Mkts end lower; telecom, IT, auto, metal, CG stks down

Markets closed in red but managed to show smart recovery in last half an hour of trade. Telecom, technology, auto, capital goods and metal stocks dragged frontline indices lower. Weak global cues also played a key role in todays trade. However, power, banking and select realty stocks managed to bounce back in late trade. Sugar pack remained star performer of the day.

Frontline indices had opened weak and traded sharply lower throughout the day due to renewed credit concerns in US financial space, which is not over yet. Global cues remained subdued. But buying support at lower levels has helped our markets to recover in late trade. The Sensex has recovered over 175 points and Nifty 50 points from days low of 14,368.72 and 4316.55, respectively.

Sensex closed at 14,543.73, down by 101.93 points or 0.70% and Nifty ended with a loss of 24.8 points or 0.56% at 4368.25. BSE Midcap Index fell 0.27% at 5,766.32 and Small Cap index was down 0.34% at 7,012.74.

Amongst frontliners, ACC dropped by -5.78%, Idea Cellular -5.05%, Maruti Suzuki -3.90%, HDFC -3.24%, Satyam -3.21% and Reliance Comm -3.06%. However, Reliance Infra gained 2.26%, Hindalco 2.08%, ICICI Bank 2.01%, NALCO 2.06% and Reliance Petro 1.92%.

Sugar stocks have gained after yesterdays hearing in Allahabad Court, which has annulled the Lucknow Bench order of upholding Rs 125 per quintal SAP for sugar manufacturing. Bajaj Hindustan, Balrampur Chini, KCP Sugar, Rajshree Sugars, Sakthi Sugars, Triveni Engg and Uttam Sugar have gained 3-8%.

However, telecom stocks witnessed selling pressure as TRAI permitted Internet telephony. Idea Cellular, Reliance Comm, Bharti Airtel and TataTeleservice fell 1.6-5%.

IT Index declined by 0.87% at 3,892.26 due to selling in Aptech, Satyam, HCL Tech, TCS, Infosys, I-Flex Solution and NIIT Tech.

Auto stocks like Maruti Suzuki, MRF, Ashok Leyland, M&M and Tata Motors ended negative. Index lost 0.86% at 3,849.33.

Metal Index also closed in red, which fell 0.74% at 12,272.80. Sesa Goa, Sterlite Ind, Ispat Industries, Tata Steel and Hindustan Zinc fell.

FMCG index declined 0.70% at 2,162.85 as selling was seen in Dabur India, ITC, United Spirits and Tata Tea.

Realty stocks like Phoenix Mills, HDIL, Akruti City, Puravankara Pro and Unitech have slipped. Index ended with a loss of 0.27% at 5,117.50.

In the Oil & Gas space, ONGC, Cairn India, Reliance Ind and GAIL closed in red while Essar Oil, Reliance Petro, HPCL, BPCL, IOC and Aban Offshore gained. Crude was hovering around USD 112 a barrel on the NYMEX, at the time of writing market report.

However, Power Index rose 0.26% at 2,615.11 as buying was seen in Reliance Infra, GVK Power, Suzlon Energy, GMR Infra, Torrent Power and NTPC.

BSE Bankex, Healthcare, Capital Goods and Oil & Gas indices closed flat.

Most active counters on the bourses were Reliance Ind, Reliance Infra, ICICI Bank, L&T and Reliance Communication.

Turnover traded in markets was very low, which stood at Rs 56,307.32 crore. This includes Rs 8,920.66 crore from NSE Cash segment, Rs 43,426.67 crore from NSE F&O and balance Rs 3,959.99 crore from BSE Cash segment.

Market breadth was negative; about 1150 shares have advanced while 1573 shares declined. Nearly 440 shares remained unchanged.

On the global front, Asian markets ended in negative terrain barring Shanghai. Hang Seng, Jakarta, Nikkei, Straits Times and Kospi declined 1.7%-2.3%. However, Shanghai Composite rose 1.06%.

European markets also got hammered a lot. FTSE, CAC and DAX plunged over 1%.

Market Snapshot

Markets recover in the last minutes of trade; end at day’s high
Sensex down pts at 14543; off 175 pts from the day’s low
Nifty down pts at 4393; off 52 pts from the day’s low
Nifty Junior down 0.7%, CNX Midcap down 0.3%, BSE Small-Cap Index down 0.3%,
Telecom stocks lose as TRAI permits Internet telephony; Idea down 5.1%, RComm down 3.1%, Airtel down 2.1%, TTML down 1.8%
Nifty Losers: ACC down 5.7%, Maruti down 3.7%, Satyam down 3.5%, HDFC down 3.4%, Unitech down 2%, ITC down 2.1%,
Nifty Losers: Power Grid down 1.9%, HCL Tech down 1.5%, Sterlite Ind down 1.5%, ONGC down 1%, Zee Ent down 1.6%, M&M down 1.1%
Non-Index Losers: Jain Irrigation down 8%, Allied Digital down 8%, Phoenix Mills down 5.6%, Asian paints down 5.4%, Jai Corp down 5%
BSE Bank Index up 0.1%: ICICI Bank up 1.9%, Kotak Mah down 4.2%, PNB down 2.3%, Bank of India down 1%, SBI down 0.9%
Sugar gains: Balrampur up 7.9%, Triveni up 5.4%, Bajaj Hindustan up 4.8%, Shree Renuka up 4.6%
Oil Stocks Recover: MRPL up 3.5%, Essar Oil up 2.5%, RPL up 1.9%, BPCL up 1.8%, Chennai Petro up 1.3%, HPCL up 0.8%
Nifty Gainers: Nalco up 2.1%, Hindalco up 2.3%, Rel Infra up 2.1%, Suzlon up 1.9%, Siemens up 1.6%, Tata Comm up 1%, HUL up 0.8%,
Buzzers: Vishal Infotech up 17%, Megasoft up 15%, Dhanlaxmi Bank up 10%, Jyoti Structures up 8%, Subex up 8%,
NSE Advance Decline at 3 : 5
F&O turnover at Rs 43,427cr Vs Rs 39,680cr
Total Market Turnover at Rs 56,307cr Vs Rs 52,864cr
F&O Snapshot

Nifty futures see aggressive short covering in the latter half of the session
Nifty futures end with a 40 point premium
Sugar Stocks see fresh long build up with increase in COC
Telecom stocks see fresh short positions in today’s trade
Mix of short covering and long build up in Infra & Fertilizer stocks
Rollovers pick up in select stock futures like Hindalco & HPCL
Unwinding continues in Nifty 4500 put option, Writing seen in 4400 call option
Options Activity
Nifty 4500 put sheds 5.2 lakh shares
Nifty 4400 call adds 6.7 lakh shares
Nifty 4600 call adds 4 lakh shares
Nifty Sept 4400 call adds 1.4 lakh shares
Fresh Longs
Sugar: Balrampur Chini, Triveni, Bajaj Hind, Renuka
Misc: MRPL, Punj Lloyd, Chambal Fert, Naga Fert
Fresh Shorts
Telecom: RComm, Idea, Bharti
Misc: Unitech, HDIL, Kotak Bank
Long Unwinding
Polaris, Rel Power