India Stocks Review: End down 3% but off lows on short

[K.Karthik Raja]

India Stocks Review: End down 3% but off lows on short coveringMonday,
Jun 9
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Bombay Stock Exchange : National Stock
ExchangeSensex: 15066.10, dn 506.08 pts (3.25%): Nifty: 4500.95, dn
126.85 pts (2.7%)
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The Indian market was the worst performing market among Asian
peers.Japan's Nikkei ended down 2%, while South Korea's Kospi 1%. If
the global cyclical downturn is not bad by itself, the (crude)
oilprice is complicating everything. We remain negative on our
market Turnover on BSE and NSE combined was over 183 bln rupees,
compared with178 bln rupees in the previous session. CNX Mid-cap and
S&P CNX 500 declined around 3% each. Crude oil prices were hovering
around $138 a barrel after touching arecord high of $139.12 a barrel
on NYMEX Friday.LOSERS Shares of real estate companies were the
worst hit on Nifty. Real estateis a high-beta sector. When market goes
up, these shares rise even higher,and when market falls, they decline
more. Unitech, down nearly 10% at 184 rupees,was the worst hit on
Nifty. DLFfell over 7% to 481 rupees, lower than its issue price of
525 rupees. Technology shares saw heavy selling in the last hour of
trades. TataConsultancy Services and HCL Technologies ended down 5%
each, at 914 rupeesand 297 rupees, respectively. Bharat Petroleum
Corp closed down over 7% at 279 rupees on concern itsunder-recoveries
will continue to grow due to the surge in crude oil prices. State-
owned oil explorer Oil and Natural Gas Corp fell 6% to 880 rupees,as
the company has to bear the subsidy burden when oil prices soar asoil-
marketing companies sell petrol products at a subsidised
rate.GAINERS Cairn India ended up over 4% at 299 rupees. Investors
are buying thestock as oil price is likely to continue its climb in
the short term. Morgan Stanley, in a note last week, said it sees a
short-term spike incrude oil prices to $150 a barrel by Jul 4.
National Aluminium Co ended up nearly 5% at 516 rupees, helped by
firmaluminium prices. The stock was the top Nifty gainer.
Pharmaceutical shares rose on defensive buying. BSE Healthcare index,
upnearly 1%, was the sole gainer among BSE sector indices. Ranbaxy
Laboratories closed up nearly 4% at 526 rupees and SunPharmaceutical
Industries 2% at 1,456 rupees. Reliance Petroleum rose nearly 3% at
171 rupees on institutional buying,Hero Honda Motors was up 4% at 787
rupees.KEY MARKET MOVES * In the 50-share Nifty, 10 rose and 40
fell. * In the 30-share Sensex, 3 rose and 27 fell. * On BSE,
there were 477 advances and 2,166 declines * BSE Realty: Down 7.05%,
CNX IT: Down 4.6%; BSE Healthcare: Up 0.6%
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Bombay Stock Exchange : National Stock
ExchangeSensex: 15066.10, dn 506.08 pts (3.25%): Nifty: 4500.95, dn
126.85 pts (2.7%)
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K.Karthik Raja