If Nifty does not break today’s low on Monday, it may move higher over the next 3-4 days
Late buying in IT and technology stocks amid volatile trade helped the market close in the positive terrain. If Nifty does not break today’s low on Monday, it may move higher over the next 3-4 days. The National Stock Exchange (NSE) recorded a volume of 71.13 crore shares and advance-decline ratio of 491:907.
The domestic market opened in the negative on continuing weakness in the rupee and on unsupportive global cues. US indices dropped over 2% in overnight trade following the Fed’s comments on Wednesday. Reflecting the sentiment, markets across Asia were also lower in morning trade today on concerns about the economic slowdown in China.
The Nifty opened 16 points lower at 5,640 and the Sensex started the day at 18,696, down 23 points. Selling in realty, metal, banking, capital goods and oil and gas sectors led the benchmarks to their lows in initial trade. The Nifty fell to 5,619 and the Sensex slipped to 18,615 at their respective lows.
However, the indices soon recovered from their lows on support from IT, technology, power and auto stocks. The gains saw the benchmarks emerging into the green in late morning trade.
The market hit its high in noon trade as the benchmarks extended their gains. At this point the Nifty rose to 5,686 and the Sensex rose to 18,821. But the indices soon pared their gains and returned to the negative on selling pressure in heavyweights in the post-noon session.
Late buying in IT and technology stocks helped the benchmarks settle higher, a day after the market plunged nearly 2%. The Nifty rose 12 points (0.21%) to 5,668 and the Sensex ended the session at 18,774, up 55 points (0.29%).
The broader indices underperformed the Sensex as they closed in the negative. The BSE Mid-cap index declined 1.28% and the BSE Small-cap index fell 0.38%.
The top sectoral gainers were BSE IT (up 1.43%); BSE TECk (up 1.11%); BSE Auto (up 0.34%); BSE Power (up 0.27% and BSE Oil & Gas (up 0.17%). The main losers were BSE Metal (down 1.45%); BSE Realty (down 1.02%); BSE Consumer Durables (down 0.41%); BSE Bankex (down 0.37%) and BSE Capital Goods (down 0.32%).
Out of the 30 stocks on the Sensex, 15 stocks settled higher. The top performers were ONGC (up 2.56%); Dr Reddy’s Laboratories (up 2.23%); Infosys (up 2.21%); NTPC (up 2.11%) and Maruti Suzuki (up 1.91%). The major losers were Jindal Steel & Power (down 8.06%); Hindalco Industries (down 4.20%); Sun Pharmaceutical Industries (down 1.85%); Sterlite Industries (up 0.98%) and Reliance Industries (up 0.66%).
The top two A Group gainers on the BSE were—Gujarat Mineral Development Corporation (up 6.17%) and Indian Hotels Company (up 4.87%).
The top two A Group losers on the BSE were—Future Retail (down 32.81%) and Karnataka Bank (down 15.50%).
The top two B Group gainers on the BSE were—Oscar Investments (up 20%) and Sarla Performance Fibers (up 19.96%).
The top two B Group losers on the BSE were—Future Retail (down 9.98) and Noida Medicare Centre (down 18.15%).
Of the 50 stocks on the Nifty, 25 ended in the in the green. The major gainers were IndusInd Bank (up 3.95%); Hindalco Ind (up 3.32%); ONGC (2.82%); Ranbaxy Laboratories (up 2.11%) and NMDC (up 1.88%). The key losers were JSPL (down 7.79%); Bank of Baroda (down 4.59%); Punjab National Bank (down 3.07%); Reliance Infrastructure (down 2.02%) and Sun Pharma (down 2%).
Markets in Asia, with the exception of the Japanese benchmark, closed in the red on account of the US Fed’s comments on Wednesday and Chinese growth concerns. However, a weak yen helped the Japanese market to close higher.
The Shanghai Composite declined 0.52%; the Hang Seng dropped 0.59%; the Jakarta Composite tanked 2.48%; the KLSE Composite fell 0.37%; the Straits Times slipped 0.28%; the Seoul Composite tanked 1.49% and the Taiwan Weighted settled 1.34% higher. Bucking the trend, the Nikkei 225 surged 1.66%.
At the time of writing, the main European markets were trading 0.46% to 1.05% higher and the US stock futures were in the green, indicating a positive opening for the US markets later in the day.
Back home, foreign institutional investors were net sellers of shares totalling Rs2,094.06 crore on Thursday whereas domestic institutional investors were net buyers of stocks amounting to Rs1,332.50 crore.
India’s largest sugar producer Bajaj Hindusthan (BHL) has put on block its entire holding in two group companies—Bajaj Energy Pvt Ltd (BEPL) and Bajaj Hindusthan (Singapore) Pte Ltd (BHSPL)—in order to consolidate its power business and avoid cross-holding from its sugar arm. The stock declined 4.70% to close at Rs14.20 on the NSE.
United Bank of India has decided to stop fresh lending to infrastructure, steel and iron, airlines and real estate and textile sectors. According to Archana Bhargava, chairperson and managing director of the PSU bank, non-performing assets in these sectors have been going up and the recovery has also been poor. The stock tumbled 6.95% to close at Rs46.20 on the NSE.