The Markets Are Still Trading Lower - March 2, 2009

The markets are still trading lower after a sharp gap down opening on the back of negative cues from the global markets. The significant selling pressure witnessed among the Banking, IT, Metal, Oil & Gas and FMCG stocks. However, the Auto index made pullback from the day’ low and is now trading higher. The BSE Mid Cap and the Small Cap index are also trading lower with a cut of around 0.5% each. The BSE Sensex is now trading around the 8,700 mark and the NSE Nifty around the 2,700 mark. Moreover the announcement of the merger of the Reliance Industries and the Reliance Petroleum failed to lift the sentiments of the markets today.

Reliance Industries is trading lower by (2.34%). Reliance Industries and Reliance Petroleum’s boards approved the merger where RPL’s shareholders to receive 1 share of RIL for every 16 shares of RPL. RIL will issue 6.92 crore new shares, thereby increasing its equity capital to Rs.1,643. crore. The merger will be effective from April 1, 2008. The merger will be EPS accretive.

PNB is trading lower by (4.16%). The public sector bank has reduced car loans by half percentage point to 10.5% with effect from March 1.

Maruti Suzuki is trading higher by (1.72%) after the company reported highest ever domestic and total sales in February. The carmaker has registered a 24% growth (YoY) in its total vehicle sales to 79,190 vehicles in February. In the domestic market the company has sold 70,625 units, up by 19.1% over corresponding month last year.

On the global markets front, the Asian markets are trading mostly lower barring the Shanghai Composite index, as it is trading marginally higher by (0.14%). Nikkei 225, Hang Seng, Seoul Composite and Straits Times index are trading down by (3.81%), (3.69%), (4.16%) and (3.17%) respectively.

The overall market breadth is negative as 753 stocks are advancing while 1242 stocks are declining and the 81 stocks remain unchanged on BSE.

Mahindra & Mahindra reported the top gainer from the BSE Sensex pack, as is trading higher by (4.52%) at Rs. 323.90 While ICICI Bank reported the top loser, as it is trading down by (3.90%) at Rs. 315.30.

The BSE Mid cap is lower by 15.85 points at 2,742.44 and the BSE small Cap slipped by 21.64 points to trade at 3,084.37.

At 12.34 pm, BSE Sensex was at 8,705.06 down by 186.55 points and the NSE Nifty was at 2,703.25 down by 60.40 points.

BSE Auto index is trading higher by 20.88 points at 2,703.39. The major gainers are Mahindra & Mahindra (2.82%), Tata Motors (2.11%), Ashok Leyland (1.50%) and Maruti Suzuki (1.82%).

BSE Capital Goods index slipped by 57.06 points to 5,840.86. The main losers are Punj Lloyd (3.86%), Gammon India (3.37%), Crompton Greaves (1.81%), Reliance Industrial Infra (1.69%) and Alstrom Project (0.87%).

BSE Oil & Gas index decreased by 128.16 points to 5,935.95 as ONGC (3.57%), Cairn India (3.17%), Aban Offshore (2.45%), Reliance Industries (2.01%) and Gail India (1.70%) are trading in negative.

BSE Realty index slipped by 4.87 points to 1,408.32 as Anant Raj Ind (1.57%), Unitech (1.42%), DLF (0.79%) and Mahindra Life (0.21%) are trading lower. While Orbitco (14.39%), Ansal Infra (4.56%) and Parsavnath (3.31%) are trading higher.

BSE IT index decreased by 57.78 points to trade at 2,038.39 as HCL Technologies (3.85%), Rolta Ind (2.94%), TCS (2.87%), Patni Computer (2.81%), Wipro (2.34%) and Infosys Technologies (2.54%) are trading in red.

BSE Metal index dropped by 116.03 points to 4,574.94 as JSW Steel (5.77%), Jindal Steel (3.37%), Tata Steel (3.77%), Sesa Goa (3.22%), SAIL (2.83%) and Hindalco Industries (1.42%) are trading lower.

BSE Bankex index is trading lower by 135.85 points at 4,104.25. The main losers are AXIS Bank (4.07%), ICICI Bank (3.90%), HDFC Bank (3.83%), PNB (3.70%), IDBI Bank (3.10%) and Kotak Bank (2.80%).

BSE Power index declined by 28.54 points to 1,723.21. Leading the losers are Power Grid (4.04%), Suzlon Energy (2.10%), Tata Power (2.09%), Torent Power (1.77%) and NTPC (1.68%) are trading lower.

Market Opens In Deep Red.

The market today opens sharply lower backed by the negative cues from the global markets. The heavy selling witnessed across the board mainly led by the Capital Goods, Metal, Oil & Gas and Bank stocks. The BSE Sensex has fall below the 15,700 mark in the opening trade. The broader market is also trading in line with the benchmark index.

The market will remain closed from 11:45 IST to 12:25 IST due to sun outage. Trading time has been extended till 16:15 IST. The changes in timings will be applicable to 18 March 2008.

The overall market breadth is negative as 413 stocks are advancing whereas 1472 stocks are declining on BSE.

At 10.30AM, the BSE Sensex was down by 450 points at 15,678 and the Nifty was down by 157 points to 4,715.The BSE Mid Cap decreased by 181 points to 6,729 and the BSE Small Cap dropped by 197 points to 8,335.

BSE Capital Goods index dropped by 392 points to trade at 13,710. The top losers are Siemens declined by (4.08%) to Rs.658, BHEL decreased by (3.23%) at Rs.1,950 followed by L&T and ABB down by (2.92%) and (1.49%) to Rs.2,857 and Rs.1,124 respectively.

BSE Bank index slipped by 219 points to trade at 8,336. The major losers are PNB, ICICI Bank, SBI and HDFC Bank fell by (2.82%), (2.61%), (2.49%) and (2.41%) to Rs.482, Rs.857, Rs.1,763 and Rs.1,338 respectively.

TCS is trading lower by (3.64%) to 794. The company has formed a joint venture with the Bangkok-based Thai Re-Insurance Public Corporation to set up a company called Firstech Solutions. The joint venture company will offer IT outsourcing services using an applications service provider (ASP) model to insurance providers in Thailand

Indices Subdued As Investors Turn Cautious

MUMBAI: Trade turned choppy as wary investors chose to stay away from the market. Realty and metal shares remained weak but information technology counters provided the much needed support.

The positive close on Wall Street, and with most Asian markets closed for the Chinese New Year, there is no additional pressure on the equities, at least from global shores.

“Volatility can be the order of the day; an intra-day upside could come in below the 5,113 level while significant support at lower levels (5005) – would limit the downside. The outlook has turned neutral again while resistance comes in at the 5550+ level and support comes in at 4,820,” said Asit C. Mehta in a note.

At 11:29 am, Bombay Stock Exchange’s Sensex was at 17,507.55, down 0.11 per cent or 19.38 points, slipping from a high of 17,688.73 in trade so far. The low was 17,373.69.

National Stock Exchange’s Nifty was down 0.43 per cent or 21.85 points at 5111.40. The index swung between a range of 5173.85 and 5078.25 so far.

Secondline shares took a sharp knock. BSE Midcap and Smallcap Index were down 1.79 per cent and 2.27 per cent, respectively.

Declines in DLF (down 4.24 %), L&T (3.04%), Bajaj Auto (2.47%), Tata Steel (1.86%), HDFC (1.54%), ICICI Bank (1.47%) kept the indices subdued.

Biggest large cap gainers were Infosys (up 4.47%), TCS (3.31%), Satyam Computers (3.26%), Wipro (1.79%), Ranbaxy (1.43%) and Hindustan Unilever (1.08%).

Market breadth on BSE showed 2,005 declines against 433 advances.