A1FS Views

Market in a nutshell

• Markets opened weak and traded within a narrow range with a negative bias, throughout the day. Sensex finally closed at 15,190 (down 61 points) while Nifty closed at 4,517 (down 22 points).
• Nifty June Futures were trading at a discount of 30 points to spot for major part of the session, which increased to 35 points during the last hour.
• BSE Consumer Durable Index advanced 2% to 3,982, with Rajesh Exports surging 9% to INR 86. BSE Realty Index sank 2.5% to 5,670, with DLF down 4% to INR 480.
• Market breadth was almost neutral with an Advance: Decline Ratio of 1:1. Chambal Fertilisers climbed 10% to INR 91, while Tata Communications fell 5% to INR 422.
• Cash volumes were at INR 177,610 mn (NSE+BSE) as against a 5 DMA of INR 187,329 mn. F&O volumes were at INR 410,034 mn as against a 5 DMA of INR 506,449 mn.
• It was a bad week on the bourses with both Sensex and Nifty down 2.5% each. It would have been even worse had the indices not recovered after a very poor showing on the first three days. Short covering came to the fore as a recovery was led by banking stocks in spite of the RBI decision to hike repo rates. This could be attributed in part to the fact that the markets were already expecting this hike and partly to April IIP numbers being much better than the March figures.

Eye Catchers

• Iflex surged 8.5% to INR 1,321 with volumes of 236,670 (up 360%).

Market News

• Rupee fell to trade at INR 42.94 against the dollar.
• Nymex crude rose to trade at $135.66/ bbl. Base metals were trading on a weak note, with lead leading the pack of losers down 2.5%.
• Inflation rose to 8.75% for the week ending May 31, 2008.
• Powergrid will seek a fresh loan of INR 24 bn from the World Bank and the Asian Development Bank to fund its mega transmission projects, including those relating to the ultra mega power projects.

Indices performance

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