The trend is still up: Monday Closing Report

Nifty to move in the range of 4,970 and 5,170

The government’s flip-flop over FDI in multi-brand retail led the market down, snapping its three-day winning streak. In our Friday’s closing report we had mentioned that the Nifty should maintain itself above the day’s high to reach to the level of 5,170, else it may fall to 4,900. Today, the index almost reached Friday’s high of 5,063 but couldn’t maintain the momentum. From here we may see the benchmark moving between 4,970 and 5,170. The National Stock Exchange (NSE) saw a volume of 49.78 crore shares being trade, the lowest in the last 18 days (including today). The upmove will be staggered and the market may reverse anytime.

The market opened lower this morning on speculations that the government has put the proposed 51% foreign direct investment (FDI) in multi-brand retail on hold. Profit booking was seen after the benchmarks logged 7% gains last week. The Nifty opened 13 points down at 5,037 and the Sensex resumed trade at 16,812, a loss of 35 points over its previous close.

Metal, banking, oil & gas and retail stocks witnessed selling pressure amid volatile trade, keeping the indices in the negative terrain. The announcement by finance minister Pranab Mukherjee to keep FDI in multi-brand retail on hold pushed the market to the day’s low in late morning trade with the Nifty falling to 5,003 and the Sensex going back to 16,691.

But buying in select stocks pushed the indices into the green in noon trade helping the market hit the day’s high. At the highs, the Nifty touched 5,055 and the Sensex rose to 16,863. However, the gains were short-lived as the market fell again.

Choppy trade continued till the end of the session, with the market settling in the red, ending its three-day winning streak. At close of trade, the Nifty fell by 11 points to 5,039 and the Sensex settled at 16,805, down 42 points.

The advance-decline ratio on the NSE was almost equal at 834:828.

The broader indices, too, settled flat, but with a mixed bias. The BSE Mid-cap index shed .05% while the BSE Small-cap index rose 0.09%.

The top sectoral gainers were BSE Power (up 0.86%); BSE Capital Goods (up 0.77%); BSE PSU (up 0.24%) while the noteworthy losers were BSE Metal (down0.90%); BSE Capital Goods (down 0.75%) and BSE Fast Moving Consumer Goods (down 0.67%).

The key Sensex gainers were NTPC (up 2.50%); Jaiprakash Associates (2.45%); BHEL (up 1.96%); State Bank of India (up 1.17%) and Hindalco Industries (up 0.70%). The laggards were led by Tata Steel (down 1.73%); Sun Pharma (down 1.53%); Sterlite Industries (down 1.46%); Hero MotoCorp and ITC (down 0.99%).

JP Associates (up 2.60%); Axis Bank (up 2.52%); NTPC (up 2%); BHEL (up 1.95%) and PNB (up 1.70%) were the top performers on the Nifty today. HCL Technologies (down 2.46%); SAIL (down 2.41%); Reliance Power (down 2.38%); Tata Steel (down 2.18%) and Sterlite Ind (down 1.55%) ended at the bottom of the index.

Markets in Asia settled mostly higher on hopes of a resolution to the Eurozone debt crisis as European leaders meet this week to chalk out a rescue plan. Besides, the Italian government clearing a 30 billion euro austerity plan supported investor sentiment. However, the Chinese market fell on a decline in the country’s services sector. The HSBC Purchase Managers’ Index fell to 52.5 in November from 54.1 in the previous month, indicating a further slowdown in the economy.

The Hang Seng surged 0.73%; the Jakarta Composite added 0.03%; the KLSE Composite gained 0.06%; the Nikkei 225 rose 0.60% and the Seoul Composite advanced 0.36%. On the other hand, the Shanghai Composite declined 1.16%; the Straits Times fell 0.26% and the Taiwan Weighted lost 0.60%.

Back home, foreign institutional investors were net buyers of stocks totalling Rs596.89 crore on Friday but domestic institutional investors ended up selling equities worth Rs107.53 crore.

Gitanjali Gems’ wholly-owned subsidiary Aston Luxury Group has acquired 100% stake in Crown Aim, a Hong Kong-based company engaged in jewellery distribution to China, Japan, US, Middle East and Europe. Gitanjali Gems added 0.35% to close at Rs340.95 on the NSE.

HT Media (HTML) today said it has entered into an agreement for an equal joint venture (JV) with US-based Apollo Global Inc to roll out programmes and services in the education space. The JV will enable India’s business community to train and empower employees for a 21st century global workplace, it added. The stock gained 0.93% to settle at Rs124.75 on the NSE.

Pipe manufacturer Man Industries (India) has received orders totalling Rs515 crore from overseas clients for supply of large diametre pipes for the oil and gas sector. With the new orders, the company’s order book stands at Rs1,500 crore. The orders are to be executed in next nine to 12 months. The stock surged .25% to settle at Rs115.90 on the NSE.

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