Sensex, Nifty in no man’s land: Wednesday Closing Report

If the Nifty closes below 4,930, weakness will have set in

Snapping its two-day winning streak, the market settled lower on weak corporate earnings from Tata Motors, a weak rupee and dismal global cues. Yesterday we had mentioned that the Nifty should continue to make a higher high and a higher low to help it reach the level of 5,040 and 5,100. The index changed this intraday behaviour after four days and headed lower today. If the benchmark closes below 4,930 we may see a weak move ahead. For the first time after nine trading days, the National Stock Exchange (NSE) saw a volume of 54.41 crore shares, which was above its 10 day moving average.

The market witnessed a gap down opening on the weakness in the rupee which breached the Rs56 per dollar level in early trade. Markets in Asia were in the mostly in the negative in morning trade as Spain’s banking troubles ignited fresh concerns about the debt crisis plaguing Eurozone economies. Back home, the Nifty opened 26 points down at 4,964 and the Sensex resumed trade at 16,392, a cut of 47 points from its previous close.

Meanwhile, the rupee on Wednesday again fell below the psychological level of Rs56 against the dollar in early trade on heavy demand for the greenback from importers amid concerns over euro-zone worries. The domestic unit opened lower at Rs56 and continued its downward journey to trade at Rs56.16, down 49 paise against its Tuesday's close of Rs55.67.

The volatile market inched gradually higher to hit its intraday high in post-noon trade on select buying. At this point the Nifty rose to 4,982 and the Sensex scaled 16,429. However, profit taking by investors at higher levels saw the indices pare all their gains in late trade to touch their intraday lows. At the lows, the Nifty went down to 4,945 and the Sensex dropped to 16,295.

The market settled near the lows with the Nifty falling 39 points to 4,951 and the Sensex dropping 126 points to end the session at 16,312.

The advance-decline ratio on the NSE was negative at 501:1178.

The broader markets underperformed the Sensex today. The BSE Mid-cap index closed 1.28% down while the BSE Small-cap index dropped 1.21%.

The sectoral gainers were BSE IT (up 0.38%) and BSE TECk (up 0.33%).The main losers were BSE Auto (down 3.97%); BSE Consumer Durables (down 2.25%); BSE Realty (down 2.18%); BSE Bankex (down 1.77%) and BSE Capital Goods (down 1.49%).

The Sensex was led by Sun Pharma (up 2.76%); Maruti Suzuki (up 2.12%); Tata Power (up 1.51%); Hindustan Unilever (up 1.10%) and Infosys (up 0.64%). The main laggards were Tata Motors (down 11.80%); BHEL (down 3.05%); ICICI Bank (down 2.62%); DLF (down 2.53%) and Sterlite Industries (down 2.06%).

The top gainers on the Nifty were Ambuja Cements (up 4.88%); ACC (up 2.57%); Maruti Suzuki (up 1.65%); Sun Pharma (up 1.63%) and HUL (up 1.57%). Tata Motors (down 12.28%) led the losers’ pack on the index. It was followed by Reliance Infrastructure (down 3.85%); IDFC (down 3.73%); BHEL (down 3.23%) and DLF (down 3.03%).

The Asian pack settled mostly lower weighed down by the banking woes in Spain. Sentiments were dampened following a report that the Chinese government had no plans for an initiative to counter the economic slowdown.

The Shanghai Composite fell by 0.21%; the Hang Seng tanked 1.92%; the Jakarta Composite slipped 0.03%; the Nikkei 225 fell by 0.28%; the Straits Times declined 0.64%; the KOPSI Composite dropped by 0.27% and the Taiwan Weighted settled 1.10% lower. Bucking the trend, the KLSE Composite gained 0.63%.

At the time of writing, the key European indices were down between 1.19% and 1.59% as banking woes in Spain raised concerns about the easing of the debt unending problems in Europe. Similarly, the US stock futures were in the negative, indicating a tepid start to the US markets.

Back home, foreign institutional investors were net buyers of shares totalling Rs90.50 crore on Tuesday whereas domestic institutional investors were net sellers of equities aggregating Rs199.40 crore.

Cairn India’s 74-km section of the 670-km-long Barmer-Jamnagar crude oil pipeline has been stalled due to opposition from landowners from the region, who are demanding adequate compensation for the pipeline passing through their fields. Cairn India settled 0.89% lower at Rs333.75 on the NSE.

Essar Group company Essar Ports today said Port of Antwerp International (PAI) has invested Rs175 crore at a price of Rs100 per equity share of the company through Global Depository Receipt (GDR). The investment is part of strategic alliance between the two entities. The stock fell 0.83% to close at Rs89.35 on the NSE.

Fortis Healthcare, the country’s second largest hospital chain is likely to raise about Rs2,000 crore by listing its hospitals business in Singapore, through group unit Religare Health Trust. Through these funds, it aims to expand its clinical operations and cut debt. Fortis closed 4.19% lower at Rs99.45 on the NSE.




Court rejects Facebook India's plea for dropping its name

The civil suit filed by one Mufti Aijaz Arshad Qasmi against Facebook India, Yahoo, Google and other internet firms objections to certain contents on their websites

New Delhi: A Delhi court on Wednesday dismissed the plea of Facebook India for dropping its name from a suit against it and other social networking websites for allegedly hosting objectionable contents, reports PTI.

Administrative Civil Judge (ACJ) Parveen Singh rejected Facebook India's plea and posted the matter for further hearing on 4th June.

The company had argued that it is not responsible for the contents appearing on website Facebook India had said it does not control or operate the servers that host the website, which are located in the United States.

Its counsel had submitted that it provides only technical support and services to Facebook (US).

The civil suit was filed by one Mufti Aijaz Arshad Qasmi against Facebook India, Yahoo, Google and other internet firms objecting to certain contents on their websites which, he alleged, had hurt the religious sentiments of various communities.


Sachin Tendulkar to take oath as Rajya Sabha member on 4 June

Two others--actress Rekha and industrialist Anu Aga--who were nominated to Rajya Sabha along with Tendulkar had already taken oath earlier this month

New Delhi: Indian Cricketer Sachin Tendulkar will take oath as member of Rajya Sabha (Upper House of Indian Parliament) on 4th June, reports PTI.

Tendulkar, who turned 39 recently and was nominated to the Upper House in April, is scheduled to take oath as member in the chamber of Rajya Sabha Chairman Hamid Ansari, Minister of State for Parliamentary Affairs Rajiv Shukla said on Wednesday.

Two others--actress Rekha and industrialist Anu Aga--who were nominated to Rajya Sabha along with Tendulkar had already taken oath earlier this month when the House was in session.

Tendulkar was busy with the Indian Premier League (IPL) season, which had just ended earlier this week.


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