The bias remains downward for the medium-term

The market closed in the red on disappointing earnings reports and global concerns. Today the Nifty moved in a narrow range of 5,642 and 5,697 and closed in the negative, making the lowest closing in the past six days (including today). The index made a lower low and saw a lower high for the third consecutive day. The Nifty is in an indecisive zone. However the bias is downward for the medium-term. The National Stock Exchange (NSE) saw volume of 61.90 crore shares and an advance decline ratio of 588:1161.       

The domestic market opened in the negative on all- round profit taking after recent gains. Mixed sentiment across the globe following not-so-impressive earnings reports also weighed on the sentiments. The Nifty opened 21 points down at 5,684 and the Sensex started off at 18,715, down 44 points from its previous close.

Buying in select stocks saw the benchmarks hit their intraday highs in early trade itself, albeit in the negative. At the highs, the Nifty rose to 5,697 and the Sensex went up to 18,730. However, the market couldn’t maintain the gains and drifted further southwards in subsequent trade on selling pressure in fast moving consumer goods, healthcare and oil sectors.

A soft opening of the European markets added to the woes in the local market as the indices extended their gains in noon trade. The benchmarks fell to their lows shortly after 2.00pm with the Nifty going back to 5,642 and the Sensex dropping to 18,558.

The market witnessed a small recovery and closed off the lows, but in the red. The Nifty settled 41 points (0.72%) lower at 5,664 and the Sensex finished the session at 18,625, down 133 points (0.71%).

The broader markets underperformed the Sensex today. The BSE Mid-cap index declined 0.84% and the BSE Small-cap index dropped 1.05%.

Except for BSE Auto (up 0.81%), all other sectoral gauges settled lower. They were led by BSE Consumer Durables (down 2.84%); BSE Fast Moving Consumer Goods (down 1.78%); BSE Healthcare (down 1.20%); BSE PSU (down 1.15%) and BSE Power (down 1.06%).

Eight of the 30 stocks on the Sensex closed in the positive. The chief gainers were Mahindra & Mahindra (up 2.57%); Bajaj Auto (up 1.72%); Hero MotoCorp (up 1.68%); GAIL India (up 0.83%) and BHEL (up 0.73%). The top losers were Hindustan Unilever (down 2.14%); ITC (down 2%); Cipla (down 1.84%); Dr Reddy’s Laboratories (down 1.59%) and Reliance Industries (down 1.39%).

The top two A Group gainers on the BSE were—United Breweries (up 4.94%) and Emami (up 4.01%)..

The top two A Group losers on the BSE were—CESC (down 15.32%) and Lanco Infratech (down 10.77%).

The top two B Group gainers on the BSE were—Intec Capital (up 17.49%) and Fintech Communications (up 16.38%).

The top two B Group losers on the BSE were—Centerac Technologies (down 19.94%) and Orissa Sponge Iron & Steel (down 14.65%).

Out of the 50 stocks listed on the Nifty, 15 stocks settled in the positive. The key gainers were M&M (up 3%); Hero MotoCorp (up 2.11%); Bajaj Auto (up 1.98%); Ambuja Cements (up 1.38%) and Asian Paints (up 1.23%). The main losers were Punjab National Bank (down 6.72%); Jaiprakash Associates (down 5.40%); Hindustan Unilever (down 2.72%); ITC (down 2.23%) and Reliance Infrastructure (down 2.15%).

Most markets in Asia were closed for the Eid holiday today, but those that were open settled lower. Investors were concerned that the global slowdown, which has already dented corporate earnings, is expected to impact exports from the region.

The Shanghai Composite tanked 1.68%; the Hang Seng dropped 1.21%; the Nikkei 225 declined 1.35%; the Seoul Composite tumbled 172% and the Taiwan Weighted settled 1.76% down. Financial markets in Singapore, Malaysia, Indonesia and the Philippines were closed today.

At the time of writing, key benchmarks in Europe were down between 0.49% and 0.66% and the US stock futures were in the negative, indicating a soft opening for US stocks.

Back home, foreign institutional investors were net sellers of shares amounting to Rs551.34 crore on Thursday. On the other hand, domestic institutional investors were net buyers of equities aggregating Rs34.73 crore.

German chemical major BASF today said it will invest Rs1,000 crore to set up a new manufacturing facility at Dahej in Gujarat by March 2014. Besides the domestic market, the plant will export chemicals to other nations including Pakistan, Sri Lanka, Bangladesh, Thailand and some other Asean countries. The stock declined 0.78% to settle at Rs659.50 on the NSE.

Mahindra Holidays & Resorts will soon start a full-fledged office in Dubai to enrol Indians living there as its members. As at the end of September, Mahindra Holidays had 151,200 members. During the quarter ended September, the company added 4,162 members. The stock rose 0.04% to settle at Rs282 on the NSE.