“The sheen of the markets after the UPA government came back to power is fast fading. The budget acted as a negative trigger and there is still considerable concern about the domestic and global economy,” said SMC Capitals equity head Jagannadham Thunuguntla. “While the October 2008 lows may still be a long way off, there is still some more consolidation in store for Indian markets,” added Thunuguntla.

1. Markets start week on dismal note
July 13th, 2009
Mumbai, July 13 (IANS) A key index of the Indian equities markets closed in the red Monday, ending
103 points lower than its previous close.
It, however, managed to make up for some of its losses during the day, having slipped more than 284
points around noon.
The 30-scrip benchmark index of the Bombay Stock Exchange (BSE), the Sensex, which opened at
13,405.95 points, slipped 103.9 points or 0.77 percent to 13,400.32 points.
The Nifty of the National Stock Exchange (NSE) similarly closed 0.75 percent lower at 3,974.05 points.
Broader market indices also ended in the negative terrain, with the BSE midcap index closing 2.84
percent down and the BSE smallcap index ending 3.38 percent lower.
Of the 13 sectoral indices on the BSE, those for consumer durables, metal and realty lost the most,
while only IT and telecom stocks ended on the gaining list.
The market breadth was negative with 567 stocks advancing compared to 2,009 declining. Fifty-six
remained unchanged.
“The sheen of the markets after the UPA government came back to power is fast fading. The budget
acted as a negative trigger and there is still considerable concern about the domestic and global
economy,” said SMC Capitals equity head Jagannadham Thunuguntla.
“While the October 2008 lows may still be a long way off, there is still some more consolidation in
store for Indian markets,” added Thunuguntla.
Gainers on the Sensex included Sun Pharma, up 2.57 percent at Rs.1,149.75; Infosys, up 2.4 percent
at Rs.1,767.95; Grasim, up 2.06 percent at Rs.2,451.40; and Sterlite, up 1.48 percent at Rs.584.20.
Among the losers were Reliance Infra, down 6.1 percent at Rs.966.65; Jaiprakash Associates, down
4.83 percent at Rs.177.25; Tata Steel, down 4.1 percent at Rs.338.90; and Maruti Suzuki, down 3.48
percent at Rs.1,066.30.

2. Another prominent gainer was Gammon India, which pulled back smartly to end in the green Monday
after taking a beating earlier as the company came under a cloud following the collapse Sunday of a
viaduct it was building for the Delhi Metro, which killed six people.
Gammon’s scrip had plummeted 17.49 percent to Rs.133 soon after opening, compared to Friday’s
close at Rs.161.20, but later bounced back ending the day up 2.73 percent at Rs.165.60.
“A lot of short positions seem to have been built on Gammon’s scrip. People were just squaring them
off, resulting in the surge,” said SMC Capitals equity head Jagannadham Thunuguntla.
Data with the market watchdog, Securities and Exchange Board of India (SEBI), showed that foreign
funds were net sellers, shedding shares worth $128 million Monday.
In other Asian markets, the Nikkei 225 Stock Average, a key index of the Tokyo Stock Exchange,
closed Monday’s trading at 9,050.33 points, down 236.95 points.
The Hang Seng, a primary index of the Hong Kong Stock Exchange, also closed in the red, down
453.79 points at 17,254.63 points.
European markets were trading in the green with the FTSE 100, a key British index, ruling 26.5 points
up at 4,153.67 points, while its French peer CAC 40 was ruling 3.31 points higher at 2,986.41 points.
Futures of key US market indices pointed to a negative opening of the main indices Monday.