The domestic market, which was in the negative in the entire morning session, picked momentum in the second half and settled higher on buying in blue chips. Today the index managed to make a higher high, but made a lower low and closed near the day’s high. This is a bullish close but the Nifty is now is waiting for fresh global cues to set its further direction. Smart traders would wait and watch. The National Stock Exchange (NSE) saw a higher volume of 51.96 crore shares and the advance decline ratio was 964:775.
The market opened lower tracking weak global cues as the US markets closed in the negative on cautiousness ahead of the two-day FOMC meeting, which gets underway on Wednesday. Markets across Asia were subdued in morning trade today ahead of a crucial German Constitutional court decision on the Eurozone bailout fund. The Nifty opened 27 points lower at 5,336 and the Sensex started off at 17,712, down 55 points from its previous close.
The indices fell to their intraday lows in initial trade with the Nifty touching 5,332 and the Sensex going back to 17,677. Select buying saw the indices gaining strength gradually in the morning session and emerging into the positive in noon trade.
An increase in diesel, cooking gas and kerosene price is ‘unavoidable’, oil minister S Jaipal Reddy said on Tuesday but indicated that the hike may not be decided by the Cabinet Committee on Political Affairs (CCPA) at its meeting later in the evening.
“There is a meeting of the CCPA (this evening). This item (increase in diesel and cooking fuel) is not listed,” he told reporters after meeting Finance Minister P Chidambaram. “I am not sure if the item will be taken up at all today” he added.
Gains in oil & gas, healthcare and IT stocks supported the upmove in the second half of trade, despite the key European benchmarks trading lower.
Meanwhile, the Goa government on Monday issued a notification asking all the 90 mines to suspend operations with immediate effect. The state Mines and Geology Department issued this notification directing the mines to stop their operations. Chief minister Manohar Parrikar said that the mines would not be allowed to operate, if they were found to be carrying out work without the necessary permissions. The mine owners have been asked to submit their documents before they could re-start operations.
The market continued to gain strength in post-noon trade and hit its intraday high at in the last half hour. At the high the Nifty rose to 5,393 and the Sensex climbed to 17,868.
The benchmarks pared some gains and settled off the highs. The Nifty closed 27 points up at 5,390 and the Sensex finished the session at 17,853, a gain of 86 points.
Among the broader indices, the BSE Mid-cap index rose 0.27% and the BSE Small-cap index gained 0.58%.
The top sectoral gainers were BSE Realty (up 0.94%); BSE IT (up 0.88%); BSE Power (up 0.81%); BSE TECk (up 0.76%) and Bankex (up 0.58%). BSE Metal (down 1.48%) and BSE Auto (down 0.05%) were the only losers.
Seventeen of the 30 stocks on the Sensex closed higher. The top five stocks on the index were HDFC (up 2.49%); NTPC (up 1.81%); GAIL India (up 1.66%); BHEL and TCS (up 1.41% each). The key losers were Sterlite Industries (down 4.43%); Jindal Steel (down 3.13%); Hero MotoCorp (down 1%); Tata Steel (down 0.79%) and Hindustan Unilever (down 0.58%).
The top two A Group gainers on the BSE were—Muthoot Finance (up 10.57%) and Opto Circuits (up 7.75%).
The top two A Group losers on the BSE were—Sesa Goa (down 5.81%) and United Breweries (down 4.77%).
The top two B Group gainers on the BSE were—Wanbury (up 20%) and Sree Raval Histreng (up 20%).
The top two B Group losers on the BSE were—First Winner Industries (down 19.91%) and Trimurthi Drugs & Pharmaceuticals (down 16.01%).
Out of the 50 stocks listed on the Nifty, 30 stocks settled in the positive. Siemens (up 3.80%); IDFC (up 3.21%); BPCL (up 2.47%); HDFC (up 2.27%) and Kotak Mahindra Bank (up 2.21%) were the top gainers on the benchmark. The main laggards were Sesa Goa (down 5.95%); Sterlite Ind (down 3.81%); Jindal Steel (down 2.98%); Hero MotoCorp (down 1.51%) and Power Grid Corporation (down 0.98%).
Markets in Asia closed mostly lower as investors await a German court ruling on the Eurozone bailout fund and on fresh concerns emanated from Spain and Greece on the implementation of austerity measures.
The Shanghai Composite declined 0.67%; the Jakarta Composite fell 0.13%; the Nikkei 225 dropped 0.70% and the Seoul Composite slipped 0.24%. On the other hand, the Hang Seng rose 0.15%; the Straits Times gained 0.26% and the Taiwan Weighted added 0.035.
At the time of writing, the key European indices were trading lower while the US stocks futures were marginally higher.
Back home, foreign institutional investors were net buyers of stocks totalling Rs692.73 crore on Monday. On the other hand, domestic institutional investors were net sellers of equities aggregating Rs318.32 crore.
Infrastructure major Hindustan Construction Company (HCC) today said it has bagged two major contracts worth Rs1,534 crore in various business segments including one in Jammu & Kashmir for construction of a tunnel. The stock gained 2.54% to settle at Rs16.15 on the NSE.
Pharma major Panacea Biotec today entered into a strategic alliance with Osmotica Pharmaceutical to develop and market products in various global markets, including the US. Under the collaboration, Panacea will lead product identification, research, development and manufacturing while US-based Osmotica will be responsible for product registration, legal matters, sales and distribution. The stock zoomed 20% to settle at Rs108 on the NSE.
Godrej Properties today said it would invest up to Rs600 crore in developing a residential complex in Gurgaon over the next five years. The project—Godrej Summit—will be developed in partnership with Zara Sanya under an area sharing agreement, in which GPL will hold 65% stake. The stock gained 2.05% to settle at Rs534.55 on the NSE.