Markets buckled down today after an initial show of resilience. The Nifty sheds 1 percent to close below 5,700. Udayan Mukherjee, managing director, CNBC-TV18 gives a detailed analysis of the market’s performance today.
Below is the edited transcript of Udayan’s analysis.
It’s a disappointing end to trade because despite an overnight global weakness our market seemed very resilient in the morning. Infact, the first one hour belonged to the Nifty in the green but then, as the day progressed and couple of data points like the SBI results kicked in, even the European markets seemed to be losing their way after a flat start.
The market started coming off and we ended on a note of weakness almost at the lows of the day and well below that 5,700 mark. So, the seeming breakout a couple of days back, which the market seemed to be building on, has not lasted. We have closed the week within that trading range once again, which is quite disappointing as an outcome.
State Bank of India (SBI’s) net interest margins and the non-performing asset (NPA) picture did not look encouraging, so that stock was down 4 percent. That was a big drag on the index. Tata Steel numbers too were not good on many counts. Even the India operations, they looked quite disappointing. ONGC and BHEL were two other stocks which dragged the index quite a bit.
Outside the index the breadth was not special. While there were pockets of green like Ashok Leyland which rang in an earnings surprise and some of the UB Group stocks, which held firm after the deal, we saw quite a few disappointments like Manappuram Financial Services which collapsed after the earnings. Reliance Communications was weak. Aurobindo Pharma was another stock which did not do well today. Nagarjuna Construction and some of the banks like Andhra Bank and Union Bank performed poorly, so more losers than gainers. It is a trace of disappointment about the way the week has closed up.