Sensex falls over 500 points; Nifty also ends in red

Mumbai: The markets were completely shattered on Monday, the first day of week on huge volumes by bad cues from US and Asian markets due to climbing Crude higher, which raises the Inflation further.

Realty, technology, capital goods, oil & gas, power and banking stocks witnessed heavy selling pressure, which brought the major indices below their psychological levels during the day. Midcap and small cap stocks also caught in bears hand.

The Nifty has broken 4500-mark (hit new 2008-low) and the Sensex cracked below 15000 during the day but both indices managed to close above those levels and recovered nearly 80 points and 280 points from days low, respectively.

In the second half of session, major pharma and metal stocks have got some buying support.

Turnover traded by the markets for the day stood at Rs 76668.53 crore, including Rs 13292.26 crore from NSE Cash segment, Rs 58333.52 crore from NSE F&O and the balance Rs 5042.75 crore from BSE Cash segment.

Realty Index was hit hardest and underperformed other indices. This sector have corrected to a large extent. Index fell 7.05 per cent or 437.65 points to settle at 5,772.65 while if we see since this correction started, it has corrected over 58 per cent from its high of 13848.09.

Selling pressure has seen in Unitech, DLF, HDIL, Phoenix Mills, Ansal Properties, Peninsula Land, Akruti City, Sobha Developers, Indiabulls Real, Anant Raj Ind, Puravankara Proj, Parsvnath and Omaxe, which down 4-10 per cent in a day.

DLF has hit new life low of Rs 475 and closed at 481.55, down 7.39 per cent over previous close. The stock is down over 8 per cent from its issue price of Rs 525.

The Sensex closed at 15,128.04, down 2.85 per cent or 444.14 points after hitting an intraday high of 15,202.74 and low of 14,846.18.

The Nifty ended at new closing low of 4,500.95 for 2008 after breaching previous low of 4448.05; it has hit a high/low of 4626.45 and 4411.60 before finishing the day at 4500.95, down 2.74 per cent or 126.85 points.

Biggest losers were Jaiprakash Asso (-8.13 per cent), DLF (-7.10 per cent), ONGC (-7.09 per cent), HDFC (-5.37 per cent), Unitech (-8.80 per cent) and BPCL (-7.31 per cent) while gainers - NALCO (5.68 per cent), Cairn India (4.51 per cent), Hero Honda (4.49 per cent), Ranbaxy Labs (4.16 per cent), Reliance Comm (1.50 per cent), Hindalco (1.08 per cent) and Tata Steel (0.35 per cent).

Market breadth was weak; about 614 shares have advanced, 2348 shares declined, and 153 shares remained unchanged.

Technology stocks also hammered a lot, Index crashed 4.2 per cent or 193.61 points at 4,404.98 led by selling in Wipro, HCL Tech, TCS, Infosys, Patni Computer, Satyam and Tech Mahindra. Infosys slipped below Rs 1900 during the day but managed to close above that level.

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Capital Goods stocks like Alstom Projects, Jyoti Structures, Astra Microwave, Rel Ind Infra, Punj Lloyd, Areva T&D, Kalpataru Power, BEML, BHEL, L&T have pushed the index lower by 397.01 points or 3.3 per cent to end at 11,635.63.

Oil & Gas have also played important role in markets turmoil; Index tumbled 3.29 per cent or 329.53 points at 9,676.55 due to weakness in HPCL, BPCL, ONGC, Petronet LNG, Essar Oil, IOC, Reliance and GAIL. Cairn India is the only stock trading sharply higher with strong upmove due to surge in oil.

The Nymex Crude touched a new all-time high of $139.12 per barrel on Friday but today it slipped below $137 a barrel from a record on reports that North Sea Brent shipments will increase 8.6 percent next month.

Bankex lost 232.96 points or 3.21 per cent at 7,033.32, as sell off seen in Axis Bank, Yes Bank, Oriental Bank, Union Bank, Allahabad Bank, HDFC Bank, SBI and Andhra Bank.

Power stocks like Suzlon Energy, Reliance Infra, CESC, Reliance Power, Torrent Power, GVK Power, NTPC and Power Grid Corp have fueled sell off ,which pulled the index down by 2.99 per cent at 2,619.28.

Auto Index fell 2.45 per cent or 103.68 points at 4,123.64. Auto stocks like Amtek Auto, Ashok Leyland, Tata Motors, Hind Motors, Cummins, TVS Motor, Maruti Suzuki and MRF also lost the road.

FMCG stocks like United Spirits, ITC, Tata Tea, HUL, Colgate, Godrej Consumer and P&G have plunged. Index was down 2.06 per cent at 2,313.24.

Metal Index has recovered nearly 547 points during the day from its lows due to buying in some of the heaveweights though it closed at 15,389.61, down 125.78 points or 0.81 per cent. Selling has seen in JindalStainless, Jindal Steel, Jindal Saw, Hind Zinc, Sterlite Ind and Mah Seamless while buyin in NALCO, Sesa Goa, JSW Steel and Hindalco.

Midcap Index slid 2.83 per cent or 179.82 points at 6,170.33. Amongst midcap space, BGR Energy, Orbit Corp, Hind Constr, Patel Eng, Bombay Dyeing, SpiceJet, IBN18 Broadcast, National Fert, Phoenix Mills, Ansal Properties, KS Oils, Deccan Chronicle and DCB were down over eight per cent.

In the small cap segment, Bajaj Auto Fin, Rajapalayam, Lumax Inds, Mahindra Forg, Unity Infraproj, Prajay Engineer, Panchmahal Stee, Khaitan Electri, Sical Logistics and Guj Amb Exports plunged over 10 per cent. Index fell 279.51 points or 3.63 per cent at 7,416.54.

However, Healthcare Index has shown smart rebound, Index up 0.53 per cent at 4,318.75 due to buying in Lupin, Ranbaxy Labs, Piramal Health and Sun Pharma. Selling seen in Wockhardt, Matrix Lab, Aurobindo Pharma, Panacea Biotech, Orchid Chemical, Aventis Pharma, Pfizer, Novartis India, Divis Labs and Cadila Health.

Most active counters were Reliance Ind, Reliance Comm, Larsen & Toubro, Bharti Airtel, Reliance Petro and Cairn India.

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On the global front, Asian markets closed lower, Nikkei was down 2.13 per cent, Taiwan Weighted down 1.8 per cent, Straits Times down 1.99 per cent and Kospi down 1.27 per cent. European markets have not seen any major impact of US markets crash, they were trading flat, at the time of writing market report.

Markets Snapshot

• Markets witness sharp fall falling US market cues and in line with Asian peers
• Nifty hits new 2008-low during the day; manages to close at 4500; Nifty recovers nearly 80 pts from day's low
• Sensex ends down 506 pts at 15066; falls below 15000 during the day
• Reliance Ind hits new 2008-lows at 2111
• BSE Smalll-cap Index down 3.6 per cent, Nifty Junior down 3.8 per cent
• Bank, Realty & Cap Goods hit new 2008-lows
• BSE Realty Index down 7 per cent; Unitech down 9.6 per cent, DLF down 7.2 per cent
• BSE IT Index down 4.2 per cent; TCS down 3.4 per cent, Wipro down 5 per cent, Infosys down 4.6 per cent
• BSE Cap Goods, Oil & Gas Index down nearly 3.3 per cent
• Index losers; Suzlon down 6.5 per cent, ONGC down 6.3 per cent, HDFC down 6 per cent
• Index Gainers; Nalco up 4.8 per cent, Cairn India up 4.4 per cent, Ranbaxy up 3.7 per cent, RPL up 2.9 per cent
• Non-Index losers; Bajaj Auto Fin down 13.5 per cent, Neyveli Lignite down 9.2 per cent, HCC down 10 per cent, Alok down 9.3 per cent
• NSE Advance Decline at 1:8
• Total market turnover at Rs 76668 crore; FNO turnover at Rs 58333 crore

F&O Snapshot

• Nifty futures discount at 14 pts; add 33.5 lakh shares in OI
• Some short covering in Nifty futures seen in last half an hour of trade
• Unwiding seen in momentum stocks; Fresh long seen in Cairn, Ranbaxy, R Comm
• Fresh shorts seen across sector: oil & gas, realty, infra stocks
• Fresh shorts: Suzlon, NTPC, Power Grid, RIL, ONGC, JP Ass, GMR Infra. DLF
• Unwinding of long positions seen in Ispat, Alok, Ambuja Cem, Nag Fert, IFCI
• Options Action Nifty 4200 put add 26 lakh shares in OI, Nifty 4500 call add 24 lakh shares in OI, Nifty 4400 put add 12.5 lakh shares in OI, Nifty 4700 call shed 12 lakh shares in OI

Asia Today

• Asian markets fell following US markets cues
• Nikkei down 2 per cent, Kospi down 1.5 per cent, Straits Times down 2 per cent
• Hang Seng, Australian & Shanghai markets were shut on Monday
• Crude down nearly $2/bbl on reports that North Sea Brent shipments will increase 8.6 per cent next month
• UK PPI increased at the quickest rate in last two decades