Markets shut with modest losses

The domestic markets closed the volatile session with modest losses; banking shares worst hit for the second consecutive day

Major headlines

Economy may cross 9% by March

Members nod for buyback boosts Piramal Healthcare

Uflex tanks as CMD sentenced to jail



Indian indices

The domestic indices ended the volatile session with modest losses. The Sensex and the Nifty crossed their psychological levels of 20000 and 6000 respectively in the opening trade but could not hold for rest of the day.

Banking shares were worst hit for the second consecutive day especially after the Reserve Bank of India governor asked banks to trim interest margins. Realty and fast moving consumer goods companies' shares along with Tata Consultancy Services, Tata Motors, Jaiprakash Associates, Ranbaxy Laboratories and Reliance Communications witnessed selling pressure.

However, buying in oil & gas, cement, select technology, auto, metal and capital goods companies' shares along with Bharti Airtel capped losses to major extent. In Midcap space, Amtek Auto, S Kumars Nationwide, Pfizer, Coromandel International and Polaris were up in the range of 3.6-6.9% while IRB Infrastructure Developers, Allahabad Bank, Emami, Manappuram and United Bank lost between 5-6%.

The Sensex began the session mere two points higher at 19983 and soon hit the day's high of 20008. In the early trade, the index turned negative and traded lower throughout the morning session as banking stocks weigh. The index extended losses in the afternoon trade, hitting the day's low of 19824 on the back of weakness in banking and realty stocks. From the day's low, the Sensex erased some of its losses and ended the volatile session marginally lower.

At finishing line, the Sensex closed at 19935, down by 47 points and the Nifty ended at 5977, lower by 16 points.

Market sentiment

The market breadth was weak as declining shares outpaced the gaining ones over two times. Of the 3,029 stocks on the BSE, 2,037 fell while 881 rose. Hundred and eleven stocks traded unchanged.

Sectoral and stock screening

Five sectoral indices ended lower, while eight shut higher. BSE Bankex was the biggest loser for the second consecutive day, down by 2.86%. BSE Realty and BSE PSU fell by 0.93% and 0.68% respectively.

Among the ‘A’ group stocks, the top three gainers were - Piramal Healthcare up by 5.75%, Unitech rose by 5.07% and Jain Irrigation gained by 3.67%. The top three losers were - Allahabad Bank fell by 6.78%, Oriental Bank of Commerce lost by 6.34% and SJVN dipped by 6.32%.

Viewing volumes

Construction firm - Hindustan Construction Company was the most traded, with over 0.56 crore shares changing hands on the BSE, India’s second largest developer - Unitech (0.53 crore shares), government's power utility - Power Grid Corporation of India (0.39 crore shares), industrial finance company - IFCI (0.31 crore shares) and wind turbine major - Suzlon Energy (0.30 crore shares).

Global signals

European shares hit a three-week high after US President Barack Obama's deal to extend tax cuts was seen helping the economy, though lingering euro zone debt worries prompted investors to stay cautious.

The major Asian indices closed in the positive territory except Japan’s Nikkei Index that fell marginally.

The US stock futures indicate to a higher opening on the Wall Street after President Barack Obama announced plans to extend tax breaks.

Market Outlook: There is no important data in the US tonight.