Sensex ends below 13K; Realty, Bank, Metal slip 6-8%

It was another day of capitulation, bears hogged the limelight in today's session. Sharp cut seen in realty, banking, metal, power, auto and capital goods stocks. Midcap and small cap stocks crushed very badly. Huge sell off in European markets fueled to negative sentiments. Sensex and Nifty breached their psychological levels of 13000 and 3900, respectively.

Main draggers of both indices were ICICI Bank, Reliance Industries, Reliance Communication, HDFC, SBI, Tata Steel, DLF and ONGC.

Market breadth was extremely weak due to midcap and small cap stocks, which shattered in today's trade; about 488 shares have advanced while 2416 shares declined. Nearly 228 shares remained unchanged.

The Sensex has closed below 13,000 for the first time since April 5, 2007 and Nifty below 3,900 for first time since April 12, 2007. Sensex touched an intraday low of 12,904.09, down 557.51 points or 4.14% as against its previous close. It closed at 12,961.68, down 499.92 points or 3.71%.

Nifty lost 143.8 points or 3.56% to end at 3896.75. It has hit a low of 3878.20, down by 162.35 points or 4% from its previous close.

One of the reasons behind free fall in today's session was selling pressure in European shares. UK average home prices declined 6.3%, which was biggest drop since November, 1992. UK mortgage approvals fell to lowest level in 9 years in May. Consumer confidence deteriorated to lowest level in 18 years in May. Major indices like FTSE 100 fell 2.2%, CAC 40 -2.30% and DAX down 1.7%.

Indian Rupee has declined on the back of rising crude and falling equities. NDF, FIIs, importers and even exporters have been buying dollars. RBI appears to have lowered its support level for the rupee. It was trading at 43.45 per dollar, at the time of writing market report.

Aggressive shorts have seen in Nifty Futures, which added 44 lakh shares in open interest. Nifty futures ended at 81.75 points discount. Aggressive shorts also seen in stock futures, which added 1.1 crore shares in open interest.

Amongst frontliners, Reliance Infra was down 10.54%, Reliance Comm -10.49%, Suzlon Energy - 9.54%, M&M -9.27%, Maruti Suzuki -8.05% and SBI -7.81% while NTPC gained 1.02%, HCL Tech 2.83%, Tata Communication 2.03%.

BSE Midcap Index was down by 244.62 points or 4.54% at 5,141.86 and Small Cap fell 316.85 points or 4.73% at 6,385.11.

Amongst midcap stocks, Shree Precoated, Advanta, Ashapura Mine, Asahi India, Chambal Fert, Rajesh Exports, Consolidated Construction, HEG, Adlabs Films, Ahluwalia, UCO Bank, IFCI and Phoenix Mills were down over 12%.

In the small cap space, Vipul, Lok Housing, HTMT Global Sol, Grabal Alok Imp, Maharashtra Scooters, Diamond Cables, Country Club, Dolphin Offshore, JBF Industries, Ganesh Housing and Alok Industries slipped over 13%.

Worst performer of the day was Realty Index, which crashed by 327.54 points or 7.21% at 4,215.93. Heavy selling pressure seen in HDIL, Phoenix Mills, Ansal Properties, Omaxe, Anant Raj Ind, Indiabulls Real, DLF and Unitech, which tumbled around 6-12%.

Bankex ended with loss of 332.39 points or 5.62% at 5,583.59 due to sell off in Bank of India, Union Bank, SBI, IOB, PNB, Karnataka Bank, ICICI Bank and IDBI Bank were down over 6%.

Metal stocks like JSW Steel, Sesa Goa, Hind Zinc, Jindal Steel, Hindalco, Jai Corp, NMDC, Jindal Saw, Tata Steel and Sterlite Ind beaten down badly, fell 4-13%. Index slid 713.11 points or 5.4% to close at 12,494.19.

Auto Index skid 176.15 points or 4.91% at 3,409.47, as stocks like M&M, Maruti Suzuki, Escorts, Apollo Tyres, Bharat Forge, Ashok Leyland, Hind Motors and Tata Motors lost the road, down 4-9%.

Power stocks have completely thrashed, which includes Reliance Infra, Suzlon Energy, Neyveli Lignite, Lanco Infratech, Reliance Power, GVK Power, Torrent Power and Power Grid Corp, down by 6-10%. Index slipped 95.45 points or 4.24% at 2,156.94.

Oil & Gas Index plunged by 275.44 points or 3.06% to close at 8,733.72 on the back of sharp cut in RNRL, Cairn India, BPCL, IOC, Essar Oil, ONGC and Reliance Ind.

FMCG stocks like United Breweries, Nestle, HUL, United Spirits, Tata Tea, Godrej Consumer, Britannia and ITC crashed. Index fell 58.89 points or 2.83% at 2,021.44.

Capital Goods finished with a loss of 336.38 points or 3.34% at 9,744.31, as huge sell off seen in Astra Microwave, Bharat Bijlee, BEML, Punj Lloyd, Bharat Elec, ABB, Alstom Projects and Siemens.

Telecom stocks like Reliance Comm, TataTeleservices, Idea Cellular, MTNL and Bharti Airtel crumbled.

Healthcare index lost 90.34 points or 2.17% at 4,073.99, as stocks like Matrix Lab, Dishman Pharma, Wockhardt, Glenmark, Biocon, Panacea Biotech, Novartis India, Ranbaxy Labs and Aurobindo Pharma have knocked down.

Technology space also caught under selling pressure that includes stocks like Aptech, I-Flex Solution, Mphasis, Wipro, Patni Computer, Tech Mahindra, Infosys and TCS. Index plunged 69.87 points or 1.74% at 3,949.95.

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

Turnover traded by the markets stood at Rs 64,986.98 crore. This includes Rs 12,064.19 crore from NSE Cash segment, Rs 47,969.80 crore from NSE F&O and the balance Rs 4,952.99 crore from BSE Cash segment.

On the global front, Asian indices ended lower barring Jakarta. Shanghai Composite fell 3.09%, Taiwan Weighted -1.54%, Kospi -0.51%, Straits Times -1.38% and Nikkei -0.13%. However, Jakarta was up 1.26%.

Markets Snapshot

• Markets continue to slide on back of weak global cues and buyers strike in the market
• Sensex closes below 13,000 for the 1st time since Apr 5, 2007
• Nifty closes below 3,900 for the 1st time since Apr 12, 2007
• CNX Midcap Index closes below 5,000; corrects around 50% from all-time high
• Sensex ends down 557.5 pts at 12904; Nifty down 144 pts at 3896.7
• Huge selling pressure seen in broader markets; CNX Midcap down 4.7%, BSE Small-cap Index down 4.7%
• BSE Realty Index down 7.2%; Unitech down 5.6%, DLF down 6.7%
• BSE Bank Index down 5.6%; ICICI Bank down 6.5%, SBI down 7.7%, PNB down 6%
• Index Losers; R Comm, Rel Infra down 10.5%, Suzlon down 9.5%, M&M down 8.4%, MUL down 7.3%, HDFC down 6.4%, Cairn India down 5.7%
• Today's Listing; Sejal Architecture closes at Rs 78.8 Vs listing price at Rs 137.85
• Buzzers; IFCI down 13.5%, RNRL down 9.1%, Chambal Fert down 14.2%, Ispat down 11.3%, Nag Fert down 11.2%, JP Ass down 6.4%
• NSE Advance Decline at 1:10
• Total market turnover at Rs 64986 cr Vs Rs 56,740 cr on Monday
• F&O turnover at Rs 47970 cr Vs Rs 40591 cr on Monday
• Stocks at 20% down circuit
  Pyramid Saimira
  Niraj Cement
  Vipul
  Lok Housing
  Bafna Pharma
  Fiem Ind
  HTML Global
  AMD Metplast
• Recent IPOs
  Niraj Cement down 20%, went to high of Rs240
  Aishwarya Telecom down 5%; went to high of Rs 135
  Tulsi Extrusion down 13%; went to high of Rs 145
  GSS America down 8.5%; went to high of Rs 865
  Anus Lab down 10%; went to high of Rs 470

F&O Snapshot

• Aggressive shorts in Nifty Fut; adds lakh shares in 44 lakh shares in OI
• Nifty futures end at 81.75 pts discount
• Aggressive shorts in stock futures; stock fut adds 1.1 cr shares
• Telecom, Real Estate, Banks & Power stocks sees aggressive short build up
• Aggressive call writing in Nifty call 4000 & 3900 strike price
• Option Activity
  Nifty 4000 call adds 7.9 lakh shares
  Nifty 3900 call adds 4.6 lakh shares
  Nifty 4100 put sheds 6 lakh shares
• Aggressive Shorts :
  Cairn dn 5.4%; adds 10.2 lakh shares OI
  Cairn 240 Put add 10 lakh shares in OI
  Rcom  dn 9.8%; adds 8.5 lakh shares
  Rnrl dn 9.7%; adds 8.1 lakh shares
  Essar Oil  dn 3.5%; adds 6.9 lakh shares
  Suzlon dn 9%; adds 6.1 lakh shares
  Icici Bank dn 6.7%; adds 4.6 lakh shares
  Others: Bharti, Power Grid, Tata Steel, Idfc, Hul , Unitech  ,Alok Balrampur Chini, Jp hydro

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