The News International Team
It was a consolidation day for equity benchmarks after over a percent rally in previous session on prospects of huge investments by China in India. The broader markets too were rangebound.
The 30-share BSE Sensex fell 21.79 points to 27090.42 while the 50-share NSE Nifty rose 6.70 points to close at 8121.45.
Though the market went near record high during the day, it could not hit that level due to lack of triggers as it already priced in all recent events like China visit etc. The next triggers for the market would be US visit (on September 30), July-September quarter earnings (in October) and Maharasthra & Haryana state elections, say experts.
Staying bullish stance in medium-to-long term, Arvind Sanger, managing partner at Geosphere Capital Management, says announcements post recent diplomatic visits and various investment commitments made by Japan and China are definite positives, but at the end of the day market lives on “not just big picture announcements but actual numbers.
“The September quarter earnings are around the corner. And they are going to be moderately better than the June quarter but not hugely so. And therefore I think the market needs to digest how much they have moved,” Sanger said.
Meanwhile, Timothy Moe of Goldman Sachs remained overweight on India with a Nifty target of 9,000 by September 2015.
For the week, the Sensex was up 0.1 percent and Nifty gained 0.2 percent while CNX Midcap fell 1.5 percent. The market may be volatile next week as derivative contracts for September series will expire, say experts.
IT and healthcare stocks (so called defensives) along with private banking and financial stocks led the support to market whereas PSU banks, capital goods and oil & gas were under pressure.
TCS kept its top position in the buying list, up 2.7 percent followed by HCL Technologies, Tech Mahindra and Wipro with 1-2 percent gain.
Top private sector lenders ICICI Bank, HDFC Bank, Axis Bank and housing finance company HDFC gained 0.3-1 percent. Drug maker Cipla rose a percent after the company granted Salix Pharmaceuticals exclusive rights for certain patent applications in the Rifaximin Complexes patent family.
Zee Entertainment gained 2 percent on entering into Nifty 50 today while United Spirits fell 1.7 percent on exclusion from the same index.
However, shares of Larsen and Toubro, ONGC, Reliance Industries, State Bank of India, Tata Motors, Hindustan Unilever and Mahindra and Mahindra saw profit booking, down 1-2.5 percent.
Two-wheeler maker Hero Motoorp was down 1.6 percent on reports that two private equity investors such as GIC and Aberdeen are planning to sell their stake in company worth over Rs 5600 crore.
Among midcaps, Jindal Saw, Dishman Pharma, JK Tyre, India Cements, Tata Elxsi, HCL Infosystems, Escorts and SREI Infra rallied 3-12 percent. However, Suzlon Energy, Jaiprakash Associates, IDBI Bank, Jaypee Infra, NBCC, IRB Infrastructure, Ashok Leyland, Voltas, Arvind, IOB and Exide Industries fell 3-10 percent.
Declining shares outnumbered advancing ones by a ratio of 1616 to 1434 on the Bombay Stock Exchange.