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Thursday, February 20, 2014

D Street flooded with red sea after 4 trading days; Markets down 1%

Indian shares fell on Thursday to snap four consecutive sessions of gains as blue-chips including ICICI Bank were hit by profit-taking after regional markets were hit by a survey painting a grim picture of China's manufacturing sector. The BSE Sensex fell 0.90% and NSE Nifty was down by 1.00%.
Major Headlines of the day:
Q3FY2014 Capital Goods & Engineering earnings review
Jan net additions for telecoms grow 26.1% (MoM)
Metal index drops on weak economic data in China
Indian Indices:
Benchmark snapped its four day winning streak and closed almost 1% lower led by a sell-off in heavyweight banking stocks. The investor sentiment went for a toss on cues emerging from world's biggest economies. Macro-economic data from China and minutes of the US Federal Reserve's last meeting caused the turmoil as stocks tumbled around the globe. Broader markets slightly outperformed the benchmark indices with the BSE Midcap index flat with negative bias, while the BSE Smallcap index declined by 0.16% in trade today.
Falling global markets also weighed on the investor sentiment after Fed minutes released late Wednesday signaled continuation of trimming its bond buying program at the usual pace of $10bn-a-month unless economy surprises significantly.
Another major reason was, macro-economic data from China which signaled a slowdown in the world's second-largest economy for second month in a row. The flash Markit/HSBC Purchasing Managers' Index (PMI) fell to a seven-month low of 48.3 in February from January's final reading of 49.5. A reading below 50 indicates a contraction while one above shows expansion
On currency front, the rupee slightly depreciated to Rs62.28 against the dollar, at the interbank foreign exchange.
The Se nsex closed at 20536.64, down by 186.33 points, while the Nifty fell 61.30 points to close at 6091.45
Following are the stocks/sectors which were in news today:
1. DCM Shriram Consolidated surged 16.86%, after the chemical manufacturer said on Wednesday its board will meet on Saturday to consider a share buyback, a review of its dividends policy, and a bonus issue.
2. Uflex lost 7.91% on reports the income tax department has raided 37 premises associated with the company in nine cities.
3. Shares of metal companies were down after China’s PMI data for the month of February fell to a seven-month low.
Tata Steel down 1.80%, JSW Steel down 0.21%, Hindalco Industries down 1.52%, SAIL down 2.09%, Jindal Steel and Power down 1.02% and Sesa Sterlite down 0.48%.
Market sentiment
The market breadth stood in favor of decline. Of the 2820 stocks traded on the BSE, 1192 (42.27%) rose, 1480 (52.48%) fell and 148 (5.25%) stocks remained unchanged.
Sectoral & stock screening
Majority of the sectoral indices closed in the red zone except S&P BSE Power which was up by 0.24% and S&P BSE CG rose by 0.12%. Top Losers- S&P BSE Bankex declined by 1.63%, S&P BSE PSU dipped by 1.05% and S&P BSE Metal slipped by 1.01%.
Among 'A' group stocks, top three gainers were- Indian Hotels rose by 13.10%, Jaiprakash Power Ventures up by 6.75% and Jaiprakash Associates surged by 4.96%. Top three losers were- RECL slipped by 4.97%, BOB down by 3.40%, and Indian Bank fell by 3.12%.
Global signals:
US stock index futures poised for a lower opening at the Wall Street on Thursday.
European shares dropped in early trade on Thursday following data showing a slide in China's factory activity and in France's service sector.
Asian stocks tumbled on Thursday and the yen firmed as a survey painted a grim picture of China's manufacturing sector, heightening uncertainty about the outlook for the region's economic powerhouse.