The market indices will not easily breakout on either side of the current range without major policy measures
The Indian market on Tuesday opened in the negative and moved in a range. For the entire session indices traded in the negative and the BSE 30-share Sensex closed in the negative for the first time after three consecutive positive sessions while the NSE 50-share Nifty closed in the negative for the second consecutive session.
Sensex opened at 24,748 and hit the day’s high at the beginning of the session at 24,777 while the Nifty opened at 7,363 and hit a high at 7,373. The move on the indices further weakened as it moved lower and hit a low at 24,422 and 7,275. Sensex closed at 24,550 (down 167 points or 0.68%) while the Nifty closed at 7,318 (down 41 points or 0.56%). The NSE recorded a much lower volume of 129.90 crore shares. India VIX fell 3.72% to close at 19.1000.
Except for IT (0.45%), Media (0.36%), Metal (0.19%) and Pharma (0.08%) all the other indices on the NSE closed in the red. The top five losers were CPSE (3.46%), PSE (2.75%), PSU Bank (2.42%), Energy (1.80%) and Dividend Opportunities(1.39%).
Of the 50 stocks on the Nifty, 20 ended in the green. The top five gainers were Jindal Steel (5.79%), Tech Mahindra (2.58%), Tata Steel (2.21%), Infosys (1.30%) and Lupin (1.19%). The top five losers were Gail (7.59%), Bhel (5.27%), PNB (3.13%), Bank of Baroda (3.02%) and IDFC (2.89%).
Of the 1,591 companies on the NSE, 579 companies closed in the green, 966 companies closed in the red while 46 closed flat.
India's current account deficit (CAD) narrowed sharply to $1.2 billion (0.2% of GDP) in Q4 March 2014, from $18.1 billion (3.6% of GDP) in Q4 March 2013, which was also lower than $4.2 billion (0.9% of GDP) in Q3 December 2013. The lower CAD was primarily on account of a decline in the trade deficit as decline in imports was sharper than that in exports. On a BoP basis, merchandise exports declined by 1.3% to $ 83.7 billion in Q4 March 2014 as against an increase of 5.9% in Q4 March 2013.
The Reserve Bank of India (RBI) on Monday issued directions to all the non-banking finance companies (NBFCs) both deposit accepting and non-deposit accepting, stating that prior approval of the Reserve Bank is required in case of any takeover/acquisition of shares of an NBFC; or merger/amalgamation of an NBFC with another entity; or any merger/amalgamation of an entity with an NBFC, that would give the acquirer/ another entity control of the NBFC, or would result in acquisition/ transfer of shareholding in excess of 10% of the paid up capital of the NBFC.
Tata Steel was recently in news over the matter wherein Linde India said that it may seek compensation from Tata Steel for additional cost it incurred due to delay in commissioning of the steel plant at Kalinganagar in Odisha. Tata Steel (1.78%) was the top gainer in the Sensex 30 pack.
Although Gail India recorded growth in March 2014 quarter over March 2013 quarter, the company’s sequential results were weak. The stock fell 7.56% was the top loser in the Sensex 30 stock.
Jindal Steel (5.76%) was the top gainer in the ‘A’ group on the BSE hit an all-time high of Rs319.70 at the end of the session.
Jaypee Infratech (11.23%) was the top loser in ‘A’ group on the BSE fell on weak result.
After taking charge of the Finance Ministry, Jaitley said at a news conference today that a balancing act will have to be done to restore growth while curbing inflation and taking steps toward fiscal consolidation.
Reserve Bank of India Governor Raghuram Rajan today said that fighting inflation would continue to be a top priority, although the central bank will also aim to strike a balance between promoting economic growth and containing inflation. Rajan was speaking to reporters after meeting new Finance Minister Arun Jaitley in the capital.
US market was closed on Monday on account of Memorial Day.
Except for KLSE Composite (0.26%), Nikkei 225 (0.23%) and Taiwan Weighted (0.21%) all the other Asian indices which were trading today closed in the red. Seoul Composite (0.63%) was the top loser.
European indices were trading in the green. US Futures were also trading higher.
French consumer confidence stagnated at a historically low level in May, a survey from statistics agency INSEE showed on Tuesday. The monthly survey recorded consumer confidence of 85 in May, unchanged from 85 in April. That reading is well below the long-term average of 100.