MARKET ENDED 21.12.2009

SENSEX 16601.20 -118.63
NIFTY 4952.60 -35.10
NASDAQ 2176.05 +6.87
DJIA 10426.31 -11.11

RS/$ 46.25 -0.16

Equity indices ended in the negative terrain Monday as cautious investors resorted to profit booking ahead of Christmas holiday later this week. Capital goods, metals and auto stocks ended with losses while oil&gas and banks resisted the decline. Market opened flat in line with other Asian markets and turned rangebound due to lack of triggers. Benchmarks slipped lower in the afternoon and closed near the psychological support levels. Positive opening of the European markets failed to lift sentiments.

National Stock Exchange’s Nifty closed at 4952.60, down 35.10 points or 0.70 per cent. The index touched an intra-day low of 4943.95 and high of 4997.85.

Bombay Stock Exchange’s Sensex ended at 16601.20, down 118.63 points or 0.71 per cent. The 30-share index hit a low of 16577.78 and high of 16750.99. The near term view on the Nifty is bearish as long as it remains below 5075.

For long term investors it’s a great opportunity to enter the market at these levels from six-month perspective. Cement and banks look good at these levels The BSE Midcap Index was down 0.46 per cent and BSE Smallcap Index slipped 0.15 per cent.

Amongst the sectoral indices, BSE Capital Goods Index was down 1.63 per cent, BSE Metal Index slipped 1.59 per cent and BSE Auto Index declined 1.51 per cent. BSE Oil gas was up 0.17 per cent and BSE Bankex moved 0.10 per cent higher. Hindalco Industries (-4.59%) M&M (-3.57%), Cipla (-3.38%), IDFC (-3.33%) and HCL Tech (-3.09%) were amongst the Nifty losers.

Gainers included AXISBANK (2.07%), TCS (1.15%), Cairn India (1.06%), Reliance Indsutries (0.58%) and NTPC (0.51%). The Supreme Court on Friday reserved its verdict on the gas supply dispute between Reliance Natural Resources Ltd and Reliance Industries. The three-member bench of Chief Justice K.G. Balakrishnan, Justice B. Sudershan Reddy and Justice P. Sathasivam reserved the verdict after the conclusion of arguments that lasted 27 days spread over nine weeks. Reliance Life Sciences, a company promoted by Reliance Industries’ chairman, Mukesh Ambani, is looking at biopharmaceuticals as a huge thrust area. The company recently launched its fourth biosimilar product, TPA Reteplase. Biopharmaceuticals are medical drugs produced using biotechnology. Market breadth was positive on the BSE with 1270 advances and 1544 declines.

The European markets were in the green led by commodities and banks. US markets are also likely to open in the positive terrain. At 4:35 pm IST, Dow Jones stocks futures was up 0.18 per cent, S&P 500 moved 0.21 per cent higher and NASDAQ 100 gained 0.30 per cent