How will mkts react to what Japanese Central Bank's saying?

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How will mkts react to what Japanese Central Bank's saying?

It was looking to be a fairly rangebound or a lackluster sort of a day, but towards the later half of the day, the Japanese Central Bank said that they would monitor the losses on account of subprime very closely and that market slid quite sharply to close about 1.6% down, and that effect rubbed off on our markets as well.

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Excerpts from Reporter's Diary on CNBC-TV18 Watch the full show » RELATED NEWS Mkts upward trend to remain intact experts predict Will Sept see mkts touching new highs? Nifty future trading at 40 points discount Stocks to watch: Triveni Engg, Torrent Power ALSO READ See what other experts are saying about markets See what FIIs are saying about the markets See what Udayan Mukherjee is saying about the markets Nifty BSE | NSE 30/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Ambuja Cements | ACC | Aksh Optifibre | Bharti Airtel | Cipla | Century Textiles and Industries | DLF | Decolight Ceramics | Escorts | Gujarat Industries Power Co. | Gujarat NRE Coke | Gujarat Narmada Valley Fertilizers Company | IFCI | Indiabulls Financial Services | JSW ISPAT Steel | KEI Industries | KS Oils | Matrix Laboratories | Maruti Suzuki India | Noida Toll Bridge Company | NTPC | Oswal Chemicals and Fertilisers | Orchid Chemicals and Pharmaceuticals | Omnitech Infosolutions | Punj Lloyd | Ranbaxy Laboratories | State Bank of India | SEL Manufacturing Company | Triveni Engineering and Industries | Torrent Power | Tata Power Company | Tata Teleservices (Maharashtra) | Tata Communications |

It was looking to be a fairly rangebound or a lackluster sort of a day, but towards the later half of the day, the Japanese Central Bank said that they would monitor the losses on account of subprime very closely and that market slid quite sharply to close about 1.6% down, and that effect rubbed off on our markets as well. If you take a look at the Sensex today, we have fallen quite sharply in the last hour. It is almost a vertical fall to close relatively flat intraday, but we were up close to about 100 points or thereabouts.

A similar performance from the Nifty . It has actually fallen off in the last hour of trade to eventually close just about 3 points down, that's about 8-9 trading session of gains that have come to an end.

What was not heartening was both the mid and small cap index. In fact both those indices which were looking very healthy intraday, have actually closed relatively flat for themselves. As a result, the advance-declines are looking as much on par as you can possibly get, nearly about 1:1 for the advance-decline, and that on a turnover that was not anything special. In fact, it is just marginally higher than what it was yesterday, just about Rs 58,000 crore; remember we did about Rs 55,000 crore in trade yesterday.

The real concern came in from the futures and options side. That discount picture has widened to close to about 60 points from about 40-45, so that was playing out on the futures side.

The positive stocks on the futures side were the sugar stocks and the power stocks. Some long positions were being built up. And in individual stocks, you had Escorts , Punj Lloyd and Matrix seeing some long positions being built up over there. And some shorts in stocks like Bharti , Maruti .

This was the weak part in trade today, a lot of unwinding of stocks in the banking and financial stocks, whether it was stocks like ACC and Ranbaxy from the outside sectoral plays if you will. Though on the couple of positive sides on the midcap space GNFC and Oswal Chemicals saw some covering on the trade today. On the futures side the discount has widened quite drastically.

On the positive side, power was the sector of the day for the third day running. All of the frontline stocks between 1-2%, NTPC and Tata Power leading the charge. That rubbed off on stocks like Torrent Power and even Gujarat Industrial Power , both of them having a very good day, up anywhere between 5-9% for those stocks.

Pharmaceuticals did not do too badly, led by Cipla , which is having quite a dream run. In fact, it is up close to about 13-14% over the last 3-4 days and Orchid Chemicals from the midcap did not look too bad.

Some of the other winners in the frontliners included the likes of Ambuja Cements , ICICI Bank having a good day and ABB to round off on what was a decent sort of a day in terms of gains for these stocks.

DLF had a very strong day from that real estate pack, up a good 2.5% on very strong volumes. That is one stock that has looked strong over the last few days, and we touched on Maruti on the futures and options side. That along with Bharti and SBI , were some of the heavyweights that looked a little weak today, between 1-2% shaved off. VSNL , Ranbaxy and Siemens were some of the other stocks that looked weak today. A few losers in the Nifty on that particular count.

The midcap space was very lively in the first half of the day. Stocks like Escorts, KS Oils , GNFC, all of them having a good day. Special mention for Gujarat NRE Coke , which is seeing something of a dream run on very good volumes. Stocks like Noida Toll Bridge , a couple of sugar stocks like Triveni Engineering are leading the charge as well over there. Some stocks like Decolight Ceramics , Omnitech , KEI Industries , and Aksh Optifibre , which is having capex plans, all of these stocks having a good sort of a day.

Some losers though, SEL Manufacturing has run-up very hard over the past few days. That stock cooling off nearly 20%. Ispat , IFCI after the delay of the strategic sale to some of the private investors, taking a backseat. Some of the other stocks that decided to cool off were the likes of TTML , Indiabulls Financial Services shaving off nearly 5.5%, and Century Textiles another liquid midcap stock.

Some data is expected from the US overnight as we open up into trade tomorrow. It will be interesting to see how Asia opens in light of what the Japanese Central Bank has been saying. We will be taking our cues from all of that tomorrow.