Listless session ends with modest losses

Today’s major news

Reliance Communications join hands with Nokia; the stock ends 0.49% down

Bharat Petroleum Corporation gains on buying Australian shale gas asset; the stock ends 3.24% up

Time Technoplast hits 52-week high on acquisition; the stock closes 1.33% higher



Global signals

European stocks fell on Friday, down for the third straight day tracking US and Asian markets’ losses after poor US data brought fears of a double-dip recession back to the forefront of investors' minds.

All the major Asian markets closed in the negative territory on Friday except Jakarta Composite that closed higher.

The US stock index futures point to a slightly higher opening on the Wall Street. Hormel Foods will declare their third quarter results today.

Indian indices

Bulls took a pause after two-day strong run. The domestic indices gave up its previous sessions gains and ended the last day of the week with modest losses. The indices retreated from a 30-month high, paring a weekly advance, led by financial companies after Credit Suisse said that the nation’s banking stocks are expensive. The global cues were somewhat weak today, as Asia closed with big cuts and Europe traded soft after a positive opening. The Sensex and Nifty managed to hold the 18400 and 5500 levels in today’s trade.

ICICI Bank, the country’s second-largest lender, dropped for the first time in four days. HDFC, the biggest mortgage lender, retreated from the highest level in at least 19 years. However, other index heavyweights like Reliance Industries, Larsen & Toubro and DLF edged higher, which led to some support.

Taking lead from the weak global cues, the Sensex started the session 11 points lower at 18444. The index slid further hitting the day’s low of 18361 in its initial trades. From that level, the index started to trim its losses, but continued to trade in the red throughout the morning session. As the session progressed, the Sensex erased all its losses and moved in to the positive zone hitting the day’s high of 18464. However, the recovery proved to be short-lived as the Sensex soon turned negative in the afternoon session as the European markets traded lower erasing initial gains. The index traded lacklustre throughout the afternoon session.

At the finishing line, the Sensex shut at 18402, 53 points lower. The Nifty closed at 5531, down by 10 points.

Bond Market Update: India’s government bonds rose for the first time this week on speculation yields at the highest level in more than three months attracted investors. India’s rupee headed for a weekly gain on speculation that the nation’s higher-yielding assets will attract more investment from overseas.

Market Outlook: We have no major data release in the US tonight.

Market sentiment

The market breadth was negative as declining stocks outnumbered the advancing ones. Of the 3,071 stocks traded on the BSE, 1,601 fell whereas 1,353 rose. Hundred and seventeen shares traded unchanged.

Sectoral & stock screening

Among the 13 sectoral indices, nine ended in the red, while four closed in the green. BSE Realty surged the most by 1.81%, followed by BSE capital goods (CG) that advanced by 1.37% and BSE Oil & Gas that gained by 0.82%. Among laggards, BSE fast moving consumer goods (FMCG) slid by 1.02%, followed by BSE information technology (IT) that declined by 0.94% and BSE TECk that fell by 0.82%.

Among 'A' group stocks’ front, Shriram Transport Finance topped the gainers’ list, up by 4.99%, followed by Jet Airways that rose by 4.53% on seeking Reserve Bank of India’s approval to raise fund through external commercial borrowings ECB and KSK Energy was up by 4.20%. Among the losers, Chennai Petroleum Corporation slid the most by 6.79% on turning ex-dividend, followed by Hindustan Construction Company that fell by 3.96% and Jain Irrigation declined by 3.62%.

Viewing volumes

India's second largest real estate developer - Unitech was the most traded with over 0.47 crore shares changing hands on the BSE, followed by largest basmati rice processing and marketing company in the globe - REI Agro (0.45 crore shares), wind turbine major - Suzlon Energy (0.45 crore shares), industrial finance company - IFCI (0.36 crore shares) and leading integrated steel makers - Ispat Industries (0.32 crore).