Mkts ends in deep red; Bank, Realty down 5%

Markets have shattered completely ahead of inflation numbers, which are likely to inch up higher. CNBC-TV18 poll suggests that it may be at 12.62% for the week ended August 9 as against 12.44% in earlier week. Rate sensitives and infrastructure stocks slaughtered very badly. Oil & gas, technology and metal also got hammered. Sell off in European and Asian markets fueled to negative sentiments as well.

Only one stock in Sensex 30 and three stocks in Nifty Fifty ended in green. The Sensex closed at 14,243.73, down 434.50 points or 2.96% after hitting an intraday low of 14,201.18. Nifty ended with a loss of 131.9 points or 2.99% at 4283.85. It has hit a low of 4271.30.

BSE Midcap Index was down by 118.91 points or 2.04% at 5,707.46 and Small Cap Index ended at 6,937.02, down 129.21 points or 1.83%.

On the F&O front, short build up has witnessed since the start of trade; aggressive short build up in interest rate sensitives. Nifty Futures slipped into Discount in the latter half of the session and ended with 9 point discount against 21 point premium yesterday. Nifty September Futures ended with a 16 points discount. New F&O additions witnessed selling pressure in cash markets.

Dealers feel that there was selling in Nifty futures to hedge ahead of inflation numbers and also a buzz that two large long-only funds have sold today.

Amongst frontliners, SBI crashed 7.10%, HDFC Bank -5.82%, NTPC -5.68%, DLF -5.55% and Reliance Infra -5.45%. However, Cairn India and Ranbaxy Labs gained 1.8% and 1.7%, respectively.

Major contributors to this free fall are SBI, Reliance Ind, ONGC, DLF, ICICI Bank, Reliance Comm, BHEL, HDFC, HDFC Bank and Bharti Airtel.

Banking, realty and infrastructure stocks smashed out on fears that if inflation rises further then another rate hike by RBI is possible in near term.

Realty stocks collapsed like a pack of card. This includes Indiabulls Real, DLF, Unitech, Peninsula Land and Sobha Developer tumbled 5-7%. Index fell 262.99 points or 5.05% at 4,944.82.

Power stocks like NTPC, Reliance Infra, GVK Power, Suzlon Energy, Torrent Power, Reliance Power and GMR Infra slipped 3-6%. Index closed with a loss of 86.87 points or 3.27% at 2,573.27.

Capital Goods Index lost 361.79 points or 2.95% at 11,907.73 due to selling in Punj Lloyd, BHEL, Elecon Eng, L&T and Praj Industries, which slid 3-6%.

Metal stocks like Ispat Industries, NALCO, Sesa Goa, Bhushan, Hindalco, Tata Steel and SAIL also ended in red, down 2-5.7%. Index plunged 2.47% or 308.74 points at 12,166.91.

In the telecom space, Tata Comm, Reliance Comm, TataTeleservice, MTNL, Idea Cellular and Bharti Airtel fell 2-4.5%.

IT Index crashed 2.07% at 3,822.46 as selling was seen in HCL Tech, Wipro, TCS, Financial Tech, Infosys, Patni Computer and Tech Mahindra.

Oil stocks like HPCL, IOC, RNRL, BPCL, Essar Oil, ONGC and Reliance Ind also got hammered. Oil & Gas index plunged 194.35 points or 1.94% at 9,838.12. Crude increased over USD 117 a barrel on the NYMEX.

Healthcare Index lost 1.51% at 4,271.14 due to sell off in Sun Pharma, Bilcare, Divis Labs, Glenmark, Opto Circuits, Sun Pharma Adv, Piramal Health and Wockhardt, which fell 2.5-3.6%

Auto Index skid 1.51% at 3,800.18 on the back of weakness in Exide Industries, Cummins, MRF, Bharat Forge, M&M, Ashok Leyland, Tata Motors, and Maruti Suzuki.

FMCG stocks like Dabur India, HUL, Tata Tea, United Brewerie, Marico and ITC have lost ground. Index fell 0.99% at 2,140.30.

Fertilizer stocks have corrected on profit booking. Nagarjuna Fert fell 4.1%, Chambal Fert -4.1%, National Fert -4.7%, Madras Fertilizer -4.5% and RCF -3.7%.

Amongst midcap stocks, HEG, GTL Infra, India Infoline, Deccan Aviation, Rel Ind Infra, STC India, EID Parry and SREI Infra tumbled 6-11.7%.

In the small cap space, Noida Toll, Simplex Project, Modern India, PVP Ventures, Jay BharatMarut, Piramal Life, Subex and Walchandnagar plunged 7-11%.

Reliance Industries, SBI, L&T, Tata Steel and ICICI Bank were most active shares on the bourses.

Market breadth was very weak; about 816 shares have advanced while 2013 shares declined. Nearly 336 shares remained unchanged.

Turnover traded in markets was better than yesterday, which stood at Rs 64,691.60 crore. This includes Rs 8,566.12 crore from NSE Cash segment, Rs 52,004.60 crore from NSE F&O and balance Rs 4,120.88 crore from BSE Cash segment.

On the global front, Asian markets ended on a weak note. Shanghai fell 3.63%, Hang Seng -2.46%, Nikkei -0.77%, Straits Times -1.49%, Kospi -1.83% and Taiwan Weighted -1.74%. However, Jakarta Composite gained 0.78%.

European markets were trading sharply lower, at the time of writing market report. FTSE was down 0.7%, DAX -0.88% and CAC -1.34%.

Market Snapshot

• Heavy selling across the board see indices plunge sharply; Rate sensitives bear the brunt on expectations of higher inflation
• Rising crude, weak global cues add to the negative sentiment
• Sensex down 434 pts at 14244; Nifty down 132 pts at 4284;
• CNX Midcap down 2.2%, BSE Small-Cap Index down 1.8%, Nifty Junior down 2.9%
• BSE Bank Index down 5.2%; SBI down 7%, HDFC Bank down 5.8%, ICICI Bank down 5.2%,Kotak Mah Bank 4.5% PNB down 4%
• BSE Realty Index down 5.1%; Indiabulls Real down 7%, Kolte Patil down 5.7%, DLF down 5.6%, Unitech down 5.3%, HDIL down 3.4%
• BSE Cap Goods Index down 3%; Punj Llyod down 5.9%, BHEL down 3.7%, L&T down 3.2%, Praj down 3.1%, Siemens down 1.5%
• BSE Metals Index down 2.5%; Ispat down 5.7%, Nalco down 5.3%, Sesa Goa down 5%, Hindalco down 3.9%, Tata Steel down 3%, SAIL down 2.7%
• Fertilizer Stocks correct on profit booking: Nagarjuna down 4.1%, Chambal down 4.1%, NFL down 4.7%, Madras Fertilizer down 4.5%, RCF down 3.7%,
• Nifty Losers: NTPC down 5.7%, Rel Infra down 5.4%, BPCL down 5.2%, HDFC down 4.7%, Tata Comm down 4.6%, Suzlon down 4.5%
• Nifty Losers: Sun Pharma down 4.1%, RComm down 4%, Grasim down 3.1%, ACC down 3.1%
• Non Index Losers: HEG down 12%, Noida Toll down 12%, GTL Infra down 8.4%, Subex down 7.2%, India Infoline down 7%, Century down 6.8%
• Nifty Gainers: Cairn India up 1.8%, Ranbaxy up 1.7%, ABB up 0.13%
• Bucking the Trend: ILFS Investment up 12.2%, Shanti Gears up 10.4%, EIH up 7.4%, Everest Kanto up 4.4%, Akruti City 3.8%
• NSE Advance Decline at 1 : 5    
• Total Market Turnover at Rs 64,692cr Vs Rs 52,000cr

F&O Snapshot

• Short Build up witnessed since the start of trade; Aggressive short build up in interest rate sensitives
• Nifty Futures dip into Discount in the latter half of the session; ends with 9 point discount against 21 point premium yesterday
• Nifty Sept Futures end with a 16 pt discount
• Momemtum stocks see unwinding in today’s trade
• Fertilizer stocks see long unwinding
• Fresh Shorts seen in index heavy weights
• New F&O additions witness selling pressure in cash markets
• Turnover picks up in todays trade: NSE F&O turnover at Rs 52004.60 cr Vs 38567.7 cr
• Hugh Unwinding in 4400 call options, call writing continues in 4400 & 4500 call options
• Options Activity
  Nifty 4400 call option adds 9.8 lakh shares
  Nifty 4600 sept call adds 1.2 lakh shares
  Nifty 4200 sept put adds 1 lakh shares
  Nifty 4400 put sheds 7.3 lakh shares
• Fresh Shorts / Short Rollovers
  Banks: SBI , ICICI Bank , HDFC Bank
  Real Estate: Unitech, DLF
  Misc: Punj Lloyd , Reliance Capital , NTPC 
• Fresh Longs
  Cairn India 
• Long Unwinding
  Fert: Chambal Fert, Naga Fert
  Momemtum: Ispat, Reliance Natural, IFCI, JP Hydro

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