Top Nifty Gainers/Losers Today | Market Closing Report

Market Closing Report - 27th January 2012
The markets closed with significant gains today with Nifty closing above its psychologically important level of 5200. Oil & gas, consumer durables, tech and metal were the lead gainers while realty remained the biggest laggard in today's session. The Sensex closed at 17234, up 157 points from its previous close, and the Nifty shut shop at 5205, up 46 points. The CNX Midcap index closed with 0.5% gain while the BSE Smallcap index was up 1.3% in today's trade. The market breadth was positive with advances at 930 against declines of 461 on the NSE. The top Nifty gainers were Sesa Goa, SAIL, Sterlite Industries and Grasim while the biggest losers included Ranbaxy, PNB, DLF and JP Associates.

'Reforms' may hold key to market move

Last week, Dalal Street ended in the green as global equity markets responded positively to the synchronised efforts being taken to tackle the European crisis. The Chinese central bank cut the reserve requirement by 50 basis points and further boosted the positive sentiments in the global economy. The market benchmark index, S&P CNX Nifty, moved up 7.22% last week to close at 5050, which, according to most technical analysts, is a crucial level. Industrial metals moved up in the commodity markets worldwide and Indian metal stocks reflected the movement. The BSE Metal index emerged as the best-performing sectoral index with weekly gains of 10.52%. The economy grew 6.9% in Q2 ended September 2011, in line with expectations, after expanding by 7.7% in the first quarter. The decision to allow 51% FDI in multi-brand retail led to a standoff in Parliament between the government and the opposition. The government is seen pushing the reforms agenda, but the opposition parties did not let any debate take place in Parliament. Analysts are of the view that mere announcements will be of no use unless the bill is passed in both the houses of Parliament. The likelihood of the bills supporting reforms getting passed in the Winter session is very low. Going forward, market participants will remain watchful of the reform process and the RBI's stance on interest rates. Auto stocks are likely to be keenly watched as some analysts expect a cut in the key rates in near future. Long-term investors are expected to adopt a wait-and-watch policy, seeking signals for further action from the advance tax payments of corporate entities. 

Markets still uncertain........

There is no downtrend without a pullback and that's what happened today. The market recovered some ground after seven days of despair. The pullback rally lost some steam mid-session, but frontline indices managed to close with handy gains. The Nifty gained just over 30 points to close just above the 4,800 mark, while the Sensex ended the session at 16,065, up 120 points.
Truth be told, the market had gotten very oversold — both equities and the foreign exchange. Therefore, a pullback was always going to be very technical in nature. Also, the market is very close to expiry, so maybe some of the shorts might have closed out as well and booked profits.
The same set of stocks, which were beaten down most, gained today. Therefore, there was no great leadership in this “upmove” at all. So, everything that the screen is showing is suggestive of a technical respite to the one-way fall. Well, it might become more if global markets generate some positive newsflow.
Unless there is some massive global event, can’t see how markets can turn the corner quite so easily.