Post Session Commentary - Nov 3 2009

Extending losses for the six straight trading sessions, the Indian market tumbled in the final hours of the session to close on a negative note tracking the weakness across the Asian markets. Also the negative opening of the European markets spoiled the investors’ sentiments further. Moreover, the reports that the Comptroller and Auditor General (CAG) has set up a team to examine the expenses incurred by Reliance industries on its D6 natural gas filed in the Krishna Godavari basin, put some pressures. This led to the fears that there may be audit in other major companies led to the major selloff across the sectoral indices. The BSE Sensex closed below the 15,410 mark while Nifty just below 4,570 mark. From the sectoral front, the Realty stocks was the major hit as it was down by 9.76% followed by Metal and Oil and Gas indices, which closed with losses of 5.95% and 4.10% respectively.

The market witnessed a strong volatility during the trading session. Though the market opened on a negative note tracking the weakness in Asian markets and extends its losses further but made a sharp turnaround to recover from the initial losses on selective buying across the sectoral indices. However huge selling pressures in the late hours led the market to close on a disappointment note. From the global markets, The US markets closed positive on Monday amid better than expected economic data. The ISM Manufacturing Index for October witnessed at 55.7, construction spending in September gusted 0.8%, and pending home sales for September made a 6.1% monthly rise helped broad-based buying. Financials were outperformer as the sector gained 2.5%.

Among the Sensex pack 27 stocks ended in negative territory and 3 stocks in positive territory. The market breadth indicating the overall health of the market remained weak as 2,171 stocks closed in red while 534 stocks closed in green and 56 stocks remained unchanged in BSE.

The BSE Sensex closed lower by 491.34 points or (3.09%) at 15,404.94 and NSE Nifty closed down by 147.80 points or (3.14%) at 4,563.90. The BSE Mid Caps closed lower by 224.81 points at 5,789.49 and the BSE Small Caps closed with losses of 317.48 points at 6,741.24. The BSE Sensex touched intraday high of 15,957.06 and intraday low of 15,330.56.

Losers from the BSE Sensex pack are Hindalco Inds (10.50%), DLF (9.04%), JP Associates (7.52%), Sterlite Inds (6.40%), ACC (6.20%), Reliance Infra (5.96%), Reliance Inds (5.73%) and Reliance Communications (5.71%).

Gainers from the BSE Sensex pack are Bharti Airtel (2.67%), Maruti Suzuki (1.13%) and Sun Pharma (0.31%).

On the global markets front, the Asian markets that opened before the Indian market, closed in red. Hang Seng, Jakarta Composite, Strait Times, Seoul Composite and Taiwan Weighted closed lower by 1.76%, 1.58%, 0.90%, 0.59% and 0.17% at 21,240.06, 2,334.10, 2,621.55, 1,549.92 and 7,322.93 respectively.

European markets, which opened after the Indian market, are trading in negative. In Paris the CAC 40 is lower by 2.01% at 3,566.32, in Frankfurt DAX index is trading down by 1.66% at 5,340.72 and in London FTSE 100 is lower by 1.96% at 5,004.60.

BSE REALTY indexwas at 3,453.63 down by 373.5 points or by (9.76%) The main losers were Indbul Real down by (16.15%) at Rs.209.45, Sobha Dev down by (10.55%) at Rs.201.35, Anant Raj In down by (9.85%) at Rs.117.65, Unitech Ltd down by (9.18%) at Rs.74.7, Dlf Ltd down by (9.04%) at Rs.336.55.

BSE METAL index was at 13,110.68 down by 829.49 points or by (5.95%) The main losers were Gujara Nre C down by (13%) at Rs.52.55, Hindalco In down by (10.5%) at Rs.109.15, Jsw Sl down by (9.92%) at Rs.680.65, Jai Corp Lim down by (6.49%) at Rs.154.2, Sterlite In down by (6.4%) at Rs.722.15.

BSE BANKEX index was at 9,156.16 down by 180 points or by (1.93%) The main losers were Federal Bank down by (8.47%) at Rs.219.8, Yes Bank down by (7.76%) at Rs.218.2, Allahabad Bk down by (5.79%) at Rs.112.3, Idbi Bank L down by (5.68%) at Rs.107.2, Kotak Bank down by (4.66%) at Rs.680.65.

BSE AUTO index was at 6,235.73 down by 71.47 points or by (1.13%) The main losers were Amtek Auto L down by (5.92%) at Rs.164.6, Escorts Ltd. down by (5.89%) at Rs.99.9, Herohonda M down by (3.5%) at Rs.1510.95, Mahindra & Mahindra Ltd. down by (3.01%) at Rs.894.2, Bosch Ltd* down by (2.67%) at Rs.4185.

BSE HC index was at 4,353.70 down by 23.5 points or by (0.54%) The main losers were Dishman Phar down by (9.67%) at Rs.211, Opto Circuit down by (7.23%) at Rs.184.9, Sunpha Adv down by (6.56%) at Rs.75.5, Orchid Chem down by (5.8%) at Rs.144.6, Wockhardt Lt down by (5.36%) at Rs.161.45.

BSE OIL&GAS index was at 9,047.91 down by 386.52 points or by (4.1%) The main losers were Aban Offsho down by (13.39%) at Rs.1104.65, Essar Oil Ltd. down by (8.31%) at Rs.122.4, Reliance down by (5.73%) at Rs.1820.65, Indian Oil C down by (2.82%) at Rs.305.25, Cairn Ind down by (2.5%) at Rs.256.9.

Mahindra and Mahindra closed lower by 3.01% at Rs. 894.20. The company has reported a growth of 32.11% in domestic sales of its utility vehicles in October at 18,410 units as against 13,935 units during same period last year. Moreover, its total domestic sales grew by 23.31 per cent at 24,538 units during the month as against 19,899 units during the same month last year.

Tata Motors fell 2.33% to close at Rs. 551.85 as the company has posted a handsome growth of 34.42% in its total sales at 53,404 units during October as against 39,729 units in the same month in 2008. The total passenger vehicle sales in the domestic market surged by 17.61 per cent at 20,011 units as against 17,014 units in the same month last year.

Unity Infraprojects Ltd closed flat at Rs. 439.90. The company has in Joint Venture with IVRCL Infrastructures & Projects Ltd, bagged a contract amounting to Rs. 1145.88 Crores for the Construction of a 8.3 km long Tunnel using Tunnel Boring Machine (TBM) from Kapurbawdi to Bhandup Complex, Mumbai from the Municipal Corporation of Greater Mumbai to be completed within 60 months. Unity Infraprojects Ltd is the Lead Partner of the Joint Venture with a share of 50 % in the Joint Venture.

Larsen & Toubro Ltd (L&T) closed lower by 2.65% at Rs. 1,525.60. The company wins Rs 6,897 Crore Order from Mahagenco for 2000 MW Supercritical Power Plant"