Markets volatile but dreary

Today's major news

March IIP at 13.5%

Reserve Bank of India eases external commercial borrowing norms for infrastructure finance companies

Bajaj Auto’s Q4FY2010 net up over three times; the stock closed 1.02%
higher

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Global signals

European stocks advanced on Wednesday on the back of strong banking results that boosted financial stocks and austerity measures announced by Spain. As of writing of this report, FTSE 100 (London) was trading marginal 0.05% higher while DAX (Germany) was trading over 1% up.

Asian indices except Nikkei (Japan) and Kospi (Korea) closed higher. SGX Nifty closed 20 points up.

US stock futures signal higher opening at Wall Street as Europe debt fears eased after Spain announced tough measures to cut its fiscal deficit. CISCO will be in focus as it is due to announce its quarterly earnings later in the day.

Indian indices

Indian indices rebounded from yesterday’s losses and edged higher in a rather volatile session. Despite a lower than expected IIP readings for March (13.5%), the indices closed higher as European markets rebounded from yesterday’s losses after Spain announced tough measures to cut its fiscal deficit and buying in health care and fast moving consumer good (FMCG) stocks in afternoon session.

Sensex that opened at par i.e. 17141 nudged higher in the opening trades. The index had a roller coaster ride for the better part of the day as it hovered between positive and negative territories. After disappointing IIP numbers for March and continuous selling in telecom stocks, on talks of the telecom regulator planning to propose a one-time fee for excess spectrum that will hit Bharti Airtel, BSNL, Vodafone Essar and Idea Cellular, the market slipped to touch the day’s low of 17028. However, buying in health care and FMCG scrips and positive opening in Europe helped Sensex to rebound and touch the day’s high of 17252. At closing bell, Sensex was pitted at 17196, 54 point higher while Nifty was 21 points higher at 5157.

Market sentiment

Market breadth, a metric for broader markets, closed negative. Of the 2,957 stocks traded on BSE, 1,640 stocks closed lower and 1,205 stocks finished higher. Hundred and two stocks were unchanged.

Sectoral & stock screening

Of the 13 sector indices, nine closed higher while four closed lower. Among gainers BSE HC surged the most by 1.61% followed by BSE FMCG that advanced 1.45%. On the other hand BSE TECk was hit the most—by 0.63%—while BSE Power, BSE CG and BSE Auto fell marginally.
Among A group stock, the top three gainers were Jubilant Organosys (up 6.12%), Dr Reddy’s Laboratories (up 5.53%) and Rural Electrification Company (up 3.72%). The top three losers were Bharti Airtel (down 8.29%), Idea Cellular (down 8.21%) and Gujarat NRE Coke (down 3.98%).

Viewing volumes

Anil Dhirubhai Ambani Group (ADAG)_company, Reliance Natural Resources saw highest trading for the fourth day on a trot with over 0.97 crore shares changing hands on the BSE, followed by industrial finance company IFCI (0.76 crore shares), wind turbine major Suzlon Energy (0.45 crore shares), India’s second largest developer Unitech (0.42 crore shares) and sugar major Shree Renuka Sugars (0.41 crore shares).