CNBC-TV18's managing editor Udayan Mukherjee says the market seemed good for more when the Indonesian earthquake news hit the market at around 2:30 pm and then the market saw a pullback, which finally the market could not come out of and closed in the red.
Today the market was a bit all over the place. The morning began weak which saw the Nifty go below 5,200 and as the day progressed and Europe opened up at a stable note, the market pulled back to about 5,250-5,260 levels.
CNBC-TV18’s managing editor Udayan Mukherjee says the market seemed good for more when the Indonesian earthquake news hit the market at around 2:30 pm and then the market saw a pullback, which finally the market could not come out of and closed in the red.
Europe was quite okay while the Indian market was trading and the Dow Futures was also pointing up in the green. It’s rather the news from Indonesia, which might have spooked sentiment in the last one hour of trade.
The big losers in trade - Cement was hit quite hard because of the expectation of penalties being levied by the CCI because of cartelization, which it has been probing. So the domino effect saw ACC, Ambuja and JP Associates all go down sharply.
Global metal stocks were down as well. Sesa Goa, Sterlite, JSPL, Tata Steel and SAIL were all down today and heavyweights like Reliance and Bharti did not have a good session at all today.
On the other hand the Bank Nifty and some of them like SBI, Axis Bank, Kotak Mahindra Bank were up. Many of those banks like DCB, UCO Bank and Dena Bank were all up today. The defensive pharmaceutical segment - Ranbaxy, Reddy and Sun Pharma sort of shielded the market from any bigger losses.
Volumes were high today, almost Rs 1.5 lakh crore and they picked up in the last one hour as the market turned volatile.
Very disparate moves for the midcap space which ended in the red - the midcap index and the market breadth was not comfortable today, particularly hard hit stocks like India Cements because of the news, Century Textiles, Reliance Capital, Jain Irrigation and Gujarat Gas.
On the wining side was Kingfisher where there is some talk about FDI from foreign carriers being allowed, plus talks of a large local industrialist buying into Kingfisher. The stock was up 6%. Jet Airways on those FDI rumors also did well.
IVRCL did well. Hexaware, Subex and MCX and Financial Technologies on the back of a Supreme Court ruling also did not do too badly today.
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Economy turning for sure but cant say for mkts: DSP