Sensex slipped 390 points or 2.4% at 15,514 while, Nifty ended lower by 109 points to shut shop at 4,585.

Indian markets registered their biggest fall of the month on Thursday with the NSE Nifty index breaking below the crucial 4,600 levels. Markets witnessed heavy offloading in the last hour of trade on account of profit booking.

Key indices exhibited some signs of fatigue after touching new highs for the year after reports stated that monsoon rains were ~60% lower than normal putting a question mark on the economic growth.

In its morning note Market Mantra, India Infoline had stated, “The muscle of liquidity seems so far so good. However, the key indices look to be struggling after having surpassed key levels recently. The market on the whole seems to be in a consolidation mode after a strong rally. Ditto goes for global markets, where key indices are exhibiting some signs of fatigue after touching new highs for the year. We expect another cautious start today. Given the circumspect mood across the globe, the market may not make much headway.”

Sentiments on Dalal-Street were further hit after the Shanghai index in China ended lower on concerns about the health of Chinese banks and possible building of bubbles in that country’s stock and property markets.

Among domestic issues, banking operations across the nation were paralized as nearly 10 lakh employees of nationalised banks, led by SBI, and select private banks began their two-day strike to demand higher salaries and pension benefits. Staff from about 26 public sector banks, 10 private banks and eight foreign banks participated in the strike.

Another indicator the Instanex index (index that tracks the performance of investments made by FIIs. ) suggets that, FII were also sellers in the Indian markets, the Instanex FII Index was down 1.85% at 327.92 and the Instanex DII 15 portfolio was down 2.23%. Sensex was down 2.45% and Nifty was down 2.31%.

The other Instanex Owner Indexes were also down – the Instanex Retail 15 portfolio was down 2.13%, the Instanex Top 15 portfolio was down 1.93% and the Instanex Promoter 15 portfolio was down 1.74%.

Finally, the BSE Sensex slipped 390 points or 2.4% at 15,514 after touching a high of 15,970 and a low of 15,443. The index opened at 15,881 against the previous close of 15,904. The NSE Nifty ended lower by 109 points to shut shop at 4,585.

In Asia, the Nikkei in Japan ended higher by 1.3% at 10,388 while Australia’s S&P/ASX ended higher by 1.5% at 4,326. The Hang Seng index in Hong Kong ended higher by 2% at 20,899. Shanghai index in China slipped by 2.1% at 3,356.

In Europe, stocks were trading higher. The FTSE in the UK was up 0.8%. The DAX was up 0.5% and the CAC 40 index in France was up 0.7%.

Coming back to India, among the BSE sectoral indices, the Auto index was the top loser, losing 4.4%, followed by the Realty index that was down 3.6%. The BSE FMCG index down 3.2% and the BSE Metal index was down 3%.

The BSE Mid-Cap index ended lower by 2.3% and the BSE Small-Cap index ended lower by 1.2%.

Within the Sensex, the major gainers were Tata Motors, Hindalco, JP Associates, Maruti, Hero Honda and ACC. Among the major gainers were Sun Pharma and Wipro.

Outside the frontline indices, the big losers in the broader market were Indiabulls Real Estate, Sterling Biotech, Pantaloon, Moser Baer and Aditya Birla. On the other hand, gainers included Shriran Transport, Corp Bank, OBC, Nestle and Glaxo.

Shares of NTPC also erased gains and lost 2% to Rs210. According to reports, the public sector power generation giant submitted a proposal for a follow-on public offering (FPO) to the Finance Ministry. The Government is likely to sell a 5% stake in NTPC through this FPO, according to reports.

The stock opened at Rs215 and made an intra-day high of Rs218.55 and a low of Rs209. Total traded volumes stood at 1.8mn shares.

National Aluminium saw a 9% drop in metal production in the previous month after rains disrupted coal supplies, Chairman C.R. Pradhan was quoted as saying. Aluminium production will also be affected this month, he added.

Aluminum prices on the London Metal Exchange are expected to range between US$1,800 and US$2,000 a ton in the near term, Pradhan said.

The stock erased gains and ended lower by 2% to end at Rs318 after hitting an intra-day high of Rs334 and a low of Rs316. Total traded volumes stood at 72,000 mn shares.

Hindustan Zinc announced that it has raised prices of zinc and lead after the metals jumped on the London Metal Exchange. Zinc prices were raised by Rs5,500 per metric ton while, lead prices were raised by Rs5,900 per metric ton.

The stock erased gained and ended lower by 1.5% to Rs726, it had opened at Rs739 and made an intra-day high of Rs751 and a low of Rs721. Total traded volumes stood at 36,000 shares.

Shares of DCB rallied by over 11% to Rs38.6 after reports stated that the bank plans to raise at least Rs750mn through sale of lower Tier-II bonds. The bonds have a maturity of five years and eight months and carry a coupon rate of 11.25%, reports added.

The stock opened at Rs35 and made an intra-day high of Rs41 and a low of Rs34.7. Total traded volumes stood at 1.1mn shares.

Shares of Austral Coke gained by 1.5% to Rs437 after the company acquired 1,82,000 square meters of land at Vizag, Andhra Pradesh to set up a Lam Coke Manufacturing Plant, which will have a capacity of 6,00,000 MTPA. The location is strategic and logistically ideal for lam coke business as it is situated between Gangavaram and Vizag ports. Overall logistic cost will also go down.

source: Indiainfoline

Tags: bear market, bull market, future and options nify, nifty 4500 levels, sensex support

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