Post Market Report on 12.09.2008

[B. Karthick]

India Stocks Review: End down 1-2%; Infosys drops 6%; RIL falls 3%
Friday, Sep 12

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Bombay Stock Exchange : National Stock Exchange
Sensex: 14000.81, dn 323.48 pts (2.3%) : Nifty: 4228.45, dn 61.85 pts
(1.4%)
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Key share indices ended sharply lower on fund selling amid
persistent concerns over the health of global financial markets and
uncertain market direction.
There is basically no strength in global cues and no conviction to
buy. Plus IT (information technology) was a major dampener today.
Sensex ended at 14000.81, down 323.48 points, or 2.3%, from
Thursday. Intraday, it slipped below 14000 to a low of 13933.87 and
hit a high of 14433.20.
Nifty closed at 4228.45, down 61.85 points, or 1.4%. Intraday, it
moved between 4200.15 and 4323.90.
CNX Mid-cap and S&P CNX 500 indices declined 1.6% each.
Turnover on BSE and NSE combined was 175.45 bln rupees today
versus 155.80 bln rupees in the previous session.
Market had moved off lows mid-session on short covering following
better-than-expected July industrial growth data.
India's Index of Industrial Production stood at 7.1% in July,
compared with 8.3% a year ago, beating estimates of 6.0%.
Optimism on account of better-than-expected industrial growth data
was negated by concern government's recent decision to increase
minimum support prices of various crops could lead to a rise in
inflation going ahead.
Technology and oil and gas shares were among the worst hit as
index majors from both sectors declined.
Infosys Technologies tumbled 6% to 1,644 rupees on fears it would
miss its dollar revenue guidance for Jul-Sep and 2008-09 (Apr-Mar).
Index heavyweight Reliance Industries extended its fall from the
previous session, hitting a new 52-week low of 1919.70 rupees on NSE,
before closing 3% lower at 1,933 rupees.
The fall to heavy fund selling amid concerns gross refining
margins may come under pressure due to easing global crude oil prices.
Sugar shares fell on profit sales, while weekly decline in
inflation to 12.10% for the week ended Aug 30 failed to cheer interest
rate-sensitive stocks as market expected the figure to be lower than
12%.
Tata Communications erased gains to end nearly 3% lower on profit
sales after touching an intraday high of 458 rupees on a report
Department of Telecommunications is preparing a final Cabinet note on
selling the company's land, covering 773 acres, across India.

RARE GAINERS
Shares of Greenply Industries ended up over 5%, but off highs
touched earlier, on a report its promoters may sell 5% stake through
private placement.
Bharat Heavy Electricals ended 2% up, but off highs, after leading
the capital goods sector higher as July IIP data showed a surprise
jump in the sector's growth to 21.9% from 12.3% a year ago.
Maruti Suzuki India bucked the weak trend in the sector to rise
3.5% on hopes the passenger car major's sales would increase in the
festive season.
National Aluminium Co rose over 4% to 406 rupees on value buying
amid gains in metal prices on London Metal Exchange. The stock was the
top Nifty gainer.

KEY MARKET MOVES
* In the Nifty, 13 rose and 37 fell.
* In the Sensex, 5 rose and 25 fell.
* On BSE, there were 818 advances and 1,848 declines
* CNX IT: Down 3.7%; BSE Realty: Down 3.7%; BSE Oil & Gas: Down
2.4%
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Bombay Stock Exchange : National Stock Exchange
Sensex: 14000.81, dn 323.48 pts (2.3%) : Nifty: 4228.45, dn 61.85 pts
(1.4%)
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B.Karthick
Research Analyst.