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Gujarat Reclaim & Rubber Products: Highly elastic

Gujarat Reclaim and Rubber Products Ltd (GRRPL) is one of the major companies in making reclaimed rubber. GRRPL produces reclaimed rubber from scrap of whole tyres, tread peelings, natural rubber tubes, butyl tubes and moulded rubber products for different applications. The company is also into wind power. Major production of reclaimed rubber is from end of life waste tyres and tubes. End...

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Sensex, Nifty under pressure: Thursday Closing Report

If the Nifty breaks today’s low, it may slip 5,000 and then to 4,970

 

The market settled lower as high inflation numbers pulled down rate-sensitive sectors and weakened the likelihood of a rate cut by the RBI in its mid-quarter policy review, slated to be take place on Monday. Today’s loss on the Nifty almost wiped off the gains of past two trading days. If the index closes in the negative tomorrow, we may see the benchmark slipping to the level of 5,000 and then finding its next support at 4,970. The National Stock Exchange (NSE) saw a volume of 53.09 crore shares.

The market opened on a cautious note ahead of the release of the wholesale price index (WPI) inflation numbers for May. Unsupportive global cues also weighed on the market. The Asian pack was lower in morning trade tracking the weak US markets overnight and ratings agency Moody’s downgrade of Spain’s rating by three notches to ‘Baaa3’ from ‘A3’, the lowest level of “investment grade” or just above ‘speculative’ or ‘junk’ grade.

The Nifty opened 16 points lower at 5,105 and the Sensex resumed trade at 16,857, down 24 points from its previous close. Choppiness since the opening bell saw the indices fluctuating mostly in the negative terrain in morning trade.

Select buying in late morning trade enabled the benchmarks emerge into the green and hit their intraday highs. At this point, the Nifty rose to 5,130 and the Sensex climbed to 16,921.

The market saw a sharp fall after the announcement of the WPI inflation numbers, which came in higher at 7.55% in May. The decline continued as the key markets in Europe opened with minor losses following Moody’s downgrade of Spain by three notches. Capital goods, banking, realty and power stocks were on the sellers’ radar.

The indices continued to drift lower in the absence of any positive triggers on the domestic front and on global concerns. The market dropped to its intraday low in the last half hour with the Nifty falling to 5,048 and the Sensex going back to 16,659.

The market closed near the lows as higher inflation as the likelihood of a rate cut by the RBI, on the back of a steep rise in inflation, appeared slim. The Nifty declined 67 points (1.30%) to settle at 5,055 and the Sensex tanked 203 points (1.20%) to end the day at 16,678.

The advance-decline ratio on the NSE was tilted towards the losers at 501:1206.

Among the broader indices, the BSE Mid-cap index tanked 1.27% and the BSE Small-cap index dropped 0.67%.

BSE IT (up 0.33%) and BSE TECk (up 0.13%) were the only gainers in the Sensex list today. The losers were led by BSE Realty (down 2.91%); BSE Bankex (down 2.82%); BSE Capital Goods (down 2.79%); BSE Power (down 2.16%) and BSE Auto (down 1.99%).

Infosys (up 1.09%); Cipla (up 0.58%); ITC (up 0.29%) and Sterlite Industries (up 0.15%) settled higher on the Sensex. The key losers were Tata Motors (down 4.56%); Larsen & Toubro (down 3.92%); NTPC (down 3.76%); ICICI Bank (down 3.50%) and State Bank of India (down 3.06%).

The top performers on the Nifty were Infosys (up 1.15%); ACC (up 0.83%); Cipla (up 0.82%); Sesa Goa (up 0.77%) and Cairn India (up 0.75%). On the other hand, Punjab National Bank (down 5.71%); Tata Motors (down 4.47%); IDFC (down 4.29%); L&T (down 4.07%) and NTPC (down 3.89%) settled at the bottom of the index.

Markets across Asia closed mostly in the negative on reports of Moody’s downgrading Spain’s credit rating by three notches. Besides, signals from the US and Europe pointing towards slowing economic growth also weighed on investors.

The Shanghai Composite declined 0.99%; the Hang Seng dropped 1.15%; the Jakarta Composite tanked 1.78%; the KLSE Composite fell by 0.34%; the Nikkei 225 slipped 0.22%; the Straits Times declined 0.47% and the Taiwan Weighted settled 0.19% lower. On the other hand, the KOPSI Composite surged 0.65%.

At the time of writing, the key European indices were trading with cuts of 0.08% to 0.92% while the US stock futures were in the positive.

Back home, institutional investors, both foreign as well as domestic, were net buyers in the equities segment on Wednesday. While foreign institutional investors pumped in Rs217.68 crore, domestic institutional investors put in Rs76.87 crore.

Carborundum Universal, belonging to the Murugappa group, has inked a techno-commercial pact with Sheffield Refractories and with Anderman Ceramics, both based in the UK. The agreement is for manufacture, supply and installation of a range of high-end refractory solutions for the steel and glass industries and aerospace component manufacturing. Carborundum Universal settled at Rs148.10 on the NSE, up 0.07% over its previous close.

Oil India (OIL) is reported to have shelved its plans to acquire a 51% stake in Mukesh Ambani's Reliance Gas Transportation Infrastructure (RGTIL). OIL has decided to focus on its core business although it had submitted an expression of interest last month. The scrip gained 0.24% to close at Rs463 on the NSE.

Gujarat Minerals Development Corporation (GMDC), a Gujarat government undertaking, on Thursday said it has signed an agreement of sale for non-plant grade bauxite with a Hyderabad-based Anrak Aluminium which would help GMDC earn Rs20 crore. GMDC said it would provide bauxite from its Gadhsisa bauxite mines in Kutch district. The stock closed at Rs174.55 on the NSE, up 0.09%.

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Hyderabad Industries: Strong sales

This is a CK Birla company and has gradually evolved from being a single-product company, manufacturing asbestos cement for roofing sheets, to a multi-product company producing autoclave aerated concrete (AAC) blocks, aerocon panels, thermal insulation products, jointing and prefabricated building panels. It is the largest manufacturer of fibre cement sheets in India sold under the brand...

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