Dull session ends flat on thin volumes

The Indian markets shut a lacklustre session on a flat note due to lack of investor participation ahead of holiday season

Major headlines

Food inflation rises to 12.13%

Sun Pharma energises on favourable US ruling

SAIL slips on lower FPO price talk



Indian indices

The Indian markets witnessed a dull session and closed on a flat note in the absence of any triggers on both the domestic and global fronts. There was lack of investor participation ahead of Christmas holiday and year-end factor hurts volumes. The key benchmark indices hovered around their previous closing values. The Nifty remained in a range of 5970-6005 levels with thin volumes.

The capital goods, FMCG, auto, realty, cement, metal (major ones) and select power companies' shares along with Tata Consultancy Services, ICICI Bank and Oil & Natural Gas Corporation witnessed selling pressure and dragged the Sensex tad below the 20000 mark. However, heavyweights like Infosys Technologies, Reliance Industries, NTPC, Housing Development Finance Corporation, HDFC Bank and ITC were supporting the markets along with Sun Pharmaceuticals, Sterlite Industries, JSPL and HCL Technologies.

In mid-cap space, Sintex Industries, MVL, Berger Paints, Simplex Infrastructures and Sadbhav Engineering gained by 3.4-5.5% while Money Matters, KGN Industries, HT Media, IRB Infrastructure & Developers and Gujarat Pipavav Port were down by 3.5-5.5%.

New listing: A2Z Maintenance closed at Rs328.9, down by 17.78% from its issue price of Rs400 per share.

The Sensex rose 23 points at 20038 in the opening trade and hit the day’s high of 20076 in the first half hour of trade. The Sensex traded rangebound with a negative bias all through the morning session. The index hit the day’s low of 19939 in the early afternoon session and traded in a narrow range for the remaining part of the session. Overall, it was a dry session and the Sensex shut on a flat note.

At the closing, the Sensex fell 33 points to close at 19983 and the Nifty shut at 5980, down by mere four points.

Bond update: India’s 10-year bonds declined for a second day, lifting yields from near an 11-week low, on concern demand for the securities will slow amid a cash crunch at local banks. The yield on the 7.8% note due May 2020 climbed two basis points to 7.95% India's 12-year bond yield at 8.02%versus 8.01% yesterday.

Rupee update: India's rupee strengthened against the US dollar. Indicative bid prices for the rupee were at 45.0100 per dollar versus 45.0900 the previous trading day.

Market sentiment

The market breadth was negative as losing stocks outdid gaining ones. Out of the 2,988 stocks traded on the BSE, 1,479 declined while 1,331 rose. Hundred and seventy-eight stocks traded unchanged.

Sectoral & stock screening

Among sectoral indices, BSE Health Care (HC) surged the most by 0.69%, BSE Information Technology (IT) rose by 0.27% and BSE TECK marginally up by 0.18%. On losers’ front, BSE Consumer Durables (CD) slid the most by 1.11%, BSE Metal dipped by 0.97% and BSE Realty fell by 0.89%.

Among 'A' group stocks, top three gainers - Sintex Industries was the leading stock rising by 5.55%, DB Realty gained by 5% and Sun Pharmaceuticals rose by 4.96%. Top three losers - Steel Authority of India slid the most by 4.34%, JSW Steel fell by 3.67% and Ashok Leyland slipped by 3.03%.

Viewing volumes

Indian shipbuilder - Pipavav Shipyard was traded the most, with over 0.49 crore shares changing hands on the BSE, followed by industrial finance company - IFCI (0.27 crore shares), sugar major - Shree Renuka Sugars (0.24 crore shares), wind turbine major - Suzlon Energy (0.22 crore shares) and state-run hydropower firm - NHPC (0.17 crore shares).

Global signals

The European shares were little changed in thin pre-Christmas trade, hitting 27-month high for a fourth day, with Scandinavian carrier SAS up on a report that Lufthansa planned a takeover.

The major Asian markets ended the session in the negative territory. Japan’s Nikkei index was closed today for a public holiday, Emperor's Birthday.

The US stock index futures point to a flat start on the Wall Street. The investors will keep an eye on monthly data of durable goods, personal spending and new home sales data.

Market Outlook: There are four significant monthly data releases in the US tonight (durable goods, personal spending, new home sales, University of Michigan Confidence) and with the usual suspects such as jobless claims.