Close above 5,585 on the Nifty may result in a short upmove
The market settled almost unchanged from its previous closing levels on selling pressure in realty, oil & gas and metal stocks. Yesterday we had mentioned that the Nifty is in a sideways move and a close on the index above the day’s high may lead to a short rally. Today although the benchmark managed to make a higher high during the beginning of the session, it soon started a downward journey and ended flat. A close above 5,585 may push the index for a short upmove. The NSE saw volume of 64.36 crore shares and an advance decline ratio of 493:1228.
The market opened with a positive note tracking its Asian peers which were in the green in morning trade on optimism that US policymakers would find ways to deal with the nation’s fiscal issues. Overnight, US markets closed with gains of 1.40% to 1.90% on news of a recovery in the US housing sector.
The Nifty opened 31 points higher at 5,605 and the Sensex started off at 18,423, a gain of 84 points over its previous close. All-round buying, led by the realty sector, saw the market hit its intraday high in initial trade itself. At the highs the Nifty went up to 5,614 and the Sensex scaled 18,468.
The market pared its initial gains as profit booking soon set in. The benchmarks witnessed a gradual descent and fell into the negative in noon trade. A lower opening of the European markets following Moody’s downgrade of France’s sovereign rating by one notch to ‘AA1’ from ‘AAA’ resulted in the domestic market going further southward.
The decline led the indices to their lows wherein the Nifty fell to 5,548 and the Sensex went back to 18,256. Bargain hunting saw the indices staging a minor recovery from their lows. But it was another day of lacklustre trade with the market closing flat for the second day.
At the close, the Nifty gained 0.15 points to 5,572 and the Sensex lost 10 points to close at 18,329.
Among the broader markets, the BSE Mid-cap index declined 0.0.76% and the BSE Small-cap index dropped 0.88%.
The sectoral gainers were BSE Auto (up 0.64%); BSE Consumer Durables (up 0.11%) and BSE Healthcare (up 0.09%). The top losers were BSE Realty (down 3.02%); BSE Oil & Gas (down 0.88%); BSE Metal (down 0.73%); BSE Capital Goods (down 0.53%) and BSE TECK (down 0.44%).
Thirteen of the 30 stocks on the Sensex closed in the positive. The top gainers were Mahindra & Mahindra (up 3.25%); HDFC (up 2.02%); Tata Power (up 1.81%); Wipro (up 1.09%) and TCS (up 0.98%). The main losers were Hindalco Industries (down 1.86%); Infosys (down 1.46%); State Bank of India, Bajaj Auto (down 1.39% each) and Reliance Industries (down 1.27%).
The top two A Group gainers on the BSE were—Apollo Hospitals Enterprise (up 4.56%) and Gitanjali Gems (up 3.86%).
The top two A Group losers on the BSE were—Unitech (down 5.89%) and Reliance Communications (down 5.23%).
The top two B Group gainers on the BSE were—Heritage Foods (up 19.99%) and Choice Infra Ventures (up 19.98%).
The top two B Group losers on the BSE were—Beckons Industries (down 16.13%) and Bio Green Papers (down 13.83%).
Out of the 50 stocks listed on the Nifty, 20 stocks settled in the positive. The major gainers were M&M (up 3.28%); HDFC (up 1.98%); Tata Power (up 1.76%); IDFC (up 1.65%) and TCS (up 1.49%). The key losers were Jaiprakash Associates (down 3.76%); DLF (down 2.44%); Punjab National Bank (down 1.88%); Hindalco Industries (down 1.86%) and Reliance Infrastructure (down 1.61%).
Markets across Asia, which were in the positive in morning trade, settled mixed following Moody’s downgrade of France’s sovereign rating and the status quo on interest rates by the Bank of Japan.
The KLSE Composite closed 0.05% higher, the Straits Times gained 0.27%; the Seoul Composite climbed 0.64% and the Taiwan Weighted rose 0.23%. Among the losers, the Shanghai Composite declined 0.40%; the Hang Seng fell 0.16%; the Jakarta Composite shed 0.02% and the Nikkei 255 lost 0.12%.
At the time of writing, the CAC 40 of France was down 0.08%, the DAX of Germany was up 0.22% and UK’s FTSE 100 was down 0.16%. At the same time the US stock futures were trading marginally higher.
Back home, foreign institutional investors were net sellers of stocks totalling Rs1.52 crore on Monday and domestic institutional investors pulled out Rs502.60 crore from the equities segment.
Indian pump major Kirloskar has completed 50 years of its existence in Egypt supplying equipment for the agriculture sector. Kirloskar Brothers is also supplying pump solutions to the industries such as process and chemical and sugar industries. At a function in Cairo today to mark the occasion, the company launched new projects. The stock declined 0.88% to close at Rs146.70 on the NSE.
New Delhi Television (NDTV), has now launched three of its channels—NDTV 24x7, NDTV India and NDTV Good Times—in the Malaysian market, with an aim to expand its international reach. The channels are part of Asia Broadcast Network’s (ABN) new platform in Malaysia and available in a combination of basic as well as dedicated NDTV branded packages. Malaysia is one of the largest pay TV markets in South East Asia. The stock tumbled 4.85% to close at Rs67.65 on the NSE.