Sensex shuts choppy session lower

Major headlines

Microsec Financial slides after a decent debut; the stock closes 6.02% lower

JSW Energy gains on commissioning power unit; the stock ends 5.52% higher

Adani Power restructures $1 billion debt to save cost; the stock closes higher by 2.89%



Indian indices

The domestic indices snapped a three-day winning run and closed the day with modest losses after witnessing a consolidation for the entire session. The sell-off in financial, metal, fast moving consumer goods (FMCG) and select technology companies' shares along with some of the heavyweights pulled the markets marginally down in late trades. The broader indices outperformed the Sensex; the BSE Mid-cap was up by 0.8% and Small-cap rose by 1.1%.

The cement, select metal, auto, power and pharma companies' shares along with Reliance Industries, Bharat Heavy Electricals, Infosys Technologies and State Bank of India were helping the markets. On the other hand, the selling continued in private financial and FMCG companies' shares along with NTPC, Tata Consultancy Services, Bharti Airtel, Sterlite Industries, Tata Motors, Sun Pharmaceuticals and Hindalco Industries, which capped the gains.

Anil Dhirubhai Ambani Group (ADAG) firms saw some buying interest in today’s trade as ADAG companies were up by 3-5%. Housing Development Finance Corporation fell by 2.24% at Rs743.35, HDFC Bank declined by 1.57% at Rs2,454.90 and Hindustan Unilever lost by 1.47% at Rs304. In Mid-cap space, Sintex India, HOEC, Patni Computer Systems, KS Oils and Bajaj Electricals gained by 5.7-8% while Ipca Laboratories, Shree Global, MVL, Sadbhav Engineering and Amtek Auto fell by 2%.

The Sensex started the session 14 points lower at 20462. The index soon turned positive for brief period and slipped back again in the negative zone. As the session progressed, the Sensex gathered strength and hit the day’s high of 20565 in morning trades. The index gradually began to erase its gains and turned negative in the afternoon session. However, the Sensex erased its losses again as European markets traded higher. In the last hour of trades, the Sensex again slipped into the negative zone, hitting the day’s low of 20383 as selling intensified in fast moving consumer goods and also in index heavyweights.

At the closing bell, the Sensex ended at 20408, 68 points lower. The Nifty ended at 6146, down by 14 points.

Bond and Rupee update: The Indian rupee opened at Rs44.65 per dollar versus Rs44.56. The bonds may rally a bit in the early trades as yields have risen rapidly over the last couple of days. However, investors would watch out for the monetary action.

Market Outlook: We have ISM Non-Manufacturing Index data in the US tonight.

Market sentiment

The market breadth was positive as advancing stocks outnumbered the declining ones. Out of the 3,104 stocks traded on the BSE, 1,684 gained while 1,290 fell. Hundred and thirty stocks traded unchanged.

Sectoral & stock screening

BSE Consumer Durables (CD) was the top gainer, up by 0.93%, followed by BSE Power that advanced by 0.87% and BSE Auto gained by 0.74%. On the other hand, BSE FMCG was the major loser, down by 1.12%, followed by BSE Metal that slid by 0.33% and BSE Bankex declined by 0.30%.

In 'A' group stocks, the top three gainers were - Sintex Industries up by 7.85%, Essar Oil surged by 7.72% and Indiabulls Financial rose by 7.26%. The top three losers - Adani Enterprises declined by 3.09%, United Spirits fell by 2.40% and Housing Development Finance Corporation lost by 2.38%.

Viewing volumes

Indian shipbuilder - Pipavav Shipyard was the most traded, with over 0.93 crore shares changing hands on the BSE, followed by industrial finance company - IFCI (0.57 crore shares), a Government of India hydro power firm - NHPC (0.51 crore shares), wind turbine major- Suzlon Energy (0.49 crore shares) and ADAG firm - Reliance Natural Resources (0.48 crore shares).

Global signals

European shares rose after Bank of Japan said it may expand the size of a fund pool set aside for asset buying from 5 trillion yen ($60 billion).

The major Asian indices closed higher except Kospi index. Nikkei jumps over 1% after Bank of Japan’s move. China's Shanghai Composite was shut today.

The US stock index futures signal towards a higher opening on the Wall Street tonight, ahead of the ISM’s monthly Non-Manufacturing Index.