Midcaps in red despite modest Nifty recovery: Udayan

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Midcaps in red despite modest Nifty recovery: Udayan

Udayan Mukherjee, magaing editor, CNBC-TV18, wraps up the entire day's trades and summerises the market movement for today. Even though the Nifty ended slightly higher with 20 point gain, midcaps failed to hold their recoveries and slumped back to the red

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Excerpts from What's Hot on CNBC-TV18 Watch the full show » ALSO READ See what other CNBC-TV18 anchors have to say HDFC BSE | NSE 30/05/12 Are Mutual Funds betting on HDFC? Other Stocks in this news Reliance Industries | Tata Consultancy Services | Jaiprakash Associates | Reliance Infrastructure | GVK Power & Infrastructure | DLF | Axis Bank | Kotak Mahindra Bank | HDFC Bank | S Kumars Nationwide | Orchid Chemicals and Pharmaceuticals | GTL | Alok Industries | Arvind | Delta Corp | Ashok Leyland | KS Oils | Unitech | Shree Renuka Sugars | Patel Engineering Company | Brandhouse Retails |

Heavy selling towards the end of the day erased the morning's gains as the Nifty ended with a mere 20 point gain and the Sensex shut shop at 17,560, with a 53 point gain.

"We went up in the morning to 5325, held that gain for most of the first half of the session, and then the supply kicked in despite okay cues from the global markets," says Udayan Mukherjee, managing editor, CNBC-TV18.

Asia traded well today and Europe was fine, but we just could not hold our gains, finally closing very flattish on the large caps, he says. HDFC , Reliance , TCS , were three stocks which buoyed the index. With high beta clearly under pressure, stocks like JP Associates , Reliance Infra , GVK , and DLF were seen coming off today. "Some of the private banks, however, did well; Axis , Kotak , HDFC Bank were fine," Udayan says.

The bigger problem is the midcaps that got pummeled yesterday, he opines. "They could never quite make it in spite of a soft recovery in morning's trades," he says. In fact, there were some scary falls in some, Udayan points out. S Kumars , at one point, was down 26% and then recovered after a management clarification, but still closed about 9-10% lower. It was the same with Orchid Chemical which went down 16-17% and then recovered to close about 7-8% down. "It looked like some of these stocks were getting targeted because of the large pledges that promoters were running," the managing editor says, "though the promoters clarified that none of the pledged stocks came into the market."

GTL attempted a recovery in the morning by starting 10% up, but then, by the time it closed, it was down 4%. This means that over the day, the stock tumbled 14% once again. "Other stocks in trouble today were a whole lot of infrastructure players and textile players," says Udayan. Alok , Arvind , Delta Corp , Ashok Leyland , KS Oils and others failed to hold on to their recoveries in the volatile market.

However, the most severely hit were Unitech , Renuka and Patel Engineering . Those stocks came off quite sharply and in sympathy with S Kumars and Brandhouse Retail which too fell drastically. "All in all, not a great day for trade for midcaps at all," Udayan sums. "The lingering taste of today's session might just be as a bad one despite the modest closing in the green for the Nifty," he concludes.