February 24, 2009

At 1.30PM, the BSE Sensex is trading lower by 81.65 points at 8,761.56

The key benchmark Indices recovered from its days low but is still in red due to worries about global financial sector crisis and recession in key global economies. The investors are worried about deepening recession across major economies and are hesitant for fresh buying. Further, enormous selling from Foreign Institutional Investors (FIIs) extended pressure in the domestic market.

Volatility is likely to remain high ahead of the expiry of Futures & Options (F&O) contracts for February 2009 series on Thursday, 26 February 2009. As per the sources, rollover of Nifty positions from February 2009 series to March 2009 series stood around 40% while market wide rollover of positions was 29%, as on Friday, 20 February 2009.

On the sectoral front, traders off-loaded position across the sectors. Metal stocks fell on worries weakening domestic and global economy will hit demand for metals. Realty stocks slipped on concern about liquidity and falling property values. IT stocks dipped on fear a weak global economy would cut the amount firms spent on technology. Further, Banking stocks came under pressure as fears of rising defaults in a weakening economy and overnight fall in American Depository Receipts (ADRs), offsets hopes of rate cut from the Reserve Bank of India.

The Market breadth, indicating the overall strength of the market, was weak. On BSE, out of 2,291stocks traded so far, 651 shares advanced while 1,544 shares declined. Nearly 96 shares are unchanged.

At 1.30PM, the BSE Sensex is trading lower by 81.65 points at 8,761.56 and NSE Nifty is down by 16.75 points at 2,719.70.

The BSE Mid Cap is trading lower by 45.82 points at 2,745.89 and Small cap is trading down by 49.15 points at 3,111.44.

Major losers from the BSE Sensex pack are Tata Steel plunged 4.55% to Rs. 160.40 along with Housing Development Finance Corporation tumbled 3.82% to Rs. 1,302.00, Jaiprakash Associates fell by 3.28% to Rs. 64.80, Reliance Infra by 2.96% to Rs. 476.75, Sterlite Ind by 2.58% to Rs. 242.00, Wipro Ltd by 2.14% to Rs. 210.70, HDFC Bank by 1.72% to Rs. 852.00 and Reliance Industries Ltd by 1.47% to Rs 1,235.15 among others.

Major gainers from the BSE Sensex pack are Grasim Industries Ltd advanced by 2.96% to Rs. 1,384.00 along with Ranbaxy Labs by 1.57% to Rs. 209.95, ONGC by 0.42% to Rs. 675.55, Hindustan Uniliver Ltd by 0.34% to Rs. 250.05 and NTPC Ltd by 0.25% to Rs. 178.25 among others.

The BSE Metal index is lower by 106.08 points or 2.26% at 4,586.39. Stocks trading in red are Tata Steel by 4.55% to Rs. 160.40, Steel Authority of India by 3.65% to Rs. 76.50, JSW Steel by 3.63% to Rs. 190.00, Welspun Gujarat 3.55% to Rs. 62.50, Sterlite Ind by 2.58% to Rs. 242.00 and Gujarat NRE by 2.35% to Rs. 20.75 among others.

BGR Energy Systems rose 2.90% to Rs, 140.00 on bagging an overseas order worth $8.57 million.

Reliance Industries fell 1.47% to Rs 1,235.15 on fears a worsening global economy will hit demand for petrochemicals.

Century Textiles and Industries fell 0.73% to Rs. 149.50 after the company said it will suspend production of tyre yarn in stages at its factory at Kalyan near Mumbai, by February-end, due to adverse market conditions.

ONGC gained 0.85% to Rs. 678.50 despite fall in crude oil prices. Oil prices extended declines on Tuesday, sliding toward $38 on growing economic worries after US stocks slumped to a 12-year low at the previous day''s close.

Nagarjuna Construction Company lost 4.07% to Rs. 43.55 on reports Andhra Pradesh state government has cancelled a Rs. 1,000-crore project awarded to a consortium led by the company for building a multi-utility complex in New Delhi.

Orissa Sponge Iron & Steel was locked at 5% upper limit at Rs. 268.70 after a block deal of 19.9 lakh shares was executed on BSE.

State Bank of India fell 1.30% to Rs. 1,033.00 as the bank''s latest move to freeze interest rates for a year on new car loans at 10% and loans to farmers against warehouse receipts at 8%, is seen impacting margins.

Bharat Heavy Electricals down 0.35% to Rs. 1,360.15, on bagging an order worth Rs. 3150 crore.

Cairn India advanced by 2.20% to Rs. 155.45 despite crude oil prices slipped below $38 a barrel in Asian electronic trading.