Mkts end lower; Sensex tests 8000 but sees V-shape recovery

Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ See Key Market Stats - Top Gainers/ Losers, Most Actives, Highs/Lows See how Global Markets are trading Indian ADRs Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

Every single morning we come across the flashes like - Asian markets crashed; US markets plunge; rupee and crude touching all-time lows and SGX Nifty deep in red. It has been a similar pattern for trading sessions in October. The Sensex has fallen from 13,202 to sub-8000 levels in October. The trend continued today with the Sensex losing another 10% till afternoon.

However, a smart pullback helped the benchmark index recoup its losses in the later half of the day. The market saw a V-shape recovery on the back of short covering and buying support by the domestic institutional investors. Domestic insurance companies bought the index stocks in the late trade. Volumes were low at the institutional desk ahead of truncated week.

Buying was seen in telecom, selective realty, oil and metal stocks. However, selling continued in auto, FMCG, pharma, capital goods, banking (barring ICICI Bank) and power (barring Reliance Infrastructure) stocks.

The 30-share BSE Sensex has touched an intraday low as well as October 2005 level of 7,697.39 (down 1,003.68 from previous close), before ending the day at 8,509.56, down 191.51 points or 2.2%. The 50-share NSE Nifty fell 59.8 points or 2.31%, to settle at 2524.20. It has hit a low of 2252.75 (down 331.25 from previous close).

Frontline indices have recovered 812.17 points and 271.45 points from day's low. A 20 Nifty stocks have recovered over 15% from day's low. The BSE Midcap Index fell 129.45 points or 4.18%, to close at 2,966.23. The BSE Small Cap Index lost 182.99 points or 5%, to settle at 3,478.84.

Lackluster rollovers seen in today's session; Nifty rollover stood at 47.1% while Marketwide rollover at 43.9%. The Nifty open interest Put-Call Ratio (PCR) was at 0.66; implied volatilities increased further. Nifty November Futures added 62.6 lakh shares and ended with a discount of 4.2 points. October Futures saw a mild premium of 1.8 points.

Market breadth was extremely weak throughout the day; about 698 shares have advanced while 2305 shares have declined. About 187 shares remained unchanged.

The total traded turnover stood at Rs 59,015.60 crore. This includes Rs 9,636.40 crore from NSE Cash segment, Rs 46,002.30 crore from NSE F&O and the balance Rs 3,376.90 crore from BSE Cash segment.   

Among the frontliners, Unitech closed up by 37.58%. Ambuja Cements and Idea Cellular were up 10.36% and 7.06%, respectively. Bharti Airtel, Reliance Industries, Reliance Infrastructure, Reliance Communication, Sterlite Industries and ICICI Bank gained 2-6%.

However, Tata Motors, Mahindra & Mahindra, Jaiprakash Associates, Cairn India and NALCO tumbled 10-14%. Grasim, Tata Power, SBI, Larsen & Toubro, HDFC, Sun Pharma, Power Grid Corp and ONGC fell 7-9.5%.

The BSE Auto Index plunged 147.03 points or 5.93% at 2,333.93. Tata Motors and M&M fell close to 14%. Hero Honda and Maruti lost around 3-4%.

FMCG stocks GlaxoSmith Consumber, United Breweries, Dabur India, ITC, HUL, Nestle and United Spirits tumbled 5-9.7%. FMCG Index was down by 102.41 points or 5.63% to 1,715.50.

Healthcare Index lost 139.63 points or 4.97% to 2,671.84. Pharma stocks like Glenmark, Dishman Pharma, Matrix Lab and Ipca Labs fell 14-20%.

BSE Capital Goods Index tumbled 271.09 points or 4.10% to 6,339.80. L&T and Crompton Greaves fell over 7%. BHEL was down by 1.05%.

Bankex slipped 177.85 points or 3.82% to 4,472.02. SBI fell 8.63%. PNB and HDFC Bank were down over 4-5%. However, ICICI Bank gained 2.03%.

BSE Power Index was down by 50.75 points or 3.49% at 1,402.15. GMR Infra, Tata Power, Power Grid Corp, Reliance Power and NTPC lost 3.5-11%.

Metal Index ended lower by 125.32 points or 2.85% 4,268.56. NALCO and JSL fell over 12-13%. Jindal Steel, Hindalco and Tata Steel tumbled 5.5-9%.

BSE IT Index fell 0.44% to 2,586.97. Tech Mahindra, Wipro and HCL Tech fell 2.5-7%. However, TCS, Satyam and Infosys ended in green.

Among the midcap stocks, Consolidated Construction, Dishman Pharma, Allcargo Global, Dredging Corp and MIC Electronics tanked 19-20%.

In the small cap space, ABG Infralogistics, Golden Tobacco, Bhagwati Banquet, Genus Power and Ahluwalia lost 20%.

On the other hand, Oil & Gas Index gained 27.67 points or 0.54% at 5,179.31. Essar Oil and Reliance Industries gained 6-7%. ONGC plunged 5.85% and Cairn India lost close to 16%.

Telecom stocks like Bharti Airtel, Idea Cellular and Reliance Communication gained 3.6%-7%.

BSE Realty Index jumped 74.01 points or 4.25% to 1,817.28. Unitech was up 41.86%, after management clarification. Sanjay Chandra, Managing Director of Unitech clarified there are no defaults in Noida as reported, the company didn't get one plot due to farmer agitation. There is a group spreading rumours and the company has decided to approach the regulators for the same.

Other realty stocks like Indiabulls Real and Omaxe rose 15% and 9%, respectively. However, DLF lost 2.84%.

Asian markets ended with sharp cut barring Kospi. Hong Kong's Hang Seng lost 12.70%, after local money market rates jumped. Nikkei fell 6.36% at 7,162.90, which was the lowest closing in 26 years. Japanese Yen advanced by 1.2% to 92.6 to a dollar during the day. Philippines Index fell 12% at 1,713.8; it had triggered a temporary trading halt during the day.

Shanghai and Jakarta lost over 6.3%. Taiwan fell 4.65%. However, Kospi gained 0.82%.

Mitsubishi is going to raise USD 10.7 billion via new common shares and preferred securities.

Among the European markets, FTSE, CAC and DAX indices tumbled 3.5-6.5%, at 4:25 pm. There will be announcement of UK Nationwide housing prices.

Dow Jones and Nasdaq Futures were down at around 2.5-3%. US Treasury Secretary, Henry Paulson will give speech today. There will be announcement of US new home sales data for September.

Market Snapshot

New 2008 lows: Sensex hits a new low of 7697.3; Nifty hits a new low of 2252.7

Smart Recovery from the lows: Sensex recovers 812 points from days low, Nifty recovers 271 points from days low

Sensex closes down 191 points to close at 8509; Nifty closes down 60 points to close at 2524

Mid Cap & Small Cap Index underperforms the market; CNX mid cap down 4.4%, Bse Small Cap down.5%

Bse Realty up 4.2%, recovers 20% from days low , Unitech up 37.5%, Indiabulls Real Estate up 17%,

Bse Oil & Gas up 0.75%, recovers 13% from days low, Reliance up 5.6%, Cairn down 16.4%

Bse Auto down 6.6%, Tata Motors down 13.9%, M&M down 12.8%, Maruti down 4.1%

Bse cap goods down 4.4%, L&T down 5.8%, Punj Lloyd up 10.3%

Bse Bankex down 4.2%, Sbi down 9.6%, HDFC down 6.8%, Hdfc bank down 4.1%, Bank India down 9.5%

Index Losers : Tata Power down 9.8%, ONGC down 7%, Reliance power down 6.9%, HUL down 6.5%, ITC down 6.2%

Index Gainers : Ambuja up 10.3%, Idea up 7%, Bharti up 5.1%

Mid Cap Losers : Jindal stainless down 37.7%, Glenmark down 20%, Krbl down 20%, ABG Ship down 19.3%, Brigade down 16%

Mid Cap Losers : IOB down 15.8%, Kingfisher Airlines down 15.3%, Jet Airways down 15.3%, Videocon Ind down 13.3%, GSPL down 13.3%, Aban down 13.2%

NSE Adv : Decline at 1:5, recovers in the last session

Total market turnover at Rs 59015.60 crore versus Rs 67895.45 crore

NSE F&O Turnover at Rs 46002.30 crore versus Rs 52476.62 crore

F&O Snapshot:

Lackluster Rollovers: Nifty Rollover at 47.1%, Market Wide Rollover at 43.9

Nifty OI PCR at 0.66, IV rises Further

Nifty nov adds 62.6 lakh shares, Nov Fut ends at a discount of 4.2 points,  Oct at a mild premium of 1.8%

Educomp trading at 200 point discount; ((SEBI Asks FIIs To Reverse Positions In Educomp, RPL FII Lending Data Oct 20))

A bit of short covering seen in Index Heavyweight

Index Heavyweight Rollovers:

Reliance Ind             43.3%

SBI                         42.4%

Infosys                    51.5%

Bharti                     34%

Ntpc                       45%

Icici Bank                59.4%

Options Activity:

Nifty Nov 3000 call adds 1.9 lakh shares

Nifty Oct 4100 Put adds 1.1 lakh shares

Nifty Oct 3000 put sheds 3.9 lakh shares

Asia Tumbles

Hang Seng down 12.7%,

Thailand down 10.5%,

Strait Times down 8.3%,

Nikkei down 6.3%

Global News

Japan Govt calls for Market - Stabilization measures

Bank of Korea cuts rate by 0.75 points to 4.25% after an emergency board meeting.

G7 says Yen volatility bad for economy, financial stability

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