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Sun Pharma In The News

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Global cues to determine market move


The market is likely to stay volatile this week in the absence of any domestic trigger. Analysts said the monthly inflation numbers, due on Monday, may have extreme short-term impact on market sentiment. 'Therefore, all eyes will be on global cues,' they said.Global triggers such as economic data releases in the US and news relating to the revival worries and debt problems in the euro zone would be watched keenly. Rumours of a possible interest rate hike in China, the largest importer of metals, may also affect sentiments.
'After Friday's drop, we expect some volatility this week. There are no fresh cues for the market. No major result is left and, therefore, we may now see some shuffling in portfolios based on recent performance. The inflation numbers will be tracked, but it may not impact sentiment. The US markets were down on Friday. Investors may keep tracking global cues,' said Himanshu Varia, head of institutional sales at brokerage Asit C Mehta Investment Intermediaries.The BSE mid-cap and small-cap indices outperformed the market last week with 2.84 per cent and 1.14 per cent declines respectively, against nearly 5 per cent drop in the benchmark indices.On Monday, we will see the September quarter results of 180 BSE-listed companies, most of which are members of mid-cap and small-cap indices.
'A lot of activities happened on the large-cap counter last week. Results of some frontline companies such as Bharti Airtel were not in line with expectations, and therefore, we think there could be a good chance for mid-cap stocks to outperform the large-cap basket. Cues from the euro zone will be tracked keenly,' said Sudip Bandyopadhyay, CEO and managing director of Convexity Solutions.According to a median survey of 22 analysts by Bloomberg, the inflation for October would arrive at 8.50 per cent, down from 8.62 per cent in the previous month. The inflation for food articles has slipped to 12.30 per cent for the week ended October 30 against 12.85 per cent in the previous week.
The BSE Sensex plunged 848.07 points, or 4.86 per cent, last week to close at 20,156.89. Nifty plummeted 240.80 points, or 3.81 per cent, to settle at 6,312.45.Technical analysts said some downside is visible on the charts. 'The recent trends of the market indicate that we may see further lows before entering a consolidation phase. Nifty has immediate support at 6,020 and 5,937. Major resistance would be at 6,210 and 6,244 levels,' said Alex K Mathews, head of research at Geojit BNP Paribas.The put-call ratios for ABB, Sun Pharma, Bank of Baroda and Dr Reddy's on Friday for the near-month expiry stood at 17.33, 5.06, 3.46 and 3, respectively, reflecting bearish sentiments on these counters.