Market Commentary   

Market Activity: Key share indices were down over 1% on weak cues from overseas markets.

 At 10.10AM, Sensex was at 16103.25, down 268.04 points, or 1.6%, from Friday. Nifty was at 4879.15, down 62.85 points, or 1.3%.  

All BSE sector indices fell, with sectors like bank and real estate among the worst hit as inflation rose to 6.68% for the week to Mar 15. Infosys Technologies and ICICI Bank fell 4% each. Unitech was down 2%. Cairn India shares dropped 5%. The stock was the worst hit on Nifty after it reported a standalone net loss of Rs 788.2 mn for year ended December. Cipla, up nearly 3%, and Tata Power and ONGC, up 1% each, were among rare gainers on Nifty.  

In the mid trading session, Market extended losses midway through the session, shedding 4% on heavy selling in bank and information technology shares. Concern that the sharp rise in domestic inflation would dent growth and news the Institute of Chartered Accountants of India has asked companies to disclose all losses on derivatives contracts for the current financial year ending today dampened the sentiment here. At 1.15PM, Sensex was at 15733.18, down 645.15 points or 3.9% from Friday’s close. Nifty was at 4761.95, down 180.05 points or 3.7%. Frontline pharmaceutical shares gained on value buying. Cipla was up 2% and Ranbaxy Laboratories rose 1%. Hero Honda, up 3%, was the other major Nifty gainer. HDFC Bank shed 7.5% and ICICI Bank was down 7% on fears of interest rate hike, while Infosys Technologies and TCS shed 6% each as the rupee rose against the greenback. 

Key shares ended down over 4% as bank, technology and real estate shares fell. Weak cues from overseas markets also weighed. Sensex closed at 15644.44, down 726.85 points, or 4.4%, from Friday. Nifty ended at 4734.50, down 207.50 points, or 4.2%. All BSE sector indices ended in the red as the possibility of a rate hike following sharp rise in inflation to 6.68% for the week to Mar 15 spooked markets, causing interest-rate sensitive sectors to fall the most. ICICI Bank and DLF ended down 8% and 7%, respectively. Tata Communications, down 9%, was the worst hit on Nifty. Cipla, up nearly 1%, was the sole Nifty gainer. Apart from Sensex and Nifty shares, CNX Mid-cap index ended down 2%, while S&P CNX 500 index dropped nearly 4%. 

Sector Activity :

Tech stocks showed down trend: Infosys closed down Rs 1439.90 with volumes of Rs 361.40 crs, Satyam closed down at Rs 396.35 with volumes of Rs 114.27 crs, TCS closed down at Rs 810.45 with volumes of Rs 83.14 crs, and Educomp closed down at Rs 3823.95 with volumes of Rs 65.23 crs. 

Pharma stocks witnessed mixed trend: Orchid Chemical closed up at Rs 161.40 with volumes of Rs 305.35 crs, Ranbaxy closed down at Rs 438.45 with volumes of Rs 43.28 crs, Cipla closed up at Rs 220 with volumes of Rs 35.72 crs, and Sun Pharma closed down at Rs 1229.35 with volumes of Rs 27.54 crs.Banking stocks ended in Red: In the Public Sector SBI Bank closed down at Rs 1600.25 with volumes Rs 167.13 crs & Bank Of India closed down at Rs 253.25 with volumes Rs 38.38 crs. In the Private sector ICICI Bank closed down at Rs 769.40 with volume of Rs 396.29 crs & HDFC Bank closed down at Rs 1331.25 with volumes of Rs 156.42 crs. Auto Stocks closed mixed: Tata Motors closed down at Rs 622.70 with volumes of Rs 73.02 crs & M&M closed up at Rs 697.05 with volumes of Rs 59.88 crs. While in the 2 wheeler segment stocks, Bajaj Holding closed up at Rs 691.50 with volumes of Rs 29.96 crs, Hero Honda closed down at Rs 694.55 with volumes of Rs 16.73 crs.

Cement Stocks showed negative trend: India Cement closed down at Rs 186.80 with volumes of Rs 36.08 crs, ACC closed down at Rs 826.15 with volumes of Rs 31.62 crs, Ambuja Cement closed down at Rs 121.05 with volumes of Rs 22.13 crs and Madras Cement closed down at Rs 3349.30 with volumes of Rs 1.75 crs.                     

Nifty ended at 4735 down by 208 points

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