outlook for 26may2009

After witnessing high volatility on Friday, it was another volatile day for the Indian equity markets. Quiet global cues saw a listless session on our broader market that was ranged but midcaps and smallcaps outperformed today. There was stock specific action in Bharti Airtel (news of alliance with South African telecom giant MTN saw stock down 5%) and Ranbaxy (exit of CEO and Chairman Malvindar Singh saw stock soar 20%) today. Sensex shut shop at 13913, up 26 points and Nifty at 4237 was flat from the previous close. CNX Midcap index was up 2.58% and BSE Smallcap index was up 5.01%. The market breadth was positive with advances at 1117 against declines of 158 on the NSE. Top Nifty gainers included Ranbaxy, Unitech and Sterlite Industries while losers were Bharti, Suzlon and Cairn India. Although the market remained in the positive zone most of the times, there was a continuous profit booking pressure at the higher levels.