Post Session Commentary - Sep 11 2008

Domestic markets closed the day with heavy losses as bears dominated the bulls since the initial bell. Stocks remained under pressure for the third straight day as heavyweights had dragged the benchmark indices lower ahead of IIP data for the month of July 2008, along inflation number for the week ended 30th August 2008. Markets opened on downbeat note and plunged further tracking weak cues from Asian markets. Further markets continued to trade sharply lower and completely smashed during last trade to close in extremely negative zone. NSE Nifty ended below 4,300 mark and BSE Sensex around 14,300 level. Mid cap and Small cap stocks also remained out of favors as lost more than 1%. From the sectoral front, all indices ended in red terrain and Oil & Gas stocks closed with loss of more than 3%. Apart form that Capital Goods, Metal, Reality, Bank and Power stocks were actual perpetrators of today’s fall. The market breadth was negative as 1786 stocks closed in red while 853 stocks closed in green and 75 stocks remained unchanged.

The BSE Sensex closed lower by 338.32 points at 14,321.29 and NSE Nifty ended down by 109.95 points at 4,290.30. The BSE Mid Caps and Small Caps closed with cut of 61.73 points at 5,647.20 and by 84.49 points at 6,818.93. The BSE Sensex touched intraday high of 14,557.33 and intraday low of 14,265.38.

The core sector data released two days before the IIP data for the month of July with indication of better industrial growth than previous months. The index of six core-industries grew at its fastest speed in July of current fiscal at 4.3%, backed by higher coal production and electricity generation. However, the index number for infrastructure output was much below than the 7.2% growth rate during the same month last year.

Losers from the BSE are Bharti Airtel (4.40%), Reliance Infra (4.15%), Reliance (4.13%), ONGC Ltd (3.82%), Tata Power (3.53%), DLF Ltd (3.28%), JP Associates (3.25%), M&M Ltd (3.00%), BHEL (2.71%) and NTPC Ltd (2.61%).

The BSE Oil & Gas index closed lower by 327.64 points at 9,339.74 as Reliance (4.13%), ONGC Ltd (3.82%), IOC Ltd (2.77%), Cairn India (2.05%), Reliance Natural Resources (2.04%) and Reliance Pet (1.95%) ended in negative territory.

The BSE Capital Goods index ended down by 292.80 points at 11,941.00. Major losers are Usha Martin (10.03%), Suzlon Energy (6.64%), Thermax Ltd (3.33%), Elecon Eng C (3.13%), Punj Lloyd (3.06%) and BHEL (2.71%).

The BSE Metal index lost 162.21 points to close at 11,991.79. Major losers are Jai Corp Ltd (4.35%), Sesa Goa Ltd (3.73%), Steel Authority (3.18%), Hindalco (1.97%), Welspan Gujarat Sr (1.96%) and Ispat Indus (1.68%).

The BSE Reality index plunged 124.16 points to close at 4,875.83. As Ansal Infra (6.35%), Indiabull Real (4.63%), Anant Raj In (4.09%), Akruti City (4.38%), Parsvnath (2.76%) and Omaxe Ltd (2.48%) closed in negative territory.

The BSE Bank index closed lower by 114.69 points at 7,210.66. Losers are Yes Bank (5.11%), ICICI Bank Ltd (2.01%), HDFC Bank Ltd (1.90%), Federal bank (1.76%), SBI (1.70%) and Union Bank (1.62%).

The BSE Power index dropped by 78.82 points to close at 2,576.42. As Suzlon Energy (6.64%), Reliance Infra (4.15%), Torrent Power (3.64%), Tata Power (3.53%) and Neyvelli LIG (3.24%) closed in negative territory.