Stocks
Sensex, Nifty await fresh signals: Friday Closing Report

A close below today’s low of 5,937 on Monday may be a first signal of reversal on the Nifty
 

The market snapped its three-day winning streak on selling pressure from banking, PSU, auto and realty stocks as the RBI, while announcing its monetary policy for the current fiscal, hinted at “little room” for future policy easing. A close below today’s low of 5,937 on Monday may be a first signal of reversal on the Nifty. The National Stock Exchange (NSE) reported a volume of 62.52 crore shares and advance-decline ratio of 511:807.

 

The Indian market opened in the red following announcement by the Reserve Bank of India (RBI) in its review of the Indian economy on Thursday said there was “limited space” for monetary policy action. Meanwhile, Asian markets were higher in morning trade following news that the People's Bank of China ushered in new guidelines for foreign investors’ yuan denominated activities, which will promote the yuan’s overseas use. US markets closed over 1% higher overnight on better-than-expected weekly jobless claims numbers.

 

Back home, the Nifty opened five points down at 5,994 and the Sensex resumed trade at 19,708, a cut of 28 points from its previous close. Selling pressure from banking, auto and realty sectors led the decline in early trade.

 

The indices witnessed a sharp slide around 11.00am shortly after the announcement of the monetary policy by the RBI, even as the central bank cut the repo rate by 25 basis points to 7.25%, the lowest since May 2011.

 

The market recovered from the lows after a short while on support from capital goods and IT stocks. The gains helped the benchmarks hit their highs in the noon session with the Nifty scaling 6,000 and the Sensex moving up to 9,745.

 

The benchmarks could not sustain the gains as profit booking pulled the indices lower again. The market was range-bound in the post-noon session in the absence of any fresh cues. A fresh bout of selling in late trade led the benchmarks to their lows. The Nifty touched 5,930 and the Sensex went back to 19,543 at their respective lows.

 

The market snapped it three-day winning streak on selling pressure from rate-sensitive sectors like banking, PSU, realty and auto. At the close the Nifty lost 55 points (0.92%) at 5,944 and the Sensex finished the week at 19,576, down 160 points (0.81%).

 

Even as the broader indices settled lower, they outperformed the Sensex in today’s trade. The BSE Mid-cap index fell 0.26% and the BSE Small-cap index declined 0.39%.   

 

The top sectoral indices were BSE Metal (up 1.44%); BSE Capital Goods (up 0.92%; BSE TECk (up 0.49%); BSE IT (up 0.44%) and BSE Healthcare (up 0.22%). The main losers were BSE Bankex (down 2.40%); BSE PSU (down 1.52%); BSE Auto (down 1.50%); BSE Realty (down 1.39%) and BSE Consumer Durables (down 1.06%).

 

Twelve of the 30 stocks on the Sensex closed in the positive. The chief gainers were Jindal Steel & Power (up 4.22%); Hindalco Industries (up 2.30%); Tata Steel (up 2.22%); Sun Pharmaceuticals (up 1.84%) and Sterlite Industries (up 1.36%). The key losers were Tata Motors (down 3.76%); State Bank of India (down 3.60%); ICICI Bank (down 3.57%); GAIL India (down 2.99%) and 2.56%).

 

The top two A Group gainers on the BSE were—Shree Renuka Sugars (up 7.03%) and GVK Power & Infrastructure (up 6.87%).

The top two A Group losers on the BSE were—Moser Baer India (down 5.39%) and Zee Entertainment Enterprises (down 3.58%).

 

The top two B Group gainers on the BSE were—MIC Electronics (up 19.04%) and Landmarc Leisure Corporation (up 18.60%).

The top two B Group losers on the BSE were— Golden Legand Leasing & Finance (down 50%) and Nagarjuna Fertilisers & Chemicals (down 0.94%).

 

Of the 50 stocks on the Nifty, 17 ended in the green. The key gainers were JSPL (up 3.81%); Hindalco Ind (up 2.34%); Tata Steel (up 2.22%); HCL Technologies (up 2.21%) and Sesa Goa (up 1.90%). The major loses were Tata Motors (down 3.99%); SBI (down 3.80%); IDFC (down 3.73%); ICICI Bank (down 3.56%) and DLF (down 3.41%).

 

Markets in Asia closed on a mixed note today. Some markets took support from the European Central Bank’s move on Thursday to cut the key refinancing rate to a record low of 0.5%, from 0.75% earlier and reduced the marginal lending rate to 1% from 1.5%. However, the Jakarta Composite declined 1.4%, its steepest drop since 22nd March, after S&P yesterday revised its outlook on Indonesia’s BB+ rating to stable from positive.

 

The Shanghai Composite surged 1.44%; the Hang Seng added 0.10%; the Seoul Composite gained 0.43% and the Taiwan Weighted rose 0.08%.Among the losers, the Jakarta Composite declined 1.37%; the KLSE Composite dropped 1.095 and the Straits Times fell 0.95%. The Japanese market was closed for a local holiday.

 

At the time of writing, two of the three key European indices were in the green while the US stock futures were marginally in the red, ahead of the release of the jobs report for April.

 

Back home, foreign institutional investors were net buyers of shares totalling Rs1,429.94 crore on Thursday while domestic institutional investors were net sellers of equities aggregating Rs899.07 crore.

 

Hindustan Copper (HCL) has decided to spend about Rs533 crore for trebling production capacity at its Khetri Copper Complex (KCC) in next five years, mines minister Dinsha Patel said today. “The company has taken steps to enhance ore production of KCC mines from current one million tonnes (MT) to 3.1 MT with modern equipment and technology,” Patel said in a written reply to the Lok Sabha. The stock fell 0.20% to close at Rs99.95 on the NSE.

 

Crompton Greaves, belonging to the Avantha Group, has signed a joint venture agreement with Indonesia’s PT Prima Layanan Nasional Enjinring (PLNE) to manufacture High Voltage (HV) and Extra High Voltage (EHV) switchgear in that country. While Crompton Greaves would have a 51% stake in the venture, PLNE, an engineering company belonging to an Indonesian government company Perusahaan Listrik Negara (PLN), would own 49% stake. Crompton Greaves surged 1.23% to Rs94.55 on the NSE.

 

IL&FS Engineering and Construction Company has been awarded with Integrated Management Systems (IMS) certificates by TUV Nord, a German certification body. These separate certifications are for quality management system, environmental management system and occupational, health and safety assessment series covering all business sectors. The stock declined 0.90% to settle at Rs38.75 on the NSE.

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