Markets shut flat after listless session

Today's major news

Tata Consultancy Services Q1 net profit jumps 22% yoy; the stock ends 1.22% up

Axis Bank hits 52-week high on strong Q1 results; the stock closes 2.34% higher

Food inflation inches up to 12.81%



Global signals

European shares turned positive after sliding in the early trades on Thursday (July 15, 2010). FTSE 100 traded 0.03% higher at 5255.

All the major Asian indices closed in the negative territory. Nikkei, Hang Seng and Shanghai Composite fell over 1% each.

The US stock index futures signal higher opening at the Wall Street on Thursday, after JP Morgan posted its Q2 earnings. The investors will keep an eye on the data for Producer Price Index for June, initial jobless claims, continuing claims, industrial production for June and capacity utilisation for June.

Indian indices

The domestic indices ended the choppy session on a negative note to extend its losing run for the second successive day. The Asian stocks fell from a three-week high on concerns that the economic recovery may falter after US retail sales declined, Federal Reserve members cut their growth forecasts for the world’s biggest economy, and China’s expansion slowed. The reports that in India rains were 24% below normal in the week to July 14, 2010, also weighed on the sentiments.

Inflation rose to 12.81% for the week ended July 03, 2010 as compared to 12.63% in the previous week.

The Sensex began the session 63 points lower tracking muted global cues. The Sensex recovered losses and traded in the green to touch the day’s high of 17979. However, the index hovered between the positive and negative terrain in most part of the morning session. In the afternoon session, the Sensex slid to touch the day’s low of 17859 as the European markets opened lower, and selling intensified in the realty and PSU stocks. However, in the last hour of trade, the index erased some its losses as the European stocks recovered.

At finishing line, the Sensex closed at 17909, 29 points lower and the Nifty ended mere seven points lower at 5379.

Market Outlook: For tomorrow, all the eyes would be on India’s biggest IT firm, TCS, as the company has declared its Q1FY2011 results after the market hours. Also, one will keep an eye on the US data, which would set a tone for the global markets.

Market sentiment

The market breadth was negative on the second straight day. Of the 3,020 shares traded on the BSE, 1,540 shares declined whereas 1,360 shares advanced. Hundred and twenty shares remained unchanged

Sectoral & stock screening

On a listless trading day, out of 13 sector indices - six ended in the green while seven closed in the red. BSE consumer durables (CD) was the top performer, up by 0.93%. BSE PSU lost the most, down by 0.96%. The rest of the sectors ended either up or down marginally.

On ‘A’ group stocks’ front, the top gainers were - LIC Housing Finance surged the most by 7.19% on posting strong Q1 results, followed by Godrej Consumer Products that rose by 6.97% and Union Bank of India that advanced by 4.47%. The top losers were - Bharat Petroleum Corporation and Hindustan Petroleum Corporation occupied the top two slots, down by 6.19% and 6.01% respectively after oil ministries clarification on the subsidy sharing which was against the oil marketing companies & upstream companies, followed by Nagarjuna Constructions that slid by 4.57%.

Viewing volumes

Industrial finance company - IFCI was the most actively traded share with over 0.53 crore shares changing hands on the BSE, followed by India's second largest realty developer — Unitech (0.49 crore shares), wind turbine major — Suzlon Energy (0.34 crore shares), Anil Dhirubhai Ambani Group (ADAG) firm — Reliance Natural Resources (0.31 crore shares) and iron ore mining firm — Sesa Goa (0.22 crore shares).