Market Pulse - 26 Jul, 2013

Markets closed ended on a negative note amid looming fear of slowdown in China coupled with caution ahead of RBI's (Reserve Bank of India's) and US Federal Reserve’s policy meeting scheduled next week. The S&P BSE Sensex closed lower by 56.57 points at 19748.19 and S&P CNX Nifty declined by 21.30 points at 5,886.20  levels.

Sectoral Indices wise, realty, bankex, auto ,power, capital goods, metals indices dropped while consumer durables and FMCG sector gained on the BSE. Metal index lead decline among sectors, booking a loss of over 3 per cent  after China ordered companies in 19 industries to cut excess production capacity, raising fear that the demand is set to slow in the biggest consumer of the metal. The broader markets ended lower with mid-caps and small-caps falling nearly 1 per cent on the BSE.

Among the index gainers included ITC gaining 2.7%, Sun Pharma rose 2.2%, Hero MotoCorp and M&M added 2% each, Wipro gained 1.7% on the BSE.

Among the index laggards were Hindalco and Sterlite Industries dropped 4.6% and 7.6% respectively, Coal India fell 4.1%, HUL declined 3.3% while Jindal Steel shed 3.4% on the BSE.

The RBI's (Reserve Bank of India’s) monetary policy on Tuesday will be a key trigger for markets in terms of any cue on liquidity measures to support rupee. Meanwhile US Federal Reserve will unveil its policy decision on Wednesday with investors awaiting clarity on tapering of the stimulus.

Tata Coffee jumped up by 5%, after company reported a jump in consolidated net profit by 43% year-on-year (yoy) at Rs 40 Crore for the quarter ended June 30 2013, amid lower raw material and finance cost.

Coal India slipped by 4%, amid concerns over the company may miss its production and off-take target for third consecutive month.

Punjab National Bank dropped by 5%, after the bank said stated that its gross NPA (Non-Performing Assests), as a percentage of advances, rose to 4.84% for the quarter ended on June 2013 as compared to 3.34% against its a year ago quarter.

Wockhardt crashed by 10%, extending its past 6 session fall, after USFDA (US Food and Drug Administration) issued a warning letter to the company for its manufacturing facility in Maharashtra.

The market breadth was negative, of 2,426 stocks traded, 1,410 stocks declined while 856 stocks advanced on the BSE.