The News International Team
Equity benchmarks snapped three-day losing streak as the Nifty closed way below the 8300 level on Chinese concerns and profit booking in banking & financials, metals, oil & gas stocks.
After rising nearly 1000 points in previous three consecutive trading sessions, the 30-share BSE Sensex declined 195.33 points to 27506.46 today while the 50-share NSE Nifty fell 57 points to 8267 ahead of expiry of December derivative contracts (on Wednesday). The BSE Midcap and Smallcap indices were down 0.3-0.6 percent.
The consolidation may continue for some more time due to global cues, feel experts. They see Nifty moving in a range of 8200-8500 levels in near term, but they believe the market may see new highs before the Budget.
Andrew Holland expects one more round of volatility in global commodity and forex markets in January, and sees that feeding into equity markets everywhere. He sees the Nifty settling around 8300 near term.
He says lack of any major Bills being passed in this session of Parliament will be viewed negatively by investors, as it will delay the much anticipated recovery in the economy, and by extension, the uptick in corporate earnings.
Meanwhile, the rupee was also under pressure due to month end dollar demand from oil companies, down 11 paise to 63.35 a dollar (at 16 hours IST).
In two state elections results, voters gave a big thumbs up to Narendra Modi magic yet again. BJP and allies are set to form the government in Jharkhand while there was big shift in Jammu & Kashmir politics. The People’s Democratic Party was only marginally ahead with BJP a close second in J&K.
Globally, markets were mixed. Shanghai plunged 3 percent after China’s services trade deficit widened in November to USD 20.8 billion from USD 17.2 billion deficit in October. European markets like CAC, DAX and FTSE were flat.
Back home, metals saw major selling pressure post China data. Sesa Sterlite lost 3 percent followed by Tata Steel with 2 percent loss. Hindalco Industries declined 1.7 percent.
Index heavyweights dragged the market down today. Shares of ICICI Bank, Infosys, HDFC, L&T, Reliance Industries, Tata Motors and ONGC were down more than 1 percent. Tata Power was down 3 percent.
HCL Technologies fell over 3 percent after the IT major said it expects a cross currency headwind which will impact second quarter revenues by 210 basis points. Another weak trigger for IT majors today was that global banks like UBS, JPMorgan and Goldman Sachs may remove IT allocation from their annual budgets.
However, NTPC outperformed, up 3 percent on signing term loan worth Rs 2,000 crore with Bank of Baroda. Cipla was up 1.8 percent after its South African subsidiary Cipla Medpro bagged Rs 1,096.6 crore order from South Africa Government.
Shares of Bajaj Auto and Bharti Airtel gained 2 percent and 1.7 percent, respectively.
In the broader space, Madhucon Projects surged 15 percent as the company will divest 74 percent stake in Agra-Jaipur Expressways. Mukand gained 11 percent as the company will transfer special and alloy steel business to its arm via slump
sale for an enterprise value of Rs 1,590 crore.
Gujarat Pipavav Port was up 6 percent on entering into arrangement with NYK Auto Logistics (India) while Jet Airways was up 2 percent on getting USD 150 million syndicated loan from financial institutions in the Gulf
About 1073 shares advanced while 1850 shares declined on the Bombay Stock Exchange.