Post Session Commentary - Oct 6 2008

Domestic markets slipped over 5% to the two year low after going through a heavy blood bath during the trading session. BSE Sensex ended around 11,800 level and NSE Nifty around 3,600 mark on the concern of credit crises that may lead to global recession. Although U.S. lawmakers approved a $700 billion bank-rescue plan but the investors are still concerned on whether this bailout plan will bring the relief into the market. Markets opened on extremely negative note on weak global cues. Further markets continued to witness huge selling pressure with out any sign of recovery as bears took complete control on bulls. 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 credit crunch is now covering European companies. There is news that BNP Paribas will buy 75% stake in Fortis'' units for $11.3 billion along with that the finance ministry of Germany has decided to pump additional 15 billion euros expanding on an earlier 35 billion euros to save one of the biggest real estate giant ‘Hypo Real Estate AG’. From the sectoral front, all indices ended in deep red. Consumer Durables index hit the most as witnessed deep cut of more than 11% followed by Metal and Reality stocks that lost more than 9%. Apart from that, Capital Goods, Oil & Gas, Bank, Pharma and IT stocks pulled the market lower as witnessed most of the selling from these baskets. Midcap and Smallcap stocks had also crashed very badly. Among the Sensex pack all 30 stocks ended in negative terrain. The market breadth was extremely negative as 2369 stocks closed in red while 281 stocks closed in green and 27 stocks remained unchanged.

The BSE Sensex closed lower by 724.62 points at 11,801.60 and NSE Nifty ended down by 215.95 points at 3,602.35. The BSE Mid Caps and Small Caps closed with losses of 333.57 points at 4,344.23 and by 378.47 points at 5,086.93. The BSE Sensex touched intraday high of 12,284.49 and intraday low of 11,732.97.

Losers from the BSE are Sterlite Indus (15.26%), Reliance Infra (13.93%), JP Associates (13.57%), Tata Steel (11.06%), DLF Ltd (10.33%), Tata Power (10.15%), Reliance Com Ltd (9.95%), Grasim Indus (9.54%), BHEL (7.48%), Reliance (6.76%) and Ranbaxy Lab (6.59%).

The BSE Metal index plunged 780.46 points to close at 7,636.65. Major losers are Sterlite Indus (15.26%), JSW Steel (15.10%), Jindal Steel (14.27%), Welspan Guajrat sr (12.15%), Gujarat NRE C (11.30%) and Ispat Indus (11.11%).

The BSE Capital Goods index closed lower by 744.06 points at 9,494.03. Losers are Praj Indus (19.22%), Suzlon Energy (13.71%), Elecon ENG C (12.74%), Crompton Greaves (11.39%), Reliance Industrial Infra (11.15%) and Walchand In (11.11%).

The BSE Oil & Gas index tumbled 517.17 points to close at 7,909.50 as Gail India (35.76%), Aban Offshore (16.73%), Cairn Indi (10.89%), Reliance Pet (9.53%), Essar Oil Ltd (9.47%) and Reliance Natural Resources (7.96%) ended in negative territory.

The BSE Reality index ended down by 329.86 points at 2,999.99. Losers are Housing Dev (14.72%), Orbit Co (13.77%), Pheonic Mill (13.62%), Penland Ltd (12.25%), Ansal Infra (10.70%) and DLF Ltd (10.33%).

The Consumer Durables index lost 318.06 points to close at 2,569.60. As Gitanjali GE (16.75%), Titan Ind (11.48%), Videocon Ind (9.99%), Rajesh Export (8.32%) and Blue Star L (7.91%) closed in negative territory.

The BSE Bank index dropped by 256.95 points to close at 6,172.00. Major losers are Yes Bank (12.07%), Kotak Bank (11.06%), Indian Overseas Bank (7.17%), HDFC Bank Ltd (5.61%), Bank of India (5.38%) and Indus Ind Bank (5.14%).