Nifty has to stay above 5,645 for the bulls to be hopeful
The market ended the last day of the Hindu calendar on a flat note weighed down by the decline in industrial production numbers for September and weak global cues. Today the Nifty hit a lower high and a lower low ended marginally in the negative. On Friday we had mentioned that the index may see further downward momentum if it closes below 5,645. We continue to maintain the stance. The National Stock Exchange (NSE) saw a volume of 64.22 crore shares and an advance decline ratio of 793:921.
The Indian market will hold a special ‘Muhurat’ trading session on Tuesday to welcome the Hindu New Year—Samvat 2069—and will remain closed on Wednesday. regular trading will resume on Thursday.
The Indian market opened with small gains ahead of the release of the industrial output data for September later in the day and weakness in the Asian markets which were mostly lower in morning trade on reports of a fall in Japan’s gross domestic product (GDP) to 0.9% in the September quarter and concerns about the US economy.
The Nifty opened two points up at 5,688 and the Sensex started off the day at 18,691, a gain of seven points over its previous close. Select buying in initial trade led the indices to their highs in the first half hour wherein the Nifty rose to 5,719 and the Sensex went up to 18,751.
However, the gains were short-lived as the benchmarks began paring early gains and edged lower. The disappointing Index of Industrial Production (IIP) data for September coming in at negative 0.4% compared to 2.3% in the previous month pushed the market into the red.
This apart, higher food prices pushed up retail inflation to 9.75% in October compared to 9.73% in the previous month.
The market remained sideways in noon trade as benchmarks hovered on both sides of their previous closing levels. The lower opening of the key European markets kept the local indices in the red. The losses pushed the market to the day’s low. At that point, the Nifty fell to 5,666 and the Sensex went back to 18,608.
The market settled almost unchanged on a decline in IIP numbers for September and a weak trend across Asia. The Nifty shed three points to finish the session at 5,684 and the Sensex fell 13 points to 18,670.
While the Sensex settled with a negative bias, the broader markets were in the green. The BSE Mid-cap index gained 0.32% and the BSE Small-cap index rose 0.20%.
The main sectoral gainers were BSE Consumer Durables (up 1.13%); BSE Bankex (up 0.94%); BSE Realty (up 0.87%); BSE TECk (up 0.57%) and BSE IT (up 0.54%). The key losers were BSE Metal (down 0.70%); BSE Capital Goods (down 0.67%); BSE Oil & Gas (down 0.36%); BSE Auto (down 0.34%) and BSE Power (down 0.23%).
Eleven of the 30 stocks on the Sensex closed in the positive. The top gainers were HDFC Bank (up 1.85%); Bharti Airtel (up 1.63%); State Bank of India (up 1.59%); TCS (up 0.66%) and Infosys (up 0.48%). The major losers were Tata Steel (down 1.72%); Hero MotoCorp (down 1.67%); ITC (down 1.56%); Tata Power (down 1.43%) and Jindal Steel (down 0.95%).
The top two A Group gainers on the BSE were—United Spirits (up 34.93%) and L&T Finance Holdings (up 11.37%).
The top two A Group losers on the BSE were—United Breweries (down 4.48%) and Indian Hotels Company (down 3.77%).
The top two B Group gainers on the BSE were—BLS Infotech (up 20%) and Kamdhenu Ispat (up 20%).
The top two B Group losers on the BSE were—Raj Television (down 20%) and Somi Conveyor Beltings (down 19.75%).
Out of the 50 stocks listed on the Nifty, 24stocks settled in the positive. The chief gainers were IDFC (up 3.31%); HDFC Bank (up 2.15%); Jaiprakash Associates (down 2.03%); Bharti Airtel (up 1.69%) and SBI (up 1.57%). DLF (down 2.68%); Ranbaxy Laboratories (down 2.16%); Hero MotoCorp (down 2.03%); BPCL (down 2.01%) and Siemens (down 1.85%) settled at the bottom of the index.
Markets across Asia closed mostly in the red on the decline in Japanese GDP and economic concerns in the US. ON the other hand, the Chinese market received a boost from a higher trade surplus in October, which was the biggest in the past 45 months.
The Jakarta Composite declined 0.37%; the KLSE Composite fell 0.21%; the Nikkei 225 dropped 0.93%; the Straits Times shed 0.07%; the Seoul Composite lost 0.19% and the Taiwan Weighted settled 0.35% down. Among the gainers, the Shanghai Composite climbed 0.49% and the Hang Seng rose 0.21%.
At the time of writing, the European indices that opened in the red were mixed while the US stock futures were in the positive.
Back home, institutional investors—both foreign and domestic—were net sellers of stocks on Friday. Foreign institutional investors withdrew funds totalling Rs204.25 crore and domestic institutional investors pulled out Rs154.01 crore.
Mumbai-based DCB Bank today said its board has approved a preferential allotment Rs93 lakh shares to two overseas VC funds in order to partially meet the regulatory requirement of bringing down the promoters stake to 10%. Accordingly, the bank will issue around 56 lakh shares to WCP Holdings III and around 37 lakh shares to Tano Mauritius India FVCI II at premium of Rs33.68 per share, which has a face value of Rs10, the small-sized bank said in a statement. The stock gained 1.01% to settle at Rs44.80 on the NSE.
Natco Pharma has announced that it acquired 51% of the paid-up equity capital of Natco Organics, a joint venture between Natco Pharma and TIDCO. Natco Pharma jumped 2.935 to settle at Rs404 on the NSE.
India Infoline today said it has received approval from market regulator SEBI for launching its Alternative Investment Funds—IIFL Venture Fund, IIFL Private Equity Fund and IIFL Opportunities Fund. As part of the various asset management bouquets of products offered by the IIFL Group, India Infoline now will be additionally offering alternate asset investment products by launching various schemes, in due course, a company statement said here. The stock climbed 1.56% to settle at Rs68.20 on the NSE.