The market may put on a short rally but selling pressure is likely to overpower it
The market closed with marginal gains amid a high degree of volatility even at the country’s headline inflation for April came in at a three-and-half year low of 4.89%. The market may put on a short rally but selling pressure is likely to overpower it. The National Stock Exchange (NSE) reported an extremely lower volume of 46.09 crore shares and advance-decline of 663:737.
The Indian market opened marginally higher as cautiousness prevailed ahead of the release of the headline inflation for April later in the day. Markets across Asia wee mixed in morning trade and US stocks finished flat on Monday, which also weighed on the sentiments back here.
The Nifty resumed trade at 5,990, up 10 points over its previous close, and the Sensex rose 24 points to open trade at 19,716. The benchmarks could not sustain their initial gains and dipped into the red for a short while. At the lows, the Nifty fell to 5,970 and the Sensex went back to 19,653.
Buying activity soon picked up with support from IT and oil & gas sectors. The gainers were joined by PSU and healthcare sectors, helping the indices hit their highs in noon trade. A decline in the headline inflation for April to a three-and-half year low of 4.89% also supported the gains. The Nifty touched 6,026 and the Sensex rose to 19,832 at their respective highs.
India's wholesale price inflation eased for a third straight month in April to 4.89% against 5.96% in the previous month, the lowest level since last seen in November 2009.
However, profit taking at the highs saw the benchmarks pare their gains and slip into the red at around 1.30pm. But after a brief period of being in the negative, the indices picked up momentum once again on select buying.
The benchmarks were volatile, albeit in the positive terrain, in late trade. The market finished with marginal gains on support from healthcare, technology and PSU stocks.
The Nifty closed 15 points (0.25%) up at 5,995 and the Sensex finished the session at 19,722, a rise of 31 points (0.16%).
Among the broader indices, the BSE Mid-cap index gained 0.27% and the BSE Small-cap index rose 0.04%.
The top sectoral gainers were BSE Healthcare (up 0.67%); BSE TECk (up 0.64%); BSE PSU (up 0.48%); BSE Power (up 0.40%) and BSE Oil & Gas (up 0.33%). The main losers were BSE Consumer Durables (down 1.16%); BSE Realty (down 0.38%); BSE Auto (down 0.20%) and BSE Fast Moving Consumer Goods (down 0.09%).
Among the 30 stocks on the Sensex, 15 settled higher. The key gainers were Sun Pharmaceutical Industries (up 2.03%); ONGC, Bharti Airtel (up 1.78% each); GAIL India (up 1.57%) and Tata Motors (up 0.96%). The main laggards on the benchmark were Dr Reddy’s Laboratories (down 2.66%); Bajaj Auto (down 1.87%); Coal India (down 0.69%); Mahindra & Mahindra (down 0.67%) and BHEL (down 0.66%).
The top two A Group gainers on the BSE were—Eicher Motors (up 6.68%) and Reliance Communications (up 5.77%).
The top two A Group losers on the BSE were—Amara Raja Batteries (down 5.25%) and Muthoot Finance (down 5.13%).
The top two B Group gainers on the BSE were—Satra Properties India (up 20%) and Vikas Granaries (up 20%).
The top two B Group losers on the BSE were—Brescon Advisors & Holdings (down 19.98%) and Vyapar Industries (down 16.76%).
Of the 50 stocks on the Nifty, 33 ended in the in the green. The main gainers were Ranbaxy Laboratories (up 3.55%); Bank of Baroda (up 2.17%); Sun Pharma (up 2.02%); Power Grid Corporation (up 1.92%) and ONGC (up 1.89%). The key losers were Dr Reddy’s Laboratories (down 2.38%); Bajaj Auto (down 2.05%); HCL Technologies (down 1.92%); BHEL (down 1.05%) and Jaiprakash Associates (down 0.88%).
The Asian markets closed on a mixed note with the Shanghai Composite falling to a one-week low on worries that the country’s central bank would halt fresh support to the economy in its growth. On the other hand, the Seoul Composite was the best performer in the Asian pack as a stronger yen boosted the prospects for the country’s exporters.
The Jakarta Composite gained 0.54%; the KLSE Composite added 0.03%; the Straits Times rose 0.11%; the Seoul Composite climbed 1.03% and the Taiwan Weighted settled 0.04% higher. On the other hand, the Shanghai Composite tanked 1.11%; the Hang Seng declined 0.26% and the Nikkei lost 0.16%.
At the time of writing, the key European markets were down between 0.15% and 0.48% and the US stock futures were trading in the red.
Back home, foreign institutional investors were net buyers of shares totalling Rs244.08 crore on Monday while domestic institutional investors were net sellers of stocks amounting to Rs454.82 crore.
REpower Systems SE, part of wind turbine maker Suzlon group, has bagged an order worth 90 million euros (over Rs639 crore) for four wind power projects in Germany. The contract is for supplying 27 wind turbines to four projects and the turbines are scheduled to be delivered next year, Suzlon said in a statement today. The stock rose .36% to close at Rs14.05 on the NSE today.
Hero MotoCorp on Tuesday launched its range of two-wheelers in Guatemala City, El Salvador and Honduras, in partnership with Indy Motos Group of Guatemala which will sell the products to these markets. The range of two-wheelers being launched in these markets includes Hunk, Karizma, Glamour, HF Dawn, Splendor NXG, Super Splendor and Achiever. The stock rose 0.07% to close at Rs1,680 on the NSE.