Nifty may move in the range of 5,340 and 5,495
The market, which was range-bound and slightly in the negative terrain till the post-noon session today, surged higher and closed in the green on positive news from Europe. As we mentioned yesterday, unless the market makes a lower low, the uptrend is likely to continue. Today Nifty made a higher low and shot up later to hit 5,423. We may now see the index moving in the range of 5,340 and 5,495, subject to it making a higher high and higher low. The National Stock Exchange (NSE) saw a volume of 98.50 crore shares.
The market opened lower tracking weak Asian markets in morning trade as Greek policymakers failed to sew a deal on reforms and austerity initiatives, a requirement for a fresh bailout package in order to avoid a debt default. The Nifty opened down 25 points at 5,343 and the Sensex started the day at 17,648, down 59 points from its previous close. Metals, IT and oil & gas sectors were subdued in early trade.
The indices touched their intraday lows in the first hour itself with the Nifty going down to 5,339 and the Sensex falling to 17,609. The market remained range-bound in the absence of any fresh triggers. The benchmarks made an attempt to emerge into the positive at shortly after 2pm but selling pressure kept the market lower. Fluctuations continued with the benchmarks hovering on both sides of the neutral line in the post-noon session.
The market got its much-needed boost with the key European indices trading with gains of half to one percent in early trade. The benchmarks hit their intraday highs towards the close of trade with the Nifty touching 5,423 and the Sensex surging to 17,879. However, the market pared a small part of the gains at the end of the session. The Nifty closed 44 points higher at 5,412 and the Sensex settled at 17,831, up 123 points.
The advance-decline ratio on the NSE was positive at 1222:564.
The broader indices outperformed the Sensex today, as the BSE Mid-cap index surged 1.27% and the BSE Small-cap index gained 1.18%.
In the sectoral space, BSE Metal (up 2.05%) led the gainers. It was followed by BSE Realty (up 1.95%); BSE Bankex (up 1.85%); BSE Auto (up 1.78%) and BSE Consumer Durables (up 1.28%). On the other hand, BSE Oil & Gas (down0.24%); BSE Capital Goods (down 0.11%) and BSE Healthcare (down 0.03%) settled lower.
Sterlite Industries (up 4.59%); Jindal Steel (up 3.81%); Tata Power (up 3.38%); Bajaj Auto (up 3.30%) and HDFC Bank (up 2.79%) were the toppers in the 30-share Sensex list. The main losers were Sun Pharma (down 1.36%); Hindalco Industries (down 1.31%); DLF (down 1.15%); Bharti Airtel (down 1.13%) and Larsen & Toubro (down 1.01%).
The top gainers on the Nifty were Reliance Power (up 5.20%); BPCL (up 4.61%); Tata Power (up 4.40%); Sterlite Ind (up 4.07%) and Jindal Steel (up 3.88%). The main laggards were Sun Pharma (down 1.92%); DLF (down 1.44%); Grasim Industries (down 1.27%); Hindalco Ind (down 1.09%) and GAIL (down 0.97%).
Markets in Asia settled mixed on Greece’s woes and dismal economic data from within the region. China’s consumer price index rose to a three-month high of 4.5% in January, higher than analysts’ expectations of a 4.1% rise. Besides, Japanese core machinery orders dropped 7.1% in December from the previous month on account of a global slowdown, which impacted exports.
Among the benchmarks, the Shanghai Composite added 0.09%; the KLSE Composite rose 0.78%; the Seoul Composite gained 0.54% and the Taiwan Weighted climbed 0.52%. On the other hand, the Hang Seng was flat; the Jakarta Composite fell by 0.24%; the Nikkei 225 lost 0.15% and the Straits Times settled 0.03% lower. At the time of writing, the key European indices were trading 0.41% to 0.91% higher, ahead of the European Central Bank and Bank of England meetings slated to take place later today. Similarly, US stock futures were trading higher, boosted by the optimism in Europe.
Back home, foreign institutional investors were net buyers of stocks totalling Rs384.24 crore on Wednesday while domestic institutional investors were net sellers of shares amounting to Rs424.46 crore.
Engineering and construction firm Unity Infraprojects today said it has bagged two orders worth Rs485.42 crore from state-run firms HSCC (I) and Rites. The Rs414.15 crore order from HSCC (I) is for redevelopment of buildings, academic block and students hostel for Lady Hardinge Medical College and associated hospitals. The other order, worth Rs71.27 crore, is from Rites for construction of auditorium at the NASC Complex. The stock surged 4.94% to close at Rs46.70 on the NSE today.
Tube Investments has drawn up a Rs200 crore investment plan to set up a tube products facility near Chennai with a focus on the infrastructure sector. The plant, with a capacity of 3,000 tonnes a month, will manufacture hydraulic cylinder tubes for excavation and earth-moving equipment. The scrip gained 0.60% to close at Rs126.50 on the NSE.
Ramky Estates & Farms, part of the Ramky Infrastructure group, said it plans to invest Rs1,700 crore in the markets of Hyderabad, Chennai and Bangalore in the next three to four years. Besides these cities, the realty firm will expand its construction activities in other parts of the country, including Mumbai and Kolkata. Ramky Infra climbed 1.26% to settle at Rs245 on the NSE.
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Shiram Transport Finance Board of Directors will decide the appointment of Mr Umesh Revankar as additional director as well as managing director of the company with effect from 1 April 2012.
Non-banking finance company, Shriram Transport Finance, deputy managing director, Mr Umesh Revankar is all set to become the company’s new managing director from April 2012.
The company said “regarding the succession plan for the chief executive officer, the board of directors will decide the appointment of Mr Umesh Revankar as additional director as well as managing director of the company with effect from 1 April 2012.”
Mr Revankar, an alumnus of Mangalore University and also from Harvard Business School, has been in Shriram Transport Finance for the last 24 years.