Weak upmove on BSE Sensex, Nifty may continue for a couple of days: Monday Closing Report

Watch for a close below the low of any previous day for a reversal in the present weak uptrend  


The market settled with marginal gains amid volatile trade as the political logjam in the Parliament renewed concerns about the fate of the reforms recently initiated by the government. On Friday we had mentioned that a strong close above 5,655 may bring more momentum to the uptrend. Today the benchmark almost reached this level but closed 19 points below at 5,636. We may now the see the weak upmove continuing for a day or two. However, a close below the low of any previous day may lead to a reversal in the present weak uptrend. The National Stock Exchange (NSE) saw a volume of 61.75 crore shares and an advance decline of 999:707.

The Indian market opened on a positive note on reports that the government has called for an all-party meeting to discuss the issue of allowing foreign direct investment in multi-brand retail. Meanwhile, the Asian pack was mixed in morning trade ahead of the European policymakers’ meeting to decide the bailout to Greece.
Back home, the Nifty opened 22 points higher at 5,649 and the Sensex started off at 18,574, a gain of 67 points over its previous close. Select buying in heavyweights in led the market higher in early trade, helping the benchmarks hit their intraday highs. At the highs, the Nifty touched 5,649 and the Sensex went up to 18,590.
However, profit booking soon saw the indices paring their gains in subsequent trade. The continuing logjam in the Parliament resulted in the market slipping to the day’s lows in noon trade. At this point, the Nifty fell to 5,623 and the Sensex went back to 18,509.
A high degree of volatility since the beginning of the day’s trading session saw the benchmarks moving in a narrow range. The negative opening of the key European indices caped the gains in the local market in post-noon trade.
The Nifty settled nine points higher at 5,636 and the Sensex finished trade at 18,537, up 30 points. 
The broader indices outperformed the Sensex as the BSE Mid-cap index climbed 1% and the BSE Small-cap index advanced 0.85%.
The top sectoral gainers were BSE TECk (up 1.35%); BSE IT (up 1.24%); BSE Consumer Durables (up 1.20%); BSE Metal (up 0.98%) and BSE Healthcare (up 0.71%). The losers were BSE PSU (down 0.54%); BSE Bankex, BSE Auto (down 0.30% each) and BSE Oil & Gas (down 0.24%).
Nineteen of the 30 stocks on the Sensex closed in the positive. The main gainers were Wipro (up 2.50%); Sterlite Industries (up 2.23%); Tata Steel (up 1.96%); Infosys (up 1.71%) and Bharti Airtel (up 1.62%). Mahindra & Mahindra (down 3.37%); Sun Pharma (down 1.72%); BHEL (down 1.40%); HDFC Bank (down 1.07%) and GAIL India (down 0.81%) were the main losers.
The top two A Group gainers on the BSE were—GlaxoSmithKline Consumer Healthcare (up 20%) and AstraZeneca Pharma India (up 12.18%).
The top two A Group losers on the BSE were—Hindustan Copper (down 20%) and M&M (down 3.37%).
The top two B Group gainers on the BSE were—GEI Industrial Systems (up 19.96%) and BAG Films (up 19.90%).
The top two B Group losers on the BSE were—Soma Papers & Industries (down 19.95%) and Spanco (down 19.90%).
Out of the 50 stocks listed on the Nifty, 29 stocks settled in the positive. The major gainers were IDFC (up 2.38%); Wipro (up 2.36%); Bharti Airtel (up 1.75%); Tata Steel (up 1.70%) and Hindalco Industries (up 1.62%). The top losers on the index were M&M (down 3.41%); BPCL (down 1.90%); BHEL (down 1.74%); Sun Pharma (down 1.67%) and HDFC Bank (down 1.34%).
Markets across Asia were mixed ahead of the EU finance ministers’ meeting to decide on the second bailout to Greece. Markets in China, Hong Kong, Malaysia and South Korea settled lower due to profit booking after recent gains.
The Jakarta Composite climbed 0.61%; the Nikkei 225gained 0.24%; the Straits Times advanced 0.51% and the Taiwan Weighted surged 1.11%. On the other hand, the Shanghai Composite declined 0.49%; the Hang Seng slipped 0.24%; the KLSE Composite dropped 0.40% and the Seoul Composite fell 0.15%.
At the time of writing, the key European indices were trading down between 0.18% and 0.72% and the US stock futures were trading in the red.
Back home, foreign institutional investors were net buyers of shares totalling Rs366.37 crore on Friday while domestic institutional investors were net sellers of equities amounting to Rs184.28 crore.
Lanco Infratech today said China Development Bank will arrange loans worth $2 billion (over Rs11,000 crore) for its two power projects—Anpara Phase II and Himawat—each having capacity of 1,320 MW generation capacity. The stock jumped 3.28% to close at Rs12.60 on the NSE.
Lupin Pharmaceuticals Inc, a subsidiary of Lupin has launched generic version of Tricor, an anti-cholesterol drug, in the US market after getting approval from the US Food and Drug Administration (USFDA). Lupin’s fenofibrate tablets are the generic equivalent of Abbott’s Tricor tablets and are indicated for heart diseases including primary hypercholesterolemia, mixed dyslipidemia and severe hypertriglyceridemia. The stock gained 0.88% to close at Rs565.15 on the NSE.
Water and waste water management company, VA Tech Wabag, has received a Rs217 crore order from Bangalore Water Supply and Sewerage Board (BWSSB). The project is funded by Japan International Cooperation Agency (JICA). The stock rose 1.46% to close at Rs526.50 on the NSE.


Fortnightly Market View: Real strength?

Are market indices reflecting corporate India’s strength?

There is an emerging consensus that the Indian economy is poised to recover rapidly in 2013, thanks to a variety of positive factors such as rate cuts, ‘reform initiatives’ of the government, ‘return of the investment cycle’ that will take up the baton of growth from the consumption cycle at the right time, and so on. This...

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Nifty, Sensex may see an upmove: Weekly Market Report

A close above 5,665 on the Nifty on Monday may see the upmove gaining strength, possibly to 5,710

The market gained around a percent mainly on international support as global indicators point to a gradual improvement in the economies across the world. However, the domestic gains were capped towards the end of the week as the first two days of the Winter Session of Parliament was a washout due to opposition to FDI in multi-brand retail and the issue of scheduled castes and scheduled tribes promotions. Parliament proceeding and the expiry of the November F&O contract will keep the market volatile next week.
The Sensex closed the week at 18,507, up 197 points (1.08%) and the Nifty finished 53 points (0.94%) higher at 5,627. A strong close above 5,665 may bring more momentum to the uptrend and may see the index reach to the level of 5,710. However, Friday’s low continues to be the crucial level to watch.
The market settled flat with a mixed bias on Monday after remaining listless for a major part of the session. Selling pressure in realty, oil & gas and metal stocks saw the benchmarks paring their gains and ending flat on Tuesday. Hopes of the government’s reforms being approved by Parliament in the Winter Session pushed the market higher on Wednesday.
Opposition to the government’s reforms marred Parliament proceedings on Thursday resulting in the benchmarks closing flat. The market settled flat to negative on Friday as the second day of the Winter Session also proved to be a washout.
BSE Fast Moving Consumer Goods (up 3%) and BSE Auto (up 2%) were the key sectoral gainers while BSE PSU and BSE Power (down 1% each) were the main losers.
Among Sensex stocks, Mahindra & Mahindra (up 7%), ITC, HDFC Bank, Sun Pharmaceutical Industries and Maruti Suzuki (up 4% each) were the chief gainers. NTPC (down 4%), BHEL, GAIL India, ONGC and Tata Motors (down 2% each) settled at the bottom of the index.
The key Nifty toppers were M&M (up 7%), HCL Technologies (up 5%), ITC, HDFC Bank and Sun Pharma (up 4% each). The major losers on the index in the week were Ranbaxy Laboratories (down 5%), NTPC (down 4%), Lupin, ONGC (down 3% each) and BHEL (down 2%).
Kick-starting the disinvestment process of this year, the government on Friday sold 5.58% stake in Hindustan Copper for about Rs808 crore at an average price of Rs156.56 apiece, with bulk of the bids coming from LIC and PSU banks. 
Encouraged by the response to the first stake sale in the current financial year, finance minister P Chidambaram expressed the hope that government would able to garner the targeted Rs30,000 crore in 2012-13 through disinvestment.
The government on Thursday cleared the National Pharmaceutical Pricing Policy that will bring 348 essential drugs under price control, leading to reduction in prices. The pricing now would be based on simple average of rates of all brands which have more than 1% market share. While drug companies may declare that it will impact their profit margins for some drugs, they must have sighed a relief that cost-based model is scrapped. MBP will legitimise overpricing of life-saving drugs.
Reports of a possible agreement with the Congress on the US budget and positive economic data from across the world helped the US markets close the week at their best since June. Meanwhile, Greece said the International Monetary Fund had made some concessions in the debt-cutting target for the country, suggesting lenders were closer to a deal for a vital aid tranche to be paid.


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