Mkts end lower; IT, telecom, FMCG, oil refinery stks tank

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Markets ended on a weaker note due to selling pressure in oil refinery, technology, telecom, private banking, realty, FMCG, select power and auto stocks. Sharp cut in European and Asian markets due to renewed financial crisis also added to negative sentiments. News of withdrawal of support by Left parties to UPA government has not played any key role in markets in today's trade. However, buying in capital goods and select power stocks have tried to pull back markets a bit in afternoon session on back of possibility of nuke deal but it did not help to the markets.

Heavyweights like Reliance Industries, Infosys, ITC, ICICI Bank, HDFC, Wipro, ONGC and Bharti Airtel were draggers of indices while L&T, SBI, NTPC, BHEL, M&M and Power Grid supporters.

Ultimately, Left parties have withdrawan their support to UPA government and will meet president tomorrow on the same subject. Their withdrawal is because the government is going ahead with nuclear deal and will be meeting IAEA. But Samajwadi Party (SP) is ready to support Nuke deal and there is strong possibility that Congress will get vote of confidence with support from SP and RLD.

The Sensex recovered nearly 300 points and Nifty 92 points from day's low of 13,049.96 and 3896.05, respectively. Sensex ended with a loss of 176.34 points or 1.3% at 13,349.65 and Nifty closed at 3988.55, down 41.45 points or 1.03%.

In the F&O segment, Additional short has built up in Nifty futures, which added 27.9 lakh shares in Open Interest. Discount remained at nearly 50 points in today's trade. IT stocks like Infosys and Satyam seen fresh short build up. Sugar Stocks like Renuka Sugar, Bajaj Hindustan and Balrampur Chini witnessed continuation of short build up.

Oil refinery stocks like Reliance Industries, ONGC, Cairn India and Essar Oil have plunged further. Some impact of news of windfall cess on private oil companies has seen today as well. However, oil marketing companies like IOC, HPCL and BPCL have gained due to fall in crude; Crude August Futures went down nearly by $5 at $141 per barrel on the NYMEX. Oil & Gas Index fell 1.56% or 138.78 points at 8,743.36. Reliance Industries was down by 2.5% and closed below 2,000 for the first time since August 2007.

BSE Cap Goods Index recovered nearly 5% from day's low and gained 145.72 points or 1.36% at 10,854.14 as these stocks are going to benefit a lot from Indo-US nuke deal. Capital goods stocks like Alstom Projects, Areva T&D, Bharat Elec, Bharat Bijlee, BHEL, ABB and L&T rose 1.5-7%.

Amongst frontliners, Tata Power was down 5.03%, Wipro -4.98%, NALCO -4.02%, Tata Motors -3.80%, Infosys -3.62% and ITC -3.24% while ACC rose 6.21%, BPCL 5.56%, M&M 3.92%, NTPC 3.60% and SBI 2.79%.

Market breadth was negative; about 1284 shares have advanced while 1598 shares declined. Nearly 256 shares remained unchanged.

IT Index has underperformed other indices, fell 3.11% or 129.77 points at 4,045.95. Wipro, Infosys, Aptech, HCL Tech, Satyam, TCS and Tech Mahindra were down 2-4.6%.

In the telecom space, Idea Cellular, Bharti Airtel, TataTeleservices and Reliance Comm fell 1-3%.

FMCG stocks like ITC, Marico, Ruchi Soya, United Spirits, Tata Tea, United Breweries and Colgate plunged 2-3%. Index was down 2.02% at 1,952.33.

Realty Index slid 0.85% at 4,620.98 due to selling in Akruti City, Orbit Corporation, Unitech, Phoenix Mills, Mahindra Life, Sobha Developer and Omaxe, which declined 2-4.4%.

Pharma stocks like Piramal Health, Dishman Pharma, Cadila Health, Ranbaxy Labs, Sterling Bio, Sun Pharma, Glenmark, Divis Labs, Pfizer, Novartis India and Cipla lost ground. Healthcare Index went down 0.44% at 4,090.38.

Auto Index fell 0.3% at 3,498.38 as selling seen in Exide Industries, Tata Motors, Cummins, Hind Motors, Amtek Auto and Maruti Suzuki.

Power stocks like NTPC, Torrent Power, Power Grid Corp, Neyveli Lignite, Suzlon Energy and Reliance Power have gained. Index was up 0.43% at 2,330.34. However, Tata Power, Reliance Infra, GMR Infra and GVK Power lost ground.

Most active counters on the bourses were Reliance Industries, Reliance Infra, L&T, Reliance Comm and Reliance Petro.

Midcap and Small Cap indices were down 0.45% each at 5,315.99 and 6,562.62, respectively. Amongst midcap stocks, Dalmia Cement, Shree Renuka, Patel Engg, STC India, SREI Infra, Moser Baer, Bajaj Hind, Info Edge and Rei Agro crashed 5-7%.

In the small cap space, Grabal Alok Imp, Dhanus Tech, Logix Micro, CenturyPlyboard, Temptation Food, Swaraj Mazda, Empire Ind, Prajay Engineer and Parsoli CapandF fell 8-14%.

Turnover traded by markets stood at Rs 56,816.53 crore. This includes Rs 11,066.01 crore from NSE Cash segment, Rs 41,117.91 crore from NSE F&O and the balance Rs 4,632.61 crore from BSE Cash segment.

Asian and European markets have collapsed like a pack of cards on account of renewed credit concerns in US and UK. In the Asia; Nikkei fell 2.45%, Hang Seng -3.16%, Taiwan Weighted -3.94%, Kospi -2.93%, Straits Times -1.62% and Jakarta Composite -1.08%. However, Shanghai gained 0.81%.

Amongst European markets, FTSE 100 plunged 2.27%, CAC -2.31% and DAX -2.28%, at the time of writing market report.

Market Snapshot

• Markets remain volatile as Left withdraws support; recover from the day's lows
• Political fallout on expected lines; markets react with a positive bias to developments
• Sensex down 176 pts at 13350; recovers 300 pts from the day's low
• Nifty down 42 pts at 3989; recovers 90 pts from the day's lows
• CNX Midcap ends flat; BSE Small Cap Index down 0.5%
• Reliance Industries down 2.5%; closes below 2000 for the first time since Aug 2007 
• BSE Cap Goods Index recovers nearly 5% from days low on hope of nuclear deal going through
• BEL up 4.6%; BHEL up 2.1%; ABB up 1.8%; L&T up 1.5%
• Nuclear deal benificiaries: Alstom Projects up 7.5%, Rolta up  5.8%, Areva T&D up 5.5%
• SBI recovers nearly 10% from days low as the co seeks RBI nod to mark-to-mkt only 25% of Rs 9996 cr of govt bonds: Sources
• BSE IT Index down 3.1%; Wipro down 5%; Infosys down 3.5%; Satyam down 2.9%; TCS down 2.6%
• BSE Oil and Gas index down 1.6%; Relaince down 2.4% ONGC down 1.7%
• OMC's gain; HPCL up 5.8%; BPCL up 5.6%; IOC up 1%
• NSE Advance Decline at 1 : 1.5
• Total F&O turnover at Rs 41112 cr Vs Rs 44635 cr  
• Total market turnover at Rs 56817 cr Vs Rs 61829 cr yesterday

F&O Snapshot

• Nifty fut sees additional short build up; adds 27.9 lakh shares
• Discount remains at nearly 50 points in today's trade
• IT stocks like Infy & Satyam sees fresh short build up
• Sugar Stocks like Renuka Sug, Bajaj Hind & Balrampur Chini sees continuation of short build up
• NSE f&o volumes on lower side; turnover at Rs 41117.91cr vs 44634.29 on yesterday
• Options Activity:
  Nifty 3700 put adds 3.3 lakh shares
  Nifty 4300 call sheds 3.8 lakh shares
  Nifty 4100 put sheds 2.6 lakh shares
• Star Trade:
  Rolta up 6%; adds 1.1 lakh shares
• Fresh Short:
  Renuka dn 6.1%; adds 10.1 lakh shares
  Wipro dn 5.7 %; adds 4.2 lakh shares
  Infosys  dn 3.4%; adds 4 lakh shares
  ITC dn 3%; adds 13.8 lakh shares
• Fresh Longs:
  JP hydro up 3.9%; adds 12.1 lakh shares
  Chambal fert up 4.4%; adds 7.6 lakh shares
  RNRL up 3.4%; adds 20.4 lakh shares
  SBI up 3.4%; adds 5.3 lakh shares

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