Markets ended low. Sensex and Nifty down by 0.64% and 0.45%, respectively

Commentary

oi-Shoaib MD

By Shoaib Md

Published: Monday, September 5, 2011, 16:39 [IST]

With the disappointing jobless data declared by US for the month of August, most of the indices around the world adopted a falling stripe. After opening low and tracking global peers, markets recovered a bit as enthusiasm on the part of the investors managed to reduce its losses.

All the Asian markets ended red. Reducing the morning losses, Sensex closed at 16,713.33 level down by 108.13 points or 0.64%. The NSE major index Nifty closed at 5,017.20 dropped by 22.80 points or 0.45%.

Among the Sectoral indices of BSE, Oil & Gas (-1.77), Information Technology (-1.44), TECk (-1.06), Consumer Goods (-0.14), TECk (-0.53), Health Care (-0.66), PSU (-0.56) and Power (-0.42) ended negative.

Sectors which showed gains were Consumer Durables, Auto, Realty, ended higher by 2.44%, 1.30% and 0.81%, respectively.

On the NSE, the most traded stock was Brooks with 443 lakh shares. The stock fell by 38.10%. The next stock which traded with high volumes was Unitech with 407 lakh shares.

The major gainers on NSE were Hero Motors with 5.42% followed by Reliance Capital with 5% and then by Reliance Infra at 4.73%.

Of the Asian indices, all ended low. Japan's Nikkei fell 1.8% to 8,784. Seoul Composite dropped 4.3% to 1,785. Taiwan, Straits and Chinese markets dropped around 2% each. Markets in Europe slipped in line with their Asian counterparts. Markets in Europe will look towards the Central Bank's monthly policy meeting on interest rates on Thursday.

4:30 p.m.

Enthusiasm reduces losses. Sensex was trading at 16,747

Sensex was trading at 16,747.60 at a loss of 73.86 or down by 0.44%. Nifty on the other hand covered to 5012 level and its losses were were mere 27.95 points or down by 0.55%.

Among the indices Consumer durable was still the best performing with 2.42% gains. Other sectoral indices which were in the positive were Auto (1.39%), Capital goods (0.73%), Bankex (0.48%), Realty (0.44%) and Metal (0.31%).

The worst performing index on the BSE was still IT, but it has pared down its losses to -1.59%. Auto, metal and Anil Dhirubhai Ambani Group's stocks were quite supportive.

Reliance Industries and ICICI Bank showed some recovery from day's low; these stocks fell 0.7-1%, respectively. Hero Motocorp maintained its top position; the stock gained 4%. Bajaj Auto, Reliance Communications, Axis Bank, Reliance Capital and Jaiprakash Associates surged 2-2.6%.

The newly listed, Brooks Labs fell 26% to Rs 74 against the issue price of Rs 100 a share. The stock was rallied 31% in the early trade.

Global markets continued to trade sharply lower due to dismal US jobs data and European debt worries. European markets fell 1.5-3%. Asian markets too closed 2-4% down.

2.15 p.m.

Sensex at 16,602 points. No rally in sight

Sensex was at 16,610.20 levels as it had lost 211.26 points equivalent to -1.26%. Meanwhile NSE was down by -1.13% or -58.35 points.

Among the sectoral indices, Auto and Realty were also treading in the positive side at 0.57% and 0.36%. Meanwhile BSE IT extended its losses by 2.48% to 4,871.67.

Largecaps like Reliance Industries, TCS, Infosys, HDFC, Cairn India, BHEL, Hindalco and Sterlite Industries were down 2-3%.

ONGC, ITC, NTPC, ICICI Bank, HDFC Bank amd Wipro declined 1-1.8%.

However, Hero Motocorp was the biggest gainer; the stock gained 3%.

SAIL, JSPL and Axis Bank were up over 1%. Anil Dhirubhai Ambani Group's stocks like Reliance Communications, Reliance Infrastructure and Reliance Capital shot up 2.5-3%.

About 559 shares advanced as against 778 shares declined on National Stock Exchange.

12.14 p..m

Global concerns affect Indian indices. NSE at 4,974.60

stock market in India fell on opening. This negative sentiment was on disappointing jobs data in August and European debt worries, that had weighed heavily against global markets.

The National Stock Exchange (NSE), 50-stock benchmark fell 57.35 points or 1.14% to 4,982.65. Meanwhile Sensex, the 30-stock Bombay Stock Exchange (BSE), fell by -191.94 or 1.14% to 16,629.52 levels.

Among the sectoral indices on the BSE, only the Consumer Durable (BSE CD) was showing gains of 1.17%. All other indices had fell, the worst hit index was BSE IT (Information Technology). BSE IT was fell by 1.98, as it would be hard hit if the west suffers a depression.

On reports that Reliance Communications is merging its three business divisions to make reduce 10% of its executives redundant and redeploy another 2,000 employees. This sent the stock up by approximately 2%.

Brooks Labs shot up 28% to Rs 128 a share as against issue price of Rs 100. Meanwhile, Everonn Education was locked at 20% as it hit the lower circuit. However, Pipavav Shipyard gained 2.5%.

10.26 a.m.

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