Post Market Report on 12.08.2008

[B. Karthick]

India Stocks Review: End dn 2% on IIP data; bank, metal shrs fall
Tuesday, Aug 12
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Bombay Stock Exchange : National Stock Exchange
Sensex: 15212.13, dn 291.79 pts (1.9%) : Nifty: 4552.25, dn 68.15 pts
(1.5%)
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Snapping a five-session gaining streak, key share indices ended
down 2% on profit sales after industrial growth data for June were in
line with estimates. Weak cues from European markets also added to the
concerns.
India's industrial growth slowed down to 5.4% from 8.9% a year
ago, data showed today.
The IIP numbers were broadly in line with the estimates and the
market was just looking for a point to book profits after the run-up
in the last fortnight or so.
Some market participants said sentiment also took a hit as there
were expectations of IIP data surpassing the estimates, with some
expecting it to be as high as over 6% or even 7%.
Sensex ended at 15212.13, down 291.79 points or 1.9% from Monday.
Intra-day, it moved between 15124.91 and 15579.78.
Nifty closed at 4552.25, down 68.15 points or 1.5%. Intra-day, it
moved between 4525.75 and 4649.85.
Turnover on BSE and NSE combined was 198 bln rupees, compared with
179 bln rupees Monday.
CNX Mid-cap index ended down 0.9%, and S&P CNX 500 declined 1.4%.

LOSERS
Metal shares were led lower by heavyweight Tata Steel, which slid
6% in line with its Asian peers, as global steel prices melted
following an increase in Chinese steel exports in July.
The stock, at 608 rupees, was the worst hit on Nifty.
Profit sales after recent gains also weighed on bank shares. ICICI
Bank and HDFC Bank ended down around 4% each.
Shares of capital goods companies fell on worries that the slowing
industrial growth may result in a decline in orders for them.
Bharat Heavy Electricals ended down 1%, but off lows, while Larsen
& Toubro declined nearly 2%.
Selling by foreign funds pulled Infosys Technologies down 4% amid
weak sentiment on fears of a cut in business from UBS, one of its top
clients, after the Swiss Bank reported a second-quarter loss of $373
mln.
Auto shares ended lower as passenger car sales slowed down for the
first time in three years in July on higher interest rates and rising
inflation.
Maruti Suzuki India slid 5.5% and Tata Motors 3%.

GAINERS
Trent surged 9% to 562 rupees after the company entered into an
exclusive franchise agreement with Tesco, the U.K.'s largest retailer.
Tesco will provide consultancy service to the Tata group company's
hypermarket Star Bazaar.
SpiceJet ended 2% higher on BSE on receiving a $100 mln cash
infusion from WL Ross and hopes of lower fuel cost due to easing oil
prices.
Cairn India rose over 1% on reports the Union petroleum ministry
has opposed imposition of windfall tax on upstream oil companies.
Bharat Petroleum Corp, meanwhile, ended up 2% at 327 rupees as
crude oil prices slipped to a four-month low of $112.48 a barrel on
the New York Mercantile Exchange today.
The stock was the top gainer on Nifty.

KEY MARKET MOVES
* In the Nifty, nine rose and 41 fell.
* In the Sensex, five rose and 25 fell.
* On BSE, there were 1,100 advances and 1,556 declines.
* BSE Metal: Down 3.6%; CNX Bank Nifty: Down 3.5%; CNX IT: Down
2.8%
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Bombay Stock Exchange : National Stock Exchange
Sensex: 15212.13, dn 291.79 pts (1.9%) : Nifty: 4552.25, dn 68.15 pts
(1.5%)
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B.Karthick
Research Analyst.