Greatness is nothing unless it be lasting.
After a great start on Monday, weakness did set in after all on Tuesday. The bulls expectedly failed to sustain the buying momentum. Key indices tumbled from a day's high even as Asian markets closed mostly higher.
To sum up the recent gains, FIIs have been buying, global markets have staged a smart comeback, No major bad news has hit Wall Street and currency fluctuations have ebbed to an extent.
The US markets ended in the red. The Dow Jones lost 115 points, or 1.5%. The S&P 500 fell 17 points, or 2%. The Nasdaq was down 40 points, or 2.5%. Asian markets are trading lower.
US President Barack Obama says his administration has a strategy in place to 'attack this crisis on all fronts' adding that there are no quick fixes.
"We'll recover from this recession, but it will take time, it will take patience, and it will take an understanding that, when we all work together, when each of us looks beyond our own short-term interest to the wider set of obligations we have towards each other, that's when we succeed," he said.
Back to our market, we expect the market to open flat and thereafter slide. Some volatility could set in ahead of tomorrow's F&O expiry. Given the recent rally, the bulls and the bears are pretty indecisive at this juncture.
Like the Sensex, the Nifty too will switch to a free float market capitalisation methodology. Investors may start making adjustments to their portfolios before the new formula comes into effect from June 26 ’09.
In other news in the media:
Reliance Industries and Cairn are expected to start production of natural gas from KG basin and crude oil from the Barmer field respectively in a month.
Kalpataru Power Transmission bagged 3 orders worth Rs4bn from the PGCIL for 765kv and 400kv transmission line projects.(BL)
MRPL will buy Cairn India’s initial output from its Barmer field.
DLF plans to book ~Rs20bn revenue from sale of 4.5mn sq ft of commercial space to the group company, DAL.
Tata Motors chairman, Ratan Tata, says job losses and redundancies would be inevitable unless British government provides credit support to JLR.
Government may soon allow NTPC to offer an additional 15% of electricity generated from all new plants to home states.
Indian markets ended with modest gains on Tuesday as key indices were unable to hold on to their gains. After surging past the 3000 mark, profit booking coupled with weak European markets dragged key indices from day’s high. The BSE benchmark Sensex slipped nearly 300 points and the NSE Nifty index declined almost 100 points from their respective day’s high.
The F&O segment recorded its highest non-expiry day turnover since January 2008. The F&O segment recorded a turnover of ~77,000cr and the total turnover was at ~94,000cr.
The BSE Sensex was up 47 points to close at 9,471 and the NSE Nifty was flat at 2,938.
Among the 30-components of Sensex, 16 stocks ended in positive terrain and 14 stocks ended in the red. HDFC Bank, ICICI Bank, HDFC, BHEL, Ranbaxy and Bharti Airtel were among the top gainers.
Reliance Industries shares gained by 1% to Rs1451. According to reports, the company has raised the marketing margin it will charge on selling natural gas from eastern offshore KG-D6 fields to US$0.15 per mmbtu from US$0.12 per mmBtu earlier. The scrip touched an intra-day high of Rs1472 and a low of Rs1442 and recorded volumes of over 1.9mn shares on BSE.
Crompton Greaves erased gains and slipped sharply by 9% to Rs122. The stock had surged after the board of directors approved Buy-back of fully paid Equity Shares of Rs2/- each, from the open market through the Stock Exchanges, at a price not exceeding Rs170/- per share, upto an amount of Rs2241.52mn being 25% of the total Paid-Up Capital plus Free Reserves as per the audited Balance Sheet of the Company for the year ended March 31, 2008.
Shares of Bajaj Hindusthan gained by a percent to Rs45.1 after the company announced that the board of directors would meet on April 01, 2009, to consider, issue of equity shares / convertible securities / warrants to the promoters on preferential allotment basis.
The scrip has touched an intra-day high of Rs47.2 and a low of Rs44.8 and has recorded volumes of over 1.2mn shares on BSE.
Shares of Vakrangee Softwares slipped by 0.5% to Rs23. The company announced that its board of directors would meet on March 25, 2009, to consider incorporation of 100% subsidiary at Philippines and setting up of STP (Software Technology Park) unit. The scrip touched an intra-day high of Rs24.6 and a low of Rs23 and recorded volumes of over 0.1mn shares on BSE.
Nagarjuna Fertilizers announced that the company has completed installation of the 450 MTPD Carbon Dioxide Recovery (CDR) Plant to meet the shortfall in CO2.
The plant is being commissioned on March 24, 2009 and commercial production shall be declared to be effective from March 24, 2009.
The stock ended slipped 3% to Rs15.2 after hitting an intra-day high of Rs16 and a low of Rs15.10 and recorded volumes of over 1mn shares on BSE.
Looking at the offloading towards the end, the slide may continue further. There could be wild swings for sure ahead of F&O expiry also the political uncertainty would continue to take its toll over the market sentiment.