Stocks
Short-term decline on BSE Sensex, Nifty stalls for now: Thursday Closing Report

Nifty may be range-bound between 6,000 and 6,060 unless either of these levels are broken


Positive signals from the government helped the market recover more than half of the losses incurred yesterday. We may see the short-term decline stalling for now. However, the Nifty may be range-bound between 6,000 and 6,060 unless either of these levels are broken. The National Stock Exchange (NSE) reported a volume of 68.92 crore shares and advance-decline ratio of 764:963.

 

The Asian indices had a mix opening today and so was it at home where the Sensex opened in the positive while Nifty opened marginally down. The Sensex opened at 19,846, 29 points up while the Nifty opened at 6,001, 0.60 points lower.

 

Soon the market hit its intraday low after which both the indices started an upward journey. The Sensex hit touched a low of 19,783 while the Nifty fell to a low of 5,988. Both the benchmarks went on to hit their intraday highs almost at the same level as yesterday. The Sensex hit a high of 20,006 while the Nifty went up to 6,053.

 

The day’s high was hit after the news that the state-run oil marketing companies can now raise diesel prices in line with increases in global crude oil prices. The rise in prices may happen in small quantities over a period of time. The government also hiked the cap on subsidised LPG cylinders from six to nine which will be effective from April.

 

However, according to finance minister P Chidambaram, the fuel subsidy bill for the current fiscal is expected to remain unchanged even after a government decision to allow state-run oil companies to set diesel prices.

 

The government on Thursday also approved a 50% reduction in the reserve price of spectrum used by CDMA mobile operators. The reserve price was fixed earlier at Rs18,200 crore. The spectrum auction for both GSM and CDMA will be completed by March 31 and markets will decide how much revenue the government will get.

 

Both the Sensex and the Nifty covered more than half of the losses incurred yesterday. The Sensex closed 146 points (0.74%) higher at 19,964 and the Nifty rose 37 points (0.62%) to 6,039.

 

The broader markets underperformed the Sensex today as the BSE Mid-cap index was up 0.25% while the BSE Small-cap index fell 0.03%.

 

Among the sectoral indices, the top gainers were BSE Oil & Gas (up 3.11%); BSE Realty (up 2.05%); BSE TECk (up 1.60%); BSE PSU (up 1.41%) and BSE IT (up 1.36%). The losers were BSE Capital Goods (down 0.62%) and BSE Healthcare (down 0.15%).

 

Nineteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were ONGC (up 3.66%); Reliance Industries (up 3.40%); Bharti Airtel (up 3.36%); Tata Motors (up 2.67%) and Wipro (up 2.63%). The main losers were Cipla (down 2.09%); ICICI Bank (down 1.39%); Bajaj Auto (down 1.14%); Hindalco Industries (down 0.93%) and Hero MotoCorp (down 0.92%).

 

The top two A Group gainers on the BSE were—Indian Oil Corporation (up 6.60%) and HPCL (up 6.06%).

The top two A Group losers on the BSE were—TTK Prestige (down 6.65%) and United Breweries (down 5.01%).

 

The top two B Group gainers on the BSE were—Sundaram Brake Linings (up 19.76%) and Vikas Globalone (up 19.15%).

The top two B Group losers on the BSE were—IOL Netcom (down 19.74%) and Damodar Threads (down 13.67%).

 

Out of the 50 stocks listed on the Nifty, 32 stocks settled in the positive. The major gainers were HCL Technologies (up 4.48%); BPCL (up 3.64%); DLF (up 3.40%); ONGC (up 3.21%) and RIL (up 3.09%). The key losers were Cipla (down 2.02%); Reliance Infrastructure (down 1.95%); ACC (down 1.77%); HDFC (down 1.62%) and Ranbaxy (down 1.61%).

 

Asian indices settled lower with the Taiwan Weighted emerging as the biggest loser (down 1.09%). Bucking the trend, the Nikkei 225 rose 0.09%. China unveils Q4 December 2012 gross domestic product (GDP) data tomorrow, 18 January 2013

 

At the time of writing, two of the three European indices were trading in the green while the US stock futures were mixed.

 

Back home, foreign institutional investors were net buyers of stocks totalling Rs1,029.50 crore on Wednesday while domestic institutional investors were net sellers of equities amounting to Rs691.75 crore,

 

HCL Technologies has entered into a long-term, global IT infrastructure management outsourcing services agreement with Nokia. The scope of this engagement includes datacenter, network management, end user computing services and cross-functional service management across Nokia's global IT infrastructure operations. HCL has been delivering global service desk and desktop management outsourcing services for Nokia since 2009. The stock rose 4.48% to close at Rs704 on the NSE.

 

Hatsun Agro has sought its board’s nod to withdraw its proposal to raise up to Rs50 crore through a rights issue. The board in June 2012 had approved issue of equity shares on rights basis to existing shareholders amounting to a maximum of Rs50 crore. Hatsun Agro fell 1.69% to close at Rs87.10 on the BSE.

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Wednesday Closing Report: Short rally comes to an end?

 We have been warning that the short rally which started on Monday was extremely risky. Today, the Nifty gave up a substantial part of the two-day gains. Now 5,950 will be make-or-break for the benchmark in the short-term

A bleak picture of the Indian economy painted by the World Bank and weak global cues caused the market to give up more than what it gained in the previous session. We have been warning that the short rally which started on Monday was extremely risky. Today, the Nifty gave up a substantial part of the two-day gains. Now, 5,950 will be make-or-break for the benchmark in the short-term. The National Stock Exchange (NSE) reported a volume of 75.85 crore shares and advance-decline ratio of 420:1352.

 

The market, which closed at near its two-year high on Tuesday, opened a tad lower tracking the Asian markets which were mostly lower in morning trade. Comments by the World Bank in its “Global Economic Prospects 2013” report, released on Tuesday, that the sharp slowdown in the Indian economy has weakened the growth rate of South Asia, also weighed on investor sentiments.

 

The Nifty opened trade down eight points at 6,049 and the Sensex started off at 19,978, a cut of nine points from its previous close. Choppiness was prevalent since the beginning of trade. But buying in select buying lifted the benchmarks to their intraday highs in the first hour. At the highs the Nifty touched 6,056 and the Sensex rose to 20,009.

 

However, the market could not sustain the gains and the indices ventured on a southward journey as investors indulged in profit booking in technology, auto and banking stocks.

 

A weak opening of the key European markets kept the domestic benchmarks in the negative in the second half of the trading session. The benchmarks drifted further down in post-noon trade as selling pressure increased.

 

The indices fell to their intraday lows in the last half hour with the Nifty going down to 5,992 and the Sensex dropping to 19,783.

 

A minor recovery in the dying minutes helped the market settle off the lows. The Nifty declined 55 points (0.90%) but managed to retain the 6,000 mark, settling at 6,002. The Sensex, closed 169 points (0.85%) down at 19,818.

 

The broader markets underperformed the Sensex today as the BSE Mid-cap index dropped 1.35% and the BSE Small-cap index declined 1.24%.

 

BSE Oil & Gas (up 0.43%) was the lone gainer in the sectoral space. The losers were led by BSE Auto (down 2.40%); BSE Metal (down 2.10%); BSE Bankex (down 1.66%); BSE Realty (down 1.37%) and BSE Capital Goods (down 1.17%).

 

Six of the 30 stocks on the Sensex closed in the positive. The chief gainers were Reliance Industries (up 1.72%); Dr Reddy’s Laboratories (up 1.43%); TCS (up 1.03%); NTPC (up 0.19%) and GAIL India (up 0.17%). The main losers were Hindalco Industries (down 4.38%); Maruti Suzuki (down 3.43%); Tata Motors (down 3.24%); Jindal Steel & Power (down 3.11%) and Mahindra & Mahindra (down 2.95%).

 

The top two A Group gainers on the BSE were—TTK Prestige (up 6.31%) and Oberoi Realty (up 5.12%).

The top two A Group losers on the BSE were—Reliance Communications (down 5.93%) and Pantaloon Retail (down 5.01%).

 

The top two B Group gainers on the BSE were—Comfort Intech (up 16.22%) and Prakash Constrowell (up 10%).

The top two B Group losers on the BSE were—IOL Netcom (down 17.21%) and Premier (down 13.43%).

 

The Asian pack closed mostly lower on profit booking after the recent gains and on dismal macro-economic indicators as China’s foreign direct investments fell in 2012 on slowing growth.

 

The Shanghai Composite declined 0.70%; the Hang Seng shed 0.10%; the KLSE Composite fell 0.17%; the Nikkei 225 tumbled 2.565; the Seoul Composite declined 0.32% and the Taiwan Weighted tanked 0.83%. Bucking the trend, the Jakarta Composite gained 0.23% and the Straits Times climbed 0.39%.

 

At the time of writing, the key European indices were trading with cuts of around 0.30% and the US stock futures were in the negative.

 

Back home, foreign institutional investors were net buyers of equities totalling Rs1,077.54 crore on Tuesday. On the other hand, domestic institutional investors were net sellers of stocks amounting to Rs755.84 crore.

 

Out of the 50 stocks listed on the Nifty, seven stocks settled in the positive. The major gainers were HCL Technologies (up 1.64%); RIL (up 1.52%); Dr Reddy’s (up 1.19%); Power Grid Corporation (up 1.04%) and TCS (up 0.56%). The key losers were Hindalco Ind (down 4.26%); Reliance Infrastructure (down 3.91%); Jaiprakash Associates (down 3.53%) and Jindal Steel & Power (down 3.19%).

 

Electrical goods maker Havells India today said it will double the production capacity of its Baddi plant in Himachal Pradesh to 10 lakh stock-keeping units (SKUs) per day in the next 6-9 months. The facility manufactures switches and domestic switchgear for Havells and Crabtree brands. Havells declined 0.62% to close at Rs685.60 on the NSE.

 

Videocon Mobile Services, part of the Videocon Industries group, will roll out next generation of products and services by adapting a highly spectrum-efficient 4G technology across the newly-acquired circles in the second half of 2013. The 4G technology is based on FDD LTE, which enables operators to gain more efficiency using the same spectrum resources. Videocon Ind dropped 2.47% to close at Rs217 on the NSE.

 

Competition Commission of India (CCI) has dismissed an appeal seeking anti-dominance sanctions against a new project of realty major DLF saying it will not entertain any such plea merely on the basis of penalties imposed on the company's Belaire housing project.

 

After finding DLF to have abused its dominant position with respect to its Belaire project at Gurgaon in national capital region, CCI had fined DLF in August 2011 and had asked it to “cease and desist” from anti-competitive practices. The realty major fell 1.98% to close at Rs247.95 on the NSE.

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BSE Sensex, Nifty in a continued risky uptrend: Tuesday Closing Report

Yesterday we mentioned that Nifty is headed for 6,080 but the market is vulnerable to a sharp decline

 

Upbeat quarterly performance by TCS and gains in realty, banking and FMCG stocks enabled the volatile market close higher for the second day in a row. However, the market is in a continued risky uptrend. Yesterday we mentioned that Nifty is headed for 6,080 but the market is vulnerable to a sharp decline. The National Stock Exchange (NSE) reported a volume of 69.76 crore shares and advance-decline ratio of 845:861.

 

The market opened firm on the back of better-than-expected quarterly earnings announced by IT major TCS after the market closed yesterday. On the global front, Asian markets were mixed in morning trade on concerns about the corporate earnings. Overnight markets in the US ended flat on reports that Apple Inc cut orders for parts for the iPhone5 due to weak demand.

 

Back home, the Nifty opened 14 points up at 6,308 and the Sensex started the day at 20,000, a gain of 94 points over its previous close. However, the benchmarks could not sustain the gains and were soon trending lower, albeit still in the positive. Range-bound trade followed amid strong volatility.

 

The market dipped into the red to touch their lows in noon trade on selling pressure in healthcare, PSU, power and oil & gas stocks. At this point the Nifty slipped to 6,019 and the Sensex dropped to 19,882.

 

The fall was temporary as the benchmarks picked up momentum once again on buying support from realty, fast moving consumer goods, banking and consumer durables sectors. The upmove the market to its intraday high in the last hour wherein the Nifty climbed to 6,069 and the Sensex surged to 20,037.

 

A small bout of profit taking towards the close of the trading session resulted in the market settling off the highs. The Nifty settled 33 points (0.54%) higher at 6,057 and the Sensex posted a gain of 80 points (0.40%) to finish the session at 19,987, off the 20,000 mark breached earlier.

 

While the Sensex continued its gains for the second day, the broader indices closed on a mixed note. The BSE Mid-cap index gained 0.27% and the BSE Small-cap index lost 0.06%.

 

The top sectoral gainers were BSE Realty (up 1.05%); BSE Bankex (up 0.72%); BSE Fast Moving Consumer Goods (up 0.59%); BSE TECk (up 0.58%) and BSE Consumer Durables (up 0.45%). BSE Metal (down 0.30%) and BSE IT (down 0.23%) ended lower.

 

Fifteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were Bharti Airtel (up 4.81%); ITC (up 1.98%); ICICI Bank (up 1.53%); Tata Power (up 1.51%) and Bajaj Auto (up 1.07%). The main losers were Coal India (down 1.54%); Sterlite Industries (down 1.31%); Jindal Steel (down 0.74%); Sun Pharmaceutical Industries (down 0.66%) and Infosys (down 0.62%).

 

The top two A Group gainers on the BSE were—Idea Cellular (up 8.27%) and Berger Paints (up 7.91%).

The top two A Group losers on the BSE were—Jaiprakash Power Ventures (down 4.82%) and United Breweries (down 3.93%).

 

The top two B Group gainers on the BSE were—Shalimar Paints (up 19.98%) and Beryl Drugs (up 16.67%).

The top two B Group losers on the BSE were—Ari Consolidated Investments (down 20.70%) and Vikas Globalone (down 18.70%).

 

Out of the 50 stocks listed on the Nifty, 29 stocks settled in the positive. The major gainers were Bharti Airtel (up 5.23%); Ambuja Cement (up 4.03%); BPCL (up 3.39%); Axis Bank (up 3.02%) and UltraTech Cement (up 2.88%). The main losers were Sesa Goa (down 1.70%); Coal India (down 1.21%); HCL Technologies (down 1.16%); Asian Paints (down 0.95%) and Reliance Infrastructure (down 0.81%).

 

Markets in Asia pared their early gains and settled mostly lower following a warning from US Federal Reserve chief Ben Bernanke about the fragility of the country’s economic growth and the possible default on its debt.

 

The Hang Seng declined 0.14%; the Jakarta Composite fell 0.10%; the KLSE Composite lost 0.03%; the Straits Times dropped 0.68%; the Seoul Composite tanked 1.16% and the Taiwan Weighted settled 0.75% lower. Among the gainers, the Shanghai Composite gained 0.60% and the Nikkei 225 climbed 0.72%.

 

At the time of writing, two of the three main markets in Europe were in the positive while the US stock futures were marginally lower.

 

Back home, foreign institutional investors were net buyers of shares totalling Rs611.10 crore on Monday whereas domestic institutional investors were net sellers of equities totalling Rs1,210.55 crore.

 

A consortium led by state-owned Rashtriya Chemicals and Fertilisers is in talks with Canada-based Encanto Potash for a long term supply agreement of 2 million tonnes per annum of potash. RCF said Encanto Potash Corp has offered a discount of 8% on ruling market rate of muriate of potash (MoP) to India during the preliminary talks held in December, 2012. RCF settled 0.72% lower at Rs54.90 on the NSE.

 

Essar Oil today returned to black with a net profit of Rs32 crore in the December quarter and said it had received the Reserve Bank of India (RBI) approval to raise $2.2 billion foreign currency loans to refinance expensive rupee debt. The stock fell 0.14% to close at Rs73.15 on the NSE.

 

CK Birla group company Hindustan Motors (HM) is open to talks with other auto-makers for utilising the surplus capacity at its Chennai plant which was de-merged recently, a top company official has said. While the Chennai facility has a capacity of

24,000 units per annum, the plant is currently nearly 2,000 units of SUVs, namely Pajero and Outlander. The stock rose 6.14% to close at Rs12.10 on the NSE.

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