A small recovery is possible tomorrow but the trend is sideways to down
The market settled in the positive amid choppy trade on support from fast moving consumer goods, oil & gas and realty stocks and a optimism from the European bourses. As we mentioned in our Friday’s closing report, today the Nifty moved in a narrow range of 5,651 and 5,694. The market is still to find a direction and we continue to maintain that the market may probably take 2-3 trading days to form a clear picture. The National Stock Exchange (NSE) saw a lower volume of 55.76 crore shares and an advance decline ratio of 870:865.
The market opened near its previous closing levels on cautiousness ahead of the announcement of the headline inflation data for September and corporate earnings reports from Reliance Industries and Axis Bank. A subdued trend in the Asian pack also added to the local woes.
The Nifty opened two points down at 5,674 and the Sensex resumed trade at 18,691, 16 points above its previous close. The market stayed in the negative in the morning session on pressure from banking, consumer durables and capital goods sectors.
The Sensex touched its day’s low at around 10.50am while the Nifty fell to its low in noon trade. At the lows the Nifty fell to 5,651 and the Sensex dropped to 18,597.
Bargain hunting by investors at the lows helped the indices recover and emerge into the positive around 1.00pm. A green opening by the key European indices also supported the sentiment.
The buoyancy saw the benchmarks hitting their highs around 1.15pm wherein the Nifty went up to 5,694 and the Sensex climbed to 18,726. The market stayed in the green in the remainder of the trading session, however, nervousness capped the gains.
The Nifty closed 11 points up at 5,687 and the Sensex settled at 18,714, a gain of 38 points over its previous close.
Among the broader markets, the BSE Mid-cap index added 0.06% and the BSE Small-cap climbed 0.43%.
The gainers in the sectoral space were BSE Fast Moving Consumer Goods (up 0.75%); BSE Oil & Gas (up 0.53%); BSE Realty (up 0.52%); BSE Bankex (up 0.37%) and BSE Power (up 0.35%). The losers were led by BSE Consumer Durables (down 0.84%); BSE IT (down 0.76%); BSE TECk (down 0.49%); BSE Auto (down 0.30%) and BSE Capital Goods (down 0.24%).
Eighteen of the 30 stocks on the Sensex closed in the positive. The key gainers were Hindalco Industries (up 1.83%); BHEL (up 1.55%); Cipla (up 1.44%); Bharti Airtel (up 1.15%) and Tata Power (up 1.12%). The major losers were Maruti Suzuki (down 2.46%); Infosys (down 1.25%); Sterlite Industries (down 1.02%); Larsen & Toubro (down 0.88%) and Coal India (down 0.74%).
The top two A Group gainers on the BSE were—Syndicate Bank (up 4.47%) and Godrej Industries (up 3.83%).
The top two A Group losers on the BSE were—TTK Prestige (down 5.08%) and Maruti Suzuki (down 2.46%).
The top two B Group gainers on the BSE were—Somi Conveyor Beltings (up 19.72%) and Minaxi Textiles (up 18.57%).
The top two B Group losers on the BSE were—Paradip Overseas (down 19.97%) and Vinayak Polycon International (down 19.83%).
Out of the 50 stocks listed on the Nifty, 27 stocks settled in the positive. The top gainers were Siemens (up 1.91%); BHEL (up 1.77%); Hindalco Industries (up 1.74%); Cipla (up 1.62%) and Ranbaxy Laboratories (up 1.58%). The main losers were Maruti Suzuki (down 2.64%); Infosys (down 1.32%); Sesa Goa (down 1.29%); Jaiprakash Associates (down 1.19%) and Lupin (down 1%).
Markets in Asia reversed early losses but closed with minor gains on concerns about earnings and the global slowdown.
The Hang Seng added 0.06%; the Jakarta Composite rose 0.05%; the KLSE Composite rose 0.07%; the Nikkei 225 climbed 0.51% and the Straits Times closed 0.04% higher. On the other hand, the Shanghai Composite dropped 0.30%; the Seoul Composite declined 0.40% and the Taiwan Weighted fell 0.24%.
At the time of writing, the CAC 40 of France was 1.26% higher, DAX of Germany gained 0.72% and UK’s FTSE 100 rose 0.48%. Simultaneously, the US stocks futures were trading in the positive, indicating a positive opening of US stocks.
Back home, institutional investors—both foreign and domestic—were net buyers in the equities segment on Friday. While foreign institutional investors pooled funds worth Rs201.16 crore, domestic institutional investors pumped in Rs188.28 crore in stocks.
ITeS major Mahindra Satyam today signed a memorandum of understanding (MoU) with the Dehradun-based University of Petroleum & Energy Studies (UPES) to facilitate joint research and development projects and consultancies in the oil and gas industry.
Under the agreement, the engineering students of UPES will gain industrial exposure and acquire practical competencies through training from Mahindra Satyam’s experts. Satyam Computer declined 2.36% to close at Rs107.55 on the NSE.
Engineering and construction firm Unity Infraprojects on Monday said it has received orders worth Rs 315.8 crore. It has received a Rs197.8 crore order from the Bihar Agriculture University and another worth Rs 118 crore for composite work for construction of data centre complex at Bengaluru. The stock gained 0.73% to close at Rs48.05 on the NSE.
Micro Technologies (India), developer and marketer of security devices and solutions has, bagged an order from its Israel distributor to provide its Micro Trolley Management System (Micro TMS) for swifter and safer trolley movements and baggage clearances for Maior International Airports. The stock declined 1.51% to settle at Rs39.25 on the NSE.
Some lenders are publishing photos of home loan defaulters, that too when the home is mortgaged with them and the borrower is reported to credit bureaus which ensures that he or she would not get funding from any legal sources
Reliance Industries said weakness in global economies and resultant margin environment resulted in its second quarter net profit declining 5.7% even as its revenues increased by 15.4% to Rs93,265 crore