Volatility personified

It was a day when the global indices gave mixed leads-the US indicators closed negative overnight, while all the Asian indices closed in green today.

The positive Asian trend was carried forward with the major European indices opening positive and sustaining the gains. At the time of writing this report, FTSE 100 was trading at 5263, about 20 points or 0.39% higher than its earlier close. Among the Asian markets, only the Sensex ended the day in red falling by 0.42%; other major Asian indices rose in the range of 0.06-1.71% each, with the Hang Seng surging the most. The Sensex ignored the positive indicators from the Asian and European markets and closed the day lower in red with volatility written all over it. The selling pressure in realty, consumer durables and banking space dragged the Sensex down in the closing hour of the trade.
In the pre-market report, we had mentioned that the market may remain volatile and range-bound today, and it did exactly the same. It was a day when the market remained range-bound, zigzagging between the negative and positive zones. The Sensex opened marginally lower by 2 points at 16808 and during the day it witnessed high volatility to see the high of 16939 and a low of 16706. However the Sensex couldn't sustain at higher levels and closed 70 points or 0.42% lower to its previous close owing to heavy selling in realty, consumer durables and banking stocks. The Indian market again ignored the positive indicators from the European and Asian markets. Nifty lost 26 points to end the day at 4971. The market breadth was very negative, as out of 2,802 stocks traded on the BSE, 1,743 stocks declined, whereas only 992 stocks advanced. Sixty seven stocks closed unchanged.

Among the sectoral indices, BSE FMGC surged the most with the gains of 0.89%, followed by BSE HC and BSE IT that rose by over 0.50% each. Among the losers, BSE Realty declined by 4.59% and BSE CD fell by 2.38%. On the stocks’ front, Zee Entertainment jumped the most and surged by 9.54% to Rs248.65, followed by Oracle Finance that rose by 5.34% to Rs2,180.55 and Balrampur Chini that advanced by 5.27% to Rs144.95. Stocks like Rei Agro, Cipla and IDBI Bank ended the day with gains of over 3% each. Among the losers, Punj Lloyd fell the most by 16.47% to Rs217.65, followed by Aban Offshore that fell by 10.36% to Rs1,381.05. Stocks like Indian Bank, IVRCL Infrastructure, Union Bank, PTC India, Jet Airways, Unitech, Rashtriya Chemicals, DLF and Hindustan Copper declined in the range of 5-8%.

On the turnover front, over 1.03 crore shares of Unitech changed hands on the BSE followed by Ispat Industries (0.69 crore shares), Punj Lloyd (0.60 crore shares), Power & Infrastructure (0.54 crore shares) and IDBI Bank (0.52 crore shares).

Events outcome

Dena Bank's net profit up by 21% to Rs124.64 crore
Lupin’s Q2 bottom line zooms by 38%
Oriental Bank of Commerce’s Q2 net profit rises by 14.31%
Ranbaxy Laboratories records a net profit of Rs186 crore
Union Bank of India’s net profit rises by 39.74%
Dabur India's net profit rises by 11.34%
IDBI Bank's net profit surges by 56.17%
Aban Offshore's net profit up by 7.38%