Share prices struggling to rally; fall to resume soon: Monday Closing Report

Moneylife Digital Team 09 May 2011

Expect selling pressure at the Nifty level of 5,600

The market opened with gains following last week’s sell-off in commodities, especially crude, easing the government’s worries about higher prices. Sensex and Nifty opened in positive at 18,629 and 5,575. Immediately the market hit their respective intra day high, which was higher than Friday’s high, at 18,644 and 5,586. A firming trend in the Asian markets also boosted investor sentiment here. Stocks of metals, realty, oil & gas, banking and capital goods propped up the indices higher in early trade.

The market, however, soon started falling trend amid choppy trade. In the morning session itself the market hit its intra day low at 18,367 and 5,502. Immediately thereafter the indices hot up, but lack of direction ensured that the benchmarks stayed near at the same level as yesterday. However, the market doesn’t have the strength to rally much. The Sensex rose 10 points to close at 18,529 while the Nifty fell 0.35 points at 5,551. For whatever it is worth, for the second day in a row, the market has made a higher high and a higher low. The advance-decline ratio on the National Stock Exchange was 540:801.

In line with the Sensex, the broader markets also ended unchanged. The BSE Mid-cap index gained 0.12% while the BSE Small-cap index added 0.22 points.

In the sectoral space, BSE Fast Moving Consumer Goods (up 1.24%), BSE Metal (up 0.74%) and BSE TECk (up 0.49%) were the top gainers. On the other hand, BSE Auto (down 1.29%), BSE Bankex (down 0.37%) and BSE Consumer Durables (down 0.32%) were the major losers.

The top performers on the Sensex were Bharti Airtel (up 3.93%), Hindustan Unilever (up 3.55%), Tata Power (up 2.49%), Jindal Steel (up 1.02%) and Sterlite Industries (up 0.95%). The laggards were led by Maruti Suzuki (down 2.24%), Jaiprakash Associates (down 1.91%), Tata Motors (down 1.90%), Bajaj Auto (down 1.84%) and Reliance Infrastructure (down 1.43%).

New Delhi-based research firm PE Analytics has drawn up plans to launch its real estate price Index in partnership with a leading commodity exchange. These indices will be based on the actual transaction and registration values prevailing in various micro-markets for the residential and commercial asset classes.

The indices will be the barometer for measurement of the real estate sector performance and will also enable trade on the exchange. The company is looking at September 2011 to go live with this product offering.

Markets in Asia settled mostly higher on Monday, bouncing back after a sharp fall last week. However, the gains were capped by concerns about the euro zone’s sovereign debt troubles. On the other hand, the Japanese market was down on fears of potential power outages and the Seoul market was weighed down on speculations that the Bank of Korea might hike interest rates this week.

The Shanghai Composite gained 0.32%, the Hang Seng surged 0.76%, the KLSE Composite rose 0.26%, the Straits Times jumped 1.21% and the Taiwan Weighted climbed 0.65%. On the other hand, the Jakarta Composite fell 0.34%, the Nikkei 225 declined 0.66% and the Seoul Composite lost 0.39%.

Back home, domestic institutional investors were net buyers of stocks worth Rs1,018.04 crore on Friday. On the other hand, foreign institutional investors were net sellers of equities worth Rs655.34 crore.

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