Market Pulse - 30 Jul, 2013

Markets closed lower, amid a weakening Rupee, after the RBI (Reserve Bank of India) asked the government to control the widening account deficit and also lowered growth forecast for the current fiscal. Meanwhile, the central bank (Reserve Bank of Inida) kept key policy rates unchanged at its policy review today. After a better start, S&P BSE Sensex tumbled by 244.94 poins, or 1.25% to end at a nearly three-week low of 19,348.34. The index has now lost over 950 points in five days. Similarly, the National Stock Exchange index CNX Nifty dipped below of crucial 5,800 level to end with a loss of 76.60 points, or 1.31%, at 5,755.05. Also, SX40 index, the flagship index of MCX-SX, closed 139.03 points down, or 1.19%, at 11,556.55.

Among Sectoral Indices, IT was the only index which closed in the positive with a 0.9% gain on the back of a weak rupee, while the ones ended in the red were, Oil & Gas, Realty, Power and PSU indices gave off 3% each along with Auto, FMCG and Metal indices losing 2% each.

Major index gainers Wipro, TCS and Infosys which advanced 0.6-2.7%. Jindal Steel, L&T, Sun Pharma and Coal India up 0.6-1.4% rounded off the gainers list

Major index losers were, Oil & Gas majors Reliance Industries, ONGC and Gail India down 3-6%, Hindalco, Tata Steel, Sterlite lost sheen, which slipped 1-4.6%, Tata Motors, Bajaj Auto, Maruti Suzuki and Hero MotoCorp gave off 0.3-4%, ITC and Hindustan Unilever too closed in the negative, down 2% each, Bharti Airtel, NTPC, BHEL and Tata Power were the other major losers 2-3.7%

Rupee again breached the Rs 60 per dollar mark in today's trades. This was the first time the rupee breached the Rs 60 per dollar mark after the RBI announced liquidity tightening measures on July 15. At closure, the rupee ended at Rs 60.47/48 compared with previous close of Rs 59.41 per dollar. Falls accelerated in the afternoon session after the RBI left interest rates unchanged and said it will roll back those liquidity tightening measures when stability returns to the currency market

Overall market breadth was very negative. 1,563 stocks declined while 705 stocks advanced on the BSE.

Posted in: Indian Market Tips