The first sign of reversal on the Nifty will be a close below any previous day's low
Gains in the FMCG sector, supported by strong earnings by Hindustan Unilever on Monday, helped the market close in the green for the second day, despite adverse political developments in Delhi earlier in the day. The first sign of reversal on the Nifty will be a close below any previous day's low. The National Stock Exchange (NSE) registered a turnover of 64.03 crore shares and advance-decline ratio of 605:699.
Indian stock markets will remain closed on Wednesday for May Day.
The market opened on a strong note on continuation of gains in fast moving consumer goods leader Hindustan Unilever, which said its parent Unilever Plc would hike its stake in its Indian arm through an open offer. The news also supported gains in other companies in the sector like ITC, Marico and Godrej Consumer Products. Meanwhile, markets in Asia were firm in morning trade tracking better-than-expected housing data from the US.
The Nifty opened 29 point up at 5,933 and the Sensex resumed trade at 19,493, a gain of 105 points over its previous close. Gains in the FMCG sector catapulted the benchmarks to their intraday highs in early trade itself, The Nifty rose to 5,962 and the Sensex climbed to 19,623.
According to a release by HUL, “Unilever PLC along with Unilever NV is making a voluntary open offer to acquire 487 million equity shares representing 22.52% of the total voting share capital from the public shareholders of Hindustan Unilever at a price of Rs600 per share.” HSBC Securities and Capital Markets (India), has been mandated as the manager of the open offer.
The market could not hold on to its gains, as political developments at the Centre following the Supreme Court displeasure about the CBI’s handling of the coal scam report saw the market benchmarks paring their gains.
The indices slipped into the red in late morning trade as the fate of the ruling hung in balance after the opposition staged a walk-out from the Lok Sabha on the coal scam issue, jeopardising the passage of the Railway Budget and Union Budget.
The market fell to its lows in noon trade on selling pressure from realty, oil & gas, capital goods and PSU stocks. At the lows the Nifty touched 5,868 and the Sensex went back to 19,317.
Select buying in FMCG, metal and healthcare sectors helped the market edge higher in late grade and settle in the positive for the second day in a row. The Nifty closed 26 points (0.44%) higher at 5,930 and the Sensex ended at 19,504, a rise of 117 points (0.60%).
While the market barometers managed to close in the green on a late rally, the broader indices settled mixed, as the BSE Mid-cap index gained 0.42% and the BSE Small-cap index fell 0.31%.
The top sectoral gainers were BSE Fast Moving Consumer Goods (up 4.65%); BSE Metal (up 0.96%); BSE Healthcare (up 0.85%); BSE TECk (up 0.74%) and BSE IT (up 0.65%). The main losers were BSE Realty (down 1.07%); BSE Capital Goods (down 0.47%); BSE Consumer Durables (down 0.44%); BSE Bankex (down 0.33%) and BSE Oil & Gas (down 0.32%).
Eighteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were Hindustan Unilever (up 17.28%); Sterlite Industries (up 4.03%); Mahindra & Mahindra (up 2.24%); Wipro (up 1.75%) and Coal India (up 1.64%). HDFC (down 1.94%); HDFC Bank (down 1.71%); Hindalco industries (down 1.57%); Larsen & Toubro (down 1.10%) and Bajaj Auto (down 0.80%) were the chief losers.
The top two A Group gainers on the BSE were—HUL (up 17.28%) and United Spirits (up 6.48%).
The top two A Group losers on the BSE were—Essar Oil (down 9.96%) and Financial Technologies India (down 3.95%).
The top two B Group gainers on the BSE were—Dr Agarwal’s Eye Hospital (up 0%) and Alka India (up 20%).
The top two B Group losers on the BSE were—Austin Engineering Company (down 19.93%) and Micro Technologies India (down .91%).
Of the 50 stocks on the Nifty, 24 ended in the green. The key gainers were HUL (up 17.17%); Sesa Goa (up 3.09%); HCL Technologies (up 2.74%); M&M (up 2.65%) and NMDC (up 2.27%). The main losers were Jaiprakash Associates (down 2.60%); IDFC (down 2.45%); IndusInd Bank (down 2.24%); Punjab National Bank (down 1.96%) and HDFC (down 1.94%).
Markets across Asia, with the exception of the Japanese benchmark, closed higher on the back of positive economic indicators from the US overnight. Expectations of continuation of stimulus measures also boosted investor sentiment.
The Hang Seng advanced 0.64%; the Jakarta Composite climbed 0.69%; the KLSE Composite gained 0.57%; the Straits Times rose 0.19%, the Seoul Composite surged 1.20% and the Taiwan Weighted settled 0.80% higher. Bucking the trend, the Nikkei 225 lost 0.17%. The Shanghai Composite remained closed for a local holiday.
At the time of writing, the key European indices were mixed and the US stock futures were marginally in the red ahead of the release of the consumer confidence data.
Back home, foreign institutional investors were net buyers of shares totalling Rs620.38 crore on Monday whereas domestic institutional investors were net sellers of equities amounting to Rs366.20 crore.
Pharma major Aurobindo Pharma today said the company has received final approval from the US health regulator to manufacture and market Quinapril tablets in the American market. The company has received the approval to manufacture the drug, which is indicated for the treatment of hypertension and falls under the cardiovascular (CVS) therapeutic category, in strengths of 5mg, 10mg, 20mg and 40mg, it said in a release. The stock declined 1.07% to close at Rs190 on the NSE.
Noida-based Nucleus Software Exports is eyeing for two acquisitions over the next one year to strengthen its offering for the banking and financial services. The mid-size IT company said it is looking at acquiring companies with intellectual property in the financial services area, which will enable Nucleus to deal with loan origination and loan servicing applications. The stock settled 1.06% down at Rs74.70 on the NSE.
FMCG company Ruchi Soya Industries today signed an agreement with Japan’s Kagome and Mitsui to set up a joint venture (JV), RuchiKagome, to manufacture tomato products in India. Ruchi Soya will have 40% stake in the JV and the rest will be held by a special purpose company (SPC) created by Kagome and Mitsui. Kagome and Mitsui own 66.7% and 33.3% stakes respectively in the SPC. Ruchi Soya declined 1.01% to close at Rs68.80 on the NSE.