Fall in Sensex, Nifty arrested: Thursday Closing Report

Fresh cues from the US may decide market direction. Meanwhile, a short rally may be on the cards

The market closed in the positive as buying in realty, healthcare and tech stocks in the last hour enabled the benchmarks pare their losses, snapping their four-day losing streak. Yesterday we had mentioned that a small correction may be round the corner. Today the Nifty made a sharp recovery in the last hour to close in the positive. If the index manages to close in the positive on Friday it may bring some relief on the bourses, else we may see the benchmark moving sideways. The NSE saw a huge volume of 82.93 crore shares on the F&O expiry day while the advance decline ratio was 818:843.
The market witnessed a gap down opening tracking weak cues from its Asian peers, which were down in morning trade as investors were edgy ahead of the central bankers’ meet in Jackson Hole, Wyoming over the weekend. However, US stocks closed marginally higher overnight as US GDP growth for the second quarter at 1.7% was in line with analysts’ expectations.
In India, the Nifty opened with a cut of 19 points at 5,269 and the Sensex started the day at 17,434, down 57 points from its previous close. Offloading of metal, realty and auto stocks pushed the market further southwards in early trade.
Volatility that is usually seen on the derivatives expiry day was evident since the beginning of trade today. The indices touched their intraday lows in the first hour of trade itself. At this point the Nifty fell to 5,255 and the Sensex went back to 17,368. However select buying lifted the benchmarks from the lows in subsequent trade.
The indices were range-bound in the absence of any domestic triggers and lack of political action as Parliament was adjourned for the seventh day on the CAG report on coal block allocation. A negative opening of the key European indices made maters worse in the noon session.
However, select buying in the last hour saw the indices paring their losses and emerging into the green. The market hit its intraday high towards the end of the session on support from realty, healthcare and technology sectors. At the highs, the Nifty rose to 5,343 and the Sensex climbed to 17,606.
The market closed marginally off the highs, snapping its four-day losing streak. The Nifty gained 27 points (0.52%) to 5,315 and the Sensex settled at 17,542, up 51 points (0.29%) over its previous close.
Among the broader markets, the BSE Mid-cap index climbed 0.57% and the BSE Small-cap index rose 0.27%.
The sectoral space saw a reversal from the trend seen in the morning trade as only three of the 13 gauges were in the red. The top gainers were BSE Realty (up 1.83%); BSE Healthcare (up 0.74%); BSE IT (up 0.70%); BSE TECk (up 0.61%) and BSE Bankex (up 0.55%). BSE Metal (down 0.41%); BSE Oil & Gas (down 0.23%) and BSE Auto (down 0.04%) were the losers.
Hindalco Industries (up 2.27%); TCS (up 1.68%); Cipla (up 1.57%); Tata Motors (up 1.26%) and Wipro (up 1.23%) were the top gainers on the Sensex. The key losers were GAIL India (down 2.32%); Maruti Suzuki (down 2.13%); Tata Steel (down 2.06%); Jindal Steel (down 2.03%) and Sterlite Industries (down 1.46%).
The top two A Group gainers on the BSE were—JSW Energy (up 5.80%) and Adani Ports & Special Economic Zone (up 4.91%).
The top two A Group losers on the BSE were—Tech Mahindra (down 5.20%) and Jaiprakash Power Ventures (down 4.18%).
The top two B Group gainers on the BSE were—DMC Education (up 19.98%) and ATN International (up 19.30%).
The top two B Group losers on the BSE were—MTNL (down 12.63%) and Ram Kaashyap Investment (down 12.22%).
The top gainers on the Nifty were DLF (up 4.01%); IDFC (up 2.89%); Hindalco Ind (up 2.84%); Jaiprakash Associates (up 2.34%) and Hindustan Unilever (up 2.19%). The major losers were Tata Steel (down 2.28%); GAIL (down 2.25%); Jindal Steel (down 2.11%); BPCL (down 1.60%) and Reliance Infrastructure (down 1.27%).
Markets across Asia settled lower as investors grew wary about any fresh initiative coming from the US Federal Reserve and sluggish economic data from within the region. Japanese retail sales declined 0.8% in July from a year earlier, the first fall in eight months while business confidence among the South Korean manufacturers stood near the lowest level since the global financial crisis.
The Shanghai Composite lost 0.03%; the Hang Seng dropped 1.19%; the Jakarta Composite tanked 1.65%; the Nikkei 225 declined 0.95%; the Straits Times fell 0.98%; the Seoul Composite shrank 1.15% and the Taiwan Weighted was down 0.27%. Bucking the trend, the KLSE Composite added 0.03%.
At the time of writing, the CAC 40 of France was 0.51% lower, DAC of Germany declined 0.91% and UK’s FTSE 100 was trading 0.27% down. At the same time, US stock futures were in the red, ahead of Fed chief Ben Bernanke’s speech at the central bankers’ annual gathering.
Back home, foreign institutional investors were net buyers of shares aggregating Rs143.29 crore on Wednesday while domestic institutional investors were net sellers of stocks totalling Rs239.81 crore. 
Indian fertilisers major Deepak Fertilisers & Petrochemicals Corporation has abandoned plan to build a $350 million plant at Port Bonython, South Australia, due to several reasons. Barriers to the proposed investment include the substantial costs involved in rehabilitating a former military testing ground, extending power and gas supplies to the site, the distance from the Port Bonython jetty and other additional capital expenditure required to prepare the site for construction. The stock declined 1.01% to Rs127 on the NSE.
Elgi Equipments today said that it has acquired 100% stake in Rotair Spa, which is engaged in design, manufacture and distribution of ranger of compressors and allied products for the construction and industrial sectors. The acquisition is through its subsidiary Elgi Compressors Italy. The company did not disclose the value of acquisition. The stock rose 0.39% to close at Rs77.85.
The government today said state-run BHEL has proposed setting up another manufacturing unit at Sakoli in Maharashtra. “The manufacturing plant is proposed for meeting the requirements of fabricated assemblies of boilers, turbines, etc, for power plants,” minister of heavy industries and public enterprises Praful Patel informed Lok Sabha today. The stock gained 0.62% to settle at Rs218 on the NSE.



SC refuses to stay increase in airline ground handling charges

In a letter sent on 31st July to all airlines, AAI said effective 1st August ground handling agencies will have to pay between 32% to 36% of their revenues to the Airports Authority from the earlier 13%

New Delhi: The Supreme Court on Thursday refused to stay Indian government's order increasing royalty charges from private airlines for ground handling, reports PTI.


A bench headed by Justice HS Thakur declined to give a stay order on a petition filed by Federation of Indian Airlines (FIA), which alleged that state-owned Airports Authority of India (AAI) has increased the royalty by nearly three times during last one month.


Senior Advocate Mukul Rohatgi, appearing for the Federation, pleaded that it is a violation of apex court order which had directed the Centre to maintain status quo pertaining to ground handling charges while hearing its plea.


The bench, however, was not satisfied and asked the Federation to file a fresh petition before an appropriate authority,


In a letter sent on 31st July to all airlines, AAI said effective 1st August ground handling agencies will have to pay between 32% to 36% of their revenues to AAI from the earlier 13%.


Ground-handling services include check-in, baggage handling, cargo handling, aircraft cleaning, loading and unloading of food & beverages on aircraft, providing electricity back-up to aircraft while they are at airports, supplying water to the carrier, ferrying passengers to and from planes, and maintaining toilets.


Rare 'Blue Moon' to be visible on Friday night

First full moon was on 2nd August and now, sky gazers can see it happeing for the second time during the month on Friday night

New Delhi: A rare 'Blue Moon' awaits sky aficionados on Friday night, reports PTI.
When a second full moon in a calendar month appears in the night sky, the occurrence is known as a 'Blue Moon'.
This month, the first full moon was on 2nd August and now, sky gazers can see it happeing for the second time Friday night at 19:28pm, N Sri Raghunandan Kumar, Director Planetary Society of India told PTI.
The second full moon of any month is referred as a 'Blue Moon' as it happens rarely. The next 'Blue Moon' will occur only after three years on 31 July 2015.
On rare occasions, the moon actually has a blue appearance - often caused by smoke from large-scale fires or excessive dust particles in the atmosphere, Science Popularisation Association of Communicators and Educators (SPACE) president CB Devgun said.
Explaining the phenomena of blue moon, Devgun said the moon cycle takes about 29.53 days to complete that is almost a month. That is why there is one full moon once a month, but a 'Blue Moon' happens once in every two and a half years on an average.
The moon will rise at 6.13pm and will reach its fully illuminated total phase at 7.28pm, Kumar said.
The last time 'Blue Moon' event occurred in December 2009.




5 years ago

The explanation was useful. I knew that "once in a blue moon" means a rare event. But I was not aware of the background

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