If the day’s low is broken tomorrow it may bring about a short downtrend
The market ended its six-day gaining spree and closed in the red on re-emergence of worries about the global economy. Yesterday we had mentioned that we may see the upmove continuing unless the index closes below the previous day’s low. Although the index made a lower low today, it managed to close above yesterday’s low of 5,711 and settled slightly above it at 5,739. The National Stock Exchange (NSE) saw a volume of 67.77 crore shares and an advance decline ratio of 642:811.
The market opened lower tracking weak global cues. The US markets tanked over 2% on Wednesday as investors shifted their attention to the “fiscal cliff” or the economic realities facing the country and how president Obama would tackle it. Economic concerns of the US and the unending Eurozone debt crisis saw the Asian market trading down in morning trade today.
The Nifty started off 51 points lower at 5,709 and the Sensex resumed trade at 18,780, down 122 points from its previous close. The benchmarks fell to their lows in initial trade itself wherein the Nifty went back to 5,694 and the Sensex dropped to 18,736. Stocks of realty, power, banking and IT sectors led the market down in early trade.
Select buying helped the benchmarks make a gradual upward journey, though still in the red. The market hit its high in late morning trade with the Nifty rising to 5,743 and the Sensex going up to 18,865.
However, selling pressure in capital goods, oil & gas and power stocks saw the indices come off the highs in subsequent trade. The market was seen moving sideways in post-noon trade.
The market snapped its six-day winning spree to settle lower on global worries. The Nifty lost 21 points (0.37%) to settle at 5,739 and the Sensex finished the session at 18,846, down 56 points (0.30%).
The broader indices settled mixed today. The BSE Mid-cap index closed 0.13% up while the BSE Small-cap index lost 0.21%.
The sectoral gainers were led by BSE Realty (up2.03%); BSE Auto (up 1.01%); BSE Fast Moving Consumer Goods (up 0.20%); BSE Consumer Goods (up 0.15%) and BSE TECk (up 0.10%). The main losers were BSE Capital Goods (down 1.35%); BSE Healthcare (down0.70%); BSE Power (down 0.68%); BSE Oil & Gas (down 0.50%) and BSE Bankex (down 0.37%).
Ten of the 30 stocks on the Sensex closed in the positive. The chief gainers were Tata Motors (up 5.52%); Wipro (up 1.97%); Bharti Airtel (up 1.90%); State Bank of India (up 1.32%) and Tata Steel (up 0.42%). The top losers were Tata Power (down 2.12%); Larsen & Toubro (down 2.04%); GAIL India (down 1.98%); ICICI Bank (down 1.48%) and Dr Reddy’s Laboratories (down 1.35%).
The top two A Group gainers on the BSE were—Tata Motors (up 5.52%) and Unitech (up 5.46%).
The top two A Group losers on the BSE were—IPCA Laboratories (down 5.87%) and Cadila Healthcare (down 3.45%).
The top two B Group gainers on the BSE were—Compucom Software (up 20%) and Varun Industries (up 20%).
The top two B Group losers on the BSE were—Fact Enterprise (down 19.96%) and Kanpur Plastipack (down 16.71%).
Out of the 50 stocks listed on the Nifty, 15 stocks settled in the positive. The key gainers were Tata Motors (up 5.51%); Bharti Airtel (up 2.10%); Wipro (up 1.83%); Asian Paints (up 1.32%) and SBI (up 1.26%). The main laggards on the index were L&T (down 1.97%); GAIL (down 1.91%); IDFC (down 1.86%); Reliance Infrastructure (down 1.74%) and Tata Power (down 1.64%).
Markets in Asia closed sharply lower on concerns about the global economy and the lingering Eurozone debt crisis. After the US presidential elections, it now China’s turn, as the country gears up for its once-in-a-decade leadership change.
The Shanghai Composite tanked 1.63%; the hang Seng tumbled 2.41%; the Jakarta Composite declined 0.52%; the KLSE Composite fell 0.27%; the Nikkei 225 dropped 1.51%; the Straits Times lost 1.02%; the Seoul Composite slipped 1.19% and the Taiwan Weighted settled 0.61% lower.
At the time of writing, the key European indices were in the positive and the US stock futures were trading with marginal gains.
Back home, foreign institutional investors were net buyers of stocks aggregating Rs728.45 crore while domestic institutional investors were net sellers of equities totalling Rs196.95 crore.
Financial Services firm GE Capital India today agreed to sell its mortgage loan business arms to Magma FinCorp for undisclosed amount. This marks GE Capital's exit from the mortgage loan business in India. Until the completion of the transactions, GE Money mortgage customers in India will continue to be serviced by the GE Money team. Magma closed 1.83% higher at Rs66.70 on the NSE.
Giving some relief to cancer patients, pharma major Cipla on Thursday slashed prices of its three generic cancer drugs by up to 64%. Drugs under the brand names Erlocip, Docetax and Capegard are used for treating lung and pancreatic cancer, breast cancer, head & neck cancer, gastric cancer, bladder, colorectal and colon cancers, Cipla said. The stock declined 0.76% to settle at Rs393.35 on the NSE.
GTL Infrastructure has said that it has completed the restructuring of foreign currency convertible bonds (FCCBs) worth $320 million. The zero coupon FCCBs were due on 29 November 2012. Of the $320 million, 35% would be mandatorily converted into equity at a premium of about 28% over Wednesday’s closing price, the company said in statement. The stock jumped 5.73% to close at Rs8.30 on the NSE.
MLMs like SpeakAsia and NMart thrive because the police and regulators like RBI, SEBI or IRDA, instead of taking prompt action, sit on their heads waiting for a formal complaint from duped investors, which happens only after promoters vanish with crores of rupees
With Azhar not mulling any legal action, it is expected that the BCCI is likely to soften its stand in near future