The first sign of a rally will be a close of Nifty above 7,400
We had mentioned in Wednesday’s closing report that Nifty, Sensex continue to be deeply oversold and that the first sign of a short-term Nifty rally would be on a close above 7,400. The major indices in the Indian stock markets ended flat after huge volatility in the day’s trading. The trends in the major indices of the markets during Thursday’s trading are given in the table below:
Bearish global indices, coupled with a weak rupee and long-liquidation positions pushed down the Indian equity markets on Thursday. This led to major indices of the Indian equity markets to trading flat. The selling pressure led the bellwether indices to trade at levels which were last seen during May-June 2014. Initially, the bellwether indices opened on a positive note due to recovery in the US markets after a huge decline in the opening and also due to higher opening in Asian markets. The US futures were also quoting higher. However, the US futures soon ceded gains and went into negative which led to a sharp decline in all Asian markets including India.
On Wednesday, the foreign institutional investors (FIIs) were net sellers again. According to data with stock exchanges, FIIs divested Rs1,324.69 crore on Wednesday. Besides, caution prevailed over the upcoming US macro-data points of jobless claims and crude oil inventory figures. Nevertheless, markets were able to pare some of their losses on the back of value buying. The positive sentiments were supported after European markets opened in the green.
The S&P BSE market breadth favoured the bulls -- with 1,344 advances and 1,188 declines. While valuations have turned attractive, FIIs continue to remain net sellers which would limit any gains in the market, observed market analysts.
After a positive opening, Chinese stocks continued to dive on Thursday, with Shanghai dipping below the 2,900-mark again. The benchmark Shanghai Composite Index lost 3.23% to close at 2,880.48 points. Shenzhen dropped 3.77% to close the day at 9,975.97 points, Xinhua news agency reported. The ChiNext Index, the NASDAQ-style board of growth enterprises, dived 4.18% to close at 2,112.40 points.
US stocks recovered from a deep decline in the initial stages of the session as a further decline in oil prices continued to weigh on investor sentiment. The Dow Jones Industrial Average tumbled 249.28 points, or 1.56%, to 15,766.74. The S&P 500 dipped 22.00 points, or 1.17%, to 1,859.33. The Nasdaq Composite Index fell 5.26 points, or 0.12%, to 4,471.69. Oil prices refreshed their multi-year lows on Wednesday, dragged down by a global supply glut. The West Texas Intermediate for February delivery settled at $26.55 a barrel on the New York Mercantile Exchange, its lowest level since May 2003. Investors turned to safe haven assets, such as sovereign bonds and gold, as global stock markets are in full retreat.
Aditya Birla Group company UltraTech Cement on Wednesday reported a staggering rise of 36% in its consolidated net profit for the third quarter (Q3) of the current 2015-16 fiscal. According to the company, its profit after tax soared to Rs546 crore from Rs400 crore in the like period of last fiscal. The company's net sales grew by five percent at Rs6,108 crore vis-a-vis Rs5,832 crore in the corresponding period of the previous year. On a standalone basis, the company's net profit rocketed by 39.83% at Rs509 crore from Rs364 crore earned during the like period of last fiscal. The net sales during the quarter under review rose by 4.71% at Rs5,747 crore as compared to Rs5,488 crore in the corresponding period of the previous year. In its outlook the company noted that the demand for cement is expected to pick up in the near term. "The governments' focus on infrastructure development, housing sector, smart cities, roads etc., augurs well for UltraTech," the company said in a statement. "The company is confident of meeting the upsurge in demand and participating proactively in the next phase of growth in the country." The company’s shares closed at Rs2,695.00, up 2.66% on the BSE.
Axis Bank on Wednesday said it posted a net profit of Rs2,175.3 crore for the quarter ending December 2015. The bank’s net profit (for the third quarter of 2015-16) increased by 14.5%, a rise of Rs275.54 crore. It posted a net profit of Rs1,899.76 crore in the year ago quarter. According to the unaudited financial results posted on the Bombay Stock Exchange (BSE), total income for the bank rose to Rs12,531.11 crore in Q3 2015-16 against Rs10,928.81 crore clocked in Q3 2014-15. The bank’s shares closed at Rs408.90, up 5.21% on the BSE.
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: