Nifty may try to rally if today’s low holds since the recent declines have been on low volumes
 

The market pared its morning gains on selling pressure from consumer durables, banking and realty sectors. The Nifty may try to rally if today’s low holds since the recent declines have been on low volumes. The National Stock Exchange (NSE) saw a volume of 48.70 crore shares and advance-decline ratio of 682:714.

The domestic market opened on a flat note on concerns about the slowing pace of economic growth. On the global front, markets in Asia were mixed in morning trade on speculations that the US Federal Reserve will continue its bond-buying initiative on the back of a contraction in US manufacturing data for May. US indices settled higher on Monday amid volatile trade after Federal Reserve Bank of Atlanta President Dennis Lockhart said central bank is committed to record stimulus measures.

Back home, the Nifty opened two points up at 5,941 and the Sensex resumed trade at19,606, down four points from its previous close. Buying in metal, oil & gas PSU and healthcare stocks helped the benchmarks gain momentum after a sluggish start.

The indices continued their steady rise and hit their intraday highs at around 10.30am on support from capital goods, healthcare, banking and realty sectors. The Nifty touched 5,982 and the Sensex climbed to 19,743 at their respective highs.

The indices pared part of their gains as profit booking set in at higher levels. The market was range-bound till noon-trade in the absence of any fresh triggers.

The benchmarks slipped into the negative in the post-noon session on media reports that the Reserve Bank of India (RBI) plans to take early action against banks whose officials were recently caught in a sting operation willing to indulge in serious violation of banking norms. State Bank of India, Axis Bank, HDFC Bank and ICICI Bank were all trading lower following the report.

The market extended its losses as the indices touched their lows in the last half hour of trade with the banking sector among top losers. The Nifty fell to 5,910 and the Sensex declined to 19,522.

The benchmarks settled near their low and in the red for the third day. The Nifty ended 20 points (0.33%) lower at 5,919 and the Sensex finished the session at 19,546, a fall of 65 points (0.33%).

The broader market closed in the positive with the BSE Mid-cap index rising 0.10% and the BSE Small-cap index gaining 0.27%.

The sectoral gainers were BSE Healthcare (up 1.88%); BSE Capital Goods (up 0.77%); BSE Power (up 0.44%) and BSE fast moving consumer goods (up 0.31%). The main losers were BSE Consumer Durables (down 1.34%); BSE Bankex (down 0.95%); BS Realty (down 0.86%); BSE Auto (down 0.46%) and BSE IT (down 0.45%).

Out of the 30 stocks on the Sensex, 14 settled higher. The top gainers were Dr Reddy’s Laboratories (up 1.88%); Cipla (up 1.83%); Wipro (up 1.60%); Larsen & Toubro (up 1.56%) and Mahindra & Mahindra (up 1.13%). The major losers were Tata Motors (down 2.34%); State Bank of India (down 2.11%); Jindal Steel & Power (down 1.98%); HDFC (down 1.61%) and Sterlite Industries (down 1.40%).

The top two A Group gainers on the BSE were—Bata India (up 6.61%) and GlaxoSmithKline Consumer Healthcare (up 6.02%).

The top two A Group losers on the BSE were—Jaypee Infratech (down 5.23%) and Dish TV India (down 3.25%).

The top two B Group gainers on the BSE were—Williamson Financial Services (up 19.42%) and Sukhjit Starch & Chemicals (up 17.60%).

The top two B Group losers on the BSE were—Splash Media and Infra (down 19.94%) and Rei Six Teen Retail (down 18.81%).

Of the 50 stocks on the Nifty, 21 ended in the in the green. The main gainers were Ranbaxy Laboratories (up 4.22%); Dr Reddy’s (up 2.52%); Cipla (up 2.42%); Lupin (up 2.03%) and L&T (up 1.78%). The key losers were Tata Motors (down 2.53%); Axis Bank (down 2.51%); Sesa Goa (down 2.21%); SBI (down 2.07%) and Ambuja Cement Company (down 1.91%).

Markets in Asia closed on a mixed note as the Japanese market rose on support from financials, consumer durables carmakers while Chinese shares settled lower on pressure from consumer companies after the government ended subsidies for home appliances with effect from 1^st June.

The Hang  Seng added 0.01%; the Jakarta Composite climbed 1.01%; the KLSE Composite gained 0.59%; the Nikkei 225 surged 2.05% and the Straits Times rose 0.01%. Among the losers, the Shanghai Composite dropped 1.17%; the Taiwan Weighted lost 0.12% and the Seoul Composite ended flat with a negative bias.

At the time of writing, the CAC 40 of France was trading 0.31% higher, the DAX of Germany was up 0.50% and UK’s FTSE 100 gained 0.70%. At the same time, US stock futures were mixed with a negative bias.

Back home, institutional investors, both foreign and domestic, were net sellers in the equities segment on Monday. While FIIs withdrew Rs86.66 crore from stocks, DIIs pulled out funds worth 71.82 crore.

Wind energy major Suzlon today said its unit REpower Systems has signed contracts with ABO Wind for the supply of 13 wind turbines. “The turbines will be installed for two wind farms in Burgundy. The wind farms will generate a total output of more than 26 megawatts (MW),” Suzlon said in a statement. The stock gained 1.42% to Rs10.75 on the NSE.

Mobile value-added services provider On Mobile Global has entered into a definitive agreement to acquire Boston-headquartered Livewire Mobile, a provider of managed mobile entertainment solutions for network operators and device manufacturers. On Mobile will pay $17.8 million for the purchase of LiveWire’s business assets and certain liabilities, subject to certain contingent payments, the Bangalore-based company said on Tuesday. OnMobile advanced 1.88% to close at Rs35.20 on the NSE.

Lanco Infratech has been awarded a major EPC contract by Gujarat Industries Power Company. The contract, worth Rs3,294 crore, is for setting up of 2x300 MW lignite-based thermal power project. The stock gained 3.41% to close at Rs9.10 on the NSE.