Nifty six week hit closing low, giving buying opportunities

With the Nifty in a consolidation phase, the market is giving opportunities at every stage. There is no fundamental weakness, the macroeconomic situation is improving and corporate earnings seem fine, on the back of which he believes not just the midcaps, there is opportunity now even in large cap stocks. The government is giving a lot of thrust to the power sector and in PSU banks, the government is clear that it wants to bring down its stake. Large cap PSU banks may be a good buying opportunity. It may be a good idea to invest in some of the select tyre companies, but only on dips. Other than that, cement companies, some of the NBFC companies and holding companies of insurance business. Going ahead, he feels consumers will ultimately start spending more, directly benefiting the consumer discretionary companies.

Sensex, Nifty hit six-week closing low

Shares of oil exploration and production companies led decline as key benchmark indices edged lower in choppy trade. After staging a strong intraday recovery in mid-afternoon trade, the benchmark indices weakened once again during the last one hour of the trading session. The barometer index, the S&P BSE Sensex, and the 50-unit CNX Nifty, both, hit six-week closing low. The Sensex lost 229.09 points or 0.82% to settle at 27,602.01. The market breadth indicating the overall health of the market was weak.

Shares of oil exploration and production companies declined after overnight sharp decline in global crude oil prices. Sugar stocks advanced after the Cabinet Committee on Economic Affairs approved a mechanism for procurement of ethanol by PSU OMCs to carry out the ethanol blended petrol program. PSU bank stocks were mixed after the Union Cabinet yesterday, 10 December 2014, gave its approval for allowing PSU banks to raise capital to meet their additional capital requirements under BASEL-III by diluting government holding upto 52% in a phased manner. Insurance stocks declined.

FMCG stocks also edged lower. Shares of export oriented pharma firms advanced on weak rupee. Cement shares declined. Telecom stocks also edged lower. Foreign portfolio investors sold shares worth a net Rs 45.23 crore into the secondary equity market yesterday, 10 December 2014. Sensex, Nifty marginally up; Bharti gains 2%, GAIL falls 4%.

Bharti Airtel, Sun Pharma, Maruti, Tata Power and Infosys are top gainers while GAIL, ONGC, M&M, Sesa Sterlite and BHEL are laggards in the Sensex.