The market pared all its gains in the second half of trade and settled lower even as the government won the vote in the Rajya Sabha on FDI in retail. Although today the Nifty made a higher high and a higher low the index closed in the negative. While the uptrend is not broken, a close below the day’s low may pull down the Nifty further. The National Stock Exchange (NSE) saw volume of 87.59 crore shares and an advance decline ratio of 826:940.
The domestic market opened with marginal gains ahead of the crucial vote in the Rajya Sabha (Upper House) for allowing FDI in retail. On the global front, US stocks closed higher on Thursday ahead of the release of the monthly jobs report and a boost in technology stocks. The Asian pack was mostly higher on hopes that the US government would avoid additional taxes and spending cuts.
The Nifty opened three points higher at 5,934 and the Sensex resumed trade at 19,515, up 28 points over its previous close. Gains in auto, metal, consumer durables and capital goods stocks led the benchmarks to their intraday highs in early trade. At the highs, the Nifty rose to 5,950 and the Sensex climbed to 19,562.
However, the indices could not sustain the gains and dipped into the negative a short while later. The cautious market was flat to positive in the remaining part of the morning session.
A huge bout of selling in noon trade pushed the indices into the red once again. Selling in IT, realty, metal and banking sectors kept the market in the negative, despite a positive opening of the key European markets.
Meanwhile, the animated debate on FDI in the Rajya Sabha today saw clashes between the government and the opposition, which accused commerce minister Anand Sharma of misleading the House and demanded an apology. The uproar led to abrupt adjournment of the House for over an hour, while the minister was speaking on the motion moved against bringing FDI in retail sector.
The benchmarks fell to their intraday lows in the last half hour of trade dragged by a sell-off in IT stocks. At the lows, the Nifty touched 5,889 and the Sensex dropped to 19,363.
However, the indices managed to close off the lows, albeit in the red. The Nifty closed 24 points (0.40%) lower at 5,907 and the Sensex lost 63 points (0.32%) to finish at 19,424.
Among the broader indices, the BSE Mid-cap index shed 0.08% and the BSE Small-cap index slipped 0.10%.
With the exception of the BSE Consumer Durables (up 0.53%) and BSE Auto (up 0.51%), all other sectoral gauges settled lower. The top losers were Realty (down 1.68%); BSE IT (down 0.98%); BSE TECk (down 0.96%); BSE Metal (down 0.77%) and BSE Bankex (down 0.52%).
Eleven of the 30 stocks on the Sensex closed in the positive. The main gainers were Maruti Suzuki (up 1.94%); Tata Power (up 0.87%); BHEL (up 0.77%); Mahindra & Mahindra (up 0.74%) and Hindalco Industries (up 0.69%). The key losers were Sterlite Industries (down 2.25%); Tata Steel (down 1.19%); TCS (down 1.13%); Reliance Industries (down 0.89%) and Sun Pharmaceutical Industries (down 0.85%).
The top two A Group gainers on the BSE were—Gitanjali Gems (up 8.92%) and Motherson Sumi (up 6.96%).
The top two A Group losers on the BSE were—Hexaware Technologies (down 9.30%) and Eicher Motors (down 3.78%).
The top two B Group gainers on the BSE were—Revathi Equipment (up 19.98%) and Shirpur Gold Refinery (up 19.96%).
The top two B Group losers on the BSE were—Bhanot Construction & Housing (down 19.95%) and Marg (down 13.44%).
Out of the 50 stocks listed on the Nifty, 13 stocks settled in the positive. The major gainers were Maruti Suzuki (up 1.83%); M&M (up 0.99%); Tata Power (up 0.92%); Jaiprakash Associates (up 0.91%) and Lupin (up 0.87%). The key losers were DLF (down 3.24%); Axis Bank (down 2.95%); Sesa Goa (down 2.55%); HCL Tech (down 2.01%) and Tata Steel (down 1.75%).
Markets in Asia settled mostly higher as hopes of a budget deal which would lead to avoidance of new taxes in the US boosted exporters in the continent. Signs of a recovery in the Chinese economy also supported the sentiments.
The Shanghai Composite surged 1.60%; the KLSE Composite added 0.10%; the Straits Times climbed 0.94%; the Seoul Composite gained 0.40% and the Taiwan Weighted rose 0.25%. On the other hand, the Hang Seng declined 0.26%; the Jakarta Composite slipped 0.04% and the Nikkei 225 fell 0.19%.
At the time of writing, the European indices which had opened in the positive were trading lower and the US stock futures were marginally lower.
Back home, foreign institutional investors were net buyers of shares totalling Rs838.14 crore on Thursday while domestic institutional investors were net sellers of equities amounting to Rs662.74 crore.
Shree Ganesh Jewellery House, makers and exporters, of handcrafted gold and studded jewellery, today said it has set up joint venture (JV) with Bangladesh’s Rocks Creation. The initial investment for this 75:25 JV, which is yet to be named, will be Rs10 crore each by both the companies and in phases it will be scaled to a total of Rs50 crore. Shree Ganesh Jewellery jumped 3.87% to close at Rs124.90 on the NSE.
SKS Microfinance is raising Rs54.48 crore by securitising receivables from 64,579 micro loans extended to rural women, a company statement said today. The announcement comes close on the heels of its Rs200 crore securitisation transaction with a leading public sector bank in November 2012. SKS declined 1.42% to settle at Rs169.95 on the NSE.
Tiles maker Somany Ceramics today said it will invest over Rs100 crore in the next three years for enhancing its production capacities by 10 million square metres annually. The company is looking to form a new joint venture within the next six months for a new facility with an installed capacity of 2.5-3 million square metres annually in Gujarat. The stock surged 2.18% to close at Rs96 on the NSE.