While the bias has turned upward, Nifty may struggle to rally
We mentioned on Monday that the correction was set to deepen. On Wednesday the market witnessed a steady decline until 1.30pm, after which it surged with the NSE's CNX Nifty covering up the entire loss of Monday. The bourses may witness erratic movement on Thursday with the expiry of July futures and options (F&O).
The S&P BSE Sensex opened at 26,005 while Nifty opened at 7,746, the lowest opening of both the benchmark since 23 July 2014. Both Sensex and Nifty hit low of 25,850 and 7,708 from where it surged to hit the day’s high at 26,113 and 7,799, respectively.
Sensex closed at 26,087 (up 96 points or 0.37%) while Nifty closed at 7,791 (up 43 points or 0.55%). The NSE recorded a higher volume of 84.10 crore shares. India VIX fell 3.04% to close at 13.8875.
Except for Infra (1.40%) and IT (0.22%) all the other indices on the NSE closed in the green. The top five gainers were Finance (1.65%), Media (1.64%), Bank Nifty (1.58%), Pharma (1.47%) and Consumption (1.42%).
Of the 50 stocks on the Nifty, 35 ended in the green. The top five gainers were Lupin (5.48%), Bharti Airtel (5.47%), PNB (4.38%), DLF (3.27%) and Kotak Mahindra Bank (3.14%). The top five losers were LT (7.01%), Jindal Steel (1.83%), Tata Power (1.63%), Tech Mahindra (1.55%) and United Spirits (1.44%).
Of the 1,604 companies on the NSE, 737 companies closed in the green, 802 companies closed in the red while 65 companies closed flat.
According to a media report, the Cabinet Committee on Economic Affairs (CCEA) may take up royalty revision of 23 major minerals later in the day.
Bharti Airtel (5.26%) was the top gainer in the Sensex 30 pack. The company has posted a net profit of Rs2,160.40 crore for the quarter ended June 2014 as compared to Rs958.80 crore for the quarter ended June 2013. Sales has increased from Rs12,224.40 crore for the quarter ended June 2013 to Rs13,627.80 crore for the relevant period.
CESC (5.76%) was the top gainer in ‘A’ group on the BSE. The company has posted a net profit of Rs151 crore for the quarter ended June 2014 as compared to Rs131 crore for the quarter ended June 2013. Sales has increased from Rs1,434 crore to Rs1,863 crore for the relevant period.
Larsen & Toubro (7.32%) was the top loser Sensex 30 stock and in ‘A’ group on the BSE. After the market hours on Monday, L&T came out with its June 2014 quarterly results. It has posted a net profit of Rs893.55 crore for the quarter ended June 2014 as compared to Rs664.31 crore for the quarter ended June 2013. Sales has increased from Rs9,823.93 crore to Rs10,337.62 crore for the relevant period.
US indices closed Tuesday in the negative. Economic reports showed improving US consumer sentiment while the housing market remains in a slowdown. The Conference Board's consumer confidence index rose to 90.9, the highest reading since October 2007. Residential real-estate prices advanced 9.3% in the 12 months ended May, the slowest pace in more than a year, according to the S&P/Case-Shiller index of property values in 20 cities.
President Barack Obama announced new sanctions against Russia and warned its actions in Ukraine are "setting back decades of progress".
Market now awaits the announcement of Federal Reserve's Federal Open Market Committee (FOMC) on further reduction in its quantitative easing program after its two-day policy meeting which concludes later today.
Asian indices closed mostly in the green. Among the Asian indices trading on Wednesday, Taiwan Weighted (0.59%) was the top gainer while NZSE 50 (0.14%) was the top loser. European indices were showing a mixed trend while US Futures were trading in the green.