Market ends in negative on profit-booking

The Indian equity ended in the red on Septemeber 12 on profit-booking as caution crept in ahead of the release of key macroeconomic numbers, later in the day.

The five-day gains in Nifty and three-day rally in Sensex came to a halt after a fresh wave of selling emerged hours before the government data could show the country’s retail inflation prints for August and industrial production data for July.

“Firm global cues led to a strong start but anxiety ahead of macroeconomic data, including IIP and CPI triggered profit-taking as the session progressed,” said Ajit Mishra, Vice President – Research at Religare Broking.

However, the losses were capped due to a sharp rise in rupee against the US dollar and a fall in global crude oil prices amid firm global cues.

Brent Crude fell over 1 percent while the rupee climbed 53 paise to end at 71.13 per dollar.

The Sensex index closed the day with a loss of 167 points, or 0.45 percent, at 37,104.28, with 8 stocks in the green and 22 in the red.

ICICI Bank, Sun Pharma, IndusInd Bank, HDFC Bank and State Bank of India emerged as the top gainers in the Sensex pack.

On the flip side, Yes Bank, Tata Motors, Maruti Suzuki, Axis Bank and Bharti Airtel closed as the top losers.

The Nifty pack fell 53 points, or 0.48 percent, to end at 10,982.80. Among the 50 stocks in the index, only 15 could logged gains.

In the broader markets, BSE Midcap and Smallcap indices closed 0.18 percent down and 0.12 percent up, respectively.

The auto pack fell 1.92 percent, ending as the top loser among the sectoral indices on BSE. It was followed by BSE Telecom (down 1.68 percent), BSE Energy (down 1.37 percent) and BSE Consumer Discretionary Goods & Services (down 1.10 percent).

The breadth of the market remained positive as 1,369 stocks logged gains against 1,110 stocks that incurred losses.

Top news of the day:

Prime Minister Narendra Modi on September 12 launched an ambitious pension scheme for farmers. Under the ‘Pradhan Mantri Kisan Mandhan Yojana’, farmers between ages 18 and 40 years will get Rs 3,000 monthly pension after reaching 60.

Top Muslim body Jamiat Ulama-i-Hind (JuH) passed a resolution stating that Kashmir is an “integral part” of the country and said the welfare of the people in the valley lies in their integration with India.

National Aeronautics and Space Administration (NASA) will share before and after images of the location where Chandrayaan 2’s ‘Vikram’ lander made a hard-landing, The New York Times has reported.

The government will come out with new export credit scheme, said Commerce Minister Piyush Goyal.

West Bengal Chief Minister Mamata Banerjee on September 12 took out a rally in north Kolkata to protest against National Register of Citizens (NRC) in Assam.

Pakistan said Prime Minister Imran Khan will make a “policy statement” on Kashmir on September 13 during his public address at the PoK’s capital Muzaffarabad, PTI reported.

Stocks in news:

Shares of Khadim India surged 15.47 percent to Rs 234 on BSE on September 12, extending the gains into the second consecutive session, after the company announced opening up of an arm in Bangladesh.

Shares of Granules India rallied 5.25 percent to Rs 104.20 after receiving Establishment Inspection Report from the US health regulator for Bonthapally unit.

Shares of Tata Motors cracked 4.76 percent to close the day at Rs 127.95 after the auto major reported a 32 percent decline in global sales, including that of Jaguar Land Rover (JLR), to 72,464 units in August. It had sold 1,07,030 vehicles in the year-ago period.

After two consecutive sessions of gains, shares of Yes Bank witnessed profit-booking and fell 5.10 percent to close the day at Rs 67.95.

Bank of Baroda shares climbed 2.22 percent to Rs 101.25 after the CNBC-TV18 reported, quoting sources, that the state lender was looking at selling almost Rs 9,000 crore of bad loans.

Extending the gains into the fifth consecutive session, shares of Wockhardt closed with a robust gain of 11.45 percent at Rs 324.65. In the five sessions of gains, the stock has surged by 39 percent. On September 10, the company, in a regulatory filing, had said its board of directors has allotted 30,000 equity shares for employee stock options under employee stock options scheme of the company.

Global updates:

World stocks climbed to their highest in six weeks as the European Central Bank prepared to offer new stimulus measures and the United States and China made mutual concessions in their trade dispute, improving demand for riskier bets, Reuters reported.

Major Asian markets ended mixed on September 12. Shanghai Composite index closed 0.75 percent higher at 3,031.24, Nikkei gained 0.75 percent to end at 21,759.61 while Hang Seng declined 0.26 percent to 27,087.63.

Technical view on the market:

After showing a narrow range-bound movement in the last session, the Nifty ended in negative today, ending lower by 52 points. A long negative candle was formed which has engulfed a small range movement of the last session.

“Technically, this pattern indicates a formation of a bearish engulfing pattern, which signals a profit booking at the higher levels,” said Nagaraj Shetti – Technical & Derivative Analyst, HDFC securities.

“The present weakness is unlikely to damage the near-term positive sentiment of the market and we are likely to see upside bounce from the lows. Next lower supports to be watched are at 10,920-900 levels,” Shetti added.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.