Tuesday, April 19, 2011

Nifty closes flat amid volatility; Hero Honda top loser

Indian equity benchmarks saw consolidation on Tuesday after a sharp fall seen in previous two sessions. Indices could be waiting for some trigger for moving on either direction during the earnings season.

After the Infosys (which disappointed the street by forecasting less-than expected EPS guidance for FY12), investors as well as traders are eyeing quarterly numbers of heavyweights like TCS and RIL, which will be on Thursday, April 21.

Indices touched important psychological levels during the session - the Nifty touched the 5,700 level and Sensex hit the 19,000 mark. The 50-share NSE Nifty was completely in a tight range of 5700-5750, before closing at 5,740.75, up 11.65 points or 0.20%.

Parul J Saini executive director at RBS Asia Securities feels it is time to be cautious. "Fund flows have started slowing down nor are the fundamentals too strong here. Moreover, the inflation trajectory is not very encouraging. It could stay above 8% till September 2011 and for the full-year it may come in around 7%," he says.

Saini says he expects the Sensex to go back to 17,500 in near-term and the Nifty may remain in the range of 5,000-6,000 this year.

According to Hemen Kapadia of chartpundit.com, as long as the Nifty futures remain above 5699 which is a technically important support level, things are okay. The Nifty April futures ended with 19 points premium at 5,760.

The 30-share BSE Sensex has seen a swing of more than 200 points in trade today, before ending the session at 19,121.83, with gain of 30.66 points.

Now it looks confusing, says Raamdeo Agrawal, Director & Co Founder, Motilal Oswal Financial Services, with high inflation, high oil price, so much happening in Delhi, elections are underway and then earnings now. "Infosys has confused somewhat in the billing but I hope our analysts expectations that the earnings growth will broadly be 20-22% across the board. If that comes out probably it will help stabilize the market much more," he said.

European markets too were supportive in late trade - France's CAC, Germany's DAX and Britain's FTSE were trading 0.5% higher, at the time of closing of Indian equities. However, Asian markets closed lower on the back of weak US cues after S&P put negative outlook on US debt, with falling 0.6-2%. Indian markets had fallen quite sharply in previous two sessions, so they remain quiet today.

Private financial, oil & gas, telecom, Anil Dhirubhai Ambani Group and select technology companies' shares helped the Nifty to close in the green. HDFC Bank, TCS and L&T gained more than 1.5%.

Bharti Airtel jumped over 2%. Wipro, ICICI Bank, ONGC and SAIL gained 0.5-1%. Heavyweight Reliance Industries too ended with moderate gains.

However, Hero Honda was the top loser on Nifty, with falling over 5%. BHEL was the leading dragger, with losing 2%. ITC, NTPC, SBI, Infosys, HUL, Grasim, JSPL and Tata Motors were other losers.

In midcap space, Pipavav, BGR Energy, Wockhardt, Shree Global and Indiabulls Financial gained 5-9%. However, Tube Investment, WABCO-TVS, CMC, Alok Industries and Aban Offshore slipped 3-4%.

In smallcap space, Mirc Electronic, Subex, Falcon Tyres, DCB and Fedders Lloyd rallied 9-11% while Hatsun Agro, Hinduja Foundries, BS TransComm, Dion Global and Ontrack Systems lost 5-10%.

About 600 shares advanced as against 690 shares declined on National Stock Exchange.


Post a Comment

Design by Free WordPress Themes | Bloggerized by Lasantha - Premium Blogger Themes | Grocery Coupons