The market snapped its two-day losing streak and closed with modest gains after remaining in the positive for the entire trading session. However, political concerns which emerged in the second half of trade saw the benchmarks paring part of their gains. We had mentioned yesterday that the market is likely to remain in a downtrend, subject to pullbacks for the next few days at least. We continue to maintain the stance. The National Stock Exchange (NSE) saw a volume of 70.65 crore shares with an advance decline ratio 987:808.
The domestic market witnessed a gap up opening on support from its Asian peers which were firm in morning trade. However, gains in Asia were restricted as the International Monetary Fund cut China’s growth forecast to 7.8% for 2012 on account of global issues.
The Nifty rose 32 points to resume trade at 5,708 and the Sensex opened at 18,796, up 87 points over its previous close. Gains in power, capital goods and banking stocks pushed the indices higher in early trade. However, selling pressure in heavy weights in mid-morning trade saw the market paring a part of its early gains.
Buying in select sectors enabled the benchmarks hit their intraday high at around 11.30am wherein the Nifty scaled 5,729 and the Sensex climbed to 18,886.
Political concerns following a threat by former Uttar Pradesh chief minister Mayawati-led Bahujan Samaj Party that the party would decide on Wednesday whether to continue to support the UPA government saw the market dropping to its lows in noon trade. Subdued opening by the European indices also dented sentiments. At the low the Nifty fell to 5,678 and the Sensex went back to 18,722.
The market witnessed a minor recovery, rising from its lows and closed with modest gains. The Nifty settled 29 points (0.50%) up at 5,705 and the Sensex finished the session at 18,793, a gain of 84 points (0.45%).
Among the broader markets, the BSE Mid-cap index gained 0.47% and the BSE Small-cap rose 0.33%.
The top sectoral gainers were BSE Consumer Durables (up 1.47%); BSE Healthcare (up 1.14%); BSE IT (up 1.10%); BSE Fast Moving Consumer Goods (up 1.05%) and BSE (0.94%). The losers were BSE Oil & Gas (down 0.45%); BSE Power (down 0.08%) and BSE Auto (down 0.04%).
Nineteen of the 30 stocks on the Sensex closed in the positive. The major gainers were Larsen & Toubro (up 2.06%); Infosys (up 1.85%); Sun Pharma (up 1.62%); Sterlite Industries (up 1.59%) and Hindustan Unilever (up 1.46%). The main losers were GAIL India (down 2.77%); Bharti Airtel (down 1.83%); Hindalco Industries (down 1.62%); BHEL (down 1.52%) and Tata Motors (down 0.95%).
The top two A Group gainers on the BSE were—United Spirits (up 6.67%) and MCX (up 5.76%).
The top two A Group losers on the BSE were—Idea Cellular (down 3.24%) and GAIL India (down 2.77%).
The top two B Group gainers on the BSE were—Jay Bharat Maruti (up 20%) and Sea TV Network (up 20%).
The top two B Group losers on the BSE were—Bio Green Industries (down 11.04%) and Dhanus Technologies (down 9.94%).
Out of the 50 stocks listed on the Nifty, 29 stocks settled in the positive. The key gainers were UltraTech Cement Company (up 2.61%); L&T (up 2.41%); Ranbaxy Laboratories (up 2.04%); Sun Pharma (up 2%) and Lupin (up 1.88%). GAIL (down 2.93%); BHEL (down 1.93%); Bharti Airtel (down 1.83%); NTPC (down 1.54%) and Hindalco Ind (down 1.37%) were the key losers on the index.
Markets in Asia closed mixed as the IMF cut China’s growth forecast to 7.8% on the back of a slowdown in Europe and the US. Meanwhile, home prices in China's 100 big cities rose for a fourth straight month in September, supporting signs of a minor recovery in the economy. Investors are also awaiting the outcome of the meeting of European finance ministers, which got underway after the Asian markets closed for the day.
The Shanghai Composite surged 1.97%; the Hang Seng climbed 0.54%; the Jakarta Composite advanced 0.28% and the KLSE Composite rose 0.19%. Among the losers, the Nikkei 225 tanked 1.06%; the Straits Times dropped 0.35%; the Seoul Composite fell 0.14% and the Taiwan Weighted declined 0.31%.
At the time of writing, the key European markets were mixed with a negative bias and the US stock futures were marginally lower.
Back home, foreign institutional investors were net buyers of shares totalling Rs563.84 crore on Monday. On the other hand, domestic institutional investors were net sellers of equities amounting to Rs778.61 crore.
DQ Entertainment (International), a Hyderabad-based animation, game art and entertainment company, has signed a deal with California-based Foothill for development, co-production and distribution of animated buddy comedy “Raz & Benny”. The stock closed 2.07% higher at Rs19.75 on the NSE.
IRB Infrastructure Developers has completed the acquisition of 74% stake in MVR Infrastructure & Tollways Private Ltd making the latter a subsidiary of IRB. The acquisition of the balance 26% holding will be completed after NHAI approves the transfer of 26% holding to IRB, the company said in a notification to the stock exchanges. The stock closed 0.29% up at Rs153.25 on the NSE.
