After Market: Sugar pack cracks; top overbought and oversold stocks
The market remained subdued for the most part of the day, even though global cues were mostly positive.
The market remained subdued for the most part of the day, even though global cues were mostly positive and the rupee, too, recovered slightly.
Profit booking in select FMCG, IT, auto and financial heavyweights weighed on the equity benchmarks.
The 30-share Sensex settled at 36,542 with a loss of 110 points, or 0.30 per cent, as only 12 index stocks closed the day with gains.
NSE’s Nifty finished 14 points, or 0.12 per cent, down at 11,053, with 25 stocks ending in the green and an equal number in the red.
BSE Midcap and Smallcap indices outperformed the Sensex, closing with a gain of 0.42 per cent and 0.12 per cent, respectively.
Let's walk you through the highlights of Wednesday's session:
Sugar stocks cracked
Most sugar stocks suffered losses as the Cabinet Committee on Economic Affairs (CCEA) approved the food ministry’s proposal that seeks to address surplus domestic sugar stock and help mills clear huge cane arrears of around Rs 13,000 crore. The government approved a Rs 4,500 crore package for the sugar industry that includes over two-fold jump in production assistance to cane growers and transport subsidy to the mills for exports up to 5 million tonnes in the marketing year 2018-19, PTI reported. This is the second financial package to bail out the sugar industry after a Rs 8,500 crore package announced in June.
KCP Sugar & Industries (down 9.77 per cent), Dhampur Sugar Mills (down 9.41 per cent), Bajaj Hindusthan Sugar (down 8.78 per cent), Triveni Engineering & Industries (down 7.14 per cent), Ponni Sugars (Erode) (down 6.48 per cent), Rajshree Sugars & Chemicals (down 6.41 per cent) and Avadh Sugar & Energy (down 6.20 per cent) were the top sectoral losers on BSE.
YES Bank snaps losing streak
After four consecutive sessions of drubbings, YES Bank shares closed the session at Rs 223.65 with a gain of 1.73 per cent on BSE. Global brokerages, including Macquarie and JPMorgan, stuck to their bullish stance on the stock, projecting up to 80 per cent upside. The bank’s board on Tuesday decided to seek at least a three-month extension for MD and CEO Rana Kapoor from RBI beyond January 31, 2019.
Over 60 stocks oversold on NSE
Momentum oscillator Relative Strength Index (RSI) showed 61 stocks, including DHFL, YES Bank, KPIT Tech, Jet Airways, JM Financial, Indian Bank and Escorts, have since moved into the oversold territory on NSE.
Videocon extends gains
Extending the gains into the second consecutive session, shares of Videocon settled 4.74 per cent higher at Rs 3.76 on BSE after reports that the company's auction made headway. ET reported that Chinese home appliances maker Haier and global investment firms Blackstone and Goldman Sachs are among its suitors, weighing offers to buy the company’s consumer electronics business valued at close to $2 billion.
IL&FS shares remain mixed
Shares of IL&FS Group companies settled mixed, a day after logging healthy gains on LIC's comment that it would not allow the debt-ridden firm to collapse and explore options to revive it. IL&FS Investment Managers (up 9.92 per cent) jumped almost 10 per cent, but IL&FS Engineering and Construction Company (down 3.11 per cent) and IL&FS Transportation Networks (down 1.47 per cent) failed to perform.
32 stocks have bearish signals
Momentum indicator MACD, or moving average convergence divergence, on Wednesday showed bearish crossovers on 32 counters on NSE. Among the stocks that saw this bearish crossovers were Bharti Infratel, Dena Bank, HCL Technologies, TVS Motor and Mawana Sugars. On the flip side, Hindalco, IndiGo, Ramco Cements, Cera Sanitaryware and Rane Engine Valve featured among 11 stocks that saw bullish crossovers on NSE.
Sensex movers & shakers
Tata Motors (down 3.15 per cent), Wipro (down 2.91 per cent), ITC (down 2.67 per cent), State Bank of India (down 2.31 per cent) and Maruti Suzuki (down 1.99 per cent) were the top five index losers in the Sensex pack, while Vedanta (up 4.70 per cent), YES Bank (up 1.73 per cent), Reliance Industries (up 1.72 per cent), Tata Steel (up 1.52 per cent) and Larsen & Toubro (up 1.05 per cent) emerged top five gainers.
200 stocks touch 52-week lows
As many as 205 stocks, including Tata Motors, Dish TV India, Fiem Industries, Motherson Sumi System, Finolex Cables, Gujarat Gas, HSIL, Jet Airways (India), Kalpataru Power Transmission, Capital Trust and Kothari Products, hit 52-week lows on NSE. Meanwhile, 11 stocks, including Divi's Laboratories, Biocon, Monnet Ispat & Energy, Electrosteel Steels and Gangotri Textiles, could manage to hit 52-week highs on the bourse.