Sunday, October 4, 2009

Indian Stocks Lingers Near 17000

. Sunday, October 4, 2009

By stockOzone team

Indian markets were witnessing a selling pressure Monday in line with other global markets. Profit booking was seen in oil&gas and banking stocks while defensive pharma and FMCG space showed some restraint.

“We expect a soft opening due to weak global cues. US stocks fell last week owing to disappointing economic reports, particularly on the jobs front. The big catalyst in the near term will be the quarterly earnings, both here and overseas.

What most players are looking for is whether the results will justify the market euphoria. We are inclined to believe there would be more positive surprises. Brace for a rollercoaster ride after a six-and-a-month rally,” said India Infoline report.

At 11:04 am, Bombay Stock Exchange’s Sensex was at 16982.89, down 151.66 points or 0.89 per cent. The index hit a low of 16898.11 and high of 17062.01.

National Stock Exchange’s Nifty was at 5034.20, down 49.20 points or 0.97 per cent. The broader index hit a low of 5011.40 and high of 5076.05.

“Trend deciding level for the day is 5084 / 17130. If Nifty trades above this level during the first half-an-hour of trade then we may witness a further rally up to 5110 – 5137 / 17200 - 17266. However, if Nifty trades below 5084 / 17130 for the first half-an-hour of trade then it may correct up to 5057 – 5030 / 17064 – 16994,” said Angel Broking note.

BSE Midcap Index was down 0.32 per cent and BSE Smallcap Index slipped 0.35 per cent lower.

Amongst the sectoral indices, BSE Oil&gas Index was down 1.31 per cent, BSE Bankex declined 1.29 per cent and BSE Realty Index slipped 1.22 per cent. BSE FMCG Index was up 1.05 per cent and BSE Healthcare Index moved 0.36 per cent higher.

Grasim Industries (-5.91%), Bharti Airtel (-2.21%), State Bank of India (-2.08%), Hindalco Industries (-2.01%) and DLF (-1.81%) were the major Sensex losers.

Gainers included ITC (2.26%), Sun Pharmaceuticals (1.92%), Mahindra & Mahindra (1.04%), Reliance Infrastructure (0.78%) and Wipro (0.42%).

Shares of Grasim were under pressure after after the Aditya Birla group’s decision to hive off the cement business of the company into unit Samruddhi Cement in a cashless transaction and later merge it with group firm Ultratech Cement.

Market breadth was negative on the BSE with 1469 declines and 858 advances.

US stocks fell for the fourth straight day on Friday as weak jobs data gave more evidence the economic recovery would be less robust than expected. The much bigger-than-forecast drop in September non-farm payrolls and a decline in factory orders pulled down economically sensitive sectors like industrials and energy.

The Dow Jones Industrial Average fell 21.61 points, or 0.23 per cent, to close at 9,487.67. The Standard & Poor's 500 Index dropped 4.64 points, or 0.45 per cent, to
1,025.21. The Nasdaq Composite Index lost 9.37 points, or 0.46 per cent, to 2,048.11.

Asian markets were sluggish as weak US jobs data stoked concerns of economic growth. Nikkei 225 was down 0.52 per cent, Hang Seng shed 0.17 per cent, Straits Times lost 2.97 per cent and Kospi shed 2.14 per cent.

Disclosure: Author does not own any of the stocks discussed here.

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