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A close above any previous day’s high may reverse the down trend
Snapping its two-day winning streak, the market settled sharply lower as the lower opening of the key European markets induced a huge sell-off in the latter part of trade. Today the Nifty fell on a huge volume of 129.80 crore shares on the National Stock Exchange (NSE). The Nifty fell 1.82% while the Sensex lost 1.54%, their highest percentage loss since 30 January 2012. The downtrend has begun and we may see the Nifty falling to level of 5,425. However, if the index manages making a higher high any day, we may see some reversal happening.
The market opened with minor gains as the markets in Asia were trading mixed in morning trade as investors were worried whether Greece’s reforms to avoid a default would hold. The Nifty opened three points higher at 5,610 and the Sensex added 62 points to resume trade at 18,491.
Gains in auto, capital goods and FMCG stocks supported early gains that enabled the benchmarks hit their intraday highs. At the highs, the Nifty rose to 5,630 and the Sensex touched 18,524, their best intraday performance since end of July 2011.
However, selling pressure in subsequent trade pulled the market lower. State Bank of India, which is expected to extend another loan of Rs1,650 crore to crisis-ridden Kingfisher Airlines, was among the top losers on the Nifty as well as the Sensex today.
The market traded sideways in the negative terrain in subsequent trade, but witnessed a sharp fall in post-noon trade following a weak opening by the European markets. The southward journey continued with the market touching the day’s low towards the end of the session with the Nifty falling to 5,491 and the Sensex going back to 18,096.
Snapping its two-day gaining streak, the market settled near the lows of the day. The Nifty finished 102 points lower at 5,505 and the Sensex erased 283 points to close at 18,145.
The advance-decline ratio on the NSE was tilted towards the losers at 423:1633.
The broader indices suffered a deeper cut as the BSE Mid-cap index tumbled 3.46% and the BSE Small-cap index tanked 3.24%.
With the exception of the BSE IT index (up 0.45%) all other sectoral gauges settled in the negative. They were led by BSE Realty (down 6.77%); BSE Consumer Durables (down 4.93%); BSE Metal (down 4.29%); BSE Bankex (down 3.82%) and BSE Power (down 3.75%).
The top five scrips on the Sensex were TCS (up 1.46%); Sun Pharma (up 1.24%); ITC (up 0.60%); Infosys (up 0.53%) and ONGC (up 0.19%). The key losers on the index were SBI (down 7.91%); DLF (down 7.69%); Sterlite Industries (down 6.62%); Jindal Steel (down 4.82%) and Hindalco Industries (down 4.73%).
Sun Pharma (up 1.10%); ITC (up 0.77%); TCS (up 0.74%); ONGC (up 0.31%) and Infosys (up 0.23%) settled higher on the Nifty. Reliance Communications (down 9.51%); SBI (down 8.13%); DLF (down 6.97%); Sterlite Ind (down 6.47%) and Axis Bank (down 6.18%) were the major losers on the index.
Markets in Asia settled mixed as concerns about Greece and higher oil prices kept investors guarded. State Bank of India, largest public sector lender, announced an interest rates cut on education loans up to 1%. Meanwhile, China's manufacturing sector contracted in February for the fourth straight month as new export orders dropped sharply on the unending Eurozone debt crisis, the HSBC flash purchasing managers index showed on Wednesday.
The Shanghai Composite gained 0.93%; the Hang Seng rose 0.33%; the Nikkei 225 surged 0.96%; the Seoul Composite rose 0.22% and the Taiwan Weighted climbed 1.01%. Among the losers, the Jakarta Composite fell by 0.20%; the KLSE Composite declined 0.21% and the Straits Times dropped 0.97%. At the time of writing, the main European bourses were in the negative and US stock futures were trading lower.
Back home, foreign institutional investors were net buyers of stocks totalling Rs1,400.17 crore on Tuesday. On the other hand, domestic institutional investors were net sellers of shares aggregating Rs1,244.15 crore.
Tyre maker Ceat is planning to set up a plant in Bangladesh and is scouting for land for the same, a media report indicated. The company last week had announced that it planned to invest 416 crore taka (Rs250 crore) to set up a plant in Bangladesh. The stock declined 3.40% to close at Rs92.35 on the NSE.
Sasken Communication Technologies, a leading global embedded communications solutions company, has become a member of the Network Intelligence Alliance (NI Alliance), a new industry organization created for collaboration among the Network Economy’s technology providers. Participation in the NI Alliance will help Sasken build market innovative solutions for customers seeking to improve revenue streams through better Customer Experience Management. The stock tumbled 4.44% to close at Rs126 on the NSE.
Jubilant Life Sciences’ subsidiary, Jubilant HollisterStier’s Contract Manufacturing & Services division, has recently secured contracts with four innovator life science companies for the commercial manufacturing of sterile parenteral products for sale in the United States and Europe. The stock settled 1.91% lower at Rs190.50 on the NSE.