Indian market withstands global pressure

Today's major news

HDFC Bank’s Q1 net profit rises 34% yoy; the stock closes 0.57% higher

Crompton Greaves’ Q1 net profit at Rs142 cr; the stock ends 0.72% lower

L&T General Insurance to begin operations; L&T closes 1.14% higher



Global signals

The European shares turned positive on Monday (July 19, 2010) as energy shares cut early losses and miners advanced, tracking stronger metals prices.

All the major Asian indices ended the session lower, except Shanghai Composite that closed 2.11% higher, while Japan’s Nikkei was closed today. SGX Nifty closed 14 points down.

The US stock index futures point to a positive start on the Wall Street, after a sharp fall in the previous session. The investors will closely watch the NAHB housing market index for the month of July.

Indian indices

Brushing aside weak US markets on Friday (July 16, 2010) and soft Asian markets today, the domestic indices witnessed marginal losses. The US markets fell more than 2% owing to a disappointing consumer sentiment report and weak earnings. Small public sector units (PSU) banks gained traction in the market on takeover buzz. Stocks like Andhra bank, Vijaya Bank and Dena bank rose between 1-4 % in an intra-day trade with higher than daily average volumes.

The Sensex, following its global counterparts, began the session on a weak note, down 42 points at 17914. The index traded in the negative territory in the morning trades owing to unsupportive global cues and touched the day's low of 17856. However, the Sensex got lifted as the Reliance Communications gained around 4% after a report that Emirates Telecommunications (Etisalat) was close to buy 26% stake in the company, helping the index to touch the day's high of 18005. In the afternoon, the index was dragged from the 18000 levels after the European markets opened weak coupled with selling pressure in the index heavyweight like ITC, and fast moving consumer goods (FMCG) and realty stocks.

At the finishing line, the Sensex shut 27 points lower at 17928. The Nifty closed down mere 7 points at 5386.

Market Outlook: Going into the trade, we will see how Dow Jones shapes up tonight, with no major economic data on cards for the US. The Asian markets tomorrow morning will also decide the course.

Market sentiment

The market breadth was firm, as the advancing shares dominated the trailing ones. Out of 3,021 shares on the BSE, 1,506 shares (49.85%) advanced and 1,399 shares (46.31%) trailed. Hundred and sixteen shares (3.84%) closed unchanged.

Sectoral & stock screening

Out of 13 sectoral indices, nine sectors ended in the red, while four managed to close in the green.

BSC FMGC was the top loser, down by 1.40%, which was dragged by the Sensex heavyweight ITC (down 2.51%). BSE Realty declined by 0.94%, was the second loser, which was pulled down by the realty major DLF (1.41% lower), followed by BSE consumer durables (CD) that declined by 0.68%.

The sectors that managed to end in the green were - BSE that rose by 0.75%, followed by BSE Bankex that surged by 0.25% and BSE capital goods (CG) that gained by 0.22%.

In 'A' group stocks, the toppers' were - Andhra Bank (up 6.10%), Indian Overseas Bank (5.15% higher) and EIH (up 4.98% on expectation of strong Q1FY2011 results).

The losers' were - Indiabulls Financials (down 2.61%), ITC (2.51% lower) and Godrej Consumer Products (slipped 2.35%).

Viewing volumes

Industrial finance company - IFCI was the most actively traded share with over 1 crore shares changing hands on the BSE, followed by steel maker- Ispat Industries (0.35 crore shares), India's second largest developer - Unitech (0.24 crore shares), wind turbine major - Suzlon Energy (0.21 crore shares) and one of the leading CDMA & GSM service providers in India - Reliance Communications (0.18 crore shares).