Monday 11 February 2008

Sensex dwn 834 pts at 16,631; Nifty dwn 263 pts at 4857

Markets on Monday showed a sharp correction in the market on Reliance Power's listing. Reliance Power closes 20% off issue price, never went above it. Nifty closed below 200 DMA, only 2nd time in last 4 years. Sensex was down 834 points at 16,631. Nifty closed down 263 pts at 4857. CNX Midcap Index was down 5.6%, BSE Small Cap Index was down 4.8%.

Only BSE IT Index bucked the trend was up 0.1%; Satyam was up 3.6%, Infosys was up 0.4%, BSE Oil & Gas was down 7.1%; GAIL was down 9.3%, RPL was down 7.6%, ONGC was down 5.5%, Reliance was down 6.2%, BSE Realty Index was down 6.3%; Unitech was down 10.5%, DLF was down 2.8%, BSE FMCG Index was down 5.6%; HUL was down 8.1%, ITC was down 6.4%, BSE Metals Index was down 5.6%; SAIL was down 8%, Nalco was down 7.2%, Hindalco was down 4.9%, Power sector hit the most were Rel Energy was down 18.7%, Tata Power was down 11.4%, NTPC was down 6.8%, NSE Advance-Decline stood at 1:19, turnover was at Rs 64,236 cr provisional figure.

F&O Snapshot
Turnover remained low. Nifty stood at 70 points discount. No major volume was seen in Reliance Power. Unwinding was seen in some, buildup was seen in some selected stocks.
RNRL added 22 lakh shares in Open Interest. Ispat added 16 lakh shares in Open Interest. Essar Oil added 8 lakh shares in Open Interest. IFCI sheded 11 lakh shares in Open Interest.

First Global said On CNBC-TV18 that " No way Reliance Power could have listed around Rs 900/sh levels. Most investors bought the Rel Power to flip with huge investments. Sensex likely to go down by another 20% by end of the year. Can't expect compounded annual growth rate of 30-35%. We may be heading into cyclical bear market, not a structural one. Global situation likely to worsen. India has run way ahead of itself. Real estate demand likely to soften, will suffer more as it's a high beta sector. Many real estate stocks may fall much more before reasonable value emerges. Market likely to reward value more than growth in 2008. Value plays like IT, banks, sugar have performed better recently.