Recalled the memories of Jan 2008 fall

21 Jan 2010  23:59 hrs
Today, market recalled the memories of Jan 2008 crash.
The market lost the grip that it has built initially but Larsen & Toubro and Bhel slipept on disappointing Q3 numbers; L&T was down 6.84% and market started reacting and suffered heavy losses on late selling in capital goods (CG) as the CG giant BHEL also made disappointment with Q3 numbers.BHEL has posted 35.67% jump in its Q3 net profit of Rs 1072.6 crore and its net sales increased 17.9% to Rs 7,100.3 crore. The company's bottomline was in-line with market expectations while revenues below the estimates.Experts were expecting net profit of Rs 1,071.8 crore and revenues of Rs 7,570.5 crore. The stock was down over 2%.The market opened dead flat (same as yesterday’s closing) at 5220 and slid but remained with a range. After slipping below 5165 level in noon trades, it plunged deep into red towards the close on unabated selling in CG, power and PSU stocks, falling almost 127 points below its opening to touch the day's low of 5085. The Sensex signed off the session 2.42% or 423 points down at 17051. Nifty tumbled 128 points to close at 5094.The market breadth was very weak. Of the 3,004 stocks traded on the BSE, 2,424 stocks declined, whereas 535 stocks advanced. 45 stocks ended unchanged.
In a press conference, L&T said FY10 sales growth guidance cut to 10% versus 15% aimed earlier but reiterate FY10 order inflow growth seen over 30%.


Sectoral Watch :
Bears trampled all the sectors with the BSE CG hit the most, by 5.15%. BSE Power was hit 3.47% and BSE PSU lost 2.98%. BSE Realty was down by 3820.93. the remaining sector indices slipped by around 1-2% each.
Bears hit all the 30 Sensex stocks into red led by Larsen & Toubro (down 6.85%), Tata Power (down 4.46%), Bharat Heavy Electricals (down 4.12%), Sterlite Industries (down 3.78%), HDFC (down 3.37%) and Reliance Infrastructure (down 3.20%).
PSU Rastriya Chemicals and Fertilisers (RCF) was the most actively traded scrip with over 1.43 crore shares changing hands on BSE followed by Realty major Unitech (0.73 crore shares), wind turbine maker Suzlon Energy (0.69 crore shares), Lanco Infrastructure (0.67 crore shares) and Ispat Industries (0.63 crore shares).
Major news in the market :
Dr Reddy's Laboratories reported Rs522-crore loss in Q3FY2010; the stock closes 6.55% lower
Government of India to relax foreign direct investment (FDI) norms
State Bank of India (SBI) sees credit growth at 20% for FY2011; the stock sheds 1.66%
Mercator Lines bags $225 million contract; the stock loses 1.86%


Mcdowell-n :United Spirits reported a phenomenal rise in standalone net profit for the quarter ended December 2009. During the quarter, the profit of the company rose 3.17 times to Rs 968.50 million from Rs 305.90 million in the same quarter previous year.
Net sales for the quarter for the quarter rose 31.94% to Rs 13,579.70 million, while total income for the quarter rose 32.31% to Rs 13,552.50 million, when compared with the prior year period.
It posted earnings of Rs 7.98 a share during the quarter, registering 2.62 times growth over previous year period.