Indian market not participating in global up moves: Udayan

Tuesday saw another breakdown in the market and a big setback to expectations of any kind of pullback rally, says Udayan Mukherjee, managing editor, CNBC-TV18. 

In morning trade, the Nifty went up to about 5,570 levels, raising hopes that the market might be able to get back to the 200 day moving average (DMA). Not only did that not happen, the index closed below 5,500. It was a bad day for both large-caps and midcaps. Even on days when global cues are strong, the Indian market did not move up, which is disturbing.
Also read: That sinking feeling: Are we in a bear market already? Below is the edited transcript of Udayan’s market wrap-up The large cap names were the big losers, like Oil and Natural Gas Corporation (ONGC), and also Infosys which has had a great run over the last one month is beginning to look nervous again as it gets closer to its results. From the banking space, State Bank of India (SBI), Punjab National Bank (PNB) and Kotak Mahindra Bank all looked quite weak. Bharat Heavy Electricals Limited (BHEL) rallied a bit on Monday but on Tuesday it was back to Rs 178. ITC had a bit of a fall, as did Reliance Industries. So, it has been a bad day for large caps almost without exception. Just a couple of names like Tata Motors and Cairn India held out.  Midcaps actually started the day very well. In the morning, the midcap index was up 1 percent. It closed 1 percent down, so intraday there was a big swing back in the breadth of the market. In fact, the advance-decline ratio was three declining stocks nearly to one advancing share. There were lots of losers, the most prominent among them was TVS Motors which had rallied 10 percent on Monday on the expectations from the BMW deal, was down 11 percent on Tuesday.  Infrastructure names like GMR and IVRCL were down. Pantaloon had a bad day, as did Shree Renuka Sugars from the recent excitement on the levy quota going away. So, it was a bad day for midcaps. What is most disturbing is that India has begun or is aggravating its underperformance compared to other markets. Today was amongst or probably the worst market in Asia. So, even on days when there is some global strength, India is just not participating on those up moves at all. So, it was very difficult day for the market.