Markets remain choppy; BSE Smallcap index up over 1%





(updated at 11.30 AM)

Benchmark indices continue to trade in a narrow range with Sensex and Nifty swinging between negative and positive zone.

By 10:15, the 30-share Sensex was higher by 3 points at 27,961 and the Nifty slipped 5 points at 8,485.

However, the broader markets continue to outperform the benchmark indices- BSE Midcap and Smallcap indices are up 0.8-1%. Market breadth in BSE is positive with 1,288 advances against 529 declines.

The main losers on the Sensex are Infosys, GAIL, Wipro, RIL and TCS, all dipping between 0.5-2%. .

On the gaining side, Dr Reddy’s Labs, Bharti Airtel, Sun Pharma, L&T and NTPC.

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Updated at 9:25

Markets have turned flat after making a marginally lower opening on first day of the financial year 2015-16.

Investors’ sentiment further got dampened after the growth in output of eight core industries, which has a weight of nearly 38% in the Index of Industrial Production, stood at 1.4% in February, a 17-month low.

By 9:25, the 30-share Sensex inched up by 2 points at 27,959 and the Nifty slipped 8 points at 8,482.

However, the broader markets continue to outperform the benchmark indices- BSE Midcap and Smallcap indices are up 0.3%. Market breadth in BSE is positive with 758 advances against 405 declines.

Going forward, analysts say that the Nifty is likely to face a resistance around 8,550 levels. On the downside, a move below 8,450 may result into a correction towards 8,380 – 8,350 levels. Bank Nifty, on the other hand, is likely to face strong resistance around 18,450 – 18,500 levels. On the downside, 18,100 – 18,000 levels can be tested in the coming session, anlaysts say.

Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 356.07 crore yesterday, as per provisional data. Domestic institutional investors (DIIs) bought shares worth a net Rs 283.71 crore yesterday, as per provisional data.

GLOBAL MARKETS

Asian stocks sagged on Wednesday, taking their lead from weaker US shares, while the dollar held to sizeable gains against a euro dogged by nerves over Greek debt negotiations.

Crude oil prices continued declining as negotiations between Iran and world powers over nuclear technology with potential supply implications dragged on beyond a deadline.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.1%. Japan’s Nikkei lost 0.3% and South Korean and Australian shares also dipped.

Wall Street took a hit overnight as energy and healthcare shares retreated. But highlighting the boon enjoyed by US equities on the back of stronger economic fundamentals, the S&P 500 and Nasdaq registered their ninth straight quarterly advance.

SECTORS & BUZZING STOCKS

BSE IT index has slipped by almost 1% followed by counters like Banks, Consumer Durables, Metal, Oil & Gas and Realty, all dipping marginally. Sectors like Capital Goods, Healthcare, Auto, FMCG and Power are trading marginally in positive zone.

The top gainers on the Sensex are Dr Reddy’s Labs, Tata Motors, Sesa Sterlite, ONGC and HUL.

Fiscal 2014-15 (FY15) has turned out to be a good year for pharmaceutical companies with nearly half of the top 25 pharma stocks becoming multi-baggers during the year.

As many as 12 out of top 25 most valued pharmaceutical firms have seen price appreciation of more than 100% during the fiscal.

On the losing side, Infosys is down over 1%. Infosys, India’s second-largest information technology services company, was expected to see stronger revenue growth in 2015-16 and 2016-17, because of its offerings, as well as improved client mining, brokerage firm CLSA said in a report on Tuesday.

GAIL has slumped by almost 2%. Hindalco, Wipro, SBI, Axis Bank, HDFC Bank and Tata Power have dipped by 1% each.

The government on Tuesday announced domestically produced natural gas will be priced at $ 5.17 per million British thermal units (mBtu) on the basis of net calorific value  (NCV) between  April 1 and September 30, a 7.7 per cent cut from the existing price of $ 5.61 per mBtu.

The Union government has cut its estimates for dividend payout for 2014-15 from public sector banks and state-owned financial institutions by about 31%, to Rs 7,481 crore.

Shares of fertiliser companies were trading higher in early morning trade on reports that the government announced a uniform gas pricing policy and pooling of domestic and imported natural gas for urea plants in India.

Zuari Agro Chemicals has rallied 13% to Rs 258, while Fertilizers & Chemicals Travancore  (FACT) surged 7% to Rs 30 on the Bombay Stock Exchange (BSE).

Rashtriya Chemicals and Fertilisers, Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) and Chambal Fertilisers and Chemicals were up 5% each, Deepak Fertilisers and Petrochemicals Corporation up 4% and Gujarat State Fertilizers & Chemicals up 3% on the BSE.

Nifty Futures

niftyfutures.org@imediaone.com

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