Mumbai: The 30-share BSE Sensex closed marginally lower amid choppy trade on first day of the week while it has shrugged off the positive global cues. Equity benchmarks were remained in a negative terrain due to sharp fall in heavyweight Reliance Industries post second quarter earnings. The BSE benchmark fell 57.60 points, to close at 17,025.09 and the NSE Nifty dropped just 14.05 points, to end at 5,118.25.
Hiren Ved, director and chief investment officer of Alchemy Capital Management is sceptical about the chances of the market breaking out of the trading range. "We are still pretty much in a very broad range between 4700 and 4800 on the downside, and may be 5400-5500 on the upside," he says.
"We will have to spend a lot of time before the issues that we face, both domestically as well as internationally, get sorted out," he rues.
Capital goods, power, telecom, select technology and healthcare companies' shares too were on sellers' radar. However, buying in auto, banking, realty and FMCG stocks has limited the downside to major extent.
Reliance Industries, which has 11 per cent weightage on Sensex, fell nearly 4 per cent post second quarter results of FY12. RIL's July-September quarter net profit rose 15.8 per cent year-on-year, to Rs 5,703 crore. This was marginally lower then the CNBC-TV18 poll projecting the bottomline at Rs 5,750 crore. Net turnover for the quarter rose 35 per cent to Rs 80,790 crore, better than the poll estimate of Rs 79,800 crore.
Narendra Taneja of Upstream says the flattish growth on the D6 or gas part will continue, as indicated, for another three quarters. Further, Taneja says he see further decline in the production for a time period of about 6 months to about 12 months.
Major largecaps like NTPC, TCS, BHEL, L&T, Wipro and BHEL fell between 1 per cent and 2.7 per cent.
However, Tata Motors bucked the trend very nicely, surging 4.5 per cent especially post global sales data. The company posted very strong global sales again in September due to new launches like Land Rover Evoque and Jaguar XF, which are doing well in main market of UK.
Maruti Suzuki gained more than 2 per cent on the back of short covering. The company has resumed production at some units of Manesar plant.
From the financial space, HDFC, ICICI Bank, HDFC Bank and Axis Bank gained 0.9-1.7 per cent. SBI closed up just 0.3 per cent, which gained 2 per cent during the day.
Among others, ONGC was up 1 per cent and Cairn India rallied 3.7 per cent.
The broader indices too were flat. Total traded turnover on both exchanges was more than Rs 1.19 lakh crore.
On the global front, Asian markets closed 1-2 per cent higher while Shanghai rose just 0.4 per cent. European markets were up more than 0.6 per cent, at the time of closing of Indian equities.
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