Market Movers: Grasim paints green on charts as RIL tumbles post earnings

MUMBAI: Benchmark indices ping-ponged between gains and losses through most parts of the session today before buckling under the selling pressure to end near the lowest point of the day.

Heavy losses in shares of index heavyweight Reliance Industries, some banks and information technology (IT) companies were the main reasons behind the benchmark indices’ fall.

The cues from global markets were also mixed as Asian equities showed strength, while European equities remained largely flat in the first few hours of trade.

The Nifty 50 index ended 0.9 per cent, or 133 points, lower at 14,238.90, while the Sensex closed at 48,347.59, down 1.1 per cent or 530.95 points.

Here are the major movers in today’s trade:

RIL tanks
One of the biggest contributors to the market’s decline today were shares of RIL, which fell over 5 per cent as analysts raised concerns over weakness in operating performance and lack of disclosures in the company’s earnings statement on Friday.

NBFCs rally on RBI’s proposed norms
Shares of certain non-bank lenders rose sharply as investors were relieved that the central bank did not propose measures such as cash reserve ratio and statutory liquidity ratio which could have limited the growth prospects of these companies.

Kotak Mahindra Bank falls on profit booking
Shares of one of the largest listed private banks fell sharply on profit booking despite the bank reporting steady asset quality and impressive sequential loan growth for the quarter ended December.

Grasim soars on paints foray
Investors gave a thumbs up to Grasim’s plan to pour Rs 5,000 crore for a foray into the paint industry as the business is seen more lucrative and a better utilisation of the company’s capital than investing it in the weak telecom business of Vodafone Idea.

Paint stocks fall on Grasim news
Shares of Asian Paints and other smaller paint companies fell sharply in reaction to the news that Grasim will foray into the industry as it will increase the competitive intensity in the sector and make investors reconsider the lofty valuations of some stocks.

Who gave sell signal?
As many as 55 stocks listed on the NSE gave a “sell” signal based on MACD indicators. The list included Tata Motors, Vodafone Idea, DLF, and Lupin. At the same time about 16 stocks gave “buy” signal with prominent ones being Grasim, Century Plyboards, and Godrej Industries.

What’s ahead for the market?
Traders sold both the out-of-money Call and Put options of Nifty50, suggesting that they remain indecisive over the market’s direction in the coming sessions.

On the technical front, Ajit Mishra, vice president of research at Religare Broking, said a decisive close below 14,200 by the Nifty50 would derail the present momentum so participants should align their positions accordingly. Indian stock market will remain shut on Tuesday on account of Republic Day.

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