Nifty, Sensex will try to rally: Friday Closing Report

Nifty is oversold and will rally next week once it closes above 5,690

The market settled in the red on global concerns and domestic political worries, making it the sixth consecutive closing in the negative and the lowest closing since 26 November 2012.

The Nifty is oversold and will rally next week once it closes above 5,690. The National Stock Exchange (NSE) witnessed a turnover of 68.91 crore shares and advance-decline ratio of 488:1019.


The market opened flat on political worries after India supported a US-sponsored resolution seeking a probe into human rights violations in Sri Lanka and on unsupportive global cues. Markets in Asia were mostly lower on concerns from Cyprus while US markets settled down overnight as software services major Oracle’s revenues were below expectations.


The Nifty opened one point up at 5,660 and the Sensex resumed trade at 18,785, eight points down from its previous close. Select buying in initial trade pushed the indices hither in initial trade. However, intense volatility saw the benchmarks fluctuating between the red and green a couple of times.


Selling in consumer durables, realty, PSU and IT stocks led the market into the red in mid-morning trade. The volatile market continued to tread southwards in subsequent trade. A weak recovery attempt was made around noon, but sellers overpowered the buyers and sent the indices further down.


The market fell to its low around 1.30pm as selling expanded. At this point, the Nifty slipped to 5,632 and the Sensex declined to 18,669. However, value picking at the lows saw a smart recovery which helped the indices to emerge into the positive.


Gains in power, auto, capital goods and banking stocks led the benchmarks to their highs in the last hour of trade. The Nifty rose to 5,691 and the Sensex climbed to 18,860 at their respective highs.


However, the gains were short-lived as the indices went on a downtrend once again which resulted in the market closing in the red for the sixth day in a row.


The Nifty settled seven points (0.13%) lower at5,651 and the Sensex fell 57 points (0.30%) to finish at 18,736.


Among the broader indices, the BSE Mid-cap index fell 0.26% while the BSE Small-cap index dropped 0.96%.


The sectoral gainers were BSE Power (up 0.27%); BSE Metal (up 0.15%) and BSE Capital Goods (up 0.12%). The top losers were BSE Consumer Durables (down 2.06%); BSE Realty (down 1.31%); BSE IT (down 0.82%); BSE TECk (down 0.70%) and BSE Healthcare (down 0.54%).


Twelve of the 30 stocks on the Sensex closed in the positive. The main gainers were Bajaj Auto (up 3.85%); Jindal Steel & Power (up 3.11%); Hindalco Industries (up 1.64%); Hero MotoCorp (up 1.52%) and Tata Power (up 1.43%). The chief losers were State Bank of India (down 1.71%); Tata Steel (down 1.68%); Sun Pharmaceutical Industries (down 1.42%); Bharti Airtel (down 1.28%) and TCS (down 1.27%).


The top two A Group gainers on the BSE were—IDFC (up 4.83%) and Dish TV India (up 4.67%).

The top two A Group losers on the BSE were—NHPC (down 6.44%) and AstraZeneca Pharma India (down 5.07%).


The top two B Group gainers on the BSE were—Tera Software (up 18.95%) and Oswal Spinning & Weaving Mills (up 18.63%).

The top two B Group losers on the BSE were—Warren Tea (down 19.99%) and MVL Industries (down 19.35%).


Of the 50 stocks on the Nifty, 25 ended in the green. The key gainers were IDFC (up 6.19%); Ambuja Cement Company (up 4.20%); Bajaj Auto (up 3.97%); Bank of Baroda (up 3.70%) and JSPL (up 3.34%). The major losers on the index were DLF (down 3.17%); Ranbaxy Laboratories (down 1.9%); SBI (down 1.86%); Tata Steel (down 1.78%) and TCS (down 1.66%).


Markets in Asia ended lower on concerns of a collapse of the Cypriot banking system as the debt-ridden nation failed to secure from Russia. On the other hand, better-than-expected flash PMI data saw the Chinese market settling firm.


The Hang Seng declined 0.50%; the Jakarta Composite tanked 1.66%; the KLSE Composite fell 0.24%; the Nikkei 225 tumbled 2.35%; the Straits Times dropped 0.28%; the Seoul Composite shed 0.11% and the Taiwan Weighted lost 0.20%. Bucking the trend, the Shanghai Composite rose 0.175.


At the time of writing, the CAC 40 of France was down 0.57%; DAX of Germany declined 0.29% and UK’s FTSE 100 slipped 0.05%. At the same time, US stock futures were trading with marginal gains.


Back home, foreign institutional investors were net buyers of shares amounting to Rs368.31 crore on Thursday while domestic institutional investors were net sellers of equities totalling Rs30.08 crore.


Pharma major Aurobindo Pharma has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Valsartan and Hydrochlorothiazide tablets. The tablets are generic equivalent to Novartis Pharmaceuticals Corp’s Diovan HCT tablets and are indicated for the treatment of hypertension to lower blood pressure and falls under the cardiovascular (CVS) therapeutic category. The stock settled 4.26% down at Rs139.25 on the NSE.


Berger Paints: Colourful Future

Low margins but steady growth and high return on capital


Consumer products companies, like Nestlé, ITC, Godrej Consumer Products and Asian Paints are among the biggest value creators in the Indian market. While Berger Paints is not in the same league, it also benefits from the same factors that have fuelled the growth of the consumer goods sector—population and prosperity of an...

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Nifty, Sensex will attempt to stabilise: Thursday Closing Report

Nifty will try to find a foothold around 5,600 and attempt a rally till 5,700 in a laboured manner

The market decline continued for the fifth day, paring its gains in the second half of the trading session, on weak global cues and selling in rate-sensitive sectors. The Nifty will try to find a foothold around 5,600 and attempt a rally till 5,700 in a laboured manner. The National Stock Exchange (NSE) reported a volume of 74.62 crore shares and advance-decline ratio of 414:1120.
The market opened higher on signs of the end of the political impasse in Delhi and on support from its Asian peers, which were mostly up in morning trade. Markets across Asia were mostly firm on reports of China’s manufacturing showing an upward trend in March in a flash reading of the HSBC Markit Factory PMI. Wall Street closed on Wednesday as the US Federal Reserve reiterated it commitment to continue its $85 billion monthly bond buying programme. 
The Nifty opened 12 points up at 5,706 and the Sensex resumed trade at 19,926, a gain of 42 points over its previous close. Buying in recently beaten down sectors like metal, banking and capital goods led the market higher in early trade.
However, profit taking at higher levels took the indices into the red in the first hour of trade. But news reports of the Samajwadi Party leader Mulayam Singh Yadav asserting that his party would not “create any hurdles in passage of the Appropriation Bill in the Rajya Sabha” boosted investor sentiments once again.
The gains helped the market hit its intraday high in noon trade. At this point, the Nifty went up to 5,758 and the Sensex rose to 19,082.
The market drifted lower in post-noon trade amid a great deal of volatility on worries of automakers like Tata Motors as China announced new stringent fuel efficiency standards. The new rules are expected to dent revenues from the company’s Jaguar Land Rover division, which derives 20% of its revenues from China.
Meanwhile, European markets opened lower as a preliminary reading of German’s manufacturing index slipped to 48.9 and on worries that the European Central Bank would stop emergency funds to Cypriot banks after 25th March if the beleaguered nation refuses to toe the ECB line for bailout funds.
The domestic benchmarks dropped to their lows in late trade on selling pressure from realty, power, capital goods and auto sectors. The Nifty declined to 5,648 and the Sensex dropped to 18,757 at their respective lows.
The market settled near the lows as concerns about the government’s stability still weighed on investors. The Nifty lost 36 points (0.63%) to 5,659 and the Sensex closed the session at 18,793, down 91 points (0.48%).
The broader indices continued to be underperformers as the BSE Mid-cap index declined 1.07% and the BSE Small-cap index dropped 1.23%.
BSE Consumer Durables (up 0.78%); BSE TECk (up 0.60%) and BSE IT (up 0.27%) were the only gainers in the sectoral space. The losers were led by BSE Realty (down 2.91%); BSE Power (down 2.38%); BSE Capital Goods (down 2.30%); BSE Auto (down 2.23%) and BSE PSU (down 1.19%).
Eleven of the 30 stocks on the Sensex closed in the positive. The main gainers were Bharti Airtel (up 5.99%); ICICI Bank (up 3.35%); HDFC (up 2.09%); Jindal Steel & Power (up 1.02%) and Wipro (up 0.99%). The chief losers were Bajaj Auto (down 4.61%); Tata Motors (down 4.22%); Tata Power (down 4.06%); HDFC Bank (down 3.14%) and Larsen & Toubro (down 2.85%).
The top two A Group gainers on the BSE were—Bharti Airtel (up 5.99%) and ICICI Bank (up 3.35%).
The top two A Group losers on the BSE were—Core Projects (down 9.97%) and Sun TV Network (down 7.37%). 
The top two B Group gainers on the BSE were—Karma Energy (up 18.13%) and Gini Silk Mills (up 17.70%).
The top two B Group losers on the BSE were—Warren Tea (down 19.95%) and Pasari Spinning Mills (down 19.64%).
Of the 50 stocks on the Nifty, 13 ended in the green. The key gainers were Bharti Airtel (up 6.05%); ICICI Bank (down 3.07%); HDFC (up 2.15%); Mahindra & Mahindra (up 1.45%) and UltraTech Cement Company (up 1.36%). The major losers were Reliance Infrastructure (down 6.56%); Jaiprakash Associates (down 6.44%); Bank of Baroda (down 4.89%); Tata Power (down 4.37%) and Tata Motors (down 4.24%).
Markets in Asia closed mostly lower on concerns about the bailout to Cyprus and a threat by North Korea to attack US military bases in Guam and Japan.
The Shanghai Composite gained 0.30%; the Nikkei 225 surged 1.34%; the Straits Times advanced 0.59% and the Taiwan Weighted 0.18%. On the other hand, the Hang Seng fell 0.14%; the Jakarta Composite declined 0.60%; the KLSE Composite shed 0.05% and the Seoul Composite dropped 0.445.
At the time of writing, the key European markets were down between 0.75% and 1.15% while the US stock futures were marginally in the red.
Back home, institutional investors, both foreign and domestic, were net sellers in the equities segment on Wednesday. While FIIs pulled out funds totalling Rs236.72 crore, DIIs withdrew Rs356.93 crore from stocks.
Sadbhav Engineering today said it has bagged a contract for four-laning of a road project estimated at Rs 1,210 crore. The project is for four-laning of the Rohatak to Hissar sector of NH-10. The project is to be executed on design-build-finance- operate-and-transfer pattern under NHDP (National Highways Development Project) Phase-III in the state of Haryana. The stock fell 0.18% to settle at Rs112.05 on the NSE.
Om Metals Infraprojects has bagged an order worth Rs54 crore from the ministry of water resources, Nepal. The order is for the design, supply, fabrication and commissioning of hydro-mechanical works (mechanised shutters) at the headworks of the Sikta irrigation project. The project is scheduled for completion by June 2015. The stock declined 3.34% to close at Rs17.35 on the NSE.



Vinay Joshi

5 years ago

Wishful a thinking! Talk Nifty 5450-5500 bottoming it out.


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