Market Closing Session - 20th Nov

The market slipped deep into the red in late trade as IT and metal stocks tumbled. Index heavyweights Reliance Industries and ICICI Bank faltered. All the sectoral indices on BSE were in red. Banking, power, realty and capital goods stocks declined. Market breadth though positive, it weakened in late trading compared to strong breadth earlier during the day. European markets, which opened after Indian market, were in green. Asian markets, which opened before Indian market, were mixed.

Worries of impact of credit troubles on the broader US economy heightened after Goldman Sachs on Monday, 19 November 2007, downgraded Citigroup's stock to sell from neutral, forecasting more write-downs by the largest US bank because of mortgage losses.

The 30-share BSE Sensex lost 352.56 points or 1.8% at 19,280.80. Sensex hit a low of 19,196.41 in late trade. At day’s low of 19,196.41 Sensex had lost 436.94 points.

The S&P CNX Nifty ended down 126.75 points or 2.15% to 5,780.90.

The market had bounced back from lower level in early afternoon trade amid volatility as some Asian markets came off lower level. Sensex touched a high of 19,714.22 in early afternoon trade. At day's high, Sensex had risen 80.86 points. The market had opened with a downward gap in early trade tracking weak global markets.

The market breadth was positive. On BSE, 1,548 stocks advanced, while 1,278 stocks declined and 40 stocks were unchanged. 25 out of 30 stocks from the Sensex pack were in red.

BSE clocked a turnover of Rs 8,576 crore compared to Monday (19 November 2007)'s Rs 8,120.51 crore.

Nifty November 2007 futures were at 5797, at a premium of 16.10 points as compared to spot closing of 5780.90.

NSE’s futures & options (F&O) segment turnover was Rs 73,178.98 crore, which was higher than Rs 51,841.62 crore on Monday, 19 November 2007.

The BSE Mid-Cap index declined 1.2% to 8,625.87 whereas BSE Small-Cap index rose 0.17% to 10,691.16. Both these indices outperformed Sensex.

BSE Auto index (down 1.37% to 5,339.29),BSE Bankex (down 1.43% to 10,764.53), BSE FMCG index (down 1.22% to 2,197.79), BSE Health Care index (down 0.09% to 3,946.15) outperformed Sensex.

BSE Capital Goods index (down 2.2% to 20,349.42), BSE IT index (down 2.55% to 4,054.64), BSE Metal index (down 2.03% to 17,310.69), BSE Oil&Gas index (down 2.65% to 12,136.58), BSE Power index (down 3.01% to 4,513.02) and BSE Realty index (down 2.8% to 10,447.35) underperformed Sensex.

IT stocks extended losses in late trade on concerns over the US economy. Infosys (down 3.41% to Rs 1,564.40), Tata Consultancy Services (down 2.79% to Rs 960.55), Wipro (down 1.91% to Rs 448.65) and Satyam Computer Services (down 0.97% to Rs 418.55) edged lower.

State Bank of India (SBI) declined 1.1% to Rs 2,279.60. As per reports it is seeking to expand its foothold beyond immediate associate banks by possibly absorbing UCO Bank and Dena Bank. UCO Bank jumped 7.99% to Rs 61 and Dena Bank soared 5.46% to Rs 92.75.

ICICI Bank (down 1.65% to Rs 1,167.25) and HDFC Bank (down 1.43% to Rs 1,631.60) edged lower.

Index heavyweight and India’s largest private sector firm by market capitalisation Reliance Industries was down 2.3% to Rs 2,786.85, off session's high of Rs 2,857.80.

Metal shares retreated on sharp fall in metal prices on Shanghai. National Aluminium Company (down 8.09% to Rs 372.45),Sterlite Industries (down 5.17% to Rs 958.90), Hindalco Industries (down 5.5% to Rs 194.15) and Tata Steel (down 0.37% to Rs 859.55),edged lower. However Steel Authority of India (up 0.63% to Rs 263.60) edged higher.

Capital goods stocks declined on profit taking after a solid surge over the past few days. Bharat Heavy Electricals (down 4.65% to Rs 2,654.20), Suzlon Energy (down 2.54% to Rs 2,041.05) and Larsen & Toubro (down 0.73% to Rs 4,336.35) edged lower.

Power stocks fell. Tata Power Company (down 4.31% to Rs 1,217.20), NTPC (down 1.96% to Rs 260.40) and Reliance Energy (down 1.8% to Rs 1,79430), edged lower.

Realty stocks declined. DLF declined 4.21% to Rs 907.90. Merrill Lynch (ML) has reportedly acquired 49% equity stake in seven residential projects of DLF for Rs 1,481 crore.

Unitech declined 4.57% to Rs 380.20, on reports the company foraying into Mumbai with a commercial project spread over 80 acre near the Bandra Kurla complex. However, Indiabulls Real Estate rose 0.33% to Rs 661.20.

Tata Motors (up 0.75% to Rs 707.85), ACC (up 0.07% to Rs 1,084.65), Hindustan Unilever (up 0.24% to Rs 205.30), Ambuja Cements (up 0.44% to Rs 148.25) and Bajaj Auto (up 0.14% to Rs 2,429.60) edged higher.

Bharat Heavy Electricals (down 4.65% to Rs 2,654.20), Maruti Suzuki (down 4.11% to Rs 1,010.25) edged lower.

Jindal Stainless was the top gainer from A group and rose 16.08% to Rs 205.40. Century Enka (up 5.51% to Rs 179), Fertilisers and Chemicals Travancore (up 4.95% to Rs 47.70), D- Link (India (up 4.94% to Rs 91.35), and Nirma (up 4.78% to Rs 221.60) were other major gainers from A group.

Tata Teleservices Maharashtra clocked the highest volume of 4.23 crore shares on BSE. It ended flat at Rs 50.70. Himachal Futuristic Communications clocked the second highest volume of 2.85 crore shares on BSE. The scrip rose 3.76% to Rs 31.75. IFCI declined 1.47% to Rs 97.10 and clocked the third highest volume of 2.34 crore shares. Ispat Industries rose 1.98% to Rs 46.30 and clocked fourth highest volume of 2.02 crore shares. Jaiprakash Hydro Power rose 5.53% to Rs 110.65 and clocked fifth highest volume of 1.64 crore shares.

Reliance Petroleum clocked the highest turnover of Rs 307.34 crore on BSE. Reliance Industries (Rs 251.2 crore), Infrastructure Development Finace Company (Rs 240.63 crore), IFCI (Rs239.05 crore) and Tata Teleservices Maharashtra (Rs 222.57 crore) were other major turnover toppers on BSE.

European markets opened on a positive note. France’s CAC 40 (up 0.62% to 5,467.86), Germany’s DAX (up 0.9% to 7,578.73) and UK’s FTSE 100 (up 0.78% to 6,168.70) edged higher.

Most of the Asian markets ended in the green, recovering from an early slide. Hong Kong's Hang Seng (up 1.13% to 27,771.21) Japan's Nikkei rose 1.12% to 15,211.52 and Singapore's Straits Times gained 0.78% at 3,438.27. Taiwan Weighted index was flat at at 8,680.

South Korea's Seoul Composite index (down 1.12% at 1,872.24) was trading in the red.

US markets suffered sharp losses on Monday, 19 November 2007, after a broker downgrade of Citigroup sparked concerns of more mortgage losses and fears of slumping auto sales hammered GM shares. The Dow Jones industrial average plunged 218.35 points, or 1.66%, to 12,958.44. The S&P 500 index fell 25.47 points, or 1.75%, to 1,433.27, and the Nasdaq Composite slipped 43.86 points, or 1.66%, to 2,593.38.

Crude oil prices edged lower in Asian trade on Tuesday, 20 November 2007 with the dip seen as temporary because traders were still worried about tight global supplies. New York's main contract, light sweet crude for January delivery was down 26 cents at $94.38 a barrel. Brent North Sea crude for January delivery eased 33 cents to $91.95.

Source - Capital Markets