Southward journey may continue: Friday Closing Report

Next level for the Nifty may be at 4,785

The spectre of lower growth in the current fiscal and weak global cues pulled the market down for the second day in a row. We had mentioned in our yesterday’s closing report that if the Nifty falls below 4,915, it may go down to the level of 4,865. The index opened well below 4,915 and closed at 4,867. If the benchmark goes below 4,840 on Monday, we may see it reaching the level of 4,785. However, if Nifty manages to keep itself above today’s high, we may see some change in the trend. The National Stock Exchange (NSE) saw a volume of 56.30 crore shares.

Extending its losses for the second day in a row, the market opened in the red on concerns about the slowing growth and dismal global cues. Wall Street ended lower overnight as European Central Bank president Mario Draghi shot down expectations that the central bank would increase purchases of government bonds. Besides, Germany’s move to reject some proposals to enhance the Eurozone’s bailout fund added to investors’ woes. The development led the Asian markets lower in morning trade which impacted the Indian market. The Nifty opened 73 points lower at 4,871 and the Sensex declined 230 points to resume trade at 16,258.

Recovery attempts were shot down by sellers, keeping all sectoral gauges in the red. The market slipped to the day’s low in noon trade with the Nifty falling to 4,842 and the Sensex sinking to 16,142.

Finance minister Pranab Mukherjee today lowered the country’s GDP growth forecast for the current fiscal to 7.5% in view of lower macro-economic indicators and global issues.

Bargain hunting after the market touched its lows pushed the indices to their intraday highs around 2.25pm. At the highs, the Nifty rose to 4,918 and the Sensex touched 16,383. However, doubts about a deal to resolve the European crisis at today’s EU summit, pulled the market down once again, settling lower for the second day in a row. At the close, the Nifty declined 73 points to 4,871 and the Sensex ended at 16,213, down 275 points.

The advance-decline ratio on the NSE was a dismal 497:1167.

The broader indices outperformed the Sensex today as the BSE Mid-cap index and the BSE Small-cap index declined 0.86% and 0.89%, respectively.

All sectoral indices settled lower for the second day in a row. The top losers were BSE Capital Goods (down 2.58%); BSE Auto (down 2.26%); BSE Oil & Gas (down 2.04%); BSE Power (down 1.80%) and BSE Realty (down 1.31%).

The top Sensex gainers were Coal India (up 1.10%); Maruti Suzuki (up 1.08%); Hindalco Industries (up 1%); Jindal Steel (up 0.62%) and NTPC (up 0.39%). The key losers were Jaiprakash Associates (down 4.67%); Mahindra & Mahindra (down 3.62%); BHEL (3.45%); Bajaj Auto (down 3.36%) and Sterlite Industries (down 3.20%).

The top performers on the Nifty were Reliance Power (up 1.26%); Hindalco Ind (up 1.23%); Kotak Bank (up 1.22%); Dr Reddy’s (up 1.09%) and Jindal Steel (up 0.94%). The declining stocks were led by SAIL (down 5.65%); JP Associates (down 4.89%); Siemens (down 4.18%); M&M (down 3.80%) and Tata Power (down 3.777%).

Markets in Asia closed in the negative on fresh European concerns. Investors in Asia were worried as the developments Europe were slowing down growth across the world, particularly in the emerging economies.

The Shanghai Composite fell 0.62%; the Hang Seng tumbled 2.73%; the Jakarta Composite slipped 0.59%; the KLSE Composite declined 0.87%; the Nikkei 225 tanked 1.48%; the Straits Times contracted 1.24%; the Seoul Composite fell by 1.97% and the Taiwan Weighted settled 1.28% lower.

Back home, foreign institutional investors were net buyers of shares amounting to Rs25.72 crore while domestic institutional investors were net sellers of stocks totalling Rs197.51 crore on Thursday.

TNL International Pvt Ltd (IITL), a subsidiary of IL&FS Transportation Networks has signed an agreement with the Chongqing Expressway Group Co (CEG) and SASAC-Chongqing to acquire 49% of the equity interest in Chongqing Yuhe Expressway Co. IL&FS Transportation Networks fell 0.86% to close at Rs168 on the NSE.

Australia’s Foreign Investment Review Board (FIRB) has cleared state-run NMDC’s proposal to acquire 50% stake in Legacy Iron Ore. The Indian iron ore producer and exporter had earlier said it would invest $18.9 million in order to acquire a 50% interest in Legacy, a Perth-based iron ore explorer. The stock tumbled 3.15% to Rs176.85 on the NSE.

Geojit BNP Paribas Financial Services’ board has agreed to divest its entire stake in a joint venture (JV) company to BNP Paribas SA for Rs40.50 crore. The company agreed to sell the stake held by unit Geojit Financial Management Services in BNP Paribas Securities India, which is in the institutional broking business. The stock jumped 5.54% to close at Rs17.15 on the NSE.

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