Short downtrend ahead: Friday Closing Report
Moneylife Digital Team 10 August 2012

If the Nifty breaks today’s low, it may be headed for 5,200

The market settled flat with a negative bias following a clutch of disappointing quarterly results and subdued global cues. Yesterday we had mentioned that we may see the Nifty move sideways for a day or two before it is able to find its further move. Today the index moved in a range of 5,294 and 5,330 (36 points) before it closed flat. We may now see a short downtrend. If the benchmark breaks today’s low, it may head for 5,200.The National Stock Exchange (NSE) saw a lower volume of 52.66 crore shares.
The market opened lower on unsupportive global cues and downgrades of blue chips—State Bank of India and Tata Motors—by global investment firms. Among US benchmarks, the Dow slipped marginally, while the S&P 500 and Nasdaq settled in the green on Thursday. Markets in Asia were trading lower this morning on weaker-than-expected trade data from China.
Back home, the Nifty opened 15 points down at 5,308 and the Sensex resumed trade at 17,515, down 46 points from its previous close. The indices remained in the negative in subsequent trade amid intense volatility. 
State Bank of India (SBI) reported a 137% jump in net profit at Rs3,752 crore for the first quarter ended 30 June 2012 compared to Rs1,583 crore in the year-ago period, though rising non-performing loans continue to be a cause of concern. The bank's net non-performing assets (NPAs) rose to 2.22% of total loan book at the end of June, against 1.61% in the corresponding period of the previous fiscal, reflecting the impact of slowing economy.
The market fell to the day’s low in noon trade following a lacklustre performance by SBI and a negative opening of the European indices. The Nifty fell to 5,294 and the Sensex went back to 17,471 at the lows.
 However, value-picking at the lows resulted in the indices recovering from the lows and emerging into the green. The gains enabled the market hit its intraday highs around 1.45pm. At this point the Nifty rose to 5,330 and the Sensex went up to 17,589.
Volatile trade and downgrade of key stocks resulted in the market closing flat with a negative bias. The Nifty shed three points to settle at 5,320 and the Sensex finished trade at 17,558, down three points from its previous close.
The advance-decline ratio on the NSE was negative at 555:854.
The broader indices settled mixed. The BSE Mid-cap index rose 0.02% while the BSE Small-cap index declined 0.29%.
BSE IT (up 1.33%); BE TECk (up 1.13%); BSE Fast Moving Consumer Goods (up 0.69%); BSE Oil & Gas (up 0.27%) and BSE Metal (up 0.09%) made up the sectoral gainers. The top losers were BSE Consumer Durables (down 1.68%); BSE Auto (down 1.22%); BSE Bankex (down 0.85%); BSE PSU (down 0.84%);  and BSE Realty (down 0.67%) . 
The top gainers on the Sensex were Hindustan Unilever (up 2.13%); Sterlite Industries (up 1.65%); Maruti Suzuki (up 1.61%), TCS (up 1.53%) and Infosys (up 1.50%). The key losers on the index were SBI (down 4.26%); Tata Motors (down 3.07%); Hero MotoCorp (down 2.27%); Tata Steel (down 1.45%) and Coal India (down 1.09%).
The top two A Group gainers on the BSE were—Jain Irrigation (up 5.02%) and Tech Mahindra (up 4.96%).
The top two A Group losers on the BSE were—JP Infratech (down 7.24%) and SBI (down 4.26%).
The top two B Group gainers on the BSE were—Technocraft Industries (up 19.96%) and Shree Tulsi Online.Com (up 12.47%).
The top two B Group losers on the BSE were—SE Power (up 19.95%) and Birla Power Solutions (down 14.71%).
The Nifty was led by BPCL (up 3.59%); Maruti Suzuki (up 2.46%); Kotak Mahindra Bank (up 2.33%); TCS (up 2.13%) and Sterlite Ind (up 2.11%). The key losers on the benchmark were SBI (down 4.11%); Tata Motors (down 3.24%); Ranbaxy Laboratories (down 3.05%); Bank of Baroda (down 2.55%) and IDFC (down 2.37%).
Markets in Asia settled mostly higher, but with meagre gains, on reports that China’s trade data for July was below expectations. China’s exports grew 1% in July from a year earlier against market expectations for an 8.6% rise, while imports grew 4.7%, against expectations for 7.2% growth.
The Jakarta Composite gained 0.25%; the KSLE Composite rose 0.17%; the Straits Times added 0.06%; the Seoul Composite advanced 0.30% and the Taiwan Weighted settled 0.10% higher. Among the losers, the Shanghai Composite declined 0.24%; the Hang Seng dropped 0.66% and the Nikkei 225 tanked 0.97% in trade today.
At the time of writing, the key European indices were down between 0.27% and 0.87% and the US stock futures were trading in the negative.
Back home, foreign institutional investors were net buyers of shares totalling Rs337.14 crore on Thursday whereas domestic institutional investors were net sellers of stocks amounting to Rs754.40 crore.
Industrialist Anil Ambani has said his group firm Reliance Infrastructure has shortlisted road projects worth Rs40,000 crore for bidding, while for cement business it has applied for mining leases and prospecting licences in various parts of the country. The stock declined 1.91% to settle at Rs504.45 on the NSE.
State-owned Engineers India today said it has bagged a consultancy service contract from Cairn Energy India Pty Ltd for its enhanced oil recovery project for Mangala oil field in the prolific Rajasthan block. The project involves setting up of additional surface facilities for 15 existing well pads with associated pipelines and infrastructure facilities for development of a polymer flood at Mangala (oilfield) for enhanced crude oil recovery.  EIL dropped 2.72% to close at Rs234 on the NSE.
Mahindra Holidays & Resorts, a leader in the vacation ownership space with over 147,000 members and 40 resorts across India and abroad, today announced the acquisition of Royal Courts Jaisalmer, a 74 room resort, by purchasing 100% equity share capital of Divine Heritage Hotels. Out of the 74 rooms, 35 rooms were already part of the company’s flagship brand “Club Mahindra” network under an inventory management. With this acquisition, Club Mahindra now has inventory of over 200 rooms in Rajasthan. The stock climbed 2.15% to close at Rs292 on the NSE.


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