Tuesday 22 January 2008

Mkt recovers sharply after hitting 10% lower circuit

Market recovers sharply after hitting 10% lower circuit in opening trade. Sensex poses second biggest intra-day swing at 1736 points. Sensex ends down 875 points at 16730; recovers around 1400 points from days low. Nifty ends down 310 points at 4899; recovers around 450 points from days low. CNX Midcap ends down 7.2% while BSE Smallcap ends down 7.5%. BSE Oil & Gas was down 10.1%, in which ONGC was down 14%, RPL was down 14.5%, Reliance was down 7.2%. BSE Realty was down 9.1%, in which Unitech was down 15% and DLF was down 3.9%.

Nifty gainers were Nalco, up 2.6%, Bharti Airtel, up 1.6%. Other Index losers were Tata Power, down 12.7%, PNB, down 10.8%, Hindalco, down 10.5%, Cairn India, down 10.1%, ITC, down 9.4%, M&M, down 8.6%, Ambuja Cement, down 8.6%. Midcap gainers were Amara Raja, up 19.7%, Indian Bank, up 8.9%, Bombay Rayon, up 6.2%, Kotak Mahindra Bank, up 4.9%, India Infoline, up 4.9%. Midcap losers were Neyveli Lignite, down 31%, Oswal Chemicals, down 31%, Omaxe, down 30%, Peninsula Land, down 28%, RNRL, down 27%, IVR Prime, down 27%, Bajaj Hindustan, down 25%, Sasken Communication, down 25%, Ispat, down 24%, Deccan Aviation, down 23%. NSE Advance Decline ratio stood at 4:55.

Stock Recovery from Day’s low
Alok Industries 63%
Bombay Rayon 62%
CESC 62%
Titan Industries 59%
Jindal Steel 59%
Aptech 55%
Chennai Petro 54%
Amara Raja 50%
RNRL 48%
Pantaloon 46%
TVS Motor 46%
Patel Engineering 45%
Rajesh Exports 45%
Essar Oil 44%
Triveni Engineering 43%
Aurobindo Pharma 42%
Aban Offshore 41%
Adlabs 40%

FNO Snapshot:

Nifty futures trade at 20.7 points premium Vs disocunt of around 40-50 points during the day. Nifty futures shed 7.3 lakh shares in OI; was cutting around 40 lakh shares at one point of time. Nifty discount comes down end on account of short covering. Highest Stock Futures OI cut ever, surpassing yesterdays figure. Low F&O Turnover as primarily unwinding of positions takes place. Action concentrated around Cash Market. F&O Turnover was at Rs 44307 crore vs Rs 82241 crore yesterday. Sterling Biotech, Nagarjuna Construction, M&M, PNB and United Spirits saw OI addition. 47 F&O stocks were down over 20%.

Turnover concentrated in:

Turnover (Crs) % of Total F&O Turnover
S&P CNX Nifty 17497 39%
Reliance Industries 2242 5%
Reliance Energy 1558 4%
Reliance Natural 1202 3%
Reliance Petroleum 958 2%
Reliance Communication 885 2%
Reliance Capital 714 2%

Major Unwinding:

Stock OI (Crores)
Reliance Natural -1.9
IFCI -1.3
Reliance Petroleum -1.2
Power Grid -1.1
Ispat Industries -1.1
Ashok Leyland -1.1
Tata Tele (Mah) -0.8
NTPC -0.8
IDFC -0.8
Jaiprakash Associates -0.7
GMR Infrastructure -0.7
SAIL -0.5
IDBI -0.4
Reliance Communication -0.4
MRPL -0.3
Petronet LNG -0.3
MTNL -0.3
Jaiprakash Hydro -0.3
ITC -0.3
Idea Cellular -0.2
Hindalco -0.2
Reliance Energy -0.2
Tata Steel -0.2
Chambal Fertiliser -0.2
Reliance Industries -0.2
Neyveli Lignite -0.2

Biggest Losers:

Stock % Change Lakh Sharse (OI )
Brigade Enterprises -37.21 -1.4
Oswal Chemicals -33.33 -13.3
Neyveli Lignite -33.05 -18.9
IVR Prime -32.39 -2.3
Sasken Communication -31.61 -1.1
Peninsula Land -31.34 -5.9
Wire & Wireless -28.02 -16.7
Strides Arcolab -27.73 -0.6
Omaxe -27.03 -1.2
Reliance Natural -26.63 -193.8
Bajaj Hindusthan -26.43 -14.1
Polaris -26.1 -3
Ispat Industries -26.08 -110.6
Chambal Fertiliser -25.65 -19.7
Balrampur Chini -24.91 -11.4
MRPL -24.86 -30.8
IndusInd Bank -24.68 -5
SRF -24.18 -1.5
Essar Oil -23.95 -10.5
Escorts -23.95 -2.3
Bata India -23.68 -2
Deccan Aviation -23.44 -7
Jaiprakash Hydro -23.4 -26.5
Jindal Stainless -23.1 -4.6

Global markets today:

Most Asian markets fell around 8% on an average. Hang Seng down 8.5%, Jakarta down 7.5%, Shanghai down 7%. Nikkei ended down 5.7% at 28 month low; biggest one-day loss since the Sept. 11 attacks. Australian stock market suffered its worst one-day fall in more than 10 years, losing $ 96 bn. Nymex crude falls 4% below $ 85/ barrel. Yen hits 2-1/2-year high against the dollar; trading near 106 yen. In Taiwan, FIIs net sell equities worth $ 604.3 million in today’s trade (Prov).

What to look forward?

Dow Jones futures down nearly 550 pts; points to heavy selling in New York later on Tuesday
Earnings from Bank of America & Ambac Finl Group, to watch if there are further writedowns