If the Nifty makes a lower low, we may see the index touching 5,165 and 5,135

Dismal global cues led the market lower for the second day. On one of the lowest volumes of on the National Stock Exchange (NSE) in the past 23 trading sessions (including today), the Nifty made a lower high and lower low for the second straight day today. Today, 50.63 crore shares were traded on NSE. The losses in the last two trading days wiped off nearly 70% of the gains made in the upmove that happened between 30th March and 3rd April. We had mentioned in our previous closing report that Monday’s move would determine the further direction. If the Nifty makes a lower low, we may see the index reaching the level of 5,165 and then to 5,135.

Opening after a long weekend, the market extended its losses on unsupportive global cues. Markets in Asia were in the red in morning trade on a disappointing US jobs report that was released over the weekend and a rise in Chinese inflation. The Nifty opened 40 points lower at 5,283 and the Sensex declined 78 points to resume trade at 17,408.

Select buying enabled the indices to hit their intraday high in initial trade itself. At the highs, the Nifty touched 5,288 and the Sensex rose to 17,408. However, selling pressure in metals, capital goods, power, banking and oil & gas stocks led the market further southwards as trade progressed.

The absence of any triggers and the key European markets remaining closed for the Easter Monday holiday saw the local market moving sideways. A small recovery was seen in the post-noon session; however, intense selling pressure once again pushed the indices lower again.

The market fell to its intraday lows in the fag end of the session. At this point, the Nifty fell to 5,228 and the Sensex dropped to 17,200.

The benchmarks settled near the lows of the day and in the red for the second day in a row. The Nifty closed trade at 5,234, down 89 points, and the Sensex finished 264 points lower at 17,222.

The advance-decline ratio on the NSE was tilted towards the losers at 685:1243.

Among the broader indices, the BSE Mid-cap index dropped 1.35% and the BSE Small-cap index fell by 0.65%.

Barring the BSE Healthcare index (up 0.32%), all other sectoral gauges settled lower. They were led by BSE Metal (down 3.44%); BSE Capital Goods (down 3.16%); BSE Power (down 2.49%); BSE PSU (down 2.05%) and BSE Bankex (down 1.81%).

Cipla (up 1.34%); Hindustan Unilever (up 1.06%); Bajaj Auto (up 0.95%); DLF (up 0.64%) and Bharti Airtel (up 0.12%) were the top gainers on the Sensex. The main losers were Hindalco Industries (down 5.18%); Sterlite Industries (down 4.34%); BHEL (down 3.71%); Larsen & Toubro (down 3.50%) and Jindal Steel (down 3.46%).

The Nifty was led by Ranbaxy Laboratories (up 3.99%); Dr Reddy’s Laboratories (up 2.01%); Cipla (up 1.73%); HUL (up 1.58%) and Bajaj Auto (up 0.96%). The key losers on the index were Hindalco Ind (down 5.41%); Cairn India (down 5.25%); IDFC (down 5.04%); Sterlite Ind (down 4.57%) and Sesa Goa (down 4.49%).

Markets in Asia closed lower as China’s annual inflation rose to 3.6% in March on the back of higher food prices. The disappointing US jobless data also weighed on the markets.

The Shanghai Composite declined 0.90%; the Jakarta Composite shed 0.30%; the KLSE Composite slipped 0.47%; the Nikkei 225 tanked 1.47%; the Straits Times fell 0.87%; the Seoul Composite dropped 1.57% and the Taiwan Weighted settled 1.37% lower. The Hong Kong market was closed for trade today. At the time of writing, the US stocks futures were trading lower, while the markets in Europe were closed today.

Back home, institutional investors—both foreign and domestic—were net buyers in the equities segment on Wednesday. While foreign institutional investors pumped in Rs45.82 crore, domestic institutional investors invested Rs126.70 crore.

Somany Ceramics today said it will acquire 26% stake in Gujarat-based Commander Vitrified Pvt Ltd (CVPL) for Rs3.25 crore. CVPL is at an advanced stage of setting up a new plant to manufacture about 2.65 million square meters of vitrified tiles (polished and glazed) per annum at Morbi (Gujarat). Somany declined 0.86% to close at Rs40.40 on the NSE.

Alstom T&D India has been awarded a contract worth approximately Rs74 crore by Jyoti Structures, a leader in turnkey engineering, procurement and construction (EPC) projects in the field of power transmission. The projects involve supplying power transmission equipment to state-run Power Grid Corporation for two projects. Alstom T&D declined 1.49% to close at Rs179.10 on the NSE.

Godrej Properties, through its wholly-owned subsidiary Godrej Projects Development Pvt Ltd, has entered into a development management agreement with RR Builders for redeveloping a MHADA (Maharashtra Housing & Area Development Authority) property at Byculla, Mumbai.

The project, spread over nearly 2.5 acres, would offer around 3 lakh sq ft of free saleable area. It is proposed to be developed as a residential project having 2, 3 and 4 BHK apartments. Godrej Properties closed 0.83% lower at Rs613.40 on the NSE.