Markets end in red over SC verdict on coal blocks

Mumbai: Markets ended in a negative terrain on Wednesday for the second straight session as there are no support cues from global markets. Select metal and power stocks losing as the apex court gave verdict cancelling the 214 coal blocks allocated to companies since 1993.

Sensex closed at 26,744, down 31 points after touching a high of 26,844 and low of 26,560 in trade. NSE Nifty ended at 8,002, down 15 points. Also broader indices Midcap fell 1.19 per cent, Smallcap down 1.62 per cent.

Among the sectoral indices capital goods fell 1.69 per cent, bankex down 1.08 per cent, auto index lower by 0.51 per cent. On the other hand, FMCG index gained by 1.75 per cent, healthcare index up by 0.55 per cent and O&G index rose by 0.23 per cent.
Following the SC judgement metal stocks plunged as JSPL down 10.6 per cent, Monnet Ispat down 8.16 per cent, Prakash Industries lower by 8.2 per cent, Usha Martin fell 11.83 per cent, and however Hindalco recovered intraday losses to close at 0.48 per cent.

Losers among the banking stock include: SBI (2.68%), Tata Steel (2.63%), L&T (2.09%), BHEL (2.06%) and TCS (1.69%). And the gainers include: CIL (5.02%), Hindustan Unilever (2.87%), Cipla (2.62%), ITC (1.58%) and Wipro (1.56%).

Zigzag movements
Nifty opened steady and traded with negative bias and fell sharply after the pronouncement of Supreme Court’s verdict on Coal allocation issue and recovered thereafter to close with minor loss. While Nifty can be considered bearish for short term, it continues to trade in a broad range of 7950 and 8150 and needs to come out of this range decisively. Unless Nifty closes above 8150, bearish bias would continue. Nifty spot is expected to encounter resistance at 8050, 8085 and find support at 7960, 7925 for Thursday. While global cues and funds flow are expected to guide the market. It may be expected that the market to trade in a zigzag manner with stock specific movements. -Dr B Amaranatha Sastry