MC: Sensex ends below 9K ahead of fiscal stimulus package
The benchmark indices witnessed profit booking and lost more than half of gains seen on Thursday, ahead of fiscal stimulus package, which is likely to be announced on Saturday. Commodities, technology, banking stocks took beating on the bourses followed by infrastructure stocks, Bharti Airtel, NTPC and DLF. Fall in European markets weighed on our markets as well.
The Sensex closed the day below 9,000 mark. It shut shop with a loss of 264.55 points or 2.87% at 8,965.20. The 50-share NSE Nifty finished at 2714.40, down 73.60 points or 2.64% from previous close.
Huge sell-off was seen in oil refining and marketing companies. On one side crude has been slipping, which is biggest worry for oil refining companies while on the other side, the oil ministry is considering fuel price cut, which is negative for oil marketing companies. Crude January Futures slipped to a USD 43.36 per barrel on the NYMEX and currently, it is trading just above USD 44/bbl.
Merill Lynch is expecting a slowdown spreading to China could take price to $25 a barrel while BNP Paribas estimated support at $40-37 a barrel. So if it happens, then earnings of oil refining companies may get affected in near term. BSE Oil & Gas Index lost 187.35 points or 3.3% to 5,495.33. Reliance Industries, ONGC and Cairn India were down 2.9%-3.94%.
Oil marketing companies were extremely under pressure, as Oil Ministry said that fuel prices may be cut by Saturday. HPCL, BPCL and IOC fell 3.6-6.5%.
Profit booking was also seen in metal stocks. BSE Metal Index lost 164.18 points or 3.42% to 4,639.73. SAIL, Jindal Saw, Hindalco, Sterlite Industries, JSL, Sesa Goa and Tata Steel plunged 2.5-6%.
BSE IT Index underperformed other indices in today's session, down 107.38 points or 4.36% to 2,357.36. TCS, Infosys, Satyam and Wipro fell 2-5%.
Realty and banking stocks also witnessed selling pressure ahead of rate cuts. The street is expecting a 50-100 points cut in reverse repo rate and a 100-150 points cut in repo rate. However, there may be no change in CRR, but banks want only a CRR cut, as it gives more liquidity to banks.
SBI, HDFC Bank and ICICI Bank fell 1.58-2.88%. BSE Bankex was down 95.92 points or 2% at 4,707.45.
Realty Index plunged 61.46 points or 3.5% to 1,692.19. Indiabulls Real and DLF lost 4.9-5.7%. However, Unitech gaiend 1.82%.
Infrastructure stocks also beaten down ahead of fiscal stimulus package, which is likely to be announced on Saturday. BSE Capital Goods Index lost 98.21 points or 1.5% to 6,408.77. L&T amd BHEL slipped 1.4-2.5%.
Power Index was down 27.84 points or 1.66% at 1,648.59. GMR Infra, Reliance Infrastructure, Tata Power, Torrent Power and NTPC plunged 2-4.5%.
Telecom stocks like Tata Communication and Bharti Airtel fell 2.9-3.8%. However, Reliance Communication and Idea were gainers.
Media stocks like IBN18 Broadcast, Zee Entertainment, Sun TV Network, Jagran Prakashan, DeccanChronicle, UTV Software and Zee News were under pressure. However, NDTV surged 14.1%. TV Today and TV18 gained 4.3-5.2%.
FMCG stocks like Britannia, ITC, United Breweries, United Spirits and GlaxoSmith Consumer slipped 1.5-4.5%. Index fell 35.47 points or 1.81% to 1,919.28.
Healthcare Index slipped 25.69 points or 0.9% to 2,823.43. Dishman Pharma, Glenmark, Sun Pharma, Matrix Labs, Ranbaxy Labs and Dr Reddys Labs were losers.
Among the midcap stocks, Bombay Rayon, Praj Industries, BL Kashyap, Jain Irrigation and Chennai Petro fell 7-10%.
However, Auto Index gained just 5.21 points or 0.23% at 2,248.32. Hero Honda, Tata Motors and Maruti Suzuki rose 0.5-1.5%.
Market breadth was weak; about 1282 shares advanced while 1518 shares declined. Nearly 399 shares remained unchanged.
BSE Midcap was down 29.85 points or 1.02% at 2,892.95 and Small Cap Index fell 8.26 points or 0.25% to 3,323.54. Nifty Midcap 50 closed 1167.10, down 2.11%.
On the weekly basis, Sensex and Nifty fell nearly 1.5%. Nifty Junior was up 4.5%. Realty stocks surged; Unitech was up 32% and DLF up 2.5%. BSE IT index was biggest loser in this week, down 7.5%. HCL Tech, Infosys and Satyam fell 7-13.5%. Among the frontliners, Tata Motors and Dr Reddys Labs rose 11%.
Volumes were bit higher than last four days. Total traded turnover stood at Rs 50,79.48 crore. This includes Rs 9,722.8 crore from NSE Cash segment, Rs 36,708.86 crore from NSE F&O and the balance Rs 3,747.82 crore from BSE cash segment.
Global indices were choppy ahead of US November employment report, which analysts speculate will be worst since last quarter. Crude related stocks & base metal stocks saw profit booking. Crude headed for its biggest weekly decline since March 2003.
Asian markets ended mixed. Hang Seng and Kospi rose 2-2.5%. Shanghai and Straits Times gained 0.9%. However, Nikkei, Taiwan and Jakarta lost 0.08-0.7%.
European markets were trading weak. FTSE fell 49 points to 4,113. CAC plunged 83 points to 3,077 and DAX down 102 points to 4,461, at 3:55 hours IST.
US Markets futures are pretty volatile. Dow Jones Futures rose 3 points to 8,405 and Nasdaq Futures gained 1.25 points at 1,136.25. Economists are expecting job cut of 3,40,000 in November after loss of 2,40,000 jobs in October, a biggest drop since 1982.
Market Snapshot
Flat ending for the week; Nifty & Sensex down nearly 1.5% (weekly)
RBI, Govt to simultaneously announce package on Saturday.
Sensex ends down (dn) 264 points at 8965, Nifty ends up 73 points at 2714
CNX Midcap Index up 1.5%, BSE Small-cap Index up 0.25%
Media stocks continues with the uptrend
Oil Marketing Companies dn on expectations of Fuel price cuts
