MUMBAI: The S&P BSE Sensex witnessed a choppy session on Friday in absence of fresh buying interest after the recent sharp rally. Gains in technology, FMCG and realty were offset by losses in banks, pharmaceuticals and capital goods sectors.
“Q4 has been weaker than expected. 40% of the companies that have reported so far have witnessed earnings downgrades and FY14 Sensex EPS has been lowered by 1.6% during the season so far. This coupled with strong market gains over the last few weeks and potential disappointment on rate action implies a market correction is possible. Our top picks are ICICI BankBSE 0.62 %, Axis BankBSE -0.36 %, L&T, Tata MotorsBSE 1.25 % & Zee Entertainment,” said Mahesh Nandurkar of CLSA.
At 09:35 a.m., the 30-share index was at 20,257.01, up 9.68 points or 0.05 per cent. It touched a high of 20,308.97 and a low of 20,217.49 in early trade today.
The Nifty was at 6,165.65, down 4.25 points or 0.07 per cent. It touched a high of 6,188.60 and a low of 6,158.10 in early trade today.
“The humongous rally was followed by a range bound session yesterday. However, the bias remained positive throughout the session. There is no major change in the price structure. Hence, we continue to expect that the market may move higher towards 20,438 – 20,700 / 6,200 – 6,280 levels in the near term. On the flipside, 20,096 / 6,116 level would act as an immediate support for our market,” said an Angel Broking note.
“Considering the daily chart, we are of the opinion that Tuesday’s low of 19,652 / 5,970 (also coincides with hourly ’89 EMA’) has now become a strong near term base for our market. Hence, only a violation of this level would result in loss of near term optimism,” the report added.
The S&P BSE Midcap Index was up 0.08 per cent and the S&P BSE Smallcap Index was 0.16 per cent higher.
Among the sectoral indices, the S&P BSE IT Index was 1.23 per cent higher, the S&P BSE FMCG Index gained 0.75 per cent and the S&P BSE Realty Index advanced 0.42 per cent. The S&P BSE Bankex Index was down 0.65 per cent, the S&P BSE Healthcare Index was 0.56 per cent lower and the S&P BSE Capital Goods Index declined 0.11 per cent.
Dr Reddy’s Laboratories (1.31 per cent), HDFC BankBSE -1.07 % (1.31 per cent), CiplaBSE 0.83 % (1.18 per cent), Bajaj AutoBSE 0.54 % (0.93 per cent) and HDFC (0.83 per cent) were among the top Sensex losers.
TCS (1.24 per cent), InfosysBSE 0.83 % (1.11 per cent), ITC (0.65 per cent), ONGC (0.58 per cent) and NTPCBSE 1.31 % (0.45 per cent) were among the index gainers.
JM Financial rallied nearly 10 per cent as Vikram Pandit will acquire 50 per cent stake in JM’s non-banking financial company (NBFC) and buy 3 per cent stake in the parent company.
Market breadth was positive on the BSE with 591 gainers against 579 losers.
Foreign institutional investors bought shares worth Rs 1,070.32 crore while domestic institutional investors sold equities worth Rs 390.42 crore on Thursday as per the provisional data from the National Stock Exchange.
Asian shares were trading steady after a U.S. Federal Reserve official said the central bank may begin to taper its asset buying this summer. Japan’s Nikkei 225 index was up 0.33 per cent, the China’s Shanghai Composite edged 0.13 per cent higher and the South Korea’s Kospi index gained 0.79 per cent.