Post Session Commentary - Oct 24 2008

The Indian market lost more than 10% to its lowest since November 2005 on growing worries about a sharp global economic slowdown. Investors’ sentiment was also dented after the central bank kept interest rates unchanged at its policy review and lowered its economic growth forecast. Market witnessed one of the worst trading sessions as BSE Sensex ended around 8,700 level and NSE Nifty below 2,600 mark. Domestic market opened sharply lower on huge sell-off in Asian markets. Asian stocks were under pressure for third straight day as the global economic slowdown slashed earnings prospects for many companies. Further market continued to see free fall and moved down side on sustained selling pressure. Weak European markets also fueled to the depressing sentiment. Bears did not leave any option for the market to come back and finally got distorted badly. From the sectoral front, all indices ended in red and among those, Reality index was worst performer as it ended with a deep cut of more than 24%. Besides, Oil & Gas, Bank, Metal, Capital Goods, Pharma and Auto stocks also took huge beating on the bourses.

Among the Sensex pack all 30 stocks ended in red terrain. The market breadth was extremely negative as 2322 stocks closed in red while 260 stocks closed in green and 46 stocks remained unchanged.

The BSE Sensex closed lower by 1,070.63 points at 8,701.07 and NSE Nifty ended down by 359.10 points at 2,584.00. The BSE Mid Caps and Small Caps closed with losses of 283.04 points 3,095.68 and by 303.87 points at 3,661.83. The BSE Sensex touched intraday high of 9,570.71 and intraday low of 8,566.82.

Losers from the BSE Sensex pack are DLF Ltd (23.96%), Ranbaxy Lab (17.83%), Hindalco (17.82%), Tata Motors (16.54%), Reliance (16.44 %), M&M Ltd (16.04%), Reliance Communication Ltd (15.93%), ICICI Bank (15.20%), ONGC Ltd (15.01%), Sterlite Industries (14.94%), Reliance Infra (14.88%) and Tata Steel (14.46%).

The RBI kept its key lending rate stable at 8% and cash reserve ration unchanged at 6.5%. Along with this the RBI lowered its 2008/09 growth forecast to 7.5% from a previous forecast of around 8.0%.

The BSE Oil & Gas index plunged 906.64 points to close at 5,151.64. Major losers are Essar Oil Ltd (19.32%), Cairn India (18.52%), Reliance (16.44 %), Aban Offshore (15.84%), ONGC Ltd (15.01%) and Reliance Reliance Petroleum (14.09%).

The Bank index lost 671.27 points to close at 4,649.87 as Kotak Bank (20.72%), Oriental Bank (16.72%), ICICI Bank (15.20%), SBI (4.84%), Axis Bank (14.13%) and Yes Bank (13.52%) in negative territory.

The BSE Capital Goods index plunged 633.97 points to close at 6,610.89 as Suzlon Energy (39.23%), Jyoti struct (19.90%), ABB Ltd (16.76%), Havell’s India (14.11%) and Walchand Industries (13.55%) ended in negative territory.

The BSE Metal index went down by 603.04 points to close at 4,393.88. Major losers are Nalco (22.59%), Hindalco (17.82%), Welspan Guajrat Sr (16.02%), Sterlite Industries (14.94%), Tata Steel (14.46%) and JSW Steel (10.95%).

The BSE Auto index ended down by 288.83 points at 2,480.96. Losers are Tata Motors (16.54%), M&M Ltd (16.04%), Bharat Forge (14.51%), Amtek Auto (12.42%), Bajaj Auto (12.26%) and Ashok Leyland (11.53%).

The BSE Pharma index closed lower by 252.97 points at 2,811.47. Losers are Glenmark Pharma (19.99%), Ranbaxy Lab (17.83%), Matrix Lab (15.51%), Orchid Chem (13.07%), Cipla Ltd (11.68%) and Opto Circuit (9.89%).