Post Session Commentary - Oct 27 2008

The Indian market recovered smartly during final trading hours but still closed below the dotted line. Stocks trimmed most of their earlier losses after touching three years low on intense selling across board as investors booked profits in short positions ahead of F&O expiry. Market witnessed sharp dive and BSE Sensex breached 8,000 level during trading session but further recovered to back above 8,000 level. Domestic market opened sharply lower along with other Asian markets. Further market continued to extend its losses as fears of a global recession routed stocks all over the world along with slowing corporate earning. However, the quarterly results from the banking giant SBI did not provided much support to the market. Its shares came into pressure after the bank has posted marginal growth of 11.50% in its consolidated net profit. However, the ICICI Bank shares sees some recovery although it reported a 27.45% fall in its consolidated net profit for the second quarter. Weak European markets also fueled to the depressing sentiment amid more trouble in the financial sector after Deutsche Postbank reported a quarterly loss. Postbank booked 364 million euros in the third quarter losses related to its exposures to U.S. investment bank Lehman Brothers. During last trading, short covering helped market to stage sharp recovery from days low. BSE Sensex ended above 8,500 level and NSE Nifty above 2,500 mark. From the sectoral front, Capital Goods, Bank, Auto, Pharma, Metal and Consumer Durables stocks contributed to the most of the selling pressure. However, Reality and Oil & Gas stocks were in limelight as witnessed most of the buying from these baskets.

Among the Sensex pack 21 stocks ended in red terrain and 9 in green. The market breadth was negative as 2019 stocks closed in red while 515 stocks closed in green and 43 stocks remained unchanged.

The BSE Sensex closed lower by 191.51 points at 8,509.56 and NSE Nifty ended down by 59.8 points at 2,524.2. The BSE Mid Caps and Small Caps closed with losses of 129.45 points 2,966.23 and by 182.99 points at 3,478.84. The BSE Sensex touched intraday high of 8,739.48 and intraday low of 7,697.39.







Losers from the BSE Sensex pack are Tata Motors (13.95%), M&M Ltd (13.71%), JP Associates (10.33%), Grasim Industries (9.57 %), Tata Power (8.75%), SBI (8.63%), L&T Ltd (7.13%), HDFC (7.12%), Hindalco (6.81%), ITC Ltd (6.38%) and Wipro Ltd (6.25%).

Gainers from the BSE Sensex pack are Bharti Airtel (5.99%), Reliance (5.83%), Reliance Infra (3.97%), Reliance Communication Ltd (3.62%), Sterlite Industries (3.40%), ICICI Bank (2.03%) and TCS Ltd (1.39%).

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 Capital Goods index plunged 271.01 points to close at 6,339.80 as Suzlon Energy (17.02%), Havells India (16.96%), Everest Kanto (16.42%), Aiaengineer (11.44%) and Punj Lloyd (10.05%) ended in negative territory.
BHEL has won its first commercial order valued at Rs.1,474 crore for 660 MW Steam Turbine Generators from NTPC. The order is for setting up the steam turbine generator package at Barh Thermal Power Project Stage-II, in Bihar.

The Bank index lost 177.85 points to close at 4,472.02 as Indian Overseas Bank (15.20%), Indus Ind Bank (12.60%), Bank of India (9.55%), SBI (8.63%), Yes Bank (8.28%) and IDBI Bank (8.14%) in negative territory.
SBI has announced its second quarter results. Its standaloneQ2 net profit increased by 40.25% at Rs.2260 crore as against Rs.1611.42 crore in the corresponding quarter last year. SBI also posted second-quarter consolidated net profit of Rs.2,378.19 crores, compared with Rs.2,150.72 crores in the year-ago quarter.

The BSE Auto index ended down by 147.03 points at 2,333.93. Losers are Tata Motors (13.95%), M&M Ltd (13.71%), Bharat Forge (9.07%), MRF Ltd (8.41%), Apollo Tyre (7.00%) and Escorts Ltd (6.68%).

The BSE Pharma index closed lower by 139.63 points at 2,671.84. Losers are Glenmark Pharma (20.00%), Dishman Pharma (19.99%), Matrix Lab (14.81%), IPCA Lab Ltd (13.67%), Wockhardt Ltd (9.14%) and Aurobindo Pharma (8.38%).

The BSE Metal index ended down by 125.32 points at 4,268.56. Major losers are Nalco (13.14%), Jindal Steel (9.29%), Ispat Industries (7.41%), Wespan Guajrat Sr (6.85%), Hindalco (6.81%) and Tata Steel (5.50%).

The BSE Reality index gained 74.01 points to close at 1,817.28. Major gainers are Unitech Ltd (41.86%), Indiabull Real (15.07%), Omaxe Ltd (9.30%), Akruti City (1.63%) and Sobha Dev (1.12%).