Extending their southward journey for third consecutive session, Indian equity benchmarks ended today’s trade near day’s lows on geo-political tension over Ukraine. Selling was both brutal and wide-based as, barring consumer durables; none of sectoral indices on BSE could manage a green close. Counters, which featured in the list of worst performers, were metal, banking, auto and power. After getting a promising start, frontline gauges slipped into negative terrain, as markets participants turned cautious on report that foreign investors sold index futures worth Rs 1170 crore over the previous two sessions. Selling got intensified in last leg of trade as investors remained pessimistic on India Meteorological Department’s (IMD) announcement that the country will likely get below-normal levels of monsoon rain this year. Moreover, RBI has warned that El Nino can impact the yield, which could further trigger the inflation rate above 8.5 per cent and may result in hiking rates further, which could impact the India Inc investment cycle and put brakes on the growth rate.
Further, uncertainty over 2014 Lok-Sabha election outcome despite opinion polls indicating victory for the BJP-led NDA government, weighed on market sentiment. On the global front, European markets made a positive start and were trading mostly in the green in early deals. Back home, mining stocks remained under pressure during the trade on report that the Supreme Court may go for a Goa-like mining ban in Odisha for a period of three months, to allow the state government to sort out illegalities in the mining sector and grant fresh leases.
On the flip side, telecom stocks grabbed some limelight after the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) cleared the 3G intra-circle roaming agreements signed between Bharti Airtel, Vodafone India and Idea Cellular, saying the pacts didn't violate any license conditions and also quashed the penalties levied on the three operators by the telecom department (DoT).
On the result front, FMCG major Dabur India, despite meeting street expectations with the fourth quarter numbers, edged lower by 1.36% during the session. The company has reported 17.32% rise in its consolidated net profit at Rs 235.29 crore for the quarter ended March 31, 2014 as compared to Rs 200.55 crore for the same quarter in the previous year. Meanwhile, Midcap IT company Hexaware Technologies missed street expectations on every parameter with the first quarter (January-March) net profit falling 32% sequentially to Rs 70.3 crore on lower revenues and operational performance.
The top gainers on the Sensex were Sun Pharma up by 0.65%, Coal India up by 0.34%, HDFC up by 0.20%, TCS up by 0.10% and Infosys up by 0.01%.While Tata Steel down by 4.79%, Hindustan Unilever down by 3.01%, Hindalco Inds down by 2.87%, Tata Power down by 2.65% and Bajaj Auto down by 2.20% were the top losers in the index.
TECHNICAL PARAMETERS ON NIFTY:
Technically specking, today on nifty, RSI was at 54, MACD positive below signal line; India VIX was at 31~ and Nifty closed above its 200 DMA (6124) & 50 DMA (6503) but below its 20 DMA (6746) & 5 DMA (6783) which all indicate that market is witnessing profit booking at higher levels after a recent rally and ahead of major event like results of election 2014.
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