If the Nifty holds today’s low, the market may make another attempt to cross 6,000
The market snapped its three-day winning streak and settled lower as the RBI’s move to the reduce rupee volatility ignited worries about slowing economic growth. If the Nifty holds today’s low, the market may make another attempt to cross 6,000. The National Stock Exchange (NSE) reported a higher volume of 60.36 crore shares and a poor advance-decline ratio of 414:922.
The market opened lower following the Reserve Bank of India’s (RBI) measures to hike the Marginal Standing Facility (MSF) by 2% in a bid to tackle the rupee volatility. The MSF now stands at 10.25%. The lowering of the country’s growth forecast to 5.8% in 2013 by the Asian Development Bank also weighed on investors. The Asian markets were mostly higher in early trade on better-than-expected earnings from US corporates.
The Nifty opened 100 points down at 5,931 and the Sensex resume trade at 19,788, a cut of 246 points from its previous close. The market fell to its low in initial trade itself with the indices at 5,911 and 19,650, respectively. Rate-sensitive sectors like realty, banking and capital goods were the top losers following the RBI’s move.
The benchmarks were range-bound in the negative terrain for the entire morning session in the absence of any fresh triggers. Sporadic buying in heavyweights like ITC and Reliance Industries pushed the market marginally higher, albeit in the negative, in the second half of the trading session.
Support from fast moving consumer goods, oil & gas, technology and IT stocks led the benchmarks higher in late trade. The market hit its high around 3.00pm with the Nifty going up to 5,966 and the Sensex rising to 19,881.
While the market snapped its three-day winning streak and settled lower, it closed near the day’s high. The Nifty ended the session 76 points (1.25%) lower at 5,955 and the Sensex fell 183 points (0.91%) to 19,851.
Among the broader indices, the BSE Mid-cap index dropped 1.45% and the BSE Small-cap index declined 0.79%.
BSE Fast Moving Consumer Goods (up 1.81%); BSE Oil & Gas (up 0.74%) and BSE TECk (up 0.05%) were the sectoral gainers while all others settled lower. The top losers were BSE Realty (down 5.84%); BSE Bankex (down 4.83%); BSE Capital Goods (down 2.23%); BSE Metal (down 1.90%) and BSE Consumer Durables (down 1.13%).
Out of the 30 stocks on the Sensex, 13 stocks settled higher. The main gainers were ITC (up 2.30%); Bharti Airtel (up 2.08%); Hindustan Unilever (up 1.55%); ONGC (up 1.28%) and NTPC (up 1.09%). The main losers were ICICI Bank (down 5.61%); State Bank of India (down 4.57%); HDFC (down 3.88%); Larsen & Toubro (down 3.42%) and Jindal Steel & Power (down 3.22%).
The top two A Group gainers on the BSE were—Neyveli Lignite Corporation (up 4.34%) and Biocon (up 3.94%).
The top two A Group losers on the BSE were—Yes Bank (down 9.78%) and Indiabulls Real Estate (down 9.74%).
The top two B Group gainers on the BSE were—Tarapur Transformers (up 20%) and Kohinoor Foods (up 19.98%).
The top two B Group losers on the BSE were—Zenith Infotech (down 19.93%) and Infomedia Press (down 18.98%).
Of the 50 stocks on the Nifty, 21 ended in the in the green. The major gainers were ITC (up 2.61%); Ambuja Cement Company (up 2.03%); BPCL (up 1.92%); Bharti Airtel (up 1.91%) and HUL (up 1.82%). The key losers were DLF (down 7.80%); Jaiprakash Associates (down 7.52%); IndusInd Bank (down 7.51%); IDFC (down 7.11%) and Axis Bank (down 6.18%).
Markets in Asia closed mostly higher on hopes of positive earnings reports after US banking major Citigroup’s earnings beat estimates while a weaker yen boosted the Japanese market.
The Shanghai Composite gained 0.31%; the Hang Seng added 0.04%; the Jakarta Composite rose 0.18%; the Nikkei 225 advanced 0.64% and the Taiwan Weighted settled 0.07% higher. Among the losers, the KLSE Composite shed 0.02%; the Straits Times fell 0.37% and the Seoul Composite declined 0.47%.
At the time of writing, two of the key European markets were in the negative while the US stock futures were trading with minor gains.
Back home, foreign institutional investors were net sellers of stocks totalling Rs227.26 crore on Monday whereas domestic institutional investors were net buyers of shares amounting to Rs54.28 crore.
Turnkey engineering major Punj Lloyd is planning to refinance up to Rs1,400 crore of debt into dollar loans over the next six months to cut costs and soften the impact of a falling rupee. At present, the company's profile of debt, and its business locations are not in harmony. While about 65%-70% loans of Punj Lloyd’s Rs 5,500 crore debt pile is in rupees, 65%-70% of its businesses are outside India. The stock declined 3.92% to Rs1.90 on the NSE.
Infrastructure major IL&FS Engineering today said it has received a Rs284 crore contract for rural electrification works at Amedkarnagar district in Uttar Pradesh under Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY). The stock climbed 3.94% to settle at Rs33 on the NSE.
Drug major Cipla today said that it has completed the buyout process of South African pharma firm Cipla Medpro for an aggregate consideration of Rs2,707 crore. The listing of Medpro shares on the Johannesburg Stock Exchange (JSE) has been terminated from the commencement of business on 16 July2013, Cipla said. The stock declined 1.34% to Rs402.25on the NSE.
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