The market closed lower on selling pressure in IT, metal, fast moving consumer goods and auto sectors and on global worries. Today the Nifty hit a lower high and a lower low and ended in the negative for the fifth consecutive trading day. We may now see the index consolidating at the day's low and wait for fresh signals that will decide its further direction. The National Stock Exchange (NSE) saw a volume of 80.61 crore shares and an advance decline ratio of 688:1109.
The market opened lower tracking weak global cues. US markets closed over 1% lower overnight as president Barack Obama reiterated his move to impose higher taxes in his move to tackle the “fiscal cliff” and the ones in Asia were weak in morning trade on protests against austerity measures across Europe.
The Nifty opened17 points down at 5,650 and the Sensex started off at 18,590, down 29 points from its previous close. Select buying pushed the benchmarks higher, albeit still in the red.
The indices hit their intraday highs in initial trade itself with the Nifty going up to 5,652 and the Sensex inching up to 18,594. But profit booking in blue chips led the market lower as trade progressed.
A weak opening of the European markets added to the woes of domestic investors in the second half of the trading session. Tension in the Middle East as Israel opened fire to quell Palestinian rocket attacks also kept investors guarded.
The market touched the low point of the day at around 1.30pm. At the lows, Nifty fell to 5,604 and the Sensex went down to 18,409. But buying in index heavy weights like Reliance Industries, State Bank of India and ICICI Bank resulted in a minor bounce back from the lows.
At the close, the Nifty fell 36 points (0.63%) to 5,631 and the Sensex settled at 18,471, down 148 points (0.79%).
Among the broader indices, the BSE Mid-cap index fell 0.17% while the BSE Small-cap index gained 0.28%.
The sectoral gainers were BSE Realty (up 1.97%); BSE Consumer Durables (up 1.64%) and BSE Power (up 0.13%). The chief losers were BSE IT (down 1.79%); BSE Metal (down 1.66%); BSE Fast Moving Consumer Goods (down 1.30%); BSE Auto (down 0.88%) and BSE Healthcare (down 0.81%).
Eight of the 30 stocks on the Sensex closed in the positive. The top gainers were Bharti Airtel (up 2.95%); BHEL (up 1.01%); HDFC (up 0.88%); Hindustan Unilever (up 0.81%) and Coal India (up 0.59%). The main losers were Tata Steel (down 2.66%); ITC (down 2.57%); Jindal Steel (down 2.32%); TCS (down 2.23%) and Wipro (down 2.19%).
The top two A Group gainers on the BSE were—Jet Air India (up 9.68%) and Sun TV Network (up 7.37%).
The top two A Group losers on the BSE were—United Breweries (down 992%) and Shree Cement (down 5.76%).
The top two B Group gainers on the BSE were—Money Matters Financial Services (up 20%) and Tata Coffee (up 20%).
The top two B Group losers on the BSE were—Raymed Labs (down 19.42%) and Fact Enterprise (down 19.41%).
Out of the 50 stocks listed on the Nifty, 18 stocks settled in the positive. The major gainers were Bharti Airtel (up 2.83%); Kotak Mahindra Bank (up 2.81%); DLF (up 2.76%); IDFC (up 1.67%) and Cairn India (up 1.63%). The top losers were UltraTech Cement Company (down 3.49%); ITC (down 2.87%); Tata Steel (down 2.54%); Jindal Steel (down 2.46%) and Grasim Industries (down 2.45%).
Markets across Asia settled lower on opposition to president Obama’s move to address the fiscal deficit with additional taxes. The change in leadership in China with Xi Jinping replacing Hu Jintao as head of the Chinese Communist Party also impacted investor sentiment.
The Shanghai Composite declined 1.22%; the Hang Seng tanked 1.55%; the Straits Times contracted 1.08%; the Seoul Composite dropped 1.23% and the Taiwan Weighted settled 0.22% down. Bucking the trend, the Jakarta Composite gained 0.44% and the Nikkei 225 surged 1.90%.
At the time of writing, the key European markets were down between 0.34% and 0.52% on news that economic growth in Germany slowed to 0.2% in the September quarter over the previous quarter while Spain’s growth contracted 0.3%. GDP data for the Eurozone is expected to be released later in the day. On the other hand, US stock futures were modestly higher.
Back home, foreign institutional investors were net sellers of shares totalling Rs18.09 crore in the brief trading session to welcome the Hindu New Year on Tuesday. On the other hand, domestic institutional investors were net buyers of equities amounting to Rs19.07 crore.
Kerala-based Muthoot Finance, a leading gold loan company, today said it has tied up with Pension Fund Regulatory and Development Authority (PFRDA), an autonomous body under the ministry of finance, to act as a service provider for the National Pension Scheme. Muthoot Finance is the only Non-Banking Financial Company in the state to be approved by the PFRDA to act as a service provider for the pension plan, a company release said here. The stock declined 3.01% to close at Rs219.25 on the NSE.
Emkay Global Financial Services has announced a pact with London-based Icon Capital to provide services of investment banking and equity broking activities. These include corporate advisory services, research led securities trading and capital markets advisory, firm said in a statement today. The partnership will seek to cover activities relating to undertaking cross-border mergers and acquisitions (M&A) and other investment banking related activities. Emkay Global gained 6.28% to close at Rs22 on the NSE.
Mahindra & Mahindra Financial Services (MMFS) today said it has raised Rs867 crore through a qualified institutional placement (QIP) issue, making it one of the most successful share sales in recent times. The Mumbai-headquartered finance arm of auto major M&M said the issue was oversubscribed five times. The company said it issued 97,50,257 equity shares at Rs889 a share, at par with its market price of 7th November, which was the launch date of the issue. The stock jumped 4.81% to close at Rs995.85 on the NSE.