Key benchmark indices witnessed a smart recovery in latenoon deals and ended in the green after the Finance Minister announced the deferment of General Anti-Avoidance Rule (GAAR) by one year. The BSE Sensex ended (provisional) at 16,935, up 104 points and the Nifty ended at 5,123, up 37 points.
(Updated 1430 hours)
The markets witnessed a smart recovery in the afternoon session after the Finance Minister announced the deferment of General Anti-Avoidance Rule (GAAR) by one year. The BSE Sensex at 16,744, down 87 points and the Nifty is at 5,060, down 27 points. Earlier in the day, the Sensex touched a low of 16,514 and the Nifty dropped below 5,000 to touch 4,990. In Asia, Japan's Nikkei average slid nearly 3% to its lowest close in three months on Monday after elections in Europe stoked worries about efforts to resolve the euro zone debt crisis and US jobs data disappointed. The index ended at 9,119, down 2.78%. The Hang Seng index shed 2.61% while the Shanghai Composite index ended unchanged at 2,452. European markets are lower today as French and German shares fall. The French CAC 40 is off 1.38% while the German DAX is down 1.41%.
The FTSE 100 in London is not trading. Back home, according to Hormuz Maloo, Technical Analyst, Geojit BNP Paribas Securities, "In the medium term there is some support for the Nifty around 4,900 levels. In the slightly longer term, however, ther market could go lower. We have already declined quite steeply, particularly in the last two days, so it may not be a good time to go short now. But I think that in some time we should be seeing lower levels." All the sectoral indices are in the red, except for BSE Capital Goods and Consumer Durables index, up 1-2%. BSE Realty, Bankex and FMCG indices are leading the losses, down 1-2% each. Hero MotoCorp has shed 3.25% at Rs 1,916 and is the top loser on the Sensex. Other prominent losers include HDFC Bank, Mahindra & Mahindra, Reliance Industries and SBI, down 2-3% each. The gainers from the pack are BHEL, Larsen & Toubro, Maruti Suzuki, Bharti Airtel and Cipla, up 1-4% each. Jaiprakash Associates has slipped almost 5% to Rs 67.6 in trades on reports that the Himachal Pradesh High Court’s green bench imposed a penalty of Rs 100 crore for violating the law and fraudulently setting up a cement plant and a thermal power plant. “A division bench of Justices Deepak Gupta and Sanjay Karol passed the landmark judgment May 4 ordering payment of Rs.100 crore as damages for having set up a cement plant by adopting fraudulent means and ordered the company to dismantle the 62 MW captive thermal plants within three months that is being constructed in the same premises” the report suggests. The overall market breadth is negative as 1,659 stocks have declined against 920 advancing ones, out of 2,684 stocks traded on the BSE.