Markets Reverse Losses, End In Gains

After seeing high volatility for the first 3 days of the week and a negative opening today, the markets ended in gains today. The Nifty managed to end above the 5300 level, which it broke yesterday.

Meanwhile, international investor and Executive Chairman, Templeton Emerging Markets Group, Mark Mobius has said that he will prefer India to China for the long term as the Indian market is growing at a faster pace. JP Morgan has also said that India will benefit due to the slowdown in China. 

Among the global indices, the Asian markets remained in the red. Nikkei and Shanghai ended down by 1% and Hang Seng remained flat with a negative bias.

The European indices have continued to trade in negatives. CAC and DAX currently are trading with 0.5% losses each, while FTSE has taken losses of 0.2%.

As the broader sentiment improved by the end of the day, most of the sectoral indices turned green. Realty was up 1.8% and HC was in 0.7% gains. IT, Teck and Bankex saw a recovery of over 0.5% by closing. However, even the improvement in the sentiment could not lift the Auto, Oil & Gas and Metals indices into the positives.

21 of the Sensex stocks ended the day in green, which was a remarkable turnaround. Hindalco was the top gainer with 2.2% gains. TCS, Cipla, Tata Motors, Wipro, HDFC and BHEL also ended higher by 1%. GAIL, Maruti Suzuki, Tata Steel and Jindal Steel, however, ended the day with over 2% losses each.

Among the other shares, Tech Mahindra lost over 5% as British Telecom started offloading its stake in the company. JP Power, Jain Irrigation and Neyveli Lignite also remained laggards as compared to the broader market. JSW Energy was on the buyers’ radar as the company's shares soared by 6%. Adani Ports and Adani Enterprises also saw some buying. Apollo Tyres, AstraZeneca Pharma, GMR Infra, etc. also saw gains of 4% each.

The shares of Orchid Pharma lost 0.5% as the company sold its drug unit to Hospira. Tulip Telecom closed the day in losses, and the company has now been downgraded from ‘junk’ to ‘default’ status.

Glenmark Pharma hit a new high after the International Centre for Dispute Resolution (ICDR) has ruled in its favour in the Napo arbitration. The company can now distribute and commercialise Crofelemer in 140 emerging countries.

Overall, the health of the market oscillated between positive and negative sentiments. This turned positive by closing, which is reflected in higher advances than declines.

All eyes are now turned to Jackson Hole, where Fed Chairman Ben Bernanke will deliver a speech tomorrow that is expected to set the tone for the world indices.