Mid Market Review 04/04/2014

Domestic equity markets in absence of any positive triggers continued trading weak, with both Sensex and Nifty nursing loss of close to half a percent, hanging a little above the psychological 22,400 and 6700 levels respectively. Nonetheless, the session clearly belongs to broader indices, which outperforming larger peers are trading with gains of around half a percent. Profit-booking in most blue-chip stocks after shares hit their ninth consecutive record high yesterday and caution ahead of key U.S. jobs data later in the day has led to second consecutive down session at Dalal Street. Additionally, squaring off position by market-participants ahead the general elections scheduled to start next week, also added to the underlying cautious undertone. 

On the global front, Asian markets were settling for a subdued session as investors counted down the hours to the U.S. jobs report, while European shares managed to get to mostly positive start after the European Central Bank opened the door to more aggressive easing, albeit not just yet. While most of the sectoral indices were languishing in red, stocks from Realty, Consumer Durables and Metal were outperforming. Nevertheless, stocks from Capital Goods, Auto and Oil & Gas counters were the weak spells of trade. Among non-sectoral guage, Shares in sugar companies, Bajaj Hindusthan, Balrampur Chini Mills and Shree Renuka Sugars, among others were trading higher after a spike in sugar prices which is likely to boost manufacturers’ margins. The overall market breadth on BSE was in the favour of advances which thumped declines in the ratio of 1091:736; while 39 shares remained unchanged. 

The top gainers of the Nifty were PNB up by 1.61%, DLF up by 1.22%, Cipla up by 0.97%, Tata Steel up by 0.88% and NMDC up by 0.82%. On the flip side, BHEL down by 2.51%, Gail down by 1.88%, Asian Paints down by 1.62%, ONGC down by 1.43% and Bajaj Auto down by 1.38% were the major losers on the index. Asian equity indices were trading in red and European shares got off to a mostly positive start at this afternoon. Nifty is currently trading at 6,708.80, down by 27.30 points after trading in a range of 6,741.85 and 6,696.80. There were 21 stocks advancing against 29 declining on the index.