BSE Sensex, Nifty still in a downtrend: Friday Closing Report

A reversal would only be seen if the Nifty closes above any previous day’s high

The market settled around 1% down on selling pressure in the post-noon session from banking, FMCG and auto stocks. Yesterday we had mentioned that we may see the Nifty consolidating at the day's low and fresh signals would decide its further direction. Today the index, after hitting a high at almost the same level as yesterday in the second half of the trading session, broke yesterday’s intraday low and dropped to 5,560, which is the lowest since 8 October 2012. Today’s move on the index has signalled that the downtrend is still continuing. However, a reversal would only be seen if the benchmark closes above any previous day’s high. The National Stock Exchange (NSE) saw a volume of 73.08 crore shares and an advance-decline ratio of 598:1133.
The domestic market witnessed a mixed opening on weak cues from the US. US stocks closed marginally lower on Thursday on mounting opposition to president Obama’s proposed hike in taxes and spending cuts next year. Os the other hand, most markets in Asia were in the positive on hopes that new reforms would ease the slowdown in the region.
The Nifty opened six points lower at 5,625 and the Sensex started the day at 18,491, up 20 points from its previous close. The indices soon gained momentum on gains in index toppers like Bharti Airtel and Reliance Industries and private telecom major Idea Cellular. Bank of America Merrill Lynch (BoAML) upgraded the two telecom stocks to ‘Buy’ from its earlier rating of ‘Neutral’ as it sees tariffs going up after the 2G tariff auction.
Profit booking in late morning trade saw the market paring its early gains and entering the negative terrain.  But buying in technology, PSU, metal and healthcare stocks pushed the market higher in noon trade with the benchmarks hitting their intraday highs around 1.40pm. At the highs the Nifty went up to 5,650 and the Sensex rose to 18,563. However, range-bound trade amid intense volatility resulted in the indices hovering near their previous closing levels till around 2.30pm.
The market witnessed a sharp decline in late trade on selling pressure in banking, capital goods, fast moving consumer goods, and auto stocks.  The benchmarks dropped to the day’s low almost at the end of the trading session. At that point, the Nifty fell to 5,560 and the Sensex tumbled to 18,267.
The market settled marginally off the lows. The Nifty declined 57 points (1.01%) to 5,574 and the Sensex settled 162 points (0.88%) down at 18,309.
Among the broader indices, the BSE Mid-cap index declined 0.88% and the BSE Small-cap index dropped 1.13%.
The sectoral gainers were BSE TECk (up 0.46%; BSE IT (up 0.43%) and BSE Healthcare (up 0.25%). The key losers were BSE Realty (down 3.36%); BSE Bankex (down 1.61%); BSE Auto (down 1.50%); BSE Capital Goods (down 1.44%) and BSE Fast Moving Consumer Goods (down 1.36%).
Six of the 30 stocks on the Sensex closed in the positive. The top gainers were Bharti Airtel (up 3.47%); Infosys (up 2.08%); Dr Reddy’s Laboratories (up 1.83%); Coal India (up 0.85%) and ONGC (up 0.77%). The chief losers were ICICI Bank (down 2.65%); Tata Motors (down 2.64%); Cipla (down 2.33%); Hindustan Unilever (down 2.27%) and State Bank of India (down 2.13%).
The top two A Group gainers on the BSE were—Strides Arcolab (up 4.72%) and Apollo Hospitals Enterprise (up 4.63%).
The top two A Group losers on the BSE were—Unitech (down 5.64%) and J&K Bank (down 5.33%).
The top two B Group gainers on the BSE were—Vandana Knitwear (up 19.92%) and Sequent Scientific (up 18.93%).
The top two B Group losers on the BSE were—Fact Enterprise (down 18.571%) and KSL & Industries (down 13.04%).
Out of the 50 stocks listed on the Nifty, six stocks settled in the positive. The major gainers were Bharti Airtel (up 3.08%); Dr Reddy’s (up 1.88%); Infosys (up 1.77%); ONGC (up 1.20%) and Jindal Steel (up 0.52%). The main losers were IDFC (down 3.61%); Reliance Infrastructure (down 3.53%); Tata Motors (down 3.29%); DLF (down 3.27%) and Kotak Mahindra Bank (down 3.19%).
Markets in Asia settled mostly lower on concerns about the policy reforms of the new leadership in China. Resistance to the austerity measures of the Greek government also weighed on the investors. 
The Shanghai Composite dropped 0.77%; the KLSE Composite fell 0.15%; the Straits Times shed 0.01%; the Seoul Composite declined 0.53% and the Taiwan Weighted settled 0.19% down. Bucking the trend, the Hang Seng rose 0.24%; the Jakarta Composite climbed 0.44% and the Nikkei 225 jumped 2.20%.
At the time of writing, the key European indices were trading lower and the US stock futures were also in the negative.
Back home, foreign institutional investors were net buyers of shares totalling Rs46.45 crore while domestic institutional investors were net sellers of equities amounting to Rs381.67 crore.
Public sector lender Syndicate Bank has created a separate vertical for the mid-corporate segment at its corporate office in Bangalore which will focus on sanctioning credit proposals of Rs5 crore to Rs75 crore. The stock declined 3.29% to close at Rs119.20 on the NSE.
Srei Infrastructure today said that it has received the Certificate of Registration from market regulator SEBI for its infrastructure debt fund. The company, however, did not mention the expected date of launch of the fund and the funds it is going to raise. The stock advanced 1.61% to close at Rs34.70 on the NSE.
Infrastructure construction major Gammon India is contemplating hiving off its real estate portfolio in a bid to reduce its debt. The company is looking at reducing its debt by around 22% to Rs 2,500 crore by next year. The stock closed 1.03% higher at Rs39.40 on the NSE.



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