Tuesday, May 26, 2009

Market Plunged Due To Profit Booking - May 26, 2009

After a subdued opening trade the markets are now trading range bound. The MidCap and SmallCap stocks had outperformed the benchmark indices during the preceding trading sessions and therefore today these stocks are facing some profit booking pressures. On a broader level the sentiments are very lethargic amidst lack of supportive news from other markets.

Market moved alternately between positive and negative zones. After hitting a fresh intraday low, the markets pared losses with marginal upside movement in mid-morning trade.

On the sectoral front, traders off-loaded positions across the sectors except IT, CD and HC Indices. Oil&Gas stocks retreated on reports the new UPA government plants to cap profits of crude oil production as part of a transparent and sustainable subsidy-sharing system for the sector.

IT stocks grew as rupee cooled off after a recent solid surge. Capital goods stocks advanced on expectations of increased infrastructure spending by the UPA government to boost growth. Auto stocks melt down on concerns a partial decontrol of petrol and diesel prices will result in an immediate rise in petrol and diesel prices. Metal stocks grew on a solid surge in copper prices this year.

The Market breadth, indicating the overall strength of the market, was strong. On BSE, out of 2,720 stocks traded so far, 1,445 shares advanced while 1,238 shares declined. Nearly 37 shares are unchanged.

The BSE Sensex is trading lower by 261.15 points at 13,652 and NSE Nifty is down by 83.35 points at 4,154.20.

The BSE Mid Cap is trading lower by 134.37 points at 4,755.78 and Small cap is trading down by 129.76 points at 5,659.66.

Major gainers from the BSE Sensex pack are Sterlite Industries Limited spurted 2.53% to Rs. 551.70 along with Infosys Technologies spurted 2.06% to Rs. 1,539.00, Wipro Limited by 1.87% to Rs. 373.50, HDFC Bank Limited by 1.62% to Rs. 1,380.20, Sun Pharmaceuticals Limited by 1.50% to Rs. 1,337.10, Housing Development Finance Corporation Limited by 0.98% to Rs. 2,108.00, Hindustan Uniliver Limited by 0.60% to Rs. 233.65, Grasim Industries Limited by 0.55% to Rs. 2,121.25 and BHEL 0.31% to Rs. 2,006.00.

Losers from the BSE Sensex Pack are Ranbaxy Laboratories Limited plunged 7.12% to Rs. 247.70 along with Reliance Communication fell 5.99% to Rs. 302.95, Tata Motors Limited by 4.68% to Rs. 329.75, Bharti Airtel slipped 4.50% to Rs. 774.90, ICICI Bank by 3.43% to Rs. 679.40 and NTPC Limited by 3.17% to Rs. 206.00 among others.

The BSE Realty is lower by 69.42 points or 2.01% at 3,382.02. Stocks trading in red are Housing Development & Infrastructure Limited plunged 5.72% to Rs. 276.80, Sobha Developers by 5.38% to Rs. 183.05, Mahindra LIfeScience by 4.11% to Rs. 269.05, Unitech Limited 3.11%% to Rs. 77.15 and DLF Limited by 2.78% to Rs. 352.05.

IG Petrochemicals Limited zoomed 0.44% to Rs. 34.25 after net profit jumped 103.20% to Rs 7.68 crore in Q4 March 2009 over Q4 March 2008.

Kotak Mahindra Bank Limited slipped by 5.71% to Rs. 644.00 on profit taking after the stock rose 10.65% in the preceding two trading sessions.

Ranbaxy Laboratories Limited slipped 6.92% to Rs. 248.25 on reports the firm could take a hit of as much as $50 million due to a delay in supplying a key ingredient to UK''s AstraZeneca used to make anti-ulcer drug, Nexium.

NIIT Limited fell 8.75% to Rs. 48.50 on profit taking after the stock had spurted over 85% in the preceding eight trading sessions.

Spanco surged 7.70% to Rs. 58.05 after a block deal of 10.90 lakh shares was executed on BSE at Rs. 56.55 per share.

Dishman Pharmaceuticals & Chemicals Limited spurted 19.99% to Rs. 174.40 after net profit rose 235.60% to Rs 31.41 crore in Q4 March 2009 over Q4 March 2008.

Tantia Constructions Limited surged 4.95% at Rs. 54.10 after the company bagged an order worth Rs 58.15 crore.

Bharti Airtel slipped 4.50% to Rs. 774.90 on fears that the merger deal with MTN could lead to substantial dilution of Bharti''s equity and earnings per share.

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