A1FS Views

 Market in a nutshell

• Following global peers, markets opened in the red. However the real damage was caused at noon with the announcement of the CRR and repo rate hike, which caused the indices to nose dive with Sensex finally closing at 13,792 (down 557 points) and Nifty ending the day at 4,190 (down 142 points).
• Nifty July Futures were trading at a premium of 2-3 points to spot for major part of the session, which increased to 10 points during the final hour.
• Rate sensitive sectors suffered the most with BSE Bankex plummeting 8% to 6,200 and BSE Realty Index falling 5.5% to 4,798 .Bank of India plunged 13% to INR 258, while Unitech lost 6.5% to INR 157.
• Market breadth was negative with an Advance: Decline Ratio of 1:3. IDFC and HDFC Bank both fell 9% to INR 89 and INR 1,029 respectively.
• Cash volumes were at INR 172,937 mn (NSE+BSE) as against a 5 DMA of INR 204,820 mn. F&O volumes were at INR 648,042 mn as against a 5 DMA of INR 538,368 mn.

Eye Catchers

• Sun TV declined 15% to INR 232 with volumes of 1,905,720 (up 1,980%).
• Indian Bank fell 14% to INR 92 with volumes of 1,405,847 (up 620%).

Market News

• Rupee fell sharply to trade at INR 42.69 against the dollar, due to weak equity markets.
• Nymex crude rose to trade at $125.14/bbl. Base metals were trading on a strong note with lead up 5%.
• Call Money rates were at 8.6-8.8%, due to tight cash conditions.

Indices performance

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