Very dramatic, to say the least. We started off circuit down on the benchmark and that was expected on the back of PE note clamp down that SEBI brought about last evening. So that was the story at opening bell, down 10% for the Sensex and the Nifty.
Very dramatic, to say the least. We started off circuit down on the benchmark and that was expected on the back of P-Notes clamp down that SEBI brought about last evening. So that was the story at opening bell, down 10% for the Sensex and the Nifty . But look at the claw back, the recovery - almost a 1,300 point for the Sensex and above 400 point for the Nifty. So it was clearly a very dramatic day in today’s session and there was participation enough and more. The Nifty as well is at 5,559 - recovered from 5,100 in just one trading session.
We were talking about participation and record turnover - all time high turnover is what we witnessed in today’s session, 1.3 lakh crore done/down in total with futures and options also closing in at nearly about a lakh crore done/down in that segment with about 24,000 coming in from the cash market.
So there was a lot of build up in trading that we witnessed in today’s market, particularly in the last lap when recovery really stepped. Look at the futures and options data and look at the turnover on that. On the Nifty purely, out of that 98,000, 31,000 were done on the index with discount really at 6 points with open interest additions standing at about 16.5 lakh shares.
From the broader markets, however, the excitement was not so pronounced because we saw a cut coming in, a significant one at that for midcap and smallcap indices. Their recovery was more limited than the one that we saw on the benchmark indices.
Advance/decline ratio, in that light, needless to say saw pressure and continued to perform that way towards the last lap of trade as well. So 255 to the advances with about 900 odd to the declines was the picture on the market breadth.
The IT index however hogged all the limelight that it could in today’s session and rightly so, considering that the rupee weaken and considerably so in today’s opening trade. So 1% up is how the IT index wrapped up. All of the IT stocks closed well in the green for themselves as well.
However in the last lap the recovery was really spearheaded by certain key heavyweights. None more so then Reliance Industries and that stock closed up above a percent. Rs 2,200 was the low that it made in today’s session. So it was almost a Rs 400 recovery. Likewise were Siemens and ABB .
Also, certain other stocks, which were not as lucky as the IT sector for reason of their own - banks , metals , autos as well as real estate . All of those indices closed deep down in the red, particularly banks because most of those FIIs have a lot of interest in financial stocks.
So the P-Notes clamp down really impacted the performance of the banking majors and minors.
We also had the power and energy stocks recover from today’s lows but the pressure continued on most of them. Tata Power was down about 14% at closing bell. ONGC also could not recover too much but still closed down about 4%. However the day was better for these stocks by the time we wrapped up trade.
Momentum boys - some of them managed to stay at the light at the end of the tunnel today because Power Grid as well as PTC manages to claw back into the green. Neyveli Lignite and Reliance Natural Resources also made some gains and ofcourse RPL , IFCI , Nagarjuna Construction - the more liquid stocks have recovered quite handsomely from today’s lows. They closed down in the red but when we started off trade the cut on their prices was more significant.
One last stock, new listing in today’s session, a remarkable performance in that one as well - Dhanus Technology has managed to make some gains for its investors on its very first day on the market. Net-net we are still awaiting the FII figures in trade today and that’s going to be the acid test that the market will be watching out for before we start off trade tomorrow.
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All portents good; optimistic for next few Diwali's: Damani