Nifty will consolidate at the current level and move up only on strong policy impetus
The Indian market opened Monday sharply higher and moved in a narrow range until 2pm. However, it then started giving up gains and suffered a major plunge in the last hour when it crashed giving all the intra-day gains. The benchmark indices tried recovering and although BSE 30-share Sensex managed to close marginally higher, NSE 50-share Nifty closed in the negative.
The Sensex opened at 24,914, 221 points higher while Nifty opened 62 points higher at 7,429. Sensex moved from the high of 25,175 to hit a low of24,434 and closed at 24,717 (up 24 points or 0.10%) while Nifty hit a high of 7,504 and moved lower to hit a low of 7,269 and closed at 7,359 (down8 points or 0.11%). The NSE recorded a huge volume of 210.60 crore shares. India VIX rose 12.06% to close at 19.84.
Except for IT (1.34%) and Auto (1.06%) all the other indices on the NSE closed in the red. The top five loser were Realty (5.45%),Smallcap(2.99%),Nifty Midcap 50 (2.56%), PSU Bank (2.49%) and Midcap (1.99%).
Of the 50 stocks on the Nifty, 18 ended in the green. The top five gainers were M&M (7.37%), Sesa Sterlite (4.34%), HCL Technologies (3.93%), Wipro (3.89%) and Tata Motors (2.86%). The top five losers were DLF (6.03%), Bhel (5.84%), IDFC (5.34%), Bank of Baroda (4.58%) and Tata Power (3.92%).
Of the 1,601 companies on the NSE, 512 closed in the green, 1,050 companies closed in the red while 39 companies closed flat.
BJP leader Narendra Modi took oath as the Prime Minister on Monday evening. As per reports, the Modi-led government will have smaller cabinet, with one cabinet member heading a cluster of merged ministries. The focus is to increase coordination between different government departments and facilitate rapid decision-making.
Mahindra & Mahindra (6.23%) was the top gainer in the Sensex 30 pack and top gainer in ‘A’ group on the BSE. The company was in the news for it investing about Rs 40 billion ($684 million) in a new factory as it readies new models for an anticipated pickup in sales.
Tata Power (4.11%), among the top loser among the Sensex 30 stock, was in news for its plans to focusing on overseas opportunities including regions of South East Asia and SAARC, Africa and Middle East.
Housing Development and Infrastructure plans to raise up to Rs 1,800 crore this fiscal by selling stakes in some of its assets to partly repay its debt by around Rs 600-700 crore in FY15. The company plans to sell off its 100-acre land parcel in Hyderabad and some of its commercial projects in Mumbai this fiscal. The stock (9.16%) was among the top two losers in ‘A’ group on the BSE.
US indices closed in the green in Friday. Today the markets remain closed on account of Memorial Day.
Data from the Commerce Department showed sales of new US single-family homes rose more than expected in April and the supply of houses on the market hit a 3-1/2 year high.
Asian indices closed mostly in the green. Nikkei 225 (0.97%) was the top gainer while top losers, KLSE Composite and Seoul Composite, fell 0.34% each.
European indices were showing mixed performance. German consumer confidence is due to stabilise at a high level in June, suggesting that the continuing tension in Ukraine has yet to have a noticeable impact on German consumer sentiment. The Nuremberg-based GfK institute's forward-looking indicator is due to be 8.5 in June, the group reported Monday, matching the previous month.