Nifty closes below 5K led by realty, oil, metal, FMCG stks

The markets completely smashed out for the second straight session due to heavy selling pressure in realty, metal, oil & gas, FMCG, technology and banking stocks in the second half of session and ended last day of the week on a weaker note. The Nifty breached psychological level of 5000 and then 4950 as well in late trade but managed to close above 4950. The Sensex continued to trade below 17000 levels. Midcap and small cap stocks also hammered a lot. Market breadth was very weak.

Markets had opened on a positive note in the morning after yesterday's free fall, remained choppy in the middle of the day but heavy selling pressure across the sectors dragged the markets sharply lower and lower in late trade.

The Sensex closed the day at 16,649.64, down 1.52% or 257.47 points after hitting an intraday high of 17,054.34 and low of 16,626.11. The Nifty touched a high/low of 5059.05 and 4940.70 before finishing at 4946.55, down 78.9 points or 1.57%.

Inflation for the week ended May 10 was tad lower at 7.82% as against 7.83% in previous week. It was still above market estimated level of 7.78%. WPI for all commodities went up 0.2%.

Biggest losing counters were ITC, Tata Motors, JP Associates, L&T, Sterlite Industries, PNB and Cairn India. However, BPCL, Bharti Airtel, Suzlon Energy and HDFC were gainers.

The BSE Midcap slipped 1.59% at 6,937.11 and Small cap down 1.69% at 8,517.43. Amongst midcap space, MIC Electronics, Geojit Financial, Deccan Aviation, GVK Power, Nat Fert, Core Projects, Guj Ind Power and BF Utilities cracked over 5%. Small cap stocks like Tamilnadu Petro, Shree Digvijay, Cambridge Sol, Hatsun Agro, Dolphin Offshore, India Glycols, Apar Ind, Sunflag Iron and Pricol slipped over 6-9%.

Biggest underperformer of the day was Realty Index, which collapsed 2.38% to settle at 7,510.14 due to selling in Indiabulls Real, Parsvnath, Peninsula Land, Ansal Properties, HDIL, Omaxe, Unitech and DLF.

FMCG stocks like ITC, Dabur, United Breweries, Tata Tea, GlaxoSmith Cons crumpled . The BSE FMCG Index closed at 2,387.47, down 2.15%.

Oil stocks including Cairn India, RNRL, Essar Oil, ONGC, Reliance, Petronet LNG and GAIL remained under pressure. The BSE Oil & Gas Index fell 2.15% at 10,975.26.

BSE Metal Index lost 2.08% at 16,795.80 as metal stocks like Hind Zinc, Sterlite Ind, Ispat Industries, Jindal Saw, Hindalco, JindalStainless, Guj NRE Coke, Jindal Steel, SAIL and Tata Steel lost shine.

Technology shares like Aptech, i-Flex Solution, TCS, Infosys, Tech Mahindra, Wipro, Satyam and MphasiS also got crushed. The BSE IT Index tanked 1.75% at 4,340.98.

Bankex slipped 1.72% at 8,232.16 due to losing banking counters like PNB, Union Bank, Federal Bank, Axis Bank, IOB, SBI and Kotak Mahindra and ICICI Bank.

Auto stocks including TVS Motor, Tata Motors, Hind Motors, Escorts, Ashok Leyland, Maruti and MRF have lost the road, which dragged the index down by 1.39% at 4,619.90.

Selling was also seen capital goods stocks like  Kirloskar Bros, Astra Microwave, Rel Ind Infra, Praj Industries, Bharat Bijlee, L&T, Kalpataru Power, BEML and BHEL, due to which BSE Capital Goods Index ended at 13,192.42, down 1.12%.

BSE Power Index lost 0.93% at 3,202.79 as selling in GVK Power, GMR Infra, Torrent Power, Tata Power, Reliance Infra, Power Grid Corp and NTPC.

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

Total turnover witnessed by the markets stood at Rs 59391.99 crore including Rs 12705.65 crore from NSE Cash segment, Rs 41317.97 crore from NSE F&O and the balance Rs 5368.37 crore from BSE Cash segment.

On the weekly basis, the Sensex was down 4.5% and the Nifty down 4.1%. Major Nifty losers were PNB (-10%), SAIL (-7%), Reliance Comm and L&T down (-5%) each. BSE Bankex was the worst performer, down 7.8% led by Axis Bank (-11%), SBI (-7.5%) and ICICI Bank (-8%).

On the global front, Asian markets declined sharply barring Nikkei; Hang Seng down 1.3%, Taiwan Weighted down nearly 2%. European markets were trading weak, at the time of writing market report.

Markets Snapshot

• Markets end near day's low; Inflation at 7.82% Vs 7.83%
• Sensex ends down 258 pts at 16650; Nifty down 79 pts at 4946
• CNX Midcap Index down 1.35%, BSE Small-cap down 1.7%
• Realty, Metal & Oil & gas Indices down nearly 2%
• Oil & Gas: Cairn down 4.2%, ONGC down 2.8%, RIL down 2.6%
• Metal stocks: Sterlite down 5%, Hindalco down 2.3%
• Other Index losers; ITC down 4.4%, PNB down 4.3%, Tata Motors down 3.5%, TCS down 3%
• Index gainers; BPCL up 3.6%, Bharti up 2.5%, Suzlon up 2.2%, HDFC up 1.8%
• Midcap losers; Rel Cap,Bajaj Hind, India Cement down 5%, GVK Power, Lanco down 5.3%, Indiabulls Real down 4.8%
• Losers; Manali Petro down 8%, Tamil Nadu Petro down 9.3%
• Small-cap gainers; NEPC India up 20%, Tonira Pharma up 14.7%, Blue Bird up 11%, Graphite up 10.7%, Sita Shree up 8%
• NSE Advance Decline at 1:3
• Total market turnover at Rs 59391 cr; FNO turnover at Rs 41318 cr

F&O Snapshot

• Nifty short build up continues, Nifty rollover around 30%
• Short rollovers happeing in bank, cement & metal stocks
• Nifty futures discount widens to 15 pts; net add 50 lakh shares in OI (June + May)
• Nifty 5000 put shed 4 lakh shares
• Nifty 4800 put shed 4.5 lakh shares
• Nifty 5100 put shed 1.1 lakh shares in OI
• Nifty June 4500 put add 2.2 lakh shares in OI
• Put writers are unwinding positions and some of them are getting carried to June series

Strongest rollover

• Ultratech: 60%
• India Cem: 55%
• Hindalco: 41%
• HDFC bank: 30%
• SBI: 25%

Asia Today

• Most of Asian markets end in the red
• Most of Asian market end down 3-5% for the week
• CLSA on Japan: one market that benefits totally from an increasingly feared return of inflation remains Japan
• Taiwan down 2%, Jakarta down 1.5%, Hang Seng down 1.3%, Straits Times down 1.2%
• Kospi down nearly 0.5%; end in the red for a 5th consecutive session; down 3% for the week
• Shanghai mkts recover led by PetroChina on news of dividend

Market This Week

• Sensex down 4.5%; Nifty down 4.1%
• CNX Midcap Index down 3%; BSE Small Cap Index down 1.2%
• Nifty Losers PNB down 10%, SAIL down 7%, Rel Comm, L&T down 5% each
• Non-index Losers JP Assoc down 12%, HCC down 11%, BoI, Indiabulls Fin down 10% each
• Non-index Losers GMR Infra down 9%, IDFC, PFC, NTPC down 7% each
• BSE Bankex down 7.8%; Axis Bank down 11%, SBI down 7.5%, ICICI Bank down 8%
• BSE Realty Index down 6.5%; IBREL down 9%, HDIL down 7%, DLF down 6%
• BSE FMCG Index down 5%; BSE Cap Goods Index down 4%

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