Nifty opened above 8100 but was unable to sustain the same and lost momentum towards the end of trading hours. Sensex also closed in red and was down 0.25%.
For Nifty, 8150 remains the important immediate resistance for the index, sustaining above which buying might have been seen, however, as the market reached the closing hours it lost the resistance and touched a 1-month low.
As per the IMF (International Monetary Fund), most countries in the Middle East (which are largely responsible for the oil glut), including Saudi Arabia, will run out of cash within five years if oil stays below US$50 per barrel.
Moving on to the news from stocks in consumer durables sector. Titan Company Limited’s sales, both in the jewellery and watches segments, took an immediate hit in the days following the government’s demonetisation announcement on November 8.
The sales were impacted as much as 25% in the week following the decision of scrapping out higher denomination notes. For the entire month, the drop was around 5%. The impact has been felt more in smaller towns and on the network of around 800 dealers the company has, across the country. This was on account of cash being the preferred mode of payment.
Conversely, plastic card usage by customers had picked up at the retail stores. About 50% of the sales prior to demonetisation, card usage is over 70% now, the company stated.
Not surprisingly, sectors whose revenues have been hit the hardest by demonetisation have seen the biggest declines in their stock prices. The worst affected businesses are real estate, consumer durables and auto sectors.
However, the company expects to sustain the growth momentum in spite of some temporary setback due to demonetisation. Overall, Titan expects the growth in turnover to be in single digit this fiscal.
Nifty was down 21 points and closed at 8,061, while BSE Sensex ended with a loss of 66 points at 26242.
Nifty sectoral indices ended on a mixed note. Nifty Realty gained over 1% while Nifty FMCG dipped over 1%. While, Nifty Metal index ended on a positive note up 0.5%. The Nifty Metal index rose for the first time in four sessions led by gains in shares of Welspun Corp, Hindalco Industries and Hindustan Zinc. This positive trend was supported by a rise in rupee against the dollar.
The India VIX (Volatility) index was up 0.84% at 14.66. The BSE Midcap closed at 11984 and Smallcap indices closed at 11950. BSE Midcap closed marginally low while BSE Smallcap closed marginally high.
Gold was trading at Rs 27,097 per 10 gms and silver was trading at Rs 39,500 per kg.
The rupee was trading at 67.87 per dollar.
Out of 1886 stocks traded on the NSE, 886 declined and 697 advanced today.
Top 5 Nifty Gainers: Hind. Unilever (0.58%), Tata Motors (0.46%), Sun Pharma (0.39%), GAIL (0.07%) and Wipro (0.04%).
Top 5 Nifty Losers: Tata Steel (-2.27%), Adani Ports & Sez (-2.01%), Bharti Airtel (-1.59%), HDFC (-1.58%) and Axis Bank (-1.57%)
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