Mkts close lower on FnO expiry day; Sensex -145 pts

Mkts close lower on F&O expiry day; IT, Realty dip 2%


Markets remained weak throughout the day, though they managed to trim the losses to some extent. They closed lower on the day of F&O expiry for the month of September. Benchmark indices also witnessed some volatility in today's session. Midcap and small cap stocks were also caught in bears grip.
Heavyweights like Bharti Airtel, Reliance Industries, Infosys, SBI, BHEL, ONGC and Wipro exerted pressure on markets. Selling was seen in technology, telecom, realty, power, metal and oil stocks.
The Sensex closed with a loss of 145.34 points or 1.06% at 13,547.18, after showing recovery of 116.5 points from day's low of 13,430.68. The Nifty fell 50.70 points or 1.34%, to settle at 4,105.55. It has recovered 28.05 points from day's low of 4077.50.

S&P CNX Nifty hit a high of 4558 and low of 3799.5 during this September series. S&P CNX Defty hit a high of 3579.25 and low of 2820.95 during this series.

In the derivative segment, rollover was lower in the September series compared to August series. Market wide rollover was at 69.2% as against 83% in last expiry. Nifty rollover stood at 57.39% versus 75% in last expiry.

There was a lack of aggressive short rollovers in Nifty Futures. October Futures ended at a premium of 39 points. Fresh short build up was seen in Suzlon Energy and metals stocks saw short rollovers. Akruti City added 12.6 lakh shares in September series. Its October Futures ended at a discount of 93 points and rollover was at 16%.

Daryl Guppy, Founder and Director of guppytraders.com feels that Nifty is still in fairly strong downturn pattern and sees its range at 3600-4600, interspersed by short rallies. The Sensex is in prolonged downtrend and sees resistance at 14500. Guppy believes that fall below 12500 could take the Sensex down to 10000 levels.

Among the frontliners, Wipro tumbled 4.81%, Ranbaxy Labs -4.70%, Hindalco -4%, Grasim -3.50%, TCS -3.26%, Suzlon Energy -7.39%, Siemens -6.31% and NALCO -5.91%. However, HDFC Bank, ONGC, L&T, Maruti, Reliance Power, Hero Honda and Zee Entertainment.
Total turnover crossed Rs 1-lakh crore mark due to F&O expiry. It stood at Rs 1,03,047.35 crore. This includes Rs 15,291.03 crore from NSE Cash segment, Rs 82,697.69 crore from NSE F&O and balance Rs 5,058.63 crore from BSE Cash segment.

BSE IT Index underperformed other indices, slipped 68.69 points or 2.01% to 3,348.42. Technology stocks have taken a huge beating on the bourses, as Credit Suisse First Boston (CSFB) has said that majority of Indian IT companies are likely to miss dollar revenue guidance. It added that currency movements and weakening global environment will exert pressure. The organisation has downgraded Tata Consultancy Services and Mindtree, both will underperform; it has also downgraded Infosys to neutral. CSFB added that the US recovery will be U-shaped and that would lead to a longer slowdown period for IT companies.

Mphasis, Wipro, HCL Tech and TCS fell 3-5%. MindTree was down 2.9%, Satyam -1.75%, Infosys -1.23% and Tech Mahindra -1.08%.Telecom stocks like Tata Communication, Bharti Airtel, TataTeleservice, MTNL, Reliance Communication and Idea Cellular lost 1-4%.

Realty index also lost ground; fell 76.77 points or 1.96% to 3,840.21. Indiabulls Real, Akruti City, Parsvnath and DLF tumbled 3-5%. Sobha Developer, Peninsula Land and Puravankara Projects fell 2-2.5%.

Power Index slipped by 41.39 points or 1.67% to 2,432. Suzlon Energy fell over 7%, as the company is going to consider raising Rs 1,800 crore via rights issue on September 27. Market was concerned about dilution.
Other power stocks like GVK Power, Power Grid Corp, Tata Power, GMR Infra, Reliance Infra and Torrent Power fell 1-3%.
Metal stocks lost their shine; Index fell 165.19 points or 1.63% to 9,977.10. Sesa Goa, NALCO, Gujarat NRE Coke and Hindalco lost 4-5.5%. Jindal Steel, JindalStainless, Sterlite Inds and Hind Zinc fell 2-3%.
Pharma stocks like Ranbaxy Labs, Matrix Lab, Glenmark, Bilcare, Aurobindo Pharma and Dishman Pharma fell 3-4.7%. Healthcare Index lost 50.55 points or 1.3%, to close at 3,825.56.
FMCG Index went down by 0.98% to 2,168.28. United Breweries, ITC, Dabur India and Britannia were losers.
Oil stocks like Cairn India, Aban Offshore, GAIL, BPCL, Reliance Inds, HPCL and IOC lost ground. Oil & Gas Index tumbled 71.84 points or 0.76% to 9,364.01.
Capital Goods Index closed with a loss of 83.67 points or 0.74% at 11,257.13. Siemens, Havells India, Praj Industries, Kalpataru Power, AIA Engineering, BHEL, Alstom Projects, Elecon Engg and Thermax were losers.
Bankex fell just 0.34%, to settle at 6,863.47. Canara Bank, Yes Bank, Andhra Bank and Kotak Mahindra lost 2-4%. SBI, PNB, Oriental Bank, IDBI Bank, Karnataka Bank and ICICI Bank were other losers.
Auto Index closed flat at 3,852.54. Tata Steel was down by 0.9%; Tata Motors has sold one crore Tata Steel shares, via a block deal at Rs 487 per share, to a group company, reports CNBC-TV18, quoting sources. Tata Sons was the likely buyer.
BSE Midcap Index lost 33.73 points or 0.66% to 5,093.05 and Small Cap Index fell 51.48 points or 0.84% to 6,050.03.
Among the midcap stocks, Sterlite Technologies, Gujarat Mineral, Tanla Solutions, National Fertilisers,IVR Prime, Shoppers Stop and Bajaj Hind fell 5-10%. In the small cap space, Numeric Power, Jayaswal Neco, Sanwaria Agro, Kaveri Seed and Emkay Global fell 6.5-8%.
Markets breadth was weak; about 1057 shares have advanced while 1884 shares have declined. Nearly 237 shares remained unchanged.
Golden Tobacco (erstwhile GTC Industries) went up over 8.5% as the company is likely to demerge its tobacco, realty operations into 2 companies. It will allot 1 share in new demerged company for 1 share held.
On the global front, Asian markets ended slightly mixed. Shanghai rose 3.64% and Kospi 0.38%. However, Nikkei fell 0.9%, Straits Times -1.35%, Taiwan -1.17%, Jakarta -0.72% and Hang Seng -0.15%.
Shanghai Index buoyed by share buybacks by state-owned firms. There are signs of progress in long-awaited market reforms.
European markets were mixed, at 4:30 pm. FTSE was down by 8 points while CAC gained 28 points and DAX 39 points.
US Congress is close to approve $700 billion bailout plan. President Bush has called an emergency meeting on Thursday to hammer out details. Democrats & Republicans in Congress are close to agreement on bailout plan. Dow Jones Futures was up by 0.11% and Nasdaq Futures rose 0.75%.
In the Taiwan markets, FIIs were net sellers to the tune of $56.5 million in trade today.

F&O Snapshot:
Market Wide Rollover: 69.2%; Nifty Rollover: 57.39%
Rollovers Last Expiry : Market-wide rollover 83%; Nifty rollovers 75%
Lack of aggressive short rollovers in Nifty Futures, October Futures end at a premium of 39 points
Fresh short build up in suzlon
Metals stocks see short rollovers
Akruti City adds 12.6 lakh shares in September series (Hugh positions led to expire), October ends at a discount of 93 points, rollover at 16%
F&O turnover at Rs 82697.69 cr vs Rs 67,052cr on Wednesday.

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Inflation holds at 12.14 per cent, Other Biz Headlines

Inflation holds at 12.14 per cent

NEW DELHI: Inflation was reported at 12.14 per cent for the week ended September 13, at the same level recorded a week earlier. While food articles rose by 0.2 per cent, chemical & chemical products were up by 0.1 per cent, and fruit & vegetables by 0.6 per cent. Manufacturing products, however, were down by 0.5 per cent, while fuel, power and light remained unchanged. Economists see inflation stabilising around this level before it starts to fall. However, they expect the RBI to raise interest rates by 25-50 basis point in its October review. Earlier, a Reuters poll on Wednesday estimated the annual inflation rate to head upwards for a second consecutive week with the rise mainly seen in food and vegetables. The wholesale price index was forecast to have risen 12.23 per cent in the 12 months to September 13, above the previous week’s rise of 12.14 per cent, according to the median estimate.

Shubhada Rao, chief economist with Yes Bank, said there was upward pressure on prices of primary articles, especially those of food and vegetables. In early August, the inflation rate was 12.63 per cent, the highest reading since annual numbers in the current data series became available in April 1995. RBI governor Duvvuri Subbarao said early this month that inflation was showing signs of moderating but it was too early to conclude whether this was a trend, signalling he would wait and see before taking any fresh steps. This is the 25th consecutive week that inflation is above the RBI’s 7.0 per cent target by the end of March. The government had earlier said inflation would hit 13 per cent and thereafter start moderating from December, before settling at 8.0-9.0 percent by the end of the fiscal year in March.
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Source:ET