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The Satyam story continued for the current day and indices ended lower for second consecutive day. Market ended lower after a volatile session and closed well above from their Intraday lows. After a shaking trade of Wednesday, market resumed its trade on week last trading day Friday on after Thusday national holiday. Indices opened the day on a negative note with a loss of 152.03 points, at 9,434.85 on Friday by geting weak US market clues and weak asian opening . Stocks of oil exploration, capital goods, metal, telecom, and select power and banking companies witnessed a steep fall. The sell-off was also seen in broader indices. However, frontline technology, FMCG, OMCs and select auto stocks remained on the higher side.
The Sensex ended the day with a loss of 180.41 points, or 1.88% at 9,406.47 after touching a high of 9,630.40 and a low of 9,250.82. The broad-based NSE Nifty fell 47.40 points, or 1.62% at 2,873.00 after hitting a high of 2,929.85 and a low of 2,810.25. BSE Midcap index declined 2.41% and Smallcap index dropped 2.92%.
Inflation :
India`s benchmark Wholesale Price Index (WPI), inflation continued its southward journey declining further for the ninth consecutive week. Inflation for the week-ended December 27 came in at 5.91% compared to 6.38% last week. There was a fall of 0.23% fall in the Inflation on compared to last week. This was better-than-expectations, as CNBC-TV18 poll saw inflation for week-ended December 27 coming in lower at 6.11%. WPI for week-ended November 1 is revised to 8.7% vs 8.98% .
Sectoral :
A bad day for market due to satyam event also spread on sector across. For the second consecutive day in row Metal and Realty indices ended their day as worst performing indicesBSE Metal dropped 7.16% followed by BSE Realty (down 5.15%), BSE CG (down 4.70%), BSE Oil & Gas (down 2.81%), BSE CD (down 2.40%) and BSE Power (down 1.99%), while BSE FMCG (up 1.22%), BSE Auto (up 1.01%) and BSE IT (up 0.18%). On stock specific on SENSEX, TCS ( up 6.34% at Rs535.65 )and HUL ( up by 4.79% at Rs263.50 ) were the top gainers among sensex stocks. On the lossing side Satyam plunged ( 40.30% at Rs23.85 ) followed by R Com, losing 9.61% at Rs186.65 .
NTPC, M & M , Maruti Suzuki India, Wipro, Grasim Industries, HDFC, ITC, Infosys and HDFC Bank ended with modest gains.
Metal stocks were hit hard and dropped sharply as on the news of de-rating of POSCO stock by Goldman Sachs to Neutral from buy. The metal index slashes 7.16% or 401.38 points to 5203.86 . Welspun crumbled by 10.16% at Rs91.55, SAIL lost 9.02% at Rs79.20, Hindustan Zinc shed 8.76% at Rs383.35 and NMDC declined by 7.83% at Rs145.95. Sesa Goa, Jindal Saw, Ispat Industries, Jai Corp and Nalco were down over 5-4% each.
Realty Index plungged on the news of DLF CFO Mr. Ramesh Sanka resigned from the company and sold his 1 lakh shares given to him thru ESOP. Later , this ESOP news was confirmed but Mr. Sanka denied any report of resignation. After the news of Mr. Sanka resignation, stock fell from 244 mark to mere 144 mark which is its 52 week low , but after deney of this market report stock gets its stauts back by recovering more than 50% and ended with a loss of 7.25% . Realty Index was down by 101.11 points or 5.15% at 1,864.09.
Capital Goods Index fell 329.35 points or 4.7%, to close at 6,679.42. The hot news of sector was re-rating of Engenering gain L&T to Neutral from Overweight by HSBC. The Analyst also cut target price to Rs 882 from Rs 1,250, the stock was down 7.15%. BHEL fell 1.61%.
Punj Lloyd tumbled 16.64%, as its wholly-owned UK subsidiary, Simon Carves (SCL), has commenced adjudication proceedings against SABIC Petrochemicals UK (SABIC). These proceedings are ultimately aimed at seeking restitution of 28.5 million pounds sterling or Rs 220 crore through the UK Courts.
Siemens went down 12.38 % and closed at 261.20, as Siemens India is going to sell 100% stake in IT subsidiary to Siemens AG Arm.
Oil & Gas Index took a knock due to downtrend in oil exploration stocks, down 2.81% or 166.82 points at 5,777.59. Reliance Petroleum, Reliance Industries and ONGC were down 2.9-4.6%.
Power stocks like GMR Infra, Reliance Infrastructure, Tata Power and Reliance Power fell 5-8%. Power Index lost 36.24 points or 1.99%, to 1,780.87. However, CESC gained 6.58% and NTPC rose 4.03%.
Bankex tumbled 107.88 points or 1.97%, to 5,381.36. ICICI Bank was down 2.82% and SBI down 1.84%. Axis Bank and Kotak Mahindra fell 5-7%. HDFC Bank rose 0.12%.
Telecom stocks have also seen selling pressure. Reliance Communication tanked 9.61%. Idea Cellular fell 6.82%. Tata Communication fell 3.48% and MTNL was down 2.915. Bharti Airtel lost 1.84%.
There was mixed picture in auto space, though Index was up by 25.19 points or 1.01% at 2,523.51. Hero Honda, M&M and Maruti Suzuki shot up 3.5%. However, Tata Motors lost 5.44% and Bharat Forge fell 2.03%.
If there was a interest on buying, then it was on IT stocks, but the trend was only visible in major technology stocks. TCS went up 6.34% and Wipro up 3.02%. Infosys was up 0.67%. BSE IT Index gained just 3.83 points at 2,131.99. However, other technology stocks were under pressure.
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