Nifty has to hold above the previous day’s low for further gains to accrue. It seems to be stalling at around 5,120
The market, which was choppy throughout the session, closed flat on pressures from the auto sector and nervousness ahead of the release of inflation data for May. Yesterday we had mentioned that if the Nifty manages to close above 5,140 we may still see the upward trend continuing. Today the index managed to cross this level and end in the positive. The benchmark now should manage to make a higher low to keep the upmove intact. However, we see the upmove to be stalling at around 5,120. The National Stock Exchange (NSE) saw a volume of 60.55 crore shares.
The market opened flat with a positive bias as investors remained on the sidelines after yesterday's 1% upmove on speculations that the Reserve Bank of India (RBI) would cut key rates following dismal IIP numbers for April. On the global front, markets in the US closed higher overnight as reports suggested the central banks would draw up a stimulus package for slowing economies. Taking cues from their US counterparts, the Asian pack was in the positive in morning trade, but Spanish bonds hitting record highs capped the gains.
Back home, the Nifty gained two points to open trade at 5,118 and the Sensex resumed trade at 16,866, up three points over its previous close. Profit taking soon led the indices into the negative but select buying pushed them into the green at around 10.20am.
Meanwhile, the rupee failed to maintain initial gains against the dollar and was down 10 paise at 55.90 on fresh demand for the greenbacks from banks and its firming in the overseas market. Earlier, the Indian unit had resumed higher at 55.75 per dollar as against its previous close of 55.80.
The gains wee short-lived as selling pressure once again led the market lower. The benchmarks touched their intraday lows in the late morning session with the Nifty falling to 5,095 and the Sensex going back to 16,793.
The auto sector was the worst sectoral performer today following reports that the Centre is considering additional levies on diesel cars. In a letter to the finance minister, petroleum minister S Jaipal Reddy, has mooted that an excise duty of Rs1,70,000 be imposed on small cars and Rs2,55,000 on medium and larger diesel-run vehicles.
The positive opening of the key European markets gave the domestic indices a much-needed boost, pushing them into the positive in noon trade. The gains enabled the benchmarks hit their day's high with the Nifty 5,145 and the Sensex rising to 16,944.
However, volatility, which was evident from the beginning of today's trade, saw the indices hovering near their previous close quite a few times near the close of trade.
The benchmarks reported a flat close on nervousness ahead of the release of inflation data for May. The Nifty closed six points up at 5,121 and the Sensex settled at 16,881, a gain of 18 points over its previous close.
The advance-decline ratio on the NSE was tilted towards the losers at 678:717.
The broader indices closed on a mixed note as the BSE Mid-cap index lost 0.21% and the BSE Small-cap index rose 0.13%.
The top sectoral gainers were BSE Capital Goods (up 1.58%); BSE Fast Moving Consumer Goods (up 1.06%); BSE Healthcare, BSE IT (up 0.45% each) and BSE PSU (up 0.25%). The key losers were BSE Realty, BSE Auto (down 1.47% each); BSE Consumer Durables (down 0.92%); BSE Power (down 0.81%) and BSE Metal (down 0.34%).
The Sensex was led by Hindustan Unilever (up 3.03%); ONGC (up 2.83%); Larsen & Toubro (up 2.60%); Sun Pharma (up 2.37%) and Jindal Steel (up 1.71%). The main losers were Maruti Suzuki (down 3.38%); NTPC (down 2.51%); Sterlite Industries (down 2.21%); Tata Motors (down 2.10%) and Tata Power (down 1.77%).
HUL (up 3.36%); Ambuja Cements (up3.15%); Sun Pharma, L&T (up 2.45% each) and ONGC (up 2.29%) were the top performers on the Nifty. The main laggards were Maruti Suzuki (down 3.31%); Sterlite Ind (down 2.87%); NTPC (down 2.32%); Tata Motors (down 2.31%) and Tata Power (down 2.08%).
Markets in Asia settled higher on the back of overnight gains in Europe and the US and a 5.7% rise in Japanese core machinery orders in April, beating analysts' expectations.
The Shanghai Composite surged 1.27%; the Hang Seng climbed 0.82%; the Jakarta Composite rose 0.20%; the KLSE Composite added 0.01%; the Nikkei 225 advanced 0.60%; the KOSPI Composite gained 0.25% and the Taiwan Weighted was up 0.24%. Bucking the trend, the Straits Times lost 0.36%.
At the time of writing, two of the three key European indices were in the red and the US stock futures were trading lower.
Back home, institutional investors-both foreign and domestic-were net sellers of stocks on Tuesday. While foreign institutional investors pulled out Rs56.60 crore, domestic institutional investors withdrew 54.21 crore from the equities segment.
Consolidated Construction Consortium has bagged an order worth Rs124.17 crore from IL&FS Urban Infrastructure for design and construction of a greenfield stadium at Karyavattom in Kerala for the National Games to be held in the state. The contract is scheduled to be completed within 21 months. The stock jumped 4.98% to close at Rs13.70 on the NSE.
Ashok Leyland plans to mop-up around Rs750 crore to finance the capital requirements of the company. The funds would be raised through a qualified institutional placement to eligible buyers. The stock closed at Rs27.20 on the NSE, up 0.37% over its previous close.
Tata Communications has launched a low latency network which is expected to connect major financial capitals in Asia, the UK and the US. The company said that its network is the first low latency service that offers a pure multipoint Ethernet platform to the financial services sector. The stock lost 0.40% to close at Rs221.65 on the NSE.
A review of how the portfolio has performed by Jason Monteiro and the new suggested portfolio
Last year (Moneylife, 17 November 2011), we did a study of the top holdings of the best performing mutual fund schemes; we selected 10 stocks from among those, based on their fundamentals, future prospects and management quality. This was not an ideal portfolio suggested by Moneylife but...
A decisive break of the low of any previous day will signal a possible reversal
Hopes of a cut in key interest rates by the Reserve Bank of India (RBI) following dismal industrial output numbers for April pushed the market higher. The six days of positive move on the Nifty, which happened since 4 June 2012 has retraced nearly 62% of the fall that happened between 20 April 2012 and 4 June 2012. Yesterday we had mentioned that the market may try to rally after a minor dip. Today the Nifty fell to the level of 5,015 and went to hit a 27-day high of 5,129 (after 4 May 2012). If the benchmark manages to close above 5,140 we may still see the upward trend continuing, however, watch out for previous day’s low. The National Stock Exchange (NSE) saw a volume of 62.04 crore shares
The market opened lower ahead of the release of industrial output numbers for April and on concerns that the release of financial aid to Spanish banks would not be the end of Europe’s debt problems. Markets in Asia were weak in morning trade as investors became increasingly worried about the unending problems in Europe. Back home, the Nifty opened 38 points lower at 5,016 and the Sensex resumed trade at 16,571, a cut of 97 points from its previous close.
The benchmarks fell to their intraday lows in initial trade itself with the Nifty at 5,015 and the Sensex going back to 16,553.
Meanwhile, the rupee lost 11 paise to Rs55.85 against the dollar in early trade following dollar gains against other currencies overseas amid a weak trend in the equity market. The Indian unit had closed at 55.74 against the greenback in the previous session as dollar demand from banks and corporates emerged at fag-end after S&P warned that it could lower India's sovereign rating.
Although the Index of Industrial Production (IIP) for April came in at a meagre 0.1%, buying interest on hopes that the Reserve Bank of India (RBI) would cut interest rates in its mid-quarter review next week pushed the indices in the positive in late morning trade.
The market extended its gains in subsequent trade on support from banking, auto, oil & gas, metals and capital goods sectors. A positive opening of the key European markets also boosted investor confidence.
Across-the-board buying by institutional investors in late trade helped the benchmarks continue their northward journey. The market hit its intraday high in the last half hour. At this point the Nifty rose to 5,129 and the Sensex scaled 16,897.
The market closed marginally off the highs. The Nifty gained 62 points at 5,116 and the Sensex finished the session at 16,863, up 195 points over its previous close.
The advance-decline ratio on the NSE was positive at 871:779.
While the broader markets also closed higher, they underperformed the Sensex. The BSE Mid-cap index gained 0.62% and the BSE Small-cap index rose 0.28%.
Barring the BSE Healthcare index (down 0.40%), all other sectoral gauged settled in the green. They were led by BSE Realty (up 2.01%); BSE Bankex (up 1.90%); BSE Capital Goods (up 1.84%); BSE Auto (up 1.76%) and BSE Consumer Durables (up 1.52%).
The top Sensex gainers were Maruti Suzuki (up 3.48%); Tata Motors (up 3.14%); Larsen & Toubro (up 2.53%); Sterlite Industries (up 2.51%) and Hindalco Industries (up 2.16%). The losers were Dr Reddy’s Laboratories (down 1.81%); Wipro (down 1.71%); Hindustan Unilever (down 0.57%); Sun Pharma (down 0.20%) and Tata Power (down 0.10%).
Ambuja Cement (up 5.81%); Punjab National Bank (up 4.06%); ACC (up 3.18%); Tata Motors (up 3.14%) and DLF (up 3.03%) were the top performers on the Nifty. The main lowers on the index were Wipro (down 1.84%); Dr Reddy’s Laboratories (down 1.74%); Ranbaxy Laboratories (down 1.13%); HUL (down 0.95%) and Jaiprakash Associates (up 0.51%).
Markets across Asia closed lower as investors expressed doubts that the bailout package to Spanish banks would not ease the problems plaguing the Eurozone nations. Investors will now turn their focus on fresh elections in Greece, slated to take place on 17th June and Italian problems.
The Shanghai Composite dipped 0.70%; the Hang Seng fell 0.43%; the Jakarta Composite slipped by 0.35%; the KLSE Composite lost 0.15%; the Nikkei 225 dropped 1.02%; the KOSPI Composite fell by 0.66% and the Taiwan Weighted settled 0.68% lower. Bucking the trend, the Straits Times gained 0.33%.
At the time of writing, the key European markets were trading with gains of nearly half a percent and US stock futures were trading higher.
Back home, foreign institutional investors were net buyers of shares totalling Rs130.38 crore on Monday while domestic institutional investors were net sellers of equities aggregating Rs214.66 crore.
Pharma major Venus Remedies today said it has received patent from the US Patent Office for new antibiotic product which targets drug resistant infections. The product, CSE 1034, has been found to be effective against a wide range of drug-resistant infections, including the ‘superbugs,’ the company said in a statement. The stock jumped 4.82% to close at Rs175.05 on the NSE.
Pennar Engineered Building Systems (PEBS), a subsidiary of Pennar Industries, has received two orders. The first is from Tata Steel Group Company in Hyderabad and second from Jayabheri Orange County. Pennar Industries closed at Rs28.40 on the NSE, up 4.60% over its previous close.
Nava Bharat Ventures has commenced work on its 2x150 MW (300 MW) power plant in Zambia. It is also taking up production of coal at the Maamba Collieries. The company plans to invest up to $750 million in the thermal power plant and coal mining activity. The stock gained 0.68% to close at Rs177 on the NSE.