Lower low and a close below 5,342 may see Nifty slip to the level of 5,250
The market, which was in the green in the first half of trade, surrendered its gains following the CAG report which estimated losses from allocation of coal blocks at Rs1.86 lakh crore. However, select buying in late trade ensured a green close. Yesterday we had mentioned that the market seems to be under pressure. We may now see the benchmarks moving sideways. However, if today low of 5,342 is broken and the Nifty settles below it, we may see the index slipping to the level of 5,250. The National Stock Exchange (NSE) saw a higher volume of 64.85 crore shares.
The market opened marginally higher despite supportive global cues following reports that German chancellor on Thursday announced her support to the European Central Bank’s move to find a solution to the debt crisis plaguing the continent. The development led the US markets higher overnight and a similar trend was seen in Asia in morning trade today.
The Nifty opened six points higher at 5,369 and the Sensex started the day at 17,701, a gain of 44 points over its previous close. Buying interest in auto, FMCG, consumer durables and IT stocks saw the benchmarks gaining momentum in subsequent trade.
The market continued to remain firm in noon trade on sustained buying which helped the benchmarks hit their intraday high. At this point the Nifty rose to 5,400 and the Sensex went up to 17,801.
The Comptroller and Auditor General of India (CAG) report tabled Parliament stated that private companies are likely to gain Rs1.86 lakh crore from coal blocks that were allocated to them on nomination basis instead of competitive bidding, which amounted to the loss to national exchequer.
The announcement resulted in the market paring all its gains and entering into the negative. The indices fell to their lows around 1.40pm wherein the Nifty went back to 5,342 and the Sensex dropped to 17,623.
While select buying helped the indices recover from the lows, the indices were seen hovering near their previous closing levels in late trade.
The market closed marginally higher on profit booking after the CAG report became public. The Nifty rose three points to 5,366 and the Sensex gained 34 points to settle at 17,691.
The advance-decline ratio on the NSE was in favour of the losers at 765:929.
Among the broader indices, the BSE Mid-cap index added 0.05% and the BSE Small-cap index settled 0.02% higher.
The sectoral gainers were BSE Fast Moving Consumer Goods (up 1.26%); BSE IT (up 1.15%); BSE TECk (up 0.89%); BSE Healthcare (up 0.67%) and BSE Auto (up 0.62%). The main losers were BSE Realty (down 1.71%); BSE Power (down 1.59%); BSE Metal (down 1.49%); BSE Capital Goods (down 0.85%) and BSE PSU (down 0.73%).
The top gainers on the Sensex were Tata Motors (up 2.12%); Infosys (up 1.61%); Hindustan Unilever (up 1.53%); ITC (up 1.43%) and Wipro (up 1.17%). The key losers were Jindal Steel (down 4.02%); Tata Steel (down 3.71%); Hindalco Industries (down 2.48%); GAIL India (down 1.72%) and Larsen & Toubro (down 1.48%).
The top two A Group gainers on the BSE were—Mangalore Refinery & Petrochemicals (up 5.40%) and Shriram Transport Finance (up 4.91%).
The top two A Group losers on the BSE were—Reliance Power (down 5.60%) and Jain Irrigation (down 4.43%).
The top two B Group gainers on the BSE were—Tribhovandas Bhimji Zaveri (up 19.96%) and Gujarat Metallic Coal (up 19.77%).
The top two B Group losers on the BSE were—GIVO (down 12.74%) and Jagson Airlines (down 12.09%).
Tata Motors (up 2.06%); HUL (up 1.75%); ITC (up 1.74%); Infosys (up 1.58%) and Wipro (up 1.36%) were the top performers on the Nifty. On the other hand, Jindal Steel (down 4.29%); Tata Power (down 3.85%); Reliance Infrastructure (down 3.22%); DLF (down 3.13%) and Hindalco Ind (down 2.78%) settled at the bottom of the index.
Markets in Asia settled mostly higher on assurances from German chancellor Angela Merkel to support the ECB’s initiative to find a solution to the ongoing European debt crisis. Meanwhile, in the mid-year growth forecasts, the Japanese government said it expects the economy to expand 1.7% in the fiscal year beginning in April 2013, from an anticipated increase of 2.2% in the current business year.
The Shanghai Composite rose 0.13%; the Hang Seng surged 0.77%; the Jakarta Composite gained 0.4% and the Nikkei 225 advanced 0.77%. Among the losers, the KLSE Composite shed 0.02%; the Straits Times fell 0.03%; the Seoul Composite dropped 0.58% and the Taiwan Weighted declined 0.30%.
At the time of writing, the key European markets were up in the range of 0.03% to 0.23% while the US stock futures were mostly lower, indications of a mixed opening of the US markets.
Back home, institutional investors—foreign as well as domestic—were net buyers of stocks on Thursday. While foreign institutional investors pumped in Rs95.01 crore, domestic investors pooled in Rs225.30 crore.
Amara Raja Batteries has drawn up a Rs14 crore expansion plan for enhancing the capacity of its four-wheeler battery manufacturing unit at Chittoor. This expansion, will take the battery capacity up from 5.6 million units to 6 million units a year. The stock settled at Rs387 on the NSE, up 1.43% from its previous close.
Cairn India has inked a farm-in agreement with PetroSA for exploring for crude oil and natural gas in the offshore Block 1 in the Orange Basin on the west coast of South Africa. The closure of the transaction is however subject to South African regulatory approvals. Located in the geologically proven Orange Basin along the north-western maritime border of South Africa with Namibia, the block is on trend with the discovered Kudu and Ibhubesi gas fields. Cairn India gained 0.12% to close at Rs334.55 on the NSE.
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In order to accelerate growth and deal with the impact of the global problems, the PMEAC suggested boosting investment in infrastructure sector, allow foreign airlines to pick up stake in domestic carriers and contain fiscal and current account deficit