MARKET ENDED 04.02.2010 THURSDA

BSE GAINERS

MARKET ENDED 04.02.2010
SENSEX 16224.95 -271.10
NIFTY 4845.35 -86.50
NASDAQ 2190.06 +18.86
DJIA 10296.85 +111.32
RS/$ 46.25 +0.90
NIFTY GAINERS
Media Video 26.80 + 15.52
Resurg.Mines 97.70 + 10.40
S S I Ltd. 24.00 + 10.09
Infinite Com 210.25 + 9.62
Goa Carbons 121.50 + 9.61
Indian equities ended near day’s lows on Thursday as profit booking in the global markets spooked investor confidence. All the sectoral indices ended in the red with realty, metals and IT stocks leading the downfall. Negative global cues to start with and disturbing news coming out of Europe in the afternoon made the markets close deep in the red. The news of sharp rise in Sovereign Credit Default Swaps of Greece, Portugal and Spain accentuated the fall in the latter half of the trade

National Stock Exchange’s Nifty ended at 4845.35, down 86.5 points or 1.75 per cent. It touched intra-day low of 4832.35 and high of 4931.30.

Bombay Stock Exchange’s Sensex closed at 16,224.95, down 271.10 points or 1.64 per cent.

The index touched a low of 16192.37 and high of 16,188.80 in today’s trade.

BSE Midcap Index was down 1.95 per cent and BSE Smallcap Index slipped 1.61 per cent. Amongst the sectoral indices, BSE Realty Index was down 3.89 per cent, BSE Metal Index slipped 3.36 per cent and BSE IT Index fell 2.1 per cent. BSE FMCG Index was down 0.26 per cent and BSE PSU Index moved 0.72 per cent lower. Hindalco Industries (-6.37%), Jaiprakash Associates (-4.59%), Tata Motors (-4.36%), DLF (-4.33%) and Tata Steel (-3.85%) were the worst hit in the Sensex pack. ONGC (0.56%), ITC (0.32%) and Hero Honda (0.03%) eked out modest gains. Shares of oil companies ended in the red giving into bearish market sentiments after a positive start.

The panel headed by Kirit Parikh has suggested a clean break from the past with market-linked prices for auto fuels and a sharp increase in the prices of kerosene and cooking gas. If the recommendations of the expert group, chaired by the former Planning Commission member, are implemented, it will result in annual cost saving of over Rs 30,000 crore at current levels of under-recoveries for oil companies. We note that these suggestions are largely in line with the recommendations of earlier committees instituted by the government on the same issue, which were never implemented. While we await government action on this report, we believe the suggestions are likely too aggressive to be implemented in current form, given inflation concerns, implementation issues and political considerations. A one-time hike in gasoline and diesel prices is all that might happen, in our view. We reiterate Sell on the OMCs with potential downside of 24%-28% to our 12-m TPs, all based on 6X FY11E EBITDA. HPCL is on our Conviction list, as we believe it has the highest earnings leverage to under-recoveries and lowest returns in medium term,” said the Goldman Sachs report. Market breadth was negative on the BSE with 2,001 declines and 836 advances. European markets were down about a percent ahead of the rate decisions from European Commercial Bank and Bank of England. US stock indices futures too were down more than half a percent ahead of the Jobless Claims data. At 5 pm, Dow Jones stock futures was down 0.58 per cent, S&P 500 slipped 0.64 per cent and Nasdaq 100 declined 0.53 per cent.

Regards,
RAKESH MAKIN
Chugh securities Pvt Ltd
+91 9915684997,9041667797(DIRECT)
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PANCHKULA (Haryana).
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