May 29, 2013, 07.18 PM IST
The Nifty was range-bound on Thursday and closed around 6,100, says Udayan Mukherjee, Managing Editor, CNBC-TV18. Large caps were down for most part of the day, he says.
The Nifty moved between 6,070 and 6,100, and revived in the last hour of trading to close around 6,100, says Udayan Mukherjee, Managing Editor, CNBC-TV18. It is almost as if it was held up before expiry on Thursday. The road forward depends on flows and global expectations of liquidity, he says.
Below is the verbatim transcript of his analysis on the channel
Thursday, for most part, looked like a difficult day of trade. Large caps were down for most part of the day. The Nifty spent most of the trading session between 6,070 and 6,100, and then in the last half an hour it got a revival despite weak cues from Europe to close around 6,100. So, it is almost as if it was held up before expiry on Thursday to close around that 6,100 mark.
There were some strong stocks though. Sun Pharma’s good results and bonus announcement - those were the ingredients which led to that big 5 percent plus rally. Tata Motors and Hero Motors from autos, Coal India were some of the other winners on Wednesday.
However, not all was good. JP Associates had a bad ride, Ranbaxy continues to slide. Generally, the Bank Nifty, though it recovered a bit towards the end, was weak.
The bigger problem is the broader market, as we had far many more declining stocks compared to advancing names. So, the broader market bore more scars than the large cap index.
The rupee was a big talking point because that went down to 56.30 to the dollar, which is a bit scary, though stock markets brushed it off for the day that is fast emerging as a big headwind for a lot of global investors.
On the midcap side, high beta was punished on Wednesday. So, Housing Development and Infrastructure ( HDIL ) plummeted 8 percent on the back of a big loss on the cancellation of the Mumbai Airport project and that dragged down sentiment in names like Unitech , Indiabulls Real Estate and even DLF .
Astrazeneca after the very successful response to its offer for sale (OFS) on Tuesday and Sun TV were two stocks which stood out on the winning side. Overall wishy-washy day of trade, but at least the Nifty stood around 6,100 leading up to expiry on Thursday.
The road forward depends on flows and global expectations of liquidity, and whether they will tighten soon.
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