Post Market Report on 10.09.2008

[B. Karthick]

India Stocks Review: End down over 1.5%; Sterlite Ind drops 12%
Wednesday, Sep 10

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Bombay Stock Exchange : National Stock Exchange
Sensex: 14662.61, dn 238.15 pts (1.6%) : Nifty: 4400.25, dn 68.45 pts
(1.5%)
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Key share indices ended down over 1% as most index heavyweights
came under selling pressure in the latter half of today's session.
Worries about Lehman Brothers' capital raising ability after its
talks with Korea Development Bank ended hit sentiment overseas, and in
turn India.
Sensex ended at 14662.61, down 238.15 points, or 1.6%, from
Tuesday. Intraday, it moved between 14609.83 and 14866.32.
Nifty closed at 4400.25, down 68.45 points, or 1.5%. Intraday, it
moved between 4382.35 and 4467.50.
CNX Mid-cap index ended down 0.8% and S&P CNX 500 fell 1.5%.
Turnover on BSE and NSE combined was 171 bln rupees.
Metal shares were the worst hit today, with shares of Sterlite
Industries tumbling nearly 12% to 508 rupees as several brokerages cut
price targets and ratings on the stock following its restructuring
plan.
The only issue with Sterlite Industries' recast plan was the
expensive valuation of the Konkola Copper Mines' 1:1 share swap.
Steel shares dropped on worries about demand slowdown amid
worsening global growth outlook, and as companies cut product prices.
JSW Steel cut product prices by 2,000 rupees a tn, while Ispat
Industries said it would also follow suit. Shares of the companies
ended 7.5% and 2%, respectively.
Among heavyweights, Tata Steel and Steel Authority of India slid
5% and 7%, respectively. SAIL said it had no plans to cut prices as of
now.
Index major Reliance Industries led most oil and gas shares lower,
losing nearly 3%.
Dr. Reddy's Laboratories, which was replaced by Reliance Power on
Nifty today, ended nearly 2% lower, while R-Power climbed nearly 1%.
Tata Teleservices (Maharashtra) ended up 3%, but off highs, after
its parent company rubbished reports of France Telecom and NTT DoCoMo
picking up a stake in the communications company.
Infosys Technologies was among rare gainers, helped by a weak
rupee, while other information technology shares erased gains on
profit booking. Infosys ended up around 0.5%.
Other gainers included National Aluminium Co, up 2%, and Hero
Honda Motors, up 1%.
Zee Entertainment Enterprises ended up 3% at 234 rupees on fund
buying.
The stock was the top Nifty gainer.

KEY MARKET MOVES
* In the Nifty, 15 rose, 34 fell, and one remained unchanged.
* In the Sensex, 6 rose and 24 fell.
* On BSE, there were 931 advances and 1,722 declines
* BSE Metal: Down 5.5%; BSE Oil & Gas: Down 2.2%; BSE Realty: Down
1.5%
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Bombay Stock Exchange : National Stock Exchange
Sensex: 14662.61, dn 238.15 pts (1.6%) : Nifty: 4400.25, dn 68.45 pts
(1.5%)
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B.Karthick
Research Analyst.