Share prices to move in a range: Friday Closing Report

Nifty to trade between 4,830 and 4,915

Optimism in the global arena following successful bond auctions in Spain and Italy eased some concerns in Europe and helped most Asian markets see gains. The Indian market also cheered the outcome, but pared some of its gains in late trade. Since the past four days (including today) the Nifty almost reached its second level of resistance, however, it was not able to maintain itself above that level. Today the index rose on a huge volume of 83.27 crore shares on the National Stock Exchange (NSE). From here we may see the benchmark making a range-bound move between 4,830 and 4,915.

Supportive cues from the global area helped the domestic market open higher today. Markets in Asia were mostly in the positive following the European Central Bank’s decision on Thursday to keep interest rates unchanged and good response to the Spanish and Italian bond auctions. Back home, the Nifty gained 31 points to resume trade at 4,862 and the Sensex opened at 16,145, up 107 points over its previous close. Across-the-board buying by institutional investors supported early gains.

A minor bout of profit taking in late-morning trade saw the indices dip to their intraday lows. At the lows, the Nifty fell to 4,834 and the Sensex went back to 16,050. But select buying pushed the market higher in subsequent trade.

Buying interest in metal, capital goods and realty sectors and a positive opening of the European indices enabled the market hit its intraday high around 1.50pm. At the highs, the Nifty touched 4,899 and the Sensex scaled 16,257.

The market pared some of its gains in post-noon trade but ensured a green close. At the end of trade, the Nifty settled 35 points higher at 4,866 and the Sensex gained 117 points to 16,155.

The advance-decline ratio on the NSE was 1248:586.

The broader indices outperformed the Sensex today as the BSE Mid-cap index climbed 1.14% and the BSE Small-cap index surged 1.44%.

The key gainers in the sectoral space were BSE Metal (up 3.21%); BSE Capital Goods (up 2.86%); BSE Power (up 2.39%); BSE Realty (up 2.12%) and BSE PSU (up 1.55%). BSE Consumer Durables (down 0.40%); BSE Oil & Gas (down 0.38%) and BSE IT (down 0.04%) settled lower.

Tata Steel (up 7.11%); Coal India (up 5.56%); Larsen & Toubro (up 3.84%); NTPC (up 3.11%) and Jindal Steel (up 3.07%) topped the Sensex list. GAIL India (down 3.19%); Bajaj Auto (down 2.96%); Maruti Suzuki (down 1.79%); Hero MotoCorp (down 1.25%) and Sun Pharma (down 1.18%) were the main losers.

The Nifty was led by Reliance Power (up 7.22%); Tata Steel (up 6.97%); Reliance Communications (up 6.34%); Coal India (up 5.02%) and NTPC (up 3.51%). The main losers on the index were GAIL (down 3.27%); Bajaj Auto (down 3.09%); Maruti Suzuki (down 1.91%); HCL Technologies (down 1.79%) and Sun Pharma (down 1.73%).

Markets in Asia, with the exception of China and Taiwan and Malaysia, closed with gains on the last trading day of the week on optimism from Europe after a positive response to the government bond auctions in Spain and Italy on Thursday.

The Hang Seng rose 0.57%; the Jakarta Composite advanced 0.66%; the Nikkei 225 surged 1.36%; the Straits Times jumped 1.75% and the Seoul Composite climbed 0.60%. Among the losers, the Shanghai Composite declined 1.34%; the KLSE Composite fell 0.16% and the Taiwan Weighted shed 0.07%. At the time of writing, the key European markets were trading with gains of 0.36% to 0.93% and US stock futures were trading higher.

Back home, foreign institutional investors were net buyers of shares totalling Rs506.80 crore on Thursday. On the other hand, domestic institutional investors were net sellers of equities aggregating Rs996.91 crore.

Wind turbine maker Suzlon Energy today said its German subsidiary REpower has signed a contract to supply 10 wind turbines to England-based RWEnpower Renewables for the Bradwell wind farm. The turbines, with an output of 2.05 MW each, will generate enough electricity to power the equivalent of nearly 12,000 homes annually, Suzlon said in a statement. The stock jumped 9.93% to close at Rs22.70 on the NSE.

Glenmark Pharmaceuticals today said an arbitration panel in the US has granted an interim order prohibiting Napo Pharmaceuticals from terminating their collaboration agreement for diarrhoea drug Crofelemer till the panel decides the arbitration. Glenmark gained 3.26% to close at Rs314 on the NSE.

Diamond Power Infrastructure, an integrated player in the power equipment and EPC segment, on Friday said that it has received orders totalling Rs48.30 crore for supply of 108 power transformers to diverse customers. The stock advanced 5.12% to settle at Rs110.90 on the NSE.


Share prices move sideways but the bias is beginning to be negative: Thursday Closing Report

Nifty may now move in the range of 4,830 and 4,910

Subdued revenue forecast from Infosys and lower-than-expected numbers from HDFC dragged the market lower, brushing aside positive economic indicators.  As mentioned yesterday, the Nifty gave back some of the gains today. The index bounced back from its first level of support of 4,810: however, it ended in the negative. The benchmark may now move in the range of 4,830 and 4,910. At present the index is moving sideways with a negative bias. Today the National Stock Exchange (NSE) saw a volume of 71.44 crore shares.  
The market opened lower, ahead of a heavy day marked by quarterly numbers from IT bellwether Infosys, industrial output numbers for November and weekly food inflation data. A weak trend in the Asian region following a flat close of Wall Street overnight also weighed on the sentiment. The Nifty opened 20 points down at 4,841 and the Sensex started the day at 16,117, a cut of 59 points over its previous close.

While Infosys reported a net profit growth 33.25% at Rs2,372 crore, its disappointing dollar revenue guidance pulled the stock down 7% in morning trade. IT and technology sectors were the worst performers in today’s trade.

The market traded sideways in the negative till the late morning session after which a rebound in industrial output numbers for November pushed the indices to their day’s high with the Nifty entering the positive zone. At the intraday high, the Nifty touched 4,869 and the Sensex rose to 16,179.

However, the gains were temporary as the indices drifted lower once again. The indices fell to their intraday lows in noon trade with the Nifty falling to 4,804 and the Sensex going below its psychological level of 16,000 to 15,963.

The market was range-bound in post-noon trade as the key European indices were flat, ahead of the Spanish bond auction. Lower-than-expected quarterly results from mortgage lender HDFC in the latter part of the day added to the day’s woes resulting in the market ending lower, snapping its two-day winning streak. At the close, the Nifty fell by 30 points to 4,831 and the Sensex declined 138 points to 16,038.

The advance-decline ratio on the NSE was 972:864.

Among the broader indices, the BSE Mid-cap index closed 0.26% higher and the BSE Small-cap index rose 0.15%.

BSE Power (up 1.32%); BSE Metal, BSE Bankex (up 1.08% each); BSE Auto (up 0.84%) and BSE PSU (up 0.70%) were the top sectoral gainers. On the losing side were BSE IT (down 5.96%); BSE TECk (down 4.41%); BSE Oil & Gas (down 0.81%) and BSE Capital Goods (down 0.22%).

The top Sensex gainers were State Bank of India (up 2.03%); Hindalco Industries (up 1.81%); Tata Power (up .72%); Coal India (up 1.66%) and Tata Steel (up 1.46%). The major losers were Infosys (down 8.40%); TCS (down 3.89%); Wipro (down 2.60%); Reliance Industries (down 1.44%) and Larsen & Toubro (down 1.25%).

Sesa Goa (up 4.94%); IDFC (up 3.56%); Jaiprakash Associates (up 3.25%); Grasim (up 3.18%) and Reliance Power (up 3.14%) were the top stocks on the Nifty. Infosys (down 8.36%); TCS (down 3.58%); HCL Technologies (down 2.24%); Wipro (down 2.16%) and Larsen & Toubro (down 1.75%) languished at the bottom of the index.

Markets in Asia settled mostly in the red as concerns about the Eurozone crisis kept investor on tenterhooks. Even the easing of Chinese inflation to 401% in December, the lowest in 15 months, failed to provide any boost to the markets. Slowing of export orders pulled down the Nikkei 225.

The Shanghai Composite fell 0.47%; the Hang Seng lost 0.30%; the Jakarta Composite settled flat; the Nikkei 225 declined 0.745; the Straits Times shed 0.13% and the Taiwan Weighted was 0.02% down. Bucking the trend, the KLSE Composite gained 0.21% and the Seoul Composite surged 1.03%. At the time of writing, the top European indices were trading with gains and the US stock futures were seen higher.

Back home, foreign institutional investors were net buyers of stocks totalling Rs431.31 crore on Wednesday. On the other hand, domestic institutional investors were net sellers of equities amounting to Rs182.18 crore.

Fortis Healthcare (India) today said it has completed the acquisition of Singapore-based Fortis Healthcare International Pte from a firm owned by its promoters, the Singh brothers. The company had in September 2011 announced that it will acquire Fortis Healthcare International Pte from RHC Financial Services Mauritius for $665 million (around Rs3,270 crore). Fortis Healthcare India closed at Rs98 on the NSE, up 0.05%.

Info Edge, which runs job portal, today launched a common online application form ’The Common App’ on its education portal for admission in MBA and equivalent courses. Initial partners of for this application include Nirma University, TA Pai Management Institute, Loyola Institute of Business Administration and Xavier Institute of Management and Entrepreneurship. The stock declined 3.15% to close at Rs566.50 on the NSE.

Srei Infrastructure Finance has deferred its plan to raise around $1 billion for its proposed infra fund in the current fiscal due to dollar scarcity in the global markets, sources in the company said. The Kolkata-based infrastructure financing firm is now looking at raising the money in the first half of FY12-13 as it expects global situation to improve in the next fiscal. The stock gained 1.35% to close at Rs30 on the NSE.


Munjal Auto: Auto run

Munjal Auto is bucking the trend

We had written about Munjal Auto Industries Ltd, controlled by Munjals of the Hero group, in our Cover Story (issues dated 13 September 2007 and 7 April 2006) and had recommended a buy/accumulate for long-term gains. The share is now trading at around Rs178 and is attractive for long-term investors once again.

Munjal Auto manufactures spoke-rims for...

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