ndian benchmarks closed an extremely volatile session on a flat note on Monday while the broader markets underperformed the benchmarks. The 50-share NSE Nifty settled at a 5,654.75, up just 0.2 points, after trading in a range of 5625-5680. There was a pause today, after a drastic fall seen last week. Investment Guru, Marc Faber feels that there will be higher volatility in 2011 compared to last year. "Food inflation is more worrying in emerging markets and money printing will not lead to sustainable economic growth."
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The sell-off was seen in capital goods, realty, Anil Dhirubhai Ambani Group (ADAG), metal, oil & gas and select auto companies' shares along with ICICI Bank & HUL. On other side, support was led by technology, financial (barring ICICI Bank) companies' shares along with Bharti, ITC, Cipla and NTPC.
The 30-share BSE Sensex closed at 18,882.25, with gain of just 21.81 points. However, the BSE Midcap and Smallcap indices were down 1.4% each
Akash Prakash of Amansa Capital expects the more downside. "There could probably be a bit of a recovery now. As the market looks oversold, we could get a short term bounce. However, before this downward move is complete, we will see more downside from where we are right now." "I think another 5% to 10% correction is very much possible. It may not happen immediately but I do believe there is more downside to come," he added.
Faber too said Indian markets may see a correction of 20%.
ADAG companies' shares witnessed huge selling pressure after the SEBI order. Reliance Infrastructure (top loser on Nifty), Reliance Power and Reliance Capital tanked 5-8%. Reliance Communications fell 4.4%. Market regulator SEBI said Anil Ambani & four directors would not invest in secondary market till December 2011, and Reliance Infra & RNRL would not invest in secondary market till December 2012.
At 14:37 hours IST - Indian benchmarks were extremely volatile in trade today, especially after consistent heavy fall in previous sessions. Broader indices were seeing more than compared to benchmarks; BSE Midcap and Smallcap indices declined one percent each. But the Nifty was hovering around 5650 since morning; Reliance Industries and ICICI Bank were playing big role in choppy trade.
Anil Dhirubhai Ambani Group companies' shares like Reliance Infrastructure (top loser on Nifty), Reliance Power and Reliance Capital tanked 6-7%. Reliance Communications fell 4.4%. Market regulator SEBI said Anil Ambani & four directors would not invest in secondary market till December 2011, and Reliance Infra & RNRL would not invest in secondary market till December 2012.
Capital goods, realty, metal and auto companies' shares along with heavyweight ONGC were putting pressure on markets. However, support was led by technology and financial (barring ICICI Bank) companies' shares along with Bharti (bounced back), ITC, ACC and Cipla.
The 30-share BSE Sensex was trading at 18,841, down 19.5 points and the 50-share NSE Nifty fell 14 points to 5,641.
Among largecaps, HDFC, TCS, Infosys, Bharti Airtel, ITC, Axis Bank and Cipla went up 1.4-2.7%. However, Jaiprakash Associates plunged 5.45%. Sterlite Industries was down 3.35% and DLF down 2.72%.
Tata Coffee, SBI, Reliance Infra, L&T, Tata Steel, HDFC and ICICI Bank were most active shares on exchanges.
In midcap space, Gitanjali Gems, BOC India, Sanwaria Agro, Jagran Prakashan and Mcleod Russel gained 2.5-7% while Jindal PolyFilm, Glenmark, Sobha Developer, Man Infra and Escorts lost 5-7.7%.
In smallcap space, Splash Media shot up 16.22%. Bombay Burmah, Graviss Hosp, Sterling Holiday and Sanghi Ind jumped 5.5-8%. However, Reliance Media, Websol Energy, Odyssey Finance, Ajanta Pharma and Jupiter Bioscience fell 6-9%.
About 857 shares advanced as against 1967 shares declined on Bombay Stock Exchange.
At 13.07 hrs IST, the Sensex was up 100 points amid volatility. It was a choppy session for the markets as the benchmark index Sensex was hovering in a band of 200 points. Buying was seen in IT, telecom, FMCG and banking stocks. Selling was seen in realty, power and metal stocks.
The Sensex was up 135.83 points or 0.72% at 18996.27, and the Nifty was up 28.65 points or 0.51% at 5683.20. About 986 shares advanced, 1732 shares declined, and 547 shares remain unchanged.
In the largecap space, HDFC, Axis Bank, Kotak Mahindra Bank, Cipla and Infosys were up 2-3%. On the losing side, Reliance Infra, Reliance Power, Reliance Capital, Reliance Communications and Jaiprakash Associates were down 3-6%.
Index heavyweight Reliance was trading at Rs 1,005.95 up 0.48% from its previous close of Rs 1,001.15. Refinery major HPCL was trading at Rs 363.90 up 1.08% from its previous close of Rs 360.00. Tech major Infosys was trading at Rs 3,258.20 up 1.76% from its previous close of Rs 3,201.95.
Hindustan Lever was trading at Rs 304.00 up 0.46% from its previous close of Rs 302.60. Cigarette major ITC was trading at Rs 173.15 up 1.7% from its previous close of Rs 170.25.
Top gainers on the BSE Midcap: KGN Industries, BOC India, Sanwaria Agro, Jagran Prakashan and Gitanjali Gems were up 2.5-4.5%.
Top losers on the BSE Midcap: Jindal PolyFilms, Glenmark, Indian Metals, Man Infra and Blue Dart were down 4.5-7%.
Top gainers on the BSE Smallcap: Jindal Worldwide, Bombay Burmah, Can Fin Homes, Symphony and Urja Global were up 5-8%.
Top losers on the BSE Smallcap: Parrys Sugar, Accentia Techno, Ansal Properties, Rain Commodities and Prraneta Industries were down 5-6.5%.
Nifty holds 5650 amid volatility; IT, banks gain
At 11:54 hours IST - the benchmark Nifty was holding the 5650 level amid extreme choppy trade today, led by support from technology, financial and select healthcare companies' shares along with ITC, NTPC and ACC. Heavyweight Reliance Industries was marginally in green but was playing major role in volatility today.
On other side, the sell-off continued in ADAG, metal, telecom, realty, capital goods and auto companies' shares along with ONGC, which limited gains.
Investment Guru, Marc Faber is expecting mature economies to outperform EMs going forward. He said that that food inflation is more worrying in emerging markets and money printing will not lead to sustainable economic growth.
On a concerned note, Faber added that Indian markets may see a correction of 20%. He also feels that there will be higher volatility in 2011 compared to last year.
The 50-share NSE Nifty was trading at 5,671, with gain of 17 points and the 30-share BSE Sensex rose 73 points to 18,933.
Among largecaps, TCS, ITC, HDFC, Infosys, Wipro, Kotak Mahindra Bank and Axis Bank rallied 1.5-2.4%.
However, Anil Dhirubhai Ambani Group (ADAG) companies' shares like Reliance Infrastructure, Reliance Communications, Reliance Power and Reliance Capital tanked 3.7-5%.
Jaiprakash Associates, Hero Honda, Sterlite Industries and Sesa Goa slipped 1.9-3.2%.
Tata Coffee, SBI, Reliance Infrastructure, Reliance Industries, Tata Steel, HDFC, L&T and Tata Motors were most active shares on exchanges.
In midcap space, Sanwaria Agro, BOC India, KGN Industries, KSK Energy Ventures and Glodyne Tech were up 3-5% while Jindal PolyFilm, Glenmark, ILandFS Transport, Shoppers Stop and Thermax lost 3-7%.
In smallcap space, Tata Coffee rallied 11.92%. Bombay Burmah, Modern India, CCL Products and Sterling Holiday gained 6.7-9%. However, Parrys Sugar, Surana Industries, Spectacle Info, Centrum Finance and Heritage Foods fell 4.7-6.7%.
About 1095 shares advanced as against 1468 shares declined on Bombay Stock Exchange.
Sensex consolidates; ADAG, capital goods, realty slip
At 10:32 hours IST - equity benchmarks were witnessing volatility today after a massive fall seen in last two weeks led by rate sensitive and infrastructure stocks. Anil Dhirubhai Ambani Group (ADAG), realty, auto, metal and capital goods companies' shares were under pressure followed by Reliance Industries and Bharti Airtel. Reliance Industries and ICICI Bank were playing a major role in today's volatility.
After the SEBI order that Anil Ambani & four directors would not invest in secondary market till December 2011, ADAG shares were on sellers' radar. Even Reliance Infra and RNRL would not invest in secondary market till December 2012, says SEBI. Reliance Communications, Reliance Infrastructure, Reliance Power and Reliance Capital lost 3-5%.
L&T lost over 1.5% ahead of its Q3FY11 numbers today. DLF from realty pack tumbled over 2%. Sterlite Industries and Sesa Goa from metal space were down 2% & 3.3%, respectively. Jindal Steel and SAIL fell 0.6-1%.
However, indices were getting support from financial, technology and healthcare companies' shares along with ITC. Infosys and Wipro were down 0.6% each.
In financial space, SBI and HDFC Bank rose 0.5% each. Axis Bank ahead of numbers today gained 1.4% and Kotak Mahindra Bank went up 2%.
The 30-share BSE Sensex was trading at 18,891, up 31 points and the 50-share NSE Nifty rose 2.75 points to 5,657. Breadth was negative; about 392 shares advanced as against 852 shares declined on National Stock Exchange.
Ambareesh Baliga of Karvy Stock Broking said that the markets may possibly fall closer to 5,200. “Before that we could have a few small bounce backs but 5,700 levels would be a major resistance. Crossing that would be difficult,” he explained.
In midcap space, KGN Industries, Graphite India, Sanwaria Agro, TV18 and HT Media rallied 2.4-4.6% while Jindal PolyFilm, Shoppers Stop, Glenmark, Bayer Cropscience and Peninsula Land lost 3.6-6.4%.
In smallcap space, Tata Coffee, Modern India, Kama Holdings, Rollatainers and Hind Composites jumped 5.5-8% while Oscar Invest, Surana Industries, Heritage Foods, Spectacle Info and Jindal Cotex fell 4.5-5.5%.
Nifty volatile; TCS, Infy, HDFC Bank, Axis Bank gain
The benchmark Nifty started the session on a flat note and was consolidating at Friday's closing value after it witnessed a drastic sell-off in previous few sessions.
Anil Dhirubhai Ambani Group companies' shares like Reliance Infrastructure, Reliance Communications, Reliance Capital and Reliance Power were down 2.5-6% though these stocks saw buying at lower levels.
SEBI accepted Rs 50 crore settlement fee from Reliance Infra, RNRL & directors.
SEBI said Anil Ambani & four directors would not invest in secondary market till December 2011. Reliance Infra and RNRL would not invest in secondary market till December 2012, says SEBI.
Among frontliners, Sterlite Industries, Sesa Goa, JSPL, PNB, ICICI Bank, Cairn, Hero Honda, Maruti and M&M were witnessing selling pressure.
However, BPCL and HPCL gained 3% each. Oil companies raised petrol rate by Rs 2.50-2.54/L w.e.f. Saturday midnight. Companies too raised ATF prices by 2%.
TCS, L&T (ahead of earnings), Kotak Mahindra Bank, HDFC, HDFC Bank and SAIL were on buyers' radar.
At 9:17 hours IST, the 30-share BSE Sensex was trading at 18,807, down 52 points and the 50-share NSE Nifty fell 19.55 points to 5,635.
The CNX Midcap rose 21 points to 8,489. About 271 shares advanced as against 473 shares declined on National Stock Exchange.
Midcap & Smallcap space:
Essar Oil was up 2%.
Tata Coffee rose another 3% as it signed MoU with Starbucks for strategic alliance in India.
However, Glenmark lost 6%. Abbott and Sanofi won district court jury trial against Glenmark for Tarka and Glenmark has to pay USD 16 million in damages to Abbott-Sanofi.
Jet Airways, TVS Motors were down 1%.
Global cues:
Asian markets were witnessing selling pressure. Shanghai tanked 2.1%. Hang Seng was down 0.4% and Taiwan down 0.8%.
The US markets made fresh 2-year high post better-than-expected results from JPM and Intel. China raised banks' reserve requirement ratio by 50 bps & higher PPI numbers from UK.
The Dow Jones Industrial Average ended up 55.5 points at 11787. The Nasdaq Composite was up 20 points at 2755 and S&P 500 Index rose 9.5 points at 1293.
Commodities
CRB Commodity ended flat, gained 2.8% for the week
Crude Oil jumped 0.1% at USD 91.53/barrel
Natural gas was up 1.6% at USD 4.48 per MMBtu
Gold ended down 2% at USD 1359/ounce
Silver was down 3.4% at USD 28.27/ounce – hit its worst level in a month
F&O cues:
Total Nifty futures up Rs 129 crore, Options up Rs 2753 crore
Stock futures net shed 47 lakh shares in Open Int
Nifty Fut Open Int net add 16.6 lakh (7%) shares in Open Int; Nifty futures prem flat versus 4 pts prem
Nifty Open Int PCR down to 0.90 from 0.94 (has fallen from 1.41 since start of series)
Nifty Put add 7 lakh shares in Open Int, Call add 39 shares in Open Int
Highest Open Int outstanding on call side at 6200 call, 5600 Put
Nifty 5600 Call adds 22.1 lakh shares in Open Int; prem down from 190 to 119 – hit 275 during the day
Nifty 5700 Call adds 19.8 lakh shares in Open Int; prem down from 124 to 70 – hit 192 during the day
Nifty 5500 put adds 10.6 lakh shares in Open Int; prem up from 34 to 44
Nifty 5600 Put add 8.7 lakh shares in Open Int; prem up from 47.5 to 74.7
Nifty 5400 Put adds 4.2 lakh shares in Open Int
Nifty 5300 Put adds 2.5 lakh shares in Open Int
Nifty 5800 Put shed 12.5 lakh shares in Open Int
Nifty 5900 Call shed 6.5 lakh shares in Open Int
Nifty 5900 Put shed 6.2 lakh shares in Open Int
