Nifty holds 4400; pharma stocks buck trend August 12, 2009
Posted by dhirendra1972 in Biggest Gainer, Negative Terrain, New Uncertainties, Worst Hit.Tags: Global Market, Healthcare Index, Hospitality, Industrial Output, Investor, Metal, Migraine, Monsoon, Overseas Markets, Pharma Stocks, Profit Booking, Realty
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Good morning friends. Stocks languished in the negative terrain as investor sentiment remained weak as overseas markets and monsoon worries. All sectoral indices, barring the healthcare index, faced profit booking. Realty and metals were the worst hit.
“Apart from drought related concerns the market is also facing additional pressure due to increased threat of swine flu spread which could affect sectors like hospitality, travel and retail. FIIs are booking profits since last one week and looking to new uncertainties – they may continue to book profits. Now, global markets are also looking weak and any sustained weakness in global markets can trigger further fall in our markets,” said Anand Rathi Securities.
Investors would also watch industrial output data due later in the day for cues on the economy’s strength. Industrial output probably rose in June for the third month in a row, helped by a rebound in sectors linked to the government’s stimulus spending, a Reuters poll showed on Tuesday. The median forecast was for an annual rise of 3.3 percent in production, up from a provisional 2.7 per cent rise in May.
At 11:25 am, National Stock Exchange’s Nifty was trading at 4405.55, down 1.47 per cent or 65.80 points from the previous close. The index oscillated in a range of 4473.80 and 4391.70 in trade so far.
Bombay Stock Exchange’s Sensex shed 1.55 per cent or 233.22 points to 14,841.37. The index touched a low of 14,800.02 after opening at 14,953.44.
Action was muted in the broader market as well. The BSE Midcap Index fell 1.16 per cent and the BSE Smallcap Index lost 1.03 per cent.
Among frontline stocks, Tata Steel (5.26%), Tata Consultancy Services (-3.92%), Mahindra & Mahindra (-3.25%), ONGC (-2.83%) and Sterlite Industries (-2.82%) were badly hit.
Sun Pharmaceutical bucked the trend after it got the US Food and Drug Administration’s approval to launch its generic version of GlaxoSmithKline’s Imitrex tablets to treat migraine. The stock was one of the biggest gainer in the 30-share index notching gains upto 2.26 per cent to Rs 1205.70. The other gainers were Bharti Airtel (3.19%), ITC (0.55%), Hero Honda (0.21%) and Grasim Industries (0.05%).
Market breadth on BSE showed 1432 declines outnumbering 665 advances. – The Economic Times
