SENSEX NIFTY
Jan 24, 2013, 08.32 AM IST | Source: CNBC-TV18

Underperformance of mid-caps a worry area for market

It was a very volatile session. At one point the Nifty was down to 6020 level. It looked like it was breaking down particularly the broader market which looked quite shaky.

It was a very volatile session. At one point the Nifty was down to 6020 level. It looked like it was breaking down particularly the broader market which looked quite shaky. Then in the last 45 minutes of trade we saw a recovery which pulled it back up to 6060 levels. So, it was a bit of an intraday yo-yo for the market today, explains CNBC-TV18’s managing editor Udayan Mukherjee in an end-of-the-day round-up of the market.

The recovery came from Bharti which did well on news that they were cutting discounts on many of their tariff plans. Banks turned around a bit towards the end. Names like SBI, HDFC, ICICI Bank turned around. ITC and Tata Power had a good day.

Also read: See market rangebound between 5950-6100: Udayan

However, no such luck for HUL. For the second day running, the stock was down 4 percent. It was off the lows of the morning. It went to Rs 450 in the morning and then pulled back to close around Rs 460.

Stocks like JP Associates did quite badly. Some of the oil stocks have been coming off after the spectacular run. Names like BPCL, ONGC and IOC have all corrected. A couple of autos like Tata Motors and Bajaj Auto have also looked quite weak today.

The broader market was not good. There was a bit of a recovery towards the end, but the advanced decline ratio continues to be very poor. The market breadth was negative and the mid-cap index was down nearly one percent by the end of the day.

Some big losers, like HDIL was the talking point in the afternoon after the stock collapsed. The promoters came out and clarified, but it still was a big loser today.

Couple of the banks reported. Syndicate Bank and Karnataka Bank both those stocks were big losers. Polaris continues to slide or continued to slide after yesterday’s drubbing despite the management commentary.

There were lot of infrastructure stocks like IRB, Crompton Greaves and GMR looking quite weak today. Some of the smaller banks like Allahabad Bank, Vijaya Bank and UCO Bank were also down.

In all there were some good results from media sector, Zee Entertainment and Sun TV. Both those stocks were significant gainers today as was JSW Energy which had good earnings to report.

Over all, it was a mixed day of trade. Bounce back in the large caps but mid-caps continue to underperform which remains a worry area for the market.

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