Markets end down dragged by metal, banks; Coal India, ONGC bucks trend

cleanmediatoday.blogspot.com

Markets end down dragged by metal, banks; Coal India, ONGC bucks trend
Clean Media Correspondent

Mumbai, Aug 24 (CMC) Benchmark share indices ended lower, amid a volatile trading session, weighed by weakness among Metal, Banks and Capital Goods shares. Weak performance of the global markets also dampened the sentiments among local investors.

The Bombay Stock Exchange’s 30-share Sensex closed at 17,783 down 67 points. The National Stock Exchange’s 50-share S&P CNX Nifty closed down 29 points at 5,387. The Sensex and the Nifty touched an intra-day low of 17,725 mark and 5,371 levels, respectively.

“The Nifty has important support at 5,368 and then at 5,345 we are likely to hold these levels. On the upside resistance is at 5,440 which was yesterday’s high. If we cross above 5,440 then we can go upto 5,510 levels,” said Salil Sharma, Technical Analyst, Partner, kapursharma.com.

Global stock, bond and commodity markets saw investors selling riskier assets on Friday, as they scaled back expectations of strong stimulus from the U.S. Federal Reserve and fretted about the euro zone’s debt troubles and widespread economic weakness.

European shares, which have suffered their worst run in over a month in the last few days, followed falls in Asia to open down 0.05 percent, leaving the MSCI global index down 0.35 percent.

Back home, on the sectoral front, BSE Realty index crumbled by over 2% followed by counters like Banks, Power, Capital Goods, Metal, Technology, Consumer Durable and Oil & Gas, all declining between 0.1-1%. However, BSE FMCG, Healthcare and Auto indices are ended marginally in green. 

Reliance dropped 1.5% to Rs 782 and was the biggest dragger among Sensex stocks. Metal shares lost ground. Tata Steel shed 2.7% to Rs 387. Jindal Steel and Hindalco slipped 2% each. ICICI Bank contributed 24 points to the Sensex’s fall. Among other losers were Infosys, SBI and Bharti Airtel. 

However, Coal India added 2.2% to Rs 367 on reports that the state-owned mining company has decided to buy back its own shares. ONGC added 2% at Rs 287 after it signed an agreement with Mitsui & Company of Japan for a wide ranging cooperation in the gas and LNG businesses. 

Cipla, Maruti Suzuki and Sterlite advanced in trades as well. 

Reliance Power rose 2.3% after the company said it has signed a memorandum of understanding to form a strategic partnership with China Datang Corporation (CDT), represented by the China Datang overseas Investment Company (CDTO), for development and operation of power and energy projects in India and overseas markets. This marks first such strategic partnership between India and China in the power sector, Reliance Power said in a statement. 

Among other shares, Jyoti Structures surged 5% after the company said it has received domestic and export orders worth Rs 1,491 crore.

GTL Limited dipped 4% after its promoters pledged additional 18% stake of total equity of the company with IDBI Trusteeship Services.

Gillette India dipped 5% at Rs 2,224 after reporting 12% year-on-year (yoy) drop in net profit at Rs 76 crore for the year ended June 2012 due to currency devaluation, and increase in commodity prices as well as manufacturing charges.

The broader markets underperformed the benchmark indices. BSE midcap and Smallcap indices slumped by almost 1% each.

The markets breadth in BSE ended weak with 1,634 shares declining and 1,185 shares advancing.