The rains having receded a bit, the bears decided to come out in the open dragging the sensex down by 126.86 points and the Nifty by 36.75 points. The sensex rested at 17749.69 and the Nifty closed the day at 5316.55.
The market breadth as reflected by Nifty advances and declines was pretty negative and stood at 11:39 as compared to yesterday’s bullish 47:3 and going forward let’s hope a reversal in the market breadth occurs tomorrow.
The top three losers were: ACC, Sterlite and Jaiprakash Associates which were down by 2.4 per cent, 2.3 per cent and 2.28 per cent respectively.
The top three gainers were BPCL, Ranbaxy and Hindustan Lever which fell by 4.48 per cent,2.56 per cent and 1.16 per cent respectively.
In corporate affairs, there is good news for shareholders of Larsen & Toubro – GVK Power said its unit awarded a Rs.32 bn construction contract for its 800 MW gas based power project to a consortium of South Korea Hyundai Engg and L&T and hope it’s a 50:50 consortium so that we can roughly figure out the impact on the bottom line of L&T which is one company that is going to reap rich dividends from the power plays in India especially the massive nuclear power programs of our country.
Well, as I sign off for the day, I was just wondering how many of you would have thought of buying Sterlite Industries Limited which closed the day 178.70,down by Rs.2.80 – let’s not forget that this company generates revenues in excess of Rs.13000 crores on an Equity base is Rs. 168.08 crores ! As prices of scrips go downhill because of bonus and splits, greater are the chances of the scrip going uphill as the shares become affordable to the “junta” at large. Moreover, swing trading in reasonably larger volumes in such scrips on sharp corrections can magnify returns. Happy Investing.
Kishor S. Khot, [Kishor@hbjcapital.com], Equity Strategist, HBJ Capital Services Pvt Ltd
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