It was a disappointing session for the markets though recoverd a bit from day's low. Huge profit booking seen in realty, banking, pharma and oil stocks barring some metal, auto and technology stocks. The Sensex recovered nearly 94 points and the Nifty 33 points from day's low. Weak cues from Asian and European markets added to negative sentiments. Market breadth were negative. Small cap stocks escaped from weakness while midcaps were under selling pressure.

The Sensex touched an intraday high of 17,367.13 and low of 17,136.26 before closing the day at 17,230.18, down 1.17% or 204.76. The Nifty fell 52.75 points or 1.02% to settle at 5104.95; touched a high/low of 5160.05 and 5072.40, respectively. The CNX Midcap closed at 6903.55 down 0.71%. However, the BSE Small cap 8658.61, up 0.44%.

Market breadth was negative; about 1523 shares have advanced, 1399 shares declined, and 176 shares remained unchanged.

Biggest losers were Jaiprakash Associates (-5.22%), Reliance Infra (-4.53%), BHEL (-3.28%), SBI (-2.85%) and ABB (-3.13%) while Cairn India (8.71%), Sterlite Ind (4.67%), Suzlon Energy (3.41%), Tata Power (2.87%), Satyam (1.32%), Tata Motors (1.28%), Infosys (0.86%) and Tata Steel (0.42%) gainers.

Banking stocks like Bank of India, Axis Bank, SBI, Centurion Bank, HDFC Bank, Yes Bank, Union Bank and ICICI Bank were the major culprits. The BSE Bankex lost 1.98% or 177.43 points at 8,763.85.

Realty stocks have collapsed like a pack of card, including Phoenix Mills, Mahindra Life, Unitech, Indiabulls Real, Anant Raj Ind, DLF and Peninsula Land. The BSE Realty slid 1.87% or 150.15 points at 7,894.10.

There was sour pills from pharma side. The Pharma Index was down 1.19% at 4,269.84 led by Matrix Lab, Sterling Bio, Glenmark, Divis Labs, Sun Pharma, Lupin, Cipla, Nicholas Pirama and Dr Reddy's Labs.

Oil & Gas Index fell 1.06% at 11,169.61 due to selling in Essar Oil, HPCL, GAIL, BPCL, ONGC, IOC, Reliance and Petronet LNG. The Nymex Crude was trading at USD 126.62 a barrel, at the time of writing market report. However, Cairn India shot up nearly 10%, to close at Rs 327.85.

Selling pressure also weighed on Capital goods stocks like BHEL, ABB, Astra Microwave, Praj Industries, Rel Ind Infra and Areva T&D. Capital Goods Index closed at 13,563.48, down 0.97%.

FMCG stocks including Nestle, Tata Tea, Godrej Consumer, GlaxoSmith Cons, Dabur India, HUL and ITC have tumbled. FMCG Index lost 0.93% at 2,484.94.

Power stocks like Reliance Infra, GVK Power, NTPC, Torrent Power and Power Grid Corp have lost ground. Power Index fell 0.83% at 3,304.79. However, Tata Power charged up by 2.73% at Rs 1490.90.

However, metal stocks were outperformer. The BSE Metal Index shot up 0.70% at 17,176.97 due to buying in Sterlite Ind, JSW Steel, Jindal Saw, Jindal Steel, Mah Seamless and Tata Steel.

Cairn India, Mundra Port, HDIL and ICICI Bank were most active counters on the bourses.

Total turnover for the day stood at Rs 52860.64 crore including Rs 13647.59 crore from NSE Cash segment, Rs 33290.93 crore from NSE F&O and Rs 5922.12 crore from BSE Cash segment.

On the global front, Asian markets crashed barring Jakarta, Shanghai down 4.5%, Hang Seng and Taiwan slipped over 2.2%. European markets were trading lower at the time of writing market report.

Markets Snapshot

• Markets recover from day's low, however profit booking seen at higher levels
• Sensex ends down 205 pts at 17230.2; recovers nearly 100 pts from day's low
• Nifty ends down 53 pts at 5105; recovers nearly 30 pts from day's low
• CNX Midcap Index down 0.7%, BSE Small-cap Index outperforms all indices, ends up 0.44%
• Interest rate sensitive sectors like Bank & Realty witness selling pressure
• BSE Bank Index down 2.4%; SBI down 3.14%, HDFC Bank down 2.6%
• BSE Realty Index down 1.9%, Unitech down 2.9%, DLF down 2%
• Index losers; Rel Infra down 4.8%, BHEL down 3.5%, ABB down 3.1%, Bharti down 2.7%
• Index gainers; Cairn India up 8.5% ((UBS upgrades to Buy from Sell and price target to Rs374 (from Rs246))
• Sterlite Ind up 4.7%, Suzlon up 3.4%, May Sell Some Stake In REpower
• Buzzers; Mundra Port up 14%, Videocon Ind up 16.5%, Adlabs up 6.6%, S Kumars up 5.4%, Sasken up 8%, Graphite India up 15.2%
• Buzzers; Videocon Appliance, Tamilandu Petro, Hilton Metal up 20% each
• NSE Advance Decline at 5:6
• Total market turnover at Rs 52860 cr Vs Rs 57402 cr on Friday
• Total NSE F&O turnover at Rs 33290 cr Vs Rs 37877 cr on Friday

F&O Snapshot

• F&O action muted; very stock specific
• Nifty seen short buildup; trades at a 10-15 point discount; Adds 34 lakh shares in Mar series
• Turnover lower than last weeks average
• Nifty 5100, 5200 Call adds over 1 lakh shares each
• Nifty 5000, 4800 put sees unwinding of open interest
• Long positions seen in Cairn, Suzlon, R Power, JSW Steel, SRF
• Fresh shorts seen in NTPC, SAIL, Unitech, JP Associates, PFC, DLF
• Unwiding of long positions seen in momentum stcoks like Chambal Fert, Nag Fert, IFCI, GMR Infra, Alok, RNRL, Arvind MIlls

Long Positions

• Cairn India up 7.7%; add 24 lakh shares in OI
• Suzlon up 3.7%; add 17.5 lakh shares in OI
• R Power up 4.3%; add 8.7 lakh shares in OI
• HDIL up 4.2%; add 8.6 lakh shares in OI

Unwinding of long positions

• Chambal Fert down 2.6%; shed 13.8 lakh shares in OI
• GMR Infra down 1.3%; shed 9.15 lakh shares in OI
• Nag fert down 2%; shed 8.7 lakh shares in OI
• RNRL down 2%; shed 4.6 lakh shares in OI

Asia Today

• Asian markets end lower on inflation fears
• Some profit booing seen after 6-days of consecutive gain in most of the Asian mkts
• Shanghai down 4.5% on worris of inflation exceeding expectations in May and possibly in June
• Taiwan down 2.4%, Hang Seng down 2.3%, Straits Times down 1.3%
• Nikkei down 0.8%; property stocks downgraded by Credit Suisse
• Bank of Japan left interest rates unchanged at 0.5%

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