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Below is the views on the daily markets quote by Mr. Deepak Jasani, Head of Retail Research, HDFC securities.
Markets ended with hefty losses on Thursday on the back of derivative expiry of the April series. The Nifty had opened on a positive note in the morning and surged higher during the day to make a near term high of 11796 before a selloff was witnessed in the afternoon session.
The weakness came on the back of negative global cues. Chinese stock market dropped to its lowest in more than three weeks disappointed by the central bank's attempts to lower market expectations for more policy easing and concerns over economic recovery prospects. The Nifty index ended 84.35 points or 0.72% lower at 11641.8.
Broad market indices like the BSE Mid Cap and Small Cap indices fell less, thereby outperforming the Sensex/Nifty. Market breadth was negative on the BSE/NSE. Sectorally, the top gainers were the BSE Oil and Gas and Realty indices. The top losers were the BSE Telecom, Metal, Bankex and Auto indices. Stockwise, Ultra Tech, Grasim, CG Power and Hexaware have moved higher while Infratel, M&M Financial, Adani Power and Godrej CP have moved lower.
Major Asian markets have closed on a negative note, barring the Nikkei and Taiwan indices. European indices like FTSE 100, CAC and DAX are trading in the red. Technically, with the Nifty correcting sharply, traders will need to watch if the Nifty can hold above the crucial supports of 11550 for the bulls to regain control.
Brent oil prices moving above $75 a barrel impacted sentiments locally. Bank stocks came under pressure on derivative expiry day as lesser long positions seemed to be rolled over. Bharti Infratel fell after a surprise fall in PAT in March quarter even as tenancy outlook after March quarter earnings remains muted.
Ultratech Cement (and its holding company Grasim) rose after Ultratech posted very good numbers for the March quarter. Sugar stocks seem to have gotten back in favour led by Balrampur, Dhampur and Dalmia. Speculative volumes in beaten down stocks like PC Jewellers, Infibeam and Vakrangee have been rising over the past few sessions suggesting return of trader interest.
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