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Last Updated : Nov 22, 2013 10:47 PM IST | Source:

Sensex halts steep fall, ends flat; ONGC soars, ITC weakens

Nervousness also increased after the muted inflow of foreign money in last two sessions. Foreign institutional investors were the net sellers on Thursday for the first time in last 32 sessions.

Moneycontrol Bureau

The market closed Friday’s rangebound session on flat note with a negative bias, taking a slight breather after a steep 662-point fall seen in previous two sessions.

However, the market rallied more than 150 points in intraday trade today, but profit booking in last hour of trade washed out those gains. Investors remained cautious after Federal Reserve’s October meeting minutes indicated that tapering may happen in the coming meetings.


The Sensex declined 11.66 points to close at 20,217.39 and the Nifty fell 3.60 points to 5,995.45.

Nervousness also increased after the muted inflow of foreign money in last two sessions. Foreign institutional investors were the net sellers on Thursday for the first time in last 32 sessions; they sold Rs 59.8 crore worth of equity shares yesterday while their buying was worth more than Rs 23,700 crore of shares in consecutive 31 sessions.

According to Shane Lee, Director-Economist of Equity Research at CIMB, the markets still aren’t prepared for tapering. He feels, going ahead, there will be a lot of capital outflow pressures on a lot of the Asian countries. Twin deficit nations like Indonesia and India for example will face more pressure and economic effect will be larger, he adds.

For the week, the Sensex lost 0.9 percent and the Nifty dropped 1 percent.

Shares of Tata Motors, Sesa Sterlite and Bajaj Auto were the major losers in the Sensex, falling between 2-3 percent.

Top lenders State Bank of India and ICICI Bank lost over 1 percent while their rival HDFC Bank was up 0.7 percent. Index heavyweights ITC and Reliance Industries were down 1.4 percent and 0.5 percent, respectively.

However, ONGC was the star with 2.8 percent gains followed by GAIL, Tata Steel, HDFC and L&T with around 2 percent gains.

Stocks in Focus

Shares of ACC and Ambuja rallied over 2 percent each after Ambuja Cements got shareholders' nod for the Holcim deal. The second phase of voting will be on November 23 during the EGM.

Cairn India climbed 3 percent as a subsidiary of London-listed Vedanta Resources will consider share buyback on November 26.

Citi has a buy rating on Info Edge for target price of Rs 458. The report says is aiming to defend growth in market share. The stock jumped over 6 percent.

United Spirits too saw buying interest, gaining 5 percent after ICRA revised rating on company's term loans to BBB- (stable) from D. The Office of Fair Trading's will review Diageo Plc and United Spirits deal on Monday, so all eyes are on that decision.

Elder Pharma surged as media reports indicated that Torrent Pharma is in talks to buy Elder's India business.

The board of directors of Dabur India passed resolutions for increase in the investment limit for foreign institutional investors upto 30 percent of the paid-up equity share capital of the company. The stock was unmoved by this news.

Meanwhile, the rupee closed at 62.87 against the US dollar, up 6 paise from previous close.

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First Published on Nov 22, 2013 04:58 pm
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