Moneycontrol
Last Updated : Mar 14, 2018 05:23 PM IST | Source: Moneycontrol.com

Banks help market recover in late trade but Sensex, Nifty fail to close in the green

Nifty Bank index was back above 200-DMA, recovering 360 points from day's low to end 113 points higher.

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The market recovered sharply from day's low driven by short covering in banks but the benchmark indices failed to close in the green.

The 30-share BSE Sensex fell 276 points intraday following weakness in Asia and US and amid increase in the PNB fraud amount but the recovery in banks in later part of the session helped the index close off day's low.

The index was down 21.04 points at 33,835.74 while the 50-share NSE Nifty manages to close above 10,400 amid volatility, falling 16 points to 10,410.90.

"The market has been in a range after recent sharp correction. We believe that most of the price damage has been done and now it might take some time to consolidate," Gaurav Dua, Research Head, Sharekhan, told in an exclusive interview to Moneycontrol.

"We are asking clients to not get carried away with the noise and look at the longer term. For investors, I don't think there is a lot of risk here," he said.

Nikhil Kamath, Co-Founder and Head of Trading, Zerodha also said, "We would advocate entering fresh longs at this juncture."

On the global front, Asian markets closed lower following the sacking of US Secretary of State Rex Tillerson and amid talk of potential US tariffs against China. Nikkei, Hang Seng, Shanghai, ASX 200 and Kospi were down 0.3-0.9 percent.

European markets recouped opening losses to trade mildly higher. France CAC, Germany DAX and Britain FTSE were up 0.3 percent each at the time of writing this article.

Back home, WPI Inflation for the month of February eased to 2.48 percent compared to 2.84 percent in previous month.

 

Nifty Bank index was back above 200-DMA, recovering 360 points from day's low to end 113 points higher.

Nifty PSU Bank index also recovered sharply, rising 1.75 percent at close despite the Punjab National Bank fraud amount increased to 13,640 crore from earlier estimate of 12,700 crore.

IDBI Bank, Andhra Bank, OBC, Union Bank, Syndicate Bank, Allahabad Bank, Indian Bank, Canara Bank, Bank of Baroda, Yes Bank and PNB rallied 1-10 percent.

ICICI Bank, SBI, HDFC Bank, Axis Bank and IndusInd Bank gained 0.2-0.9 percent.

IOC shares fell 3 percent as the stock will trade ex-dividend from Thursday onwards. HDFC, Bharti Infratel, ONGC, Hero Motocorp and Tata Steel among others were down 1-3 percent.

The broader markets outperformed frontliners, with the Nifty Midcap index rising 0.4 percent.

TV Today, Network 18, TV18 Broadcast, Zee Media, Jaiprakash Associates, Kwality, KPIT Technologies, Fortis Healthcare, Himadri Chemicals, United Spirits, VST Industries and Venky's gained up to 18 percent. PFC, REC, Amtek Auto and Alok Industries fell up to 5 percent.

Fortis Healthcare advanced 4 percent as Yes Bank acquired 17.3 percent stake in the company.

(Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd and publishes Moneycontrol.com)
First Published on Mar 14, 2018 04:30 pm
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