If the Nifty is able to rally from this level, it may head for 5,960
 

The market continued its losing streak into the new week on lack of cues from Asia and on concerns about the nation’s economic growth. However, if the Nifty is able to rally from this level, it may head for 5,960. The National Stock Exchange (NSE) reported a volume of 51.46 crore shares and advance-decline ratio of 622:897.

The market opened with minor gains on cautiousness ahead of the release of key macro-economic indicators this week. In global trade, most markets across are shut for the Chinese Lunar New Year holiday, and that which was open was up. The US markets witnessed a strong close on Friday on positive economic indicators.

The Nifty opened 16 points higher at 5,920 and the Sensex started off at 19,518, a rise of 33 points over its previous close. Early gains helped the market hit its intraday high, wherein the Nifty touched 5,924 and the Sensex went up to 19,543.

However, the gains were short-lived as profit booking soon saw the benchmarks trending down. The market was range-bound with the key indicators hovering on both sides of their previous closing levels in subsequent trade.

Meanwhile, MCX Stock Exchange’s (MCX-SX) benchmark index SX40 went live with its equity trading platform on both the equities and equity derivatives today. MCX-SX became India’s third full-fledged equity bourse after the BSE and the NSE.

The market dipped to its lows shortly after 11.00am with the Nifty falling to 5,879 and the Sensex moving back to 19,417. Buying in select sectors in non trade lifted the benchmarks into the green, lack of cues from its Asian peers kept a cap on the gains.

Adding to the economic fears, Reserve Bank of India governor Duvvuri Subbarao today cautioned the country was headed for the highest ever current account deficit (CAD) this fiscal, after it rose to 5.3% of GDP in the second quarter. He also expressed concern over the way the CAD, which is the gap between forex gained and forex spent, is being financed by volatile inflows instead of more foreign direct investments.

Lacklustre trade continued in the late session as the benchmarks once again gave up their gains. The market witnessed another of subdued trade with the Nifty closing six points (0.10%) down at 5,898 and the Sensex falling 24 points (0.12%) to 19,461.

Among the broader indices, the BSE Mid-cap index fell 0.18% and the BSE Small-cap index declined 0.31%.

The top sectoral gainers were BSE Realty (up 0.91%); BSE Healthcare (up 0.74%); BSE PSU (up 0.47%); BSE Bankex (up 0.34%) and BSE Power (up 0.29%). The main losers were BSE Capital Goods (down 0.81%); BSE TECk (down 0.43%); BSE IT (down 0.33%); BSE Fast Moving Consumer Goods (down 0.31%) and BSE Oil & Gas (down 0.18%).

Thirteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were Cipla (up 3.62%); Dr Reddy’s Laboratories (up 2.45%); Hindalco Industries (up 2.14%); Sterlite Industries (up 2.07%) and Hindustan Unilever (up 1.88%). The major losers were Maruti Suzuki (down 1.64%); ONGC (down 1.61%); Jindal Steel & Power (down 1.60%); Bharti Airtel (down 1.57%) and HDC (down 1.27%).

The top two A Group gainers on the BSE were—MMTC (up 18.96%) and Hindustan Copper (up 10.48%);

The top two A Group losers on the BSE were—Cadila Healthcare (down 6.43%) and AstraZeneca Pharma India (down 6.36%).

The top two B Group gainers on the BSE were—State Trading Corporation (up 19.98%) and Panama Petrochem (up 17.37%).

The top two B Group losers on the BSE were—Cochin Minerals & Rutile (down 19.98%) and Crest Animation Studios (down 19.98%).

Out of the 50 stocks listed on the Nifty, 23 stocks settled in the positive. The major gainers were Cipla (up 3.66%); Axis Bank (up 3.04%); Hindalco Ind (up 2.60%); Tata Motors (up 2.40%) and Dr Reddy’s (up 2.24%).  The key losers were ACC (down 3.70%); JSPL (down 2.57%); IDFC (down 2.26%); Maruti Suzuki (down 1.99%) and ONGC (down 1.91%).

In Asia, the Jakarta Composite gained 0.27% Markets in Japan, South Korea, China, Hong Kong, Singapore and Malaysia were closed for national holidays.

At the time of writing, the key European indices were up between 0.18% and 0.54% and the US stock futures were trading in the positive, an indication of a green opening for US stocks.

Back home, foreign institutional investors were net buyers of equities totalling Rs1,490.82 crore on Friday and domestic institutional investors were net sellers of shares aggregating Rs709.36 crore.

Provident Housing, the wholly-owned subsidiary of real estate developer Puravankara Projects, is planning to enter the Mangalore market. The Bangalore-based company is set to launch a property at Derebail, near Konchady in Mangalore. The realty major is also planning to similar initiatives in Mumbai, Delhi, Hyderabad, Coimbatore, Mysore, Pune, Baroda, Ahmadabad, Kolkata, Nagpur and Jaipur. Puravankara dropped 3.08% to close at Rs96 on the NSE.

Shree Renuka Sugars has signed an agreement with Sri Lanka’s state investment arm, Board of Investment, for setting up a $220-million sugar refinery complex at Hambantota in the South. The proposed project plans to bring inedible raw sugar from Brazil in bulk and add value locally by refining it in the complex. The stock declined 1.57% to close at Rs28.20 on the NSE.

Reliance Communications has awarded a $1 billion outsourcing contract to Swedish telecom equipment maker Ericsson to manage its networks across the northern and western states. Under the eight-year contract, Ericsson will operate and manage both the wireline and wireless networks in the northern and western States of India. Reliance Communications fell 0.47% to close at Rs74.90 on the NSE.