Stocks
Sensex, Nifty precariously poised: Wednesday Closing Report

If the Nifty breaks the level of 5,775, it may head sharply down

The market closed near the lows of the day on concerns that quarterly earnings from corporates would come in below expectations. If the Nifty breaks the level of 5,775, it may head sharply down. The National Stock Exchange (NSE) recorded a volume of 51.42 crore shares and advance-decline ratio of 577:740.

 

The Indian market opened in the positive on supportive global cues. Most markets in Asia were higher in morning trade, but weak trade data from China capped the gains. The US markets closed in the green on Tuesday in anticipation of better earnings reports from corporates.

 

The Nifty opened 11 points up at 5,870 and the Sensex started the day at 19,483, a gain of 44 points over its previous close.  Buying in consumer durables, realty, banking and power sectors soon lifted the indices to their day’s highs. The Nifty touched 5,879 and the Sensex rose to 19,506 at their respective highs.

 

Meanwhile, the International Monetary Fund (IMF) on Tuesday marginally scaled down India's growth rate projections to 5.6% for the current fiscal and 6.3% for the next financial year. This was slightly lower by 0.2% and 0.1%, respectively, than the previous forecast released by the IMF in its report in April.

 

Profit taking in metal, auto, refinery and realty sectors amid choppy trade saw the indices paring their gains and remaining range-bound near their previous closing levels in morning trade.

 

Sporadic buying saw the indices emerge in the positive terrain in noon trade. However, the gains were short-lived as the market slipped into the red in the post-noon session on pressure from oil & gas and auto stocks and concerns about first quarter earnings from corporates.

 

The benchmarks touched their lows at around 2.30pm with the Nifty falling to 5,803 and the Sensex slipping to 19,238. The market settled near the lows as the key European indices pared opening gains and selling in oil & gas, realty and auto sectors.

 

The Nifty settled 42 points (0.72%) lower at 5,817 and the Sensex ended at 19,294, down 145 points (0.75%).

 

The broader indices also settled lower today, as the BSE Mid-cap index declined 0.40% and the BSE Small-cap index slipped 0.04%.

 

BSE Consumer Durables (up 1.95%); BSE IT (up 0.66%); BSE TECk (up 0.27%) and BSE Healthcare (up 0.11%) were the sectoral gainers today. The top losers were BSE Oil & Gas (down 1.82%); BSE Auto (down 1.50%); BSE Realty (down 1.32%); BSE PSU (down 1.02%) and BSE Capital Goods (down 0.98%).

 

Out of the 30 stocks on the Sensex, eight stocks settled higher. The gainers were Wipro (up 1.33%); Tata Power (up 0.88%); Jindal Steel & Power (up 0.74%); TCS (up 0.60%) and ICICI Bank (up 0.34%). The main losers were Mahindra & Mahindra (down 2.63%); Hindalco Industries (down 2.58%); Bajaj Auto (down 2.13%); Tata Steel (down 1.97%) and Reliance Industries (down 1.95%).

 

The top two A Group gainers on the BSE were—Emami (up 5.49%) and Wockhardt (up 5.12%).

The top two A Group losers on the BSE were— Strides Arcolab (down 8.09%) and GlaxoSmithKline Consumer Healthcare (down 5.19%).

 

The top two B Group gainers on the BSE were—Dolat Investments (up 20%) and Asian Hotels West (up 19.94%)

The top two B Group losers on the BSE were—Agro Dutch Industries (down 18.85%) and Sancia Global Projects (down 18.69%).

 

Of the 50 stocks on the Nifty, 13 ended in the in the green. The major gainers were Lupin (up 2.87%); HCL Technologies (up 2.28%); UltraTech Cement Co (up 1.64%); NMDC (up 1.26%) and Tata Power (up 1.23%. The key losers were Hindalco Ind (down 3.12%); BPCL (down 3.07%); Bank of Baroda (down 3.05%); M&M (down 2.79%) and Cairn India (down 2.46%).

 

Markets across Asia, with the exception of Japan and South Korea, closed higher on speculations that the Chinese government might announce some new measures to boost growth on the back of falling exports. Chinese exports fell 3.1% in June from a year earlier, the first decline since January 2012. Meanwhile, imports also were 0.7% lower, lower than expectations for an 8% gain.

 

The Shanghai Composite jumped 2.17%; the Hang Seng surged 1.07%; the Jakarta Composite climbed 1.70%; the KLSE Composite rose 0.13%; the Straits Times gained 0.30% and the Taiwan Weighted advanced 0.51%. Among the losers, the Nikkei 225 declined 0.39% and the Seoul Composite lost 0.34%.

 

At the time of writing, the key European markets were down between 0.27% and .56% and the US stock futures were marginally in the red ahead of the minutes of the release of the FOMC June meeting.

 

Back home, institutional investors—foreign as well as domestic—were net buyers in the equities segment on Tuesday. While FIIs bought shares totalling Rs165.61 crore, DIIs invested Rs37.83 crore.

 

The indefinite strike by employees of Neyveli Lignite Corporation (NLC) against the Centre's move to divest 5% of its stake in the PSU entered the eighth day today. About 30,000 workers, including 13,000 contract employees, are on the strike since July demanding that the government withdraw its decision to sell its stake as part of disinvestment process. The stock rose 0.17% to Rs58.65 on the NSE.

 

Sterlite Technologies has entered into a 50:50 joint venture agreement with Conduspar Condutores Eletricos Limitada (Conduspar), to build a greenfield facility in Curitiba in Parana state (Brazil) to produce optical fibre cables for the Latin American markets. The joint venture is expected to start commercial production by the first quarter of fiscal 2015. Sterlite Tech gained 4.29% to settle at Rs23.10 on the NSE.

 

Tide Water Oil Co (India), now the owner of global rights for the lube brand Veedol, has set up subsidiary in the Netherlands—Veedol International BV—to re-launch the branded products in Europe. Tide Water, which earlier only had the rights to the iconic brand for India, acquired Veedol International, UK, from BP Plc in October 2011 along with the brand rights, its logos and sub brands in 126 countries. The stock gained 0.92% to close at Rs7,220 on the NSE.

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Sensex, Nifty in a mildy bullish trend: Tuesday closing report

The Nifty has to close above 5,870 for the upmove to gain strength
 

On Monday the US market closed in the green after Alcoa, posted sales and profit yesterday that exceeded analysts’ forecasts. Taking cues from it almost all the Asian indices were up today. Back home the Sensex and Nifty opened in the positive. Sensex opened at 19,399 while the Nifty opened at 5,835. Yesterday, we had mentioned a close above 5,850 on the Nifty may bring some gains while a close below 5,760 may lead to a sharp decline. Nifty is still in a no man’s land. From here the Nifty has to close above 5,870 for the upmove to gain strength. The NSE saw a much lower volume of 52.20 crore shares today, showing indecisiveness among market players.
 
Through out the trading session both the benchmark traded in the green but in a narrow range. The intra day range on the Sensex was the lowest after 11 May 2013 while for Nifty was the lowest after 5 February 2013. Both the Sensex and the Nifty hit a higher high of 19486 and 5,865 respectively. Similarly the indices hit a higher low of 19,380 and 5,835. Both the benchmark covered most of the yesterday’s loss. Sensex closed at 19,439 (115 points up, 0.59%) while the Nifty closed at 5,859 (47 points up, 0.82%).
 
Among the broader indices, the BSE Mid-cap index rose 0.73% and the BSE Small-cap index rose 0.74%.
 
All the sectoral indices ended in the green. The top five gainers were BSE Consumer Durables (up 1.93%); BSE Power (up 1.86%); BSE Realty (up 1.65%); BSE Capital Goods (up 1.47%) and BSE Healthcare (up 1.44%).
 
Out of the 30 stocks on the Sensex, 22 stocks settled higher. The gainers were Sun Pharma (up 3.57%); BHEL (up 2.22%); Bajaj Auto (up 2.09%); Sterlite Industries (up 1.88%) and L&T (up 1.70%). The main losers were Jindal Steel (down 1.90%); Mahindra & Mahindra (down 1.18%); ONGC (down 0.79%); Hindustan Unilever (down 0.76%) and Maruti Suzuki (down 0.54%).
 
The top two A Group gainers on the BSE were—TTK Prestige (up 6.50%) and Karnataka Bank (up 6.24%).
 
The top two A Group losers on the BSE were— Strides Arcolab (down 5.80%) and Gitanjali Gems (down 4.97%).
 
The top two B Group gainers on the BSE were—Sancia Global (up 20%) and Everonn Education (up 19.97%).
 
The top two B Group losers on the BSE were—Satra Properties (down 19.84%) and Nimbus Inds (down 19.02%).
 
Of the 50 stocks on the Nifty, 39 ended in the in the green. The major gainers were Power Grid (up 4.37%); Kotak Bank (up 3.86%); Sun Pharma (up 3.30%); Reliance Infrastructure (up 2.92%) and IndusInd Bank (up 2.40%). The key losers were Jindal Steel (down 2.37%); Bharti Airtel (down 0.85%); Hindustan Unilever (down 0.83%); Mahindra & Mahindra (down 0.81%) and ONGC (down 0.61%).
 
European indices were trading in green after euro-zone finance ministers agreed on an aid disbursement for Greece. In Europe, Greece secured a lifeline from the euro zone and the International Monetary Fund (IMF) on Monday but was told it must keep its promises on cutting public sector jobs and selling state assets to get all the cash. The 6.8 billion euro deal, which spares Greece defaulting on debt in August, will see Athens drip-fed support under close watch from the euro zone and the IMF to ensure implementation of unpopular reforms.
 
In Asia, China's inflation accelerated more than estimated in June as food prices climbed, while the decline in factory-gate prices extended its longest streak in a decade amid slowing economic growth and lower commodity costs. The consumer price index rose 2.7% from a year earlier, the National Bureau of Statistics said today in Beijing. Most of the Asian indices closed in the green. Nikkei 225 was the top most gainer (up 2.58%) while Jakarta Composite, only loser, lost the most (fell 0.67%). US Futures were trading higher, indicating a positive opening. 
 
With reference to the news item appearing in a news channel regarding the Clariant Chemicals being in process to sell its land property in Thane for around Rs. 1500-1600 crore, the company has clarified that it has neither initiated any process nor taken any decision to sell its land in Thane. The stock rose 19.66% to close at Rs466 on the NSE.
 

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