Post Session Commentary - Oct 17 2008

The domestic market on Friday ended in deep red after paring all its initial gains on aggressive selling pressure across board led by unabated fears of a sharp global economic slowdown. It was terrible day for the market as BSE Sensex touched the lowest level since July 2006 and finally broken the psychological level of 10,000 along with NSE Nifty ended below 3,100 mark. The market started the day on pleasant note tracking global cues as US markets rebounded sharply in yesterday''s trade on the weekly jobless claims that were lower than anticipated. Filings for jobless benefits declined by 16,000 to 461,000, which was below the consensus 470,000 claims. Market was not able to sustain the momentum and turned volatile following mixed global cues along with worries about a gloomy outlook for the world economy and sluggish corporate earnings. Till afternoon market swung between positive and negative terrain as investors searched for direction. Further market continued to slip sharply to conclude the day with huge loses as trading in US index futures suggested the Dow would fall at the opening bell. Market was extremely under pressure despite positive opening of European markets. On the sectoral front, all indices ended in red and among those Reality stocks underperformed the benchmark index as ended with deep cut of more than 10%. Apart from that most of the selling pressure was led by Capital Goods, Oil & Gas, Bank, Power and IT stocks.

Among the Sensex pack all 30 stocks ended in red. The market breadth was negative as 1877 stocks closed in red while 719 stocks closed in green and 56 stocks remained unchanged on BSE.

The BSE Sensex closed lower by 606.14 points at 9,975.35 and NSE Nifty ended down by 194.95 points at 3,074.35. The BSE Mid Caps and Small Caps closed with loss of 112.29 points at 3,544.84 and by 118.50 points at 4,167.86. The BSE Sensex touched intraday high of 10,786.93 and intraday low of 9,911.32.

Losers from BSE Sensex pack are Reliance Infra (11.96%), JP Associates (10.70%), DLF Ltd (10.34%), NTPC Ltd (9.68%), Reliance Communication Ltd (9.64%), BHEL (9.00%), Sterlite Industries (8.82%), SBI (8.42%), TCS Ltd (8.29%), Tata Steel (7.99%) and Hincalco (7.96%).

The BSE Capital Goods index closed lower by 423.44 points at 7,241.36. Losers are Jyoti Structure (11.76%), Punj Lloyd (9.80%), Siemens Ltd (9.49%), BHEL (9.00%), Walchand Industries (8.16%) and Suzlon Energy (7.80%).

The BSE Metal index tumbled 378.16 points to close at 5,801.71. Major losers are Guajrat NRE C (21.52%), Sterlite Industries (8.82%), Welspan Gujarat SR (8.36%), Tata Steel (7.99%), Hindalco (7.96%) and Nalco (7.07%).

The BSE Oil & Gas index plunged 348.21 points to close at 6,479.56 as Essar Oil Ltd (10.36%), Aban Offshore (8.80%), Reliance Petroleum (8.12%), Reliance (6.58%) and Reliance Natural Resources (5.05%) ended in negative territory.

The BSE Bank index ended down by 320.07 points at 5,546.69. Losers are Kotak Bank (8.75%), SBI (8.42%), Indus Ind Bank (5.90%), HDFC Bank (5.82%), ICICI Bank (5.61%) and Union Bank (5.20%).

The BSE Reality index lost 288.37 points to close at 2,524.89. Major losers are Orbit Co (14.87%), Indiabull Real (14.16%), Unitech Ltd (12.44%), Penland Ltd (12.10%), Ansal Infrasturct (11.41%) and Parsvnath (11.30%).

The Power index went down by 150.74 points to close at 1,712.37 as Reliance Infra (11.96%), Lanco Infra (10.33%), NTPC Ltd (9.68%), Siemens Ltd (9.49%), BHEL (9.00%) and Suzlon Energy (7.80%) in negative territory.