Monday, January 21, 2008

Market update - big fall of 1400 points sector wise report

After being one of the best performing market compared to other global peers, Indian bourses turned out to be the worst performing ones in last two trading session. This was one of those weeks where bourses showed constant weakness throughout the 5 trading session marking its first weekly fall in almost four weeks. The weakness was on account of a global sell-off, beginning of the mega 11,200cr IPO and out flow of money by the FIIs and DIIs. According to stats, FIIs offloaded ~ Rs23.97bn and Domestic Institutional Investors (DIIs) sold ~ Rs12.98bn worth of stocks during the week ended January 18, 2008 .
 
 
The sentiments turned so negative not even good quarterly figures by the Indian companies were unable to motivate markets players to start their buying spree. Finally, the benchmark Sensex closed at 19,013 declining 1,814 points or 8.7% and Nifty index dropped 495 points or 8% to close at 5,705 over the week.

Reliance Industries for the second straight session witnessed heavy selling on Friday. The stock was down over 10% during the week to a large extent contributing to the sharp fall in the benchmark Sensex. Private sector lending major ICICI Bank lost over 13.5% and was the second biggest loser among the 30 components of the Sensex. Reliance Energy also cooled off during the week and settled with a loss of over 14.5% the top laggard.  

The top gainer among the 30-scrips of Sensex was only Hero Honda which gained 4.7%

The top losers were Reliance Energy (down 14.5%), ICICI Bank (down 13.5%), NTPC (down 12%), HDFC Bank (down 10.5%) and Reliance Industries (down 10.5%)    

All the BSE sectoral indices slipped over 4% each during the week. The BSE Realty index was the top loser down 10.8% followed by the BSE Oil & Gas index down 8.9% and BSE Bankex index fell 8.9%. The BSE Mid-Cap and the Small-Cap stocks were also badly battered the BSE Small-Cap index was down 4.2% over the week.    

Index

Current Price

% Change

BSE Oil & Gas

           12,595

(8.9)

BSE Pharma

            4,024

(3.8)

BSE Metal

           17,259

(8.0)

BSE Bank

           11,372

(8.9)

BSE FMCG

            2,303

(3.8)

BSE IT

            3,791

(7.6)

BSE-200

            2,470

(7.9)

BSE Small-Cap Index

           12,160

(4.2)

BSE Auto

            5,148

(4.9)

BSE Capital Goods

           18,334

(5.9)

BSE Realty

12022

(10.8)

BSE Power

4299

(8.2)

Realty index (down 10.8%)    After being in demand in the previous week the Realty stocks witnessed heavy profit booking as the index was the top loser among the key sectoral indices. Industry heavyweight DLF lost by over 16% to Rs1,005. Reports had stated that the company formed a joint venture with Gayatri Projects to build roads and highways, HDIL lost 5.6% to Rs1,246, and Sobha slipped 6.7% to Rs887. 

BSE IT index (down 7.6%) IT stocks continued their downtrend after the Q3 numbers failed to turnaround the sentiment for the underperforming sector. The index further slid 7.6% during the week. The index heavyweight TCS fell over 8.5% to Rs904, Satyam Computer dropped 9% to Rs372. Reports stated that the company plans to list on Euronext, Infosys declined 7% to Rs1464. HCL Tech slipped 8% to Rs266. The computer-services provider posted a consolidated profit of Rs3.33bn, up 8.1%. Revenues for the second quarter stood at Rs18.17bn, up 6.3% QoQ. Wipro slipped 6.2% to Rs455. It reported a consolidated net profit of Rs8.54bn for the fiscal third quarter ended December 31, 2007 as against Rs8.14bn in the previous quarter 

Power index (down 8.2%) Power stocks lost further ground on allocation of several power funds to Reliance Power IPO. The BSE Power index fell by 8.2% during the week. Reliance Energy slipped 8% to Rs2124, The Company, along with Anil Ambani purchased 32mn shares of Reliance Power at Rs450 per share reports stated. NTPC fell over 7% to Rs239, Power grid lost 5% to Rs133 and Neyveli Lignite lost 8% during the week.   

Bankex index (down 8.9%) A lot of offloading was also witnessed in the banking stocks ahead of FOMC meet on 29-30th January. HDFC Bank declined 10.6% to Rs1575. The company was looking to recast its wholesale banking structure reports stated and Kotak Bank lost 8% to Rs1130. SBI was down 3% and Kotak Bank fell over 8%.   

The BSE FMCG index (down 3.8%):   Tata Tea fell 6.1%. Britannia was down 3.6%. Nirma lost 2.2%. HUL fell 3%. ITC fell 2.2%. Its Q3 net sales was up 9.2% at Rs34.58bn. ITC Q3 profit at Rs8.31bn (up 15.8%)  

The BSE Healthcare Index (down 3.8%): Sun Pharma fell 5.2%. Glaxo was down 4.03%. Nicholas Piramal fell 2.82%. Pfizer was down 2.53%. Lupin, Wockhardt, Dr. Reddy's was down less than 2%. However, Ranbaxy ended with smart gains after the company announced its Q4 results with net profit at Rs1.88bn and net sales were at Rs17.95bn.  

The BSE Automobile Index (down 4.9%): Maruti fell 4.8%. Tata Motors fell 3.7% while M&M was down 3.3%. Gainers were Hindustan Motors (up 7.5%) and Swaraj Mazda (up 8.6%). 

The BSE Metals Index (down 8%):   JSW Steel was down 5.4%, Tata Steel fell 5% while Bhushan Steel lost 3.3%. The gainers include Sujana Metals (up 12.3%), Jindal Steel and Power (up 4.7%) and Jindal Stainless (up 1.1%). 

The BSE Oil Index (down 8.9%): IOC slipped 6.4%, Reliance Industries fell 5.9%, ONGC was down 4.5% and Cairn India declined 4%. The gainers were Shiv-Vani Oil (up 5.5%), BPCL (up 3.7%) and Great Offshore (up 2.1%) 

The BSE Capital Goods Index (down 6%): Aban Offshore was down 11.5%, Gammon India fell 8.2%, BHEL dropped 5%, ABB slipped 5% and L&T declined 3%. The gainers were BEL (up 0.6%) and Jyoti Structures (up 0.5%). 

The Cement Sector : Prism cement was down 7%, Ambuja Cement fell 4.2%, Kakatiya Cement dropped 3.7% and ACC fell 2.8% The gainers were Gujarat Sidhee cement (up 2.4%) and Chettinad cement (up 1%) 

The Telecom Sector : Bharti Airtel was down 8.5%, Reliance Communication fell 8%, TTML dropped 5.5%, MTNL lost 4.7% and VSNL fell 4.6%. 

US market was pounded over the week, following a grim report on December retail sales and Citigroup's steep quarterly loss. Sentiment received another beating after Merrill Lynch announced almost $10bn loss and another set of weak economic numbers. 

Also, market across Asia were on the receiving end in the week ended January 18, 2008 by a sudden selling deluge following fresh tremors on Wall Street linked to the ongoing sub-prime crisis. Japan 's Nikkei 225 Stock Average dropped 1.8% and Hang Seng index in Hong Kong plummeted 6.2% during the week.    

Major Indices

Current Level

Last   Week Level

% Change

Points

BSE Sensex

       19,013.0

             20,827.0

(8.7)

    (1,814.0)

NSE Nifty

         5,705.0

               6,200.0

(8.0)

      (495.0)

Hang Seng

       25,201.9

             26,867.0

(6.2)

    (1,665.1)

Nikkei

       13,861.3

             14,110.0

(1.8)

      (248.7)

Dow Jones

       12,159.2

             12,853.0

(5.4)

      (693.8)

Nasdaq

         2,346.9

               2,488.5

(5.7)

      (141.6)

Shanghai Comp

         5,180.5

               5,484.6

(5.5)

      (304.1)

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