Sharekhan admits, can others follow suit ?

One of our readers has forwarded Sharekhan sending out a email to their customers.

Atleast, they have the guts to admit that they screwed up. Can the others put up their hands please and apologize to their customers

Dear Customer,

The last few days took all of us off guard. To make things worse, a lot of you faced issues with our service levels. Some of the issues faced by customers were trading system downtime, customer service cell not responding, fund transfer not happening etc. We don’t want to offer any excuses on why this happened as there can be no justification for the hardship you have undergone.

We apologize for the inconvenience caused to all of you. We will strive to make amendments in all the areas concerned to improve the service delivery to you.

We exist because of you- our customers. It’s the confidence that you have placed in us that has resulted in us doing more than 4 lacs transactions per day and adding 45,000 new customers this month.

We accept that we were found wanting on service delivery due to the sudden spurt in transactions/queries caused by this fall. We commit to improve upon the same in the days to come.

Warm Regards,
Tarun Shah
CEO

Buoyancy lifts Sensex past 14,400

The markets stabilised today after witnessing wild intra-day swings yesterday. The market regained strength after the Left Front indicated softening its stand on the Indo-US nuclear deal. The Sensex opened on a positive note at 14,237 despite weakness in global indices. As trading progressed, the market gained strength on strong buying in metal, auto, oil and capital goods stocks. A smart rally thereafter and buoyancy in heavyweight towards the close saw the index surge to an intra-day high of 14,455. The Sensex finally ended the session with a gain of 261 points at 14,425, while the Nifty added 75 points to close at 4,190.

The market breadth was positive. Of the 2,677 stocks traded on the BSE 1,563 stocks advanced, 1,067 stocks declined and 47 stocks ended unchanged. Among the sectoral indices the BSE Metal index notched up a gain of 2.84% at 10,276 followed by the BSE Auto index (up 2.37% at 4,569), the BSE PSU index (up 2.30% at 6,626) and the BSE CG index (up 2.31% at 12,622).

The heavyweights witnessed a strong buying interest. Tata Motors soared 5.93% at Rs659, BHEL rose 4.72% at Rs1,740, Reliance Energy shot up by 4.22% at Rs736, ACC jumped 3.90% at Rs1,010, Tata Steel added 3.80% at Rs582, SBI gained 3.60% at Rs1,466, Ranbaxy moved up by 3.48% at Rs361 and Satyam Computer was up 3.36% at Rs434. However, Dr Reddy's Lab at Rs626 and HDFC at Rs1,905 inched marginally lower.

Metal stocks notched up significant gains during the day. JSW Steel surged 10.13% at Rs572, Welspun Gujrat scaled up 5.77% at Rs228, Bhushan Steel rose 4.98% at Rs655, Maharashatra Seamless Steel jumped 4.33% at Rs578, Jindal Stainless added 3.52% at Rs145 and SAIL gained 3.22% at Rs145.

Over 1.29 crore Nagarjuna Fertiliser shares changed hands on the BSE followed by Tata Teleservices (1.13 crore shares), SEL Manufacturing (1.02 crore shares), IFCI (99.30 lakh shares) and Asian Granite (94.82 lakh shares).

Value wise, SEL Manufacturing registered a turnover of Rs212 crore on the BSE followed by SBI (Rs133 crore), Reliance Industries (Rs99 crore), Asian Granite (Rs97 crore) and Omaxe (Rs90 crore).

Market slips on political uncertainties

The market rose more than 2% on expectations that the global credit problem and local political worries may get resolved very soon. The Sensex resumed with a gap of 209 points at 14,458 tracking positive global cues and rallied sharply to touch the day's high of 14,555. Cement stocks led the rally with banking and metal stocks. However, the market received a major hit in the afternoon as the central committee of CPI (M) announced the party politburo's opposition to the Indo-US nuclear deal and authorised it to do whatever it can to block the deal. Quickly the Sensex entered in to the negative territory but recovered soon. The market remained choppy thereafter and zigzagged between positive and negative territory. The Sensex finally closed the session at 14,164, down 84 points, while the Nifty ended the session at 4,115, down 38 points.

The breadth of the market was weak. Of the 2,665 stocks traded on the BSE, 1,702 stocks declined, 905 stocks advanced and 58 stocks ended unchanged. Almost all of the sectoral indices ended weak while, the BSE FMCG index bucked the trend and closed in the green. The BSE Bankex index lost 2.21%, the BSE Oil & Gas index declined by 1.68% and the BSE PSU shed 1.47%.

Several heavyweights took a sharp tumble on selling pressure. Cipla shed 4.41% at Rs168, ONGC tumbled by 3.07% at Rs784, SBI dropped 2.94% at Rs1,415 and Reliance Energy declined by 2.59% at Rs706. Among the other major losers ICICI Bank slumped by 2.47% at Rs826, HDFC Bank lost 1.74% at Rs1,100, TCS slipped by 1.64% at Rs1,008, Reliance communication dipped 1.64% at Rs487 and Tata Steel shed 1.60% at Rs560. Select counters, however, ended in the green. ACC advanced by 2.02% at Rs972, Ambuja Cement added 1.72% at Rs133, ITC gained 1.45% at Rs161, Maruti Udyog moved up 1.36% at Rs777 and Satyam Computer gained 1.25% at Rs423.

Banking stocks declined on sharp selling pressure. Kotak Bank tumbled by 3.48% at Rs626, Centurion Bank of Punjab dropped 2.76% at Rs37, Fedral Bank shed 2.67% at Rs304 and Punjab National Bank lost 2.58% at Rs452.

Over 2.11 crore Nagarjuna Fertilisers shares changed hands on the BSE followed by Asian Granito (1.42 crore shares), Tata Teleservices (1.39 crore shares), IFCI (1.19 crore shares) and SEL Manufacturing (1.11 crore shares).

Value wise, SEL Manufacturing registered a turnover of Rs197 crore on the BSE followed by Reliance Industries (Rs175 crore), Reliance Capital (Rs144 crore), Asian Granito (Rs133 crore) and SBI (Rs122 crore).

Market may remain firm

After displaying a solid pull-back in yesterday's trades the market is likely to show firm trend in early trades and may advance further on cooling US credit markets woes and falling oil prices. The market is also likely to get support from firm Asian markets which are up over 2% in current trades. However, the market may exhibit caution owing to lack of clarity and higher volatility. Among the indices, the Nifty could test higher levels at 4208 and 4240, and has a supports at 4060. The Sensex has a likely support at 14100 and may face resistance at 14500.

US markets shot up on Wednesday on speculation that the breakdown in credit markets won't hurt the economy. While the Dow Jones flared up by 145 points at 13,236, the Nasdaq moved up by 32 points at 2,553.

All the Indian floats had a field day on the US bourses. Rediff jumped 4.49%, HDFC Bank surged 4.26% and Satyam Computer moved up by 4.13% while Tata Motors, Wipro, Infosys, Patni Computer, VSNL, MTNL and Dr Reddy's Lab gained around 1-3% each.

Crude oil fell on Wednesday after a government report showed U.S. crude inventories rose unexpectedly last week, easing supply concerns. The US light crude oil for October delivery moved down by 31 cents at $69.26 a barrel. In the commodity segment, the Comex gold for December delivery gained by $2.50 to settle at $668.70 an ounce.

Sensex rallies, steers past 14,200

Today the market went into a major recovery mode despite slipping over 184 points in early trades. The market saw a smart pull-back in the afternoon and gained over 292 points for the day. The sharp appreciation came after the investors bought frontline stocks at lower levels. The recovery in major Asian and European markets also made the undertone bullish in the afternoon and the market maintained an upward bias thereafter. Strong buying in capital goods, FMCG and metal stocks helped the Sensex cross 14,200 levels and touch the day's high of 14,281. The Sensex finally ended the session with a gain of 1.86% or 260 points at 14,249. The Nifty rose 1.92% or 78 points to close at 4,153.

However, the breadth of the market was negative. Of the 2,674 stocks traded on the BSE 1,576 stocks declined, 1,041 stocks advanced and 57 stocks ended unchanged. Among the sectoral indices the BSE Capital Goods Index flared up by 3.40%, the BSE FMCG Index rose 2.38%, the BSE Metal Index moved up by 2.38% and the BSE Teck Index was up 1.88%. However, the BSE Realty index, the BSE Auto index, the BSE CD index and the BSE HC index closed in the red.

Barring Tata Motors, Cipla, SBI and Maruti Udyog, all other Sensex stocks ended at higher levels. BHEL flared up 4.81% at Rs1,667, Reliance Energy shot up by 4.74% at Rs725, Tata Steel zoomed 4.28% at Rs570, ITC moved up by 4.07% at Rs158, Bharti Airtel scaled up 4.04% at Rs846, L&T surged by 3.52% at Rs2,390, Ambuja Cement jumped by 2.96% at Rs131 and Reliance Communication gained 2.40% at Rs495.

Capital Goods stocks were in demand and attracted strong buying support. Siemens spurted by 9.17% at Rs1,231, Praj Industries shot up by 8.41% at Rs181, Suzlon Energy flared up 4.77% at Rs1,290 and Areva jumped by 3.56% at Rs1,440. Metal, too, logged significant gains. Sterlite Industries soared 4.35% at Rs567, Maharashtra Seemless Steel added 2.61% at Rs562, Hindustan Zinc jumped by 2.47% at Rs692 and Hindalco climbed 2.02% at Rs139.

Over 2.83 crore Nagarjuna Fertilisers shares changed hands on the BSE followed by IKF Technologies (1.68 crore shares), Chambal Fertilisers (1.18 crore shares), IFCI (1.15 crore shares) and Ispat Industries (78.61 lakh shares).

Value wise, Reliance Industries clocked a turnover of Rs187 crore followed by SBI (Rs150 crore), Zylog Systems (Rs145 crore), GMR Infrastructure (Rs127 crore) and Orbit Corporation (Rs101 crore).

Negative bias may continue

The market tumbled over 400 points in the last trading session and is expected to fall further on mixed global cues. The mix close in the US markets and flat opening in most of the Asian markets coupled with the presence of sharp intra-day volatility could drag down the local indices. The Nifty could test higher levels at 4100 and may find supports at 4060 or 4000, while the Sensex has a likely support at 14,100 and may face resistance at 14,500.

US indices witnessed choppy trading during intra-day trades and ended on a subdued note on Tuesday as investors welcomed a meeting among Federal Reserve Chairman Bernanke, Senator Dodd and Treasury Secretary Paulson on the problems in the financial markets. While the Dow Jones was down 30 points at 13091, the Nasdaq rose 13 points at 2521.

Indian floats closed largely with loses on the US bourses. Rediff was the only gainer and rose over 2% while Infosys, Satyam, Dr Reddy's, Tata Motors ICICI Bank, HDFC Bank, VSNL and MTNL lost over 1-4% each.

Crude oil prices slipped marginally. While the Nymex light crude oil for September delivery moved down by $1.65 at $69.47 a barrel. In the commodity space, the Comex gold for December series slipped by 30 cents to settle at $666.20 a troy ounce.

Bears strike back, drag Sensex below 14,000

The Sensex had witnessed a pullback yesterday and surged around 286 points on a strong buying support. However, the bears hit back strongly and triggered a major sell-off in the market during intra-day trades. Tracking the subdued Asian markets, the Sensex began the session marginally above its previous close but slipped on sustained selling in frontline stocks and continued moving southwards. After plunging below the 14,000 mark to touch the day's low of 13,942, the market moved in a range with a negative bias. The market witnessed panic selling towards the close and the Sensex ended the session with a loss of 438 points at 13,989 whereas the Nifty shed 134 points and closed at 4,075.

All the sectoral indices had a weak outing. The BSE Bankex index and the BSE Realty index dropped over 4% each, while the BSE PSU index, the BSE IT index, the BSE metal index and the BSE Teck index were down over 3% each.

The breadth of the mark was extremely negative, with the losers outpacing the buyers in the ratio of 4.54:1. Of the 2,767 stocks traded on the BSE, 2,236 stocks declined, 492 stocks advanced and 39 stocks ended unchanged. All the Sensex stocks ended in the red. SBI was a major loser and tumbled by 5.59% at Rs1,464. Wipro at Rs447, M&M at Rs612, ICICI Bank at Rs834, Reliance Communication at Rs484, Reliance Energy at Rs692 slumped over 4% each. Among the other major losers Tata Steel dropped 3.99% at Rs546, Hindalco lost 3.88% at Rs136, Cipla fell 3.75% at Rs177 and Infosys declined by 3.72% at Rs1,761.

Banking stocks lost ground on profit taking. Union Bank dropped 7.31% at Rs123, Kotak Bank slumped 6.87% at Rs639, Fedral Bank shed 6.01% at Rs304 and Bank of India slipped by 5.65% at Rs222. Andhra Bank, Allahabad Bank, Canara Bank and Yes Bank also ended weak.

Strong buying was evident in several small-cap stocks. Nagarjuna Fertilisers at Rs39.60 and Chambal Fertilisers at Rs49.65 hit the new high.

Over 3.13 crore Nagarjuna Fertiliser shares changed hands on the BSE followed by SEL Manufacturing Company (2.69 crore shares), Central Bank (2.43 crore shares), Ventura Textile (20.30 crore shares) and Bella Steel (1.98 crore shares).

Value wise, SEL Manufacturing Company clocked a turnover of Rs335 crore on the BSE followed by Central Bank (Rs305 crore), Reliance Industries (Rs189 crore), SBI (Rs121 crore) and Nagarjuna Fertilisers (Rs116 crore).

Market may extend its rebound

Asian markets have rallied for the second consecutive day as U.S. subprime concern are receding. The market is likely to display positive outlook on the back of firm overseas markets. However, FIIs remaining net sellers in equities and persisting intra-day volatility may see the market witness sideways movement. Among the key indices, the Nifty can see a pull-back to 4200 or 4250 levels and has a key support at 4070 levels in the near-term. The Sensex has a likely support at 14,100 and may face resistance at 14,500.

The US indices staged a comeback on Monday, recovering from its earlier selloff sparked by renewed worries about the credit and mortgage markets. With the Dow Jones adding 0.3% or 42 points at 13121 and the Nasdaq also ended firm with gains of four points at 2509.

However, most of the Indian ADRs closed in the red on US bourses. Patni Computer was the major gainer amongst the ADRs and gained over 3%, while Dr Reddy's lab closed with the marginal gains. Infosys, Satyam, Wipro, Tata Motors, ICICI Bank, VSNL, MTNL and HDFC Bank were down over 1-2% each.

Crude oil prices slipped marginally on Monday. While the Nymex light crude oil for September series fell by 86 cents at $71.12 a barrel. In the commodity segment, the Comex gold for December series slipped by 30 cents to settle at $666.50 an ounce.

Buoyancy in overseas markets help Sensex rebound

Correction took a back seat today as bulls returned in the market but with a cautious view providing a healthy support to the otherwise sagging market.The market, which had slipped for last three sessions, remained firm as hectic buying action was witnessed since early trades that lasted through the session. The Sensex received a major boost from the firm US and Asian markets and resumed with a huge positive gap of 370 points at 14,512. The relentless buying in index heavyweights, banking, metal, oil and capital goods stocks propelled the index to an intra-day high of 14,680, up 538 points over its last close. However, the profit bookings amid Sensex pivotal stocks saw the index shed 273 points to touch the day's low of 14,407 towards the close. But, the buying interest thereafter kept the Sensex stable and the index finally ended the session with the gains of 286 points at 14,428. The broad based Nifty surged 101 points at 4209.

Among the sectoral indices the Metal led the upsurge with a gain of 4% at 10,204 followed by the BSE Bankex index (up 3.91% at 7,639) and the BSE PSU index (up 2.44% at 6,703). However, the BSE IT index closed in negative territory. The market breadth was positive. Of the 2,763 scrips traded on the BSE 1,925 stocks advanced, 792 stocks declined and 46 stocks ended unchanged.

Out of the 30 Sensex stocks, 25 managed to end in the green while five stocks ended with a loss. Banking major HDFC Bank was the leading gainer and soared 5.49% at Rs1,128 and ICICI Bank advanced 5.21% at Rs869. ONGC moved up by 4.54% at Rs818, Tata Steel jumped 4.50% at Rs569, Bharti Airtel shot up by 4.34% at Rs829, Ranbaxy added 3.49% at Rs365 and BHEL was up 3.31% at Rs1,610. Among the laggards Satyam Computer dropped 1.75% at Rs433, Infosys shed 1.39% at Rs1,829, Wipro declined by 1.26% at Rs470, M&M slipped 1.24% at Rs642 and TCS was marginally down at Rs1,055.

The metal stocks were the star performers. Sterlite Industries vaulted 8.64% at Rs561, Shree Precoated Steel surged 4.90% at Rs283, Sail jumped 4.11% at Rs143, Welspun Gujarat scaled up 3.71% at Rs225, Nalco spurted 3.14% at Rs256, Maharashara Seemless soared 2.82% at Rs571 and Jindal Steel was up 2.61% at Rs3,865.

Over 4.13 crore Nagarjuna Fertilisers shares changed hands on the BSE followed by Ventura Textile (2.31 crore shares), Chambal Fertilisers (98.55 lakh shares), IFCI (86.76 lakh shares) and Ispat Industries (64.68 lakh shares).

Zylog Systems registered a turnover of Rs245 crore on the BSE followed by Nagarjuna Fertilisers (Rs148 crore), Reliance Industries (Rs120 crore), Orbit Corporation (Rs88 crore) and ICICI Bank (Rs66 crore)

Market may get Fed-Rate-Cut lift

On Friday US Federal Reserve cut its discount rate or the rate at which it lends to its member banks, by 50 basis points to 5.75%. All the European indices took the cue and rose over 2% on Friday. The same boosted the major Asian indices in early trades today and currently are up around 4-5%. Among the local indices, the Nifty could test 4170 on the upside and may slip to 4050 on the downside. The Sensex has a likely support at 14100 and may face resistance at 14500.

Major US indices registered significant gains on Friday after the Federal Reserve cut its discount rate, easing worries about the credit and mortgage markets. While the Dow Jones flared up by 233 points at 13,079, the Nasdaq moved up by 54 points to close at 2,505.

Except Dr Reddy's Lab and Patni Computer all the Indian ADRs traded firm on the US bourses. ICICI Bank led the pack with gains of over 12% while HDFC Bank, VSNL , Wipro and MTNL jumped over 5-8% each. Among other gainers Satyam, Infosys, Tata Motors and Rediff added around 1-4% each.

Crude oil prices advanced further, with the Nymex light crude oil for September delivery gaining by 98 cents to close at $71.98 a barrel. In the commodity space, the Comex gold for December delivery gained $8.80 to settle at $666.80 an ounce.

Global meltdown leads to market crash

A sell-off in Asian markets followed by European markets sent the Sensex tumbling over 600 points for the day. The market opened in the red at 14,585, down 416 points tracking the sharp fall in the US and Asian indices and touched the day's low of 14,345 on relentless selling in banking, metal and capital goods stocks. The banking index closed 5% down as investors turned negative on the financial sector amid fears of global credit squeeze. The Sensex dropped over 10% from the record 15,869 hit on July 24 with foreign funds dumping about $700 million of local stocks in August. The Sensex finally closed with a loss of 4.28% or 643 points at 14,358. The Nifty shed 4.38% or 192 points to close at 4,179.

The market breadth was extremely negative, with the losers outnumbering the gainers in the ratio of 2.19:1. Of the 2,751 stocks traded on the BSE, 1,869 stocks declined, 842 stocks advanced and 40 stocks ended unchanged. All the sectoral indices were battered. Among the major losers-- the BSE Metal index lost 6.51%, the BSE Bankex index dropped 5.42%, the BSE Realty shed 5.56%, the BSE CG index declined by 4.43% and the BSE Oil & Gas index fell 4.37%.

None of the Sensex stocks closed in the green. Among the major losers Tata Steel plummeted by 10.34% at Rs575, Bharti Airtel tanked by 6.63% at Rs801, SBI dropped 5.78% at Rs1,522, Hindalco slumped 5.62% at Rs145, Reliance Communication crumbled by 5.55% at Rs495, ICICI Bank shed 5.17% at Rs832 and Reliance Industries slipped 5.06% at Rs1,739. BHEL at Rs1,602, Reliance Energy at Rs717, HDFC Bank at Rs1,094, L&T at Rs2,319, ONGC at Rs819, ITC at Rs158 and Tata Motors at Rs663 shed over 4% each.

Metal stocks lost heavily. Sterlite tumbled by 8.22% at Rs558, Welspun Gujrat shed 7.27% at Rs225, Shree Precoated Steels lost 5.87% at Rs291 and Hindalco declined by 5.62% at Rs145. The banking counters, too, bore the brunt and fell sharply. Union Bank, Bank Of India, Indian Overseas Bank, Bank Of Baroda, Kotak Bank, Oriental Bank, Canara Bank and Axis Bank shed 6-10% each.

Over 3.12 crore Nagarjuna Fertilisers shares changed hands on the BSE followed by Centurain Bank of Punjab (2.23 crore shares), IKF Technologies (1.43 crore shares), IFCI (1.42 crore shares) and Bella Steel (1.28 crore shares).

IVR Prime Urban Developers was the most actively traded counter on the BSE and registered a turnover of Rs328 crore followed by Reliance Industries (Rs201 crore), Tata Steel (Rs154 crore), DLF (Rs150 crore) and Reliance capital (Rs116 crore).

Weak Asian indices indicate a negative open

Unabated correction in overseas markets likely to keep the sentiment bearish. Major factors like FIIs continuing offloading in equities my also add pressure. Among the key indices, the Nifty may decline to 4300 while on the upside the index faces resistance in the 4400-4440 range. The Sensex has a likely support at 14700 and could test higher levels of 15140.

US indices tumbled on Wednesday, with the Dow industrials closing at a four-month low as Countrywide Financial revived worries about the credit and mortgage markets. While the Dow Jones declined 167 points at 12861, the Nasdaq dropped 40 points to close at 2459 on weakness in tech stocks.

All the Indian ADRs were battered on the US bourses. ICICI Bank tumbled 6.1% followed by VSNL, Satyam and HDFC Bank slipping over 4-5% each. Among the other major losers Infosys, Wipro, Tata Motors, Dr Reddy's and Patni computers plummeted 1-3% each. However MTNL bucked the trend and gained around 1%.

Crude oil prices moved up, with the Nymex light crude oil for September delivery gaining by 95 cents at $73.33 a barrel. In the commodity segment, the Comex gold for December series remained unchanged at $679.70 a troy ounce.

Market lacked the lustre

After opening marginally above its previous close, the Sensex slipped into the red tracking weak global cues. The market continued to trade in a narrow range thereafter. The lack of interest in buying and the selling in index pivotal stocks dragged the index to the day's low of 14,965 by the afternoon. The Sensex entered into the green in the late trades due to resumption of buying in energy, banking and consumer durable stocks. But the index could not withstand the selling pressure and entered into the red again, finally closing the session at 15,001, down 16 points. The Nifty ended the session three points down at 4,370.

However, the market breadth was positive. Of the 2,763 stocks that traded on the BSE, 1,571 stocks advanced, 1,103 stocks declined and 89 stocks ended unchanged. Among the sectoral indices, the BSE CD index moved up by 2.07% followed by the BSE Realty index (up 1.19%). However, the BSE Auto index, the BSE HC index, the BSE IT index, the BSE FMCG index and the BSE Teck index closed in negative territory.

Among the index heavyweights, NTPC flared up by 2.98% at Rs173, ONGC spurted 1.27% at Rs854, HDFC Bank scaled up 1.26% at Rs1,150, while Hindalco, Bharti Airtel, Dr Reddy's Lab, ICICI Bank, Bajaj Auto, Wipro and Reliance Industries gained marginally. However, ACC tumbled 2.17% at Rs990, HDFC slipped 2.13% at Rs1,941, Grasim was down 1.97% at Rs2,879, HLL lost 1.72% at Rs200 and M&M fell 1.59% at Rs679.

Over 1.92 crore Nagarjuna Fertilizers’ shares changed hands on the BSE followed by IKF Technologies (1.57 crore shares), IFCI (1.23 crore shares), Reliance Natural Resources (1.03 crore shares) and Omnitech (89.95 lakh shares).

Everonn Systems was the most actively traded counter on the BSE and registered a turnover of Rs380 crore followed by Omnitech (Rs150 crore), Orbit Corporation (Rs138 crore), IDBI (Rs97 crore) and SBI (Rs96 crore).

Market may remain under pressure

Except Heng Seng most of the major Asian indices are currently trading in the red and overnight fall in the US indices is likely to weigh on the investors sentiment. The FIIs are also remained net sellers in equities in previous trades and the prevalence of sub-prime woes may also add pressure on local indices. Among the key indices, the Nifty may decline to 4350 while on the upside the index faces resistance in the 4400-4440 range. The Sensex has a likely support at 14700 and could test higher levels of 15140.

US indices finished weak on Monday amid concerns of economic growth. While the Dow Jones declined three points at 13237, the Nasdaq dropped three points to close at 2542 on weakness in tech stocks.

Indian ADRs had a mixed outing on US bourses. MTNL, VSNL, Patni computers and Rediff slipped 1-2% each. However, Wipro surged 2.92% while, Infosys, Satyam, Dr Reddy's, ICICI Bank, HDFC Bank and Tata Motors gained around 1- 2% each.

Crude oil prices moved up, with the Nymex light crude oil for September delivery gaining by 15 cents at $71.62 a barrel. In the commodity segment, the Comex gold for December series fell by 70 cents to settle at $680.90 a troy ounce.

Sensex ends marginally above 15k on firm overseas markets

The market opened higher taking cues from Asian indices, which moved up tracking US Federal Reserve's action on Friday to inject $39 billion into the banking system to curb spreading liquidity crunch. The market was back on track after slipping for last two sessions. The bounce from the recent sell-off was mainly in line with the recovery in the Asian and European markets which were up over 1%. The market remained firm for the entire trading session with considerable volatile moves. The Sensex began the day by adding 98 points at 14,966 and moved up to touch the intra-day high of 15,044 on substantial buying support in auto, FMCG and consumer durable stocks. The Sensex finally closed the session at 15,017 up 149 points, while the broad based Nifty wrapped up the session at 4,374 up 40 points.

The breadth of the market was positive, with the gainers outpacing the losers in the ratio of 2.36:1. Of the 2,759 stocks traded on the BSE, 1,904 stocks advanced, 804 stocks declined and 51 stocks ended unchanged. Among the sectoral indices, the BSE Auto index moved up by 1.89% followed by the BSE FMCG index (up 1.53%), the BSE CD index (up 1.41%), the BSE Metal index (up 1.34%) and the BSE HC index (up 1.11%). However, The BSE IT index closed in negative territory and shed 0.19%.

Among the heavyweights HLL gained 4.04% at Rs204, Tata Motors soared 3.46% at Rs692, Cipla surged 3.33% at Rs191, M&M moved up by 3.80% at Rs690, Ambuja Cement scaled up 2.65% at Rs130, Bajaj Auto was up 2.64% at Rs2,380, Maruti Udyog advanced by 2.47% at Rs830 and HDFC gained 1.86% at Rs1,984. However, the IT majors TCS, Infosys and Satyam ended the day in negative territory.

Over 2.08 crore IFCI shares changed hands on the BSE followed by Nagarjuna Fertilizers (1.18 crore shares), Reliance Natural Resources (1.18 crore shares), Mangalore Chemicals (1.03 crore shares) and Silverline Technologies (one crore shares).

Value-wise, Everonn Systems registered a turnover of Rs399 crore on the BSE followed by Orbit (Rs208 crore), IFCI (Rs139 crore), IDBI (Rs113 crore) and Reliance Industries (Rs88 crore).

Sensex drops 1.54% amidst high drama

The market expected carnage today against the backdrop of weak Asian indices and yesterday's crash, but the Sensex recovered most of its losses on substantial buying in heavyweights, information technology and consumer durable stocks. The Sensex gyrated over 300 points amid high volatility. After crashing in early trades the Sensex touched the day's low of 14,571, down over 500 points to its previous close at 15,100. However, the market witnessed a steady to firm buying in the afternoon and the Sensex rallied sharply, erasing most of its earlier losses. Finally, the Sensex ended 1.54% lower or down 232 points at 14,868 whereas the Nifty was down 1.59% or 70 points at 4,333.

The market breadth was weak, with losers outnumbering gainers by 1.57:1 on the BSE. Of the 2,662 stocks traded on the BSE 1,597 stocks declined, 1,016 stocks advanced and 49 stocks ended unchanged. Barring the BSE IT index, most of the BSE sectoral indices continued to trade weak and dropped around 1-2% each. The BSE Bankex Index was the major loser and lost 2.53% while the BSE Realty Index shed 2.47%.

Majority of the 30-Sensex stocks ended in the red. Among the major losers Bharti Airtel shed 3.61% at Rs838, HDFC plunged 3% at Rs1,955, ONGC crumbled 2.94% at Rs841, NTPC crashed 2.92% at Rs165, Hindalco slipped by 2.85% at Rs152, ICICI Bank tumbled 2.84% at Rs865, M&M lost 2.69% at Rs670, Reliance Communication dropped 2.69% at Rs522, SBI slumped 2.52% at Rs1,608 and Tata Steel fell by 2.41% at Rs637. Select front-line counters rebounded from their intra-day lows and ended in the green. Satyam Computer rose 2.63% at Rs479 and Bajaj Auto advanced 1.49% at Rs2,325, while Tata Motors, Infosys, Wipro and Grasim gained marginally.

Banking stocks witnessed a steep fall. Kotak Bank plummeted 4.22% at Rs735 while Fedral Bank crashed 2.93% at Rs329, Canara Bank slipped by 2.90% at Rs268, PNB fell 2.85% at Rs498 and Axis Bank was down 2.76% at Rs590.

Over 3.72 crore IFCI shares changed hands on the BSE followed by Reliance Natural Resourses (1.52 crore shares), Nagajuna Fertilizers (1.38 crore shares), Harig Cranks (99.77 lakh shares) and JP Hydro (95.22 lakh shares).

Value wise, Orbit Corporation registered a turnover of Rs317 crore followed by IFCI (Rs232 crore), DLF (Rs171 crore), Reliance Industries Ventures (Rs165 crore) and Omax (Rs138 crore).

Market may remain weak

The market is likely to remain under pressure following an overnight fall on the US market. The weakness in the Asian markets in ongoing trades and overnight slump in commodities markets coupled with offloading of FIIs in domestic market may add pressure on the investors sentiment.. Among the major domestic indices, the Nifty could test 4375 on the downside and breaching upon this level it may test 4300, while it has a resistance in the 4435-4475 band. The Sensex has a likely support at 15200 and test higher levels of 15400.

US indices slumped Thursday, with the Dow suffering its second worst session of the year as worries about the global credit market sparked a broad selloff in equities. While the Dow Jones tumbled 387 points at 13271, the Nasdaq dropped 56 points to close at 2556.

Barring Dr Reddy's Lab, rest of the Indian ADRs were battered on the US bourses. HDFC Bank led the slump and crashed over 6% while ICICI Bank, VSNL, and MTNL tumbled over 4.-5% each. Infosys, Wipro, Satyam, Patni Computer and Rediff slumped 2-3% each.

Crude oil prices slipped on Wednesday, with the Nymex light crude oil for September delivery losing 56 cents to close at $71.59 a barrel. In the commodity space, the Comex gold for December delivery fell $13.50 to settle at $672.80 an ounce.

Sensex nosedives on panicky selling

BNP Paribas SA, France's biggest bank, closed its three funds on concerns over US subprime mortgage losses and markets in Europe fell sharply, dampening sentiment back home. London's FTSE 100 index declined nearly 1% while Germany's DAX index shed over 1% and France's CAC 40 index was down 1.55%. The market crashed nearly 480 points from its day's high to touch the intra-day low of 15,062. The fall in European indices and a sharp fall in the global commodities markets played on investors’ sentiment. After adding over 375 points in yesterday's trades, the Sensex resumed 144 points higher at 15,452 and gained around 90 points to touch the day's high of 15,542 on sustained buying in banking and metal stocks. But, the index slipped on across-the-board selling to close at 15,100, down 1.36% or 208 points. The Nifty shed 1.32% or 59 points to close at 4,403.

The market breadth was negative, with the losers outnumbering the gainers. Of the 2,670 stocks traded on the BSE, 2,611 stocks declined, 1,012 stocks advanced and 47 stocks ended unchanged. All the sectoral indices were battered. Among the major losers the BSE CD index lost 2.47%, the BSE Oil & Gas index dropped 1.96%, the BSE FMCG shed 1.73%, the BSE PSU index declined by 1.64%, the BSE IT index and the BSE Teck index fell by 1.55% each.

Excluding the few, most of the Sensex stocks ended in the red. Among the major losers Hindalco plummeted by 3.61% at Rs156, SBI tanked by 3.30% at Rs1,650, Reliance Energy dropped 3.22% at Rs758, Ranbaxy slumped 2.66% at Rs372, Satyam computers crumbled by 2.55% at Rs467 and HDFC shed 2.44% at Rs2,016. ONGC at Rs867, ACC at Rs1,001, Grasim at Rs2,919 and ITC at Rs164 shed over 2% each.

Over 1.54 crore IKF Technologies shares changed hands on the BSE followed by IFCI (1.31 crore shares), RNRL (1.24 crore shares), Omaxe (1.21 crore shares) and Nagarjuna Fertilizers (1.07 crore shares).

Omaxe was the most actively traded counter on the BSE and registered a turnover of Rs443 crore followed by Orbit Corporation (Rs341 crore), Reliance Industries (Rs198 crore), SBI (Rs98 crore) and ICICI Bank (Rs93 crore).

North-bound journey to continue

Market may extend its bullish trend following strong gains in the US markets and over 1-2% gains in the ongoing Asian markets. However, FIIs remaining net sellers in domestic equities for last couple of session likely to exert some pressure on the market sentiment. Investors should maintain caution as higher bouts of volatility is likely to persists on the back of market's sharp run-up in last couple of sessions. Key local indices, the Nifty could test higher levels around 4500 in the short term and has a key support at 4400. The Sensex is likely to test 15200 on the downside while it may face resistance at 15400.

US indices gained immense strength in the last minute of the session on Wednesday, with the Dow Jones soaring by 1.14% or 153 points to close at 13658. The Nasdaq also ended firm with gains of 51 points at 2613.

All the Indian ADRs witnessed decent to firm buying support. Infosys was the major gainer amongst the ADRs and vaulted over 5.65%, while Satyam and ICICI Bank vaulted 5%, while Wipro, Dr Reddy's, Tata Motors, VSNL, MTNL, Rediff and HDFC Bank were up over 1-4% each.

Crude oil prices eased a little. While the Nymex light crude oil for September series slipped by 27 cents at $72.15 a barrel. In the commodity segment, the Comex gold for December series shot up by $4 to settle at $686.30 an ounce.

Sharekhan Valueline August 2007

Sharekhan Valueline August 2007