Stocks
Sensex, Nifty may head further lower over the next few days: Thursday Closing Report
The Nifty opened at the support we suggested yesterday at 6,050 and moved down sharply. Unless it closes above any previous day’s high, the index will head lower
 
The market closed near its lows on weak results from State Bank of India and dismal global cues. The Nifty opened at the support we suggested yesterday at 6,050 and moved down sharply. Unless it closes above any previous day’s high, the index will head lower. The National Stock Exchange (NSE) reported a volume of 67.54 crore shares and advance-decline ratio of 235:1164.
 
The domestic market opened lower on weak global cues. HSBC's latest China's flash PMI which slipped below the level of 50 that separates expansion from contraction for the first time in seven months saw Asian markets, with the exception of China, in the red in morning trade. US markets settled lower on Wednesday after some Federal Reserve officials favoured reducing the asset purchase programme soon, as the economy was showing signs of recovery.
 
The global decline had an impact on Indian equities as well as the Nifty opened 45 points lower at 6,050 and the Sensex began the day at 19,971, a decline of 91 points from its previous close. The benchmarks hit their day’s high in initial trade itself, albeit in the negative. The Nifty rose to 6,081 and the Sensex inched higher to 20,028.
 
However, weak global cues and selling in capital goods, realty, power and banking stocks saw the indices taking a southward journey.
 
Meanwhile, the rupee declined by a huge 37 paise to trade at a new six-month low of 55.83 in early trade at the Interbank Foreign Exchange market on higher dollar demand and strengthening of the US currency overseas.
 
The market continued its downward move on pressure from capital goods, realty, consumer durables and power sectors. A weak opening of the key European markets ahead of the release of the flash purchase managers’ index data and the Japanese benchmark—Nikkei 225—tumbling over 7% today, also weighed on domestic investors.
 
State Bank of India, the country’s largest public sector lender, reported an 18.5% decline in its net profit for the fourth quarter of the fiscal ended 31 March 2013 to Rs3,299 crore, due to lower interest income and higher provisions towards bad loans. Net interest income fell 4% to Rs 11,079 crore as against Rs11,591 crore in Q4FY12 and provisions during the quarter jumped 33% to Rs4,181 crore from Rs3,140 crore in Q4FY12, while sequentially it rose 57% to Rs2,668 crore.
 
The market continued its decline in the late session in the absence of any positive triggers. The indices touched their lows in the closing minutes of trade with the Nifty falling to 5,956 and the Sensex declining to 19,635.
 
The market settled near the lows of the day on lower-than-expected quarterly results from SB and weak global cues. The Nifty declined 127 points (2.09%) to 5,967 and the Sensex dropped 388 points (1.93%) to finish the trading session at 19,674.
 
In line with the rout in the market indices, the broader indices also witnessed a sharp decline. The BSE Mid-cap index dropped 1.99% and the BSE Small-cap index tanked 2.20%.
 
All sectoral gauges settled lower. The main losers were BSE Realty (down 5.95%); BSE Capital Goods (down 5.19%); BSE Power (down 3.96%); BSE Bankex (down 2.84%); BSE PSU (down 0.68%) and BSE Oil & Gas (down 2.65%). 
 
Out of the 30 stocks on the Sensex, only two settled higher. The gainers were HDFC (up 0.53%) and Sun Pharmaceutical Industries (up 46%). The key losers were SBI (down 7.96%); Larsen & Toubro (down 6.49%); Jindal Steel & Power (down 4.05%); Reliance Industries (down 3.99%) and NTPC (down 3.88%).
 
The top two A Group gainers on the BSE were—Oracle Financial Services Software (up 8.92%) and Marico (up 1.95%).
The top two A Group losers on the BSE were—Wockhardt (down 20%) and Unitech (down 10.95%).
 
The top two B Group gainers on the BSE were—Richa Industries (up 19.80%) and Eskay Knit India (down 17.19%).
The top two B Group losers on the BSE were—Brescon Advisors & Holdings (down 19.74%) and KBS India (down 19.73%).
 
Of the 50 stocks on the Nifty, six ended in the in the green. The main gainers were Tata Motors (up .84%); Sun Pharma (up 46%); HDFC (up 0.24%); Cipla (up 0.17%) and Hindustan Unilever (up 0.02%). The major losers were Reliance Infrastructure (down 9.96%); Jaiprakash Associates (down 8.24%); SBI (down 8.10%); DLF (down 7.26%) and Ranbaxy Laboratories (down 6.97%).
 
Markets in Asia settled lower with the Nikkei 225 crashing over 7% on weak flash Chinese manufacturing output data, concerns about the tapering of the quantitative easing by the US Federal Reserve and strengthening of the yen. 
 
The Shanghai Composite declined 1.16%; the Hang Seng tumbled 2.54%; the Jakarta Composite tanked 1.66%; the KLSE Composite fell 0.61%; the Nikkei 225 plunged 7.32%; the Straits Times dropped 1.77%; the Seoul Composite contracted by 1.24% and the Taiwan Weighted settled 1.92% down.
 
At the time of writing, the key European indices were down between 1.98% and 2.73% and the US stock futures were trading in the red, indicating a lower opening for US stocks later in the day.
 
Back home, foreign institutional investors were net buyers of equities totalling Rs540.18 crore on Wednesday whereas domestic institutional investors were net sellers of stocks amounting to Rs973.14 crore.
 
Siyaram Silk Mills has signed as many as 27 franchise agreements during the first two months of the current fiscal, in its bid to expand its retail footprint. As per a press release issued by the company, Siyaram Silk Mills had set a target of signing 90 franchise deals during 2013-14. It is also targeting 500 outlets by 2016-17, against the existing 120. The stock fell 1.29% to close at Rs260 on the NSE.
 
McLeod Russel India, the world’s largest tea planter, said it has incorporated a trading outfit in Kenya to procure and supply African tea to the company’s Dubai blending unit. The Dubai blending unit is the second such facility for the company. McLeod Russel, the BM Khaitan group company, has a blending unit at Kolkata. The stock declined 4.25% to close at Rs300.85 on the NSE.
 
Glenmark Generics, a subsidiary of Glenmark Pharmaceuticals, is recalling multiple lots of three of its drugs from the US market due to “odd smell”, according to US Food and Drug Administration.A notification issued by the US Food and Drug Administration said that the drug major has initiated voluntary recall of its Gabapentin tablets 600mg, 500-count bottle and 800 mg, 500-count bottle; Pravastatin Sodium tablets 40 mg, 90-count bottle; and Topiramate tablets 200 mg, 60-count bottles from the US market following the identification of the problem. The stock rose 1.67% to close at Rs574.10 on the NSE.
 

 

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COMMENTS

Nilesh KAMERKAR

4 years ago

“Nobody can predict interest rates, the future direction of the economy, or the stock market. Dismiss all such forecasts and concentrate on what's actually happening to the companies in which you've invested”. – Peter Lynch

Sensex, Nifty may find short-term support: Wednesday Closing Report

A close above the day's high may bring some relief in the current downtrend. Support is around 6,050 in the Nifty
 

The market finished marginally down on selling pressure from capital goods, realty and oil & gas sectors, making the third consecutive close in the negative. A close above the day's high may bring some relief in the current downtrend. Support is around 6,050 in the Nifty. The National Stock Exchange (NSE) reported a volume of 56.33 crore shares and advance-decline ratio of 451:956.

 

The market opened in the positive tracking its Asian peers which were firm in morning trade on reports that the Bank of Japan will implement a bond-buying programme to help achieve a 2% inflation target. US indices closed at new highs overnight as comments from some Federal Reserve officials allayed fears of the closure of the central bank’s bond buying initiative.

 

The Nifty opened 13 points higher at 6,127 and the Sensex resumed trade at 20,151, a gain of 39 points over its previous close. Buying in IT, banking and metal stocks enabled the indices hit their day’s high in the first half hour itself. The Nifty touched 6,148 and the Sensex rose to 20,220 at their respective highs.

 

Profit booking amid choppy trade resulted in the benchmarks paring part of their early gains and head lower in subsequent trade. The indices were range-bound in the remaining part of the morning session.

 

The benchmarks entered the negative zone at around 2.00pm on selling pressure from capital goods, realty and oil &gas sectors. Negative opening of the key European markets ahead of US Fed chairman Ben Bernanke’s comments on the outlook for the US economy also weighed on domestic investors. The decline led the market to its low in post-noon trade. At this point the Nifty fell to 6,074 and the Sensex retracted back to 20,001.

 

Meanwhile Infrastructure conglomerate Larsen & Toubro today reported 6.90% decline in standalone net profit at Rs1,787.94 crore for the fourth quarter ended March, 2013, due to a sharp rise in interest outgo. The company had reported a net profit of Rs 1,920.41 crore for the corresponding quarter of 2011-12. Net sales of the company were up nearly 10% at Rs 20,293.83 crore during the quarter vis-a-vis Rs 18,460.90 crore of the Q4 of FY12.

 

The market managed to pull itself from the lows and close with a minor loss, but was down for the third straight day. The Nifty fell 20 points (0.32%) to 6,095 and the Sensex closed the session at 20,062, down 49 points (0.25%).

 

The broader indices underperformed the Sensex today, as the BSE Mid-cap index declined 0.83% and the BSE Small-cap index dropped 0.82%.

 

The sectoral gainers were BSE Fast Moving Consumer Goods (up 0.83%); BSE Healthcare (up 0.41%); BSE TECk (up 0.22%) and BSE IT (up 0.13%). The main losers were BSE Capital Goods (down 3.67%); BSE Realty (down 3.47%); BSE Oil & Gas (down 0.98%); BSE Power (down 0.69%) and BSE Metal (down 0.57%).

 

Out of the 30 stocks on the Sensex, 14 settled higher. The key gainers were Sun Pharmaceutical Industries (up 2.90%); Bharti Airtel (up 2.25%); Dr Reddy’s Laboratories (up 1.84%); NTPC (up 1.48%) and ITC (up 1.28%). The key losers were Larsen & Toubro (down 5.57%); Tata Power (down 2.16%); Hero MotoCorp (down 2.04%); GAIL India (down 1.34%) and Sterlite Industries (down 1.25%).

 

The top two A Group gainers on the BSE were—Berger Paints (up .34%) and Castrol India (up 3.80%).

The top two A Group losers on the BSE were—Adani Power (down 7.01%) and DLF (down 5.63%).

 

The top two B Group gainers on the BSE were—Kaveri Telecom Products (up .90%) and Best & Crompton (up 19.84%).

The top two B Group losers on the BSE were—Krypton Industries (down 18.82%) and Filatex Fashions (down 18.51%).

 

Of the 50 stocks on the Nifty, 20 ended in the in the green. The main gainers were Sun Pharma (up 2.88%); Bharti Airtel (up 2.48%); NTPC (up 1.97%); Dr Reddy’s (up 1.68%) and ITC (up 1.62%). The major losers were L&T (down 6.05%); DLF (down 5.92%); Jaiprakash Associates (down 4.23%); BPCL (down 3.32%) and Bank of Baroda (down 3.28%).

 

The Asian pack, with the exception of the Shanghai Composite and the Hang Seng, closed higher after the Bank of Japan asserted that it would continue to support the economy. The Chinese bench settled lower as the government proposed a ban on coal imports while the Hong Kong market was down as a storm shut the financial markets earlier this morning.

 

The Jakarta Composite gained 0.37%; the KLSE Composite rose 0.38%; the Nikkei 225 surged 1.60%; the Straits Times advanced 0.30%; the Seoul Composite climbed 0.64% and the Taiwan Weighted settled 0.19% higher. Among the losers, the Shanghai Composite lost 0.12% and the Hang Seng declined 0.45%.

 

At the time of writing, the main European indices were down between 0.11% and 0.19% while the US stock futures were marginally higher.  

 

Back home, foreign institutional investors were net buyers of stocks totalling Rs679.44 crore on Monday while domestic institutional investors were net sellers of equities amounting to Rs866.69 crore.

 

FMCG major Emami has received two international awards for packaging from Worldstar 2013. The awards saw participation from 33 countries with 316 entries at the Auspack PLUS 2013 in Sydney, Australia. The two awards received were for Himani Navratna Cool Talc in the health and beauty Category and Menthoplus Balmin the Pharmaceutical & Medical category. The stock surged 3.33% to close at Rs753.10 on the NSE.

 

JSW Ispat Steel’s board on 21st May has approved the company’s plan to buy Heidelberg Cement’s grinding unit in Maharashtra, at Dolvi in Raigad district of Maharashtra, adjacent to the company’s steel plant, for an unnamed sum. The acquisition is proposed by way of a ‘slump sale’ and would be subject to obtaining necessary approvals and completion of due diligence. JSW Ispat Steel declined 2.14% to close at Rs9.15 on the NSE.

 

Tata Teleservices has entered into a partnership with GMR Airports to offer Wi-Fi services at Delhi and the Hyderabad international airports. The agreement would enable passengers transiting through the Indira Gandhi International Airport Terminal 3 in Delhi and Rajiv Gandhi Hyderabad International Airport, Hyderabad, access free Wi-Fi services for a specified time. The stock dropped 8.91% to close at Rs9.20 on the NSE.

User

COMMENTS

Naresh Nayak

4 years ago

Pick up the last 10 years financials and apart from the usual sales and pat, watch for a rise in cash from operations in the cash flow statement, the cash return on investment of at least the past 3 years (>15% is excellent), the stock price graph, then if the management has no bad flakes on it, you could pick up a first small tranche. Their dividends if increasing are all the more better. The business model should be difficult to replicate and their strengths are difficult to replicate and they have built it over time. Other companies which have strong brands in tobacco and liquor in regional markets do really well. Then consumer goods companies like regional biscuit manufacturers with strong regional brands and expanding are good.

snehakamath

4 years ago

Most of the shares have gone up and it is becoming very difficult to pick up. If results are not as per expectation ( though good) are being punished badly recent examples of Infy ,Divis lab & L&T show that. Under these circumstances those shares which are giving constant returns to share holders and creating wealth and are media shy and hence are not observed by many investors are good bets.

REPLY

shanti Patel

In Reply to snehakamath 4 years ago

Sneha,

Are working for a stockbroker?

S.K.Patel
9892485457

Sensex, Nifty continue to remain under pressure: Tuesday Closing Report

Most likely for the next few days the rally will be met by selling unless the indices manage to close above any previous day’s high
 

The market settled lower for the second day in a row on selling in auto and banking stocks. Most likely for the next few days the rally will be met by selling unless the indices manage to close above any previous day’s high. The National Stock Exchange (NSE) registered a turnover of 55.74 crore shares and advance-decline of 498:909.

 

The Indian market started the day on a flat note in the absence of any global or domestic triggers. Markets in Asia were mixed in morning trade as investors waited for an announcement from the US Federal Reserve on the duration of its bond-buying programme. US markets settled marginally lower on Monday on profit taking which led to paring of early gains.

 

The Nifty opened five points lower at 6,152 and the Sensex started the day at 20,227, up three points over its previous close. Buying in IT, oil & gas, PSU and consumer durables stocks led the benchmarks higher in early trade. But the indices could not sustain the early gains and trended lower after about an hour of trade.

 

Meanwhile, Phaneesh Murthy, the once upon a time blue-eyed boy of the IT industry has been sacked by iGate Corp, after having to quit Infosys over a sexual harassment scandal. A statement by iGate innocuously says that Murthy was sacked for not disclosing his relationship with a subordinate. This follows investigation for sexual harassment against Murthy, one of the country's best IT marketers. Murthy's second sacking over the sexual harassment issue has stunned the industry. Ironically, when Phaneesh Murthy was thrown out of Infosys, he left with enormous anger and claimed that he was wrongfully targeted.

 

The market was range-bound in the negative terrain till the noon session weighed down by realty, auto, power, healthcare and capital goods stocks. But buying in select stocks enabled the market to emerge into the green in post-noon trade. The gains helped the market hit its intraday high around 2.00pm. The Nifty went up to 6,180 and the Sensex rose to 20,308.

 

However, intense volatility resulted in the market slipping into the red once again. Weak European markets and selling pressure in auto and banking stocks weighed down on the market.

 

The benchmarks touched their lows towards the end of the trading session with the Nifty going back to 6,102 and the Sensex falling to 20,073. The market closed near the lows and down for the second day in a row.

 

Among the broader indices, the BSE Mid-cap index declined 0.62% and the BSE Small-cap index fell 0.43%.

 

BSE IT (up 0.80%); BSE TECk (up 0.44%) and BSE Consumer Durables (up 0.01%) were the sectoral gainers today. The main losers were BSE Realty (down 2.59%); BSE Auto (down 1.75%); BSE Power (down 1.06%); BSE PSU (down 1%) and BSE Bankex (down 0.88%).

 

Out of the 30 stocks on the Sensex, nine settled higher. The key gainers were Coal India (up 2.11%); BHEL (up 1.83%); TCS (up 1.03%); Infosys (up 0.92%) and Sun Pharmaceutical Industries (up 0.78%). The key losers were NTPC (down 4.21%); Tata Motors (down 3.06%); Maruti Suzuki (down 2.49%); State Bank of India (down 2.16%) and Tata Steel (down 2.11%).

 

The top two A Group gainers on the BSE were—Adani Power (up 12.21%) and Emami (up 5.08%).

The top two A Group losers on the BSE were—Divi’s Laboratories (down 7.29%) and Bajaj Finance (down 5.58%).

 

The top two B Group gainers on the BSE were—Uniply Industries (up 20%) and Sita Shree Food Products (up 18.75%).

The top two B Group losers on the BSE were—Cords Cable Industries (down 19.44%) and Emmsons International (down 19.35%).

 

Of the 50 stocks on the Nifty, 14 ended in the in the green. The main gainers were Coal India (up 2.36%); BHEL (up 1.61%); TCS (up 1.40%); HCL Technologies (up 1.345) and Infosys (up 1.06%). The major losers were UltraTech Cement Company (down 4.87%); NTPC (down 4.42%); Jaiprakash Associates (down 3.94%); Grasim Industries (down 3.17%) and DLF (down 3.04%).

 

The Nifty settled 43 points (0.70%) lower at 6,114 and the Sensex declined 112 points (0.56%) to end the session at 20,112.

 

Markets across Asia closed mixed. The Hang Seng settled lower as the Goldman Sachs Group sold its $1.1 billion stake in Hong Kong listed ICBC. Investors await announcements from the Bank of Japan and US Fed at the end of their two-day meeting on Wednesday.

 

The Shanghai Composite rose 0.22%; the KLSE Composite gained 0.58%; the Nikkei 225 added 0.13% and the Taiwan Weighted settled 0.07% higher. Among the losers, the Hang Seng fell 0.54%; the Jakarta Composite declined 0.50%; the Straits Times shed 0.30% and the Seoul Composite lost 0.07%.

 

At the time of writing, the CAC 40 of France was down 0.385; the DAX of Germany fell 0.18% and UK’s FTSE 100 rose 0.17%. At the same time, the US stock futures were mixed with a negative bias.

 

Back home, inflows from foreign institutional investors were offset by withdrawals by domestic institutional investors on Monday. While FIIs pooled in Rs753.37 crore in the equities segment, DIIs took away Rs764.32 crore.

 

Amid reports of Reliance Infrastructure exiting big projects due to delay in regulatory clearances, the company said it is awaiting nod from government agencies to commence work on some stalled projects worth Rs20,000 crore. The stock declined 2.26% to close at Rs415 on the NSE.

 

The Directorate-General of Central Excise Intelligence has filed a case against Bhushan Steel for evasion of central excise duty of about Rs 24 crore.
 

Bhushan Steel is a manufacturer of hot and cold rolled galvanised products. Officials have been booked for fraudulent procurement of Cenvat credit on zinc ingots purchased from Hindustan Zinc, Haridwar. Bhushan Steel rose 0.05% to close at Rs464.55 on the NSE.

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