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Markets close in red despite recovery attempt

September 26th, 2011

The Indian stock markets closed the day in the red despite having made attempts to recover after the European markets opened. The SENSEX closed the day 16051.10 losing 110.96 or 0.69%. The NIFTY managed to hold above 4.8k mark and closed the day at 4835.40 down 32.35 or 0.66%. The Midcap and Small cap indices suffered a little more. The CNX Midcap closed at 7071.95 slipping 113.35 points or 1.58% while the BSE Smallcap is below the 7k mark and closed at 6923.41 losing 117.71 or 1.67%.

Earlier (Sep 26) almost all major Asian equity indices closed in the red. The US markets (Sep 23) had a marginally positive closing with Dow Jones closing in the green by 37.65 points at 10771.48. Nasdaq closed at 2483.23 up 27.56 points.

The metal stocks are the biggest losers today. Sterlite Industries is down 4.2%. Hindalco, Sesa Goa and Reliance Capital are down over 3% each. Hero Motocorp, GAIL, Axis Bank, Cairn India, Bajaj Auto and Jindal Steel are down over 2%.

On the gainers side are Jaiprakash Associates, Ranbaxy Labs and DLF (all up 2%), ICICI Bank, Ambuja Cements and Bharti Airtel (all up over 1%) amongst others.

Battery maker Eveready Industries India (BSE: 531508; NSE: EVEREADY; ISIN: INE128A01029) is in news today that it will sell the land held by it in order to pay debt. The company is planning to unload 60-70 acres in Delhi, Hyderabad & Bangalore. The script opened the day at Rs. 39, touched an intraday high of Rs. 40.60 and low of Rs. 35.30 and finally closed at Rs. 36.35.

Metal stocks had a shocker today because of more negative news for mining companies in regard to increased Governmental control, court rulings and environmental issues. Hindustan Zinc and Coal India are down over 5% each. Sterliate Industries is down 4%. Sesa Goa, Hindalco and NMDC are down over 3%. Jindal Steel and JSW are down over 2%.

Batlivala & Karani Securities in its annual report analysis report of Coal India dated September 20, 2011 has given a BUY call in the script. It gave a target price of Rs. 437 for the script and says there is a potential of 16% upside.

Entry Filed under: Equity Markets, Closing Bell, FMCG, Metal