Thursday April 10, 03:30 PM
Tail fails to wag... |
|
By Equitymaster.com
The broader markets went through a bout of sell-off towards the fag end to surprisingly end in the red after a choppy day's trade. While select auto stocks aided the indices today, heavyweights from the banking and telecom sectors bore the brunt of the selling activity. As regards global markets, while the Asian indices closed a mixed bag, the European indices are witnessing a negative trend currently.
The BSE Sensex closed at 15,695 (down 95 points) while the NSE Nifty closed at 4,733 (down 14 points). The rupee was trading at 39.98 to the dollar.
The markets witnessed a lower order collapse. Earlier in the day, the indices remained choppy but gathered some momentum towards the end. However, the upsurge was short-lived and the indices darted southwards sharply to close the day in the red. While the BSE midcap index closed unchanged, the BSE smallcap index closed 1% higher. The overall market breadth was negative with losers outnumbering gainers by a ratio of 3:2 on the broader BSE. Reliance (RELI.BO, news) Power (up 7%) and TCS (up 2%) led the pack of gainers, while ICICI Bank (ICBK.BO, news) and Ranbaxy (down 4% each) led the pack of losers.
As per a leading business daily, the price of newsprint, both imported and domestic, is set to touch US$ 1,000 per tonne. With imported newsprint now costing over US $900 a tonne, Indian newsprint manufacturers have also raised the prices, thus affecting the cost structure of newspapers. Newsprint prices typically account for 50 to 60 % of their production costs. It may be noted that the international prices are high due to closure of capacities in China and North America, which account for almost 40 % of global production. This is a negative development for the newspaper industry, more so for the small and medium newspaper publishers, who do not have the pricing power of the larger players. While HT Media closed 1% lower, Deccan Chronicle ended 2% higher.
As per a leading business daily, RIL will receive 150,000 barrels of oil per day starting in June under a long-term supply deal from the Venezuelan state oil company PDVSA. The deal will help the company meet its refining needs as it expands to reach a capacity of almost 600,000 barrels per day after the commissioning of the second refinery at Jamnagar. The recent developments must be seen in light of the Venezuelan government's efforts to diversify the customer base for its oil exports and reduce its dependence on U.S. energy markets. RIL closed higher by 2%, while ONGC ended 1% lower.
|
