Market Closing Session - 17th Dec

The market witnessed major correction as Sensex tumbled more than 850 points at one point of time in late trade tracking weak global markets. Metal, realty and power stocks declined sharply in late trade. Capital goods and banking stocks also declined heavily. Reliance Industries declined sharply. The market breadth turned negative in late trade in contrast to a strong breadth earlier during the day. All the sectoral indices on BSE were in red.

European markets which opened after Indian market were weak. Asian markets which opened before Indian markets were trading lower today. US stocks slumped on Friday, 14 December 2007, on concerns surging inflation may prevent the Federal Reserve from lowering interest rates.

Crude oil prices rose, supported by a US winter storm and renewed tensions in the Middle East as Turkish planes bombed Kurdish rebels in northern Iraq. US light, sweet crude for January delivery which expires on Tuesday, 18 December 2007, rose 48 cents to $91.75 a barrel.

The 30-share BSE Sensex slumped 769.48 points or 3.84% to 19,261.35. Sensex hit a low of 19,177.19 in late trade. At days low Sensex lost 853.64 points.

The S&P CNX Nifty declined 270.7 points or 4.48% to 5,777.

Market breadth was weak. On BSE, 972 stocks advanced, 1,932 stocks declined and 23 stocks remained unchanged. 29 out of 30 stocks from the Sensex pack declined.

BSE clocked a turnover of Rs 9524 crore as compared to Friday (14 December 2007)'s Rs 9,480.42 crore.

Nifty December 2007 futures were at 5791, at a premium of 14 points as compared to the spot closing of 5777.

The NSE's futures & options (F&O) segment turnover was Rs 73,373.37 crore, which was higher than Rs 61,326.39 crore on Friday, 14 December 2007.

BSE Mid-Cap index declined 3.87% to 9,105.58. It underperformed Sensex. The index hit all-time high of 9,541.03 today. BSE Small-Cap index declined 2.91% to 11,840.02. The index outperformed Sensex. It hit a record high of 12,402.86 today.

BSE Power index (down 4.8% to 4,222.68), BSE Oil & Gas index (down 5.13% to 12,314.72), BSE PSU index (down 5.63% to 9,511.13), BSE Realty index (down 5.65% to 11,699.36) and BSE Metal index (down 7.28% to 18,324.50) underperformed Sensex.

BSE Capital Goods index (down 3.69% to 19.129.14), BSE Bankex (down 3.67% to 10,919.22), BSE Consumer Durables index (down 3.41% to 5,992.76), BSE HealthCare index (down 2.55% to 4,198.20), BSE FMCG index (down 2.33% to 2,211.07) and BSE IT index (down 2.16% to 4,167.90) outperformed Sensex.

Indias largest private sector firm by market capitalization & oil refiner Reliance Industries declined 3.86% to Rs 2,777.50.

Metal stocks slumped. Tata Steel (down 6.15% to Rs 823.85), Sterlite Industries (down 8.45% to Rs 976.15), National Aluminium Company (down 6.87% to Rs 418.50) and Hindalco industries (down 5.69% to Rs 200.65) edged lower.

Steel Authority of India fell 7.2% to Rs 259.75 on reports the company plans to enter the equipment manufacturing business to profit from the boom in the domestic steel sector.

Reliance Communications declined 5.55% to Rs 717.80 after the company today said it has completed the acquisition of US-based Yipes Holdings that would give the company access to a Rs 4,00,000 crore global enterprise data market.

Capital goods stocks declined. Bharat Heavy Electricals declined 5.32% to Rs 2,425.25. It announced during the market hours today that it has signed a joint venture agreement between with NTPC for establishment and operation of joint venture company for engineering, procurement and construction (EPC) business.

Larsen & Toubro (down 2.2% to Rs 4,082.10) and Suzlon Energy (down 6.67% to Rs 1,828.10) edged lower.

Tata Motors declined 5.8% to Rs 701.25 on reports that Ford Motor Company is poised to name the company as preferred bidder for its Jaguar and Land Rover brands.

Banking stocks declined. ICICI Bank (down 3.29% to Rs 1,167.10), HDFC Bank (down 2.91% to Rs 1,678.30) edged lower.

State Bank of India fell 3.98% to Rs 2,314.50 on reports the bank is planning to buy an Indonesian bank.

Power stocks declined. Reliance Energy (down 4.22% to Rs 1,828.95), NTPC (down 7.3% to Rs 228.60), Tata Power Company (down 0.39% to Rs 1,295.90) and Power Grid corporation (down 5.56% to Rs 137.55) edged lower.

Realty stocks declined. Peninsula Land (down 8.5% to Rs 135.05) , DLF (down 7.53% to Rs 944.25), Indiabulls Real Estate (down 8.26% to Rs 679.25) and Unitech (down 2.72% to Rs 465.35) edged lower.

Hindustan Unilever (up 0.76% to Rs 218.60) edged higher.

HDFC (down 5.93% to Rs 2,877.55), ONGC (down 5.84% to Rs 1,166.45) edged lower.

G V Films clocked the highest volume of 5.05 crore shares on BSE. It declined 7.41% to Rs 11.12. IFCI clocked the second highest volume of 3.97 crore shares on BSE. It declined 4.62% to Rs 108.40. Harig Crankshaft declined 3.43% to Rs 3.94 and clocked the third highest volume of 3.8 crore shares. Ispat Industries declined 1.45% to Rs 77.90 and clocked the fourth highest volume of 3.77 crore shares. Bellary Steels declined 0.13% to Rs 7.93 and clocked the fifth highest volume of 2.6 crore shares.

IFCI clocked the highest turnover of Rs 458.03 crore on BSE. Ispat Industries (Rs 309.58 crore), Kolte Patil Developers (Rs 287.71 crore), HDFC (Rs 204.55 crore) and Reliance Petroleum (Rs 196.28 crore) were the other turnover toppers on BSE in that order.

European markets were weak today. Frances CAC 40 (down 1.29% to 5,531.66), Germanys DAX (down 1.32% to 7,843.41), FTSE 100 (down 1.17% to 6,321.90) edged lower.

Asian markets were trading lower today, 14 December 2007. Hong Kong's Hang Seng (down 3.51% at 26,580.38), Taiwan's Taiwan Weighted (down 3.54% at 7,830.85), Singapore's Straits Times (down 3.25% at 3,353.56), Shanghai Composite (down 2.53% to 4,881.40), Japan's Nikkei (down 1.71% to 15,249.79), South Korea's Seoul Composite (down 2.91% at 1,839.82) declined.

US stocks swooned on Friday, 14 December 2007, on concerns that surging inflation may prevent the Federal Reserve from lowering interest rates enough to pull the economy out of the grip of a housing and credit crisis. The three major indexes tumbled more than 1% each, and posted their worst week since 11 November 2007, after a report showing a jump in the consumer price index in November 2007.

Meanwhile, the advance tax figures, which will available this week, would trigger expectations regarding corporate performance of India Inc. in Q3 December 2007.

Bharatiya Janata Party (BJP) is poised to retain power in Gujarat but with a reduced majority losing some ground in Sunday (16 December 2007)'s second and final phase of polls in northern and central parts which was worst hit by 2002 communal riots, according to exit polls by four TV channels.

Source - Capital Markets