Post Session Commentary - Oct 15 2008

The markets extended its fall to more than 5% on Wednesday to close in deep red on growing worries about liquidity condition and a looming global recession. RBI’s extension for banks'' special short-term lending (repo) facility to mutual funds was unable to lift the sentiments. European markets also weighed on the sentiments as extended its losses to trade weak. BSE Sensex ended below 10,900 level along with NSE Nifty below 3,300 mark. Domestic market opened sharply lower on negative global cues as fears of slowdown in the economy have gripped global markets. US government’s move to infuse another $250 billion in the system failed to avert the slide on the bourses. Worries about the earning also crept in after government''s plan to buy stakes in the nation''s largest financial institutions that are crashed. Further market continued its downward journey and benchmark indices crushed badly. Finally, extremely negative pressure forced market to close with huge losses. On the sectoral front, all sectoral indices ended down and Capital Goods and Consumer Durable stocks underperformed the benchmark index as closed with cut of more than 8% each. Apart from that heavy selling was witnessed in the Metal, Oil & Gas, Bank, IT and Reality stocks. Midcap and Smallcap stocks also followed the same trend and ended with deep cut of more than 4% each.

Among the Sensex pack all 30 stocks ended in red. The market breadth was negative as 2117 stocks closed in red while 499 stocks closed in green and 39 stocks remained unchanged on BSE.

The BSE Sensex closed lower by 674.28 points at 10,809.12 and NSE Nifty ended down by 180.25 points at 3,338.40. The BSE Mid Caps and Small Caps closed with loss of 171.55 points at 3,720.48 and by 222.44 points at 4,393.45. The BSE Sensex touched intraday high of 11,257.15 and intraday low of 10,760.33.

Losers from BSE Sensex pack are JP Associates (14.47%), Reliance Communication Ltd (12.24%), Reliance Infra (12.11%), L&T Ltd (11.01%), Tata Steel (10.35%), Sterlite Industries (10.11%), TCS Ltd (8.46%), ICICI Bank (7.36%), HDFC (6.90%), Hindalco (6.70%) and BHEL (6.28%).

The BSE Capital Goods index closed lower by 788.19 points at 8,088.01. Losers are Areva (14.37%), Punj Lloyd (13.30%), Crompton Greaves (12.65%), Thermax Ltd (12.12%), L&T Ltd (11.01%) and Usha Martin (9.77%).

The BSE Metal index tumbled 535.86 points to close at 6,315.85. Major losers are Welspan Guajrat Sr (13.34%), JSW Steel (11.12%), Jindal Steel (10.56%), Tata Steel (10.35%), Sterlite Industries (10.11%) and Ispat Industries (6.80%).

The BSE Oil & Gas index went down by 392.53 points at 7,230.87 as Essar Oil Ltd (16.23%), Aban Offshore (13.23%), Cairn India (7.10%), Reliance (6.20%) and Reliance Natural Resources (5.09%) ended in negative territory.

The BSE Consumer Durables index ended down by 204.91 points at 2,125.85. Losers are Titan Ind (14.05%), Videocon Ind (9.14%), Gitanjali Ge (5.40%), Rajesh Export (4.97%) and Blue Star L (0.62%).

The BSE Bank index dropped 196.47 points to close at 5,841.60. Major losers are ICICI Bank (7.36%), Yes Bank (6.18%), Karnataka (6.01%), DrIndus Ind Bank (5.99%), Indian Overseas Bank (5.53%) and IDBI Bank (4.67%).

The IT index lost 159.68 points to close at 2,780.19 as Aptech Ltd (16.50%), Moser Bayer (15.34%), Tech Mahindra (11.30%), TCS Ltd (8.46%), NIIT Ltd (8.28%) and Oracle Fin (8.20%) in negative territory.