The Hindu Business Line : Markets remain choppy ahead of US Fed meet

The markets opened on a weak note, taking cue from the subdued trend in the Asian markets owing to the weaker-than-expected US jobs report, thus raising worries about a slowdown in the world's largest economy. The broader indices did have a recovery stint in the pre-noon session but selling pressure and profit booking weighed more at higher levels and the Sensex gave in, to shed 52 points and closed at 10,814. The Nifty also witnessed a yo-yoing trade and closed at 3152 with a loss of 25 points.

The day saw choppy trade in the market with only a select few counters gaining. The advance decline ratio moved in favour of the bears with 1,150 shares advancing as against a decline of 1,236 shares, with 91 shares remaining unchanged in the BSE. The total turnover of the BSE was Rs 1,833 crore compared with Friday's turnover of Rs 2,550 crore.

The market sentiment remained cautious ahead of the US Federal Reserve meeting scheduled for August 8. According to a provisional data, FIIs were net sellers to the tune of Rs 47 crore for the day.

Buzzing stocks

BHEL rose 1.65 per cent to Rs 2,188 ahead of its board meeting to consider stock split and a bonus issue.

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In the banking sector, ICICI Bank posted a largest gain of 4.31 per cent to close at Rs 570.60.

Gujarat NRE Coke posted a rise of 6.44 per cent to close at Rs 62.80.

Among other counters, Unity Infraprojects surged 13 per cent to Rs 393 and Rain Calcining surged 7.22 per cent. Andhra Cement, Carol Info and Ceat were some of the shares that hit their upper circuit.

Sector focus

The BSE Bankex closed with a gain of 1.77 per cent for the day. Expectations that the US Federal Reserve may pause its rate hiking campaign lifted most of the stocks in the index.

Autos were in the reverse gear. Firm oil prices weighed on the auto shares. Hero Honda, MUL and Bajaj Auto were some of the stocks that declined. Ashok Leyland also declined owing to its announcement that its vehicle sales in July rose 22 per cent as against a 30 per cent sales rise in India.

Fertilisers stocks registered gains across the sector in view of the proposal for a new urea policy to be tabled soon in Parliament.

IT shares declined on profit taking. The sector witnessed fresh selling.

Stock-specific action

Era Constructions rose 2.63 per cent to Rs 228.10 after the company said it won a civil works order worth Rs 55 crore from Pratappur Sugar and Industries.

Software and turnkey services firm ICSA (India) gained 1.99 per cent to Rs 670 after the firm said it had won an order worth Rs 17.21 crore in Madhya Pradesh.

Balaji Amines lost 9 per cent owing to the US sanctions on it for allegedly passing on technology to Iran for developing weapons of mass destruction.

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