Nifty ends 5% lower on weak global sentiments

Weakness in global markets and lack of investor confidence saw the Indian stock market benchmarks wipe off gains made in last two trading sessions on Wednesday.Markets opened sharply lower, in line with the Asian peers, on concerns of global economic slowdown. Expectations of further cooling in inflation rate failed to cheer the market. Inflation rate for the week ended Oct 11 is seen at 11.35 per cent, lower from 11.44 per cent previous week.

Bombay Stock Exchange’s Sensex ended at 10,169.90, down 513.49 points or 4.81 per cent from Tuesday’s close. The index touched a low of 10,128.22 and high of 10,484.85. National Stock Exchange’s Nifty closed at 3065.15, down 5.25 per cent or 169.75 points. The broader index touched a low of 3051.80 and a high of 3235.75.

Among frontline stocks, Tata Steel (-12.04%), Sterlite Industries (-10.04%), Reliance Communications (-8.79%), ICICI Bank (10.04%), Jaiprakash Associates (-7.88%) and Tata Motors (-7.87%) were the worst hit.ITC (1.04%) and Hindustan Unilever (0.5%) were the only gainers in the 30-share index.Market breadth remained weak through the day, with 1,733 declines and 778 advances on BSE.

Look at what lies beneath

The Market is in turmoil. Barring the support on Thursday, on account of a global bounce-back, the benchmark indices looked weak — whether you talk about technicals or look at plain index numbers. Consider the movement of the index since the past couple of weeks. The Nifty has been making new intra-day lows. This indicates weakness. The volumes have also declined considerably from the average. This confirms the downward trend. The DLF IPO, which just managed to scrape through the retail and the non- institutional category, sucked out some liquidity last week. ICICI Bank’s follow-on public offer (FPO) will suck out some more. So, the market faces tough times ahead.

This is the first FPO of the current year. ICICI Bank has raised money through FPOs twice in ’04 and ’05. The stock appreciated 230% and 75% over its FY04 and FY05 FPO prices respectively. So, long-term

investors who had applied for the FPO made good returns on their investment. The upcoming issue looks promising as the bank aims to unlock value by creating a holding company for its non-banking business.

Read more in The Economic Times article.

Sensex up 232pts; Nifty at new closing peak

Both the key indices - the benchmark Sensex and Nifty - extended their weekly gains in high volatility on the back of strong global cues and easing inflation pressure.

The S&P CNX Nifty of the National Stock Exchange (NSE) breached 4,300 mark for the first time and touched a trading high of 4,326 before ending the week at a new closing peak of 4,297, netting a rise of 49 points or 1.15% over last weekend's close of 4,248.

The Bombay Stock Exchange (BSE) barometer fluctuated in a wide range of 14,682 and 14,368 and ended the week at 14,571 against last weekend's close of 14,339, a net gain of 232 points or 1.6%.

Capital goods, consumer durables, banking and auto counters were in keen demand while IT and FMCG shares reacted negatively due to profit- booking by investors.

The trading activity was influenced by the expiry of May series as operators rolled over large part of their holdings to next series of derivatives.

Operators rolled over more than 80% of their outstanding positions, which indicates a bullish market in the next week.

The market was fundamentally strong with the inflation falling for the fifth consecutive week to 5.06% in the week ended May 19 and the economy growing to 9.4% in fiscal 2006-07.

Foreign Institutional Investors (FIIs) pumped in Rs 1,095 crore in the initial four days of the week under review.

Nifty sets fresh record; Sensex ends up 110pts

The Sensex opened marginally higher at 14,419, up 21 points. Some weakness in early trades saw the index slip into red to a low of 14,372. However, steady buying in select heavyweights helped the index rebound into positive zone.

The buying gained momentum in the latter half of the trading day and the index rallied to a high of 14,530 - up 158 points from the day's low. The Sensex finally ended with a gain of 110 points at 14,508.

The NSE Nifty rallied to a new all-time intra-day high of 4299, before settling at a record 4293 - up 36 points.

The market breadth was positive - out of 2,672 stocks traded, 1,357 advanced, 1,213 declined and 102 were unchanged today.

BHEL, Cipla lead...

BHEL and Cipla soared nearly 5% each to Rs 2,856 and Rs 219, respectively. Larsen & Toubro surged 4% to Rs 1,857.

Ranbaxy and Reliance Communications rallied over 2% each to Rs 390 and Rs 521, respectively.

Reliance and HDFC Bank advanced 1.8% each to Rs 1,755 and Rs 1,145, respectively.

SBI, Grasim, HLL, Tata Motors and Reliance Energy were up around 1% each at Rs 1,322, Rs 2,509, Rs 203, Rs 741 and Rs 555, respectively.

HDFC shed 1.7% to Rs 1,813. Gujarat Ambuja and NTPC were down 1% each at Rs 115 and Rs 161, respectively.

MOST ACTIVE COUNTERS

Orbit Corp topped the value chart with a turnover of Rs 208.40 crore followed by Unitech (Rs 150 crore), Reliance (Rs 149 crore), Advanta (Rs 129 crore) and India Infoline (Rs 122 crore

Nifty hits new highs; more room for upside say experts

The market had an extremely good session inline with its global markets. Nifty created history by closing on anew high. All the Asian indices closed in green. Rally was seen on the back of broad based buying interest.

Except for IT and auto stocks all the BSE sector indices closed in green. Energy, metal, banking, media and FMCG stocks were among the major gainers. Broader markets also participated in the uptrend giving markets an extremely positive breadth and even the turnover was high.

On the results front, SAIL came out with numbers above street expectations pulling other steel stocks higher.

Energy stocks from Reliance stable, Reliance Energy and Reliance were among the top gainers.

The Metal & oil and gas indices have led to this new high and the BSE metal index is up 9% from the February 8 highs. It has; in fact, recovered 29% from the March 16 lows. The BSE oil and gas index is up by 10.5% from the February highs and it has recovered by 24% from the March lows. Moreover, the banking index has recovered by 22.5% from its March lows.

RIL, in the oil and gas sector, is up 17% from the February highs. RPL gas recovered 36% from the March lows. IPCL recovered by 26% from the low.

Though there have been some sectors like the auto, IT and cement stocks that have not performed, the Asian markets' positive sentiment seems to have encougared the Nifty as well.


Read more in
The Moneycontrol article.