Any rally will be met by further selling
Snapping its eight-day losing streak, the market closed in the green. However, the gains were capped in the post-noon session on selling in select sectors. Today, the Nifty settled 34 points (0.71%) higher at 4,812 and the Sensex gained 119 points (0.75%) to close at 16,065. Yesterday we had mentioned that a small bounce back would be possible, however, further selling cannot be ruled out. The National Stock Exchange witnessed volume of 60.46 crore shares being traded today.
The market opened higher this morning as investors resorted to bottom fishing, picking stocks at lower prices after the eight-day decline in the market. The Nifty opened 17 points higher at 4,795 and the Sensex added 50 points to 50 points to its previous close to resume trade at 15,996. Capital goods, metal, IT, power, healthcare and oil & gas sectors reported buying interest in early trade, giving the market a much-needed support.
Amid a fair degree of choppiness, the sellers moved in to bring the market to the day’s low in the first half hour itself. At the lows, the Nifty stood at 4,783 and the Sensex fell to 15,970. The lows gave rise to another buying spree taking the benchmarks higher.
The market hit the day’s high at around 1.30pm as the key European indices recouped from their early losses and were trading in the green. At the highs, the Nifty rose to 4,854 and the Sensex breached the 16,000-level to touch 16,213.
However, the market pared part of its gains in the last hour but ended in the green today. The Nifty settled 34 point higher at 4,812 and the Sensex closed the session at 16,065, up 119 points.
The advance-decline ratio on the National Stock Exchange (NSE) was 833:900.
The broader indices underperformed the Sensex today. The BSE Mid-cap index rose 0.34% and the BSE Small-cap index added 0.03%.
BSE IT (up 1.95%); BSE Metal (up 1.54%); BSE Auto (up 1.08%); BSE TECk (up 1.06%) and BSE Healthcare (up 0.98%) were the top sectoral gainers. The sectoral losers were BSE Consumer Durables (down 3.16%); BSE Fast Moving Consumer Goods (down 1.36%) and BSE Power (down 0.27%).
The top performers on the Sensex were Tata Motors (up 6.91%); Jaiprakash Associates (up 4.28%); Tata Steel (up 2.77%); DLF (up 2.58%) and Infosys (up 2.33%). Bharti Airtel (down 2.48%); Tata Power (down 2.29%); ITC (down 1.61%); Bajaj Auto (down 1.42%) and Hindustan Unilever (down 1.33%) settled at the bottom of the index.
The major gainers on the Nifty were Tata Motors (up 7.40%); JP Associates (up 4.77%); BPCL (up 3.70%); Tata Steel (up 3.50%) and Cairn India (up 3.28%). The key losers were Siemens (down 2.80%); Bharti Airtel (down 2.39%); Kotak Bank (down 2.09%); Tata Power (down 2.08%) and ITC (down 1.91%).
Markets in Asia closed mostly in the green after closing sharply lower in the previous session. However, failure of a “super committee” of US policymakers to reach a consensus for the country’s deficit reduction plan and the worsening debt situation in Europe continued to keep investors wary.
The Hang Seng added 0.14%; the Jakarta Composite surged 1.51%; the KLSE Composite gained 0.27%; the Straits Times climbed 0.71% and the Seoul Composite rose 0.34%. On the other hand, the Shanghai Composite fell 0.10%; the Nikkei 225 declined 0.40% and the Taiwan Weighted lost 0.61%.
Back home, foreign institutional investors were net sellers of equities totalling Rs743.02 crore. On the other hand, domestic institutional investors were net buyers of stocks aggregating Rs595.55 crore.
Jai Balaji Industries has informed the exchanges about company’s first monetary receipt of about Rs3.30 crore on account of sale of 54,615 units of carbon credits. The credits received on account of power generated from its waste heat recovery boilers. The stock declined 1.52% to Rs65 apiece on the NSE.
Pipavav Defence and Offshore Engineering Company will raise around Rs900 crore by issuing 8.19 crore shares on a preferential basis to a foreign strategic investor at Rs110 a piece, the company said in a filing to the Exchanges. The investment will be a long term strategic investment in the company, the company added. The stock gained 1.86% to close at Rs57.40 on the NSE.
GTN Industries, an integrated yarns, fabrics and apparels group, is planning to pump in over Rs20 crore in its mercerised cotton garment facilities this fiscal to expand base. The company, which has overall investment of Rs350 crore in the mercerised cotton garment facilities, is expecting its overall group turnover to touch Rs700 crore in FY11-12 as against Rs675 crore last year. The stock gained 1.96% to close at Rs10.40 on the NSE.
As a part of the arrangement with Lucha Libre, RBNL's English entertainment channel BIG CBS Prime and regional channel Big Magic will air the first season of the 'Masked Warriors'
Reliance Broadcast Network (RBNL) has tied up with the US-based wrestling show producer Lucha Libre for content sharing and is eyeing more partners for such tie-ups for its TV channels in India.
"We are in continuous talks with several overseas partners to explore business possibilities to better the product. We are always exploring the possibilities of showcasing internationally acclaimed content, which works with audiences here," RBNL CEO Tarun Katial told PTI.
As a part of the arrangement with Lucha Libre, RBNL's English entertainment channel BIG CBS Prime and regional channel Big Magic will air the first season of the 'Masked Warriors'—a freestyle wrestling show.
Lucha Libre USA CEO Steven Ship said: "We are confident, the reach and rich relevant audience base of BIG CBS Prime and Big Magic will allow us to create sizeable impact in the Indian market".
When asked about the financial arrangement between the two parties Katial said: "There is a nominal fee involved. Lucha Libre considers India to be a strategic market and this business alliance makes sense for both parties."
On the content side, RBNL already has access to the library of CBS Studios International.
"We will soon launch our channel through our JV with RTL–which will allow us access to some of the best content from their stable, including their production wing, FreeMantle," he added. Besides sourcing international feed, RBNL is also equally focusing on domestic content.
On Tuesday, RBNL ended at Rs56 per share on the Bombay Stock Exchange, 1.06% down from the previous close.
Monnet is putting up a 1.5 million tonnes per annum steel plant at Raigarh in Chhattisgarh
Buoyed by increased production of both sponge iron and power, Monnet Ispat and Energy reported a net profit of Rs76.94 crore for quarter ended September 2011, compared to net profit of Rs65.60 crore for the same period last year.
The total income of the company stood at Rs458.55 crore compared to Rs360.65 crore in the corresponding quarter a year ago. "The company has reported a strong growth in production volumes of sponge iron and power. The realisations of sponge iron have also increased during the quarter," Monnet said.
However, due to rise in raw material costs and drop in the realisation in power tariff, the margins remained under pressure during the quarter, it added.
Monnet’s expenditure on raw material grew to Rs279 crore during the quarter over Rs213 crore in the same period last year.
"The overall industry and business environment is challenging, however, we are focusing on better productivity and rationalisation of costs as key inputs for managing our profitability," said the company's executive vice chairman and managing director Sandeep Jajodia.
Monnet is putting up a 1.5 million tonnes per annum steel plant at Raigarh in Chhattisgarh. The company hopes that sponge iron price would stabilise now and expects an improvement in power tariff, which is already showing signs.
"The price of coal and its availability would remain an area of concern for the industry," the company statement further said.
On Tuesday, Monnet ended at Rs373.95 per share on the Bombay Stock Exchange, 0.05% down from the previous close.