Daily stock market review and outlook

Global sell off sent Indian stock indices to a tail spin today. Concern over Italy's inconclusive election result raised renewed political instability to the euro zone and sparked of a sell off across world equity markets on Tuesday, hitting Indian market as well. Lower yield of German bond yields sent signals of a resurgence of the euro zone debt crisis also had its negative impact on the world market. Adding to the pain, the Railway Budget 2013-14 presented by the Railway Minister, Pawan Kumar Bansal was unable to deliver any positive surprises and as such couldn’t help the dilapidated sentiment of the market.

The 30-share BSE Sensex closed lower by 316.55 points to end the day’s trading at 19015.14. The Sensex hit to a day's high of 19293.49 and a fell to a day's low of 18976.94. It opened at 19290.66. The broader indices, NSE Nifty lost as much as 93.40 points, to end the day’s trading at 5761.35. The 50-share Nifty touched a day's high of 5838.85 and a day's low of 5748.60. It opened at 5838.30.

Of the 50-share Nifty pack only 8 stocks ended with gains while the rest 42 stocks closed with loses. The top 5 gainers among NSE stocks are: Bharti Airtel surging by 1.56 %, followed by TCS (1.54 %), Infosys (1.44 %), Grasim (0.84 %) and NTPC (0.77 %). The top 5 losers among NSE socks are: Hindalco (4.59 %), Bajaj Auto (4.38 %), Ranbaxy (3.95 %), HDFC (3.80 %) and ONGC (3.63 %).

Of the 30 shares of BSE index components, only 5 stocks ended in positive terrain, while the rest 25 stocks closed in negative zone. The top and only 5 gainer in BSE Sensex stocks are TCS surging by 1.56 %, followed by Infosys (1.47 %), Bharti Airtel (1.38 %) NTPC (0.73 %) and HUL (0.11 %). The top 5 losers of the Sensex pack were: Hindalco (4.49 %), Bajaj Auto (4.20 %), HDFC (3.74 %), ONGC (3.74 %) and RIL (3.51 %).

Both BSE Mid Cap and Small Cap index closed with huge losses. Both BSE Midcap index and BSE Smallcap index fell by over 2 % in trade today. All the 13 sectoral indices in BSE, closed with heavy losses. Top 3 loosing sectors were: BSE Oil&Gas down by 3.07%, BSE Auto down by 2.76% and BSE CG down by 2.44%. Remaining sectors ended lower in the range of 0.89% to 2.30%.

The advance decline ratio was heavily in favor of the bears. Of the 2961 stocks traded on the BSE, 774 (26.14 %) rose, 2072 (69.98 %) fell and 115 (03.88 %) stocks remained unchanged.

Market outlook for tomorrow

All the Asian markets ended with heavy losses. Japan’s Nikkei was down by 2.26 %, Jakarta Composite was down by 0.70 %, Hang Seng index in Hong Kong lost 1.32 %, China’s Shanghai Composite ended lower by 1.40 %, KOSPI Index was down by 0.47 %, markets in Taiwan ended lower by 0.84 % and Straits Times lost 1.05 %.

European markets are also trading with heavy losses after inconclusive outcome of Italy’s election result. FTSE index in UK is at present trading down by 1.42 %, the CAC index in France is down by 2.71 %, DAX index in Germany is down by 2.31 % and AEX Amsterdam Index is lower by 1.52 %. US stock markets are also trading mixed at this moment and is trying to come out of the ghost of negative European market. Dow Jones Industrial Average is trading higher by 0.40 %, while Nasdaq Composite Index is down by 0.13 %.

Thus the broad outlook for tomorrow’s market continue to be bearish. However a positive closing of markets in the U.S may boost the market sentiment but don’t expect much upswing before the union budget on Thursday, which also happens to be the expiry of derivatives. But keeping in mind that the short selling position in the market is high, some covering may happen in specific stocks.