Volatile Sensex closes flat; metals, banks down, TCS up 2%
28 August 2012
Equity benchmarks managed to recover somewhat losses in late trade on Tuesday, but broader markets hit quite badly as the BSE Midcap and Smallcap indices fell 1% each compared to fall of 0.3% on the benchmarks.
The 30-share BSE Sensex fell as much as 108 points intraday because the parliament logjam due to CAG report continued today. The fall was also attributed to weakness in European markets as investors awaited the meeting of central bankers at Jackson Hole on Friday. Globally every market is still hopeful for some more action from central bankers to ease Eurozone credit crisis. France's CAC, Germany's DAX and Britain's FTSE were mixed.
But the market trimmed losses in late trade due to support by TCS, Reliance Industries and State Bank of India. Overall the market has been in a consolidation mode and it has been moving in a range of 5300-5400 ahead of expiry on Thursday. The Sensex slipped 47.10 points to close at 17,631.71 and the Nifty declined 15.65 points to 5,334.60.
Mithil Pradhan of Violet Arch Capital Advisors feels the Nifty might just end between 5300-5360 levels on settlement day.
Metals and mining stocks took huge beating today; the BSE Metal Index tanked 2.44% as Jindal Steel and Sterlite Industries were down 5% each. Tata Steel, Hindalco and Coal India moved down 1-3%.
Country's largest private sector lenders ICICI Bank and HDFC Bank fell 1.4% and 0.9%, respectively while their rival State Bank of India was down 0.16%.
State-owned oil & gas producer ONGC tumbled nearly 2% after the Comptroller and Auditor General said the company did not complete work in 74% of blocks and it made lesser discoveries versus Reliance and GSPC.
Among auto stocks, Tata Motors, Bajaj Auto, Hero Motocorp and Maruti Suzuki declined 0.5-1.65%.
Engineering and construction major Larsen & Toubro fell for the second consecutive session; it was down 2.5% today and 1.66% yesterday.
Technology stocks outperformed others and led the major support to the market. India's largest software services exporter TCS rallied 2.24% while its rivals Infosys and Wipro gained 0.5% and 0.7%, respectively.
Cigarette major ITC was up 1% and index heavyweight Reliance Industries went up 0.34%. Power producers NTPC and Tata Power jumped over 1.5%.
Healthcare company Sun Pharma moved up 1.7% as its subsidiary Caraco has received US FDA clearance to resume operations at its manufacturing facility and packaging sites in Detriot and Wixom, Michigan. Its rival Dr Reddy's Labs rose 1.5%.
In the second line shares, SKS Microfinance, Wockhardt and Mastek crashed 7-10% as the Bombay Stock Exchange will shift 74 stocks (including these stocks) into trade-to-trade segment with effect from August 31.
Textile stocks touched a 52-week low; Alok Industries plunged more than 18% while Arvind was down 4% and S Kumars Nationwide declined 1%.
Jain Irrigation, which hit a 3-year low and its DVR tumbled nearly 4%.
Anil Dhirubhai Ambani Group's stocks like Reliance Power, Reliance Infrastructure, Reliance Capital and Reliance Communications fell 1-2%. Reliance MediaWorks and Reliance Broadcast Network plummeted 5% each.
Educomp Solutions lost 6% and Onmobile Global declined 5%. HCL Infosystems rallied 20.5% on reports that the Lenovo may be buying promoter's stake in the company, but the company denied the same.
About 881 shares advanced while 1895 shares declined on the Bombay Stock Exchange.
Indian shares pared losses due to further upmove in Tata Consultancy Services. Reliance Industries, State Bank of India and Bharti Airtel bounced back. Even the European markets cut losses; France's CAC, Germany's DAX and Britain's FTSE were flat.
The 30-share BSE Sensex declined 15.64 points to 17,663.17 and the 50-share NSE Nifty fell 7.55 points to 5,342.70. The broader markets too trimmed losses from 1.7% to 1% as more than two shares declined for every share advancing on the Bombay Stock Exchange.
India's largest software services exporter TCS rallied over 2% while its rivals Infosys and Wipro were up 1% and 0.6%, respectively.
Index heavyweight Reliance Industries was up 0.5% while State Bank of India and Bharti Airtel were flat.
Drug producer Sun Pharmaceutical Industries gained 1.5% as its subsidiary Caraco has received US FDA clearance to resume operations at its manufacturing facility and packaging sites in Detriot and Wixom, Michigan. Its rival Dr Reddy's Labs rose 1.25% while Cipla fell 0.5%.
Shares of NTPC and Tata Power moved up 1.75% and 1.55%, respectively.
Metals stocks continued to reel under selling pressure. Sterlite Industries and Jindal Steel were down 5% each. Hindalco Industries, Tata Steel and Sesa Goa fell 2-3%.
Engineering and construction major Larsen & Toubro lost over 2% and Jaiprakash Associates tanked 3.56%.
The broader markets saw a big fall as the BSE Midcap and Smallcap indices dropped 1.7% each as compared to 0.5% decline in BSE Sensex and NSE Nifty in afternoon trade. About five shares declined for every shares advancing on the National Stock Exchange.
Capital goods, metals, banks, auto and oil & gas stocks were under pressure while technology, FMCG and power stocks outperformed.
The 30-share BSE benchmark fell 77 points to 17,601.79 and the 50-share NSE benchmark was down 27 points to 5,323.50.
Technology majors TCS and Infosys rose 1.6% and 1.1%, respectively while their rival Wipro gained 0.7%.
Cigarette major ITC extended gains to nearly 1% after the managment's strong outlook for FY13. Power producers NTPC and Tata Power were up 1.2% and 1.5%, respectively.
Metals stocks hit quite badly; Jindal Steel plunged 7% and Sterlite Industries was down 5%. Tata Steel tanked 2.5% and Hindalco tumbled 3.6%.
Engineering and construction major Larsen & Toubro dropped over 2%. Private sector lenders ICICI Bank and HDFC Bank plummeted 1% each while their rival State Bank of India was down 0.5%.
Oil & gas producers Reliance Industries and ONGC were down 1% each. Among auto stocks, Tata Motors, Bajaj Auto and Hero Motocorp moved down 1-2%; Maruti and M&M fell 0.5%.
Indian shares extended downward journey amid choppy trade, weighed down by metals, auto, capital goods, banks and oil & gas stocks. Majorly stocks related to companies, which involve in the list of coal scam disclosed by the Comptroller and Auditor General last week, have been witnessing selling pressure.
Jindal Steel, which crashed 5% yesterday, lost nearly 7% today. Sterlite Industries tanked 5% while Hindalco Industries and Tata Steel lost over 3%. Adani Enterprises, which hit a 52-week low of Rs 151.75, fell 3% amid large volumes while Reliance Power was down more than 1.6%.
ONGC slipped over 1% after the CAG said the company did not complete work in 74% of blocks. Company made lesser discoveries as compared to RIL and GSPC. State-owned oil & gas producer monetised only 2 of 56 offshore discoveries.
The 30-share BSE Sensex fell 73 points to 17,606 and the 50-share NSE Nifty was down 26.35 points to 5,323.9.
Country's largest private sector lender ICICI Bank went down 1.2% while its rivals HDFC Bank and State Bank of India were down 0.6-0.9%.
Engineering and construction major Larsen & Toubro lost 1.7% and state-owned power equipment manufacturer slipped 1%.
Index heavyweight Reliance Industries was down 0.7% and telecom operator Bharti Airtel moved down 0.5%.
Among auto stocks, Tata Motors and Bajaj Auto dropped 1% each while M&M and Hero Motocorp were down 0.5-0.7%.
Technology stocks remained on buyers' radar. Infosys gained 1.3% and TCS was up 1.7%; Wipro rose 0.7%.
Cigarette major ITC and state-run power producer ONGC were up 0.7% each. Tata Power topped the buying list with 2.3% gains.
On the global front, European markets were down 0.3-0.7% on profit booking.
The BSE Sensex and NSE Nifty remained lacklustre since early trade as the buying in capital goods, metals and private banks counterbalanced the fall in fast moving consumer goods, technology, healthcare and power stocks.
The 30-share BSE benchmark was down 19 points to 17,659.69 and the 50-share NSE benchmark declined 8 points to 5,342.05.
Private power producer Tata Power topped the buying list with 2.6% gains while state-run NTPC was up 1%.
Country's largest IT services exporters Tata Consultancy Services and Infosys gained more than 1%.
Public sector lender State Bank of India bounced back with 0.5% gains whereas private sector lenders ICICI Bank and HDFC Bank were down 0.2% and 0.7%, respectively.
Engineering and construction major Larsen & Toubro fell more than 1% while state-owned power equipment manufacturer BHEL declined 0.76%.
Jindal Steel remained top loser for the second consecutive session today, which lost more than 4% after losing 5% yesterday.
Among other metals and mining stocks, Tata Steel tanked 2% and Sterlite Industries plunged 3.6%. Hindalco Industries was down 1.7% and Coal India declined 1%.
Index heavyweight Reliance Industries lost 0.4% while auto stocks like Bajaj Auto and Tata Motors dropped 1% each.
The broader markets went down 0.5% each as decliners outnumbered advancers by 981 to 360 on the National Stock Exchange.
Indian equity benchmarks were trading marginally lower due weakness in banks, metals and capital goods stocks. Strengths in FMCG, power and technology shares helped restrict losses. Asian markets too were marginally lower.
The BSE benchmark declined 23 points to 17,655.94 and the NSE benchmark was down 12 points to 5,338.10, but the broader markets extended fall. The BSE Midcap and Smallcap indices fell 0.7%.
Private sector lenders HDFC Bank and ICICI Bank were down 1% and 0.4%, respectively while the State Bank of India was flat.
Metals stocks were largely under pressure on profit booking. Copper futures fell yesterday as investors are waiting for central banks' action to stimulate growth. Every market across the globe is waiting for speech by Federal Reserve chairman Ben Bernanke in bankers' meet at Jackson Hole on Friday.
Shares of Sterlite Industries and Jindal Steel crashed 3% each. Tata Steel was down 2% and Hindalco Industries slipped over 1%.
Commercial vehicle maker Tata Motors tanked 2% and index heavyweight Reliance Industries declined 0.5%.
Telecom operator Bharti Airtel and engineering and construction major Larsen & Toubro were down 1% each.
Country's largest software services exporters TCS and Infosys gained 1% and 1.5%, respectively. Cigarette major ITC was up 0.4% and state-owned oil & gas producer ONGC gained 0.5%.
Private power producer Tata Power topped the buying list with 2.2% losses. Shares of Maruti, NTPC and GAIL rose 1% each.
The 50-share NSE Nifty started off Tuesday trade at sub 5350 level amid consolidation as global markets too were in a consolidation mode ahead of Jackson Hole meet.
The BSE benchmark was down 2.33 points to 17,676.48 and the NSE benchmark declined 3 points to 5,347.20.
L&T, BHEL, JP Associates, Reliance Infrastructure, DLF, PNB, Bank of Baroda, Axis Bank, HDFC Bank, Kotak Mahindra Bank, Tata Motors and Bharti Airtel were under pressure in early trade.
Tata Power rallied 3%. TCS, Cipla, Sun Pharma, Ambuja Cements, ITC, Infosys and ICICI Bank were quite supportive.
The CNX Midcap Index was flat as the market breadth was neutral.
In the second line shares, Alstom rallied 2% as the company has received Rs 2,800 crore worth of contract from Power Grid.
Federal Bank fell 3%. CNBC-TV18 reported that HSBC Bank Mauritius may be selling 8.5 million shares of the bank via block deal, which may be worth approximately USD 65 million. The price range may be around Rs 393.35-405.75/share.
The Bombay Stock Exchange will shift 74 stocks to trade-to-trade segment with effective from August 31st. Among them are: Wockhardt fell 4% and SKS Microfinance tanked 11%. Heidelberg Cement slipped 3%.
MTNL, Delta Corp, Shree Renuka, UCO Bank, IVRCL, Suzlon and Adani Enterprises were down 1-2%.
Deccan Chronicle surged 4.5%. S Kumars Nationwide was up 3% and Dishman Pharma went up 2%. Jain Irrigation rose 1.6%.
HDIL and Apollo Tyres were up 0.5% each.
HCL Infosystems shot up 6% on reports that promoters may be offloading shares.