Market edgy on expiry jitters, pharma gains

Today's major news

Cadila Healthcare hits its 52-week high; the stock surges 4.60%

ICICI Bank gets full license for Singapore operations; the stock closes 1.05% lower

Larsen & Toubro secures orders worth Rs1,500 crore; the stock finishes 0.36% down

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Post-market summary

Global signals

European stocks were trading modestly higher taking cue from an upbeat session on the Wall Street. At the time of writing this report, FTSE 100 (UK) was trading 0.67% higher.

Of the major Asian indices, only Shanghai Composite (China) and Nikkei (Japan) ended lower—by 0.70% and 0.47% respectively. SGX Nifty closed 13 points higher.

US stock futures opened higher pointing to a higher opening on the Wall Street, with housing in the spotlight ahead of data on prices, existing-home sales and results from builder KB Home. However, the investors would be eagerly waiting for the existing home sales readings for February and FHFA home price index for January. On March 24, 2010, the investors would be eagerly waiting for Durable Orders ex Auto and New Home Sales for February.

Indian indices

With the expiry of March F&O contracts round the corner—on Thrusday (March 25, 2010)—stocks fluctuated as investors unwound positions. The passing of the US Healthcare Reform Bill, touted to be historic in nature, yesterday, which could benefit Indian drug makers saw pharmaceutical stocks (BSE Healthcare) open higher and stay higher.

Starting off merely 22 points over its yesterday’s close the Sensex was its day’s high (120 up its yesterday’s close) within minutes of trade. However it failed to hold on this early lead on expiry jitters. With little over two hours to the closing it was at its day’s low (54 points lower than its yesterday’s closing), but rebounded towards the end on buying in blue chips like Reliance Industries, Torrent Power and HDFC Bank to post gains of 40 points. The Nifty closed 20 points higher with F&O volumes spiking by over 20% over its yesterday's reading.

Market sentiment

The advance/decline ratio tilled in favour of bears at 0.84. Of the 2,879 stocks traded on the BSE, 1,504 (52.24%) stocks declined, whereas 1,266 (43.97%) stocks advanced. Hundred and nine stocks closed unchanged.

Sectoral & stock screening

Passage of US Healthcare Reforms Bill spiked BSE Health Care (up 1.54%) on news that it would benefit Indian drug companies. BSE Oil & Gas was at second position—up 1.13%. The rest of the sectors were either up or down by less than a percent.
On stocks’ front, the top three gainers were Areva T&D India (up 10.33%), Lanco Infratech (up 6.84%) and Cadila Healthcare (up 4.60%). The top three losers were NMDC (down 5.47%), Idea Cellular (down 3.70%) and Shree Renuka Sugars (down 4.66%).

Viewing volumes

On a day before the expiry of March F&O contracts, F&O volumes spurted to over 1.15 lakh. However, the cash segment did not see much change from average volumes. Steel maker, Ispat Industries was the most actively traded share with over 0.34 crore shares changing hands on the BSE, followed by India’s second largest realty company Unitech (0.34 crore shares), Industrial finance company IFCI (0.28 crore shares), wind turbine major Suzlon Energy (0.27 crore shares) and the Housing Development & infrastructure Ltd (HDIL; 0.23 crore shares).