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Nifty, Sensex to remain under pressure – Thursday closing report

Chance of a rally in Nifty only if it closes above 8340

 

After a slight rebound on Wednesday, a strong sell-off today took the indices to its lowest since 31 October 2014. Against our anticipation of the market moving sideways, the benchmarks resumed their declines.


S&P BSE Sensex opened lower at 27,796 while CNX Nifty opened at 8,339. The indices fell further to hit a low at 27,539 and 8,272. The indices hit a high at 27,796 and 8,348. The indices almost manged to reach yesterday’s close in the afternoon but were again pulled lower in the final session and closed slightly above the day’s low. Sensex closed at 27,602 (down 229 points or 0.82%), while the Nifty closed at 8,293 (down 63 points or 0.75%). NSE recorded 79.29 crore shares. India VIX rose 4.33% to close at 12.7725.


Minister of State, independent charge, Petroleum & Natural Gas, Dharmendra Pradhan informed the Rajya Sabha in a written reply on Wednesday that Petroleum & Natural Gas Regulatory Board (PNGRB) has envisaged a phased roll out plan for development of city/local natural gas distribution network in the country, which includes 8 districts of Bihar.


The Union Cabinet chaired by the Prime Minister, Narendra Modi, on Wednesday, gave its approval for allowing public sector banks to raise capital to meet their additional capital requirements under BASEL-III by diluting Government holding upto 52% in a phased manner.


The Cabinet Committee on Economic Affairs approved a mechanism for procurement of ethanol by PSU OMCs to carry out the ethanol blended petrol program. The CCEA approved replacing the current procedure on ethanol viz. delivered price of ethanol may be fixed in the range of Rs 48.50 per litre to Rs 49.50 per litre, depending upon the distance of the sugar mill from the depot/installation of the OMCs.


Finance companies like SREI Infrastructure Finance (16.92%), Gruh Finance (5.92%) and Bajaj Finance (3.65%) were among the top nine gainers in ‘A’ group on the BSE.


Havells India (9.22%) continued to be the top loser in ‘A’ group on the BSE. The company's management cut the company's standalone revenue forecast to 12%-14% from earlier 17%-20% for the year ending 31 March 2015, citing weak domestic demand.


Coal India (1.00%) was the top gainer in the Sensex-30 pack. Consultancy firm Deloitte which was selected to institute a study on restructuring options for Coal India is yet to submit its final report, Parliament was informed today.


ONGC (3.21%) was the top loser among Sensex-30 stocks thanks to a continues decline in crude prices. The stock was in the news since it won an offshore oil and gas exploration block in New Zealand. BSE sought a clarification for the same from the company for which a reply is still awaited.


On Wednesday US indices closed in the red. Asian indices closed mostly in the red. Seoul Composite (1.49%) was the top loser.


Japan's core machinery orders, a leading indicator of capital spending, snapped a four-month rising streak in October, according to data released yesterday. Core machinery orders fell 6.4% month on month and on a year-on-year basis, machinery orders fell 4.9% in October.


China's central bank has stepped up its efforts to pump more cash into its banking system with a $65 billion fund injection.


European indices were trading in the red. US Futures too trading flat.


The latest data showed that consumer price inflation in Germany remained unchanged last month. In a report, Federal Statistical Office, Germany said that German CPI remained unchanged at a seasonally adjusted 0% in November, from 0% in October.

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Nifty, Sensex may move sideways – Wednesday closing report

While Nifty will be influenced by overseas markets for now, only a close above 8,420 may lead to a short-term rally   

 

We had mentioned in Tuesday's closing report that CNX Nifty is likely to bounce back, but it may be a short-lived rebound. Today the index moved close to yesterday’s close without any clear direction, it ultimately closed marginally higher.
 
S&P BSE Sensex opened at 27,712 and moved in the range of 27,710 and 27,905, and closed at 27,831 (up 34 points or 0.12%), while Nifty opened at 8,318 and moved between 8,317 and 8,377, closing at 8,356 (up 15 points or 0.18%). NSE recorded a volume of 72.54 crore shares. India VIX fell 2.02% to close at 12.2425.
 
The Ministry of Urban Development yesterday said that a ten-member all Party Parliamentary delegation from Romania, which is currently on a six-day visit to India, has expressed the desire to enhance Romania's engagement with India in parliamentary and economic spheres.
 
Reports said that Parliamentary Select Committee has reportedly cleared the government's proposal of a composite cap of 49% on foreign investment in the insurance sector.
 
The Appellate Body of the World Trade Organization has ruled against the US imposing high duty on imports of certain Indian steel products, a move that will help Indian manufacturers and exporters.
 
India will have stronger GDP growth in 2015, which we forecast at 5%-6%, up from around 5% in 2014 according to Moody's in a report titled -- 2015 Outlook-Global Credit Conditions.
 
A new foreign trade policy (FTP) is under consultation and finalisation, government said today.
 
SKS Microfinance (10.76%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today. UBS has given the stock a ‘buy’ rating and a price target of Rs500.
Havells India (6.73%) fell drastically after hitting its 52-week high today. It was the top loser in ‘A’ group on the BSE.
 
State Bank of India (3.06%) was the top gainer in Sensex 30 pack. The bank’s chairperson Arundhati Bhattacharya reportedly said that a cut in lending rates was possible, when a little bit more of pick-up took place in credit. She also said the Reserve Bank of India should signal the market with a deeper cut in policy rate for banks to reduce lending rates.
 
BHEL (2.30%) was the top loser in the Sensex 30 stock. The stock was in the news after Parliament informed that the company has initiated the setting up an integrated solar photo-voltaic manufacturing facility of around 500 MW per annum in phases in Maharashtra.
 
On Tuesday US indices had mixed closing.
 
Except for Nikkei 225 (2.25%), Seoul Composite (1.29%) and Taiwan Weighted (1.06%) all the other Asian indices closed in the green. Shanghai Composite (2.93%) was the top gainer.
 
China's annual consumer inflation eased to a five-year low of 1.4% in November. The consumer price index fell 0.2% in November from October, the National Bureau of Statistics said today, 10 December 2014.
 
European indices were trading in the green while US Futures were trading marginally in the red.
 
French industrial output fell in October as production of energy, agricultural and food products declined on the month, official data showed today. Industrial production fell 0.8% in October compared with September, the national statistics agency Insee said.
 

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