Markets Close Near Lowest Point

The Indian markets remained in the negative territory in today’s trade, ending at nearly the lowest point of the day. The Sensex and Nifty closed lower by 0.44% and 0.32% respectively. Among the sectoral indices, FMCG, an investor favourite, plunged lower and ended the day 2% down. Others like Metals and Consumer Durables also closed lower by 1.46% and 1.17% respectively. Capital Goods, Oil & Gas and Auto were the only 3 indices that closed in the positive territory.

In the other Asian markets, Hang Seng and Shanghai closing the trades lower, down by 0.45% and 0.32% respectively. The Nikkei zoomed higher, closing the day almost 2% higher following a Bloomberg report which said that the Yen has slid versus its major counterparts with the Asian stocks rising and the extra yield investors receive from US securities climbing to the highest in four months.

The European markets are trading in a very narrow range today, with FTSE and CAC marginally down by 0.15% and 0.04% respectively. The DAX, though, is trading marginally higher. The European stocks did not see much change, with foreign direct investment into China dropping to a two-year low, offsetting better-than-estimated UK retail sales in Jul 2012.

Dow Jones Futures is currently trading higher by 13 points or 0.09% at 13148, indicating a positive sentiment in the US markets.

Back home, ITC remained the leading index loser. The stock plunged by 3.59% to Rs 258.15, which is the lowest point of the day. Metals stocks continued their weakness, with Hindalco and Sterlite Industries closing lower by 2.75% and 2.44% respectively. The Banking space also saw some selloff, as major players like ICICI Bank, HDFC Bank and SBI closed lower in the range of 0.9%-1.30%. Others like Bajaj Auto, HUL and Coal India closed marginally in the red.

On the other hand, Auto majors Hero MotoCorp and M&M were among the leading gainers, ending higher by 2.69% and 2.13% respectively. Other stocks like Tata Motors, RIL, L&T, Cipla, etc. also closed in the positives.

Claries Lifesciences surged 19.69%, closing the day at Rs 207 per share after USFDA has cleared the warning letters on its facility. Ranbaxy also moved up smartly by 2% to Rs 510.25 on investor speculation that the company may get similar approval from the US health regulator.

As we mentioned in our earlier updates, Jupiter Infomedia got listed on the bourses today. The scrip closed almost at its highest point at Rs 22.05 per share, 10% higher than its issue price of Rs 20 per share.

The market breadth, which indicates the overall health of the market, was negative. Out of the 3283 stocks traded on the BSE, 1712 declined, 1429 advanced and 142 remained unchanged.

We expect the markets to remain volatile for tomorrow too.