Nifty ends below 4200 for 1st time since Aug 2007

Markets witnessed sharp sell off for fifth consecutive trading session on the back of heavy selling from foreign investors, especially European investors. It seemed like bears become uncontrollable for bulls. Sensex and Nifty have touched new 2008 lows; Nifty slipped below 4200 and the Sensex below 14000 mark, the crucial levels. Heavy sell off in European markets also fueled to further weakness in the markets. Midcap and small cap stocks also hammered a lot.

It was a mild bounce back in opening trade after heavy sell off in last few sessions but that could not sustain for long. Markets had turned choppy and in the second half of session, it caught again in bears' grip. Last hour of session was very critical for the markets; heavy sell off has seen across sectors.

Reliance Industries was the only stock, which tried to hold back in the green and being supportive for the whole markets but crack in other heavyweights have put more selling pressure. The stock has touched a high of 2133.70 (5.5% over previous close) before closing the day at Rs 2066.20, up 2.18%.

Both indices closed at new 2008 lows. The Nifty ended below 4,200 for the first time since August 24, 2007, even the Sensex breached psychological level of 14000 in the last five minutes of trade but managed to back above that level at close. The Nifty touched a low 4156.10 before ending at 4191.10, down 1.76% or 75.3 points. The Sensex finished at 14,106.58, down 186.74 points or 1.31% after hitting an intraday low 13,991.31.

Turnover traded by the markets stood at Rs 87406.31 crore, which has been improving since last few sessions. This includes Rs 11760.63 crore from NSE Cash segment, Rs 70250.13 crore from NSE F&O and the balance Rs 5395.55 crore from BSE Cash segment.

Market breadth was weak; about 783 shares have advanced while 2064 shares declined. Nearly 280 shares have unchanged.

Amongst frontliners, NALCO was down -9.09%, Sun Pharma -6.77%, Tata Power -6.25%, HUL -5.37%, Tata Steel -4.60%, NTPC -3.92% and ONGC -3.61% while Suzlon Energy gained 5.09%, BHEL 2.85%, Ranbaxy Labs 2.33%, HDFC 2.28% and Reliance Ind 2.18%.

Metal Index has underperformed other indices, down 3.52% or 487.51 at 13,368.82 due to heavy selling in NALCO, Sterlite Ind, Tata Steel, Jindal Steel, Hindalco and Sesa Goa.

FMCG stocks remained under selling pressure through the day, which includes Marico, HUL, Dabur India, ITC, Nestle and Colgate. Index fell 2.54% at 2,146.63.

BSE IT Index plunged 2.17% at 4,141.51 on the back of weakness in Infosys, Tech Mahindra, Mphasis, Wipro, HCL Tech, TCS and Satyam.

Auto stocks like Bajaj Auto, Hind Motors, Hero Honda, M&M, Ashok Leyland, Maruti Suzuki and Tata Motors lost the road. Index was down 2.06% at 3,842.77.

Banking stocks like Allahabad Bank, Kotak Mahindra, HDFC Bank, Axis Bank, Oriental Bank and ICICI Bank were also draggers for the markets. Bankex slid by 130.92 points or 1.97% at 6,499.66.

Realty Index crashed by 1.72% at 5,098.44, which led by selling in Orbit Corporation, Mahindra Life, HDIL, Omaxe, Indiabulls Real and DLF.

Power stocks like Tata Power, Reliance Power, NTPC, Power Grid Corp, GVK Power, Torrent Power, GMR Infra and Reliance Infra lost ground. Index fell 1.64% at 2,398.09.

Capital Goods Index was down 157.41 points or 1.46% at 10,639.60 due to sell off in Siemens, Rel Ind Infra, Bharat Elec, L&T, BEML, Bharat Bijlee and Thermax. However, buying has seen in Suzlon Energy, BHEL and Alstom Projects.

Pharma stocks also butchered, which includes Wockhardt, Sun Pharma, Piramal Health, Orchid Chemical, Matrix Lab and Lupin. Index plunged 1.29% at 4,165.61. On the other hand, Panacea Biotech, Ranbaxy Labs, Cadila Health, Dr Reddy's Labs and Dishman Pharma have gained.

Oil & Gas Index ended with just 0.28% at 9,146.43. Selling has seen in GAIL, RNRL, ONGC, Petronet LNG, Cairn India, Essar Oil, IOC, BPCL and HPCL. However, Reliance Industries gained.

Midcap Index fell 1.76% or 102.49 points at 5,712.74 and the Small Cap Index down by 129.88 points or 1.82% at 7,006.42. Amongst midcap stocks, Educomp Sol, Spice Comm, Welspun Guj, Wockhardt, Phoenix Mills, Bajaj Holdings, Adhunik Metalik and BGR Energy slipped over 7%.

In the small cap segment, Simplex Project, Bliss GVS, Radico Khaitan, C and C Const, Surana Ind, Andhra Cemen, EIH Assoc Hotel, Mukta Arts and Kirloskar Pneum lost over 9%.

Most active counters on the bourses were Reliance Ind, Reliance Communication, L&T, Reliance Infrastructure, Reliance Petroleum and BHEL.

On the global front, Asian markets ended mixed. Shanghai was up 1.54%, Jakarta 0.11% while Taiwan Weighted fell -1.76%, Kospi -0.3%, Hang Seng -1.14% and Nikkei -0.06%. European markets crashed.

Markets Snapshot

• Markets slide during the mid of the day on European jitters; US Fed decision announcement tomorrow
• Sensex ends down 187 pts at 14106.58; slips below 14,000 for the 1st time since Aug 21, 2007 during the day
• Nifty ends down 75.3 pts at 4191; closes below 4,200 for 1st time since Aug 24, 2007
• CNX Midcap Index down 1.65%, BSE Small-cap Index down 1.8%
• All BSE sectoral indices end in the red
• BSE Metal Index down 3.5%; Nalco down 9%, Sterlite down 5.2%, Tata Steel down 4.65%
• BSE FMCG Index down 2.5%; HUL down 5.4%, ITC down 2%
• Index losers; Sun Pharma down 6.7%, Tata Power down 6.25%, Siemens down 5.3%, L&T down 4%
• Biggest Losers; ONGC down 3.5%, NTPC down 4%, Infy down 2.8%
• Siemens, L&T, Tata Comm, HDFC Bank, MUL, M&M hit news 2008 lows
• Re-listing: Rane Engine closes at Rs 146 Vs re-listing price at Rs 275
• Losers; Radico Khaitan down 12.6%, C&C Cons down 10.7%, Adani Ent down 9.8%, Educomp down 9.4%, Welspun Guj, Wockhardt down 8%
• NSE Advance Decline at 1:3
• Total market turnover at Rs  87406 cr Vs Rs 83165 cr on Monday
• F&O turnover at Rs 70250 cr Vs Rs 66917 cr on Monday

F&O Snapshot

• Nifty Rollover at 39%; Market wide rollover at 38%
• Nifty Futures sees fresh short build up in today’s trade
• Nifty July discount widens to 50 point in intraday trade
• Options:
  Nifty 4100 put adds 9.1 lakh shares
  Nifty 4200 put adds 2 lakh shares
  Nifty 4300 call adds 2.9 lakh shares
  Nifty 4500 call adds 1.7 lakh shares
• Star Trade:
  Nalco dn 11.3%; adds 9.1 lakh shares in July series
• Fresh Shorts :
  WWIL dn 8.7%; adds 10.8 lakh shares in July series
  Welspun Guj dn 8.7%; adds 8.7 lakh shares in July series
  HUL dn 7.8%; adds 16.4 lakh shares in July series
  R Power dn 7%; adds 13.4 lakh shares in July series
  Tata Steel dn 6.7%; adds 12 lakh shares in July series
  NTPC dn 6.5%; adds 35 lakh shares in July series
• Roll Overs
  India cement 63%
  Bank of Baroda 63%
  Bank of India 55%
  Hindalco 54%
  PNB 53%
  Grasim 53%
  Hdfc Bank 51%
  Unitech 49%
  SBI 49%

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