Mkts butchered; Bankex, Realty dip over 4%, CG slips 3.7%

Bears have reigned on the markets again and not given a single chance to bulls in today's session. It was the second straight day of selling pressure in the markets on the back of negative sentiment in US markets, which slipped due to rising crude oil prices, and weak earnings from FedEx and Morgan Stanley. Asian markets also followed same cues and ended in negative terrain.

Banking, capital goods, realty, power and healthcare stocks have put pressure on the markets. Inflation worries have spooked the markets a lot; experts expect Inflation to touch the double digit mark this week itself. Another worrisome subject is Nuke deal. If the UPA government goes ahead with this deal, Left has threatened that they will withdraw support.

The Nifty lingered around its psychological mark of 4500 through the day but managed to close just above that level. It has touched an intraday low of 4488.95, before closing the day at 4504.25, down 78.15 points or 1.71%. The Sensex plunged 334.32 points or 2.17% to finish at 15,087.99, after hitting a low of 15,051.66.

Huge shorts have built up in the futures markets. Nifty June Futures ended at 13.40 points discount and July Futures at 27.25 points discount.

Ranbaxy Laboratories has reached an out of court settlement with Pfizer on Lipitor litigation and agreed to withdraw all litigations against each other. It is a positive news for the company. But the stock went down nearly 8% after reports from Morgan Stanley and Credit Suisse that Lipitor deal will hurt prospects of Ranbaxy Labs.

Amongst frontrunners, Ranbaxy Labs slipped -7.68%, Unitech -5.89%, Reliance Infrastructure -5.68%, BHEL -5.04% and L&T -4.84% while Cairn India was up 3.35%, M&M 1.75%, Hero Honda 1%, Wipro 1% and Cipla 0.23%.

Market breadth was weak; about 903 shares have advanced while 1886 shares declined. Nearly 335 shares remained unchanged.

Realty stocks have taken huge beating on the bourses in today's trade, Index fell 4.27% or 251.18 points at 5,634.60 due to huge selling in Unitech, Indiabulls Real, Puravankara Proj, Parsvnath, Mahindra Life, DLF and HDIL.

Bankex was the second worst performer, down by 4.01% or 293.26 points at 7,013.18. Banking stocks like IOB, Kotak Mahindra, Bank of India, PNB, Axis Bank, ICICI Bank, HDFC Bank and SBI have lost ground.

Capital Goods Index crashed 451.64 points or 3.73% to settle at 11,667.69 on the back of beaten down stocks like Gammon India, Punj Lloyd, BHEL, Alstom Projects, Rel Ind Infra and L&T.

Power stocks were completely under selling presssure. This includes Torrent Power, Reliance Infra, GVK Power, Reliance Power, CESC, Power Grid Corp, Suzlon Energy and NTPC. Index went down 2.625 at 2,604.91.

Healthcare Index fell 2.21% at 4,426.92 due to weakness in Ranbaxy Labs, Dishman Pharma, Orchid Chemical, Sun Pharma Adv, Biocon and Divis Labs.

Oil & gas stocks also caught into bears' grip barring Cairn India. Index slipped 147.50 points or 1.47% at 9,918.85, led by selling in BPCL, ONGC, RNRL, HPCL, IOC, Reliance Ind and GAIL. Cairn India was the gainer as Crude Oil price increased to USD 137 per barrel again.

Auto stocks like Tata Motors, Apollo Tyres, Maruti Suzuki, TVS Motor and Escorts also lost the road. Index was down 0.85% at 4,144.13.

FMCG stocks also remained subdued, which includes Tata Tea, Colgate, Marico, Dabur India, HUL and GSK Consumer. Index fell 0.8% at 2,291.74.

Metal Index went down 0.78% at 15,131.86 due to selling in Jindal Saw, Ispat Industries, NALCO, SAIL, Hindalco and Tata Steel.

Technology stocks have managed to show some recovery but closed at 4,305.90, down by 0.65%. Patni Computer, Financial Tech, HCL Tech, Mphasis, TCS, Tech Mahindra and Infosys.

Most active counters on the bourses were Ranbaxy Labs, L&T, Reliance Industries, Tata Steel and Reliance Petroleum.

Sharp sell off seen in midcap stocks; Index plunged 129.62 points or 2.04% at 6,230.17. HCL Info, Anant Raj Ind, Moser Baer, Plethico Pharma, Torrent Pharma, LIC Housing Fin, Ashapura Mine, Jain Irrigation, Birla Corp, UB Holdings and Gateway Distriparks slid over 6%.

BSE Small Cap Index was down by 1.48% or 114.87 points to settle at 7,660.42. Amongst small cap stocks, Shriram EPC, Subhash Project, Techno Electric, Cambridge Sol, Garware Wall, Borosil Glass, Vaibhav Gems, Ankur Drugs, Tata Metaliks, TV TodayNetwork and Heritage Foods fell over 6%.

In the new listing, Niraj Cement Structurals has closed at Rs 190.15 as against issue price of Rs 190.

Total turnover traded by the markets stood at Rs 56589.65 crore. This includes Rs 9254.57 crore from NSE Cash segment, Rs 42696.18 crore from NSE F&O and the balance Rs 4638.9 crore from BSE Cash segment.

On the global front, Asian markets ended sharply lower following weak US markets cues; Shanghai was down 6.5%, Hang Seng 2.3%, Nikkei 2.23%, Taiwan Weighted 2.07% and Kospi fell 1.9%. European markets were trading flat, at the time of writing market report. FTSE 100 was up 0.3% and CAC 0.13% while DAX fell 0.15%.

Markets Snapshot

• Markets slide on back of weak global cues
• Shanghai ends down 6.5%, Thailand down 2.7%,  Hang Seng, Nikkei, Taiwan down nearly 2%
• Sensex ends down 338 pts at 15084; Nifty down 78 pts at 4504
  CNX Midcap Index down 1.9%, BSE Small-cap Index down 1.5%
• All BSE Sectotal Indices end in the red; led by realty & banking space
• Ranbaxy ends down 7.5% at Rs 552; brokerages not bullish on Ranbaxy-Lipitor settlement
• BSE Realty Index down 4.5%; Unitech down 5.9%, DLF down 3.13%
• BSE Bank Index down 4%; ICICI Bank down 4.2%, HDFC Bank down 3.9%, SBI down 3.7%
• Index Losers; Rel Infra down 5.7%, BHEL down 5.1%, L&T down 4.8%, RIL down 1.7%, ONGC down 3%
• Losers; IOB down 7.5%, Moser-Baer down 7.5%, Godrej Ind down 9%, Cambridge Sol down 7.8%
• Sugar stocks; Shree Renuka up 7%, Bajaj Hind up 5.25%, Balrampur Chini up 3.6%
• Cement buzzers; Guj Siddhee up 6.7%, OCL India up 6.7%
• NSE Advance Decline at 1:3
• Total market turnover at Rs 56589 cr Vs Rs 65956 cr on Wednesday
• F&O turnover at Rs 42696 cr Vs Rs 47440 cr on Wednesday
• Buzzers
  BOC India up 20%, revised open offer price from Rs 165 to Rs 200
  Kohinoor Foods: Temptation Foods buy 3.79% stake in Kohinoor Foods @ Rs 86.02/sh

F&O Snapshot

• Nifty futures end at 13.5 pts discount Vs 25 pst discount yesterday
• Nifty futures add 31.7 lakh shares in OI
• Ranbaxy stock end down 7.1%; shed 10 lakh shares in OI
• Ranbaxy witness huge call option selling at 560, 580, 600
• Fresh shorts seen in banking, realty, cap goods & tech
• Fresh long seen in sugar, Cairn India
• Unwinding of long positions seen in RNRL, GMR Infra, IDBI, JP Associates
• Option Activity
  Ranbaxy witness huge call option selling at 560, 580, 600
  SAIL 170 call 8.5 lakh shares in OI
  Nifty 4500 call add 5.8 lakh shares in OI
  Nifty 4600 call shed 4.2 lakh shares in OI
  Nifty 4500 Put shed 3.8 lakh shares in OI
• Unwinding of Long Positions
  Ranbaxy Labs down 7.1%; shed 10 lakh shares in OI
  GMR Infra down 1.5%; shed 10 lakh shares in OI
  JP Ass down 2.75%; shed 4.5 lakh shares in OI
• Fresh Shorts
  Unitech down 6.1%; add 5.3 lakh shares in OI
  DLF down 2.5%; add 4.6 lakh shares in OI
  IDFC down 5.2%; add 3.8 lakh shares in OI
  ICICI Bank down 5%; add 2.5 lakh shares in OI
  ONGC down 2%; add 3 lakh shares in OI
• Fresh Longs
  Shree Renuka up 7%; add 10.7 lakh shares in OI
  Cairn India up 3.4%; add 7.5 lakh shares in OI

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