Sensex, Nifty may give up gains: Monday Closing Report

Moneylife Digital Team 20 May 2013

The indices may trend lower unless the Nifty manages to again close above day’s high

The market snapped its four-day winning streak and ended lower today on pressure from the pharmaceutical sector on concerns about the new drug price order. The indices may trend lower unless the Nifty manages to again close above day’s high. The National Stock Exchange (NSE) recorded a turnover of 59.63 crore advance-decline ratio of 596:818.

The market opened mixed despite support from its Asian peers which were in the positive in morning trade on firm economic indicators from the US over the weekend. US consumer sentiment rose to its best in nearly six years in early May and a gauge of future economic activity rose to a near five-year high in April.

Back home, the Nifty opened 11 points higher at 6,198 and the Sensex started the week at 20,278, a fall of eight points from its previous close. Buying in metal, auto and fast moving consumer goods stocks led the market higher in early trade.

While the Nifty hit its intraday high in the first half hour of trade with the index touching 6,229, the Sensex’s high came in at around 10.55am with the benchmark climbing to 20,444.

Profit booking at the highs saw the indices paring part of their gains on selling pressure from consumer durables and healthcare sectors. The selling intensified in the post-noon session sending the market into the negative terrain.

The market touched the lows of the day in the last half of trade. The Nifty went back to 6,146 and the Sensex fell to 20,186 at their respective lows. However, the benchmarks settled off the lows but in the red, snapping their four-day winning streak.

The Nifty closed 30 points (0.49%) lower at 6,157 and the Sensex settled 62 points (0.31% down at 20,224.

Markets in Asia, with the exception of the Seoul Composite, settled in the positive with the Nikkei 225 settling 1.47% higher as prime minister Shinzo Abe last week asserted to increase private investment to the pre-crisis level and triple infrastructure exports in a bid to overcome deflation. Real estate stocks in China extended gains as new home prices in April rose at their fastest pace in two years.

The Shanghai Composite gained 0.75%; the Hang Seng surged 1.78%; the Jakarta Composite climbed 1.35%; the KLSE Composite advanced 0.45%; the Nikkei 225 surged 1.47%; the Straits Times rose 0.14% and the Taiwan Weighted settled 0.11% higher. Bucking the trend, the Seoul Composite lost 0.22%.

At the time of writing, key markets in Europe were in the green while the US stock futures were marginally in the red.

Back home, foreign institutional investors were net buyers of shares aggregating Rs867.93 crore on Friday. On the other hand, domestic institutional investors were net sellers of equities amounting to Rs716.69 crore.

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