Mkts end sharply lower amid choppy trade; FMCG down 2.6%

Markets have not reacted to inflation numbers as a whole, which looked like markets factored in. Inflation for the week ended May 24 stood at 8.24% as against 8.10% in the earlier week, which is in line with market expectations of 8.25%. Wholesale Price Index (WPI) for all commodities was up 0.1% at 229.8, Non food articles went up by 0.5% at 231.5 and Imported Edible Oil up 6% for week ended May 24. Inflation for March 29 revised to 7.75% versus 7.41%.

The Sensex plunged 197.54 points or 1.25% to settle at 15,572.18 after hitting an intraday high of 15,970.70 and low of 15,526.50. The Nifty closed at 4627.80, down 49.15 points or 1.05% and touched a high/low of 4746.30 and 4614.25.

It was an disappointing close for whole week; Nifty and Sensex cracked 4.5% each. CNX Midcap was down 5.5% and BSE Small Cap down 5%. Amongst sectors, BSE Realty Index was worst hit, down 10% followed by metals and Cap Goods indices, which down 8% each. Top Nifty losers were BPCL (-16%), BHEL (-15%), Unitech (-12%), DLF (-12%) and Power Grid (-12%%) while Nifty gainers -ONGC up 8.5% and Sun Pharma up 2%.

Market breadth was negative, about 1235 shares have advanced, 1703 shares declined, and 175 shares remained unchanged.

Top losers were Wipro (-4.43%), ITC (-4.14%), Ranbaxy Labs (-3.47%), Hindalco (-3.46%) and DLF (-3.81%) while gainers like M&M (3.46%), Cairn India (8.61%), Suzlon Energy (3.97%) and Sterlite Ind (2.49%), Tata Motors (1.40%), Grasim (0.73%) and Infosys (0.66%).

FMCG Index was negative through the day and underperformed other indices, down 2.65% at 2,361.88 due to selling in ITC, United Spirits, Tata Tea, Marico, Colgate, United Breweries and HUL.

Weakness in Realty Index looked unstoppable, down 1.83% or 115.75 points at 6,210.30. DLF, leader in the real estate space, has closed below issue price, down 3.8% at Rs 518.40 while issue price was Rs 525. Downtrend seen in Phoenix Mills, Mahindra Life, Peninsula Land, HDIL, DLF, Parsvnath and Unitech.

Metal stocks like Hindalco, JSW Steel, Jindal Steel, SAIL, Tata Steel and NALCO closed in red. Index fell by 199.20 points or 1.27% at 15,515.39.

Healthcare Index lost 1.15% to settle at 4,296.01 as selling pressure seen in Ranbaxy Labs, Lupin, Sun Pharma, Divis Labs, Ipca Labs, Sun Pharma Adv, Dr Reddy's Labs and Cipla.

Banking stocks like IOB, Bank of Baroda, Allahabad Bank, Union Bank, Kotak Mahindra, SBI and ICICI Bank have finished lower. Bankex was down 1.12% at 7,266.28.

Telecom stocks also got under selling pressure like Spice Comm, Bharti Airtel, Tata Comm, Idea Cellular, Tata Teleservices and Reliance Comm down.

Capital Goods Index also slid, down 0.65% at 12,032.64 due to weakness in Thermax, Praj Industries, Rel Ind Infra, Punj Lloyd, Greaves Cotton, BHEL and L&T.
 
Oil and Gas Index fell 0.55% at 10,006.08 due to selling in HPCL, IOC, GAIL, Petronet LNG, ONGC, BPCL and Reliance. However, Cairn India remained outperformer. Nymex Crude was trading at USD 130 per barrel.

Technology stocks like Wipro, Tech Mahindra, TCS, Patni Computer and Satyam have pushed the IT Index lower by 0.41% at 4,598.59. However, losers were Mphasis, HCL Tech and Infosys.

Power also witnessed mixed trend though the Index lost 0.31% at 2,700.02. Reliance Infra, Reliance Power, Power Grid Corp, GVK Power, Torrent Power and NTPC have plunged while Suzlon Energy and Tata Power lost ground.

Most active counters on the bourses were Reliance, Reliance Capital and Cairn India.

BSE Midcap Index was down 0.78% at 6,350.15 and Small Cap Index fell 0.51% at 7,696.05. Amongst midcap space, Bombay Dyeing, Phoenix Mills, BF Utilities, Mahindra Life, Peninsula Land, India Infoline, MIC Electronics, Himadri Chem and Info Edge were down over 4% and in the small cap space Lumax Inds, Sujana Towers, ETC Networks, Ciba India, Deep Industries, Panchmahal Stee, Prajay Engineer, Nitco Tiles, XL Telecom, TCI Industries and Pioneer Invest down over 5%.

Turnover traded by the markets for the day stood at Rs 60694.13 crore, including Rs 12572.41 crore from NSE cash segment, Rs 42888.38 crore from NSE F&O and the balance Rs 5233.34 crore from BSE Cash segment.

On the global front, Asian markets closed higher barring Shanghai. Nikkei was up 1%, Hang Seng up 0.6% while Shanghai down 0.7%. European markets were trading flat at the time of writing market report.

GAP UP OPENING - SLIP IN THE LAST HOUR

• Markets opened gap up at 4725.40 and flip-flopped between 4660 and 4710 through the session. However the market slipped in the later part probably due to lack in conviction to carry trade over the week-end.
• Nifty closed down - 1.05 % losing 49.15 pts to end at 4627.18
• Sensex closed down - 1.25 % to end at about 15572 down 197.54 pts 
• Broader markets too witnessed selling in late trade
• Nifty Junior was down 1.31% (down 101.8 pts) ; while the CNX Midcap 100 lost 0.35% (- 21.75 pts)
• BSE Small Cap Index was down about 0.51% ( -39.54 pts)
• BSE Oil and Gas down 0.55% (- 55.75 pts)
• BSE Healthcare Index down 1.15% (-49.88 pts)
• BSE Metals Index lost 1.27% (- 199.80 pts)
• BSE FMCG Index down 2.65% (-64.28 pts)
• Gainers:
  SpiceJet gained smartly today, was up 14.49 %
  Cairn up (8.61%) had respectable gains by end of trade on the back of rise in crude oil price.
  Voltas gained 7.47%, HCC up 6.52%, Impex Ferro up 4.94%, Indiabulls Realty up 4.60%, Suzlon up 4.32%  
• Losers:
  ONGC ended its gaining streak to end with a 1.90% loss.
  GHCL (-11.3%), Neyveli Lignite (-7.65%), Piramal life Sciences (-7.63%), HPCL (-5.92%) all lost significantly
  The resilient Wipro (-4.44%), ITC (-4.07%), Mercator Lines (-4.20%) too lost. 
• NSE Advance Decline ratio at closing was 1 : 1.66
• Total cash turnover at Rs 17589 cr today
• Total F&O turnover at Rs 33425 cr Vs Rs 42656 cr on Thursday
• Total market turnover was at Rs 51015 cr Vs Rs 65134 cr on Thursday
• Global Shot
  Asian Indices ended mostly in the green, barring Shanghai and Kospi which were marginally in the red.
• Nikkei (1.03%), Thailand (0.95%), Hang Seng (0.61%), Taiwan (0.08%) ended on a positive note; Kospi (-0.08%), Shanghai (-0.66%), ended in the red.
• F&O Snapshot
  Short Covering of Yesterday dint last long, Nifty sees fresh short build up in latter half
  Nifty fut slips into discount of 20 points in intra day’s trade
  Real Estate & Bank Stock sees short build up continuing in today’s trade as well
  NSE F&O Turnover at 42888 cr lower than weekly average
  Nifty fut turnover at 13900 cr lower than weekly average
• Options:
  Nifty 4800 put sheds 10.8 lakh shares
  Nifty 4700 call adds 15.3 lakh shares
  Nifty 4500 put adds 8.2 lakh shares
• Star Trade:
  Cairn up 7.5%; adds 17.7 lakh shares       
• Fresh Short:
  Nifty dn 1.4%; adds 26.5 lakh shares
  ITC dn 3.2%; adds 13.5 lakh shares
  DLF dn 4.4%; 10.7 lakh shares
  Neyvli dn 8%; adds 5.5 lakh shares
  IDFC dn 4%; adds 3.8 lakh shares
• Long Unwinding:
  IFCI dn 3.1%; sheds 16.9 lakh shares
  Ispat dn 3.7%; sheds 13.7 lakh shares
  JP Associates dn 3%; sheds 6.8 lakh shares
  Chambal dn 3.7%; sheds 6.6 lakh shares
• Short Covering:
  Voltas up 6%; sheds 4.4 lakh shares
  HCC up 5.6%; sheds 3.3 lakh shares

Markets This Week

• Nifty, Sensex down 5%
• CNX Midcap down 5.6%, BSE Small Cap down 5.5%
• BSE Realty Index down 11.5%, Metals, Cap Goods Indices down 8%
• BPCL down 15%, BHEL down 14%, Unitech, Power Grid, DLF down 12%
• L&T, HDFC Bank, Ambuja Cem down 10%
• ONGC up 8.5%, Sun Pharma up 1.5%
• Lanco down 21%, Neyveli, Rel Power, Bombay Dyeing down 18%
• DCB down 15%, Punj Lloyd down 15%, IDFC down 14%

Contd on page 2...