Sensex closes lower; banks, IT, metals drag, pharma rallies

The Sensex closed lower on the first day of October series, after seeing consolidation throughout the session. Fall in technology, banking, telecom and metal companies' shares kept the markets nervous through the day. However, pharma and oil & gas stocks bucked the trend and remained supportive to the benchmark indices.

Dipan Mehta, Member of BSE/NSE said uptrend was showing signs of fatigue, so the markets would consolidate at current levels. "The kind of selling which comes around 5000 level seems to suggest that maybe this sideways to slightly declining trend would be more perceptible going forward. One would get a clear-cut direction sometime around middle of October when we are just about entering the earnings season. But for the time being, the markets will consolidate at these levels and maybe in the immediate short-term you could see them correcting given that we have not seen any spectacular move above from these levels."

The 30-share BSE Sensex closed at 16,693, down 88.43 points or 0.53%, after seeing day's high/low of 16,812.02 and 16,613.22. The 50-share NSE Nifty was down 0.55% or 27.60 points, to settle at 4958.95, after trading in a range of 4931.25-4994.35.

Global cues were also a bit of on the negative side. Asian markets closed lower; Nikkei lost 2.6%. Jakarta fell 1% and Shanghai down 0.53%. Hang Seng, Straits Times and Kospi were marginally down while Taiwan gained 0.3%. The US markets were down on Thursday, after disappointing existing home sales data and crude fall another 4% for second day running. However, European markets and US index futures were flat, at the time of closing of Indian equities.

The broader indices outperformed the equity benchmarks and gained 0.6%-0.9%, as market breadth remained positive. About 1,678 shares advanced while 1,199 shares declined on the BSE. Nearly 330 shares remained unchanged.

In the midcap space, National Fertilisers shot up 17.65%. JM Financial, GTL Infra, Aurobindo Pharma and IDBI Bank gained 8-10% while JSW Steel, Welspun Gujarat, Info Edge, Parsvnath and MRF fell 3-4%.

In the smallcap space, Indian Hume Pipe rose 19.70%. Whirlpool, Vikas WSP, Madhucon Projects and Escorts went up 10-14% while KGN Industries, PVP Ventures, Sadbhav Engg, Aptech and Prime Property slipped 4-5%.

Top percentage gainers - Omkar Overseas jumped 20%. Richa Industries, Insecticides India, Shiva Texyarn and Bhagwati Banquet moved up 16-18%.

The market has seen total turnover of Rs 82,671.29 crore. This included Rs 17,013.31 crore from the NSE cash segment, Rs 59,792.44 crore from the NSE F&O and the balance Rs 5,865.54 crore from the BSE cash segment.


Continued on the next page... _PAGEBREAK_
Sensex southbound; TCS, Infy, ICICI Bk, SBI, Bharti drag

At 15:04 hours IST, continuous selling in shares of technology, telecom, banking, metal and select auto companies was putting pressure on the Sensex. However, buying in oil & gas and pharma stocks capped the losses to some extent.

Among the broader indices, the BSE Midcap Index rose 0.4% and the Smallcap Index was up 0.8%. About 1,622 shares advanced while 1,238 shares declined on the BSE. Nearly 347 shares were unchanged.

The Sensex was down 87 points at 16,694 and the Nifty was down 30 points at 4,956. The Nifty October futures were trading with 4-6 points premium.

Among the frontliners, Tata Steel, Hindalco, TCS, ICICI Bank, Infosys, HCL Tech and SAIL were down 2-3.5%. However, Sun Pharma surged nearly 6%, Ranbaxy up 4% and Cipla up 3%. Reliance Industries, ITC, ONGC, DLF and BPCL were up 0.5-1.7%.

Top percentage gainers - Indian Hume Pipe, Omkar Overseas and Shiva Texyarn surged 20% each. National Fertilisers, Bhagwati Banquet and Insecticides were up 12-16%.

Continued on the next page... _PAGEBREAK_
Nifty marginally weak; RIL, Sun Pharma, Ranbaxy outperform

At 14:20 hours IST, though the Nifty showed some recovery from its day's low, it was still trading marginally lower as selling in technology, telecom, metal and banking stocks was putting pressure on the indices.

However, buying in oil & gas, pharma, realty, select FMCG and power stocks capped the losses to some extent.

The Sensex was down just 42 points at 16,738 and the Nifty was down 16 points at 4,970. However, the broader indices continued to outperform the benchmark indices, up 0.5-1%. About 1648 shares advanced while 1198 shares declined on the BSE. Nearly 361 shares were unchanged.

In the largecaps, Ranbaxy Labs and Sun Pharma were up 3-4%. Reliance Industries, ITC, BPCL and Cipla gained 1-2%. However, TCS, Bharti, Infosys, ICICI Bank, Wipro, SAIL, SBI, Tata Steel, HDFC Bank and Reliance Communication were down 1-2.5%.

In the midcap space, JM Financial, Aurobindo Pharma, Kingfisher Airlines, GTL Infra and Motherson Sumi went up 7.5-10% while Welspun Gujarat, JSW Steel, Parsvnath, Asian Star and Blue Dart fell 2.5-4%.

In the smallcap space, Indian Hume Pipe, Whirlpool, GRUH Finance, Halonix and Apar Industries moved up 10-15% while KGN Industries, PVP Ventures, Century Plyboard, Aptech and Sadbhav Engg slipped 4-5%.

Sensex down over 100 pts; tech, metals, banks slip

The Sensex was trading weak on the back of selling in technology, metal, telecom and banking stocks. However, pharma, realty, power and oil & gas stocks were trading with good gains. Infosys, ICICI Bank, L&T, TCS and Bharti Airtel were negative contributors to the bourses.

At 13.30 hrs IST, the Sensex was down 95.18 points or 0.57% at 16686.25, and the Nifty down 25.35 points or 0.51% at 4961.20.

About 1755 shares advanced while 1071 shares declined on the BSE. Nearly 381 shares were unchanged.

Surprised by yesterday’s market moves, UR Bhat, Managing Director of Dalton Capital Advisors, says that valuations are not supporting the rally in the market. “Investors are on the liquid end of the market to exit on correction as most companies have not done well post recent qualified institutional placements (QIPs).” He feels there is a lot if trepidation on exit policy and interest rates, as the market has not factored higher interest rates. He expects the rates to rise by end of the year, which will result in the markets falling 10-15%. He sees a turnaround in mid-tier realty in 12-18 months.

Top losers on the Sensex were TCS at Rs 587.70 down 1.95%, Tata Steel at Rs 503.50 down 1.88%, Hindalco at Rs 126.60 down 1.86%, Infosys at Rs 2,243.80 down 1.81% and Sterlite Ind ar Rs 749 down 1.71%.

Top gainers on the Sensex were Sun Pharma at Rs 1,253 up 2.31%, ONGC at Rs 1,158 up 0.81%, DLF at Rs 427.50 up 0.68%, ITC at Rs 233.80 up 0.60% and Maruti Suzuki at Rs 1,641 up 0.49%.

Top gainers on the BSE Midcap - JM Financial, Motherson Sumi, GTL Infra, Kingfisher Air and United Brewerie were up 6-10%.

Top gainers on the BSE Smallcap - Indian Hume Pip, Surana Ind, Halonix, Swaraj Engines and Whirlpool were up 10-12%

Nifty consolidates; RIL, ONGC, NTPC up, TCS, Bharti dip

At 12:41 hours IST, the Nifty was consolidating at current levels. On the one side, heavyweights like Reliance Industries, NTPC, ONGC, DLF, ITC, Ranbaxy and Sun Pharma were supporting the markets. However, selling in heavyweights like TCS, Bharti Airtel, Infosys, Wipro, ICICI Bank, HDFC Bank and SBI capped the gains.

The Nifty was down 10 points, to 4,976 and the Sensex down 29.5 points, to 16,751. The market breadth was positive; about 1,926 shares advanced while 911 shares declined on the BSE. Nearly 370 shares were unchanged.

On the sectoral front, oil & gas, power, pharma and realty stocks were witnessing buying interest while technology, banking, metal and select telecom stocks dragging the indices.

Sources said Temasek sold 13.49% stake in Fame India via block deal. Fame India was up 5%.

Airline companies like Jet Airways was up 6.78%, Kingfisher Airlines up 8.54% and SpiceJet up 4%.

Hotel stocks like Advani Hotels, Hotel Leela, Indian Hotels, Kamat Hotels, Royal Orchid and Viceroy Hotels gained 4-5%. Asian Hotels, EIH, EIH Associated Hotel, Oriental Hotels and Taj GVK Hotels went up 0.7-1.7%.

Top percentage gainers - Omkar Overseas shot up 20%. Bhagwati Banquet, Indian Hume Pipe, Premier Energy, Halonix, Man Aluminium, Hitech Plast and Surana Industries were up 12-18%.

Top percentage losers - JMT Auto, Trent (W), NK Industries, Transpek, Nicco Parks, Hi-Tech Gears, AXIS IT&T, PVP Ventures, Solectron EMS and Piramal Glass were down 5-8%.

Sensex weak amid volatility; broader indices outperform

At 11:49 hours IST, the Sensex was flat in trade and was witnessing some volatility on the first day of October series. The sell-off in technology, metal and private banking companies' shares kept the benchmark indices marginally on the lower side. Bharti Airtel was also the loser.

However, buying in oil & gas, auto, pharma, power and select capital goods stocks was helping the markets to recover nearly all the early losses.

The Sensex was down just 30 points at 16,751 and the Nifty was down 9 points at 4,977. The broader indices continued to outperform the benchmark indices, gained over 1%. The market breadth improved further; about 933 shares advanced while 303 shares declined on the NSE.

In the oil & gas space, IOC, BPCL, HPCL and Reliance Industries were up 1-2%. ONGC and Cairn India went up 0.4-7%.

Pharma stocks like Dr Reddys Labs shot up 6.14%. Dishman Pharma, Aurobindo Pharma, Ipca Labs, Ranbaxy Labs, Biocon and Lupin were up 3-4%. Wockhardt, Glenmark, Cipla, Piramal Health and Sun Pharma gained 1-2%.

In the power pack, Torrent Power, GVK Power, Power Grid Corp, Reliance Power, NHPC, Lanco Infratech, NTPC and GMR Infra went up 0.5-1.7%. Reliance Infrastructure, Suzlon Energy and Tata Power were marginally in the green.

However, technology counters like HCL Tech, TCS, Infosys and Wipro fell 1-2%.

Metal stocks like Sesa Goa lost 4%. JSW Steel, Hindalco, Sterlite Industries, Tata Steel, Jindal Steel and SAIL were down 0.6-1.6%.

Strides Arcolab gained 6%, as it has launched its anti H1N1 drug – Starflu in retail. Starflu is the generic version of drug Oseltamivir and is available in 75 mg capsules in a strip of 10’s, the MRP for which is Rs 460 per strip.

Videocon Industries jumped over 7% on huge volumes, which increased 201.49%, to 1,305,633 shares, compared to its 5-day average of 433,055 shares.

In the smallcap space, UB Holdings, Surana Industries, Apar Industries, Swaraj Engines and Indian Hume Pipe gained 10-13%.

In the midcap space, Kingfisher Airlines, GTL Infra, Motherson Sumi and United Breweries were up 7-8%.

Nifty recovers; oil & gas, power, pharma support

At 10:36 hours IST, the Nifty recovered from the day's low and was trading near its previous closing value. Oil & gas, power, capital goods, pharma and select auto stocks helped the markets in recovery. However, selling continued in technology, banking and metal stocks. Bharti and Tata Motors were the other losers.

The broader indices were outperforming the benchmark indices; gained 1% each. About 823 shares advanced while 335 shares declined on the NSE.

The Sensex was down 36.5 points at 16,744 and the Nifty was down 9 points at 4,977. The Nifty October futures were trading with 8 points premium.

In the midcap space, Videocon Industries shot up 7%, as it is looking to spin off its oil & gas exploration Wahoo field block into separate company and then monetize it.

Motherson Sumi gained 7%. The management told CNBC-TV18 that they expect european operations to break~even very soon.

Spice Communication surged 5.54%, as the company received shareholder approval for merger with Idea.

Carborundum rose 66% and Berger Paints up 4.94%.

However, Welspun Gujarat, Allcargo Global, Parsvnath, Atlas Copco and JSW Steel fell 1-3%.

In the smallcap space, Surana Industries, Visa Steel, Swaraj Engines, Shrenuj & Company and Vikas WSP were up 7-13% while KGN Industries, PVP Ventures, HBL Power, WABCO-TVS and Panyam Cements slipped 2-5%.

Sensex retreats on weak global cues; metals decline

The Sensex retreated in the opening trade on the back of weak global cues and fall in commodities. The Nifty tested 4950 in the early trade. Metal, realty and technology stocks were seeing buying interest.

At 9:56 am, the Sensex was down 102 points at 16,679 and the Nifty fell 27 points at 4,958. The broader indices were down marginally. About 249 shares advanced while 441 shares declined on the NSE.

Among the frontliners, Hindalco, Sterlite Industries, Tata Steel, ICICI Bank, HCL Tech, Cairn, Tata Motors, TCS and Infosys were the losers in the early trade.

Oil marketing companies were seeing buying interest due to fall in crude prices. BPCL gained nearly 3%. NTPC, HUL and M&M were the other gainers.

Midcap space:

In the pharma space, Strides Arcolab shot up 6.5% and in the realty pack, IVR Prime was up 5%. Gujarat NRE Coke was up 1.3%.

Mahindra Satyam went up over 2%, as GE extended multi-million dollar contract for 3 years.

Dhanlakshmi Bank gained 3% and PVR was up 3.5%.

However, Sesa Goa lost over 3%. Its $500 million FCCB issue opens.

Global Cues:

Asian markets were trading lower. Nikkei lost 2.6%. Shanghai, Jakarta and Kospi fell 1.4% each. Hang Seng and Straits Times were down 0.3-0.8%. However, Taiwan was flat.

The US markets fell after disappointing existing home sales data and crude fall another 4% for second day running. The Dow Jones Industrial Average ended down 41 points at 9,707, fell 98 points from day's high of 9,805.

The Nasdaq Composite ended down 24 points at 2,108, fell 35 points from day's high of 2,143. The S&P 500 ended down 10 points at 1,051, fell 15 points from days high of 1,066.

Currencies:

The Dollar Index gained 1%, gains for third day.

USD appreciated 75 bps versus Euro at 1.4647.

Yes appreciated 67 bps versus USD at 90.65.

Pound depreciated 2.7% versus USD.

Commodities:

The Reuters CRB (Commodity Research Bureau) declined 2.1%. It was down 1% on Wednesday.

Crude declined 4.5% to $65.9/bbl, at 8-week lows.

Gold slipped 1.5% to make a low of $991/ounce, at 2-week lows.

Copper broke $6000/tonne and fell to 2-month lows.

Market cues:

-FIIs net buy USD 382.1 million in equity on September 23
-MFs net buy Rs 109.6 crore on September 23
-October series begins with Open Int of Rs 73,924 crore
-FIIs net buy Rs 1,061 crore on September 24
-DIIs net sell Rs 616 crore in cash markets September 24 (prov)
-FIIs net buy Rs 366 crore in F&O September 24

F&O cues:

-Nifty up 0.3%
-Nifty futures trade at 12-pt premium versus 9-pt premium
-Nifty IV at 23-27%
-Nifty October Open Interest PCR at 1.24 versus 1.18 at the start of Sept Series
-Nifty Puts add 52 lakh, Calls add 33 lakh shares in Open Int (Sept Data Excluded)
-Nifty October 4900 Put adds 16 lakh shares in Open Int
-Nifty October 5000 Call adds 8.9 lakh shares in Open Int
-Nifty October 4700 Put adds 8.8 lakh shares in Open Int
-Nifty October 4800 Put adds 7.2 lakh shares in Open Int
-Nifty October 4900 Call adds 7 lakh shares in Open Int

Rollover data:
-Rollovers take place smoothly with positive Roll cost in Nifty and most stock futures
-Second Strong expiry in terms of rollovers
-Market wide Rollover at 77% versus average of 75% in previous few expiries
-Nifty Rollover at 70 % versus average of 66% in previous few expiries