Post Market report on 01.07.2008

[B. Karthick]

India Stocks Review: End at over 1-year low; Sensex below 13000
Tuesday, Jul 1.

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Bombay Stock Exchange : National Stock Exchange
Sensex: 12961.68, dn 499.92 pts (3.7%) : Nifty: 3896.75, dn 143.80 pts
(3.6%)
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Share indices ended at their lowest levels since Apr 2007 on a
sell-off in last hour of trade.
Sentiment was dampened as key European markets extended their fall
after
a report showed U.K. house prices fell in June by the most since the
end of
the last recession in 1992.
Today's fall was just a continuation of the fall we've been seeing
in
the past few months. We feel no particular reason for today's sell-
off, but
for U.K. markets being down around 2%, which is not very common in
developed
markets.
A U.S.-based hedge fund was also rumoured to be selling in market
today.
Sensex breached the 13000-mark to end at 12961.68, down
99.92 points, or 3.7%, from Monday. Intraday, it moved between
13613.01 and a
new 2008 low of 2904.09.
Nifty closed below the 3900 level at 3896.75, down 143.80 points,
or
3.6%. Intraday, it moved between 4075.40 and a new 2008 intraday low
of
3878.20.
Turnover on BSE and NSE combined was 170 bln rupees, compared with
162
bln rupees Monday.
CNX Mid-cap slid nearly 5% while S&P CNX 500 ended down 4%.
All BSE sector indices ended in red, with interest rate-sensitive
sectors
again taking a severe beating on fears of higher interest rates as
inflation
threatens to remain in double digits with crude oil hovering
comfortably
above $140 a barrel.
BSE Realty Index, down 7%, was worst hit, with DLF and Unitech
sliding 9%
and 6%, respectively.
Concerns of likely weak Apr-Jun earnings due to higher mark-to-
market
losses also weigh on bank shares. ICICI Bank ended down 6.5%.
Among automobile shares, Mahindra and Mahindra and Maruti Suzuki
ended
down on bleak outlook for the sector.
M&M ended down 8% after reporting an 8.8% year-on-year rise in June
sales, excluding tractors, while Maruti declined 7% on posting
disappointing
sales for the same month.
Reliance Communications, down 11% at 396 rupees, was worst hit on
Nifty.
Cement shares also declined on worries of hardening interest rates
slowing down demand for housing and construction sector and in turn
demand
for the commodity.
Ambuja Cements slid 4%, while India Cements tumbled 12%.
Most power shares also fell, with Suzlon Energy ending down 9.5% at
195
rupees on a Wall Street Journal newspaper report that 250 turbines the
company supplied to Deere & Co of the U.S are not generating enough
electricity and Suzlon may be facing penalties.
Power Grid Corp and Tata Power Co ended down 7% and 4.5%,
respectively,
while NTPC, up 1%, was sole gainer in the sector.
Technology shares held on to gains for most of the session on
defensive
buying, and as rupee touched a 15-month low of 43.45 per $1 today.
HCL Technologies, up nearly 3% at 260 rupees, was the top Nifty
gainer.

LISTING
Sejal Architectural Glass that debuted on the NSE today at 130
rupees,
ended at 81 rupees. Its issue price was 115 rupees.

KEY MARKET MOVES
* In the Nifty, three rose and 47 fell.
* In the Sensex, one rose and 29 fell.
* On BSE, there were 409 advances and 2,268 declines
* CNX Bank Nifty: Down 5.9%; BSE Metal: Down 5.4%; BSE Auto: Down
4.9%
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Bombay Stock Exchange : National Stock Exchange
Sensex: 12961.68, dn 499.92 pts (3.7%) : Nifty: 3896.75, dn 143.80 pts
(3.6%)
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B.Karthick,
Research Analyst