Markets ended flat, amid a choppy trading session, weighed down by profit taking in select index heavyweights. However, the broader markets outperformed the benchmark share indices as investors turned their focus to mid-cap and small-cap shares available at attractive valuations.
The activity in India’s services sector expanded at its fastest rate in five months in November on new order flows, but hiring declined for the first time in four months, showed the widely-tracked HSBC purchasing managers’ index (PMI) data released on Wednesday.
The index rose to 52.6 points in November against 50 in the previous month. A reading at 50 separates expansion (above 50) and contraction (below 50).
Meanwhile, foreign institutional investors were net buyers in Indian equities worth Rs 107 crore on Tuesday, as per provisional stock exchange data.
The dollar marked a fresh seven-year high against the yen on Wednesday, which helped lift the Nikkei to a similar closing record, while oil prices recovered on news of a drop in US supply.
Japan’s Nikkei stock average finished 0.3% higher, off its session highs but still closing at its highest level since July 2007 and China’s Shanghai Composite ended 0.6% higher. However, Hang Seng and Straita Times indices ended down 1% and 0.6% each.
European shares were trading marginally higher on Wednesday following the bullish trend set by markets in Asia and the U.S. CAC 40, FTSE and Dax were up between 0.1-0.3%.
Sectors & Stocks:
BSE Auto index was the top gainer up 1.3% followed by Power, Capital Goods, Oil & Gas and Realty indices trading higher by 1% each. However, BSE IT and Teck indices lost sheen and were down 0.2%.
BHEL gained around 3%. The company announced the successful commissioning of India’s first phase shifting transformer at Kothagudem Thermal Power station in Telangana. L&T ended with marginal gains.
Auto shares ended mixed. M&M recovered from yesterday’s lows and is ended with a gain of more than 1.4%. Tata Motors ended flat. The company’s prized acquisition Jaguar Land Rover has started to build a plant in Brazil. Maruti Suzuki gained around 1% as the depreciation of yen is likely to benefit the company.
SBI ended with marginal losses. Finance Minister, Arun Jaitley informed the parliament about goverment’s plans to decrease its stake in public sector banks to 52% in a phased manner.
Axis Bank gained more than 1% while HDFC Bank and mortgage lender HDFC lost 1% and 1.9% each.
Sesa Sterlite, NTPC, HUL and Coal India were some of the prominent names in green among others and gained between 0.5-2%.
Cigarette maker and Index heavyweight ITC shed nearly 0.7% in today’s trade.
Shares of Nestle India were up nearly 2% after the board of directors of the company announced payout of the third interim dividend for 2014.
Essar Oil spurted 20% on back of heavy volumes on Bombay Stock Exchange (BSE).