Consolidation in the market followed after six straight sessions of record setting rally today, which led to both Sensex and Nifty end below the psychological 22,600 and 6750 levels respectively, albeit with slender loss of less than one tenth of a percent. Recovery which emerged during the last leg of trade reversed substantial portion of losses, as investors strongly bought into dips. Loss came a day after RBI ended decade long suspense on new banking license by deciding to grant licences to infrastructure financing firm IDFC and microfinance institution Bandhan from among 25 applicants that included corporate heavyweights ADAG Group, Aditya Birla Group and Bajaj Group. Sentiment to some extent turned sour after HSBC Purchasing Managers' Index data showed that Activity in the largest segment of the Indian economy- services failed to pickup in March as contraction continued for the ninth straight month.
On the global front, Asian pacific shares ended mostly in green following another record close on Wall Street as US private jobs growth picked up, but Shanghai gave up early gains despite China unveiling a mini stimulus programme, announced a series of spending measures aimed at kick starting the Chinese economy, a key driver of global growth but one which has shown signs of slowing in recent months. However, European shares edged lower ahead of ECB meeting later in the day and after brief spike in mid-morning as manufacturing and services data indicated that businesses in the region enjoyed the fastest rate of expansion in three years in the first quarter of 2014.
Most of the sectoral indices on BSE ended in negative territory, while the top gainers were stocks belonging to Healthcare, Fast Moving Consumer Goods and Consumer Durables counters. Additionally, Stocks of pharmaceutical companies extended gains with counters like Wockhardt, Strides Arcolab, Dr Reddy’s Laboratories and Ranbaxy Laboratories rising up in range of 1 -13%. On the flip side, PSU, Capital Goods and Banking counters were the weak spells of trade. The market breadth on the BSE ended negative; advances and declining stocks were in a ratio of 1,288: 1,499.
India VIX, a gauge for markets short term expectation volatility gained 4.21% at 22.10 from its previous close of 21.21. The major gainers of the Nifty were Asian Paint up 3.54%, Jindal Steel up by 2.86%, Hindustan Unilever up by2.59%, Lupin up by 2.23% and Ambuja Cements up by 2.17%. The key losers were Bank of Baroda down by 3.07%, BHEL down by 3.00%, DLF down by 2.85%, PNB down by 2.48% and IDFC down by 2.43%.
Major events like were Venus Remedies jumps on getting marketing nod from Venezuela for meropenem, Suzlon Energy drops on profit taking, Unitech gains on possible sale of Candor Investments, NCC hits 52-week high as board to consider rights issue, Tata Steel slides on profit booking, Sesa Sterlite & Hindustan Zinc in demand, L&T slips on buzz it may write off slow-moving orders, Bank of Baroda drops on profit booking, Ashok Leyland gains after securing new order, IDFC jumps after winning in-principle approval for bank licence during the day.
GLOBAL UPDATES:
Spanish shares outperformed flat European markets as strong services sector data strengthened investor optimism about an economic recovery in the struggling Mediterranean country. Both Dow and Nasdaq future started on a mixed note at this evening.
Technically speaking, today RSI closed at 78, MACD was Positive above Signal line, India VIX was at 22~. Nifty closed above its major moving averages, viz. 5 DMA (6721), 20 DMA (6581), 50DMA (6318) and 200 DMA (6054) which all indicate that market is in bull run mode but we may see some profit booking at higher level though all short, medium & long term indicators are still positive with the help of sector churning among the index stocks.
Markets closed on a Negative note with a mixed close, among sectors, BSE- Banks & PSU were the worst performing sector today.
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