Today the session was extremely volatile for the Indian markets as it swings around 1000 points after opening in gap up of 300 points. Strong cues from the global markets supported the surge. This was followed by good amount of value buying across the board which kept the indices in green. Later in the mid session markets gave up most of its early gains on the back of heavy profit booking witnessed in the midcap (-3%) and smallcap (-4%) counters and turned into red. Most of the F&O stocks ended in deep red with heavy profit booking. Some sort of recover was seen on the back of positive cues from European indices but markets failed to sustain that. Metals, Power and Realty stocks were worst hit for the day while some selected IT; Bank and FMCG stocks provided support at lower levels. Major Asian markets closed in green while European markets are well with substantial gain.
Sensex ended down by 372 points at 17221.74. Weighing on the Sensex were losses in NTPC (203.7,-9 percent), Rel Energy (1815.85,-9 percent), Dr Reddys (567.2,-8 percent), L & T (3538.3501,-6 percent) and Hindalco (152.05,-5 percent). Losses were restricted by gains in Hero Honda (648.95,+7 percent), HDFC (2613.5,+3 percent), Satyam (400.05,+2 percent), RCVL (624.6,+2 percent) and SBI (2345.8999,+1 percent).
SBI was on focus on the back of on up coming bank's rights issue for Rs 16,700 crore, planned in February, was on track and would go through successfully. It has been priced at a 35 % discount at Rs 1,600. SBI will also continue to hold discussions with the unions to iron out issues concerning the merger of the six associate banks with itself. Currently Interest rates are not expected to rise and may remain the same as per the management words. In case the RBI maintains status quo on interest rates in the monetary policy, it would mean that there would be no further rise in interest rates in the banking sector. Management say that a cut in interest rates by the US Federal Reserve does not mean that there would be a downward revision in the rates here since the factors in India were different from those in the US. That is the resilience of the Indian economy. A recession in the US would push corporates there to cut costs and offshore their activities to India. This would bring in more business for India. The stock traded volatile and ended up in green.
Titan Industries came out with good quarterly numbers. Revenues stood at Rs.802 crs with an annualized growth of 52% led by higher gold prices. However, margins at EBITDA level was bit disappointing on high gold prices. Now the company is more focussed on Diamond Studded jewelry as the margins are higher there. The stock has done well till now.. one can have a long term investment view post the recent correction. We have a detailed research report on this where you can get more insights. Do read our Note.
Technically Speaking: Markets traded highly volatile with negative breadth. Advance: Decline ratio was in favour of Decliners where Advances were 400 against 2328 Decliners. Sensex made an intraday high at 18185 and low at 17070. Volumes for the day was low at Rs 6364 Cr. After the volatile session Sensex support is seen at 16700 and resistance at 18300 levels.
Sensex ended down by 372 points at 17221.74. Weighing on the Sensex were losses in NTPC (203.7,-9 percent), Rel Energy (1815.85,-9 percent), Dr Reddys (567.2,-8 percent), L & T (3538.3501,-6 percent) and Hindalco (152.05,-5 percent). Losses were restricted by gains in Hero Honda (648.95,+7 percent), HDFC (2613.5,+3 percent), Satyam (400.05,+2 percent), RCVL (624.6,+2 percent) and SBI (2345.8999,+1 percent).
SBI was on focus on the back of on up coming bank's rights issue for Rs 16,700 crore, planned in February, was on track and would go through successfully. It has been priced at a 35 % discount at Rs 1,600. SBI will also continue to hold discussions with the unions to iron out issues concerning the merger of the six associate banks with itself. Currently Interest rates are not expected to rise and may remain the same as per the management words. In case the RBI maintains status quo on interest rates in the monetary policy, it would mean that there would be no further rise in interest rates in the banking sector. Management say that a cut in interest rates by the US Federal Reserve does not mean that there would be a downward revision in the rates here since the factors in India were different from those in the US. That is the resilience of the Indian economy. A recession in the US would push corporates there to cut costs and offshore their activities to India. This would bring in more business for India. The stock traded volatile and ended up in green.
Titan Industries came out with good quarterly numbers. Revenues stood at Rs.802 crs with an annualized growth of 52% led by higher gold prices. However, margins at EBITDA level was bit disappointing on high gold prices. Now the company is more focussed on Diamond Studded jewelry as the margins are higher there. The stock has done well till now.. one can have a long term investment view post the recent correction. We have a detailed research report on this where you can get more insights. Do read our Note.
Technically Speaking: Markets traded highly volatile with negative breadth. Advance: Decline ratio was in favour of Decliners where Advances were 400 against 2328 Decliners. Sensex made an intraday high at 18185 and low at 17070. Volumes for the day was low at Rs 6364 Cr. After the volatile session Sensex support is seen at 16700 and resistance at 18300 levels.
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