Market losing momentum, but no need for alarm yet: Udayan

Excerpts from Markets Today on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say

It does not appear like a bad day, but it wasn't a very good session. We have had a one-way run and today was the first sign that the market was losing a bit of momentum. However, Udayan Mukherjee, managing editor of CNBC-TV18 believes that it's not alarming yet. It's just that the market tried to go to that 5400 level a few times during the day and then just retraced and came off.

Also a lot of profit taking was observed in many of the sectors which had run up. The mid cap index was down 1%, so the broader market did not do very well. All of that left you with a feeling of sagging momentum at the end of the day. It may get arrested tomorrow, but because global markets were sluggish and the Nifty was anyway pushing against an important level perhaps that we did see not too much momentum in climbing above that 5400 level.

The sector which got hit today was infrastructure; large caps like BHEL, JP Associates and L&T were down, but also some of the mid cap names like IVRCL, GVK and Voltas did not do very well. Also telecom stocks did not do well, so Bharti, Reliance Communication and Idea were all down quite a bit. Losing stocks also included Tata Steel and Hindustan Unilever.

M&M too saw red after margin slippage came in lower than what the market was expecting, so those results were not very well received.

On the other hand, the wining stocks included Cairn, Kotak Mahindra Bank and Reliance Industries which sort of held the index up today.

The breadth was not good, with one only one stock gaining for every two declining, so more declining stocks. The prominent loser was ofcourse Manappuram after the RBI banned them from accepting deposits; the stock was down 20% today. Equally poor reactions came in for many of stocks like Adani Power, Nagarjuna Construction which slipped off 12% after a big slide in margins yesterday, Sintex was weak, India Infoline gave up quite a bit of yesterday's gains and we saw LIC Housing Finance and Ashok Leyland also not doing very well.

Ofcourse aviation was the star sector as direct ATF import was allowed by a group of ministers. So Kingfisher, Jet and Spicejet were the biggest winners today. Other prominent winners included some of the banks like South Indian Bank, Syndicate, Vijaya, IDBI and Central Bank. Renuka had a good day as did some of the rice stocks like KRBL.

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