Short decline now on the Nifty may form a basis for pushing up of the index further

Indian market on Tuesday witnessed a highly volatile session. In line with the US and Asian markets where most of the indices closed in the red, the benchmark in India too ended in the negative after hitting an all time high.

The BSE 30-share Sensex opened at 21,948 while the NSE 50-share Nifty opened at 6,550. Sensex moved in the range of 21,917 and 22,080 and closed at 22,055 (down 0.27 points). Nifty moved between 6,545 and 6,596 and closed at 6,590 (up 6 points or 0.09%). The NSE recorded a volume of 69.43 crore shares.
 

Except for Energy (0.97%), IT (0.69%) and Media (0.14%) all the other indices on the NSE closed in the green. The top five gainers were Infra (1.38%), Realty (1.36%), PSE (1.24%), CPSE (1.11%) and Nifty Midcap 50 (1%).

Of the 50 stocks on the Nifty, 30 ended in the green. The top five gainers were Bhel (4.23%), DLF (3.61%), Hero MotoCorp (3.07%), Jindal Steel (2.87%) and Ranbaxy (2.48%). The top five losers were Reliance Industries (3.05%), Wipro (2.75%), Ambuja Cements (1.85%), Sesa Sterlite (1.77%) and M&M (1.48%).

Of the 1,564 companies on the NSE, 656 closed in the green, 811 closed in the red while 97 closed flat.

BHEL has received an order worth Rs3,000 crore from NTPC, for supply of steam generators for an upcoming power project in Odisha. It involves supply of 2x800 MW steam generators (boilers) with super critical parameters for the project at Darlipali in Odisha. BHEL (4.41%) was the top gainer in the Sensex 30 stocks which closed at Rs196.50 on the BSE.

Among the top laggers in the ‘A’ group on BSE yesterday, today was among the top five gainers. Financial Technologies rose 5% to close at Rs376.25 on the BSE. The company has entered into a share purchase agreement for sale of 13,64,787 equity shares of IEX to Golden Oak (Mauritius) Limited, for a consideration of Rs72.89 crore. The above said sale of shares was to comply with Central Electricity Regulatory Commission (CERC) Regulations to bring down the company’s stake in IEX to 25%. Subsequent to the above transaction, the shareholding of the company in IEX will be 28.49% and on fully diluted basis 25.64%.

Reliance Industries, the top loser in the Sensex – 30 stocks, fell as the Election Commission has reportedly ordered deferment of an increase in gas prices that was to take effect from 1 April 2014. Reliance Industries (2.87%) closed at Rs878.65 on the BSE.

The Bharatiya Janata Party (BJP) said the party will review the new gas pricing formula if elected to power after general elections. "If we are voted into power we would have to look at all the facts, all the realities on the ground, while keeping the interest of stakeholders in mind - in particular consumers. If this means going for a review we will review the pricing formula," Narendra Taneja, National Convener, Energy Cell, for the BJP said in an interview to a news agency.

US indices closed in the negative on Monday. Markit on Monday said its preliminary or flash PMI index tallied 55.5 in March, just slightly below February's nearly four-year high. Any number over 50 signals growth.

Most of the Asian indices closed in the red. Taiwan Weighted (up 0.98%) was the top gainer while Hang Seng (down 0.52%) was the top loser.

China's economy may still grow around 7.5% this year despite signs of a slowdown, and there is no immediate need for the government to roll out fresh stimulus measures, Asian Development Bank President Takehiko Nakao said on Monday.