Market choppy; RIL, Wipro, TCS, BHEL under pressure
September, 17th 2011
The sell-off in Reliance Industries has pushed the equity benchmarks closer to previous day's closing value. Wipro, TCS, HUL and BHEL too were adding pressure to the market. The 30-share BSE Sensex was trading at 16,904, down 28 points and the 50-share NSE Nifty was flat.
Heavyweight Reliance Industries fell over 1%. Wipro and HUL, which were down nearly 3%, too added more pressure on the market. TCS, BHEL, ITC and HDFC Bank were down 0.5-2%.
Largecaps like ONGC, NTPC and Tata Motors surged 4.5-7%. SBI, Sterlite and Power Grid gained 2.5-3.5%. HDFC, L&T and ICICI Bank too were helping the market to stay in green, which rose 1% each.
In the midcap space, Financial Tech, Shree Global, Rajesh Exports, Nava Bharat and Hathway Cable rallied 8-11% while HCL Info, India Cements, Essar Ports, Hexaware Tech and Motherson Sumi fell 6%.
In the smallcap space, SRS Real Infra, Man Infra, Pradip Overseas, Thomas Cook and Everonn Education gained 10-19.5%. However, IVRCL Assets, OCL India, Orbit Corporation, R M Mohite and Prabhav Industries slipped 5-6%.
At 14:11 hours IST : Sensex wipes out 50% gains amid volatility; HUL, BHEL dip
Equity benchmarks erased more than half of their gains as European markets slipped from day's high. The 30-share BSE Sensex was trading 107 points to 16,983 after slipping over 100 points from day's high. Meanwhile, the 50-share NSE Nifty could hold on to a gain of 27 points to trade at 5,102 amid volatility.
RBI policy was a non-event for the market. Central bank hiked repo rate by 25 basis points to 8.25% while reverse repo rate adjusted to 7.25%. RBI said it would continue with its anti-inflationary stance.
Infosys, HUL, HDFC Bank and BHEL extended fall; these stocks fell 1-2.5%. ITC and Bharti Airtel declined 0.4% each.
Kotak Mahindra Bank, HCL Tech, Reliance Communications and Jaiprakash Associates gained 1.4% each.
ICICI Bank too came off day's high; the stock rose just 0.4%. Heavyweight Reliance Industries was directionless, which is playing a role in volatility.
However, continued buying in SBI, L&T and HDFC has helped the market to hold in green; these stocks gained 1.5%.
ONGC and Tata Motors remained quite supportive since the opening trade today; shot up 5% and 6%, respectively. NTPC, Sterlite Industries, Tata Power and Hindalco rallied 3-3.5%. Technology stocks like TCS and Wipro rose 0.5% each.
Axis Bank surged 2% as company's board has approved Axis-Enam deal. Bank will pay Rs 274 crore cash to Enam. Enam shareholders will get 1.38 crore Axis Bank shares.
New Listing: SRS was trading at Rs 34.45 as against issue price of Rs 58 a share.
Market breadth was mixed; about 1325 shares advanced as against 1368 shares declined on BSE.
At 13:01 hours IST : Sensex reacts to positive European cues, rises 190 points
Equity benchmarks shrugged of 25 basis point hike in repo rates and regained all its losses incurred earlier. The spike in gains came after European markets opened shop with over 0.5% jump since yesterday. The 30-share BSE Sensex rose181 points to 17,057 and the 50-share NSE Nifty gained 47 points at 5,122.
India's central bank, RBI, increased repo rate by 25 basis points to 8.25% while reverse repo rate came in at 7.25% after adjustements. Experts were debating on the possibility of this being the last rate hike but RBI maintained its hawkish tone, insisting that it would continue with anti-inflationary stance as inflation is much above comfort zone.
Jim Walker of Asianomics Limited said rate hike was in-line with expectations. "RBI is putting far too much weight on WPI Figure" he said. He expects Indian exports to come off from current levels.
Among largecaps, Tata Motors extended gains post rise in JLR sales numbers for August; the stock shot up 6.5% and ONGC surged 5.5%.
Sterlite Industries, Tata Power and were up over 3.5%. Heavyweights NTPC, TCS, L&T, SBI, HDFC and ICICI Bank gained 1-3%. Reliance Industries too bounced back with 0.6% gain.
However, HCL Tech, Kotak Mahindra Bank, Reliance Capital, Reliance Communications, HUL, Jaiprakash Associates, Infosys and Bharti Airtel were down 0.5-1.5%.
SBI, ONGC, Tata Motors, Tata Steel, ICICI Bank and Infosys were most active shares on exchanges.
The market breadth was slightly in favour of advances; about 705 shares advanced as against 666 shares slipped.
At 12:21 hours IST : Rate hike impact: Sensex regains 100 pts after initial drop
Indian equity benchmarks washed out almost all gains as an initial reaction to the RBI's announcement that it would persist with its current anti-inflationary stance as inflation is much above the comfort zone. The central bank in its mid-quarter policy review hiked repo rate by 25 basis points to 8.25% and reverse repo rate has been adjusted to 7.25%.
Regaining momentum after the announcement, the market covered some losses as the rate hike was on expected lines. The 30-share BSE Sensex was trading at 17,010, up 34 points and the 50-share NSE Nifty rose 31 points to 5,106 amid volatility.
Bank Nifty gained 39 points, which had shed 48 points post RBI announcement. SBI and ICICI Bank were up over 0.7%.
ONGC continued to hold its top position in the buying list post deferral of FPO by government; the stock gained 5.5%. Tata Motors too held its early trade gains; rose 5%.
Power and auto stocks too were on buyers' radar. TCS, HDFC and L&T jumped 1.5%.
However, the selling in Infosys, Bharti, Reliance Industries, HUL, HDFC Bank, BHEL and ITC has limited the upside; these stocks fell 0.3-0.8%.