Markets end in red on profit-booking, sensex down 284 points

Mumbai, May 3: Stocks: Slew of macro factors including geo-political tensions ahead of the Lok Sabha election results, pulled down the S&P BSE benchmark sensex by 284 points to end at 22,403.89.

Volatility is the key word as flat manufacturing growth by the HSBC survey for April, drop in core sector industries data, lower monsoon forecast and above all tension mounting over Ukraine affected the sentiment as the market looking for direction in Election Results due to start from May 16.

The HSBC survey for April showed manufacturing sector remained ‘steady’ even as domestic demand making up for fall in exports.

Growth in eight core sector industries decelerated to 2.6 per cent in 2013-14, the lowest in almost a decade, said government data.

Investors worries over developments in Ukraine lingered on as the US has already announced some sanctions and also threatened to impose more economic sanctions on key sectors of Russia’s economy.

The S&P BSE benchmark sensex resumed higher at 22,717.59 and moved in a range of 22,721.36 and 22,284.96 before ending the week at 22,403.89, disclosing a loss of 284.18 points or 1.25 per cent.

The NSE 50-share Nifty also dropped by 87.95 points or 1.30 per cent to end at 6,694.80.

Shares of metal, capital goods, realty, power and auto sectors were the major losers of the week.

However, FIIs continued their buying spree by investing net Rs 1,869.45 crs as per the data issued by SEBI, including the provisional figure of May 2.

Mr. Jignesh Chaudhary, Head of Research, Veracity Broking Services said,”The Equity Markets observed some correction in the week in which there was also some effect of parliamentary elections in India. The Markets will also eye the earnings of some major blue chips. FII`s have continued to dominate the markets they have continued in the buying trend for scripts but have been seller in future Index.”

Bullion: Both the precious metals, gold and silver declined at the domestic bullion market during the holiday shortened week on stockists selling against the back drop of sliding demand amid global uncertainty.

The bullion market was closed on Thursday, May 1, on account of “Maharashtra Day“.

The yellow-metal plummeted below the key psychological Rs 30,000 per 10 gm mark following aggressive profit-taking by stockists and investors as well as lack of local buying interest at existing levels.

Despite a sharp prices correction, the shiny metal even failed gain momentum on the occasion of Akshaya Tritiya, country’s biggest gold buying festival and ongoing wedding season as most retail consumers sidelined on expectations of further fall prices.

The industrial metal, silver also moved down owing to reduced offtake from industrial users.

Globally, the shiny-metal reclaimed the key important USD 1,300 an ounce level on safe-haven buying triggered by escalating geopolitical tensions despite Federal Reserve’s decision to reduce its monthly bond-buying program and robust US jobs data.

While, silver remained under intense selling pressure.

In New York, gold for June delivery edged up to settle at USD 1,302.90 an ounce.

Silver for May contract slipped to USD 19.55 an ounce.

Standard gold (99.5 purity) resumed slightly lower at at Rs 30,120 and fluctuated between a high of Rs 30,155 and a low of Rs 29,730 before concluding at Rs 29,960 from preceding weekend’s level of Rs 30,155, showing a loss of Rs 195 per 10 grams.

Pure gold (99.9 purity) commenced modestly weak at Rs 30,270 and hovered between a high of Rs 30,305 and a low of Rs 29,880 before finishing at Rs 30,105 over its previous weekend’s close of Rs 30,305, registering a fall of Rs 200 per 10 grams.

Silver ready (.999 fineness) started weak at Rs 43,700 and dropped further sharply to touch a low of Rs 42,530 before ending at Rs 43,440 from last weekend’s close of Rs 43,805, disclosing a loss of Rs 365 per kg.

“So this means that we might expect some correction in the coming trading sessions. There was huge profit booking which was observed in the entire trading week investors took advantage of some outperformed stocks in the trading week. The Technical Indicators are suggesting that the markets would be bullish in the coming week the BSE Sensex is expected to trade in the range of 21,870 to 22,550 and CNX Nifty is expected to trade in the range of 6520 to 6750,” he added.

Major losers from the sensex pack were Tata Steel 8.33 pct, Hindalco Ind 7.81 pc, SSLT 6.57 pct, Larsen 6.49 pct, BHEL 5.45 pct, Bajaj Auto 4.62 pct, Bharti Airtel 4.50 pct, Maruti Suzuki 3.61 pct, NTPC 3.58 pct, HUL 3.16 pct, Gail India 2.45 pct, Tata Motors 2.15 pct, RIL 2.02 pct, SBI 1.79 pct, Coal India 1.52 pct, HDFC bank 1.29 pct, M&M 1.28 pct, Icici bank 1.38 pct and ITC 1.00 pct.

However, Dr Reddy’s Lab rose by 4.25 pct, ONGC 2.41 pct, Cipla 1.84 pct, HDFC 1.76 pct, Wipro 1.51 pct, Infosys 1.43 pct and Sun Pharma 1.15 pct,

Among the S&P BSE sectoral indices, Metal dropped by 5.68 pct followed by CG 5.46 pct, Realty 4.89 pct, Power 3.44 pct, Auto 2.30 pct, bankex 1.47 pct and FMCG 1.18 pct.

However, Healthcare rose by 2.24 per cent.

Small-cap and Midcap indices also moved down by 0.85 pct 0.22 pct due to selling from retail investors.

The total market turnover at the BSE and NSE was Rs 11,063.01 crores and Rs 55,832.91 crores respectively as against the last weekend’s level of Rs 10,797.16 crore and Rs 59,392.71 crore.

The benchmark six-month forward dollar premium payable in October closed the week at 225-1/2-227-1/2 paise. Far-forward contracts maturing in April, 2015 ended at 456-458 paise.

The RBI fixed the reference rate for the USD at 60.2250 and for the euro at 83.4590 from 61.1163 and 84.5220, respectively.

The rupee recovered against the pound sterling to end at 101.49 from last weekend’s close of 101.88 and also firmed up against euro to finish at 83.38 from 83.85.

However, it bounced back against the Japanese currency to close at 58.72 per 100 yen from preceding weekend’s close of 59.38.