While Nifty may try to rally on an intraday basis, the index will remain weak
In Friday’s closing report, we had mentioned that NSE’s CNX Nifty is on a downtrend, which may reverse if it closes above 8,570. The index opened on Monday below this level and except for short bounce up at the beginning of the session when the benchmark hit its day’s high, Nifty moved gradually lower. By the end of the session the index hit its day’s low and closed almost near it.
S&P BSE Sensex opened at 28,433 and moved to the low of 28,097 from the high of 28,495 and closed at 28,119 (down 339 points or 1.19%). Nifty opened at 8,539 and moved from the level of 8,546 to the level of 8,432 and closed at 8,438 (down 100 points or 1.17%). The loss on the indices is the highest since 16 October 2014. NSE recorded a volume of 84.84 crore shares. India VIX rose 2.15% to close at 12.2075.
The Indian government plans to introduce the Coal Mines (Special Provisions) Bill, 2014 to replace the Coal Mines (Special Provisions) Ordinance, 2014 in Lok Sabha this week. The Ordinance was promulgated for the auction of coal mines that were cancelled by the Supreme Court.
Coming back to markets, Jet Airways (10%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today. It had plans to transfer its entire fleet of ATR aircraft to its subsidiary airline JetLite.
Hindustan Construction Co (5.61%) was among the top three losers in ‘A’ group on the BSE. The company recently said its unit HCC Concessions Ltd would sell Nirmal BOT Ltd, its annuity project in Andhra Pradesh to Highway Concession One Pvt Ltd. Highway Concession One is an entity majorly held by IDFC Alternatives-managed India Infrastructure Fund. HCC Concessions will receive Rs64 crore for this transaction. Further, Nirmal BOT Ltd has also received an arbitration award in its favour for Rs16.67 crore, which shall be payable to HCC, upon receipt.
Coal India (2.20%) was the top gainer in Sensex 30 pack. The stock was in the news as it recently signed an agreement with Solar Energy Corporation of India for setting up of solar power plants of total 1000 MW capacity in different parts of the country.
Infosys (4.88%) was the top loser in Sensex 30 stock. The stock fell on the news that some
of its founders sold shares worth $1.1 billion of the company on Monday.
On Friday, the US indices closed in the positive. The Labour Department reported on Friday, 5 December 2014 that employers added 321,000 jobs in November, a much stronger number than economists had predicted and the tenth consecutive month of net job gains above 200,000.
Asian indices showed mixed performance. Shanghai Composite (2.81%) was the top gainer while Jakarta Composite (0.85%) was the top loser.
Japan's revised third-quarter gross domestic product (GDP) showed the economy shrank more than initially estimated, with growth contracting an annualised 1.9%.
Chinese trade data showed exports rising just 4.7% on year, compared to October's 11.6% rise. Imports sank 6.7% in November against a 4.6% rise in October. China maintained its trend of trade surpluses with a reading of $54.47 billion in November, compared with a surplus of $45.4 billion in October, data showed today.
European indices were trading lower while US Futures too were trading in the red.
In Europe, the latest data showed German industrial production rose for a second month in October, in a sign that a slow recovery in Europe's largest economy is continuing. Production, adjusted for seasonal swings, gained 0.2% from September, when it climbed a revised 1.1%, the Economy Ministry in Berlin said today. Output advanced 0.8% from a year earlier.
A slump in construction companies sent European stocks lower today. "We see a massive weakening in the euro zone economy," Ewald Nowotny, a member of the ECB's Governing Council, told a conference in Frankfurt.