Rising oil, political uncertainty thrash mkts; Realty dn 7%

It was a sharp cut across the sectors on the back of rising crude oil price, political uncertainty and institutional selling. Rate sensitive sectors like realty, banking and auto have butchered very badly. Other culprits were cement, power, capital goods and oil. Weak global indices also added to negative sentiments. The Nifty slipped below 4050 and Sensex below 13500, which hit April 2007 low as well.

Crude oil price has hit USD 143.67 a barrel on the NYMEX on the back of problems in Middle East countries. It is likely to cross USD 150 a barrel in few days, say experts. This will increase inflation worries across the globe. Declining US dollar is also one of the reasons for rising crude oil.

Left parties have threatened UPA government that they will withdraw support if the government goes ahead with nuclear deal. If this happens then that will be call for early elections in India.

Institutional investors also sold out some of their exposures in today's session. Nifty futures discount widened to 80 points, which added 33 lakh shares in open interest. Aggressive shorts have seen in stock futures. More than 64% of F&O stocks have negative cost of carry. Aggressive writing seen in Nifty call options.

The Sensex has hit an intraday low 13,405.54, before closing the day at 13,461.60, down 340.62 points or 2.47%. The Nifty fell 96.1 points or 2.32% at 4021.70 after touching a low of 4021.70.

Amongst frontliners, Reliance Infra plunged -11.47%, ACC -9.80%, BPCL -9.67%, PNB -7.16%, ABB -7.09%, Ambuja Cements -6.83%, Grasim -6.66% and DLF -6.60% while NALCO gained 5.02%, Sun Pharma 4.45%, Sterlite Ind 3.07%, ITC 2.23%, Hindalco 1.97%, Infosys 1.59% and Jaiprakash Associates 0.84%.

Market breadth has worsened; about 637 shares have advanced while 2261 shares declined. Nearly 234 shares remained unchanged.

Reliance Industries, DLF, Reliance Communication, Bharti Airtel, SBI, ICICI Bank, HDFC, ONGC and L&T were draggers of indices.

Worst performer of the day was Realty Index, which plunged 6.81% or 331.78 points at 4,543.47. Huge selling has seen in HDIL, Indiabulls Real, Peninsula Land, Parsvnath, Ansal Properties, Unitech, DLF, Sobha Developers, Omaxe and Phoenix Mills, crashed 5-10%.

Oil & Gas stocks also knocked down heavily, which includes Essar Oil, RNRL, BPCL, HPCL, Reliance Ind, Petronet LNG, IOC, GAIL and ONGC. Index fell by 378.47 points or 4.03% at 9,009.16.

Power Index lost 3.55% or 82.87 points to close at 2,252.39 due to selling in Reliance Infra, Lanco Infratech, GMR Infra, Suzlon Energy, GVK Power and Reliance Power.

Banking stocks have hammered a lot, which includes Yes Bank, PNB, Kotak Mahindra, IOB, SBI, Axis Bank and ICICI Bank. Index went down 209.97 points or 3.43% at 5,915.98.

Capital goods have smashed out completely, index fell 361.45 points or 3.46% at 10,080.69 due to sell off in Gammon India, Bharat Bijlee, BEML, ABB, Alstom Projects, Siemens and L&T. L&T has received order worth Rs 1557 crore and BHEL got 2080 crore order from Syria power plant.

Auto stocks like Tata Motors, Escorts, M&M, Hind Motors, Apollo Tyres, Ashok Leyland and Maruti Suzuki lost the road. Index was down 104.30 points or 2.83% to settle at 3,585.62.

Telecom stocks like Reliance Comm, Idea Cellular, TataTeleservices, Bharti Airtel, MTNL and Tata Comm also tumbled.

Metal Index plunged 0.64% at 13,207.30 as sell off seen in Ispat Industries, JSW Steel, NMDC, Jindal Steel, Jindal Saw, SAIL and Sesa Goa.

BSE Midcap crashed by 172.27 points or 3.10% at 5,386.48 and the Small Cap fell 236.11 points or 3.4% at 6,701.96. Amongst midcap stocks, Deccan Aviation, Gammon India, HEG, Brigade Enterpr, UB Holdings, Balaji Telefilm, MindTree, Usha Martin, Rajesh Exports, Chambal Fert and KS Oils declined 10-14%.

In the small cap space, Themis Medicare, Lok Housing, Vakrangee, Hind Dorr-Olive, Polaris, Geometric, ETC Networks, Alok Industries, Nahar Industrial, Sujana Towers, Borosil Glass, Greenply Ind, Mahindra Forg, Bajaj Electric and Ganesh Housing fell 10-13%.

However, IT Index gained 0.38% at 4,019.82 due to buying in Financial Tech, Infosys, Tech Mahindra and I-Flex Solution. However, Aptech, Patni Computer, Mphasis, Wipro, HCL Tech, TCS and Satyam lost ground.
 
Pharma stocks like Matrix Lab, Sun Pharma, Dr Reddy's Labs and Glenmark have jumped up. Index rose 0.34% at 4,164.33.

FMCG Index was up 0.35% at 2,080.33 on the back of buying in Nestle, ITC and Godrej Consumer. However, selling seen in Dabur India, Marico, United Brewerie, Ruchi Soya and Britannia.

Most active counters on the bourses were Reliance Industries, Reliance Petroleum, ICICI Bank, L&T, Reliance Communications and Reliance Infra.

Turnover traded by markets stood at Rs 56740.53 crore. This includes Rs 11441.03 crore from NSE Cash segment, Rs 40590.90 crore from NSE F&O and the balance Rs 4708.60 crore from BSE Cash segment.

On the global front, Asian markets ended weak. Shanghai fell 1.16%, Nikkei -0.46%, Kospi -0.57% and Taiwan Weighted -0.33%. However, Hang Seng was up 0.01% and Straits Times 0.21%. European markets were trading lower, at the time of writing market report. CAC 40 was down 0.92% and DAX fell 1.3%. FTSE 100 went up 0.25%.

Markets Snapshot

• Markets continue to slide on rising crude prices, weak global indices
• Most Asian markets close in the red, Europe slips after opening flat
• Sensex, Nifty close at their lowest levels since April, 2007
• Sensex ends down 341 pts at 13462; Nifty ends down 96 pts at 4040
• CNX Midcap Index down 3.3%; BSE Small-cap Index down 3.4%
• Real estate, oil, bank, & capital goods stocks among worst performers
• BSE Realty Index down nearly 7%; DLF down 7%, Unitech down 6%, IBREL down 9%
• BSE Oil & Gas down 4%; ONGC down 2%, RIL down 4%, BPCL down 10%
• BSE Capital Goods down 3.5%; L&T down 4%, Siemens down 6%
• BSE Bank Index down 3.4%; ICICI Bank down 3.4%, SBI down 4.3%, PNB down 7%
• Cement stocks slide; ACC down 9%, Ambuja Cem down 7%, Grasim down 5%
• Index Losers: Rel Infra down 12%, ABB down 7%, Rel Comm down 6.5%
• Non-index Losers: RNRL down 11%, IFCI down 9%, Chambal down 10%, Ispat, IDFC down 9%, GMR Infra down 9%, Essar Oil down 11%, India Cem down 7%, Nagar Fert down 6%
• NSE Advance Decline at 1:6
• Total market turnover at Rs 56,740 cr; F&O turnover at Rs 40591 cr

F&O Snapshot

• Nifty futures discounts widens to 80 points, adds 33 lakh shares in OI
• Aggressive shorts in stock futures; cash selling in illiquid F&O stocks
• Aggressive shorts seen in Real Estate, Airline, Cement & Oil & Gas stocks
• More than 64% of F&O stocks have negative cost of carry
• Lower than average volumes; NSE F&O turnover at Rs 40590 cr
• Aggressive writing in Nifty call options
• Options:
  Nifty 4200 call options adds 5.2 lakh shares
  Nifty 4100 call options adds 5 lakh shares
  Nifty 4300 call options adds 3.8 lakh shares
• Fresh Shorts:
  IDFC dn 9%; adds 18.5 lakh shares
  Suzlon dn 6.7%; adds 16.2 lakh shares
  Unitech dn 6.5%; adds 16.1 lakh shares
  RCom dn 7.1%; adds 13.1 lakh shares
  RNRL dn 12.7%; adds 12.8 lakh shares
  DLF dn 7%; adds 7.3 lakh shares
  Essar Oil dn 12.1%; adds 6.7 lakh shares
  SAIL dn 3.9%; adds 7.5 lakh shares
• Illiquid F&O stocks:
  Edelweiss dn 14%; adds 27 thousand shares
  Deccan Air dn 13.4%; adds 69 thousand shares
  Jet Air dn 11.3%; adds 19 thousand shares
  Brigade dn 10.4%; sheds 7 thousand shares

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