Post Session Commentary - Oct 10 2008

Domestic market battered for yet another day on a negative global cues and IIP data. BSE Sensex lost nearly 1000 points during the trading session and ended below 10,600 level along with NSE Nifty below 3,400 mark. Although in a move to aid the liquidity in the market, RBI has cut CRR by 100 bps to bring it down to 7.5%. However, this has not much helped the market to sustain by the heavy losses. Markets opened on extremely negative note on awfully weak cues from markets across the world on concern for global recession. Asian markets had crashed and Nikkie lost more than 11%, which is its biggest fall since 1987 crash. Further markets continued its dive though struggled to recover a bit in afternoon. Markets extended its losses to close the day in deep red as heavyweights took huge beating on the bourses. European markets also fueled to the negative sentiments as scene in Europe is also terrible. On the sectoral front, all indices ended in red. Reality index faced the hard hit as witnessed deep cut of more than 12%. Apart from that, Capital Goods, Metal, Oil & Gas, Bank, Consumer Durables and Power stocks were major sufferers of negative sentiments. Midcap and Smallcap stocks had also crashed very badly and ended with loss of more than 8% and 7% respectively. Among the Sensex pack 28 stocks ended in negative terrain while 28 in green. The market breadth was negative as 2189 stocks closed in red while 382 stocks closed in green and 48 stocks remained unchanged.

The wholesale price index (WPI) for the week ended 27th Sep 2008, rose to 11.80% eased from a rise of 11.99% in the previous week. The WPI for primary articles is down 0.2% (week-on-week).

The Index of Industrial Production (IIP) numbers for August, stood at 1.3% as compared to 10.9% year-on-year (YoY). Along with that manufacturing growth for August stands at 1.1% versus 10.7% (YoY), and the consumer durables growth for the period has come in at 5.1% against 6.2%.

IT bellwether Infosys Technologies released its quarterly results and has lowered its FY09 guidance. The company’s standalone net profit for the quarter ended September 2008 was up 10% at Rs.1,390 crore against Rs.1,262 crore in the previous quarter.

The BSE Sensex closed lower by 800.51 points at 10,527.85 and NSE Nifty ended down by 233.7 points at 3,279.95. The BSE Mid Caps and Small Caps closed with losses of 334.48 points at 3676 and by 343.74 points at 4,355.45. The BSE Sensex touched intraday high of 10,904.13 and intraday low of 10,239.76.

Losers from the BSE pack are Reliance comm (21.02%), ICICI Bank (19.71%), Reliance Infra (19.26%), JP asso (16.27%), Tata Steel (14.99%), Hindalco Ind (11.18%), HDFC (8.98%), DLF Ltd (8.79%), BHEL (8.28%), L&T Ltd (8.02%) and Reliance Ind (7.43%).

Only two gainers from BSE Sensex pack are Ranbaxy Lab (4.71%) and SBI (2.27%).

The BSE Capital Goods index closed lower by 810.33 points at 7983.04. Losers are Elecon ENG C (19.68%), Jyoti Structure (19.04%), Punj Lloyd (18.37%), Suzlon Energy (17.60%), Usha Martin (16.80%) and Areva (14.81%).

The BSE Metal index plunged 666.89 points to close at 6,542.57. Major losers are Welspan Guajrat SR (21.80%), Gujarat NRE C (19.90%), Tata Steel (14.99%), Hindalco (11.18%), Jindal Saw (9.72%) and Ispat Indus (9.33%).


The BSE Oil & Gas index tumbled 524.15 points to close at 7,272.31 as Essar Oil Ltd (12.92%), Reliance Natural Resources (11.79%), Cairn Indi (11.38%), HPCL (8.14%), Reliance (7.43%) and Gail India (5.68%) ended in negative territory.

The BSE Bank index dropped by 452.77 points to close at 6,172.00. Major losers are Yes Bank (20.70%), ICICI Bank (19.71%), Axis Bank (14.19%), Indus Ind Bank (11.17%), Karnataka Bank (6.62%) and PNB (5.90%).

The BSE Reality index ended down by 321.27 points at 2,523.27. Losers are Indiabull Real (19.45%), Orbit Co (19.45%), Housing Dev (17.99%), Mahindra Life (17.49%), Penland Ltd (16.05%) and Anant Raj (15.07%).

The Consumer Durables index lost 240.65 points to close at 2,569.60. As Videocon Ind (13.50%), Blue Star L (10.91%), Gitanjali GE (10.27%), Rajesh Export (7.59%) and Titan Ind (4.61%) closed in negative territory.