Nifty may decline a bit but the uptrend is intact
In Tuesday’s closing report, we had mentioned that NSE’s CNX Nifty will continue to rise subject to dips. After a gap up opening, the index witnessed a volatile session on Wednesday. The 50-share index moved into the red for a few minutes but immediately recovered and then moved in a narrow range.
The S&P BSE Sensex opened at 28,843 while Nifty opened at 8,720. Within the first hour of the session, the benchmarks reached up to 28,958 and 8,742. This was followed with the index reaching a low of 28,793 and 8,690. Sensex closed at 28,889 (up 104 points or 0.36%) while Nifty closed at 8,730 (up 34 points or 0.39%). NSE recorded a volumes of 90.76 crore shares. India VIX rose 2.55% to close at 17.7125.
SEBI chairman UK Sinha has said the regulator has written to the government asking for access to recovery mechanisms to other investors beyond banks and financial institutions.
Coming back to stock markets, Tata Elxsi (8.56%) was among the top two gainers in ‘A’ group on the BSE. The stock rose and hit its 52-week high today after announcing December 2014 quarter result, which showed a quarter on quarter growth and a year on year growth in its top line and at the net profit level.
Natco Pharma (5.90%) was the top loser in ‘A’ group on the BSE. The stock gave up gains for the second consecutive session after hitting its 52-week high on Monday. The US Supreme Court on Tuesday ruled that Teva Pharmaceutical Industries Ltd can still benefit from patent protection for top-selling multiple sclerosis drug Copaxone, dealing a blow to generic drugmakers looking to market a cheaper rival product. Among other companies to be affected by this includes Natco Pharma.
HDFC (2.71%) was among the top three gainers in the Sensex 30 pack. The stock hit its 52-week high today. ITC (5.01%) was the top loser in the 30-stock index. Although the stock recorded a rise in it December 2014 quarter, it was pulled lower as its main product – cigarette – recorded no growth over December 2013 quarter.
US indices closed Tuesday flat with a positive bias. International Monetary Fund reduced its growth forecasts for 2015 and 2016, increasing speculation central banks would take more aggressive policy moves to spark economic improvement.
A gauge of confidence among home-builders ticked down this month by one point to 57, staying close to the highest level since late 2005, according to National Association of Home Builders/Wells Fargo data. Readings, which are above 50, signal that builders, generally, are optimistic about sales trends.
Except for Nikkei 225 (0.49%) all the other Asian indices closed in the green. Shanghai Composite (4.74%) was the top gainer .
At the end of a two-day monetary policy review, the Bank of Japan (BoJ), cut its near-term inflation outlook and left its key easing policy unchanged.
European indices were lower except FTSE while US Futures were in the red.
The market awaits the European Central Bank (ECB) to unveil a government-bond-buying program after a monetary policy review Thursday aimed at spurring Europe's ailing economy.