The party for bulls was cut short on Thursday with bears returning with a vengeance. And, given the high degree of uncertainty about the outcome of the Lok Sabha polls, an unexpected verdict could further dampen the sentiments.

The winning streak for the bulls came to an end on Thursday. The sharp slide could be attributed to profit booking at higher levels by investors and traders. It was a day of wild gyrations as the Sensex fluctuated over 350 points and the Nifty swung over 150 points between their intra-day highs and lows.

High volatility was accompanied by huge trading volume as total market turnover crossed 1 lakh crore for second consecutive trading session. The BSE Sensex declined 337 points, or 3%, to close at 10,947 and the NSE Nifty ended lower by 114 points, or 3.2% at 3,369.

Among the 30-components of Sensex, 24 ended in negative terrain and 6 ended in the green. Among the major losers were, Tata Motors, Reliance Infra, DLF, Tata Steel, JP Associates, Hindalco and Ranabxy.

However, bucking the negative trend were ITC, Wipro, Sun Pharma, Hindustan Unilever and Maruti.

Shares of Kingfisher Airlines declined by 12% to Rs35. According to reports, the company has sought 10 more days to pay IOC its jet fuel dues. The scrip touched an intra-day high of Rs42.4 and a low of Rs34.7 and recorded volumes of over 2.2mn shares on BSE.

Shares of Hero Honda gained by 1.2% to Rs1080. According to reports, the Group pulled out of JV with Daimler to manufacture commercial vehicles in India. The scrip touched an intra-day high of Rs1097 and a low of Rs1067 and recorded volumes of over 0.12mn shares on BSE.

Suzlon Energy is reportedly facing renewed problems over faulty blades, according to a report published in the Wall Street Journal (WSJ). This time it is for a project in China’s Shandong province. It may be recalled that last year, Suzlon had faced some client-side issues with blades in the US.

According to the Wall Street Journal (WSJ), Suzlon is contracted to supply blades for 75 turbines in a project being managed by Germany’s RePower Systems AG, with an option for 75 more. RePower rejected the prototype and ordered the equipment from elsewhere, the WSJ says.

Suzlon owns 74% of RePower although it has to manage it at arm’s length because of German laws protecting minority investors. RePower lost 6mn euros because of the problems with the first batch and Suzlon said it was working vigorously on testing the latest blades, according to the WSJ.

Shares of Suzlon plunged by over 18% to Rs56 after hitting an intra-day high of Rs73 and an intra-day low of Rs53.5 recording volumes of over 20.8mn shares on BSE.

Punj Lloyd announced that it secured three projects aggregating to Rs3.08bn from Bangalore Metro Rail Corporation for construction of eight elevated metro stations in Bangalore.

The stock however ended 8% lower at Rs121 after it touched an intra-day high of Rs136 and a low of Rs118 and recorded volumes of over 4.2mn shares on BSE.

The party for bulls was cut short on Thursday with bears returning with a vengeance. And, given the high degree of uncertainty about the outcome of the Lok Sabha polls, an unexpected verdict could further dampen the sentiments.

source: Indiainfoline

Tags: bear market, DLF, indian market, itc, jp associates, kingfisher, lower, market, nifty, nse, reliance infra, resistance, sensex

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