Market takes a breather; all eyes on EGoM meet
The Nifty took a breather today and consolidated around 5420-mark after serious drubbing it received at the hands of bears for the first two days of the week. A possible contraction in loan growth of India's largest commercial bank in next few quarters was reflected in realty and auto stocks.
The Nifty took a breather today and consolidated around 5420-mark after serious drubbing it received at the hands of bears for the first two days of the week. A possible contraction in loan growth of India's largest commercial bank in next few quarters was reflected in realty and auto stocks.
All eyes are now set on EGoM (Empowered Group of Ministers) meet which is scheduled for the next week. The main agenda of this meeting will be diesel price hike and subsidy sharing mechanism.The bears switched gears from heavyweights to broader markets today. Many midcap and smallcap stocks opened huge cuts despite flat closing for the benchmark index. Nifty open interest Put Call ratio of 0.9 will further discourage traders to go long. The Nifty has been forming head and shoulder top reversal pattern on the daily chart since first week of March 2011. Overall, the markets have turned weak and bears have an upper hand over bulls in the near term.The Sensex closed at 18086.2 down 51.15 points or 0.28% and the Nifty shut shop at 5422 down 16.95 points or 0.31%. The breadth of the market also remained sluggish. About 1052 shares advanced, 1772 shares declined, and 817 shares remain unchanged. Nifty gainers: HDFC, Hero Honda, Wipro, Hindalco and Cairn India were up 1-2%. Nifty losers: BPCL, Reliance Infra, Reliance Communications, Tata Motors and GAIL were down 2-4%.The most active shares on NSE were SBI, Reliance, Infosys, Coal India and ICICI Bank.Broader MarketsMidcap gainers: Shoppers Stop, Bajaj Finserv, eClerx Services, Ramky Infra and Shree Global Tr were up 4-10%.Midcap losers: Kwality Dairy, Anant Raj Ind, Opto Circuits, Punj Lloyd and SKS Microfin were down 5-10%.Smallcap gainers: Dunlop India, BL Kashyap, Dalmia Enter, Kalyani Invest and Lloyds Metals were up 7-13%.Smallcap losers: MIC Electronics, Kama Holdings, Shiv Vani Oil, Som Distillerie and ARSS Infra were down 7-8%.Technical view: "The Indian bear markets tend to lose around 50% from the peak (6,338), so one can do the math as well. I have been conservative, I said that 4,900-5,100 is probably the first stop in a bear market. It could well go down further." says Devangshu Datta, Consulting Editor, Outlook.Sectoral check: Oil & gas stocks sink further in trade today. IOC, HPCL, BPCL, GAIL and Reliance Industries were down 2-4%.Auto stocks closed the day with substantial losses. Tata Motors, Ashok Leyland, Bharat Forge and Bajaj Auto shed in the range of 2-3%.Turnover: The total turnover of the day was Rs 133573.94 crore. Segment-wise breakup: NSE Cash Rs 10545.79 crore, BSE Cash Rs 2605.65 crore, NSE F&O Rs 120422.5 crore.Gold, Rupee, CrudeIndia's gold futures tracked overseas gains to edge higher on Wednesday afternoon, despite the rupee's pull back from two-month lows. Domestic spot demand remained weak in the absence of support from wedding season purchases, dealers said.The rupee pulled back on Wednesday from two-month lows hit in the previous session, supported by firmer regional peers. The rupee plays an important role in determining the landed cost of the yellow metal, which is quoted in dollars.Oil rebounded more than USD 1 to above USD 111 a barrel on Wednesday, after falling for two sessions, supported by a surprise drop in US gasoline inventories and a weaker dollar. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
