Punj Lloyd drops 12%

Today shares of Punj Lloyd took a severe beating in reaction to its dismal results. It drops 12% in the Sensex. While shares of Larsen & Toubro and JP Associates were trading with losses, FMCG and healthcare stocks gained maximum.

Punj Lloyd, is a leading transnational engineering construction company, based in India. It provides integrated design, procurement and project management services for energy and infrastructure sector projects.

Punj Lloyd operations are stretched over the Middle East, the Caspian, the Asia Pacific, Africa and South Asia. The company has 43 subsidiaries and has executed upwards of 200+ projects in 20+ countries. Its main offices are in Gurgaon, Haryana . Punj Lloyd stock is listed on the Bombay Stock Exchange and also on National Stock Exchange.

Bombay Stock Exchange’s Sensex was trading at 16847, higher by 37 points while National Stock Exchange’s Nifty edged up by 16 points to 5014.

Though the short term trend is slightly warning, it could be more negative if Nifty breaks below 4,950 with huge volumes. It is observed that frontline stocks like Reliance, L&T, Bhel and Tata Steel, which have maximum weightage on the Sensex are facing more selling pressure.

For today, if spot Nifty breaks below 4,950 with negative market breadth, then the probability of testing the 50-day moving average of 4,815 becomes high. On the upper side 5,040-5,070 act as a strong resistance area. This downtrend could turn positive only if Nifty maintains above 5,070 and then 5,120, till then every rise is a selling opportunity,

said Nirmal Bang Securities.
US stocks fell on Friday with the Dow slipping below the 10,000 mark, as weak results from industrial companies overshadowed robust earnings from tech heavy-weights. The Dow Jones Industrial Average was down 109.13 points, or 1.08 per cent, to end at 9,972.18. The Standard & Poor’s 500 Index was down 13.31 points, or 1.22 per cent, to finish at 1,079.60. The Nasdaq Composite Index was down 10.82 points, or 0.50 per cent, to close at 2,154.47.

As a result of strong quarterly earnings declaration Asian stocks were trading with gains . The Nikkei was up 0.97 per cent, Topix added 1.25 per cent, Hang Seng climbed 1.71 per cent and Straits Times edged up 0.07 per cent.