5:32 pm Mid-caps and small-caps saved the day for Indian stock markets in the Muhurat trading this year as the key benchmark indexes closed in the red after a slew of disappointing economic indicators on Monday hit investor sentiment.
The Sensex was down 0.3 percent at 18618.87 and Nifty 0.3 percent at 5336.95. the BSE mid-cap index was up 0.7 percent and small-cap 1.2percent.
“Mid-caps will be the mantra until next Diwali,” said analyst SP Tulsian on CNBC TV18.
Among sectoral indexes, Oil & Gas was up 0.4 percent and FMCG 0.3 percent. The top losers were the IT and Bankex, down 0.4 percent and 0.7 percent, respectively.
Axis Direct expects the market to remain highly volatile next year. However, the brokerage is bullish for the next year as the prevailing liquidity issues are bottoming out.
Reliance Mutual Fund is bullish on spirits, alcohol and media sectors for the next year.
A slew of dismal economic indicators had pulled the stock market down on Monday.
The market expects the RBI to cut rates in the next quarter as the country's industrial output declined 0.4 percent in September, in a clear indication of a growth slowdown.
An easing on the rate front is expected to push the market higher next year.
Stocks in the news:
UB group shares: United Spirits declined 1.52 percent to Rs 1806.65, after media reports that the Sebi may be probing the stock’s exponential 35 percent rise on Monday. United Breweries Holdings was up 4.6 percent. Kingfiher Airlines, however, rose 4.52 percent. United Breweries, meanwhile, was up 15 percent.
Star performers of this special session are United Breweries and L&T Finance Holdings, both up over 15 15 percent.
DLF shares were down 1.65 percent after the company’s disappointing earnings.
DB Realty was up 2.6 percent.
4:41 pm Never seen such a spike like USL's, says Jhunjhunwala
Even through the Sensex continues to trade with losses, today's session is definitely special for United Breweries and L&T Finance. Both the stocks are on a roll and are trading 15 percent higher.
United Spirits, however continues to trade down after yesterday's 35 percent surge. Dhanlaxmi Bank, Anant Raj Industries, Kingfisher Airlines and DB Realty were up 3-5 percent. Housing finance company HDFC and private sector lender HDFC Bank were down 0.6 percent each.
Meanwhile, on yesterday's USL movement Rakesh Jhunjhunwala said he has never seen such stock movement in his life.
"It reminded me of Harshad Mehta's time," he told CNBC TV18.
When asked whether that is making him nervous, he said the stock may see a 10-15 percent fall in prices going forward.
Incidentally, the Economic Times today reported Sebi is looking into the 35 percent surge in United Spirits shares.
He said he had bought United Spirits and refused to discuss what price he had entered it.
He expects the market to cross new highs and see a retracement post the highs.
He said Titan and Lupin constitute large part of his portfolio
3:45 pm Muted start for Samwat 2069; USL falls 2%
Indian stock market started off the muhurat trading for Samwat 2069 with negative bias, but hopes of a bounce into the green territory floated.
It seemed as if the market is yet to recover from the disappointing set of economic indicators that came out yesterday.
The Sensex opened 0.04 percent lower at 18662 while the Nifty opened 0.12 percent lower at 5578.
However, the BSE small cap and mid-cap indexes were up around 0.8 percent.
Traditionally, it is the retail domestic investors who are active in the Muhurat trading, while institutional participation is almost nil.
United Spirits, which had spurted 35 percent on Monday after the Diegeo deal, declined 2 percent on media reports that the capital market regulator Sebi might be looking to the stock movement.
Among other UB group stocks, which were in the news for all wrong reasons all through the Samwat 2068, Kingfisher Airlines rose 1.7 percent to Rs 14.40 and United Breweries Holdings was stuck at the lower circuit at Rs 122.80.
Among BSE sectoral indexes, metals rose 0.4 percent and was the top gainer, while the IT index was down 0.2 percent to be top loser.
DLF shares are down more than 2 percent after the company reported a drop in profits for the last quarter.
Bharti shares are up almost 1 percent in trade, it is the top Sensex gainer.
Hero MotoCorp shares are marginally lower in this special trading session. Tata Power, ONGC and HUL are among Sensex gainers.
Coal India shares are up almost 1 percent in opening trade.
The year 2012, however, has not been bad for markets so far as the Sensex has gained around 20 percent.
Market expert Madu Kela of Reliance Capital, however, feels that the bull run has begun and investors should use every dip as a buying opportunity.
"There are so many bottom-up opportunities and if investors are focused on even one that exists in every sector, but obviously when the market mood is positive, it helps. So to that extent, I remain very positive on the market inspite of a 30 percent run," he told CNBC-TV18 in an interview.
Consistency, good performance, corporate governance and long-term visibility are key factors that investors should look at while picking stocks during mahurat trading.
Most brokerages recommend buying long-term wealth generator stocks during this special trade where the management can be trusted for a longer period of time too.