| The Nifty retreated after seeing consolidation throughout the session and did not continue yesterday's late trade rally. The sell-off in technology, banking, realty, telecom and FMCG stocks along with heavyweight Reliance Industries pushed the Nifty below the 5,000 mark on closing basis, after five sessions of trade. However, metal stocks bucked the trend on the back of rally in base metals on Tuesday. The market opened on a positive note following positive global cues but in the second half its erased early gains and traded with extreme volatility. Indices slipped further in the last half an hour of the trade. Asian markets ended higher; Hang Seng was up 2%. Nikkei, Straits Times and Taiwan Weighted gained 0.9-1.1% while Kospi was flat. European markets and US index futures were marginally positive, at the time of writing this report.
Telecom stocks also continued to see selling for the third day in a row. Reliance Communication was down 2.31% and Idea Cellular down 1.24%. Bharti Airtel fell 0.29% and Tata Teleservices down 0.15%. Amit Dalal of Amit Nalin Securities said there were two big forces for the market today. One was the fact that rupee had strengthened so much over the last two days. "Therefore one felt that the FII flows will move the markets up even further. And I do believe that if the rupee remains strong you will see all the FII selling that has taken place or any funds which were on the sidelines comeback again because it is impossible to leave the market when the market’s currency starts strengthening." "But on the other side we have two sectors which have given way to changing fundamentals which may not be completely in their favour; one is telecom and second is technology because of the improving currency. Therefore there has been a shift in portfolio of moving away from these two sectors towards FMCG and Capital Goods. If you see both these have been the star players today." The 30-share BSE Sensex slipped 151.88 points or 0.9%, to close at 16,806.66, after seeing a range of 16,764.07-17,120.56. The 50-share NSE Nifty shut shop at 4985.75, down 0.83% or 41.65 points. It touched an intraday high of 5,077 and low of 4,972.95. Continued on the next page.... _PAGEBREAK_ Vijay Bhambwani of bsplindia.com said would term it as consolidation rather than weakness. "As long as Nifty remains above 4,770 levels, the bulls are still in charge, the bull is alive and kicking and the market will go up to the 5,200 or 5,250 levels." Volumes remained above Rs 1 lakh crore mark today as well. Total traded turnover was at Rs 1,08,648.68 crore. This included Rs 21,015.39 crore from the NSE cash segment, Rs 81,030.16 crore from the NSE F&O and the balance Rs 6,603.13 crore from the BSE cash segment. Banking was another sector, which dragged the markets lower. SBI, ICICI Bank and Axis Bank were down 1.9-2.7%. However, PNB was up 2.5%. Bank of Baroda and HDFC Bank gained 0.7-1%. In the FMCG space, Godrej Consumer was down 2.2%. HUL, ITC and Dabur India were down 0.7-0.9%. Auto stocks like Amtek Auto and Maruti Suzuki fell 4-5%. M&M, Bharat Forge and Ashok Leyland declined 1-1.8%. Tata Motors was down just 0.14%. In the oil & gas space, Reliance Industries tumbled 1.6%. ONGC was down 0.40% while HPCL gained 0.66%. Power stocks like Suzlon Energy, Reliance Power, GMR Infra and Reliance Infrastructure lost 1-2%. Power Grid Corp was down 0.41%. However, Lanco Infratech and Torrent Power went up 4-5%. GVK Power, Tata Power and NHPC were up 0.5-1%. Realty stocks like DLF slipped 0.77% and Unitech down 0.20%. In the healthcare space, Ranbaxy Labs was down 2.12% while Lupin, Aurobindo Pharma, Divis Labs, Cipla, Glenmark and Dr Reddys Labs gained 1-5%. Sun Pharma rose 0.34%. Capital goods stocks like Punj Lloyd and BHEL were up 1.5-1.9% while L&T declined 0.20%. The broader indices outperformed the benchmark indices. The BSE Midcap Index was up 1.4% and the Smallcap Index up 0.46%. The market breadth turned mixed in late trade. About 1,460 shares advanced while 1393 shares declined on the BSE. Nearly 358 shares remained unchanged. In the midcap space, Piramal Healthcare, Titan Industries, Sintex India, Godrej Industries and Gujarat NRE Coke were up 6-10% while Mphasis, Amtek Auto, Asian Star, Rolta and MindTree fell 3.5-6%. In the smallcap space, Zenotech Labs locked at 20% upper circuit. In Daiichi-Zenotech case, SAT (Securities Appellate Tribunal) favoured Zenotech Labs minority shareholders. SAT told Daiichi to make open offer at Rs 160/share. Daiichi made open offer at Rs 113.60/share. Zenotech had approached SAT for revision of open offer price. Henkel India, Asahi India, SpiceJet and Electrosteel gained 8-10% while Alkali Metals lost 13.58%. 3i Infotech, UB Holdings, IVR Prime and Jindal Worldwid were down 5-5.5%. Continued on the next page... _PAGEBREAK_ Nifty below 5K; TCS, Infy, Wipro, ICICI Bank, SBI, RIL drag At 15:11 hours IST, the Nifty slipped further and was trading below the 5,000 mark with some volatility. Banking and technology stocks extended the losses. FMCG, telecom, select auto and power stocks were also under pressure. However, buying continued in metal stocks. BHEL, PNB, HDFC Bank, Cipla, Tata Motors and Sun Pharma were the other gainers. The Sensex was down 107 points at 16,851 and the Nifty was down 31 points at 4,996. The market breadth also reduced its gap; about 750 shares advanced while 511 shares declined on the NSE. The BSE Midcap Index was up 1.7% and the Smallcap up 0.9%. On the global front, European markets were flat in trade. TCS, Infosys, Reliance Industries, Wipro, SBI, ICICI Bank, Maruti and Reliance Communication slipped 1.5-4.5%. However, Sterlite, SAIL, BHEL, HDFC Bank, PNB, Tata Steel and Hindalco were up 1-6%. Sensex below 17K amid volatility; midcaps outperform At 13:57 hours IST - the Sensex was extremely volatile as traders looked cautious at current levels and there was lack of European cues. Buying in capital goods, metal, realty and select power stocks along with Tata Motors and HDFC Bank was helping the markets. However, selling continued in technology, telecom, FMCG and select banking stocks, which kept the markets marginally down. The Sensex was down 57 points, to 16,901 and the Nifty fell 19 points, to 5,007. The broader indices remained outperformers, went up 1.4-2%. The Nifty October future was trading with 11 points discount. About 863 shares advanced while 376 shares declined on the NSE. The BSE Consumer Durable index outperformed other indices, shot up over 5%. Titan Industries, Gitanjali Gems and Videocon Industries were up 5.5-9.5%. Rajesh Exports rose 3.19%. Metal stocks like SAIL and Sterlite jumped 5-6%. Tata Steel and Hindalco were up 3% each. Capital goods stocks like BHEL was up 3% and L&T up 0.7%. In the realty space, DLF gained 0.5% and Unitech was up 1.4%. Technology stocks were down on the back of rise in rupee and ahead of Infosys Q2 numbers on Friday. Wipro, TCS and Infosys fell 3% each. HCL Tech was down 0.8%. Telecom continued its downtrend for third day in a row. Bharti Airtel slipped 1.4%, Reliance Communication down 2.5% and Idea Cellular down 1.2%. Banking stocks like SBI and ICICI Bank fell 0.9% each. Among others, HUL, Maruti and Grasim slipped 1-2.5%. Top percentage gainers - Elnet Tech and, Zenotech Labs and Amrit Banaspati surged 20% each. High Energy, Glory Polyfilms, Yes Bank, Onward Tech, Maxwell Ind and Novopan gained 10-16%. Top percentage losers - Omkar Overseas, Associated Alcohol, Bang Overseas, Hydro SandS Ind, Arvind Chemical, Aksh Optifibre, RPG Cables, Excel and IVR Prime fell 5-10%. Nifty erases early gains; technology, telecom drag At 12:23 hours IST, the Nifty wiped out nearly all its early gains and was trading marginally higher with volatility. Technology, telecom and select private banking stocks along with Maruti and HUL were witnessing selling pressure. However, buying continued in metal, capital goods, oil & gas and private power companies' shares. Technology stocks like TCS, Infosys and Wipro fell 3% each, ahead of Infosys Q2 numbers on Friday and rise in rupee was another reason. In the telecom space, Bharti and Reliance Communication slipped 1.5-2%, which declined for third straight day. The Sensex was down 25 points, to 16,933 and the Nifty down 8 points, to 5,019. The broader indices were up 1.5% each. About 951 shares advanced while 286 shares declined on the NSE. In the capital goods space, BHEL and L&T gained 1.5-3%. Metal stocks like Sterlite, SAIL, Tata Steel and Hindalco were up 2-5%. On the global front, European markets were down 0.4% each in early trade. In the midcap space, Titan Industries, Godrej Industries, Gammon Infra, Bannariamman and Lanco Infratech were up 5-8% while Asian Star, Mphasis, Rolta, Tech Mahindra and Federal Bank fell 2-10%. In the smallcap space, Zenotech Labs locked at 20% upper circuit. In Daiichi-Zenotech case, SAT (Securities Appellate Tribunal) favoured Zenotech Labs minority shareholders. SAT told Daiichi to make open offer at Rs 160/share. Daiichi made open offer at Rs 113.60/share. Zenotech approached SAT for revision of open offer price. Suraj Stainless, Gitanjali Gems, Premier and Consolidated Construction gained 7-8% while IVR Prime, Jindal Worldwid, ABG Shipyard, Amtek India and Sagar Cement slipped 4-5%. Sensex holds 17K; metals, cap goods, oil & gas, realty up At 12:02 hours IST, the Sensex remained on the higher side on the back of buying interest in metal, capital goods, oil & gas, realty, power and banking stocks. However, selling in technology and telecom stocks along with Maruti and HUL capped the gains to some extent. The Nifty was trading above the 5050 level and the Sensex was holding the 17,000 mark. On the global front, Asian markets were witnessing buying interest. Hang Seng rose 1.9%. Nikkei, Straits Times and Taiwan went up 1% each. Jakarta and Kospi were flat. In commodities, Gold was trading at $ 1041/ounce, up just 0.14%. Gold ETFs were buying the yellow metal. Base metals like Aluminium, Copper and Lead gained 0.4-0.7%. Weak dollar and firm equities were supporting the commodities prices. Indian rupee was trading at 46.80 per dollar. The Sensex was up 114 points at 17,073 and the Nifty rose 35 points to 5,063. The broader indices moved up further and continued to outperform the benchmark indices, up 1.8-2%. About 1,036 shares advanced while 204 shares declined on the NSE. Nifty above 5050; broader indices outperform, IT dips At 10:47 hours IST, the Nifty was trading higher though it came off a bit from its day's high. Shares of oil & gas, metal, capital goods, banking, realty and select power companies were supporting the markets to stay on the higher side. However, sellling in technology stocks ahead of Infosys quarterly numbers on Friday and rise in Indian rupee was also putting pressure on the stocks. On the global front, Asian markets continued to trade higher. Nikkei, Hang Seng and Straits Times went up 1-2%. Kospi and Taiwan gained 0.3-0.6%. The Sensex was up 110 points at 17,068 and the Nifty was up 35 points at 5,062. The broader indices were outperforming the benchmark indices, up 1.5% each. The market breadth was positive; about 977 shares advanced while 209 shares declined on the NSE. The Nifty is expected to hold the 4,800-5,200 range for sometime now, believes Amit Khurana, Co-Head - Institutional Equities Head, Research at Mangal Keshav. “Closer to 5,200, the concerns on valuations start emanating dominating the proceedings,” he said. He added that the inter-sector rotation will keep happening. "That’s where the action will be." In the largecaps, Sterlite Industries, BHEL, Hindalco, Jaiprakash Associates, Tata Steel, SAIL and Unitech were up 3-5%. However, TCS, Infosys and Wipro were down 2-3%. Maruti Suzuki and HCL Tech fell 1-1.5%. In the midcap space, Gammon Infra, IRB Infra, HOEC, Patel Engg and Bannariamman gained 4.5-9% while Mphasis, Asian Star, Info Edge, Tech Mahindra and Rolta slipped 1-4%. In the smallcap space, Gitanjali Gems, Suraj Stainless, Henkel India, Gujarat Ind Power and Resurgere Mines surged 6-7.5% while Amtek India, Prime Property, IVR Prime, Swaraj Mazda and Orissa Sponge fell 3-4.5%. Sensex above 17K on positive global cues; metals rally The Sensex started the day on a positive note following positive global cues and continued Tuesday's late trade rally. Metal stocks rallied on the back of surge in base metals' prices. Telecom bounced back on short covering. Oil & gas exploration stocks were up as crude moved up further. At 9:56 am, the Sensex was up 119 points at 17,079 and the Nifty was up 34 points at 5,061. The CNX Midcap rose 69 points, to 6,683, as about 700 shares advanced while 77 shares declined on the NSE. Among the frontliners, SAIL, Sterlite, Hindalco, Tata Steel, BHEL, L&T, Siemens, Cairn India, ITC, Bharti Airtel, Idea, Suzlon Energy, Unitech and Reliance Industries were the gainers in the early trade. However, Infosys was down 2% ahead of its Q2 numbers on Friday. TCS and Wipro were down too on profit taking. BPCL was down. Midcap space: Omnitech shot up 6% on fund raising plan. The board approved raising funds not exceeding $50 million (Rs 240 crore) via ADR/GDR/FCCB/QIP. IRB Infrastructure went up 4%. Pyramid Saimira (it denied reports of RBD Group buying 40% stake in company and production arm), Gitanjali Gems (acquired 100% stake in Alliance Jewelleries), UCO Bank and Raymond gained 4-5%. Ultratech Cement was up 2%. Global Cues: Asian markets were trading higher. Hang Seng was up 1.7%. Nikkei and Straits Times went up 1% each. Kospi and Taiwan Weighted were up marginally. SGX Nifty was up 0.6%. The US markets rallied for second day on news of interest rate hike for the first time in G20 countries since crisis begin. US Dollar continued to weaken and was helping commodities to gain. The Dow Jones Industrial Average gained 1.4% or 131.5 points at 9,731. The S&P 500 gained 1.4% or 14.2 points at 1,055 and Nasdaq up 1.7% or 35.4 points at 2,104. Commodities: Reuters CRB Index was at 2 1/2 week highs. Crude gained for third day and settled up 0.8% at $70.88/bbl. Gold gained 2.2%, hits record high at $1045/ounce. It surpasses 2008 high of $1034/ounce. Gold was up 20% while Dollar Index was down 14% since the March lows. Base metals gained on weak USD. Copper was up 3%, Zinc up 2.5%, Lead up 3% and Aluminium up 1%. Baltic Dry Index rose 3.3%. Market cues: -Rupee at over 1-year high on hopes of continued strong inflows & offshore market arbitrage -FIIs net sell USD 50 million in equities on October 5 -NSE F&O Open Int up Rs 2141 crore at Rs 90,663 crore -FIIs net sell Rs 157 cr in cash markets on October 6 (prov) -DIIs net sell Rs 767 cr in cash markets on October 6 (prov) -FIIs net sell Rs 588 cr in F&O on October 6 F&O cues: -Futures Open Int up by Rs 801 crore -Options Open Int up by Rs 1340 crore -Nifty Futures up 0.5%, Futures Open Int unchanged -Nifty Futures trading at 12-point prem -Nifty Open Int PCR stays at 1.35 -Nifty IVs at 25-28% -Nifty Puts add 10.9 lakh shares in Open Int -Nifty Calls add 5.7 lakh shares in Open Int -Nifty 4900 Call adds 4.4 lakh shares in Open Int -Nifty 4900 Put adds 4.2 lakh shares in Open Int -Nifty 4800 Put adds 2.1 lakh shares in Open Int -Nifty 5000 Put sheds 5.9 lakh shares in Open Int -Stock Futures adds 3.5 cr shares in Open Int | |||||||||||||||||||||||||||||||||||||||||||||
Wednesday, October 7, 2009
Nifty closes below 5K amid volatility; tech, banks drag
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