Nifty shuts below 5650, Sept series gain 6% on policy moves

The NSE Nifty closed marginally lower on settlement day Thursday but the series gone by was quite strong due to consistent inflow of foreign money after Federal Reserve launched a third round of quantitative easing and European Central Bank's unlimited bond buying plan.

Indian benchmarks rallied over 6 percent in September series while the foreign institutional investors have net bought more than Rs 18,000 crore worth of shares in current month.

Another major reason was the reforms announced by the government to give a boost to sluggish economic growth. Cabinet approved FDI in retail and aviation sectors, also hiked diesel price by Rs 5 a litre and capped the use of subsidised LPG to 9 cylinders per family in a year.

Today the 30-share BSE Sensex fell 52.67 points to close at 18,579.50. Meanwhile, the 50-share NSE Nifty declined 13.95 points to 5,649.50 after a volatile trade.

The market has been in a consolidation mode, moving in a tight range of 5650-5700 for the fourth consecutive session today after rising over 2 percent last Friday. Experts still feel the rally will continue and the market will move towards 5900 level in the October series.

Dharmesh Dalal, head of equities, Antique Stock Broking, says that he believes that the rally does have lot of steam. India is again shining after certain rounds of sentimental booster by the government.

"First round of reforms has given a feel good factor to the market. In second round of reforms we can expect land reforms and rollout of GST," he says.

Independent Analyst Ambareesh Baliga expects the Nifty to make fresh moves in the October series and test 5,850-5,900 levels.

Oil & gas producers Reliance Industries and ONGC were down 1.65 percent and 2 percent, respectively.

Country's largest software services exporters TCS, Infosys and Wipro fell 1-1.5 percent.

Top private sector lender ICICI Bank lost 0.9 percent while its rival State Bank of India rose 0.8 percent.

Commercial vehicle maker Tata Motors and telecom operator Bharti Airtel slipped over 1 percent.

Sterlite Industries and SAIL tanked 3-3.5 percent as both stocks will be excluded from the Nifty 50 list with effect from tomorrow. Lupin (gained 1.7 percent) and Ultratech Cement (rose 3.55 percent) will be included in the CNX Nifty 50.

State-run power equipment manufacturer BHEL was down 2 percent while engineering conglomerate L&T rallied 2.2 percent.

FMCG majors ITC and Hindustan Unilever were up 1.25 percent and 1.6 percent, respectively.

Two-wheeler major Hero Motocorp lost 2.4 percent while its rival Bajaj Auto went up 1 percent. Private power producer Tata Power trimmed gains to 1.85 percent from 6 percent on profit booking.

Advancing shares outnumbered declining by 1482 to 1332 on the Bombay Stock Exchange.

51 stocks will not be available for trading in the NSE F&O segment from tomorrow. Some of them are Bajaj Hindusthan, MTNL, Aban Offshore, Balrampur Chini, Bombay Dyeing, Educomp, Delta Corp, VIP Industries, S Kumars, Orchid Chemicals, Lanco Infratech, HCC, HOEC and Oil India.

On the global front, European shares were trading higher ahead of budget announcement from the Spain. France's CAC, Germany's DAX and Britain's FTSE rose 0.4-0.8 percent while Dow Jones futures gained 67 points. Asian markets extended gains in late trade; Shanghai rallied 2.6 percent and Hang Seng was up 1 percent.

Indian equity benchmarks were completely directionless ahead of expiry, hovering around their previous closing values. The upmove in ITC, L&T and SBI counterbalanced the weakness in oil & gas, technology and private banking stocks.

The 30-share BSE Sensex moved up 6 points to 18,638.23 and the 50-share NSE Nifty rose 1.75 points to 5,665.20.

Shares of ITC, Larsen & Toubro, Mahindra & Mahindra, Tata Power and Maruti Suzuki gained 1-2 percent.

Country's largest lender State Bank of India was up 0.3 percent while their rivals ICICI Bank and HDFC Bank fell 0.4-0.8 percent.

Software services exporters TCS and Infosys lost over 1.5 percent. Oil & gas producers Reliance Industries and ONGC were down 1.5-2 percent.

Commercial vehicle maker Tata Motors and state-run power equipment manufacturer slipped over 1.6 percent.

The Indian rupee appreciated 30 paise to 53.21 against the US dollar, recouping yesterday's losses.

In the second line shares, RCF, Bajaj Corp, S Mobility, Max India and Religare Enterprises rallied 5-7 percent while MTNL plunged 16 percent. Tulip Telecom, Voltas, Prestige Estate and Ruchi Soya fell 4-5 percent.

Pantaloon Retail bounced back with 2 percent gains, which has been rallied 52 percent 15 days on the back of FDI approval in retail sector by the government.

The BSE Sensex and NSE Nifty erased gains following somewhat profit booking in European markets. Index heavyweight Reliance Industries and software services exporter Infosys extended losses to 1.33 percent.

The market has been rangebound for the fourth consecutive session today ahead of expiry. The BSE benchmark fell 31.59 points at 18,600 and the NSE benchmark declined 11 points to 5,652.30.

State-run power equipment maker BHEL, steel producer SAIL and oil & gas producer ONGC topped the selling list, losing over 2 percent. Cairn India lost 2 percent too.

Private sector lenders ICICI Bank and HDFC Bank were down 0.5 percent each while their rival State Bank of India trimmed gains to 0.8 percent from 1.6 percent.

Tata Power, one of the leading power producers in private sector retained its top position in the buying list with 5 percent gains after CERC hearing on Mundra project. Bench asked parties to submit their reply within a week and new date of hearing will be finalised in a week.

Engineering and construction major Larsen & Toubro and utility vehicle maker Mahindra & Mahindra rose over 1.4 percent. FMCG majors ITC and Hindustan Unilever were up 0.6-0.9 percent.

Country's largest telecom operator Bharti Airtel rose over 1 percent.

On the global front, France's CAC, Germany's DAX and Britain's FTSE trimmed gains to 0.1-0.4 percent from 0.7 percent.

Indian equity benchmarks remained in a positive terrain since early trade, though they were volatile ahead of expiry today. Country's largest lenders State Bank of India and ICICI Bank were up 1.5 percent and 0.5 percent, respectively.

The BSE benchmark gained 66 points at 18,697.80 and the NSE benchmark rose 18 points to 5,681.80. But the broader markets continued to outperform benchmarks; the BSE Midcap Index went up 0.8 percent and Smallcap up 0.6 percent.

European equity markets bounced back today; France's CAC, Germany's DAX and Britain's FTSE went up 0.7 percent in early trade. Asian markets extended gains in afternoon trade; Shanghai rallied 2.5 percent and Hang Seng gained 1.2 percent while Nikkei rebounded with 0.5 percent gains.

Back home, shares of United Spirits, a liquor baron Vijay Mallya's UB group company, have been the most active since yesterday. Recently the company confirmed that it is in talks with Diageo for stake sale. The stock has touched a new 52-week high of Rs 1,275 and gained 9 percent.

United Breweries Holdings too was among the most active stocks, which hit a 52-week high of Rs 155.85 and gained 4.4 percent. In fact all UB group stocks have been on buyers' radar since Tuesday. Kingfisher Airlines rallied nearly 8 percent ahead of lenders meet today while United Breweries rose 2.5 percent.

Shriram City (Chrys Capital offload stake in the company), CORE Education, SBI, ICICI Bank, HDIL and L&T were other most active shares on exchanges.

Engineering conglomerate Larsen & Toubro and utility vehicle maker Mahindra & Mahindra jumped 2 percent. Shares of Tata Power spiked 5 percent after hearing on Mundra project.

Tata Motors, Bharti Airtel, Tata Steel, Maruti, Jindal Steel and Bajaj Auto moved up 1-1.5 percent. Cigarette major ITC and private sector lender ICICI Bank were up over 0.4 percent.

Oil & gas producer ONGC and Reliance Industries were down 0.8 percent and 0.4 percent, respectively. Shares of Infosys, BHEL and Wipro fell 1-1.4 percent.

Indian shares extended gains to 0.5 percent, supported by auto, FMCG, banks, Tata pack and HDFC pack. The 30-share BSE Sensex rose 93 points to 18,725.13.

Meanwhile, the 50-share NSE Nifty moved up 26 points to 5,689.55 ahead of September futures settlement today. Hemant Thukral, Aditya Birla Money feels the index will not be able to breach 5,710 levels on the upside today. The September series is likely to end in this range of 50-60 points, according to him.

Tata Power topped the buying list, rising 6 percent as The Hindu Business Line reported that the Central Electricity Regulatory Commission takes up the final hearing on the tariff revision plea of Tata Power for the 4,000 MW Mundra project today.

The report says, "More than industry watchers, Reliance Power will be looking at the outcome, as it is also battling a case at the Delhi High Court on tariff revision against the procurers of its proposed 4,000 MW Krishnapatnam project in Andhra Pradesh. Reliance Power rose 4 percent.

The Indian rupee too gained strength today, appreciating 27 paise to 53.23 against the US dollar.

Engineering conglomerate Larsen & Toubro and utility vehicle maker Mahindra & Mahindra rallied 2 percent each.

Housing finance company HDFC and country's largest lender State Bank of India rose 1 percent each. Commercial vehicle maker Tata Motors and telecom operator Bharti Airtel were up 1 percent too.

Private sector lender HDFC Bank and software services exporter TCS gained 0.5 percent. Shares of Sun Pharma, Tata Steel, Bajaj Auto and Jindal Steel went up 1 percent.

Top car maker Maruti Suzuki jumped nearly 2 percent after HSBC raised the price target of the stock to Rs 1450 a share.

Software services exporter Infosys, power equipment maker BHEL, coal mining company Coal India and IT services provider Wipro fell 1-1.5 percent.

The NSE benchmark continued to move in a range of 5650-5700 since the beginning of this week, especially after rising 400 points on last Friday. Experts feel the Nifty may close in the same range on expiry today.

Vineet Bhatnagar, managing director of MF Global says the Nifty will close the September series somewhere between 5,650 and 5,700.

The 30-share BSE Sensex gained 56 points at 18,688.13 and the 50-share NSE Nifty moved up 16 points to 5,679.45. But the broader markets continued to outperform benchmarks; the BSE Midcap Index was up 0.6 percent and Smallcap rose 0.7 percent.

Engineering conglomerate Larsen & Toubro and utility vehicle maker Mahindra & Mahindra rallied 2 percent each.

Telecom operator Bharti Airtel rose 1.6 percent. Among auto stocks, commercial vehicle maker Tata Motors, top car maker Maruti and two-wheeler manufacturer Bajaj Auto were up 1-1.9 percent.

Housing finance company HDFC, private sector lender HDFC Bank and public sector lender State Bank of India went up 0.5-0.8 percent while ICICI Bank fell 0.4 percent.

Jindal Steel rallied 1.8 percent whereas country's largest coal mining company Coal India lost 1.8 percent.

State-run power equipment manufacturer BHEL declined 1.3 percent on further profit booking. Top software services exporter TCS went up 0.4 percent while its rivals Infosys was down 0.7 percent and Wipro slipped 1 percent.

Advancing shares outnumbered declining by 1345 to 776 shares on the Bombay Stock Exchange.

In the second line shares, Madras Cements gained for the second consecutive session, rising 5.35 percent. Anant Raj Industries shot up 5 percent as the company sold arm Aakarshak Realtors for Rs 28.6 crore.

ILandFS Transport, S Mobility and Religare Enterprises gained 4-5 percent. MTNL, Tulip Telecom, Voltas, AIA Engineering and Pantaloon Retail lost 2-6 percent.

The 50-share NSE Nifty opened flat to positive ahead of September series expiry today. Asian markets too were trading in a positive terrain in morning trade, recouping somewhat yesterday's losses that seen due to concerns over Spain bailout.

The BSE benchmark moved up 59.29 points to 18,691.46 and the NSE benchmark was up 14 points at 5,677.35.

The September F&O series will expire today, so Sudarshan Sukhani of s2analytics.com expects volatility to creep in. It is likely that Nifty may slip towards 5,600 because of this volatility, he told CNBC-TV18.

Maruti Suzuki, JSPL, DLF, L&T, M&M, Tata Steel, Siemens, HDFC and TCS were trading higher.

Cement stocks continued their upmove for the second consecutive session today. ACC and Ambuja Cements gained over 1 percent. Jaiprakash Associates rose 1.7 percent.

Reliance Communications was up 1 percent as The Economic Times reported that after raising prepaid charges, the company will lower tariff in post-paid. Reliance Capital rose 1 percent.

ICICI Bank, Infosys, Tata Power, GAIL, Wipro, SAIL and Coal India were under pressure.

The CNX Midcap Index went up 28 points to 7745. About two shares advanced for every share declining on the National Stock Exchange.

In the second line shares, Kingfisher Airlines gained 3% ahead of lenders meet today.

RCF was up 2 percent. Shree Renuka Sugars, Dish TV and HDIL were up over 1 percent.

Anant Raj Industries was up 2.7 percent as the company sold arm Aakarshak Realtors for Rs 28.6 crore.

Jindal Stainless rallied 2.5 percent; the company received shareholders' nod to raise up to Rs 1,552 crore for capex and debt retirement.

Religare Enterprises rose 2 percent. CNBC-TV18 reported quoting sources that Religare is likely to sell 26 percent stake in Religare MF.

Voltas, Tulip Telecom, MTNL, PFC and Pantaloon Retail lost 1-5 percent.