After swinging between positive and negative terrain throughout the session due to October F&O expiry, Indian equities ended marginally higher on Wednesday. Shares of metals and oil & gas companies surged ascommodities bounced back in international markets while realty, pharmaceuticals and FMCG ended in the red.
Bombay Stock Exchange’s Sensex closed at 9,044.51, up 36.43 points or 0.40% from Tuesday’s close. It touched an intra-day low of 8,894.34 and high of 9,297.76. National Stock Exchange’s Nifty ended at 2,697.05, up 12.45 points or 0.46%. The index touched a low of 2,631.90 and high of 2,781.25 during the day.
However, BSE Midcap Index closed lower by 1.99% and BSE Smallcap Index ended down 1%. “Market is volatile both ways and anything can happen. We may even witness a strong rally. Investors should slowly get in on declines by putting in cash into the market at fixed time intervals. Avoid metals and real-estate until a bull market is confirmed”.
Among the sectoral indices, written-off sectors like metals and oil & gas companies witnessed a strong pull-back after a rally in the US and other global markets. BSE Metals Index closed higher by 6.52% led by Hindalco Industries and BSE Oil&Gas Index gained 2.78% on rise in
Reliance Industries.
“Sentiment is expected to remain bearish until foreign investors stop selling in Indian markets. But buying in Reliance Industries is a positive, showing some confidence coming back into the market,” .
Hindalco Industries surged 18.24% to Rs 53.15, the most since April 1992. Among other frontline stocks, Wipro (7.33%), ACC (6.93%), Sterlite Industries (6.57%), Reliance Industries (4.57%) and Tata Power (4.33%) clocked significant gains.
However, Reliance Communications (-10.27%), Ranbaxy (-9.62%) DLF (-6.98%), Satyam Computer (-5.44%), and Hindustan Unilever (-4.74%) weighed on the indices. According to NSE provisional data, foreign institutional investors on Wednesday net sold equities worth Rs 1,306.35 crore while domestic institutional investors net bought Rs 739.66 crore of equity.
However, BSE Midcap Index closed lower by 1.99% and BSE Smallcap Index ended down 1%. “Market is volatile both ways and anything can happen. We may even witness a strong rally. Investors should slowly get in on declines by putting in cash into the market at fixed time intervals. Avoid metals and real-estate until a bull market is confirmed”.
Among the sectoral indices, written-off sectors like metals and oil & gas companies witnessed a strong pull-back after a rally in the US and other global markets. BSE Metals Index closed higher by 6.52% led by Hindalco Industries and BSE Oil&Gas Index gained 2.78% on rise in
Reliance Industries.
“Sentiment is expected to remain bearish until foreign investors stop selling in Indian markets. But buying in Reliance Industries is a positive, showing some confidence coming back into the market,” .
Hindalco Industries surged 18.24% to Rs 53.15, the most since April 1992. Among other frontline stocks, Wipro (7.33%), ACC (6.93%), Sterlite Industries (6.57%), Reliance Industries (4.57%) and Tata Power (4.33%) clocked significant gains.
However, Reliance Communications (-10.27%), Ranbaxy (-9.62%) DLF (-6.98%), Satyam Computer (-5.44%), and Hindustan Unilever (-4.74%) weighed on the indices. According to NSE provisional data, foreign institutional investors on Wednesday net sold equities worth Rs 1,306.35 crore while domestic institutional investors net bought Rs 739.66 crore of equity.
Expectations of interest rate cuts in the US and Japan propped the global stock markets, including India. Indices opened with a gap-up, in line with other equities, but lost steam astraders booked profits after a whopping run-up in previous session and ahead of F&O settlement.
But China jumped the gun by cutting benchmark lending and deposit rates by 0.27 percentage point, the third cut in six weeks. The rate cut will be effective Thursday.
In stock specific action, Unitech was in limelight after the real estate major announced selling 60% stake in its telecom venture for Rs 6,120 crore to Norway-based Telenor, which has mobile operations in 12 countries with 160 million subscribers.
Unitech shares, which soared nearly 10% intra-day, pared most of its gains and finally ended 1.63% higher at Rs 49.90.
Indian wind turbine maker, Suzlon Energy announced plans to suspend Rs 1,800-crore rights share issue due to weak market conditions, but said its expansion plans remain on track. The wind turbine maker had planned the rights issue to partly fund its acquisition of a further stake in Germany’s REpower from Portugal’s Martifer and other minority shareholders.
Suzlon shares turned positive after the announcement, before ending 0.6% lower at Rs 46.95. Shares of utility vehicle maker Mahindra & Mahindra, which soared more than 12% ahead of the results, pared most gains to end 8.25% high at Rs 302.25. The company’s consolidated profit declined 4.92% to Rs 373.30 crore for the second quarter ended September 30 on account of increasing material cost and global economic crisis. The firm reported net profit of Rs
392.60 crore in the September quarter of last fiscal.
Mahindra Holidays & Resorts India, a unit of Mahindra & Mahindra, re-filed its draft offer documents with Sebi for an initial public offering.
Traders will be keenly eyeing the outcome of Federal Reserve's FOMC meet later Wednesday where it is expected to cut interest rate to 1% from 1.5%. US stock futures, which were indicating a sharp fall, have pared losses and were in the green. Dow Jones stock futures were up
0.37%, S&P 500 stocks futures inched 0.42% higher and Nasdaq stocks futures moved 0.19% up.
In Muhurat trading Tuesday, foreign institutional investors net sold equities to the tune of Rs 1,010.90 crore ($250.60 mn). Their gross purchases stood at Rs 1,802.40 crore, against sales of Rs 2,813.30 crore. On the same day, domestic institutional investors net bought shares worth Rs 14.6 crore, according to Sebi data.
But China jumped the gun by cutting benchmark lending and deposit rates by 0.27 percentage point, the third cut in six weeks. The rate cut will be effective Thursday.
In stock specific action, Unitech was in limelight after the real estate major announced selling 60% stake in its telecom venture for Rs 6,120 crore to Norway-based Telenor, which has mobile operations in 12 countries with 160 million subscribers.
Unitech shares, which soared nearly 10% intra-day, pared most of its gains and finally ended 1.63% higher at Rs 49.90.
Indian wind turbine maker, Suzlon Energy announced plans to suspend Rs 1,800-crore rights share issue due to weak market conditions, but said its expansion plans remain on track. The wind turbine maker had planned the rights issue to partly fund its acquisition of a further stake in Germany’s REpower from Portugal’s Martifer and other minority shareholders.
Suzlon shares turned positive after the announcement, before ending 0.6% lower at Rs 46.95. Shares of utility vehicle maker Mahindra & Mahindra, which soared more than 12% ahead of the results, pared most gains to end 8.25% high at Rs 302.25. The company’s consolidated profit declined 4.92% to Rs 373.30 crore for the second quarter ended September 30 on account of increasing material cost and global economic crisis. The firm reported net profit of Rs
392.60 crore in the September quarter of last fiscal.
Mahindra Holidays & Resorts India, a unit of Mahindra & Mahindra, re-filed its draft offer documents with Sebi for an initial public offering.
Traders will be keenly eyeing the outcome of Federal Reserve's FOMC meet later Wednesday where it is expected to cut interest rate to 1% from 1.5%. US stock futures, which were indicating a sharp fall, have pared losses and were in the green. Dow Jones stock futures were up
0.37%, S&P 500 stocks futures inched 0.42% higher and Nasdaq stocks futures moved 0.19% up.
In Muhurat trading Tuesday, foreign institutional investors net sold equities to the tune of Rs 1,010.90 crore ($250.60 mn). Their gross purchases stood at Rs 1,802.40 crore, against sales of Rs 2,813.30 crore. On the same day, domestic institutional investors net bought shares worth Rs 14.6 crore, according to Sebi data.
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