Post-Session analysis: Markets end on a cheerful note

Posted By: Religare
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Markets end on a cheerful note
Today, the domestic bourses ended on a cheerful note, after struggling in the negative terrain for the major part of the session. During the morning trade, all the Asian indices were seen trading lower as the disappointing jobs growth data in US fueled concerns that the recovery in the world"s largest economy is slowing down.

The Japanese market ended lower as the Tokyo Electric Power Co., operator of the Fukushima nuclear plant plunged 24% after reports came in stating that the company will post a full year net loss of around 570 billion yen.

After witnessing a subdued start, the benchmark indices were seen trading rangebound on the lower side with the Metal, Auto and Oil&Gas space taking the major hammering. The market plunged further, before the benchmark Nifty took support near the 5,480 mark.

A rangebound movement was witnessed till the mid-session, post which a smart pull back was observed. During the final hour of trade, the benchmark indices were seen surging in the positive terrain, with the major support coming in from the IT and Capital Goods space. Despite of the smart recovery towards the end, the market breadth remained weak. The negative opening for the European markets had failed to make any impact in the domestic front.

In the sectoral front, the IT, Healthcare and Capital Goods space led the final hour rally, gaining by 0.81%, 0.71% and 0.60%, respectively. However, the Metal and Auto sector showed weakness till the end, declining by 0.68% and 0.55%, respectively. Both the Nifty and Sensex were seen trading on a lackluster note for the majority of the session. However, the final hour of trade witnessed a smart rally, which pushed the benchmarks above the baseline and finally they closed with more than 0.20% gains each.

The negative closing for the US market on Friday had weighed heavily on the domestic sentiment during morning trade. The Dow Jones Industrial Average (DJIA) closed with a loss of 97.29 or 0.79% at 12,151.26 while NASDAQ index finished down by 36.20 points or 1.31% to 2,737.11. The S&P 500 (SPX) closed lower by 12.78 points or 0.97% to 1,300.16.

Among the Sensex pack, 16 stocks ended in negative while 13 stocks ended in the positive terrain and 1 remained unchanged. The overall market breadth showed similar weakness, as out of total 2,903 stocks traded on BSE, 1,456 stocks declined, whereas 1,331 stocks advanced and 116 stocks remained unchanged.

The BSE Sensex closed at 18,420.11 up by 43.63 points or by 0.24% and the NSE Nifty closed at 5,532.05, higher by 15.30 points or by 0.28%. The BSE Midcap was at 6,878.90, lower by 17.24 points or 0.25%, whereas the BSE SmallCap closed at 8,252.80, increasing by 14.11 points or by 0.17%. The BSE Sensex touched intraday high of 18,458.63 and intraday low of 18,258.42.

The top gainers of the BSE Sensex pack were Cipla Ltd. (Rs. 331.60,+2.25%), Housing Development Finance Corporation Ltd. (Rs. 671.20,+1.74%), HDFC Bank Ltd. (Rs. 2375.50,+1.09%), Tata Consultancy Services Ltd. (Rs. 1164.75,+1.01%) and Infosys Technologies Ltd. (Rs. 2838.45,+0.89%), among others.

The top losers of the BSE Sensex pack were Jaiprakash Associates Ltd. (Rs. 82.60,-2.54%), Hindalco Industries Ltd. (Rs. 186.35,-1.61%), Bajaj Auto Ltd. (Rs. 1350.90,-1.53%), Mahindra & Mahindra Ltd. (Rs. 657.10,-1.51%) and Oil & Natural Gas Corporation Ltd. (Rs. 276.10,-1.38%), among others.

On the macroeconomic front, RBI reported that the foreign capital inflows in the country are insensitive to interest rate changes. It added that about percentage point increase in interest rate corresponds to around 0.05 percentage points increase in net capital flows.

Chancellor of the University of Oxford, Lord Chris Patten expressed his views on recent International Monetary Fund (IMF) post at the launch event of the Sanjaya Lall Visiting Professorship of Business and Development at the Said Business School. He said that he has nothing against the current IMF head Christine Lagarde, the French finance minister but desired if India's Planning Commission Deputy Chairman Montek Singh Ahluwalia to be the next managing director of the IMF.

India and University of Oxford have long ties as university has produced renowned economist and great men like Dr. Manmohan singh and Ahluwalia. Also during the recent visit by Prime Minister of India Manmohan Singh to Africa expressed that the IMF post this time must be headed by some non western nation as eastern nations should also be given chance to bring some new changes in system.

The Reserve Bank of India deputy governor KC Chakrabarty stated that the banks are expected to use the marginal standing facility, which was introduced in the policy announcement in May, during mid-June when the liquidity is expected to shrink sharply due to the advance tax payments.

On the global markets front, the major indices in Asia closed on a negative note. The Nikkei225, Straits Times and Jakarta Composite declined by 1.18% at 9,380.35, 1.02% at 3,113.73 and 0.26% at 3,834.20, respectively. However, most of the Asian markets including Hong Kong, China and South Korea were closed today.

The European markets, which opened after the Indian market were trading on a negative note. Key benchmark indices like - CAC 40 index was trading lower by 0.75% at 3,861.60, FTSE 100 decreased by 0.06% at 5,851.74 and in Frankfurt, the DAX index was trading down by 0.05% at 7,105.44.

The BSE IT index was at 6,052.49 up by 48.76 points or by 0.81%. The main gainers were Core Projects & Technologies Ltd. (Rs. 285.35,+3.28%), Mahindra & Mahindra Ltd. (Rs. 702.35,+2.42%), Oracle Financial Services Software Ltd. (Rs. 2239.00,+2.41%), Tata Consultancy Services Ltd. (Rs. 1164.75,+1.01%) and Infosys Technologies Ltd. (Rs. 2838.45,+0.89%).

The BSE Metal index was at 14,980.13 down by 102.48 points or by 0.68%. The main losers were Hindalco Industries Ltd. (Rs. 186.35,-1.61%), Welspun Corp Ltd. (Rs. 169.45,-1.57%), Sesa Goa Ltd. (Rs. 284.95,-1.20%), Bhushan Steel Ltd. (Rs. 452.35,-1.00%) and Jindal Steel & Power Ltd. (Rs. 632.80,-0.97%).

On the corporate front, shares of Kingfisher Airlines Ltd increased by 1.83% at Rs 41.75, after reports came in stating that the company has initiated discussions with investors for issuing global depository receipts in order to raise nearly USD 300 million.

Read more about: bse, nse, sensex, nifty
Story first published: Monday, June 6, 2011, 17:32 [IST]
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