The market snapped its two-day winning streak and settled lower today on selling pressure in power, metal and capital goods stocks. Although the Nifty managed to keep itself above yesterday’s low, today’s move on the index took away more than half of yesterday's gain. The medium-term trend is down. The National Stock Exchange (NSE) saw a volume of 66.04 crore shares and an advance decline ratio of 652:1051.
The domestic market witnessed a gap down opening, giving up the gains accrued yesterday, on profit booking and unsupportive global cues. Markets in the US closed lower as technology stocks dragged following lower-than-expected earnings report from Google and a rise in weekly jobless claims. Markets in Asia were subdued in morning trade tracking overnight losses in the US.
Back home, the Nifty opened 16 points lower at 5,703 and the Sensex started the day at 18,768, down 24 points from its previous close. The market inched up to its intraday high in early trade with the Nifty going up to 5,712 and the Sensex rising to 18,770.
The benchmarks extended their losses as trade progressed on selling pressure in banking, capital goods, metal and auto sectors. The market continued to languish in noon trade on a lower opening of the European indices.
The indices fell to their lows shortly before 2.30pm wherein the Nifty stood at 5,660 and the Sensex retracted to 18,612.
However, a minor recovery helped the market close off the lows. The Nifty fell 34 points (0.60%) to 5,684 and the Sensex dropped 110 points (0.58%) to finish at 18,682.
Among the broader markets, the BSE Mid-cap index declined 0.52% and the BSE Small-cap index fell 0.34%.
BSE Fast Moving Consumer Goods (up 0.84%) and BSE Consumer Durables (up 0.43) were the only sectoral gainers. The top losers were BSE Power (down 1.44%); BSE Metal (down 1.32%); BSE Capital Goods (down 1.09%); BSE Auto (down 0.90%) and BSE Bankex (down 0.86%).
Six of the 30 stocks on the Sensex closed in the positive. The key gainers were ITC (up 2.09%); Hero MotoCorp (up 0.54%); Dr Reddy’s Laboratories (up 0.43%); Bharti Airtel (up 0.34%) and Infosys (up 0.32%). The major losers were Hindalco Industries (down 2.54%); Jindal Steel (down 2.53%); GAIL India (down 2.31%); BHEL (down 2.02%) and Tata Power (down 1.82%).
The top two A Group gainers on the BSE were—CRISIL (up 3.37%) and Gitanjali Gems (up 3.28%).
The top two A Group losers on the BSE were—Exide Industries (down 8.82%) and Indian Hotels (down 5.48%).
The top two B Group gainers on the BSE were—Fintech Communications (up 20%) and Agre Developers (up 19.91%).
The top two B Group losers on the BSE were—SEL Manufacturing Company (down 9.75%) and Raj Oil Mills (down 9.69%).
Out of the 50 stocks listed on the Nifty, nine stocks settled in the positive. The top gainers were ITC (up 1.87%); Ambuja Cement (up 1.48%); Dr Reddy’s (up 0.53%); Infosys (up 0.44%) and Bharti Airtel (up 0.41%). The main losers were Jindal Steel (down 2.62%); Hindalco Ind (down 2.55%); BHEL (down 2.37%); BPCL (down 2.315) and Grasim Industries (down 2.12%).
The Asian pack closed mostly lower on dismal earnings reports from tech majors Google and Microsoft. The lower-than-expected earnings reflected the slowdown in the economy, analysts pointed.
The Shanghai Composite slipped 0.16%; the Jakarta Composite declined 0.59%; the Straits Times fell 0.37%; the Seoul Composite dropped 0.78% and the Taiwan Weighted settled 0.76% lower. On the other hand, the Hang Seng rose 0.15%; the KLSE Composite added 0.06% and the Nikkei 225 gained 0.22%.
At the time of writing, the key European indices were between 0.28% and 0.69% and the US stock futures were in the negative, indicating a lower opening for US stocks.
Back home, institutional investors—foreign and domestic—were net sellers in the equities segment on Thursday. While foreign institutional investors offloaded stocks worth Rs68.87 crore, domestic institutional investors pulled out shares of Rs184.56 crore.
Petronet LNG (PLL) is looking at plans to sell gas to the power sector from its proposed terminal at Gangavaram port in Andhra Pradesh. The company has to source liquefied natural gas cheap if it is to be viable for the power sector. PLL has signed a pact with HPCL to cater to the latter’s Vizag refinery and at least five power generation companies located close to port are in discussions with PLL for sourcing liquefied natural gas. The stock gained 0.99% to close at Rs168.80 on the NSE.
Public sector lender Dena Bank has waived the entire processing fee for home and car loans. For personal and gold loans, it has reduced the fee by half. The move follows the country’s largest bank State Bank of India’s reduction in processing fee on home and car loans by half. The festive offer is valid up to 31st October 31, the bank said. The stock declined 0.94% to close at Rs110.50 on the NSE.
Apollo Hospitals Enterprise (AHEL) is planning to set up standalone diabetes clinics under the brand name “Sugar Clinic” to cash in on healthcare service opportunities in diabetes management across the country. The company is scouting for a tie-up with a foreign partner to offer diabetes management services to patients, said a senior official from AHEL. The stock gained 1.36% to close at Rs755 on the NSE.