The Nifty has to break the range of 5,190 and 5,340 for a reversal
The market settled lower with the banking sector as the top loser following a RBI panel suggesting stricter regulations on loan restructuring. Political drama at the Centre also weighed on market sentiments. Today, on the lowest volume of 47.55 crore shares on the National Stock Exchange (NSE) since 28 May 2012, the Nifty wiped off all the gains that were accrued yesterday. Yesterday we had mentioned that the Nifty has to break the range of 5,190 and 5,340 for a trend change. The index hit a low of 5,198 today. The market now awaits some fresh domestic cues to bring more momentum therein.
The market witnessed a gap down opening on poor showing by corporates, which declared their first quarter numbers on Thursday, and the Asian markets trading lower in morning trade. The Nifty opened nine points lower at 5,234 and the Sensex started off at 17,275, a cut of four points from its previous close.
While the opening figure on the Sensex was its intraday high, the Nifty soon followed suit, with a high of 5,239. The market slipped further southward on selling pressure in banking, realty, oil & gas and IT sectors.
The market moved in a narrow range on political compulsion at the Centre. Besides, a lower opening of the European markets also added to the woes back home. The benchmarks fell to their intraday lows in late trade with the Nifty at 5,198 and the Sensex dropping to 17,130.
The market managed to close off the lows with the Nifty declining 38 points (0.72%) to 5,205 and the Sensex settling at 17,158, down 120 points (0.70%). Investors now await the quarterly numbers of Reliance Industries, which will be announced after the market close.
The advance-decline ratio on the NSE was negative at 604:1081.
Among the broader indices, the BSE Mid-cap index closed 0.23% lower and the BSE Small-cap index fell by 0.11%.
BSE Auto (up 0.27%); BSE Consumer Durables (up 0.21%; BSE Metal (up 0.12% and BSE Fast Moving Consumer Goods (up 0.01%) ended in as sectoral gainers. The main losers were BSE Bankex (down 1.28%); BSE Capital Goods (down 1.14%); BSE Realty (down 0.99%); BSE Power (down 0.95%) and BSE Oil & Gas (down 0.71%).
The top performers on the Sensex were Bajaj Auto (up 2.67%); Maruti Suzuki (up 2.43%); TCS (up 1.86%); Coal India (up 0.38%) and Tata Steel (up 0.28%). Dr Reddy’s Laboratories (down 2.68%); BHEL (down 2.47%); Cipla (down 1.67%); ICICI Bank (down 1.58%) and Wipro (down 1.47%) settled at the bottom of the index.
The top two A Group gainers on the BSE were—Tata Communications (up 5.82%) and IPCA Laboratories (up 5.21%).
The top two A Group losers on the BSE were—Indiabulls Financial Services (down 4.68%) and Strides Arcolab (down 2.96%).
The top two B Group gainers on the BSE were—Advik Laboratories (up 19.96%) and
Aarya Global Shares & Securities (up 13.35%).
The top two B Group losers on the BSE were—Arihant Capital (down 11.45%) and Blue Chip India (down 10.53%).
The major gainers on the Nifty were Bajaj Auto (up 2.73%); Maruti Suzuki (up 2.65%); Asian Paints (up 2.23%); TCS (up 1.83%) and Jaiprakash Associates (up 1.04%). BHEL (down 3.02%); Kotak Mahindra Bank (down 2.82%); Dr Reddy’s Labs (down 2.75%); IDFC (down 1.89%) and Ranbaxy Laboratories (down 1.67%) were the main laggards on the index.
Markets in Asia closed weak following reports that the Chinese government is unlikely to relax property curbs and a fall in US existing housing sales.
The Shanghai Composite dropped 0.74%, the Jakarta Composite declined 0.37%; the KLSE Composite fell 0.10%; the Nikkei 225 tanked 1.43%; the Straits Times closed 0.44% down while the Seoul Composite settled flat at 1,823. Bucking the trend, the Hang Seng gained 0.42% and the Taiwan Weighted rose 0.23%.
At the time of writing, the key European indices were down between 0.39% and 0.90% and the US stock futures were in the negative.
Back home, foreign institutional investors were net buyers of shares amounting to Rs125.78 crore on Thursday while domestic institutional investors were net sellers of equities totalling Rs228.84 crore.
The government today approved the demerger of surplus Tata Communications (formerly VSNL) land into a separate company, an issue that has been pending decision since Tata Communications acquired the PSU in 2002. The land is estimated to fetch Rs6,150 crore to the exchequer. The stock jumped 6% to close at Rs260.50 on the NSE.
IPCA Laboratories has informed BSE that it has received USFDA approval for its oral solid dosage formulations manufacturing facility situated at Pharmazone, SEZ Indore, Pithampur, Madhya Pradesh. This approval will enable the company to commercialise more oral solid dosage formulations in the US market. The stock surged 5.80% to close at Rs395 on the NSE.
The social network juggernaut, Facebook, scored 61 out of 100 in a recent survey conducted by American Customer Satisfaction Index due to drastic decisions involving privacy and introduction of the timeline
One person was killed, four were injured seriously, and nine sustained minor injuries when Mumbai-Gondia Vidarbha Express collided with derailed bogies of a local train between Kasara and Umbermali last night