August series posts worst performance since Oct 2008

25 Aug 2011

The performance of Indian equity benchmarks in the August series will go down as the worst one since October 2008. Bank Nifty which collapsed 16% during the series was the prime cause for the downfall. The 50-share NSE Nifty, which plunged 12%, added to the injury. Global sell-off post European and US debt crisis weighed on the market. Foreign Institutional Investors (FIIs) net sold over Rs 11,000 crore worth of equity shares while Domestic Institutional Investors (DII) bought over Rs 8,000 crore worth of shares. In the October 2008 series, Nifty had fallen around 34% and FIIs had cut their exposure by nearly Rs 18,000 crore.

According to Deven Choksey of KR Choksey Securities, the rollover premium has already moved up very significantly, suggesting that shorts will find it difficult to roll over to the next month (September).

In the month of September, he feels that the market will head towards 4750 level on the Nifty. "Emergence of buying around that 4700-4750 levels could possibly take the market up again to 5000-5100. " He says the outcome of RBI policy meet and the advance tax numbers will be crucial in September. "I would think that the market should be operating in around 4700 on the downside and  around 5100 on the upside next month."

Reliance Capital, Reliance Power, Sesa Goa, Tata Motors, HCL Tech and JSPL had plunged 25-30% while Hero Motocorp surged 5%. Bajaj Auto, BPCL and Ambuja Cements gained 3-5% in the series.

On Thursday, last day of August series, the market closed in the red for the second consecutive session after big rollercoaster ride, mainly led by banking and technology stocks.

The 30-share BSE Sensex fell 138.65 points, to close at 16,146.33 and the 50-share NSE Nifty dropped 49.30 points, to settle at  4,839.60.

Among the sectoral indices, the BSE IT, Metal and Bank indices went down 1.4-2%. The broader indices too followed the same trend - the BSE Midcap and Smallcap lost over 0.8%.

Largecaps like Infosys, HDFC Bank, HDFC, JSPL, SAIL, Axis Bank, Hero Motocorp (goes ex-dividend today at Rs 35/share), Tata Steel, HCL Tech and Jaiprakash Associates tumbled 2.5-5%.

Reliance Industries, TCS, SBI and ICICI Bank were down 1-1.5%.

However, cement, telecom, PSU oil & gas, FMCG and select realty stocks bucked the trend. DLF and Ambuja Cements were top gainers; these stocks gained 3% each.

ONGC, Bharti Airtel, Tata Motors, Sun Pharma, ACC and Reliance Communications moved up 1-1.5%.

Mphasis crashed over 7% after disappointing quarterly results. Company's third quarter net profit was down 10% (QoQ) to Rs 195 crore.

Market breadth was in favour of declines - about two shares slipped for every one share gained. Total traded turnover was more than Rs 2.4 lakh crore.

At 15:05 hours IST : Nifty extends fall; Bank Nifty dives 2%

BSE benchmark has fallen further in the last half an hour of trade. The 50-share NSE Nifty, which has been moving in a range of 4850-4890 since the opening trade, stood at 4,827, down 60 points. The 30-share BSE Sensex fell 177 points to 16,108. The Bank Nifty lost 2%.

Even European markets slipped from their day's high; France's CAC and Germany's DAX were up just 0.5% while Britain's FTSE was in the red.

Among largecaps, Jindal Steel, Jaiprakash Associates, HCL Tech, Axis Bank and PNB were down 3-5%. Tata Steel, HDFC and Hindalco fell 1-2.5%.

However, Tata Motors, ONGC, Tata Power, DLF and Sun Pharma rallied 1-2%. Ambuja Cements shot up 4%.

India Securities, SBI, Lovable Lingerie, Tata Steel, Tulip Telecom, ICICI Bank and Axis Bank were the most active shares on exchanges.

At 14:23 hours IST : Sporadic buying seen in choppy market; IT, banks big losers

Indian equity benchmarks have remained volatile, favouring bears, for almost the entire day despite positive global cues. The 30-share BSE Sensex was trading at 16,229, down 56 points and the 50-share NSE Nifty was at 4,864, down 24 points.

Technology, banking and metal stocks were reeling under selling pressure losing between 0.8% and 1.5%. Jindal Steel, HCL Tech and Jaiprakash Associates were biggest gainers on Nifty; these stocks dropped 4-5%.

HDFC, TCS, Infosys, NTPC, L&T, Axis Bank, HDFC Bank, PNB and Tata Steel fell 1-2%. ICICI Bank and SBI were down 0.5%.

However, ONGC, Bharti Airtel, Sun Pharma, Tata Motors, Ambuja Cements, DLF, Ranbaxy, Tata Motors and Reliance Communications were bucking the trend; these stocks gained 1-2%.

The broader indices like BSE Midcap and Smallcap indices fell 0.6% each. About two shares slipped for every one share gained.

At 13:25 hours IST : Nifty slips; metal, IT, banks, capital goods down

The NSE Nifty witnessed a sudden fall and was trading at low points of the day. However, the Nifty has still managed to hold 4850 mark. Metal, IT and banking stocks slipped while oil & gas and auto stocks have gained. The broader indices were down half a percent each.

Infosys, L&T, HDFC and HDFC Bank were negative contributors to the Sensex while Reliance, ITC, ICICI Bank, Bharti Airtel and ONGC were the positive contributors.

The Sensex was down 110.42 points or 0.68% at 16174.56, and the Nifty down 38.45 points or 0.79% at 4850.45.

About 969 shares have advanced, 1595 shares declined, and 1109 shares remain unchanged.

Top losers on the Sensex were Jindal Steel at Rs 477 (down 3.05%), Jaiprakash Asso at Rs 60.60 (down 2.57%), Tata Steel at Rs 447.50 (down 1.73%), Coal India at Rs 368.55 (down 1.42%) and HDFC at Rs 638 (down 1.23%).

Refinery major HPCL was trading at Rs 382 down 1.37% from its previous close of Rs 387.30.

Tech major Infosys was trading at Rs 2,233.70 down 0.72% from its previous close of Rs 2,249.95.

However, top gainers on the Sensex were Tata Motors at Rs 717.50 up 2.40%, ONGC at Rs 285.40 up 2.26%, Sun Pharma at Rs 473.50 up 1.95%, Tata Power at Rs 1,049 up 1.24% and Maruti Suzuki at Rs 1,125.50 up 0.93%.

Most active shares on NSE were SBI, ICICI Bank, Tata Steel, Axis Bank and L&T.

At 12:40 hours IST :European cues boost sentiment; ONGC rallies 3%

The Sensex and the Nifty made a smart recovery following positive opening of European markets but could not get rid of volatility. The 30-share BSE Sensex was trading at 16,285, up 0.66 points and the 50-share NSE Nifty was trading 4 points down at 4,885. Among European markets, France's CAC, Germany's DAX and Britain's FTSE were up 0.8-1%.

Banking stocks like SBI, HDFC Bank and ICICI Bank showed some recovery, though they were down 0.2-0.5%. Axis Bank and PNB lost 2% each.

Heavyweights TCS, Infosys, HDFC, L&T and Bharti Airtel lost 0.5-1.5%.

However, cement, FMCG and oil & gas and select auto stocks were bucking the trend. Heavyweight Reliance Industries rebounded with 0.7% gain and ONGC extended rally with a 3% rise.

Market breadth was still in favour of declines; about two shares declined for every one share gained.

At 11:52 hours IST ; Sensex dumps 100 pts; ONGC, Sun Pharma survive sell-off

The race to book profits on expiry day has gained momentum. Fresh shorts were built in technology, banking, telecom and Anil Dhirubhai Ambani group' stocks. The 30-share BSE Sensex was trading at 16,179, down 106 points and the 50-share NSE Nifty fell 37 points to 4,852 amid volatility.  

The broader indices too were following the trend; the BSE Midcap Index was down 1% and Smallcap down 0.7%.

On the sectoral front, the BSE Metal and IT indices fell 2% each. Capital Goods, Bank and Power indices were down 1-1.5%.

Leading largecaps like TCS, Infosys, HDFC, L&T, Bharti, SBI, NTPC, Tata Steel, ICICI Bank and HDFC Bank dropped 1-2.5%. Reliance Industries, BHEL and Wipro declined over 0.5%.

However, ONGC, Sun Pharma and Tata Motors bucked the trend; these stocks lost 2-2.5%.

Smallcaps like Sahara One, Carol Info, Kirloskar Brothers, Unisys Software and Thomas Cook gained 5-10% while Modern India plunged 16%. Himatsingka Seide, C & C Construction, Lovable Lingerie, DCM Shriram and fell 6-8%.

At 10:54 hours IST : Sensex falls further amid choppy trade; banks, tech down

The BSE benchmark Sensex slipped more than 50 points and the Nifty fell way below the 4900 level amid choppy trade. Even the market breadth turned in favour of declines; about two shares declined for every one share gained. The 30-share BSE Sensex was trading at 16,208, down 76 points and the 50-share NSE Nifty fell 28 points to 4,860 led by fall in 38 stocks.

Technology, banking, power, capital goods, telecom and Anil Dhirubhai Ambani Group stocks and select metal stocks were witnessing selling presure. Heavyweight Reliance Industries too was on sellers' radar; the stock declined 0.7%.

However, ONGC, Sun Pharma, Bajaj Auto, Tata Motors and Tata Power were top gainers; these stocks gained 1-2%. HUL, Dr Reddy's Labs and DLF too gained.

In the midcap space, Standard Chartered, Simplex Infra, GMDC, Emami and ABG Shipyard were up 1.5-4% while KGN Industries, Sterlite Tech, Educomp Solutions, Aban Offshore and IVRCL slipped 4-5%.

Even some Asian markets saw some profit booking at higher levels. Kospi, which rose 1.5%, was trading 0.5% higher. Even Nikkei slipped from day's high. Taiwan extended loss; it lost 0.9%.

At 10:10 hours IST : Nifty floats near 4875 as RIL, SBI, ICICI dip, Asia thrives

Indian equity benchmarks continued to see volatile trade on expiry day; they were hovering around their previous closing values despite strong Asian cues. The 30-share BSE Sensex was trading at 16,279, down 5 points and the 50-share NSE Nifty was floating down just 10 points to 4,878.

Asian markets, however, moved up further. Nikkei rose over 2%. Shanghai, Hang Seng, Kospi and Straits Times were up over 1.5%.

On the home turf, heavyweights like Reliance Industries, ICICI Bank, SBI and Bharti Airtel lost 0.6-1.4%.

JSPL, Tata Steel, HCL Tech, Axis Bank, Hero Motocorp, Jaiprakash Associates and Reliance Infrastructure were down 2%. Infosys, TCS and L&T were trading with modest loss.

However, ONGC, Sun Pharma, ITC, BHEL, Tata Motors, Bajaj Auto and Dr Reddy's Labs went up 1-2.6%. DLF, HDFC Bank, HUL and Maruti were marginally in the green.

Market breadth was in favour of declines. About 499 shares advanced while 683 shares declined on National Stock Exchange.

At 9:18 hours IST : Sensex volatile ahead of expiry, ignores global cues

A rally in global markets pushed the benchmark Sensex higher in the opening trade, but volatility snipped the upward trend. The 30-share BSE Sensex was trading at 16,327, up 42 points. The 50-share NSE Nifty rose 13 points to 4,901.

The F&O series expires today and experts feel that it may happen in the range of 4800-4900. Among largecaps Tata Motors, IDFC, Reliance Communications, HUL, DLF, Maruti, Tata Steel, Dr Reddy's Labs and Sun Pharma were witnessing buying interest in early trade.

However, HDFC, HDFC Bank, ITC, L&T, Reliance Industries and Hero Motocorp (goes ex-dividend today at Rs 35 a share) were down.

The CNX Midcap rose 22 points to 7,288. About 534 shares advanced as against 320 shares declined on National Stock Exchange.

Mphasis lost 4% post disappointing quarterly numbers.

Deccan Chronicle lost 3% ahead of buyback, which will end today.

SKS Microfinance lost 2.5%.

However, S Kumars, Lovable Lingerie, Aptech, L&T Finance Holdings, Delta Corp, Jubilant Foodworks, Mahindra Satyam, Hexaware, GVK Power and ABG Shipyard rallied 1.5-5%.

Global cues:

Asian markets turned stronger barring Taiwan. Shanghai, Hang Seng, Nikkei, Kospi and Taiwan were up 1.4% each.