Post Market Report on 15.09.2008

[B. Karthick]

India Stocks Review: End dn 3% but off lows; crude price fall aids
Monday, Sep 15
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Bombay Stock Exchange : National Stock Exchange
Sensex: 13531.27, dn 469.54 pts (3.35%): Nifty: 4072.90, dn 155.55 pts
(3.7%)
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Share indices ended down over 3%, but off lows touched earlier in
the session due to short covering in the derivatives segment as global
crude oil prices hit a fresh six-month low and bargain buying at lower
levels.
Crude oil for October delivery hit a new six-month low of $96.31 a
barrel on New York Mercantile Exchange.
Sensex ended at 13531.27, down 469.54 points, or 3.4%, from
Friday. Intraday, it hit a low of 13150.81 and a high of 13592.05.
Nifty closed at 4072.90, down 155.55 points, or 3.7%, after
trading below the 4000-mark to hit a low of 3955.40. Intraday, it
touched a high of 4237.25.
CNX Mid-cap and S&P CNX 500 indices declined around 4% each.
Turnover on BSE and NSE combined was 164.14 bln rupees today
against 175.45 bln rupees in the previous session.
Today's late recovery was mainly due to insurance companies and
domestic institutions turning buyers at lower levels after 700-750-
point correction.
Market had dropped 6% intraday in line with overseas markets as
sentiment was hit after U.S.-based Lehman Brothers Holdings filed for
bankruptcy after it failed to find a buyer over the weekend.
Financial sector worries gathered steam on reports American
International Group has sought a $40-bln bridge loan from U.S. Federal
Reserve, and that Bank of America will buy Merrill Lynch in a $50-bln
deal.
While all Sensex and Nifty shares traded in the red for majority
of the session, bottom fishing by domestic institutions helped a
select few end in positive territory.
These included ACC and Housing Development Finance Corp, both up
1% each. Maruti Suzuki India, up 2.5% at 721 rupees, was the top Nifty
gainer.
Crude oil consistently trading below the $100-mark gave a boost to
shares of oil retailers, which ended up 1-3%.
Bank shares were also among the first stocks to move off lows on
value buying.
An interest rate cut by China's central bank also aided sentiment,
triggering short covering in interest rate-sensitive sectors on hope
central banks overseas would step in to support the financial system.
State Bank of India and ICICI Bank ended down 2% and 4%,
respectively. Intraday, they had declined around 7% and 9%,
respectively.
Short covering was also seen in Reliance Industries, which has
declined for four straight sessions, after it hit a new 52-week low of
1,823.25 rupees today.
High-beta real estate shares remained the worst hit, with Housing
Development & Infrastructure tumbling 12%, while Unitech and DLF lost
7-8%.
Technology shares also declined on concerns demand in the banking,
financial services and insurance segment will be hit after Lehman
filed for protection under Chapter 11 of U.S. bankruptcy code and on
acquisition of Merrill Lynch by Bank of America.
Satyam Computer Services ended 9.5% lower at 369 rupees.
Reliance Infrastructures, down nearly 10% at 839 rupees, was the
worst hit on Nifty.

KEY MARKET MOVES
* In the Nifty, 4 rose and 46 fell.
* In the Sensex, 3 rose and 27 fell.
* On BSE, there were 359 advances and 2,263 declines
* BSE Realty: Down 7.7%; CNX IT: Down 5.3%; BSE Metal: Down 4.5%
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Bombay Stock Exchange : National Stock Exchange
Sensex: 13531.27, dn 469.54 pts (3.35%): Nifty: 4072.90, dn 155.55 pts
(3.7%)
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B.Karthick
Research Analyst.