As mentioned yesterday, the Nifty went higher but ended flat; a lower high and a lower low may signal a decline again
The market closed flat, after two days of gains, on selling in oil & gas, IT and technology stocks. From here we may see the upmove continuing up to the level of 5750 on the Nifty, however, a lower high and a lower low may be a signal of pull down again. The National Stock Exchange (NSE) recorded at turnover of 68.86 crore shares and an equated advance-decline ratio of 658:656.
The market opened in the green on optimism from Reliance Industries and HCL Technologies whose quarterly numbers surpassed market expectations and positive global cues. Markets in Asia were trading higher tracking the US markets, which closed firm on news that US housing starts rose 7% last month to an annual rate of 1.04 million units, the highest in nearly five years.
The Nifty opened 20 points higher at 5,709 and the Sensex started the day at 18,773, up 28 points over its previous close. Buying in IT, capital goods, banking and auto stocks pushed the benchmarks higher in early trade. But profit booking amid a fair degree of volatility saw the market paring its gains and entering into the negative territory.
However, buying soon resumed, sending the indices higher once again. The market hit its intraday high in noon trade. The Nifty rose to 5,732 and the Sensex climbed to 18,870 at their respective highs.
The negative opening of the key European markets was a dampener, but select buying activity was a booster once again. The market hovered on both sides of its previous closing levels till the end of the trading session and settled flat.
The Nifty closed unchanged with a negative bias at 5,689 and the Sensex fell 14 points (0.07%) to settle at 18,731.
The broader markets outperformed the Sensex today, as the BSE Mid-cap index rose 0.18% and the BSE Small-cap index gained 0.30%.
The top sectoral gainers were BSE Metal (up 1.27%); BSE Fast Moving Consumer Goods (up 1.25%); BSE Auto (up 1.16%); BSE Healthcare (up 1.09%) and BSE Bankex (up 0.93%). The main losers were BSE Oil & Gas (down2.12%); BSE IT (down 1.14%); BSE TECk (down 0.775); BSE Power (down 0.17%) and BSE Capital Goods (down 0.03%).
Seventeen of the 30 stocks on the Sensex closed in the positive. The chief gainers were Sterlite Industries (up 4.05%); Mahindra & Mahindra (up 3.91%); Sun Pharmaceutical Industries (up 3.01%); State Bank of India (up 2.87%) and ICICI Bank (up 1.70%). The major losers were Reliance Industries (down 3.78%); Wipro (down 1.77%); TCS (down 1.73%); HDFC (down 1.57%) and Tata Power (down 1.56%).
The top two A Group gainers on the BSE were—SAIL (up 6.33%) and United Spirits (up 6.07%).
The top two A Group losers on the BSE were—Future Retail (down 9.23%) and McLeod Russel (down 7.37%).
The top two B Group gainers on the BSE were—Shimoga Technologies (up 20%) and Anjani Portland Cement (up 20%).
The top two B Group losers on the BSE were—Net 4 India (down 19.97%) and Taksheel Solutions (down 19.92%).
Of the 50 stocks on the Nifty, 27 ended in the green. The key gainers were Sesa Goa (up 4.43%); Ambuja Cement (up 4.07%); M&M (up 3.75%); Sun Pharma (up 3.10%) and Lupin (up 3.09%). The main losers were RIL (down 3.34%); Reliance Infrastructure (down 2.49%); ONGC (down 1.78%); Tata Power (down 1.77%) and TCS (down 1.57%).
Markets across Asia, barring the Shanghai Composite and the Seoul Composite, closed higher on better-than-expected economic indicators from the US and reports that the International Monetary Fund has raised its forecast for Japanese growth. However, concerns about local government debt led the Chinese market lower.
The Hang Seng gained 0.24%; the Jakarta Composite climbed 0.72%; the KLSE Composite advanced 0.55%; the Nikkei 225 surged 1.265; the Straits Times rose 0.15% and the Taiwan Weighted settled 0.11% higher. On the other hand, the Shanghai Composite declined 0.69% and the Seoul Composite lost 0.05%.
At the time of writing, European markets were down between 0.53% and 1.33% on pressure from raw material producers as industrial metals decline. At the same time, US stock futures were in the negative, indicating a lower opening for US stocks later in the day.
Back home, foreign institutional investors were net buyers of shares totalling Rs591.76 crore on Tuesday. On the other hand, domestic institutional investors were net sellers of stocks aggregating Rs04.89 crore.
Hyderabad-based bio-pharma major Suven Life Sciences has secured product patents for four of its new chemical entities (NCEs) in China, Mexico and New Zealand. The patents are valid through 2028. The NCEs are useful in treatment of disorders associated with neurodegenerative diseases like Alzheimer's, attention deficient hyperactivity disorder, Huntington's, Parkinson and schizophrenia. The stock rose 0.54% to close at Rs27.95 on the NSE.
The country’s third largest two-wheeler maker Bajaj Auto today said it has raised the prices of its entire range of motorcycles by up to Rs500 due to rise in logistics and other expenditures. The stock gained 0.89% to close at Rs1,786.40 on the NSE.
Tata Teleservices said on Wednesday that it will surrender telecom spectrum beyond 2.5 mega-hertz in all circles barring Delhi and Mumbai in ‘protest’ against government move to charge one-time fee for airwaves beyond this threshold. The company will retain 3.75 MHz of spectrum in Delhi and Mumbai for which it will pay a one-time fee to the government. Tata Teleservices advanced 0.60% to settle at Rs8.35 on the NSE.