If the Nifty closes below 5,615, the index may go sideways
The market closed flat with a positive bias in the absence of any local cues and on fresh concerns from Europe. Today the Nifty moved almost in the same range as yesterday. However, it ended with marginal gains. If the Nifty closes below 5,615 we may see sideways movement setting in. The National Stock Exchange (NSE) saw a volume of 107.64 crore shares and an advance-decline ratio of 949:838.
The domestic market opened marginally higher despite its Asian peers trending lower in morning trade. The Nifty opened five points higher at 5,675 and the Sensex resumed trade at 18,708, a gain of 35 points over its previous close.
Buying support in initial trade soon saw the indices hitting their intraday highs. The Nifty rose to 5,703 and the Sensex climbed to 18,790.
Continuing with its reforms push, this time in the power sector, the Centre on Monday approved restructuring of Rs1.9 lakh crore debt of State Electricity Boards in a move to turnaround the near-bankrupt power distribution companies. Under the scheme approved by the Cabinet Committee on Economic Affairs, 50% of the short-term outstanding liabilities would be taken over by state governments. The balance 50% loans would be restructured by providing moratorium on principle and best possible terms for repayments.
The indices could not sustain the gains and ventured into the negative territory in early trade itself. The market continued to be sideways in morning trade and fell to its lows around 11.45am. At this point the Nifty stood at 5,652 and the Sensex went back to 18,636.
Buying support from fast moving consumer goods, capital goods and banking sectors helped the benchmark emerge into the green in noon trade.
The market closed flat with a positive bias on concerns of recurring problems in Europe. The Nifty closed four points up at 5,674 and the Sensex rose 21 points to 18,694.
Among the broader markets, the BSE Mid-cap index gained 0.46% and the BSE Small-cap index advanced 0.53%.
The main sectoral gainers were BSE Realty (up 2.08%); BSE Fast Moving Consumer Goods (up 1.85%); BSE Consumer Durables (up 0.75%); BSE Healthcare (up 0.60%) and BSE Power (up 0.47%). BSE Metal (down 1.36%); BSE Auto (down 0.72%); BSE PSU (down 0.27%) and BSE Oil & Gas (down 0.20%) settled lower.
Twelve of the 30 stocks on the Sensex closed in the positive. The key gainers were BHEL (up 2.67%); Cipla (up 1.92%); ITC (up 1.86%); Hindustan Unilever (up 1.86%) and HDFC (up 1.28%). The main losers on the index were Jindal Steel (down 4.35%); Maruti Suzuki (down 2.42%); Sterlite Industries (down 2.31%); Tata Motors (down 1.66%) and Tata Steel (down 1.48%).
The top two A Group gainers on the BSE were—Pantaloon Retail (up 9.60%) and United Spirits (up 8.89%).
The top two A Group losers on the BSE were—Essar Oil (down 5%) and Jindal Steel (down 4.35%).
The top two B Group gainers on the BSE were—United Breweries Holdings (up 19.97%) and Lambodhara Textiles (up 19.96%).
The top two B Group losers on the BSE were—Rama Pulp and Paper (down 15.61%) and Koa Tools India (down 11.11%).
Out of the 50 stocks listed on the Nifty, 23 stocks settled in the positive. The top gainers were Kotak Mahindra Bank (up 3.17%); BHEL (up 2.70%); HUL (up 2.29%); Cipla (up 2.18%) and ITC (up 2.09%). The main laggards were Jindal Steel (down 4.70%); Cairn India (down 3.02%); Jaiprakash Associates (down 2.72%); Sterlite Ind (down 2.65%) and Axis Bank (down 2.49%).
Markets in Asia were mixed on concerns that Greece and Spain would face difficulties in being eligible for the fresh bailout funds. Investors also appeared cautious ahead of a crucial meeting between German chancellor Angela Merkel and European Central Bank (ECB) president Mario Draghi in Berlin.
The Hang Seng added 0.02%; the Jakarta Composite gained 0.62%; the KLSE Composite rose 0.38% and the Nikkei 225 settled 0.25% higher. Among the losers, the Shanghai Composite declined 0.19%; the Straits Times shed 0.03%; the Seoul Composite dropped 0.60% and the Taiwan Weighted lost 0.44%.
At the time of writing, the key European markets were down between 0.03% and 0.39% and the US stock futures were marginally in the green.
Back home, foreign institutional investors were net buyers of shares totalling Rs1,595.72 crore on Monday. On the other hand, domestic institutional investors were net sellers of equities aggregating Rs1,156.45 crore.
Hotel Leelaventure has received a 24-month moratorium for the outstanding principal amount of Rs3,000 crore it borrowed from a consortium of 17 banks, as part of the corporate debt restructuring (CDR) it had applied for. The hospitality major has also been given a 23-month moratorium for the interest portion. The total interest, at 11% per annum, will be converted into Funded Interest Term Loan (FITL) and need to be serviced from January 2014. The stock gained 1.71% and closed at Rs29.70 on the NSE.
Godrej Consumer Products (GCPL) has entered into a pact for exclusive rights to include the hair extensions business in Kenya and exports to other East Africa geographies in its partnership with the Darling Group. The transaction is expected to close after obtaining the necessary regulatory approvals. The Godrej Darling business will include about 65% of the overall Darling Group business. GCPL advanced 1.75% to settle at Rs675 on the NSE.
UK’s Cairn Energy plc today said it has sold 8% stake in Cairn India for a net realisation of about $910 million. Following the sale, Cairn Energy retains about 10% shareholding in Cairn India, the company said in a press statement here. The stock tanked 3.02% to settle at Rs335.10 on the NSE.
