Post Session Commentary - Dec 2 2008

The domestic market ended the day in negative territory due to the selling in key stocks throughout of trading session. The selling pressure was fuelled on weak cues from global stock markets. Though, market tried to recover during mid session on reports that India is not considering military action against Pakistan along with on hopes of rate cut by RBI. Japan''s central bank unveiled corporate financing steps. Bank of Japan will temporarily accept lower rated corporate debt as collateral from commercial banks and would provide unlimited funds collateralized by corporate debt at 0.3% interest. Along with this, Australia''s central bank slashed interest rates by 100 basis points to 4.25%, which is six-year low.

The Indian market opened lower on the back of weak cues from global markets. In the US, the National Bureau of Economic Research, or NBER, officially confirmed that the US recession started in December 2007. The markets weakened further during the trade as selling pressure intensified. Despite trimming losses after its struggle for recovery, market ended lower on account of a downtrend in global indices. The BSE Sensex slipped below 8,800 mark and NSE Nifty closed below 2,700 level. From the sectoral front, heavy selling pressure was seen in the Auto, Oil & Gas, IT, Consumer Durables, Capital Goods, Metal and PSU stocks. While, Reality, FMCG and Power stocks were in limelight as most of the buying was witnessed from these baskets.

Among the Sensex pack 18 stocks ended in red territory and 12 in green. The market breadth was negative as 1297 stocks closed in red while 801 stocks closed in green and 63 stocks remained unchanged.

The BSE Sensex closed lower by 100.63 points at 8,739.24 and NSE Nifty ended down by 25.10 points at 2,657.80. The BSE Mid Caps and BSE Small Caps ended with losses of 41.14 and 45.32 points at 2,805.33 and 3,252.41 respectively. The BSE Sensex touched intraday high of 8,785.04 and intraday low of 8,467.43.

Losers from the BSE Sensex pack are M&M Ltd (8.21%), Maruti Suzuki (5.24%), TCS Ltd (5.21%), L&T Ltd (3.46%), Sterlite Industries (3.29%), HDFC (3.27%), Tata Steel (3.16%), Reliance (3.10%), ONGC Ltd (2.61%), RCom (2.19%), Infosys Tech (1.91%) and HDFC Bank (1.56%).

Gainers from the BSE Sensex pack are Reliance Infra (5.37%), Bharti Airtel (3.05%), JP Associates (2.76%), NTPC (2.46%), ITC Ltd (2.45%), DLF Ltd (1.96%), Ranbaxy Lab (1.76%) and Hindalco (1.07%).

The BSE Auto index dropped by (3.04%) or 67.58 points to close at 2,154.75. Losers are M&M Ltd (8.21%), Amtek Auto (8.10%), Maruti Suzuki (5.24%), Tata Motors (3.28%), Bharat Forge (3.06%) and Ashok Leyland (2.40%).

The BSE Consumer Durables index lost (2.61%) or 44.24 points to close at 1,668.75. Major losers are Blue Star L (5.05%), Titan Ind (4.41%) and Videocon Ind (1.96%).

The BSE Oil & Gas index lost (2.45%) or 135.50 points to close at 5,397.87. Losers are Cairn Ind (4.31%), Reliance (3.10%), Essar Oil Ltd (2.90%), ONGC Ltd (2.61%), IOC Ltd (2.47%) and Gail India (1.35%).

The BSE IT index dropped by (2.27%) or 57.41 points to close at 2,476.28. Losers are HCL Tech (7.29%), Rolta India (5.54%), TCS Ltd (5.21%), Aptech Ltd (5.12%) and Oracle Fin (2.96%).

The BSE Reality index ended up by (2.14%) or 31.62 points at 1,509.27. Major gainers are Unitech Ltd (7.29%), Indiabull Real (2.87%), DLF Ltd (1.96%), Housing Dev (1.15%), Omaxe Ltd (0.96%) and Akruti City (0.92%).

The BSE FMCG index ended higher by (1.04%) or 19.62 points at 1,903.71 as ITC Ltd (2.45%), Britania In (0.91%), Colgate Palm (0.67%), Tata Tea Ltd (0.55%) and HUL (0.30%) ended in positive territory.