Although the market breadth was negative, it has recovered from that of opening session, as buying support emerged for small-cap and mid-cap stocks.
At 12:35 IST, the barometer index was down 96.82 points (0.71%) to 13676.88. After declining to an intra-day low of 13588.51 in early trade, the Sensex recovered smartly as buying support emerged at lower level. It moved in a range of 13588.51 and 13690.67. Weakness across global bourses and fall in Indian ADRs on Monday weighed on the bourses in early trade.
The total turnover on BSE was Rs 2029 crore
Market breadth was negative with on BSE with 1044 shares advancing as compared to 1285 that declined. 77 remained unchanged. In early trade, the breadth was quite weak.
Among the Sensex pack, 22 declined while the rest advanced.
Frontline IT stocks were the worst hit on profit booking. Satyam Computers (down 1.95% to Rs 455.45), Wipro (down 2.68% to Rs 586) and Infosys (down 1.94% to Rs 2184) declined. IT pivotals witnessed an across the board fall following decline in their ADRs on Monday. Majority of the Indian ADRs ended in the red on Monday in a weak US market. Infosys ADR lost nearly 3% to $51.98, Satyam Computer ADR shed 3.2% to $22.99 and Wipro ADR lost 1.9% to $15.25. Rising rupee against the US dollar is a cause for concern for IT companies, which derive a lion’s share of their venue in dollar. The rupee hit a two-week high on Monday 27 November.
Index heavyweight Reliance Industries (RIL) rose 0.85% to Rs 1262.45 on 4.73 lakh shares. It has recovered from its low of Rs 1242.20 in early trade. There are reports that RIL will sell piped gas at discount to LPG.
Hero Honda was the top gainer, up 0.82% to Rs 739.10 on 81025 shares.
Among the side counters, Sadbhav Engineering jumped 5.86% to Rs 510.85 and PBA Infrastructure gained 2.6% to Rs 142 after Sadbhav Engineering said its joint venture with PBA Infrastructure has secured a construction contract worth Rs 297 crore. Sadbhav has a 51% stake in the joint venture and PBA holds 49%.
Torrent Power the umbrella company of the newly amalgamated generation, transmission and distribution businesses of the Torrent Group was trading at Rs 69 on BSE. The stock was listed on the bourses today. The stock hit a low of Rs 55.50 and high of Rs 76.30. Early volumes in the scrip were a huge 58.64 lakh shares on BSE. Torrent Power (TPL) is the umbrella company of the newly amalgamated generation, transmission and distribution businesses of the Torrent Group. Three companies Torrent Power AEC (TPAL), Torrent Power SEC (TPSL) and Torrent Power Generation (TPGL) were merged in TPL as a part of a scheme of arrangement. TPL’s equity capital is Rs 472.44 crore with face value of Rs 10 each.
Natco Pharma rose 2.62% to Rs 119.25 on reports that it has launched Pemnat (pemetrexed) drug for treatment of non-small cell lung cancer.
TVS Motor was down 0.75% to Rs 99.40. As per reports, the company plans to invest $100 million over the next 3 year to set up a production base in Indonesia.
US stock indexes sank on Monday, registering their worst day in months, amid concern about Google Inc.'s valuation and doubts about holiday spending after a disappointing sales estimate from Wal-Mart Stores Inc. In addition, downward pressure on the dollar for a fourth straight day hurt demand for US investments, while a rise in crude oil prices above $60 a barrel added to concerns about consumer spending. The Dow Jones industrial average fell 158.46 points, or 1.29%, to end at 12,121.71. The Standard & Poor's 500 Index lost 19.05 points, or 1.36%, to finish at 1,381.90. The Nasdaq Composite Index slid 54.34 points, or 2.21%, to close at 2,405.92.
Mutual funds were net sellers for the second day in a row on Friday 24 November. Mutual funds sold shares worth a net Rs 212.73 crore on 24 November compared to their outflow of Rs 276.24 crore on 23 November.