks closed in green while 2105 stocks closed in red and 57 stocks remained unchanged.

The BSE Sensex closed lower by 654.32 points at 12,676.19 and NSE Nifty ended down by 178.60 points at 3,861.10. The BSE Mid Caps and Small Cap closed with loss of 167.29 points and 209.16 points 5,163.51 and 6,630.90 respectively. The BSE Sensex touched intraday high of 13,067.08 and intraday low of 12,605.00.

Lossers from the BSE are Ranbaxy Lab (14.01%), HDFC Bank Ltd (11.26%), ICICI Bank Ltd (8.72%), Hindalco (8.30%), Hindalco (7.22%), HDFC (6.86%), BHEL (6.66%), Wipro Ltd (6.54%), SBI (6.35%) and DLF Ltd (6.33%).

The Metal index closed down by 671.55 points at 12,225.64. Lossers are JSW SL (8.62%), Hindalco (8.30%), Sh Precoated (7.32%), Hindustan Zinc (6.19%), Sterrlite In (5.73%), Welspan Gujarat Sr (5.65%) and Tata Steel (5.42%).

The Capital Goods Index closed lower by 564.26 points at 10,175.75. Lossers are Alstom Proje (7.26%) along with BHEL (6.66%), Siemens Ltd (6.25), Cropmton Greaves (6.19%), BEML Ltd (6.07%), Punj Lloyd (5.83%) and Suzlon Energy (5.80%).

The Banking index closed lower by 462.52 points at 5,508.00. As HDFC Bank Ltd (11.26%), Yes Bank (9.10%), ICICI Bank Ltd (8.72%), Union Bank (7.65%), SBI (6.35%), and Axis Bank (6.17%) closed in negative territory.

The Oil & Gas index ended down by 307.37 points at 8,677.70. Lossers are Reliance Natural Resources (5.21%), HPCL (5.04%), Essar Oil Ltd (4.34%), BPCL (4.09%), ONGC (3.63%) and Reliance (3.42%).

The Reality index ended down by 259.08 points at 4,503.45. As Purvankara (7.85%), Penland Ltd (6.70%), DLF Ltd (6.33%), Unitech Ltd (6.17%), Omaxe Ltd (5.47%), and Sobha Dev (5.37%) closed in negative territory.

The Pharma index lost 170.67 points to close at 3,909.25. Major lossers are Ranbaxy Lab (14.01%), Matrix Labs (5.16%), Glenmark Pharma (4.98%), Devi’s Lab (4.50), Biocon Ltd (4.18%) and Fortis healt (3.92%).