Monday 10 March 2008

Sensex dn 52 pts at 15923; Nifty up 29 pts at 4800

Market ended flat amid choppy day of trade. It recovered from day's low on back of rumor of inter-meeting rate cut announcement by Fed. Sensex ended down 52 pts at 15923. It recovered 560 pts from day's low. Nifty ended up 29 pts at 4800. It recovered 180 pts from day's low. CNX Midcap Index was up 0.5%, BSE Small-cap Index was down 2%.

BSE Cap Goods Index was down 4.9% led by L&T after news of hedging losses in subsidiary due to volatile commodity mkts. Cap Goods stocks like L&T was down 8.6%, BHEL was down 5.4%.

Index Gainers were stocks like RPL was up 7.5%, Bharti Airtel up 7.2%, Cairn India up 7%, Bajaj Auto up 5.2%. Among Non-Index Gainers were stocks like GVK Power was up 12%, JP Ass was up 11.3%.(JP Associates to replace Bajaj Auto in Sensex from March 14). NSE Advance Decline at 1:2. Total market turnover at Rs 65717.52 cr. FNO turnover stood at Rs 42402.3 cr. It was around 20% more than last 2 weeks average.

F&O Snapshot
Nifty futures discount at 12 pts. It discount ranges from 45 point sin the morning to 5 points. Nifty driven by short covering; Nifty March Futures add 20 lakh shares in OI. Large Caps driven by short covering and Fresh Longs. Volumes remain low on Mid Cap F&O Stocks.

Fresh Longs:
Fresh Longs were seen in stocks like RPL was Up 9%. It added 31 lakh shares. Positive CoC seen, RNRL was Up 2%. It added 21.54 lakh shares, SAIL was up 2%. It added 17.4 lakh shares. RIL was Up 1.5%. It Added 8.15 lakh shares. JP Associates was up 13%. It Added 10.33 lakh shares.

Mid Caps:
Ispat was Up 3%. It dded 17.6 lakh shares, Nagarjuna Fert was up 3.5%. It added 12.46 lakh shares, IFCI was up 1.5%. It added 9.6 lakh shares, Balrampur Chini was up 2.7%. It added 7 lakh shares. Essar Oil was Up 8%. It Added 6.84 lakh shares.

Short Covering:
Short Covering was seen in stcos like NTPC was up 1.2%. It Sheded 6.25 lakh shares. GMR Infra was up 7%. It Sheded 2.9 lakh shares, Bharti Airtel was Up 5.9%. It Sheded 1.7 lakh shares, ACC was up 4%. It Sheded 1.4 lakh shares.

Fresh Shorts:
Fresh Shorts weres seen in stocks like IDFC, BOI, Unitech, REL. ICICI Bank, Reliance Capital, Bajaj Hind, Satyam Comp, India Cem, Idea Cellular, HUL.

Market Snapshot
Asian markets hit fresh lows albit some markets saw minor recovery on rumors of rate cut announcement today. Hong Kong stocks bucked the regional decline, with index closing up nearly 1%. Kuala Lumpur Index was suspended for an hour as shares plunged 10% after Malaysia's ruling coalition suffered its worst-ever result in weekend elections. Tokyo did hit 30-month low after worse than expected U.S. jobs report data. Shanghai Index was down 3.6% as inflation concerns and weakness in overseas markets rattled investors.

Mkt Rumors
Fed may slash rates later today, ahead of their regular meeting next week. Fed Fund Futures are pricing in 98% probability of 75 bps cut on Mar 18 meeting Vs 74% one day earlier.

Reason for global weakness
Feb non-farm payrolls decrease by 63K (consensus +20K) Vs decrease of 22K in Jan; worst decline since March 2003
US employment falling for two months in a row.

Taiwan Flows
Taiwan FIIs figures showed net sell equities worth $ 530.75 million in today’s trade (Prov). FIIs bought equities worth $ 395 m during last week. Taiwan has been the best performing market YTD with positive retrurns.

Data To Watch
No specific economic release from U.S. market apart from Wholesale Trade Data.