Nifty ends with modest loss; ADAG, broader mkts outperform
05 Oct 2010
Equity benchmarks closed another session with modest losses after witnessing a consolidation for the entire session. The sell-off in financial, metal, FMCG and select technology companies' shares along with Bharti, NTPC, L&T, Tata Motors, DLF and ONGC pulled the markets marginally down in late trade.
However, Reliance Industries, BHEL, Infosys, Maruti, M&M, Bajaj Auto along with Anil Dhirubhai Ambani Group, cement and select power companies' shares were quite supportive, which capped losses.
Small correction was imminent after a huge rally upto 6200 on Nifty. Barring that, the bourses have been steadily moving up and Deven Choksey of KR Choksey Securities feels that it is definitely planning for a new high and that is where he sees larger amount of actions coming into the some of the frontline stocks. ''We will soon touch 6,300-6,400 very soon. The market has the appetite for buying some of the heavyweight stocks. You should be seeing more actions there.''
The 30-share BSE Sensex closed at 20,407.71, down 68.02 points or 0.33% and the 50-share NSE Nifty fell 13.65 points or 0.22% to settle at 6,145.80. However, the Nifty October futures' premium was widened today to 40 points during the day; it settled with 30 points premium, as per provisional data.
The broader indices outperformed benchmarks on Tuesday; the BSE Midcap was up 0.8% and Smallcap up 1.1%. Choksey feels that midcap stocks too may lead participation. ''Probably between 6,300-6,400 you would have majority of the upside completed in some of the index heavy constitutes and thereafter you should probably seeing those funds which are sitting on sidelines starting to pick up in some of the midcap stocks,'' he said.
Anil Dhirbhai Ambani Group companies' shares were the biggest gainers; Reliance Power shot up 4.5% and Reliance Capital up 4.2%. Reliance Communications and Reliance Infrastructure rallied 3% each. Reliance Broadcast Network and RNRL gained 5-5.8%.
