Previous day’s low on the Nifty continues to be the crucial level to watch
The market, which was in the green for a major part of today’s session, pared part of its gains in late trade on profit booking. Yesterday we mentioned that a close above 5,640 on the Nifty may add strength to this weak upmove. Today although the index managed to cross this level it ended a bit lower. A strong close above 5,655 may bring more momentum to the uptrend, however, a previous day low on the Nifty continues to be the crucial level to watch. The National Stock Exchange (NSE) saw a volume 53.12 crore shares and an advance decline ratio of 749:677.
The Indian market opened on a positive note tracking the global markets which were in the green on hopes that European leaders are likely to reach a deal to release emergency funds to Greece. A report indicating a growth in China’s factory output in November also boosted investor sentiments across Asia.
Back home, the Nifty started off at 5,629, up 14 points over its previous close, and the Sensex resumed trade 51 points higher at 18,460. Buying interest in capital goods, banking, technology and PSU sectors pushed the indices higher in early trade.
However, the benchmarks were unable to sustain their early gains and began a gradual descent. Opposition to the government’s reforms on the first day of the Winter Session of Parliament saw the indices touching the day’s lows in noon trade. At the lows, the Nifty fell to 5,608 and the Sensex went back to 18,456.
A positive opening of the European indices as policymakers resume talks on the EU budget supported the domestic market in subsequent trade. The inability of the Trinamool Congress to muster sufficient numbers for a no-confidence motion against the UPA government also supported sentiments.
The gains helped the benchmarks touch their intraday highs in the post-noon session. At the highs, the Nifty climbed to 5,643 and the Sensex went up to 18,568. But profit booking at the highs resulted in the market paring part of its gains in the last hour, albeit closing in the green.
The Nifty rose 13 points to settle at 5,628 and the Sensex finished the session at 18,517, up 57 points.
Among the broader indices, the BSE Mid-cap index closed 0.32% higher and the BSE Small-cap index gained 0.39%.
The top sectoral gainers were BSE Capital Goods (up 1.07%); BSE IT (up 0.85%); BSE TECk (up 0.80%); BSE Fast Moving Consumer Goods (up 0.62%) and BSE PSU (up 0.55%). The losers were BSE Oil & Gas (down 0.49%); BSE Consumer Durables (down 0.36%) and BSE Auto (down 0.24%).
Sixteen out of the 30 Sensex stocks closed in the positive. The main gainers were State Bank of India (up 1.9%); Larsen & Toubro (up 1.7%); Infosys (up 1.6%); Mahindra & Mahindra (up 1.2%) and ITC (up 1.2%) while key losers were Tata Motors (down 2.5%); ICICI Bank (down 1.0%); Sun Pharma (down 0.6%); Reliance Industries (down 0.5%) and Cipla (down 0.5%).
On the A Group, top two gainers on the BSE were—Hindustan Copper (up 11.3%) and Strides Arcolab (up 5.5%) while top losers were—Pantaloon Retail India (down 5.6%) and Max India (down 3.4%).
The top two B Group gainers on the BSE were—Metroglobal (up 2449.27%) and Rama Newsprint (up 20%) while SEL Manufacturing Company (down 19.52%) and Bisil Plast (down 12.50%), ended as top two losers.
Out of the 50 stocks listed on the Nifty, 27 stocks settled in the positive. The major gainers were Grasim Industries (up 2.3%); Larsen & Toubro (up 1.9%); SBI (up 1.8%); HCL Technologies (up 1.7%) and NTPC (up 1.7%). Tata Motors (down 2.8%); Siemens (down 2.1%); UltraTech Cement (down 1.8%); ICICI Bank (down 1.3%) and IDFC (down 1.2%) were the major losers today.
Markets in Asia, with the exception of the Shanghai Composite and the KLSE Composite, settled higher on the expansion in Chinese manufacturing sector in November, as revealed by a preliminary report from HSBC PMI.
The Hang Seng surged 1.0%; the Jakarta Composite advanced 0.43%; the Nikkei 225 jumped 1.56%; the Straits Times climbed 0.9%; the Seoul Composite gained 0.8% and the Taiwan Weighted gained 0.2%. Bucking the trend, the Shanghai Composite dropped 0.7% and the KLSE Composite lost 0.3%.
At the time of writing, the key European indices were trading with gains in the range of 0.255 and 0.78% and the US stock futures were trading with gains. Markets in the US will be closed for the Thanksgiving Day holiday today.
Back home, foreign institutional investors were net buyers and bought shares worth Rs182.59 crore on Wednesday while domestic institutional investors sold shares worth Rs133.08 crore.
Ashapura International, a subsidiary of Ashapura Minechem is planning to set up a kaolin powder making plant at Bhuj in Gujarat, which would make the company one of the largest producer of kaolin in Asia. The project is likely to be stationed close to the mineral reserves in Kutch. However, the quantum of investments and capacity has not been disclosed. Ashapura Minechem rose 4.9% to close at Rs40.55 on the BSE
Blue Dart Express, which was in news after its promoters announced plans to sell 6.03% of their stake through offer for sale route, today informed BSE that "floor price" for the sale shares shall be Rs. 1,720 per equity share. DHL Express (Singapore) Pte Ltd, submitted a notice of offer for sale of 1.43 million shares of Rs10 each of Blue Dart Express representing 6.03% of the equity share capital. Blue Dart Express rose 20% to close at Rs2,056 on the BSE