Mumbai: The markets are trading flat and getting some buying support from metal, oil & gas, capital goods and power stocks. Some recovery has been seeing in few pharma, auto, FMCG and technology stocks. However, realty stocks are still under selling pressure. Market breadth has improved a lot but still negative; about 1146 shares are advancing while 1688 shares declining. Nearly 293 shares are unchanged.
The Nifty is trading in positive terrain since last one hour of trade and holding above 4200 mark due to support from Reliance, ONGC, Bharti Airtel, TCS and BHEL. However, the Sensex is witnessing a bit of volatility.
At 12:19 pm, the Sensex was down 44 points at 14,061 while the Nifty up 20 points at 4,211. The Nifty June Futures was trading at 5 points discount and July Futures at 41 points discount.
BHEL, TCS, Bharti Airtel, Sterlite Ind, Idea Cellular and BPCL are top gainers while HDFC, Infosys, Tata Motors and Grasim losers.
Markets @ 11:29 am: Markets flat; Nifty hovering around 4200
The markets have recovered from their day's low but still witnessing some selling pressure with mild volatility. Realty, auto, banking, technology and FMCG stocks are in bears' grip while some pullback has seen in select oil & gas, metal, capital goods, power and pharma stocks, which are giving support to the markets. Market breadth has improved to some extent but still weak; about 927 shares are advancing while 1914 shares declining. Nearly 286 shares are unchanged.
The Nifty is hovering around 4200 and the Sensex stands above 14000 mark. At 11:29 am, the Sensex was down 68 points at 14,038 whereas the Nifty up 6.5 points at 4,197. BSE Midcap and small cap indices are down a bit.
Reliance Industries, Bharti Airtel, ONGC, TCS, BHEL and Idea Cellular are supporting both indices while Infosys, HDFC, ICICI Bank, ITC and Wipro are dragging the markets.
Realty, IT and Bankex are down 1-2%, FMCG and Auto fell half a percent. However, Oil & Gas, Metal, Capital Goods and Power indices rose around 0.8-1.5%.
Top gainers are Bharti Airtel, TCS, Ranbaxy Labs, Idea Cellular and BPCL while HDFC, Infosys, Grasim and Nalco losers.
Markets @ 10:33 am: Mkts off day's low; Banks, Realty, Auto, IT stks plunge
The markets have shown smart pull back after heavy sell off in early trade but still trading in negative terrain with some volatility. It is just a reaction to the RBI's move, which hiked Repo rate and CRR by 50 bps each yesterday. The Sensex is still hovering around 14000 mark while the Nifty managed to claw back above 4100. Banking, realty, auto and technology stocks are taking huge beating.
At 10:33 am, the Sensex was down 108 points at 13,997 and the Nifty down 12 points at 4,178. The Nifty June Futures was trading at 3 points discount and July Futures at 40 points discount.
Experts believe that there will be more rate hike from RBI in next six months to contain inflation. They expect that private as well as public banks will hike lending rates by 75-100 bps. This will reduce demand in auto, realty sectors due to interest rate hike from banks.
HDFC Bank, ICICI Bank, HDFC, Hero Honda and Nalco are top losers while Ranbaxy Labs, BHEL, ONGC, Tata Comm and NTPC top gainers.
Reliance Capital, Niraj Cement, Reliance Industries and L&T are most active counters on the bourses.
BSE Realty and Bankex fell over 2.5%, IT 1.9%, Auto 1.3% and FMCG 0.8%. However, Some buying has seen in select oil & gas, metal, pharma and capital goods stocks.
GMR Infrastructure jumped up nearly 4% after the company has acquired 50% stake in US based power generation company, Intergen for USD 1.1 billion.
Spice Communication spurted up over 26% as Idea Cellular bought 40.8% stake in the company at Rs 77.30 per share. Idea Cellular gained over 3%, which approved merger in the ratio that 49 Idea shares for every 100 shares held in Spice Comm.
Markets @ 9:56 am: Mkts crash in opening trade on RBIs move
RBIs move of hiking repo rate and CRR by 50 bps each has spooked the markets in opening trade. Rate sensitive sectors like banks, realty and auto have knocked down very badly. Gilt prices also tumbled in the morning trade. The Sensex and Nifty have hit new-2008 lows. All BSE indices are trading in red.
The Nifty slipped below 4100 for the first time since August 22, 2007. At 9:56 am, the Sensex was down 361 points at 13,745 and the Nifty down 95 points at 4,096. The CNX Midcap was down 120 points at 5,443.
Market breadth is negative; 111 shares are advancing while 734 shares declining on the NSE.
Amongst frontliners, DLF, Tata Motors, ICICI Bank, Infosys, Tata Steel, L&T, ONGC, HDFC, HUL, Maruti, Power Grid, Unitech, Ambuja Cements and BHEL slipped. However, TCS, Ranbaxy and Grasim gained.
BSE Bankex is down -2.8%, Realty -3.4%, Auto -2.2%, IT, Capital Goods, FMCG, Power and Healthcare indices are down over 1%.
RBI has hiked both rates in the late evening of Tuesday, which is one of the measure to contain inflation. CRR will be hiked in two phases of 25 bps each, first from July 5 to 8.50% and next from July 19, 2008 to 8.75%, and repo rate hike of 50 bps to 8.5% with immediate effect. Experts believe that this is not yet over and expect one more rate hike. They also see inflation in double digit for the next few weeks.
Asian markets were trading mixed; Shanghai was up 3%, Straits Times 0.24% and Taiwan 0.7% while Nikkei down 0.8%, Kospi 0.2% and Jakarta 1%.
US markets ended lower. The Dow Jones lost 34.93 points, or 0.29%, to 11,807.43. The Standard & Poor's 500 index fell 3.71 points, or 0.28%, to 1,314.29, and the Nasdaq composite index declined 17.46 points, or 0.73%, to 2,368.28.
Market cues:
- RBI hikes repo rate by 50 bps with immediate effect
- RBI hikes CRR by 50 bps in 2 stages to 8.75 per cent
- FIIs net sell $ 153.9 mn in equity
- NSE F&O Open Interest down by Rs 800 cr at Rs 81,863 crore
- Left-UPA meet today to discuss nuke deal
F&O cues:
- Marketwide rollover at 43.1 per cent Vs 26.5 per cent a day ago
- Nifty rollover at 44.7 per cent Vs 31 per cent a day ago
- Aggressive short rollover seen in banking and real estate stocks
- Futures Open Interest down by Rs 566 crore and Options Open Interest down by Rs 234 crore
- Nifty net Futures up 3.5 per cent in Open Interest; add 15 lakh shares in Open Interest
- Nifty June Futures at 19 pts discount Vs 1.65 premium a day ago
- Nifty July Futures at 50.7 pts discount Vs 16 pts discount a day ago
- Nifty Open Interest Put-Call ratio at 1.08 Vs 1.18
- Rollover of Option to lower levels
- Nifty Puts shed 17.2 lakh shares in Open Interest
- Nifty June 4500 Put shed 17.7 lakh shares in Open Interest
- Nifty June 4200 Put sheds 10 lakh shares in Open Interest
- Nifty June 4400 Put sheds 6.5 lakh shares in Open Interest
- Nifty June 4100 Put shed 4.2 lakh shares in Open Interest
- Nifty June 4500 Call sheds 4.7 lakh shares in Open Interest
- Nifty July 4100 Put add 9 lakh shares in Open Interest
- Nifty July 4000 Call add 7.7 lakh shares in Open Interest
- Nifty June 4300 Call add 7.6 lakh shares in Open Interest
Comments
0 comment