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Nifty turns volatile; SAIL, BPCL, Cipla down

16 Dec 09 07:00 PM
MUMBAI: Indian markets were witnessing choppy session due to lack of direction from global markets. Rate sensitives like realty and banks were the worst hit while pharma stocks showed some resistance.

“We are now trading at the lower end of the 5000-5200 range. A sustained trading below 5000 is likely to result in unwinding of positions taking the markets further down. The final hope for the bulls would be the gap between 4960 and 4990 created by Nifty future on 30th November. Orchid chemical is likely to surge on the back of news of Hospira acquiring company's Generic injectable finished-dosage form business for $400 million,” said Anagram Stock Broking note.

At 11:09 am, National Stock Exchange’s Nifty was at 5027.65, down 5.4 points or 0.11 per cent. The index took support at 5001.80 and hit a high of 5035 in trade so far.

Bombay Stock Exchange’s Sensex was at 16804.60, down 72.56 points or 0.43 per cent. The 30-share index hit a low of 16777.94 and high of 16886.94.

“Technically, recent low of 4538 will remain a key support in near term. On correction both short term averages will help markets for sustainability around lower levels like we have seen earlier. On higher side 5180-5200 will remain crucial hurdle and is likely to attract some profit booking. In any case breach of 5200 by Nifty will need a fresh review. Sustainability above 5000 mark will remain a crucial factor going ahead.

Once again like previous trading session, key support for the day remains at 4990 levels with next support still lower at 4950. Hurdle is seen around 5080-5090 on higher side. Breach above or below above mentioned range may provide fresh trading opportunity,” said Reliance Money report.

BSE Midcap Index was down 0.40 per cent and BSE Smallcap Index slipped 0.31 per cent.

Amongst the sectoral indices, BSE Realty Index was down 1.24 per cent, BSE Bankex slipped 0.72 per cent and BSE Metal Index declined 0.59 per cent. BSE Healthcare Index was up 0.13 per cent.

SAIL (-1.99%), BPCL (-1.79%), Jaiprakash Associates (-1.51%), AXIS Bank (-1.50%) and Cipla (-1.28%) were amongst the top Nifty losers.

IDEA (3.45%), Siemens (2.21%), Bharti Airtel (1.66%), IDFC (1.35%) and GAIL (1.24%) were amongst the top gainers.

German drugmaker Boehringer Ingelheim (BI) has started discussions with Cipla for a drug supply agreement that could see the Indian company supply generic drugs to the $17-billion German company for two of its drugs, including one of its best sellers. The Indian company is also discussing similar deals with other global pharma majors.

Idea Cellular, the fourth-largest telecom operator in the country, has recorded its best performance in terms of monthly additions with 2.5 million new users, amidst the ongoing price-war. Bharti Airtel, the largest service provider in the country, has regained its leading position in terms of monthly addition with 2.8 million new users in November, according to figures released by the Cellular Operator’s Association of India.

Shares of Orchid Chemicals & Pharmaceuticals plunged on reports that the company agreed to sell its injectables business to the US-based Hospira for around $400 million (Rs 1,850 crore), a valuation that represents a 20% premium to the Chennai-based firm’s market value and greatly boosts its financial flexibility. The scrip was down 10.29 per cent on the BSE.

Market breadth was negative on the Nifty with 27 declines and 23 advances.

In Asia, Hang Seng was down 0.87 per cent and Seoul Composite declined 0.22 per cent. Nikkei 225 was up 0.57 per cent, Shanghai Composite moved 0.08 per cent up and Strait Times moved 0.19 per cent higher.

The US markets declined on rising inflation concerns. The Dow Jones industrial average slipped or 0.47 per cent, the Standard & Poor's 500 0.55 per cent and the Nasdaq Composite Index fell 0.50 per cent.