After the sustained rally over the last four trading sessions, the indices came under pressure in morning trades. Technology stocks led the decline and the Sensex slipped more than 100 points by early afternoon. However, recovery in other stocks helped the indices to pull back and close with marginal gain.
Sensex closed with gains of 12 points at 13190 and the Nifty gained 4 points to end at 3848. Nifty April futures closed at a discount of 21 points to the spot index.
The sharp fall in crude oil prices helped BPCL to rally 5.38 per cent
Select pharma stocks gained ground in afternoon trades, led by Sun Pharma which ended 4.65 per cent higher. Glaxo gained 2.5 per cent and Ranbaxy closed 1.82 per cent higher
HDFC gained 3.19 per cent on unconfirmed reports that the government would provide low cost funds from institutions like the World Bank to housing finance companies
FMCG stocks had another good day, once again led by ITC, which added 2.93 per cent. HLL closed 2 per cent higher
Tata Motors attracted good interest and added 2.54 per cent
VSNL was the other major gainer, adding 1.84 per cent.
Technology stocks gave up all their gains from yesterday as traders turned sceptical ahead of results announcements. Satyam was the worst performer, losing 3.7 per cent, while Infosys lost 2.38 per cent. Wipro gave up 2.34 per cent and TCS lost 1.63 per cent while HCL Tech closed 1.41 per cent lower
Among banks, PNB ended 1.28 per cent lower
Bajaj Auto was subdued throughout the session and lost 1.18 per cent
Dr. Reddy's remained weak and gave up 1.17 per cent
L&T and Gail India were the other losers among Nifty stocks
Global markets / crude oil
US markets were nearly unchanged yesterday, after the previous week's gains. Better than expected employment data, released towards the end of last week, helped ease concerns about the economy but dampened hopes of an interest rate cut.
The Dow and S&P 500 indices closed with marginal gains of over 0.05 per cent each yesterday. Technology stocks were subdued after last week's out performance and the NASDAQ ended nearly 0.1 per cent lower
Most Asian markets continued their up trend today as well. Shanghai was once again the best performer, adding nearly 1.35 per cent. Hong Kong and Singapore gained over 0.65 per cent each while Malaysia and Indonesia closed with gains of 0.6 per cent each
Japan lost 0.45 per cent and South Korea ended nearly 0.15 per cent lower while Thailand ended flat.
Crude oil prices saw one of the biggest intra-day declines in more than a year yesterday. Near month NYMEX futures lost nearly 4 per cent and closed at $61.51 per barrel yesterday. The commodity is trading with modest gains in European trades today.
Large-cap news flow
Suzlon Energy has hiked the offer price for acquiring German company RE Power to €150 per share. Suzlon has already acquired a 7.7 per cent stake in RE Power at this rate. The company has received a new order from the US for supplying 42 wind power generators.
The board of Tata Steel would meet next week to consider plans to raise equity funds to finance the Corus acquisition
Jet Airways has revived its bid to acquire Air Sahara, according to unconfirmed media reports. The acquisition price is likely to be around Rs1,800 crore, against the earlier Rs2,200 crore, as per these reports.
Mid-caps and small caps were unaffected by the volatility in large caps and remained firm throughout the session. The CNX Mid-cap index closed 58 points, or 1.18 per cent, higher at 4954. BSE mid-cap index gained 0.77 per cent and BSE small cap index closed 1.08 per cent higher.
Indiabulls Financial saw a major up move and closed 12.78 per cent higher
GKW and Easun Reyrolle ended at 20 per cent upper circuits while NRC and SRF closed at 10 per cent upper circuits
Amar Remedies, Everest Kanto, ITI, Moser Baer and Balaji Tele were among the other mid-cap gainers
Raj Rayon, Thiru Arooran Sugar, AI Champdany, Apar Industries, Mahindra Ugine, Transwarranty Finance, Geodesic Info, BBTC and Everest Industries were the major losers among mid-caps.
Mid-cap news flow
ABG Shipyard has won an order worth $139 million for building 4 bulk carriers for Essar Shipping
Subhash Projects has won new orders worth Rs309 crore for construction of power projects
Educomp has received a 3-year order worth Rs18.3 crore for providing computer aided training in schools in the state of Haryana. The company also said it has so far invested Rs2.5 Crore in Threebrix E-Services, which provides tutoring services, for a 76 per cent stake.
Vijay Textiles would acquire additional land for Rs5.1 crore for its expansion plans
Lumax Auto Tech has opened its new Rs23 crore plant to produce components for Bajaj Auto
Mysore Cements said the fire incident at one of its godowns has not affected production
Strides Arcolab would acquire a Chennai-based pharma company
Accel Frontline would offer technical helpdesk services to the customers of Trend Micro
The board of Brushman India would meet next week to consider a share issue
is planning to issue 10 lakh equity shares to
promoters at a price of Rs40 each
Speciality Papers has received an export order for 600 tonnes
Kesoram Industries has commenced production at its captive power unit in Karnataka
*Disclaimer: The author may have positions in some of the stocks specifically mentioned above at the time of writing this article. This analysis / report is only for the purpose of information and is not an investment advice. Readers are advised to consult a certified financial advisor before taking any investment decisions. While efforts have been made to ensure the accuracy of the information provided in the content the author or publisher shall not be held responsible for any loss caused to any person whatsoever.
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reports by Rex Mathew