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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Market in a nutshell

• Weighed down by the repo rate hike and weak global cues, markets plunged on opening. Selling was witnessed in the early session but did not last long. Most of the banking stocks had their opening price as the low of the day.
• Sustained buying was witnessed in the banking stocks through out the day which supported the index in its journey back to the green. Nifty recovered from the low of 4392 (down 2.9%) to a positive closing of 4539.35 (up 35 bps).
• The announcement of industrial production growth at 7%, injected optimism in the bourses. Sensex finally closed at 15,250 (up 65 points) while Nifty closed at 4,539.35 (up 16 points).
• Index heavy weights like Reliance, Bharti, Reliance Infra, BHEL and most of the banking stocks witnessed buying throughout the day.
• Nifty June futures continued to trade at a discount with the discount widening to 35 points as against 27 points yesterday. Nifty Futures OI has increased slightly by 1.4% today. All these factors clubbed together indicate that today’s recovery in the Index was on the back of pure cash buying in the heavy weights and beaten down banking stocks. Index futures played a muted role.
• BSE Oil and Gas Index advanced 1.5% to 9,975, with Aban Offshore up 6% to INR 3,633. BSE Capital Goods Index gained 1% to 11,990, with Praj rallying 6% to INR 193.
• Market breadth was almost neutral with an Advance : Decline Ratio of 1.2:1. Rajesh Exports soared 9% to INR 80, while JSW Steel declined 7% to INR 997.
• Cash volumes were at INR 198,464 mn (NSE+BSE) as against a 5 DMA of INR 191,987 mn. F&O volumes were at INR 523,335 mn as against a 5 DMA of INR 503,818 mn.

Eye Catchers

• Pantaloon surged 8.5% to INR 432 with volumes of 640,977 (up 790%).

Market News

• Rupee was stable at INR 42.85 against the dollar.
• Nymex crude rose to trade at $134.78/ bbl. Base metals were trading on a weak note, with lead leading the pack of losers down 4%.
• The industrial production growth in April stood at 7%.

Indices Performance

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Market in a nutshell

• Contrary to the drastic declines witnessed in the past few sessions, local bourses commenced the day on an exuberant note. Throughout the session, the broader indices traded within a narrow range and managed to sustain at the high levels. Sensex closed at 15,185 (up 296 points) while Nifty closed at 4,524 (up 74 points).
• Nifty June Futures were trading at a discount of 20 points to spot at the beginning of the session, which increased to 30 points as the session progressed.
• BSE Realty Index advanced the most up 3% to 5,804, with DLF rallying 6.5% to INR 511. BSE Bankex climbed 2% to 7,018, with HDFC Bank gaining 5% to INR 1,185.
• Market breadth was positive with an Advance: Decline Ratio of 3:1. Bombay Dyeing was up 9% to INR 723, while Air Deccan surged 7% to INR 104.
• Cash volumes were at INR 185,089 mn (NSE+BSE) as against a 5 DMA of INR 196,265 mn. F&O volumes were at INR 457,759 mn as against a 5 DMA of INR 509,023 mn.
• Among other key market developments, Ranbaxy has announced that Daiichi Sankyo would be buying ~35% stake held by Ranbaxy’s promoters for a price of INR 737 per share, with the acquisition expected to be completed by March 2009. As a result of this Daiichi would make an open offer for 20% additional stake. This stake sale will also trigger an open offer in Zenotech Labs in which Ranbaxy has a stake of 44%.

Eye Catchers

• Shipping Corporation was up 7% to INR 256 with volumes of 933,103 (up 340%).

Market News

• Rupee strengthened to trade at INR 42.85, due to increased dollar supplies.
• Nymex crude eased further to trade at $133.62/ bbl. Base metals were trading on a weak note, with zinc losing 2.5%.

Indices performance

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Market in a nutshell

• Markets opened with a negative gap, and continued sliding as the session progressed. The final hour saw some amount of muted recovery with Sensex finally closing at 14,889 (down 177 points), while Nifty closed at 4,450 (down 51 points).
• Nifty June Futures were trading at a discount of 20 points to spot at the beginning of the session, which increased 30 points as the session progressed.
• Nifty Futures open interest increased by 3.5% indicating fresh shorts being built up during the course of the day. Towards the latter half, short covering was witnessed, resulting in the Nifty discount narrowing down to 10 points.
• BSE IT Index declined 3% to 4,284, with Infosys slacking 3% to INR 1,849. BSE Bankex sunk 2.5% to 6,862, with HDFC Bank falling 4.5% to INR 1,131.
• Market breadth was negative with an Advance: Decline Ratio of 1:2. Hinduja Ventures tumbled 9% to INR 239, while Tech Mahindra plunged 7% to INR 739.
• Cash volumes were at INR 191,205 mn (NSE+BSE) as against a 5 DMA of INR 194,571 mn. F&O volumes were at INR 538,933 mn as against a 5 DMA of INR 482,133 mn.

Eye Catchers

• Canara Bank retreated 6% to INR 186 with volumes of 958,346 (up 240%).
• Ranbaxy advanced 7% to INR 561 with volumes of 13,582,227 (up 250%).

Market News

• Rupee was steady at INR 42.96.
• Nymex crude eased a bit to trade at $135.18/ bbl. Base metals were trading on a mixed note, with zinc up 1%.
• HDFC posted a consolidated net profit of INR 27.13 bn for the year ended March 31, 2008 as compared with INR 17.42 bn in 2007.

Indices performance

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