Both Sensex and Nifty fell to their lowest close in 2-1/2 weeks as software stocks slumped on caution ahead of TCS results later today. Reversal of trend which took place during the second half of trading session eroded all the early gains at Dalal Street, leading to dismal performance of benchmarks for third successive session today. Concerns over FII’s sold Indian shares worth of Rs 216.3 million ($3.59 million) on Tuesday, the second straight session of outflows, led to some jitters across Indian equity markets. Nothing practically could salvage the sentiments at Dalal Street, not even positive IndusInd Bank Q4 results and positive global counterparts. By close of trade, both Sensex and Nifty lost about one percent and ended below the crucial 22,300 and 6,700 levels respectively. Meanwhile, broader indices too following suite, succumbed to profit-booking and ended with colossal losses of over a percent. On the global front, Asian share markets were mostly in green after China reported economic growth a touch above forecast, a relief for investors who had feared a much weaker outcome. China's economy grew 7.4 percent in the first quarter, from a year earlier, beating forecasts of 7.3 percent. That was welcome news to many investors given foreboding whispers that growth would be nearer 7.0 percent following a string of soft numbers recently. Even European markets rose early, reversing the previous session's losses as data showed economic growth in China a touch above forecasts, while gains in Tesco also lifted markets. While in domestic markets, selling was broad-ased, losses at Dalal Street were led by stocks from Information Technology (IT), Technology and Power counters, which were battered down cruelly in trade. On the flip side, stocks from Metal and Fast Moving Consumer Goods (FMCG) counters were the only saving grace for the session. However, cautiousness ahead of TCS and HCL Technologies result weighed on IT stocks. Meanwhile, sentiment remained downbeat for banking counter, which ended lower despite good Q4 earnings of IndusInd Bank. The bank beat street’s forecast by reporting net profit at Rs 396 crore in the quarter ended March 2014, up 29 percent compared to a year-ago period supported by other income. Besides, telecom stocks rang loud in the session after RCom announced a hike tariffs by up to 20 per cent for all its pre-paid customers, too lost steam by close oftrade. Moreover, Adani group stocks, vis-a-vis, Adani Enterprises and Adani Port and Special Economic Zone, once again turned out to be investors’ darling for the session. The market breadth on the BSE ended negative;advances and declining stocks were in a ratio of 1088: 1651, while 133 scrips remained unchanged. BSE Sensex lost 207.70 points to settle at 22277.23 and Nifty lost 59.10 points to settle at 6,674.00. On the BSE Sectoral front, FMCG up by 0.63% and Metal up by 0.19%, were the only gainers, while Realty down by 3.87%, IT down by 2.49%, Capital Goods down by 2.47%, Teck down by 2.14% and Power down by 1.86%were the top losers in the space. India VIX, a gauge for markets short term expectation of volatility lost 2.24% at 31.16 from its previous close of 31.87. Major gainers of the Nifty were ITC up 1.57%, Hindalco up by 1.38%, Lupin up by 1.26%, Bank of Baroda up by 1.12% and Jindal Steel up by 0.97%. The key losers were DLF down by 4.87%, BHEL down by 3.60%, Tata Power down by 3.54%, Infosys down by 3.00% and L&T down by 2.92%. Regarding Global markets, European shares rose reversing the previous session's slide as economic growth data from China came a touch above forecasts. Both Dow and NASDAQ futures started on a mixed note at this evening.
Summary:
Markets closed on a Negative note today, with majority of the sectors closed in red, but BSE-CG, IT & Realty were the worst performing sectors today. Technically speaking, RSI closed at 58, MACD was Positive below Signal line, India VIX was at 31~, Nifty dropped today again and closed below its immediate short term moving average, viz. 5 DMA (6755), but still above its 20 DMA (6659), 50DMA (6398) and 200 DMA (6090), which all indicate that market is in consolidation zone and we may see further correction if 6650 is broken decisively.
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