Tuesday, December 16, 2014

Nifty crashes by 165 points

Indian equities ended with heavy losses on Tuesday as the NSE Nifty plunged 165 points on all-round selling. The bears remained in complete control of the day's proceedings aided by negative global cues and worrying macro-economic data. 
 
Sentiment further took a hit after the Indian rupee sank to fresh one-year lows at 63.59, and was down 58 paise at around 63.52 per US dollar.
 
On the macro-economic front, India's trade deficit jumped to a fresh 18-month high at US$16.86 billion, mainly on account of six-fold jump in gold imports. US Crude Oil futures shed 2.5 per cent and broke below the $ 55-mark in intra-day deals today.
 
FIIs too seem to be on a selling spree ahead of the year-end holidays. As per data from the BSE site, the foreign investor net sold shares worth Rs 456 crore on Monday.
 
Given the multiple negative news flow, the market had an ominous start. The Sensex opened with a negative gap of 139 points at 27,181. The index could barely move an inch higher to touch the day's high at 27,199, before crashing to lower levels.
 
Relentless selling in banking, metal and energy stocks saw the BSE index fall below the 27,000-mark in a jiffy. The BSE index went on to slide to a near two-month low at 26,736 - down a whopping 584 points from the previous close.
 
The Sensex finally ended with a loss of 538 points at 26,781 - its biggest fall in the last 15-months. The BSE index had slumped 651 points on September 3, 2014. So far the index has shed 6.7 per cent (1,913 points) this month.
 
The NSE Nifty opened 47 points lower at 8,173, and plunged to a low of 8,053 in late trading session. The Nifty finally settled with a loss of 152 points at 8,068.
 
Apart from the three high-beta sectors mentioned above, selling was also clearly evident in auto, FMCG, pharma and realty shares. Bulls found solace in IT shares, which, traded on firm note owing to a fresh fall in the Indian Rupee.
 
The broader markets were also plundered heavily. The CNX Midcap index tumbled over 2.5 per cent to 11,826, while the Smallcap index nose-dived by 3.7 per cent to 4,927.
 
The breadth too was extremely bearish, with nearly seven declining shares for every advancing stock. Out of 1,733 stocks traded on the NSE, 1,356 declined and 202 advanced today.
 
Among sectoral indices - the CNX Metal and Realty indices pummeled over 4 per cent each to 2,506 and 194, respectively. The Bank Nifty and the Pharma index plunged 3 per cent each to 17,830 and 10,785, respectively. The Auto and the Energy indices were down around 2 per cent each. The CNX IT index, however, surged 1.5 per cent to 10,892.
 
ICICI Bank, ITC, SBI and HDFC collectively accounted for more than 55 per cent of the day's losses for the BSE index. These stocks dragged the BSE index lower by 286 points.
 
Sesa Sterlite was the biggest per cent age loser among the Nifty 50 stocks, down 7.5 per cent at Rs. 194. 
 
Dr. Reddy's plunged over 6 per cent to Rs. 3,152 on worries over the Russian crisis.
 
SBI, Hindalco and Bank of Baroda slumped over 5 per cent each to Rs. 295, Rs. 145 and Rs. 1,003, respectively.
 
Tata Power crashed 4.7 per cent to Rs. 80. DLF, ICICI Bank and Ambuja Cement also dropped over 4 per cent each to Rs. 139, Rs. 331 and Rs. 219, respectively.
 
Jindal Steel, Tata Steel, IDFC, ACC, HDFC, Hindustan Unilever and Coal India were the other major losers - down over 3 per cent each.
 
On the other hand, HCL Technologies zoomed 5 per cent to Rs. 1,560. TCS too rallied smartly by nearly 4 per cent to Rs. 2,450.
 
BPCL and Tech Mahindra jumped 1.7 per cent each to Rs. 647 and Rs. 2,536, respectively.
 
Elsewhere in the world, the US market ended on a negative note amid high volatility in the backdrop of falling Crude prices. The market are now awaiting minutes of the FOMC meet tomorrow for further direction on the economy.
 
In Asia, two of the major Asian market ended with huge losses even as Shanghai Composite index soared 2.3 per cent to 3,022. The Nikkei plunged 2 per cent to 16,755, and the Hang Seng tumbled 1.5 per cent to 22,671. Later in day, European market started trading on a quiet note - the FTSE and DAX were up 0.2-0.4 per cent each, while CAC has slipped 0.2 per cent. 

Monday, December 15, 2014

Markets end flat on closing

Markets opened with a big gap down, but indices did well to pare most of their losses with the Nifty finally ending flat. Besides global cues, macro data is also playing on the sentiment. The trigger was Wholesale Price Inflation in India hitting a zero level in November; the lowest in about five and half years. Inflation cooled on account of decline in prices of food, fuel and manufactured items. The Wholesale Price Index (WPI) based inflation was at 1.77 per cent in October and 7.52 per cent in November 2013.

The market started the day on a dismal note as indices slipped sharply in opening trade owing to sharp contraction in IIP numbers and weak global cues.

The BSE benchmark index, the Sensex, opened with a negative gap of over 200 points at 27,136, and soon dipped to a low of 27,105, Industrial output fell 4.2 per cent in October led by manufacturing sector, as against growth of 2.5 per cent in September. The manufacturing sector contracted by 7.6 per cent as against 2.5 per cent expansion on a month-on-month basis.

However, having been in a downtrend for the last two weeks, value buying emerged at lower levels, and the BSE index soon recouped most of its losses. The recovery was led by banking shares ahead of the WPI numbers. The market, however, remained a mere spectator to some stunning WPI numbers.

It may be recalled that CPI-based (Consumer Price Index) inflation also dropped to 4.3 per cent in November 2014 as against 5.52 per cent in October.

Back to the market, the Sensex recovered all the losses and rebounded into the positive zone to a high of 27,392 - up 287 points from the day's low. Strong gains in HDFC, HDFC Bank and ONGC helped the BSE index offset the losses owing to IT shares.

The IT stocks were under pressure as pace of the economic growth in the US remained unclear, following which Dow Jones cracked over 300 points on Friday. Also, earnings warning by TCS weighed on the sentiment.
 
The NSE Nifty plunged to a low of 8,153 in the opening trade, thereafter recovered and rallied to a high of 8,242 - up 89 points from the day's low. The Nifty finally settled four points lower at 8,220.

The broader market also ended in red. The CNX Midcap index slipped 0.5 per cent to 12,134, while the Smallcap index was down 0.4 per cent at 5,115.

Meanwhile, the Indian Rupee was quoted at fresh 10-month lows today. The Indian Currency shed as much as 60 paise and was down at 62.90 at 1545 hrs.

Elsewhere in Asia, the market ended with a negative bias following the weak US cues. The Nikkei slumped 1.6 per cent to 17,099, and the Hang Seng shed a per cent at 23,028. The Shanghai index was up 0.5 per cent at 2,953. However, the European market started the day on a positive note.

Among sectors - the IT and Realty indices plunged around 2 per cent each to 10,728 and 202.25, respectively. The FMCG index shed a per cent at 20,865. The Bank Nifty, however, ended 0.4 per cent higher at 18,373.

DLF tumbled nearly 5 per cent to Rs. 145, and was the major loser on the NSE. BPCL plunged 4.3 per cent to Rs. 639.

Tech Mahindra and TCS dropped around 3.5 per cent each to Rs. 2,493 and Rs. 2,365, respectively.

Sesa Sterlite and Jindal Steel slipped around 2 per cent each to Rs. 212 and Rs. 138, respectively.

HCL Technologies, Axis Bank, NDMC, Asian Paints, ITC and Hindustan Unilever were the other notable losers.

On the other hand, Kotak Bank zoomed to a fresh all-time high of Rs. 1,314 - up 5.3 per cent.

HDFC also rallied 5.3 per cent to Rs. 1,126, as reports of HDFC-HDFC Bank merger once again resurfaced. Also, the financial major upped interest rates on certain bulk deposits.

Coal India surged 3.7 per cent to Rs. 378. Grasim and Ambuja Cement advanced around 2 per cent each to Rs. 3,425 and Rs. 230, respectively.

ONGC, Zee Entertainment and UltraTech Cement gained 1.5 per cent each at Rs. 343, Rs. 367 and Rs. 2,549. The buying the ONGC counter was attributed to news of likely postponed of the proposed stake sale, and possibility of a revision the subsidy sharing formula.

HDFC Bank, IndusInd Bank, IDFC, Hero MotoCorp and BHEL were the other prominent gainers.

Friday, December 12, 2014

Nifty ends below 8250

Unabated selling pressure prolonged the weakness on the street for the second straight trading session. The cracks got wider in the late trades owing to unabated selling pressure.

The market participants preferred to remain light ahead of the weekend and key economic data - the CPI-based inflation numbers and IIP which are yet to be announced. As per reports, the Finance Minister stated that the much awaited GST Bill may be tabled in the next Parliament session.

Global cues were not helpful either, after the Asian market closed on a mixed note, the European markets started the day on a dismal note with losses of around 1.5 per cent for the FTSE, CAC and DAX as of 1530 hrs IST.

The NSE Nifty had started the day nine points higher at 8,302, and spurted to a high of 8,321 in early morning deals on the back fresh buying in IT and Pharma shares in the back-drop of the weaker Rupee.

However, persistent selling in energy and capital goods stocks continued to weigh on the market. The oil exploration firms were mainly under pressure as Crude Oil tumbled to fresh five-year lows.

According to media reports, IEA (International Energy Agency) today cut global oil demand forecast for the fourth time in the last five months, this time by 230L barrel to 900K barrel for 2015.

Back to the markets, IT and financial shares also weakened in the second half of the day, mainly TCS and HDFC. Unabated selling in the last session of the day saw the NSE Nifty tumble to a low of 8,216 - down 106 points from the day's high.

The Nifty finally ended the day with a loss of 69 points at 8,224. The NSE index shed 3.7 per cent (314 points) during the week, and is just seven points shy of its 50-DMA (Daily Moving Average) at 8,217.

The BSE Sensex opened on a flat note, but managed to jump to a high of 27,692 in early trade. The index, thereafter, plunged to a low of 27,320 - down 372points from the day's high.

The Sensex finally ended with a significant loss of 251 points at 27,351. In the process, the BSE index also ended below its 50-DMA (27,470) for the first time in since October 10, 2014. The Sensex has dropped 3.9 per cent (1,107 points) this week.

The broader market also cracked sharply towards the close. The CNX Midcap index tumbled over a per cent to 12,191, while the Smallcap index slumped nearly 2 per cent to 5,134.

The market breadth was also fairly bearish, with three declining shares for every advancing stock. Out of 1,735 stocks traded on the NSE, 1,140 declined and 375 advanced today.

The CNX Energy index was the major laggard, down 2.3 per cent at 8,521. The Realty index also tanked over 2 per cent to 206. The Metal index shed 1.6 per cent at 2,626.

The CNX IT index which had gained over a per cent in morning trade, finally ended 0.5 per cent lower at 10,930. The Bank Nifty settled with a loss of 0.6 per cent at 18,301.

Gail India and Tata Steel were the major losers in trade today. Both stock slumped over 4 per cent each to Rs. 425 and Rs. 401, respectively.

Cairn India plunged 3.7 per cent to finish at a fresh 52-week low of Rs. 242. ONGC cracked 3.3 per cent to Rs. 338, and Reliance Industries dropped 2.5 per cent to Rs. 883.

Sesa Sterlite and HCL Technologies also shed nearly 3 per cent each at Rs. 216 and Rs. 1,509, respectively.

Zee Entertainment, BHEL, IDFC, DLF and Larsen & Toubro were the other major losers, down over 2 per cent each.

TCS was in limelight on reports of an analyst meet later today. Following the Havells India disclosure at the analyst meet, traders began to worry and dumped the stock in intra-day deals. TCS from a high of Rs. 2,520, plunged to a low of Rs. 2,423. However, a late recovery helped the stock recover some of the lost ground. The stock finally ended with a loss of 1.3 per cent at Rs. 2,459.

On the other hand, Bharti Airtel and Sun Pharma gained 1.3 per cent each at Rs. 348 and Rs. 845, respectively.

Ambuja Cement, Maruti and UltraTech Cement also rallied over a per cent each.

Infosys, NMDC, BPCL and Lupin were the other prominent gainers.

Thursday, December 11, 2014

Nifty falls below 8300 level

After yesterday's consolidation, market ended with significant losses on account of heavy selling in IT, realty, auto and PSU banks. The NSE Nifty closed below the 8300 mark as the Indian rupee hit 9 month low against the US Dollar. Barring the Pharma index all the other major sectoral indices have ended in the red.

To start with, the NSE Nifty began the day with a loss of 16 points at 8,339, and soon tumbled sharply below 8,300-mark to touch a low of 8,272. The NSE index thereafter traded side was for the some part of the trading session.

As the day progressed, the Nifty-50 index witnessed a sharply recovered in the second half of the trading session tracking gains for the European cues and smart pull-back in PSU bank shares.

Going ahead, the NSE Nifty once again tumbled in the late trades, on the back of aggressive selling in shares like Jindal Steel, ONGC, Tata Steel, DLF, Reliance and Bharti Airtel.

The Nifty-50 shares finally ended with a loss of 62 points at 8,293.

The BSE Sensex opened 35 points lower at 27,796, and soon slipped dipper to touch a low of 27,539. After touching the lowest level of the day, the BSE index wiped out most of the gains owing to smart recovery in the hammered shares.

Further, the BSE benchmark index could not manage to recover all the losses, and tumbled back.

The BSE Sensex eventually settled with a loss of 229 points at 27,602.

The broader market also finished the day in red. The CNX Midcap index shed over a per cent at 3,330. The Smallcap index was down only 0.6 per cent at 5,233.

The market breadth was negative throughout the day - out of 1,731 stocks traded on the NSE, 998 declined while 518 advanced today.

Among sectors, the CNX Realty index tumbled 2 per cent at 211. The IT index dropped over a per cent at 10,986. The Auto index shed nearly a per cent at 8,318.

The Bank Nifty, Metal and FMCG indices were the other losers.

On the other hand, the Pharma index was marginally up at 11,130.

Among Nifty 50 stocks - Jindal Steel cracked 4 per cent at Rs. 143, and was the top loser. Tata Steel plunged over 3.5 per cent at Rs. 417.

ONGC slipped 3 per cent at Rs. 350. Gail India, Reliance and Bharti Airtel tumbled nearly 3 per cent each at Rs. 442, Rs. 906 and Rs. 343, respectively.

DLF, Cairn India, Infosys, Tata Power and Grasim were the other losers - down over 2 per cent each.

On the other hand, IDFC soared 2.5 per cent at Rs. 160. Tech Mahindra jumped over 1.5 per cent at Rs. 2,615.

Hindalco and Coal India rallied over a per cent each at Rs. 156 and Rs. 364, respectively.

NMDC, Maruti Suzuki and Kotak Bank spurted almost a per cent each at Rs. 138, Rs. 3,350 and Rs. 1,243, respectively.

NMDC, Maruti Suzuki and Kotak Bank spurted almost a per cent each at Rs. 138, Rs. 3,350 and Rs. 1,243, respectively.

Wednesday, December 10, 2014

Markets show mild recovery

After being hammered by over a per cent each in the last two trading sessions, the market today chose to breathe easy at close, amidst some volatility throughout the day.

Banking, auto and select shares from the metal and energy space witnessed buying today, while FMCG, Capital Goods and IT stocks were seen under pressure.

PSU banking major, SBI rallied over 3 per cent and was the top gainer in the Nifty 50 stocks today. The stock ended 3.3 per cent higher at Rs. 317.

Following the 661-point fall in the last two trading sessions, the BSE benchmark index, the Sensex, opened with a negative gap of 85 points at 27,712. The BSE index after touching a low of 27,710, soon rebounded into the positive zone in matter of few minutes from the opening bell. The tone remained the same for the rest of the day, as the BSE Sensex swung between wherein it touched a high of 27,905 - up 195 points from the day's low. The Sensex finally ended with a marginal gain of 34 points at 27,831.

The NSE Nifty started the day 22 points lower at 8,318, from there the index recovered and spurted to a high of 8,377 - up 60 points from the day's low. The Nifty finally settled 15 points higher at 8,356.

The broader outperformed the benchmark indices today. The CNX Midcap index was up nearly a per cent at 12,439, and the Smallcap index added 1.2 per cent to 4,299.

The market breadth was also positive - out of 1,732 stocks traded on the NSE, 988 advanced and 550 declined today.

Jindal Steel, Punjab National Bank and ONGC surged around 2.5 per cent each to Rs. 149, Rs. 1,112 and Rs. 361, respectively.

Bank of Baroda also rallied over 2 per cent to Rs. 1,073. Tata Power, UltraTech Cement and Tata Motors gained around 1.5 per cent each.

Zee Entertainment, IDFC, Dr.Reddy's, Power Grid, Cipla, Hero MotoCorp, Cairn India, HCL Technologies and Sesa Sterlite.

On the other hand, BHEL slumped 2.5 per cent to Rs. 253. NMDC, Gail India and Hindustan Unilever slipped over 2 per cent each to Rs. 137, Rs. 455 and Rs. 796, respectively.

Bajaj Auto and Tech Mahindra shed 1.7 per cent each at Rs. 2,564 and Rs. 2,568, respectively.

Larsen & Toubro, Reliance Industries, Wipro and Asian Paints were the other prominent losers.

Insurance related stocks were in focus today as the government tabled the Insurance Bill seeking up to 49 per cent FDI in the sector in the Rajya Sabha. Max India soared over 5 per cent to Rs. 409. Reliance Capital gained 4.3 per cent to end at Rs. 538.

Tuesday, December 9, 2014

Nifty loses nearly 100 points

Earlier in the day, the NSE Nifty started the day on a tentative note at 8,439, and swung in an out of the positive zone, while touching a day’s high of 8,445. The market began to weaken in late morning trades owing to persistent selling in energy and capital goods stocks.

The selling thereafter spread to banking and metal stocks following which the NSE index plummeted to a low of 8,331 - down 114 points from the day's high. The Nifty finally ended the day with a loss of 98 points at 8,341.

The Sensex opened 15 points higher at 28,134, and soon spurted to a high of 28,158, before slipping into the negative zone. The BSE index tumbled to a low of 27,764 - down 394 points from day's high. The Sensex finally ended with a loss of 1.2% (322 points) at 27,797.

The broader market also ended with huge losses. The CNX Midcap index shed 1.6 per cent to 12,324, and the Smallcap index dropped nearly 1.7 per cent to 5,187.

The market breadth too was fairly bearish - out of 1,731 stocks traded on the NSE, 1,180 declined and 353 advanced today.

Among sectors - the CNX Metal and the Infra indices slumped 2.8 per cent each to 2,688 and 3,054, respectively. The Auto, Bank Nifty and FMCG indices were down around a per cent each.

December is seeing selling pressure right from the start despite modest gains and recorded new highs on regular basis in November. After witnessing selling pressure in IT, realty, banking, auto and power stocks on Monday, similar trend continued today as well. After a weak start, selling accentuated in the second half of the day after Chinese stock market slumped over 5%. Metal stocks bore the brunt of the selling today.

The China's benchmark index slumped 5.4 per cent to close at 2,856, after testing a fresh three-year high at 3,091 in early trades. According to media reports, China said that lower-rated bonds can no longer be used as collateral for some short-term loans.
Sesa Sterlite was the major loser among the Nifty 50 stocks - the stock slumped 5 per cent to Rs. 221. ONGC and Tata Power also dropped around 4 per cent each to Rs. 353 and Rs. 85.60, respectively.

Tata Steel, NTPC, Bharti Airtel and Bank of Baroda plunged around 3.5 per cent each to Rs. 436, Rs. 135, Rs. 357 and Rs. 1,049, respectively.

ACC, Larsen & Toubro, BPCL and BHEL declined 3 per cent each to Rs. 1,432, Rs. 1,553, Rs. 669 and Rs. 259, respectively.

Hindalco, Jindal Steel, IDFC, Tata Motors, Ambuja Cement, Wipro, Punjab National Bank, Zee Entertainment, SBI and Grasim were the other major losers - down over 2 per cent each.
On the other hand, Mahindra & Mahindra surged 1.7 per cent to Rs. 1,270.

Dr.Reddy's bounced back on bargain hunting; the stock gained 1.5 per cent at Rs. 3,367. Sun Pharma added a per cent to end at Rs. 836.

Monday, December 8, 2014

Nifty closes below 8450

The Indian equity market extended their losses to second consecutive trading session on Monday amid some offloading witnessed in the IT, realty, banking, auto and power stocks. 

Infosys and TCS accounted for almost half of the day's losses for the benchmark indices; Sensex slumped 339 points, while Nifty shed 100 points.

The CNX IT index cracked over 3 per cent to 11,176 owing to the sharp fall in Infosys. The IT bellwether plunged around 5 per cent on reports that the co-founders of the company sold stocks worth $ 1.1 billion (nearly Rs 6,500 crore) in multiple block deals on the NSE for personal, philanthropic reasons.

Incidentally, the reported stake sale is just comes a few days after the stock went ex-bonus. The company had issued bonus shares in the ratio of 1:1, and the allotment of the bonus shares was done on December 3, 2014.

Infosys opened with a negative gap of 2.7 per cent at Rs 2,069, and tanked to Rs 1,958. The stock eventually ended near the day's low with a loss of 4.8 per cent at Rs. 1,972. In the process, the stock has plunged by 9.3 per cent since it went ex-bonus.

The NSE Nifty opened almost unchanged at 8,539, and could barely move a tad higher to the day's high at 8,546 before slipping into the negative zone. Relentless selling pressure thereafter saw the NSE index slide as the day progressed.

The Nifty tumbled to a low of 8,432 - down 114 points from the day's high, and finally ended with a huge loss of 100 points at 8,438. This is the biggest single day loss for the NSE index since October 16, 2014.

The Sensex opened 25 points lower at 28,433, and spurted to a high of 28,495, before slipping back into the negative zone. The BSE Sensex slumped to a low of 28,097 - down 398 points from the day's high, and finally ended with a loss of 1.2 per cent (339 points) at 28,119.

The broader market also finished with deep cuts today. The CNX Midcap and the Smallcap indices dropped over a per cent each to 12,529 and 5,279, respectively.

The market breadth was fairly bearish - out of 1,176 stocks traded on the NSE, 818 declined while 330 advanced today.

The Bank Nifty was down 1.3 per cent at 18,510, though Kotak Mahindra Bank was in the green.

The Auto and the Realty indices dropped 1.6 per cent and 2.1 per cent, Mahindra & Mahindra was down over 3 per cent by the end of trading. 

The CNX Metal index shed 1.8 per cent at 2,758. Sesa Sterlite was the major loser in the metal space, down nearly 4 per cent at Rs. 232 after a foreign broking firm downgraded the stock with a reduced price target.

Jindal Steel plunged around 3.5 per cent to Rs. 147 respectively. Hindalco declined over 3 per cent to Rs. 158. Tata Steel also ended with losses or more than 2 per cent.

The FMCG index was up 0.7 per cent at 21,375. ITC gained 1.65 percent on the index closing at Rs 397.80

Aurobindo Pharma was the other major gainer in the pharma space, the stock rallied over 3 per cent to Rs. 1,162.

Dr.Reddy's, however, continued to be slammed down. The stock today declined 2.4 per cent to Rs. 3,317, and has now slumped over 8.5 per cent in the last five trading sessions.

Among others - Ambuja Cement and BPCL were down around 3 per cent each at Rs. 230 and Rs. 690, respectively. HCL Technologies, Grasim, BHEL, Tata Motors and Larsen & Toubro were the other major losers.

HDFC Bank, ICICI Bank, Lupin, IDFC and Wipro too were down 1.5 per cent each.

On the other hand, Coal India was the top gainer, up nearly 2 per cent at Rs. 363. ITC gained 1.6 per cent at Rs. 398. Asian Paints and ONGC were the other notable gainers.