The News International Team
It was another day of consolidation for the equity benchmarks on Friday despite positive global cues. Frontline indices closed lower for the day as well as for the week.
The 30-share BSE Sensex declined 104.72 points to close at 28458.10 and the 50-share NSE Nifty fell 26.10 points to 8538.30 weighed by technology, healthcare, select auto and banks stocks.
Experts remained optimistic about the market in medium to long term but they expect some correction in the near term (may be before the Budget). As far as broader space is concerned, they advise staying with quality stocks and selling non-quality stocks.
Deven Choksey of KR Choksey feels the market would remain in consolidation phase ranging from 8,400 to 8,800 in December series.
In January, Ajay Srivastava of Dimensions Consulting expects the market to correct as he feels the market is getting too optimistic about the macro recovery and about the upcoming Budget.
For the week, the Sensex declined 0.8 percent and Nifty fell 0.6 percent whereas the CNX Midcap outperformed, climbing 2 percent.
On the global front, Asian markets closed higher with the Shanghai rising over a percent and Hang Seng gaining 0.7 percent. All eyes are now on the US jobs data that is be announced later today. European markets like France’s CAC and Germany’s DAX climbed over a percent while Britain’s FTSE was up 0.5 percent (at 16 hours IST) after ECB meet and ahead US jobs data.
Back home, India’s largest lender State Bank of India cut interest rates of three retail term deposits by 25 basis points. The management told CNBC-TV18 that the bank expects a positive impact on margins, saying liquidity in the system is adequate and that base rates will be cut in CY15. The stock was down 0.8 percent.
Reliance Industries was also in focus today after the company signed an MOU with Mexican state-owned company Petroleos Mexicanos. Both companies together will assess upstream opportunities in Mexico and evaluate oil & gas opportunities in the international markets. The stock closed flat.
State-run steel maker SAIL was down 3 percent on the day of offer for sale issue. The 20.6 crore shares issue was fully oversubscribed and the floor price was Rs 83 apiece. The government’s stake will reduce to 75 percent from current 80 percent.
Shares of TCS, Infosys, Sun Pharma, Wipro, Dr Reddy’s Labs and Cipla (so called defensives) were down 1.5-2 percent. ONGC, Hero Motocorp and Hindalco Industries declined 1-1.5 percent.
However, ITC added another 2 percent (over 5 percent rally in previous session) as sources said the government is unlikely to ban sale of loose cigarettes. Mahindra and Mahindra and Sesa Sterlite gained 2 percent too.
In the broader space, Mangalore Chemicals, Zuari Global, Zuari Agro and Deepak Fertilizers gained 3-6 percent as the fight for taking control of Mangalore Chemicals intensified. The Adventz Group made a fresh open offer for Mangalore Chemicals via its arms Zuari Fertilizer and Zuari Agro. The offer was for 25.90 percent stake at Rs 91.92 apiece.
Hindustan Construction Company was up 4.3 percent on selling annuity road project Nirmal BOT in Andhra Pradesh by its subsidiary HCC Concessions.
Pipavav Defence was locked at 10 percent upper circuit and ARSS Infrastructure gained 4 percent after BSE revised circuit filter from 5 percent to 10 percent. Radico Khaitan climbed 8.5 percent after BSE increased circuit filter from 5 percent to 20 percent.
SpiceJet plunged nearly 14 percent as the Airports Authority of India decided to withdraw credit facility relating at all airports in the country. The move has been spurred by the mounting dues that SpiceJet has to pay the AAI. Reports suggest that the airline company reduced its fleet size to 22-24 Boeing planes.
About 1379 shares advanced while 1585 shares declined on the Bombay Stock Exchange.
Disclosure: Reliance Industries has acquired management control of Network18, which owns TV18 Broadcast and moneycontrol.com