VOLATILE MOVEMENTS
SENSEX FELL BY 251 POINTS
The benchmark Sensex today fell 251 pts, its biggest drop in six days, to end at 25,062.67 weighed down by losses in ONGC and RIL shares after the government deferred a decision to hike natural gas prices and caution prevailed on the last day of June derivative contracts. Brokers said a sudden gust of selling at the fag-end in realty, banking and metal shares also pulled down indices. The BSE 30-share barometer resumed lower and remained in negative terrain throughout the day before falling sharply at the end to settle at 25,062.67, a net drop of 251.07 points or 0.99 per cent. In six out of last straight seven trading sessions, the Sensex has showed a bearish trend. The index's drop today was its steepest since 274.94-point fall on June 18. Shares of gas producers were at the receiving end after the Cabinet Committee on Economic Affairs last evening postponed a hike in natural gas prices by 3 months and decided comprehensive discussions were necessary on the issue. "This (postponement of decision) has been taken negatively by the market, as it was contrary to the general expectations," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio. All ten shares from sectoral S&P BSE Oil&Gas index ended with losses between 0.81 pct and 5.89 per cent. Sensex constituents RIL and ONGC contributed almost 150 points to the Sensex fall today. Other Sensex-based counters like HDFC, HDFC Bank, ICICI Bank, Infosys, Tata Motors, SBI, NTPC, Gail India and Coal India too suffered marked losses. Profit-booking on the last day of derivatives contract also weighed on the market. As markets enter the July series, volatility is expected to remain high on account of the Union Budget, said Sahaj Agrawal, Deputy Vice President- Derivatives Research, Kotak Securities. "The sentiment today further deteriorated after an update on weak monsoon by IMD," said Jayant Manglik, President-retail distribution, Religare Securities. The broader 50-issue CNX Nifty of the NSE tumbled 76.05 points to end at nearly three-week low of 7,493.20. The Nifty's drop today was its sharpest since 107.80-point loss on June 13.
Nifty opened lower and closed
further lower and below 7500 mark. Nifty was unable to go past 7600 to get into
short term bullishness. Strong support is seen around 7450 / 7400 mark. Pre
budget rally can be expected from next week with out breaching the above
support level. While Global cues, Quarterly results and Funds
flow are expected to broadly guide the market movement, based on the
present market position, market can be expected to be better during midsession
and could experience profit booking towards close.
Nifty
7493 -76
Review for Thursday :: Oil and Gas stocks
triggers Sell off … !!!
Market opened lower following Governments’ decision to
defer Gas Price hike as Oil Gas sector stocks opened sharply lower. Thereafter,
market traded in a narrow range for most part of the day an fell sharply to
close below 7500 mark. Fall could also be attributed to derivative expiry woes.
36 of Nifty stocks ended lower and broader market too was marginally negative
with Advance Decline ratio at 1:1.2. . Barring Media and Pharma, all
other sectoral indices led by Energy, Realty, PSU Bank, Metal indices declined.
Energy stocks such as Reliance and ONGC were the major losers .Reliance , ONGC
and HDFC Duo dragged down Nifty by more than 50 points.
Wipro, Tech Mahindra, L&T, HCL Tech, Dr Reddy and
Axis Bank remained gainers among Nifty stocks while ONGC,
Reliance, DLF, NTPC, Grasim and Mc Dowell remained major losers.
Shriram Transport, Arvind, UPL, Sun TV, Just
Dial remained major gainers among F&O stocks while ONGC,
Petronet, IOC, Hind Petro, PFC declined among F&O stocks. SENSEX FELL BY 251 POINTS
The benchmark Sensex today fell 251 pts, its biggest drop in six days, to end at 25,062.67 weighed down by losses in ONGC and RIL shares after the government deferred a decision to hike natural gas prices and caution prevailed on the last day of June derivative contracts. Brokers said a sudden gust of selling at the fag-end in realty, banking and metal shares also pulled down indices. The BSE 30-share barometer resumed lower and remained in negative terrain throughout the day before falling sharply at the end to settle at 25,062.67, a net drop of 251.07 points or 0.99 per cent. In six out of last straight seven trading sessions, the Sensex has showed a bearish trend. The index's drop today was its steepest since 274.94-point fall on June 18. Shares of gas producers were at the receiving end after the Cabinet Committee on Economic Affairs last evening postponed a hike in natural gas prices by 3 months and decided comprehensive discussions were necessary on the issue. "This (postponement of decision) has been taken negatively by the market, as it was contrary to the general expectations," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio. All ten shares from sectoral S&P BSE Oil&Gas index ended with losses between 0.81 pct and 5.89 per cent. Sensex constituents RIL and ONGC contributed almost 150 points to the Sensex fall today. Other Sensex-based counters like HDFC, HDFC Bank, ICICI Bank, Infosys, Tata Motors, SBI, NTPC, Gail India and Coal India too suffered marked losses. Profit-booking on the last day of derivatives contract also weighed on the market. As markets enter the July series, volatility is expected to remain high on account of the Union Budget, said Sahaj Agrawal, Deputy Vice President- Derivatives Research, Kotak Securities. "The sentiment today further deteriorated after an update on weak monsoon by IMD," said Jayant Manglik, President-retail distribution, Religare Securities. The broader 50-issue CNX Nifty of the NSE tumbled 76.05 points to end at nearly three-week low of 7,493.20. The Nifty's drop today was its sharpest since 107.80-point loss on June 13.
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