After a consolidation, equity benchmarks ended Friday’s session on a flat note ahead of July industrial output data due later today. Capital goods, metals and private banks wiped out morning gains while technology and select pharma stocks supported the market.
The 30-share BSE Sensex settled at 25610.21, down 11.96 points after rising more than 200 points in early trade. The 50-share NSE Nifty rose 1.20 points to 7789.30 after seeing an intraday high of 7864.85.
Prashant Jain of HDFC MF says both economy and market are in a transition phase .
Nifty is likely to consolidate around 7800 in the coming week awaiting the outcome from the September 17 FOMC meeting, says ICICIdirect.
The broader markets outperform benchmarks with the BSE Midcap rising 0.17 percent and Smallcap gaining 0.63 percent. The market breadth remained positive throughout the session; about 1478 shares advanced against 1182 shares declined on the Bombay Stock Exchange.
For the week, the Sensex gained 1.6 percent and Nifty rallied 1.7 percent following stability in global peers (especially in China) after sharp slide in previous two consecutive weeks.
Global markets remained cautious ahead of Federal Reserve’s two-day meeting that will begin on September 16. In Asia, Shanghai closed flat while Nikkei and Hang Seng fell marginally. European markets like France’s CAC and Germany’s DAX dropped 1 percent while Britain’s FTSE fell 0.4 percent.
Opinion is divided on whether the Fed will raise rates on Thursday, says Dipen Shah, Head of Private Client Group Research, Kotak Securities. He feels a rate hike by US Fed is discounted by the markets to some extent.
On the home turf, he says post FOMC meet, sentiments will also be driven by what the RBI does at its policy review meeting on September 29.
Oil prices declined more than 2 percent after Goldman Sachs cut its crude forecasts, citing global oversupply and concerns over the Chinese economy, and after Saudi Arabia dismissed the idea of an oil producer summit. Goldman reduced its 2015 US crude oil estimate to USD 48.10 a barrel, down from USD 52. Meanwhile, the International Energy Agency raised its forecast for 2015 world oil demand by 1,10,000 barrels per day to a five-year high of 1.71 million bpd.
Back home, Tata Motors saw profit booking after yesterday’s rally, down 2.5 percent. Tata Steel, BHEL, GAIL and Vedanta were other prominent losers, down 2-3 percent followed by L&T, Reliance Industries and HDFC Bank with marginal losses.
However, Infosys was up 1 percent after it announced strategic technology partnership with Association Of Tennis Professionals. Chief operating officer, Pravin Rao, while addressing analysts meet, says the company is making corrections in its pricing strategy to win more deals. He warned margins will be under pressure specifically in larger deals for the first 12-18 months, before improving later.
Sun Pharma rose 0.6 percent after the company decided to sell its Ireland facility. HDFC, SBI, Wipro, Dr Reddy’s Labs, ONGC and HUL gained 0.5-1 percent.
In the broader space, Elder Pharmaceuticals surged 20 percent on a media report that the healthcare company may sell some assets to reduce debt. After market hours, Elder Pharma says it is in talks with prospective lenders w.r.t. restructuring plan.
Amtek Auto climbed 54 percent after preferential allotment of Rs 75 crore to promoters. However, Brooks Laboratories lost 10 percent after Capital market regulator SEBI on Thursday barred company and its top executives from accessing securities markets for five years.