Mkts close at new-2008 lows; realty, banks, auto plunge

Markets closed on a weak note for fourth consecutive day on fears that RBI may hike repo rate and CRR by 50 bps each and Inflation may cross 12% mark, which will be announced on Thursday. Rate sensitives like realty, auto and banking stocks took huge beating on the bourses. Others big losers were metal, select oil and power stocks. Sensex and Nifty both hit new-2008 lows.

Nifty slipped below 3800 in late trade and hit new-2008 low of 3790.20, down 70.9 points from previous close. It ended with a loss of 44.4 points or 1.15% at 3816.70.

Experts say 12000 level is a key inflection point for the Sensex.

Mukul Pal, CEO, Orpheus Capitals said the key inflection point for the Sensex is at 12,000. "We don’t think these levels are going to be easily penetrated. The market has retraced more than two years of gains without a multi-week serious bounce."

Daryl Guppy, Founder and Director of guppytraders.com sees immediate support for Nifty at 3600; below that it will be at 2900. According to him, we will witness a strong bear market if Nifty fails to hold above 3600. He sees support for Sensex at 12200-12380. He feels that Sensex could fall to 10000 levels, if 12200 fails to hold.

Reliance Industries, HDFC, SBI, Tata Steel, ICICI Bank, DLF and Unitech were biggest draggers for both indices.

Nifty July Futures discount trimmed and signs of short covering pushed Nifty in premium of 9 points in last trade. Fresh shorts were seen in real estate stocks. Nifty 3800, 3900 and 4000 call added open intrest and premium increased.

Amongst frontliners, DLF lost 7.73%, Jaiprakash Associates -6.09%, NALCO -6.14%, M&M -5.42%, HDFC -4.43% and Cairn India -5.33% while Ranbaxy Labs gained 15.02%, BPCL 2.8%, Bharti Airtel 2.87%, HUL 1.77% and ONGC 2.52%.

Ranbaxy was star of the day as stock surged 15.02% or Rs 61.45 to close at 470.70 after Malvinder Singh CEO of Ranbaxy clarified his company's stance on the US FDA (US Food and Drug Administration) allegations. Rumours of Daiichi Sankyo deal not going through are baseless, he said. The stock shed 11.1 lakh shares in Open Interest and witnessed third highest turnover in F&O.

Realty Index underperformed other indices, crashed 284.33 points or 6.31% to settle at 4,219.12 due to selling in Unitech, DLF, Omaxe, Orbit Corporation, Sobha Developer, Parsvnath, Peninsula Land and Ansal Properties, which fell 4-10.7%. Index lost 70% from its all-time high of 13,848.09.

Auto stocks like Bajaj Auto, Ashok Leyland, M&M, Bosch, Apollo Tyres, MRF, Hero Honda, Bharat Forge, Tata Motors and Punj Tractors lost 2-6%. Index was down by 82.79 points or 2.38% at 3,394.49.

Metal index plunged 289.72 points or 2.37% at 11,935.92 due to sell off in Guj NRE Coke, NALCO, Jindal Saw, Sesa Goa, NMDC, Ispat Industries, SAIL, Hind Zinc and Tata Steel, which fell 3-7%.

Banking stocks like IDBI Bank, Union Bank, Kotak Mahindra, SBI, Karnataka Bank, Axis Bank, Yes Bank, ICICI Bank, Bank of India and HDFC Bank lost 1.5%-4%. Bankex slid 107.76 points or 1.96% at 5,400.24.

Oil & Gas Index plunged 1.03% at 8,588.39 as selling was seen in Cairn India, RNRL and Reliance Ind. However, buying was seen in BPCL, ONGC, HPCL, GAIL and Essar Oil.

Power stocks also declined, which include GMR Infra, Reliance Power, Lanco Infratech, Power Grid Corp, Tata Power, Torrent Power, GVK Power and Reliance Infra. Index fell 0.65% at 2,209.88.

IT Index lost 23 points or 0.63% to close at 3,566.98 due to weakness in Financial Tech, Aptech, Tech Mahindra, TCS, Wipro and Satyam.

BSE Midcap Index tumbled 75.23 points or 1.46% at 5,088.28 and Small cap index down 106.45 points or 1.66% at 6,324.45. Amongst midcap stocks, Advanta, GE Shipping, S Kumars Nation, Guj NRE Coke, Moser Baer and Balaji Telefilm fell 7-9%.

In the small cap space, GIC Housing Fin, Kewal Kiran, Nitco Tiles, Gokul Refoils, RSWM and Maha Scooters lost over 11%.

However, Healthcare Index rose by 62.16 points or 1.59% at 3,971.41 as buying was seen in Ranbaxy Labs, Novartis India, Piramal Health, Divis Labs, Orchid Chemical, Sterling Bio and Cipla.

FMCG stocks like Marico, HUL, Britannia, ITC and Tata Tea have gained. Index ended with a gain of 0.85% at 1,897.46.

BGR Energy has bagged EPC contract worth Rs 4,900 crore from Rajasthan Rajya Vidyut Utpadan Nigam for 2 x 600 MW Kalisindh Thermal Power Project. With this order, its total order book stands at Rs 11,000 crore. The stock jumped 13.41% to close at Rs 247.80.

Market breadth was weak; about 932 shares have advanced while 1979 shares declined. Nearly 237 shares remained unchanged.

Most active counters were Ranbaxy Labs, Reliance Ind, Reliance Infra, Tata Steel, Reliance Petro and ICICI Bank.

Crude was trading at USD 137.95 per barrel on the NYMEX, at the time of writing market report. Crude could dip to USD 126 per barrel, if it falls below USD 137 per barrel, Daryl Guppy said.

Devesh Kumar, MD, Centrum Capital sees crude cooling off to USD 120 - 100 per barrel in a years time. He feels that with oil prices easing the pressure on the balance of trade and current account will reduce significantly.

Total turnover traded by markets stood at Rs 61636.18 crore. This includes Rs 11294.42 crore from NSE Cash segment, Rs 45738.28 crore from NSE F&O and Rs 4603.48 crore from BSE Cash segment.

On the global front, Asian markets ended mixed. Shanghai fell 2.65%, Taiwan Weighted -1.8% and Kospi -0.13%. However, Hang Seng rose 0.23%, Jakarta Composite 0.15%, Nikkei 0.05% and Straits Times 0.16%.

European markets were trading sharply lower on the back of selling pressure in banking stocks. FTSE was down 1.5%, CAC -1% and DAX -1.2%.

Market Snapshot

• New 15-mths closing for Sensex, Nifty
• Sensex ends down 100 pts at 12575.8; hits a low of 12514 during the day
• Nifty ends down 44 pts at 3816.7; hits a low of 3790.2 during the day
• CNX Midcap Index ends down 1.5%; BSE Small-Cap Index down 1.3%
• Ranbaxy bounces back after management clarification; gains 15%
• BSE Realty Index down 5.9%; Unitech down 11%; DLF down 8%
• BSE Metals Index down 1.7%; Nalco down 6%; SAIL down 4%; Tata Steel down 3.5%; Sesa Goa down 5%
• BSE Bank Index down 1.7%; Banks continue to lose ahead of inflation numbers on Thursday at 5:00 pm
• SBI down 3.9%; ICICI Bank down 1.8%, HDFC Bank down 1.6%
• Results Impact: S Kumars, PFC, HDFC, TTML
• Midcap Losers: Guj NRE Coke down 7%, GMR Infra down 5.5%, Nag Fert down 4.8%, Parsvanth down 4.6%
• Small-cap losers; Nitco Tiles down 12.8%, RSWM down 10.5%, Asian Elec down 10%
• Buzzers; Usher Agro up 14.3%, BGR Energy up 13.5%, First Winner up 10.2%
• NSE Advance Decline at 1:3
• Total F&O turnover at Rs 45738.2 cr Vs Rs 44,123 cr a day ago
• Total Market Turnover at Rs 61636.2 cr Vs Rs 59,029 cr a day ago

F&O Snapshot

• Nifty discount trims; signs of short covering pushes Nifty in premium in last trade
• Ranbaxy up 15 %; sheds 11.1 lakh shares, 3 rd highest turnover in F&O
• Fresh shorts seen in Real Estate stocks
• NSE F&O turnover at Rs 45738.3 cr Vs Rs 44122.9 cr in yesterdays trade
• Nifty 3800, 3900 & 4000 call adds open intrest; premium increases
• Nifty Put continues unwinding; nifty 4000 put sheds 3.7 lakh shares
• Option Activity:
  Nifty 4000 put sheds 3.7 lakh shares
  Nifty 3800 call adds 6.7 lakh shares
  Nifty 3900 call adds 6.9 lakh shares
  Nifty 4000 call adds 2.1 lakh shares
• Fresh Short:
  Unitech dn 9.2 %; adds 21.5 lakh shares
  Dlf dn 7.2%; adds 5.8 lakh shares
  RPL down 4.15%; add 18.5 lakh shares in OI
  Cairn India down 4%; add 10.6 lakh shares in OI
• Fresh Long:
  Shree Renuka up 7.5%; add 14.3 lakh shares in OI
  Bharti up 3.4%; add 5.2 lakh shares in OI
  HUL up 4.5%; add 4.2 lakh shares in OI
  PFC up 5.8%; add 3.8 lakh shares in OI
• Short Covering :
  Misc: ITC, Alok Text, Balrampur Chini

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