Mid Session Market Analysis for Mar 15, 2011

The Indian bourses continue to trade in the negative terrain since the initial bell during the midsession trade tracking the unfavorable cues from the Asian peers. On the Asian front, the market opened with a dismal note and continues to trade in red following the disaster earthquake and tsunami that hit Japan last Friday. Investors became more scared after third explosion at nuclear plant in northern region of Japan and Japan Prime Minister announcement that the possibility of radioactive leakage is increasing following Japan's earthquake hit Fukushima nuclear power plant. The investors’ seem to have lost their confidence about a possible setback to the global economic recovery following the massive earthquake in Japan. Back to the domestic front, market opened on a negative note and continues to reel under relentless selling pressure in mid morning trade following the unfavorable cues from the global front. The investors’ confidence was further dampened with the rise in inflation to 8.31% in February as compared to 8.23 % in January. However, the Indian market has gained some momentum to stage a modest recovery from the low point of the day, with the BSE Sensex and the NSE Nifty retrieving some of the lost ground in late morning trade. But the selling pressure continues to prevail across most of the indices. On the sectoral front, sectors like Realty and Power are experiencing most of the selling pressure while Oil & Gas is witnessing some buying support on lessening of crude oil prices following Japan’s earthquake.

The broader market indices are trading negative as BSE Mid Cap and BSE Small Cap are trading down by 1.18% and 1.17% respectively. The key benchmark indices are trading at BSE 30-share Sensex below 18,235 mark, while Nifty is below the 5,475 mark.

At 12.21 PM BSE SENSEX was trading at 18,234.85 down by 204.63 points (1.11%) and the NSE Nifty was trading at 5,470.75 down by 60.75 points (1.10%).

The BSE MIDCAP was at 6,484.19 down by 77.29 points (1.18%) and the BSE SMLCAP was at 7,828.10 down by 92.62 points (1.17%).

On the economic front, the earthquake in Japan has disrupted India's iron ore, animal protein and seafood exports as ports shut down in the island country. But once the world's third-largest economy starts reconstructing its homes, factories and cities, traders are expecting demand from metals and coal to timber, rubber, food and animal feed to zoom which would create a mega market for Indian exporters seeking an alternative to faltering Chinese demand. The change in global commodity prices would increase profits for Indian raw material producers, although that may come at the cost of local user industries such as automobiles, construction, power and infrastructure.

On the corporate front, Vishal Retail Ltd rose by 4.93% to Rs 39.40 after the company completed the sale of its wholesale and retail undertaking for Rs. 70 crore.

Suzlon Energy Ltd. fell by 2.69% to Rs. 45.20 after the company's promoters sold 4 crore shares, or 2.25% of paid-up capital of the company on Monday.

At present, the market breadth indicating the overall health is negative with 661 stocks advancing, 1,838 shares declining and 85 stocks are left unchanged. Further, the overall market breadth is negative as 12 out of the 13 sectoral indices are trading lower.

Losers from the Sensex Pact till now are Maruti Suzuki (2.85%), DLF (2.76%), Jaiprakash Asso (2.55%) and Wipro (2.37%).

The BSE REALTY was at 2,061.24 down by 58.95 points or by (2.78%). The main losers were Orbit Corp (3.82%), HDIL (3.79%), Indiabulls Real Est (3.46%) and D B Realty (3.29%).

The BSE POWER was at 2,537.11 down by 49.47 points or by (1.91%). The main losers were Reliance Power (3.85%), PTC India (3.49%), Lanco Infra (2.84%) and Suzlon Energy (2.69%).

The leading Asian bourses are trading negative as Nikkei 225, Hang Seng and Tai

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