Nifty Bounces Back

Equity clawed back on the back of short covering, which was imminent after selling seen in previous five sessions. The Nifty inched up above the 5450 level. But there was a bit of profit booking at higher levels. Global cues were quite supportive in early trade - the US markets closed above psychological levels on Tuesday.

Among frontliners, Tata Motors, Reliance Industries, NTPC, TCS, SBI, ICICI Bank and Sterlite Industries were gainers in early trade.

However, Tata Steel fell 0.75% to Rs 627 as against issue price of Rs 610 a share. The company listed its 5.7 crore shares on exchanges, which issued via follow-on public offer in January.

Bharti Airtel tanked over 3% following disappointing numbers but managed to showed smart recovery in few minutes after opening trade.

At 9:17 hours IST, the 30-share BSE Sensex was trading at 18,222, up 200 points and the 50-share NSE Nifty was at 5,470, up 53 points.

The CNX Midcap rose 66 points to 7,842. About 592 shares advanced as against 95 shares declined on National Stock Exchange.

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Sensex at 18K but Nifty holds 5400 at strong

The Sensex slipped below the 18,000 level - a psychologically important level at 14:30 hours. Traders could be withdrawing money by selling shares as foreign money started going out since January. Foreign investors were net sellers of Rs 6,000 crore in January; they too were net sellers for last three days.

Indices hit five months low today on the back of consistent sell-off for 5th consecutive session. However, the Nifty managed to hold back the 5400-mark.

All sectoral indices were under selling pressure. The Realty Index always hit the most due to panic selling - down 3.7%. FMCG, Auto, Oil & Gas and Capital goods indices were down 2-2.6%. Healthcare, Power, IT, Bank and Metal Indices fell 1-1.5%.

The 30-share BSE Sensex was trading at 18,023, down 305 points and the 50-share NSE Nifty tanked 95 points to 5,411, after hitting a low of 17,997.80 & 5,403.05, respectively. The broader indices too lost 1.5%.

However, indices managed to show some recovery immediately due to buying in HDFC, Sterlite, ONGC and Hindalco. Buying at lower levels too helped in recovery.

Heavyweight Reliance Industries tumbled below Rs 900, down 3%. Tata Motors was the top loser on Nifty with 6% fall. JSPL and BPCL went down over 4%.

NTPC, ITC, ICICI Bank, L&T, Wipro, Infosys, Reliance Communications, Kotak Mahindra Bank and Tata Steel lost 1.7-2.5%. TCS, SBI, HDFC Bank and BHEL declined 0.5-0.8%.

In midcap space, Apollo Tyres, Novartis India, Sadbhav Engg, Uttam Galva and Hathway Cable went up 3.6-5%. However, Jain Irrigation plunged 16.3%. SpiceJet, Escorts, GVK Power and Kingfisher Airlines fell 7.5-11%.

Sensex plunges

The benchmark Sensex shed over 200 points in trade today and continued its downtrend for fifth consecutive day at 11:51 hours. It tried to claw back in opening trade but that fizzled out again on the back of further profit booking, which could be because of outflow of foreign money.

Foreign institutional investors were net sellers to the tune of Rs 2900 crore in previous three sessions and in previous month - they were net sellers of nearly Rs 6,000 crore.

The 50-share NSE Nifty was consistently trading below 5450 level, led by fall in five shares as against one share advanced. It was trading at 5,440, down 65 points and the 30-share BSE Sensex slipped 210 points to 18,117.

Suresh Mahadevan, UBS Securities said FIIs could take the markets down by 10-15%. "Markets have fallen 10% in January on back of macro concerns. While we believe that higher inflation is priced in, we are yet to see significant selling by FIIs that can take markets down by 10-15%. Earning estimates are likely to be revised downwards. The Nifty will find support at 4500 levels."

Technology, capital goods, financial, cement, FMCG, power, healthcare and auto companies' shares were pulling the markets down. However, HDFC, ONGC, Kotak Mahindra Bank, Sterlite, DLF, Hindalco and Axis Bank were only losers in trade.

Wipro, TCS and Infosys from technology pack went down 2-3%. ITC and HUL from FMCG space tumbled 3% & 1%, respectively. Heavyweight Reliance Industries was down 1.4%.

Tata Motors from auto segment plunged over 4%. M&M, Hero Honda and Maruti lost 0.5-1%. In financial space, ICICI Bank, HDFC Bank and SBI were down 0.5-1.2%.

L&T and BHEL from capital goods space slipped two percent each. Reliance Communications and Bharti Airtel from telecom pack declined over 1%. Ambuja Cements and ACC tumbled 2-2.8%.

In midcap space, A2Z Maintenance, Novartis India, Info Edge, ARSS Infra and Glodyne Tech were up 3.5-5%. However, Jain Irrigation, SpiceJet, Escorts, Techno Electric and Kirloskar Oil lost 6-10%.

In smallcap space, Nagarjuna Agri, OCL India, BS TransComm, Phillips Carbon and Twilight Litaka gained 6.5-10% while Gemini Comm, Hawkins Cooker, Vikas WSP, Bheema Cements and India Securities fell 5-7.5%.

Nifty volatile

The benchmark Nifty started the trade with a flat to positive bias today, following upside in global markets. Indices were consolidating at their previous closing values after a consistent sell-off seen in previous four days. The Nifty was hovering around 5500 level.

Jagdish Malkani, Member, NSE is expecting that the markets may spike up by around 200-300 points. However, he is concerned that there will be a lot of selling in that rally.

Among frontliners, Bharti Airtel, Bajaj Auto, Maruti, Reliance Communications, Reliance Infrastructure, HDFC, Kotak Mahindra Bank, ONGC, SAIL, IDFC and Reliance Industries were on buyers' radar.

However, Tata Motors, GAIL, ICICI Bank, TCS, Wipro and ITC were witnessing selling pressure.

BPCL lost 1% on spike in crude. Crude oil was trading at USD 92 a barrel on New York Mercantil Exchange.

At 9:17 hours IST, the 30-share BSE Sensex was trading at 18,392, up 64 points and the 50-share NSE Nifty rose 15 points to 5,522.

The CNX Midcap went up 49 points to 7,971. About 508 shares advanced while 176 shares declined on National Stock Exchange.

Midcap & Smallcap

Unitech lost 3%. The company approached court to stop pledged share sale held against debt raised by promoter entities.

Jet Airways was down 1.5% and Kingfisher Airlines down 0.4%. PSU oil companies will hike ATF prices by 4.5% effective Tuesday, reports CNBC-TV18 quoting PTI.