Markets end flat in volatile trade

The Indian markets shut the volatile session on a flat note with a positive bias; ADAG companies’ shares fell sharply on adverse SEBI order

Major headlines

L&T Q3 net profit rises 11% yoy

ADAG stocks slip after SEBI consent order

Axis Bank Q3 net profit jumps 36% yoy



Indian indices

The Indian indices closed the choppy session on a flat note with a positive bias. After a drastic fall seen in the last two weeks, the indices seemed to have got some respite and registered small gains. Not-so-supportive global cues and also losses in Anil Dhirubhai Ambani Group (ADAG) companies’ stocks on adverse Securities and Exchange Board of India (SEBI) order coupled with selling in realty, metal and capital goods shares put pressure on the markets. Overall, it was a dull session.

The ADAG companies’ shares fell sharply — Reliance Infrastructure slipped by 7.5%, Reliance Capital declined by 6.2%, Reliance Power dipped by 6.1% and Reliance Communications lost by 4.8% after the SEBI issued an order asking the AGAG firms (Reliance Power and Reliance Infrastructure) not to participate in the capital market.

The Sensex started the session 51 points higher at 18911 and soon hit the day’s low of 18779 amid extreme volatility. As the session progressed, the index fluctuated between gains and losses and hit the day’s high of 19019 in the afternoon trade. Finally, the Sensex ended the volatile trade on a flat note.

The Sensex rose 22 points to settle at 18882 and the Nifty shut at 5655, up by 0.20 points.

Market sentiment

The market breadth stood negative, as declining shares outpaced the advancing ones. Out of the 2,997 stocks traded on the BSE, 1,986 fell while 862 rose. Whereas, hundred and forty nine stocks traded unchanged.

Sectoral & stock screening

Five sectors ended in green while rest eight in red. Among gainers, BSE Information Technology (IT) surged the most with gains of 1.73%, followed by BSE TECk up by 1.33% and BSE Consumer Durables (CD) rose by 0.25%. Among laggards, BSE Realty declined the most with losses of 2.37%, followed by BSE Metal down by 1.32% and BSE Capital Goods (CG) fell by 1.17%.

In 'A' group stocks, Oracle Finance was the star performer rising 4.96%, followed by Bank of India, which rose 4.27% and Housing Development Finance Corporation advanced 3.15%. Among laggards, Reliance Infrastructure slid the most with a loss of 7.84%, followed by Glenmark Pharma, which slipped by 6.46% and Reliance Capital dropping 6.45%.

Viewing volumes

Wind turbine major - Suzlon Energy was the most traded scrip with over 0.52 crore shares changing hands on the BSE, followed by Jaypee Group firm – Jaiprakash Associates (0.38 crore shares), industrial finance company - IFCI (0.37 crore shares), consumer products firm – Marico (0.32 crore shares) and India’s second largest developer - Unitech (0.27 crore shares).

Global signals

The European shares were flat, ahead of a euro zone meeting to discuss enlarging the sovereign debt bailout fund, while Smiths Group jumped after it rejected a bid for its medical services unit.

All the major Asian markets ended the session in the negative territory except Japan’s Nikkei index that rose by 0.04%. China’s Shanghai Composite tumbled over 3% after the government raised reserve requirement ratio by 50 basis points last week.

The US stock markets will remain closed today on account of the Dr. Martin Luther King Jr. holiday.