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17 October 2008

Main contributors of Sensex fall frm 21k to 10K are RIL,ICICI

Sensex ends below 10K; RIL, SBI, Bharti, Infy crash
http://news.moneycontrol.com/india/news/local-markets/sensex-ends-below-10000-ril-sbi-bharti-infy-crash/20/55/361801

The bears latched on to the markets in the second half of the session. They have forced the Sensex to hit 10,000 mark on the back of negative cues from global markets. Realty, power, metal, telecom, capital goods, oil, banking and technology stocks took huge beating on the bourses.

The biggest contributors to this fall were Reliance Industries, Bharti Airtel, Infosys, SBI, ICICI Bank, HDFC Bank, BHEL, NTPC, Reliance Communications, L&T, Reliance Infrastructure, TCS, and ONGC.

The Sensex has closed below the 10,000 mark for the first time since July 2006 and touched an intraday low of 9,911.32, a loss of over 53% from its historic high. It took 384 sessions to go up from 10,000 to 21,207 but took only 192 sessions on its downward journey. Reliance Industries and ICICI Bank were the biggest losers in this journey. They contributed 30% to this fall. The others included L&T, Reliance Communications, Tata Steel, and HDFC.

The bellwether index finally settled at 9,975.35, down 606.14 points, or 5.73%, over its previous close. The Nifty also cracked 3,050 and hit a low of 3,046.60 in today's session. It dropped over 52% from the highest point of 6357.10 on January 8, 2008. It tumbled 194.95 points, or 5.96%, to settle at 3074.35.

Market breadth was extremely weak; about 885 shares have advanced while 2103 shares have declined. Nearly 200 shares remained unchanged.

Among the frontliners, Reliance Infrastructure, Jaiprakash Associates, DLF, NTPC, Reliance Communication, BHEL, Sterlite Industries, SBI, TCS, Tata Steel, Hindalco, Unitech, Siemens and Reliance Petroleum crashed 8-12.5%. All stocks on the BSE Sensex Thirty are in red while only BPCL and HCL Tech ended in the green on the NSE Nifty Fifty.
Total turnover was very low as compared to previous day. It stood at Rs 58,370.46 crore as against Rs 72,822.47 crore on Thursday. This includes Rs 10,477.78 crore from NSE Cash segment, Rs 43,767.13 crore from NSE F&O segment and balance Rs 4,125.55 crore from BSE Cash segment.
Vineet Bhatnagar of MF Global feels that the high volatility numbers indicate that markets have not stabilised. The volatility percentile band has gone above 90% three weeks ago, he added. Bhatnagar sees Nifty support at 3050-3100 levels. The volumes may peak there, he added.
Markets took negative cues from US markets; huge volatility is expected in the US markets today as 80 million options will get expired. Dow Jones and Nasdaq Futures were down close to 2.5%, at 4:07 pm.
European markets had opened over 4% in early trade. However, they were also trading off day's high. FTSE, DAX and CAC were up over 1%, at 4:07 pm.
Asian markets also plunged in late trade barring Nikkei and Shanghai. Hang Seng and Jakarta closed down 4.4% each. Straits Times fell 3.73%, Kospi -2.73% and Taiwan -2.28%. However, Shanghai gained 1.08% and Nikkei rose 2.78%.

In the Taiwan market, FIIs sold USD 344.5 million worth of shares in trade today (provisional). They net sold USD 670 million during this week.
Adrian Mowat, JPMorgan sees more pain in Indian markets until we see some stability in the global financial system. He sees further downside in terms of expectations and feels that Indian markets may underperform over a six to twelve-month period. "If we see further substantial falls in the oil price, then India will tend to be more leveraged than other markets because of the benefit that a lower oil price gives the twin deficits of the current account and at the fiscal level." Crude was hovering around USD 70-71 to a barrel on the NYMEX.
Nirmal Jain, founder and CEO feels, “The rough times will last longer and outlook for the remaining part of the year is very volatile.” He feels that the next 3-4 quarters will be very uncertain and bearish for stock markets.
On the weekly basis, the Sensex has lost 5.8% and the Nifty fell 7%. BSE Metal tumbled 12.2% led by Nalco, Hindalco and Tata Steel, which fell 29%, 22% and 15%, respectively. BSE Oil & Gas Index slipped 11.5%; Reliance Industries and ONGC lost 15.5%. BSE Capital Goods Index crashed 9.5%; L&T and BHEL fell 11%.

Sectoral Indices
Realty stocks have collapsed like a pack of card in today's session. Indiabulls Real, Unitech, Peninsula Land, Ansal Properties, Parsvnath, Puravankara Projects and DLF fell 10-14%. Index has underperformed other indices, went down 288.37 points or 10.25%, to close at 2,524.89.
Power Index tumbled 150.74 points or 8.09% to 1,712.27. Reliance Infrastructure lost 12%. NTPC, Suzlon Energy, Power Grid Corp, CESC, Tata Power and GMR Infra lost 6-10%.
Metal stocks have lost shine. Sterlite Industries, Welspun Gujarat, Tata Steel, Hindalco, NALCO and JSW Steel fell 6-9%. Sesa Goa, Hind Zinc, SAIL and JSL were down 4-5%. Index plunged 378.16 points or 6.12%, to settle at 5,801.71.
Telecom stocks Reliance Communication, Tata Communication, Bharti Airtel, Idea Cellular and MTNL lost 5-10%.
BSE Capital Goods Index plummeted 423.44 points or 5.52%, to close at 7,241.36. Jyoti Structure, Punj Lloyd, Siemens, BHEL, Praj Industries, Crompton Greaves and Elecon Engg lost 6-12%. ABB, Bharat Electronics, Areva T&D and L&T fell 3-5.5%.
Banking stocks also crashed heavily. Kotak Mahindra, SBI, IndusInd Bank, HDFC Bank, ICICI Bank, Union Bank and Canara Bank fell 5-9%. Bankex fell 320.07 points or 5.46% to 5,546.69.
Oil & Gas Index tumbled 348.21 points or 5.10% to 6,479.56. Essar Oil, Aban Offshore, Reliance Petroleum, Reliance Industries and RNRL fell 5-10%. GAIL, ONGC and Cairn India lost 1-4%. However, oil marketing companies like IOC and HPCL rose 3-4%. BPCL gained 0.53%.

Technology stocks TCS, Wipro, Tech Mahindra and Infosys slipped 5-8%. IT Index slipped 131.90 points or 4.94% to 2,537.27. Satyam and Mphasis fell over 2.4%; they have reported good numbers for Q2FY09.
Auto Index closed at 3,099.60, down 96.31 points or 3.01%. Escorts, Maruti Suzuki, Hero Honda, Tata Motors, Bharat Forge, MRF and M&M were down 2-6%.
Healthcare Index fell 88.30 points or 2.68% to 3,209.02. Orchid Chemical, Divis Labs, Fortis Health, Biocon, Lupin, Sun Pharma, Glenmark and Aurobindo Pharma lost 4-7%.
FMCG Index was down by 43.52 points or 2.29%, to close at 1,858.99. United Spirits, GlaxoSmith Consumer, Godrej Consumer, Britannia, HUL and ITC fell 2-6%.
BSE Midcap plunged 112.29 points or 3.07% to 3,544.84 and Small Cap Index tumbled 118.50 points or 2.76%, to end at 4,167.86.
Among the midcap stocks, S Kumars Nationwide, ESS DEE, Provogue, India Infoline, Sterlite Technologies, Orbit Corporation and Chambal Fert tumbled 15-20%.
In the small cap space, ABG Infralogistics, Ganesh Housing, Kemrock Indus, Unity Infraprojects, Khaitan Electrical and KLG Systel fell 15-20%.

Markets Today
Carnage on Dalal Street Continues
SENSEX closes below 10000 for the first time since July 2006
Sensex hits a new 2008 low of 9911.3; Nifty hits a new 2008 low of 3046.6
Capitulation in Index stocks, Mid cap and Small Cap stocks outperform
Sensex ends down 606 points to close at 9975; Nifty ends down 195 points to close at 3074
CNX Midcap Index down 2.9%, BSE Small-cap Index down 2.8%
BSE Realty Index down 12%, Unitech down 12.5%, Indiabulls Real Estate down 13.8%, DLF down 10.1%, Orbit Corp down 15%
BSE Metal Index down 6.9%; Sterlite down 8.1%, Tata Steel down 8%, Hindalco down 7.3%, Sesa Goa down 6.6%
BSE Bankex down 6.3%; SBI down 7.8%, Hdfc Bank down 6.1%, Icici Bank down 5.9%, Kotak Bank down.1%
BSE Cap Goods down 5.8%; Punj Lloyd down 9.6%, Siemens down 9.6%, Bhel down 9.2%
BSE Oil & Gas down 5.8%; RPL down 8.5%, Reliance down 6.1%, Essar Oil down 9.9%
Index Losers : Rel Infra down 11.9%, NTPC down 9.4%, Tcs down 8.3%, Suzlon down 7.6%
NSE Adv – Dec Ratio at 1:4
Total market turnover at Rs 58370.46 crore versus Rs 68100.82 crore
NSE F&O Turnover at Rs 43767.13 crore versus Rs 48279 crore

RIL, ICICI Bank contributed to 30% of the fall from record 21,207
Name Contribution (pts) Contribution (%)
Reliance Ind -1747.85 15.60
ICICI Bank -1537.83 13.72
L&T -1000.62 8.93
Reliance Comm -602.52 5.38
Tata Steel -461.28 4.12
HDFC -459.75 4.10
Reliance Infra -438.50 3.91
DLF -428.19 3.82
JP Assoc -400.76 3.58
HDFC Bank -350.91 3.13
SBI -337.75 3.01
Infosys -318.53 2.84
ONGC -318.04 2.84
Sterlite Ind -307.11 2.74
BHEL -296.47 2.65
Bharti Airtel -262.75 2.34
ITC -250.92 2.24
NTPC -221.77 1.98
Hindalco -214.43 1.91
Grasim -208.29 1.86
Tata Motors -194.10 1.73
TCS -182.15 1.63
Tata Power -169.64 1.51
Satyam -138.92 1.24
M&M -100.99 0.90
Wipro -94.83 0.85
ACC -74.76 0.67
Maruti Suzuki -55.90 0.50
Ranbaxy -54.39 0.49
HUL 23.19 -0.21
Total -11206.77 100
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Contribution from 21,207 to 10000
2 stocks contributed to 30% fall in the Sensex. Reliance Industries contributed to 15.5% and ICICI Bank 14% to the fall.
6 stocks contribute to 50% fall in the Sensex
Name Contribution(pts) Contribution (%)
Reliance Ind -1748 15.60%
ICICI Bank -1538 13.72%
L&T -1001 8.93%
Reliance Comm -603 5.38%
Tata Steel -461 4.12%
HDFC -460 4.10%
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More @ SENSEX ends below 10000; RIL, SBI, Bharti, Infy crash Moneycontrol.com

Source: Moneycontrol.com.

Biggest psychological setback for Sensex, Closed below 10K, Lowest Since June 06

Distress Street: Bears pull Sensex below 10,000

MUMBAI: It was one of the biggest psychological setbacks for Indian trading community Friday as the Bombay Stock Exchange’s Sensex closed below the 10,000 mark. The oldest benchmark has lost more that 50 per cent from its all-time highs in just nine months.

The downfall was anticipated, but not on a day when bulls dominated the US and European markets. So what led to the fall? According to marketmen, there was some profit booking in the morning but formation of new short positions in futures, anticipating disappointing data from the US housing market, led to fall in the cash segment as well. Traders also didn’t want to take risk ahead of the weekend.

The breach of 10,000 level on the Sensex is being seen as a huge sentimental blow which is likely to trigger further correction and prevent investors from taking long positions. While some say it will take around 6-9 months for the market to stabilize, others are of the opinion that it will take at least three years for the global markets to get out of the rut created by the US financial market.

“There is dearth of fresh buying as investors are waiting for the markets to stabilise. Market can fall 10-15 per cent to 2,750 on the Nifty and around 8,700 on the Sensex, before forming a bottom. Global scenario is not healthy and volumes are also low. There is no fresh buying even as many A group stocks are available at 60-65 per cent from last October’s valuations. Hedge funds are creating short positions, which is dragging the markets,” said Ketan Malkan, vice-president, India Infoline.

Bombay Stock Exchange’s Sensex closed at 9,975.35, down 606.14 points or 5.73 per cent. It touched an intra-day low of 9,911.32 and a high of 10,786.93. National Stock Exchange’s Nifty closed at 3,074.35, down 5.96 per cent or -195 pts. The broader index touched an intra-day low of 3,046.60 and an intra-day high of 3,335.95. BSE Midcap Index closed 3.07 per cent lower at 3,544.84 and BSE Smallcap Index ended 2.76 per cent down at 4,167.86.

“We have formed a soft bottom and are in the process of formation of a hard bottom, which is likely to be formed around 2800 levels,” said a technical analyst from a local brokerage. Experts are of the opinion that it is not the end of the market and advise investors to enter in a systematic manner. “Global sentiments are at the lowest and this is being reflected in the acute risk aversion of investors, who have shunned equities for the time being.

While it would be difficult to catch the bottom, investors should continue investing into equities in a systematic manner. While the current situation would take some time to mend, if history is any guide to investments, equities have outperformed all asset classes over the long-term and we remain confident that history will repeat itself,” said Hitesh Agarwal of Angel Stock Broking. Biggest losers in the Sensex pack were Reliance Infrastructure (11.96%), Jaiprakash Associates (10.70%), DLF (10.34%), NTPC (10.34%), and Sterlite Industries (8.82%). There were no gainers in the 30-share index. Market breadth turned extremely weak with 1,462 declines against 638 advances on BSE European markets which opened strong, too gave away major gains as US stock futures were pointing toward a weak opening.

FTSE 100 was up 2.13 per cent, DAX moved 1.80 per cent higher and CAC 10 advanced 1.30 per cent. US stock index futures extended losses as a report showing that housing starts slid in September heightened recession fears. Dow Jones Industrial Average futures dropped 136 points and Nasdaq futures fell 27 points.

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Where will the Sensex head to now?

MUMBAI: The bull is on the run! But not in the direction one would want. He’s kicked enough storm and leaving behind him dust which the market is anxiously waiting to settle, so as to ascertain the damage. There are foreign forces behind the madness, as politicians would say--the US sub-prime crisis that has ballooned into a credit crisis across world markets. And there doesn’t seem to any comfort from the measures being taken by the central governments. In one of many such stampedes, the Sensex of Bombay Stock Exchange Friday closed below the 10,000 mark at 9,975.35, a loss of 606.14 points or 5.73 per cent from the previous close. The low of the day was 9,911.32 and high of 10,786.93. The broader Nifty of National Stock Exchange settled at 3074.35, down 194.95 points or 5.96 per cent. The index touched an intraday low of 3046.60 while the high was 3,335.96.

Economictimes.com spoke to the people on the floor to know where it will all end. “I don't think we can forecast a bottom for the benchmark index or how soon we will hit rock bottom. What I am seeing is sustained FII selling and lack of support from domestic institutions such as mutual funds and insurance companies who are sitting on cash to meet redemption pressures.

There is panic fear among overseas investors, who themselves are faced with heavy redemption pressures in their home countries. These (sustained outflows) will have to end for the market to stabilise and SEBI's proactive measures on P-notes to come into effect,” said Geojit Financial Services’ Managing Director, CJ George, of the Sensex breaching the 10K mark.

Being more specific, Sandeep Waghle, chief technical analyst of Angel Stock Broking, said, “The Sensex went close to 10,000 and bounced back as fresh buying came in and some short positions were also covered. But the mood is bad and Sensex may go down to 9000 and Nifty may test 2900.” Manas Jaiswal, senior technical analyst at Emkay Shares and Stock Brokers, painted an even grim picture. “Market mood is extremely bearish and we expect Nifty to touch 3050 next week. It may fall to 2600 in next two months,” he said. Speaking on the forces that be, N K Garg, CEO of Sahara Mutual Fund, said, “There is an imbalance now. FIIs are having hassles in their country. This is a crucial time for markets. I wouldn't like exiting.” Continued...Next >>
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Stocks that braved the storm this week
Sensex closes below 10K; Realty,power plunge
Mkts under distress: Sensex below 10,000 mark
Sensex dips below 10,000 mark
Realty, power stocks under severe pressure

Distress Street: Bears pull Sensex below 10000Economic Times, India - 48 minutes agoMUMBAI: It was one of the biggest psychological setbacks for Indian trading community Friday as the Bombay Stock Exchange’s Sensex closed below the 10000 ...

Sensex closes below 10000 mark DailyIndia.com

SENSEX ends below 10000; RIL, SBI, Bharti, Infy crash Moneycontrol.com

Sensex plunges, below 10000 mark Times Now.tv

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Sensex plunges below 10000

BEARS RULE: Sensex in four-digits, sheds 606pts

SENSEX ENDS BELOW 10K

Sensex loses 606 pts, ends at 9975.35

Sensex melts below 10k level, hits over 2-year lows

Post Session Commentary - Oct 17 2008

RBI policy review, global markets to dictate trend

Sensex down 13% from recent high