Post Market report on 16.07.2008

[B. Karthick]

India Stocks Review: End at new 15-month low; HDFC drops 4.5%
Wednesday, Jul 16
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Bombay Stock Exchange : National Stock Exchange
Sensex: 12575.80, dn 100.39 pts (0.8%) : Nifty: 3816.70, dn 44.40 pts
(1.2%)
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Key share indices closed at a new 15-month low as investors dumped
shares of real estate and metal companies amid weak cues from overseas
markets.
However, the market ended off the 2% low touched earlier in the
session, helped by short covering in the derivatives segment.
Sensex closed at 12575.80, down 100.39 points, or 0.8%, from
Tuesday. Intraday, it moved between its new 2008 low of 12514.99 and
12935.25.
Nifty ended at 3816.70, down 44.40 points, or 1.2%, after hitting
a new 2008 low of 3790.20. Intraday, it touched a high of 3920.05.
Turnover on BSE and NSE combined was 158 bln rupees, compared with
149 bln rupees Tuesday.
CNX Mid-cap and S&P CNX 500 indices ended down 1.5% and 1.2%,
respectively.
Worries over the future of the real estate sector due to high
interest
rates and project delays, caused index majors DLF and Unitech to slide
8% and 11%, respectively.
Unitech, which ended at 137 rupees, was the worst hit on Nifty. It
hit a new 52-week low of 135.05 rupees intraday.
Most metal shares ended lower, with National Aluminium Co sliding
6%.
Steel shares also ended mostly down after having partially
recouped
losses on comments from the steel minister today that government does
not favour interfering in product prices.
Tata Steel and Steel Authority of India fell 3% and 4%,
respectively,
while JSW Steel declined 2%.
Housing Development Finance Corp ended down 4.5% at 1,718.00
rupees, but off its new 52-week low of 1,682.20 rupees, after
reporting a lower-than-expected 26% year-on-year rise in Apr-Jun net
profit at 4.68 bln rupees.
Tata Consultancy Services also hit a new 52-week low of 715.90
rupees before ending at 728 rupees, down 3%, ahead of its first
quarter earnings, due later today.
Most other index majors hit 52-week lows today as profit booking
kicked in after shares rose mid-session.
These included ICICI Bank and HDFC Bank, down around 2% each.
There was minimal buying today. It was mostly short covering which
lifted shares earlier. We saw selling pressure because people want to
book profits and sit on cash in case of any surprise negative news.
Cairn India dropped 5% as crude oil prices retreated to below $140
a barrel on New York Mercantile Exchange, while the same benefited
shares of oil retailers. Bharat Petroleum Corp ended 3% higher.
Shares of fast moving consumer goods companies climbed as a
defensive bet in a weak market.
Hindustan Unilever and ITC climbed over 1% each.
Ranbaxy Laboaratories' shares surged after the company clarified
today the deal with Japan's Daiichi Sankyo was on track, and it is
confident of resolving issues with U.S. Food and Drug Administration.
The stock, up 15% at 471 rupees, was the top Nifty gainer.

KEY MARKET MOVES
* In the Nifty, 17 rose, and 33 fell.
* In the Sensex, nine rose, and 21 fell.
* On BSE, there were 450 advances and 2,247 declines.
* BSE Realty: Down 6.3%; BSE Metal: Down 2.4%; BSE Healthcare: Up
1.6%
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Bombay Stock Exchange : National Stock Exchange
Sensex: 12575.80, dn 100.39 pts (0.8%) : Nifty: 3816.70, dn 44.40 pts
(1.2%)
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B.Karthick,
Research Analyst.