Indices in the Indian stock market came off the day's lows during the closing stages. But they still couldn't get into the positive territory and closed the session marginally in the red. The BSE-Sensex edged lower by around 41 points (down 0.2%) while the NSE-Nifty suffered a decline of around 15 points. BSE Mid Cap and BSE Small Cap indices fared poorly today, losing 1.4% and 1.9% respectively. Nearly two stocks gained for every three that closed in the red on the Sensex today.
Most Asian indices also closed in the red today with Europe too trading negatively currently. The rupee was placed at Rs 54.9 to the dollar at the time of writing.
Today's fall comes on the back of around 2% decline that the markets saw during the last week, thus indicating that sentiments don't seem all that great. And why would they? With the Union Budget also proving to be lacklustre, investors have got hardly anything to look forward to. Thus, they seem to be taking money off the table and would look to return when the environment becomes more favourable. Long term investors can take advantage of this by buying up good quality stocks at attractive valuations and thus earn good returns over a greater time horizon.
Colgate , the largest manufacturer of oral care products, had a strong outing on the bourses today with the stock gaining close to 4%. The buoyancy was triggered by news that the company's board would meet by the end of this month to consider payment of an interim dividend for FY13. The company recently sold and transferred its factory at Hyderabad for around Rs 170 m and the board could be looking at sharing this cash with the shareholders. Barring today's gains, the company has not had the best of outings this year as its shares have fallen faster than the FMCG index due to concerns on the volumes front. Today's gains therefore may not have strong legs to them.