Mkts end at day's low; Nifty below 5K; Oil Index down 2.6%

It was completely disappointing day for the markets, which lost its positive momentum in late trade and ended at day's low due to oil stocks, which were the main draggers at the end of the day followed by technology, telecom, capital goods and auto stocks. The Sensex ended down 380 points and Nifty 120 points from day's high, which closed below 5000 mark. European markets were trading sharply lower at the time of writing market report, which added to the negative sentiment.

Oil stocks were culprits for today's weak market, the BSE Oil & Gas Index dropped 2.56% or 286.32 points to settle at 10,907.37. Cairn India slipped nearly 9%; Essar Oil, ONGC, Petronet LNG and Reliance down 2-4%. GAIL, BPCL and RNRL down over 1%. These stocks responded to the news from Oil Ministry desk. Oil Ministry said that Finance Minister is not okay with sharing 57% of oil companies revenue loss. Government is not looking at hiking auto fuel prices now, they said.

FM is planning to decide on oil bond quantum soon and not seeking SLR status for bonds to oil companies. They have discussed possibility of marginal price hike but no decision yet, they said.

The Sensex touched an intraday high of 17,085.63 and low of 16,697.47 before closing the day at 16,752.86 down 108.64 points or 0.64%. The Nifty ended at 4957.80, down 1.09% or 54.85 points; hit high/low of 5066 and 4943.75.

The BSE Midcap was up 0.16 points at 6,956.81 while the Small Cap down 0.07% at 8,397.71. Market breadth was mixed; about 1485 shares have advanced, 1422 shares declined, and 180 shares remained unchanged.

Top losing counters were ONGC, Wipro, ACC, TCS, Cairn India, PNB and Sterlite Industries while gainers - Nalco, Hindalco, Reliance Infra and JP Associates.

Technology stocks like Financial Tech, Wipro, TCS, Tech Mahindra and Infosys also fell, the BSE IT Index closed at 4,265.14, down 0.76%. The Indian Rupee was trading at 42.09 per dollar.

Capital goods stocks witnessed some selling pressure as well. Astra Microwave, Kirloskar Oil, Carborundum, Triveni Engg, Praj Industries, Thermax, Crompton Greaves, ABB, L&T and BHEL were down. The BSE Capital Goods Index fell 0.46% at 13,060.97.

Auto stocks also lost the road. The BSE Auto Index ended at 4,669.95, down 0.39% due to selling in Cummins, Bharat Forge, Escorts, Ashok Leyland, Bosch and Tata Motors.

Telecom stocks like Bharti Airtel, Reliance Comm, MTNL, Tata Teleservices and Idea Cellular have closed in red.

However, metal stocks finished higher though given up some early trade gains as buying seen in NALCO, JSW Steel, Guj NRE Coke, Hindalco, Jindal Steel and Tata Steel. The BSE Metal Index was up 0.64% at 15,747.88.

The BSE FMCG Index rose 0.57% at 2,500.33 due to support from Tata Tea, P and G, Nestle, ITC, Marico and GlaxoSmith Cons.

Bankex also ended with modest gain of 0.43% at 8,601.84. Karnataka Bank, IOB, Allahabad Bank, Bank of Baroda, ICICI Bank and HDFC Bank moved up.

Most active shares were Reliance, Cairn India, Bharti Airtel, Aishwarya Telecom and Reliance Petro.
 
The total market turnover for the day stood at Rs 58431.75 crore including Rs 14255.95 crore from NSE cash segment, Rs 38107.72 crore from NSE F&O and Rs 6068.08 crore from BSE cash segment. 

Markets Snapshot

• Markets end near day's low amid political noise through out the day
• Oil stocks under pressure after profit booking in upstream cos and markeing/ refining cos hit on FM comment
• FM not okay with sharing 57% of oil cos revenue loss; not looking at hiking auto fuel prices now
• Sensex ends down 108 pts at 16753; slips 332 pts from day's high
• Nifty ends down 55 pts at 4956; slips 110 pts from day's high
• CNX MIdcap, BSE Small-cap ends flat
• Oil & Gas Index down 2.5%; Cairn India down 8%, ONGC down 2.8%, BPCL down 2.4%, RIL down 2%
• Metal stocks gain; Nalco up 6.5%, Hindalco up 2.9%, Tata Steel up 1%
• Steel Secretary working on Cabinet proposal to mitigate export duty impact: Sources
• MphasiS up 10% on back of expectations of open offer from HP
• Buzzers; Rane Holding up 20%, LG Bros up 12%, Orchid Chem up 7.7%, Gwalior Chem up 5.4%
• Losers; HOEC down 4.8%, Oswal Chem down 4%, Essar Oil down 3.9%, GMR Infra down 3.6%
• NSE Advance Decline ratio at 1:1
• Total market turnover at Rs 58431 cr Vs Rs  60102 cr on Monday
• Total NSE F&O turnover at Rs 38108 cr Vs Rs 41000 cr on Monday

F&O Snapshot

• Nifty futures ends at 7 pts discount after trading in premium for last 5-6 days
• Nifty futures add 27.5 lakh shares in OI
• Put writing witness at 4800, 4900 level
• Unwinding of long positions seen in momentums stocks
• Short covering seen in Orchid, BILT

Fresh Shorts

• Cairn India down 8.4%; add 12.5 lakh shares in OI
• GMR Infra down 3.8%; add 9 lakh shares in OI
• PFC down 3.7%; add 4.8 lakh shares in OI
• DLF down 1.3%; add 4 lakh shares in OI
• Bharti down 2.3%; add 3.7 lakh shares in OI
• ONGC down 2.5%; add 2.8 lakh shares in OI

Unwinding of long positons

• Ispat down 2.5%; shed 13.5 lakh shares in OI
• Nag Fert down 4%; shed 13.4 lakh shares in OI
• RPL down 3.2%; shed 12.2 lakh shares in OI
• RNRL down 2%; shed 10.4 lakh shares in OI
• Chambal Fert down 4%; shed 5.5 lakh shares in OI

Asia Today

• Shanghai recovers after opening 3% down; hit by earthquake & increase in CRR by 0.5%
• Investors cautious ahead of speech from Federal Reserve Chairman Ben Bernanke
• China's stock exchange suspended trading of 66 cos
• UK Inflation jumped the most since 2002 to the highest in more than a year; at 3% Vs 2.5% (YoY)
• Societe Generale results below market expected

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