Nifty will try to find a foothold around 5,600 and attempt a rally till 5,700 in a laboured manner
The market decline continued for the fifth day, paring its gains in the second half of the trading session, on weak global cues and selling in rate-sensitive sectors. The Nifty will try to find a foothold around 5,600 and attempt a rally till 5,700 in a laboured manner. The National Stock Exchange (NSE) reported a volume of 74.62 crore shares and advance-decline ratio of 414:1120.
The market opened higher on signs of the end of the political impasse in Delhi and on support from its Asian peers, which were mostly up in morning trade. Markets across Asia were mostly firm on reports of China’s manufacturing showing an upward trend in March in a flash reading of the HSBC Markit Factory PMI. Wall Street closed on Wednesday as the US Federal Reserve reiterated it commitment to continue its $85 billion monthly bond buying programme.
The Nifty opened 12 points up at 5,706 and the Sensex resumed trade at 19,926, a gain of 42 points over its previous close. Buying in recently beaten down sectors like metal, banking and capital goods led the market higher in early trade.
However, profit taking at higher levels took the indices into the red in the first hour of trade. But news reports of the Samajwadi Party leader Mulayam Singh Yadav asserting that his party would not “create any hurdles in passage of the Appropriation Bill in the Rajya Sabha” boosted investor sentiments once again.
The gains helped the market hit its intraday high in noon trade. At this point, the Nifty went up to 5,758 and the Sensex rose to 19,082.
The market drifted lower in post-noon trade amid a great deal of volatility on worries of automakers like Tata Motors as China announced new stringent fuel efficiency standards. The new rules are expected to dent revenues from the company’s Jaguar Land Rover division, which derives 20% of its revenues from China.
Meanwhile, European markets opened lower as a preliminary reading of German’s manufacturing index slipped to 48.9 and on worries that the European Central Bank would stop emergency funds to Cypriot banks after 25th March if the beleaguered nation refuses to toe the ECB line for bailout funds.
The domestic benchmarks dropped to their lows in late trade on selling pressure from realty, power, capital goods and auto sectors. The Nifty declined to 5,648 and the Sensex dropped to 18,757 at their respective lows.
The market settled near the lows as concerns about the government’s stability still weighed on investors. The Nifty lost 36 points (0.63%) to 5,659 and the Sensex closed the session at 18,793, down 91 points (0.48%).
The broader indices continued to be underperformers as the BSE Mid-cap index declined 1.07% and the BSE Small-cap index dropped 1.23%.
BSE Consumer Durables (up 0.78%); BSE TECk (up 0.60%) and BSE IT (up 0.27%) were the only gainers in the sectoral space. The losers were led by BSE Realty (down 2.91%); BSE Power (down 2.38%); BSE Capital Goods (down 2.30%); BSE Auto (down 2.23%) and BSE PSU (down 1.19%).
Eleven of the 30 stocks on the Sensex closed in the positive. The main gainers were Bharti Airtel (up 5.99%); ICICI Bank (up 3.35%); HDFC (up 2.09%); Jindal Steel & Power (up 1.02%) and Wipro (up 0.99%). The chief losers were Bajaj Auto (down 4.61%); Tata Motors (down 4.22%); Tata Power (down 4.06%); HDFC Bank (down 3.14%) and Larsen & Toubro (down 2.85%).
The top two A Group gainers on the BSE were—Bharti Airtel (up 5.99%) and ICICI Bank (up 3.35%).
The top two A Group losers on the BSE were—Core Projects (down 9.97%) and Sun TV Network (down 7.37%).
The top two B Group gainers on the BSE were—Karma Energy (up 18.13%) and Gini Silk Mills (up 17.70%).
The top two B Group losers on the BSE were—Warren Tea (down 19.95%) and Pasari Spinning Mills (down 19.64%).
Of the 50 stocks on the Nifty, 13 ended in the green. The key gainers were Bharti Airtel (up 6.05%); ICICI Bank (down 3.07%); HDFC (up 2.15%); Mahindra & Mahindra (up 1.45%) and UltraTech Cement Company (up 1.36%). The major losers were Reliance Infrastructure (down 6.56%); Jaiprakash Associates (down 6.44%); Bank of Baroda (down 4.89%); Tata Power (down 4.37%) and Tata Motors (down 4.24%).
Markets in Asia closed mostly lower on concerns about the bailout to Cyprus and a threat by North Korea to attack US military bases in Guam and Japan.
The Shanghai Composite gained 0.30%; the Nikkei 225 surged 1.34%; the Straits Times advanced 0.59% and the Taiwan Weighted 0.18%. On the other hand, the Hang Seng fell 0.14%; the Jakarta Composite declined 0.60%; the KLSE Composite shed 0.05% and the Seoul Composite dropped 0.445.
At the time of writing, the key European markets were down between 0.75% and 1.15% while the US stock futures were marginally in the red.
Back home, institutional investors, both foreign and domestic, were net sellers in the equities segment on Wednesday. While FIIs pulled out funds totalling Rs236.72 crore, DIIs withdrew Rs356.93 crore from stocks.
Sadbhav Engineering today said it has bagged a contract for four-laning of a road project estimated at Rs 1,210 crore. The project is for four-laning of the Rohatak to Hissar sector of NH-10. The project is to be executed on design-build-finance- operate-and-transfer pattern under NHDP (National Highways Development Project) Phase-III in the state of Haryana. The stock fell 0.18% to settle at Rs112.05 on the NSE.
Om Metals Infraprojects has bagged an order worth Rs54 crore from the ministry of water resources, Nepal. The order is for the design, supply, fabrication and commissioning of hydro-mechanical works (mechanised shutters) at the headworks of the Sikta irrigation project. The project is scheduled for completion by June 2015. The stock declined 3.34% to close at Rs17.35 on the NSE.