 "Nifty ends below 8,200 on Dec F&O expiry; heavyweights drag")
Weakness in global markets coupled with the expiry of December derivative contracts took the markets lower in trade today. The S&P BSE Sensex slipped dropped 298 points to end at 27,209, while the 50-share Nifty ended 93 points weaker at 8,174.
Among sectoral indices, S&P BSE IT and Oil & Gas indices ended down over 1.3% each, followed by S&P BSE FMCG, Healthcare indices that closed 1% lower each. However, BSE Realty index, on the other hand, moved 1% higher by close of trade. The markets will remain closed on Thursday on account of Christmas.
“Volatility was at its best in the month of December. Trading range in the index was seen at 7,950 – 8,600. In the first half the index tested 8,600 levels but failed to sustain the same. A sell-off was triggered which pushed the index to 7,950 on the downside. A bounce back was seen towards 8,300 towards the end of the series. Nifty ended the series with a loss of 3.73 percent,” said Sahaj Agrawal, deputy vice-president for Derivatives Research at Kotak Securities in a note.
“For the January series, the range for the index is seen at 8090-8550. We expect the index to take support of 8,090 and bounce back towards 8,550-8,700 levels. On the other hand, caution is advised below 8090. We expect banking sector to continue with out-performance while metals and IT stocks are expected to remain under pressure,” he adds.
In the broader market, BSE midcap index ended the session with marginal higher with a gain of around 0.2% while BSE Smallcap index ended flat. Market breadth remained weak on the BSE with 1,487 shares declining and 1,340 shares advancing.
Rupee
The rupee is trading lower at 63.44 versus Tuesday's close of 63.28. The dollar index is trading above the key 90 level for the first time since March 2006 after strong US and UK economic data. Month-end dollar demand from oil companies is also hurting the Indian unit.
Key Stocks
The Cabinet, on Wednesday, cleared the coal and insurance ordinances. Under the order, foreign firms can increase their participation in insurance joint ventures from 26% to 49%, a potential lifeline for a sector starved of capital and squeezed by regulations. Max India, Reliance Capital, Exide Industries Aditya Birla Nuvo and Bajaj Finserve were up 1-4% on the BSE.
Shares of UltraTech Cement were trading higher by 3% at Rs 2,616 on the National Stock Exchange (NSE) after the company said its board has approved a proposal for the acquisition of cement units of Jaiprakash Associates Limited (JAL) located in Madhya Pradesh.
Pharma shares were under pressure with Dr Reddys Labs down2%. In a report issued on Tuesday, Health Canada said that the importers have decided to stop the importation and distribution of products manufactured by Dr Reddy's Labs and IPCA Labs at Srikakulam and Pithampur facilities respectively. However, the regulator has not asked Indian companies to recall drugs from the market.
Sun Pharma shed 1%. Cipla lost 0.7% shrugging off the news that South Africa's National Health Department awarded a 10 billion rand ($860 million) tender to four pharmaceutical firms to supply AIDS treatment drugs.
NTPC lost 2% on reports that the state-owned thermal power generation giant might lose the chance to build its first ultra-mega power project (UMPPs), as the government is likely to scrap the bidding process for the Cheyyur UMPP in Tamil Nadu.
Oil and gas shares ended weak. ONGC declined over 2%, GAIL lost over 3% and RIL slipped 0.7% on the back of declining crude oil prices. HDFC twins, BHEL, Bajaj Auto and M&M were some of the notable names in red among others on the 30-share Sensex and lost between 1.5-3%.
Among other shares, real estate developer Sobha ended the session with marginal gains after a foreign investor Platinum Investment Management Limited acquired over 300,000 shares of the company through open market. Among other stocks, Oberoi realty, Unitech, HDIL and India Bulls real estate were up between 1-4%.
Global Markets
Asian stocks gained and the dollar stood tall on Wednesday thanks to surprisingly robust U.S. economic growth, helping investors head into the Christmas holidays in a more relaxed mood after the global market turbulence of the past two weeks. Japan’s Nikkei gained over 1% while Hang Seng ended flat with a positive bias.
China's Shanghai Composite Index lost 2.5%, to 2,957.43, dropping below 3,000 - a key support level - for the first time since Dec. 17, and raising concerns of further falls.
European stocks gained on Wednesday ahead of the Christmas break, for the seventh straight session tracking a rally on Wall Street bolstered by unexpectedly strong US economic growth data.
Among sectoral indices, S&P BSE IT and Oil & Gas indices ended down over 1.3% each, followed by S&P BSE FMCG, Healthcare indices that closed 1% lower each. However, BSE Realty index, on the other hand, moved 1% higher by close of trade. The markets will remain closed on Thursday on account of Christmas.
“Volatility was at its best in the month of December. Trading range in the index was seen at 7,950 – 8,600. In the first half the index tested 8,600 levels but failed to sustain the same. A sell-off was triggered which pushed the index to 7,950 on the downside. A bounce back was seen towards 8,300 towards the end of the series. Nifty ended the series with a loss of 3.73 percent,” said Sahaj Agrawal, deputy vice-president for Derivatives Research at Kotak Securities in a note.
“For the January series, the range for the index is seen at 8090-8550. We expect the index to take support of 8,090 and bounce back towards 8,550-8,700 levels. On the other hand, caution is advised below 8090. We expect banking sector to continue with out-performance while metals and IT stocks are expected to remain under pressure,” he adds.
In the broader market, BSE midcap index ended the session with marginal higher with a gain of around 0.2% while BSE Smallcap index ended flat. Market breadth remained weak on the BSE with 1,487 shares declining and 1,340 shares advancing.
Rupee
The rupee is trading lower at 63.44 versus Tuesday's close of 63.28. The dollar index is trading above the key 90 level for the first time since March 2006 after strong US and UK economic data. Month-end dollar demand from oil companies is also hurting the Indian unit.
Key Stocks
The Cabinet, on Wednesday, cleared the coal and insurance ordinances. Under the order, foreign firms can increase their participation in insurance joint ventures from 26% to 49%, a potential lifeline for a sector starved of capital and squeezed by regulations. Max India, Reliance Capital, Exide Industries Aditya Birla Nuvo and Bajaj Finserve were up 1-4% on the BSE.
Shares of UltraTech Cement were trading higher by 3% at Rs 2,616 on the National Stock Exchange (NSE) after the company said its board has approved a proposal for the acquisition of cement units of Jaiprakash Associates Limited (JAL) located in Madhya Pradesh.
Pharma shares were under pressure with Dr Reddys Labs down2%. In a report issued on Tuesday, Health Canada said that the importers have decided to stop the importation and distribution of products manufactured by Dr Reddy's Labs and IPCA Labs at Srikakulam and Pithampur facilities respectively. However, the regulator has not asked Indian companies to recall drugs from the market.
Sun Pharma shed 1%. Cipla lost 0.7% shrugging off the news that South Africa's National Health Department awarded a 10 billion rand ($860 million) tender to four pharmaceutical firms to supply AIDS treatment drugs.
NTPC lost 2% on reports that the state-owned thermal power generation giant might lose the chance to build its first ultra-mega power project (UMPPs), as the government is likely to scrap the bidding process for the Cheyyur UMPP in Tamil Nadu.
Oil and gas shares ended weak. ONGC declined over 2%, GAIL lost over 3% and RIL slipped 0.7% on the back of declining crude oil prices. HDFC twins, BHEL, Bajaj Auto and M&M were some of the notable names in red among others on the 30-share Sensex and lost between 1.5-3%.
Among other shares, real estate developer Sobha ended the session with marginal gains after a foreign investor Platinum Investment Management Limited acquired over 300,000 shares of the company through open market. Among other stocks, Oberoi realty, Unitech, HDIL and India Bulls real estate were up between 1-4%.
Global Markets
Asian stocks gained and the dollar stood tall on Wednesday thanks to surprisingly robust U.S. economic growth, helping investors head into the Christmas holidays in a more relaxed mood after the global market turbulence of the past two weeks. Japan’s Nikkei gained over 1% while Hang Seng ended flat with a positive bias.
China's Shanghai Composite Index lost 2.5%, to 2,957.43, dropping below 3,000 - a key support level - for the first time since Dec. 17, and raising concerns of further falls.
European stocks gained on Wednesday ahead of the Christmas break, for the seventh straight session tracking a rally on Wall Street bolstered by unexpectedly strong US economic growth data.