Markets still wavering: Friday Closing Report

Nifty may continue in the range of 5,160 and 5,310

The market pared all its gains and slipped into the red for a short while in post-noon trade. However, buying interest in select stocks in trade that followed ensured a positive close. Today the Nifty made a four-day closing high (including today) at 5,284. The struggle in share prices is likely to remain for some more time. The index may continue to move in the range of 5,160 and 5,310. The gain of 18 points has been on the volume of 55.73 crore shares on the National Stock Exchange (NSE).

Easing of European worries after Greek Prime Minister George Papandreou on Thursday decided to cancel the referendum on the fresh bailout plan for the beleaguered country boosted markets across the world. Encouraged by the development, the Indian market too opened strong. The Nifty gained 59 points to open at 5,325 and the Sensex resumed trade at 17,675, up 193 points. Oil & gas, auto, metal, realty and IT sectors led the benchmarks to the day’s high in early trade. At the highs, the Nifty rose to 5,326 and the Sensex stood at 17,702.

The market moved sideways till noon trade after which it pared most of the early gains following a remark by finance minister Pranab Mukherjee that the latest increase in petrol prices would “have some impact on inflation”.  

The benchmarks slipped to their intraday lows at around 2pm as selling pressure resulted in the oil & gas sector emerging as the top loser. At the lows, the Nifty fell to 5,257 and the Sensex was down at 17,474. The market staged a minor recovery to end above the lows of the day. The Nifty settled at 5,284, up 18 points and the Sensex closed 81 points higher at 17,563.

The advance-decline ratio on the NSE was in favour of the gainers at 1016:690.

The broader indices outperformed the Sensex with the BSE Mid-cap index advancing 0.75% and the BSE Small-cap index gaining 0.38%.

All sectoral indices, barring the BSE Oil & Gas (down 0.31%) settled higher. The top gainers were BSE Metal (up 1.64%); BSE Capital Goods (1.03%); BSE Realty (0.80%); BSE TECk (up 0.70%) and BSE Bankex (up 0.62%).

The major gainers on the Sensex were Hindalco Industries (up 2.43%); Jindal Steel (up 2.42%); Hero MotoCorp (up 2.19%); Sterlite Industries (up 1.69%) and State Bank of India (up 1.54%). The top losers were Tata Power (down 1.95%); Hindustan Unilever (down 0.85%); Reliance Industries (down 0.57%); Maruti Suzuki (down 0.51%) and Mahindra & Mahindra (down 0.39%).

The Nifty leaders were Ambuja Cement (up 2.77%); Hero MotoCorp (up 2.54%); Hindalco Ind (up 2.47%); Cairn India (up 2.18%) and Sun Pharma (up 2.03%). The major laggards were Ranbaxy Laboratories (down2.08%); Tata Power (down 2.04%); Reliance Infrastructure (down 1.84%); Dr Reddy’s (down 1.27%) and Sesa Goa (down 1.14%).

Markets in Asia settled higher as hopes of easing of the debt crisis in Europe boosted investor sentiments. Besides, the surprise move by the European Central Bank to cut its interest rate by a quarter of a percentage point to 1.25% on Thursday was seen as a step towards sustaining growth in the continent.

The Shanghai Composite gained 0.81%; the Hang Seng jumped 3.12%; the Jakarta Composite surged 2.10%; the KLSE Composite advanced 1.04%; the Nikkei 225 climbed 1.86%; the Straits Times gained 1.36%; the Seoul Composite went up by 3.13% and the Taiwan Weighted settled 1.92% higher.

Back home, institutional participation in the equities market was meagre on Thursday. While foreign institutional investors pumped in Rs15.45 crore in stocks, domestic institutional investors bought stocks aggregating Rs1.91 crore.

Carborundum Universal, an abrasives and ceramics manufacturer has divested it entire shareholding in Laserwords Pvt Ltd. In a filing with the exchanges it said that it has divested its stake for Rs50 crore. The transaction is in line with Carborundum’s overall strategy to divest its non-core assets to fund its core businesses. The stock gained 0.97% to close at Rs156.30 on the NSE.

Power equipment makers including BGR Energy Systems, BF Utilities and Siemens settled higher on reports that the government will consider imposing higher duty on imported power equipment. BGR Energy gained 1.50%, BF Utilities surged 3.88% and Siemens rose 0.63% on the NSE today.

LIC Housing Finance, a subsidiary of life insurance giant LIC, today said that it will float a Rs500 crore real estate venture capital fund within 2-3 months. The company has held roadshows for raising money from domestic institutions and high networth individuals. The fund will be raised through LIC Housing Finance Asset Management company, a subsidiary of LIC Housing Finance. The scrip rose 1.44% to close at Rs239.60 on the NSE.


TV18 Broadcast consolidated Q2 net profit falls 37.63% to 8.02 crore

TV18 Broadcast’s total consolidated income has increased 59.72% to Rs302 crore for September 2011 quarter

TV18 Broadcast has posted consolidated net profit of Rs8.02 crore for the quarter ended 30 September 2011 compared to Rs12.86 crore for the corresponding quarter last year, representing decrease of 37.63%.

During the same period, its total consolidated income has increased from Rs189.1 crore to Rs302 crore, representing an increase of 59.72%.
TV18 Broadcast closed at Rs43.85 per share on the Bombay Stock Exchange, 3.52% down from the previous close.


Prices of pulses drop in the wholesale market due to adequate supply

However, retailers continue to charge high prices despite adequate supply. Again, boost in production is expected in the coming ‘rabi’ season

After a short surge in the prices of pulses during the festive season, rates have now come down and stabilised in the wholesale market. Despite this, the consumer continues to pay high prices for pulses in the retail market.

Recently, the government hiked the minimum support price (MSP) for select pulses like chana and masur (lentils). Experts say that it will encourage farmers to take up the cultivation of pulses in the rabi season. MSP, for both the pulses, has been fixed at Rs2,800 a quintal, an increase of Rs700 per quintal for chana and Rs550 per quintal for masur as compared to last year’s prices.

Bimal Kothari, vice-president, India Pulses and Grain Association (IPGA), told Moneylife, “Pulses prices have significantly come down. They are flat in the wholesale market. The increment in the MSP and good monsoon are the key factors which will boost the production. We don’t think there is any reason for the prices to increase in the near future.”

He added, “There is an adequate supply of pulses such as yellow peas, tur daal, masur, moong and urad. In fact, around 3 lakh yellow peas were imported from Canada and France at the end of October.”

Traders say that in the coming rabi season, production is expected to go up given the good remunerative prices given to the farmers by the government.

However, people complain of being charged with high prices for pulses from their retailers under the clout of ‘inflation and the general price rise trend’.

“I agree that people are paying high prices on pulses despite record production and continuous supply. There has been considerable difference in the prices in the wholesale and retail market. There is an urgent need to regulate the retail market by the government.”

The Union government has prepared a contingency plan to increase pulses production in the rabi season, through area expansion and productivity enhancement. The plan targets to achieve an additional production of 2.78 million tonnes (MT) during the ensuing rabi season and to offset the loss of the kharif season. For this purpose, an additional amount of Rs80 crore has been allocated under the NFSM (National Food Security Mission)-Pulses programme.


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