A close below any previous day’s low will signal a reversal.
All the Asian indices opened in the positive and so did the indices back home. This was on the back of a strong overnight lead from the US and Europe. The Sensex opened at 19,950 while the Nifty opened at 6,064. Yesterday we mentioned that a close below any previous day’s low will signal a reversal. We continue to maintain the stance. The NSE saw volume of 58.51 crore shares which is similar to yesterday.
Except for a short while when the indices traded in the negative for rest of the trading session the benchmark was trading well in the positive and closed in the positive for the third consecutive trading session. The Sensex and the Nifty hit a high low of 19,851 and 6,025 respectively. The benchmark hit a high of 20,037 and 6,084 and closed almost at the day’s high. Sensex closed at 19,990 (101 points up, 0.51%) while the Nifty closed 6,069 (26 points up, 0.43%).
The broader indices closed in the positive. The BSE Mid-cap index rose 0.47% and the BSE Small-cap index rose 0.47%.
Only 4 of the sectoral indices closed in the positive. The top sectoral indices were BSE FMCG (up 1.43%); BSE Bankex (up 0.11%); BSE Oil & Gas (up 0.11%) and BSE Healthcare (up 0.08%). Among the losers were BSE Capital Goods (down 0.65%); BSE Auto (down 0.46%); BSE Metal (down 0.36%); BSE Power (down 0.31%) and BSE PSU(down 0.14%).
Fourteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were HDFC (up 3.85%); ITC (up 2.27%); HDFC Bank (up 1.38%); Hindustan Unilever (up 1.23%) and Hindalco Inds (up 0.83%). The key losers were Bharti Airtel (down 1.82%); Hero MotoCorp (down 1.78%); Tata Steel (down 1.45%); Mahindra & Mahindra (down 1.35%) and Jindal Steel (down 1.13%).
The top two A Group gainers on the BSE were— Corporation Bank (up 6.80%) and Bajaj Finance (up 6.19%).
The top two A Group losers on the BSE were— Indian Bank (down 4.26%) and Oracle Financial Services Software (down 3.89%).
The top two B Group gainers on the BSE were— Godfrey Phillips (up 20%) and Venus Remedies (up 19.99%).
The top two B Group losers on the BSE were— NCL Research (down 20%) and Bio Green Papers (down 19.71%).
Of the 50 stocks on the Nifty, 23 ended in the green. The key gainers were HDFC (up 4.75%); ITC (up 2.83%); Lupin (up 2.57%); UltraTech Cement (up 2.51%) and Indusind Bank (up 2.08%). The major losers were Ranbaxy (down 3.08%); Bharti Airtel (down 2.37%); Tata Steel (down 1.76%); Hero MotoCorp (down 1.71%) and Bank of Baroda (down 1.43%).
Back home the parliament was adjourned sine die on Wednesday, two days before scheduled end of the Budget session without passing crucial bills like the Food Security Bill and the Land Acquisition Bill. The session, one of the least productive on record, has been disrupted for two weeks over various issues.
Meanwhile, the Congress party got majority in Karnataka assembly elections and ousted the BJP to form the government in the state. This will cheer the bulls tomorrow.
Adding to the optimism was the better-than-expected trade performance from China. China posted an $18.16 billion trade surplus in April after reporting an unexpected $884 million deficit in March. Exports rose by 14.7% in April from a year earlier, data from the General Administration of Customs showed today, 8 May 2013. This was faster than March's 10% rise. Imports rose 16.8% from a year earlier compared with a 14.1% rise in March.
Except for KLSE Composite (fell 0.15%) all the other Asian indices closed in the positive. The highest gainer was Taiwan Weighted which was up 1.27%. The European indices were trading in the green and so were the US Futures.
The board of directors of Viceroy Hotels at its meeting has approved the proposal to sell the entire 'Chennai Project Division' comprising of 'Chennai Hotel Project’ and "Chennai Residential Project" to M/s. Ceebros Hotels Private Limited, Chennai for a total consideration of Rs480 crores. The stock rose 3.70% to close at Rs 19.60 on the NSE.
The board of directors of Sundaram Clayton declared a second interim dividend of Rs5 per share (100%) for the year ended March 31, 2013. The board earlier declared the first interim dividend of Rs9 (180%) per share for the year 2012-13 and the same was paid on February 19, 2013. The stock rose 1.10% to close at Rs 338.55 on the NSE