Tag: BHEL

Jubilation continued on Dalal Street with both the frontline indices snapping the session above their psychological 24,300 (Sensex) and 7,250 (Nifty) levels, ending at fresh all time closing high levels after BJP won clear majority in the country’s general elections. Boisterous benchmarks once again showcased an enthusiastic performance with investors getting support from report that FII’s made substantial purchases in Indian stocks on May 16, 2014. Though, markets after a gap-up opening pared all of their gains and entered into negative terrain for a brief period as profit booking was witnessed at higher levels. But, volatility ruled the roost as the key benchmark indices regained positive zone and thereafter not even an iota of profit booking was witnessed in the session, as the benchmarks managed to fervently gain from strength to strength as investors continued hunt for fundamentally strong but oversold stocks.

Overall, sentiment remained upbeat, while some support also came after Industry body CII expressed hopes that the economic reforms agenda can be taken forward with a stable political dispensation and with a prudent macroeconomic management, the economy could recover to 6.5 per cent GDP growth rate in 2014-15 as against an estimated 4.9 per cent in 2013-14. On the currency front, the rupee was also mirroring the feel-good sentiment prevalent on Dalal Street. The currency touched a fresh 11-month high today; it was trading at 58.58 a dollar – the highest level since June 18, 2013 – up 20 paise compared to Friday’s closing value of 58.79 a dollar.

However, global cues remained sluggish with European markets trading lower in early deals, as investors were cautious amid sustained expectations for further easing measures by the European Central Bank (ECB). Asian markets shut shop mostly in the red, undermined by the concerns about slower growth in China, which led to mainland Chinese shares falling more than 1 percent to two-month lows on news that Beijing is tightening its grip on interbank lending to defuse risks in the shadow banking system.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Stocks related to railway such as Texmaco Rail and Engineering, Kalindee Rail Nirman, Titagarh Wagons, Kernex Microsystems and Hind Rectifiers remained on buyers’ radar on hopes that Bhartiya Janta Party’s Prime Minister designate, Narendra Modi will stand by his promise to improve the Indian Railways. Additionally, infra, realty and public sector undertakings (PSUs) counters too extended their past week’s rally. On the flip side, defensive sectors such as fast moving consumer goods (FMCG), information technology (IT) and pharmaceuticals lost sheen as investors shift their focus to infrastructure-related sectors.

The NSE’s 50-share broadly followed index Nifty surged by over sixty points to end comfortably above its psychological 7,250 support level, while Bombay Stock Exchange’s Sensitive Index — Sensex surged over two hundred and forty points to surpass the psychological 24,350 mark. The broader markets outperformed benchmarks and traded jubilantly throughout the session, ending the trade by over four percentage points. The market breadth remained in favour of advances, as there were 2154 shares on the gaining side against 698 shares on the losing side while 96 shares remain unchanged.

Finally, the BSE Sensex surged by 241.31 points or 1.00%, to 24363.05, while the CNX Nifty gained 60.55 points or 0.84%, to 7,263.55.

The BSE Sensex touched a high and a low of 24448.47 and 24107.99, respectively. The BSE Mid cap index was up by 4.19%, while the Small cap index rose by 5.82%.

The top gainers on the Sensex were BHEL up by 16.94%, Coal India up by 12.73%, NTPC up by 10.35%, ONGC up by 8.17% and Tata Power up by 7.95%. While TCS down by 5.69 %, ITC down by 5.45%, Dr Reddys Lab down by 5.22%, Infosys down by 4.88% and Sun Pharma down by 4.83% were the top losers in the index.

On the BSE Sectoral front, Power up by 10.15%, PSU up by 9.00%, Capital Goods up by 8.34%, Realty up by 6.91% and Metal up by 6.81% were the top gainers, while IT down by 4.95%, FMCG down by 4.00%, Healthcare down by 3.66% and Teck down by 3.46% were the only losers in the space.

Meanwhile, in a positive development for the economy, Global Rating agency, Moody’s Investors Service underscored that the landslide victory by the Bharatiya Janata Party (BJP) in elections is ‘credit positive’ for country’s sovereign profile and corporate sector. It further added that this strong mandate increases the possibility of a stable central government pursuing a shared economic agenda for addressing country’s macroeconomic challenges since intra-coalition differences around economic priorities in the past had derailed measures to improve India’s operating environment.

However, the rating agency sounded a word of caution on expecting any immediate change in economic situation as it highlighted that though the policy measures to revive the economy would emerge in the coming months, but growth, fiscal and inflation metrics were unlikely to improve any time soon. The agency said although market indicators have shifted rapidly in response to sentiment, economic trends will reverse more slowly, given that economic data still shows that growth remains weak and inflation high.

Additionally, it pointed that though India’s GDP growth rate was higher than that of several peer countries, even during its economic slowdown, its fiscal metrics, inflation levels and infrastructure for long had remained weaker than those of other ‘Baa’-rated countries. Also, the rating agency averred that the extent to which these metrics improve would depend upon the measures which the government adopts to address country’s weak fiscal position, the regulatory conditions on investment and output and the lack of adequate social and physical infrastructure.

However, it did acknowledge the incremental portfolio capital flows into India this year on hopes of a BJP-led coalition forming the next government and pursuing policies conducive to investment and economic growth, which in turn led to rupee appreciating by 5% against the US dollar since the beginning of the year.

The CNX Nifty touched a high and low of 7,291.10 and 7,193.55 respectively.

The top gainers of the Nifty were BHEL up by 14.42%, Coal India up by 13.20%, NTPC up by 12.16%, PNB up by 11.23% and ONGC up by 8.11%. On the other hand, TCS down by 6.24%, Dr. Reddy’s Laboratories down by 5.48%, Infosys down by 5.27%, Hindustan Unilever down by 4.95% and ITC down by 4.75% were the top losers.

The European markets were trading in red, France’s CAC 40 was down by 0.39%, Germany’s DAX was down by 0.39% and United Kingdom’s FTSE 100 was down by 0.44%.

The Asian markets concluded Monday’s trade mostly in red, as investors await the release of key manufacturing data from China later in the week. China’s top economic planning agency stated that the country will try to quicken the pace of economic reform this year as part of the government’s efforts to arrest a slowdown in the world’s second-largest economy. The National Development and Reform Commission reaffirmed nine reform priorities for 2014, including deepening reforms in the power and the oil and gas industries and cutting red tape for investment approvals. Japan’s Core Machinery Orders rose to 19.1%, from -8.8% in the preceding month. Hong Kong Unemployment Rate remained unchanged at a seasonally adjusted 3.1%, as of the preceding month. Malaysian GDP rose to a seasonally adjusted 6.2%, from 5.1% in the preceding month. Thailand’s gross domestic product fell less-than-expected last month. Thai GDP fell to a seasonally adjusted -0.6%, from 0.6% in the preceding month.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2005.18

-21.32

-1.05

Hang Seng

22704.50

-8.41

-0.04

Jakarta Composite

5015.00

-16.58

-0.33

KLSE Composite

1887.07

3.73

0.20

Nikkei 225

14006.44

-90.15

-0.64

Straits Times

 3262.43

-0.16

KOSPI Composite

2015.14

1.70

0.08

Taiwan Weighted

8899.90

11.45

0.13

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Extending their gaining streak for the fourth straight session, Indian equity markets scaled fresh all time closing high levels, as exit polls predicted that the Modi-led NDA is set to cross the magic figure of 272 in the just-concluded elections. Hectic buying activity in blue-chip stocks during the session too drove the markets higher, with frontline gauges ending at their all time closing high levels of 23,850 (Sensex) and 7,100 (Nifty). Meanwhile, rally at Dalal Street also saw participation of broader indices, which traded in-line with larger peers, ending with profit of around one and a half percent.

At one point of time Sensex surpassed its crucial 24,000 mark, but profit booking dragged the market below that level. Some cautiousness too was witnessed in the markets on account of weak set of economic data. The Industrial production contracted for the second month running in March, while consumer inflation accelerated to a three-month high in April. IIP contacted 0.5% in March, compared with a 1.8% decline in February, while CPI inflation accelerated to 8.59% in April from 8.31% in March.

But, overall sentiments remained up-beat on report that overseas investors put in Rs 1,200 crore into equities, taking their two-day investment tally to nearly Rs 2,500 crore ($420 million) on Monday, as per provisional figures provided by the stock exchanges.

On the global front, shares in Europe firmed up, tracking solid gains in US equities on Monday and driven by upbeat earnings from large corporate in the region. Moreover, the Asian markets ended mostly in the green as investors shrugged off tensions in Ukraine. Though, Chinese markets ended slightly lower after the nation’s Industrial Production fell to 8.7%, from 8.8% in the preceding month. Chinese Retail Sales too fell to an annual rate of 11.9% from 12.2% in the preceding month.

Back home, there was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too participated strongly in the rally. Appreciation in Indian rupee too supported the sentiments. Meanwhile, stocks related to Capital goods counters edged higher on hopes that the growth focused BJP-led NDA would unveil infrastructure reforms that would ultimately lead to new order inflows. Additionally, stocks related to public sector oil marketing companies (OMCs) viz. BPCL, HPCL and IOC edged higher as diesel prices were on Monday hiked by Rs 1.09 a litre, excluding state levies.

The NSE’s 50-share broadly followed index Nifty surged by over ninety points to end above its psychological 7,100 support level, while Bombay Stock Exchange’s Sensitive Index — Sensex zoomed over three hundred and twenty points to surpass the psychological 23,850 mark. Broader markets too traded with traction and ended the session with gain of around one and a half percent. The market breadth remained in favour of advances, as there were 1,623 shares on the gaining side against 1,268 shares on the losing side while 147 shares remain unchanged.

Finally, the BSE Sensex surged by 320.23 points or 1.36%, to 23871.23, while the CNX Nifty gained 94.50 points or 1.35% to 7,108.75.

The BSE Sensex touched a high and a low of 24068.94 and 23729.25, respectively. The BSE Mid cap index was up by 1.44%, while the Small cap index rose by 1.71%.

The top gainers on the Sensex were BHEL up by 10.25%, Hero MotoCorp up by 5.39%, ONGC up by 3.81%, Tata Power up by 3.62% and Wipro up by 3.36%. While Dr Reddys Lab down by 3.99%, Tata Motors down by 0.94%, Hindalco Inds down by 0.84%, HDFC Bank down by 0.60% and Sun Pharma down by 0.47% were the top losers in the index.

On the BSE Sectoral front, Power up by 3.26%, Consumer Durables up by 2.92%, Oil & Gas up by 2.84%, IT up by 2.59% and Capital Goods up by 2.51% were the top gainers, while Healthcare down by 0.45% was the only loser in the space.

Meanwhile, the industry body Ficci’s latest survey has highlighted that the growth in manufacturing sector is expected to moderate during the first quarter of the current fiscal due to weak domestic demand and slowdown in global demand for Indian products. The survey indicated that even with sluggish domestic demand, the exports outlook for sector too seems to be weakening, as a result of which manufacturing growth is likely to decline in Q1FY15.

The survey noted that out of 352 units, which participated in the survey, only 36 percent have reported higher order books for April-June FY15. The proportion of respondents expecting higher exports in the Q1 FY15 has fallen to 36 percent as against 58 percent in the Q4 FY14. Out of the 14 manufacturing sectors, five industries such as Automotive, Capital Goods, Machine Tools, Cement and Steel & Metals are likely to witness low growth of less than 5 percent. The Ficci’s survey further added that only three sectors, leather, chemicals and ceramics are expected to have a strong growth of over 10 percent in Q1 FY15 and rest are likely to witness moderate growth.

The output of manufacturing sector, which constitutes 75.52% in the IIP index, declined 1.2 percent in March against growth of 4.3 percent a year earlier. During the April-March period of 2013-14, the sector’s output contracted 0.8 percent compared with 1.3 percent growth previously. The sector’s output was mainly impacted by weak demand as Indian economy is struggling with slowdown. Indian economy’s growth slowed down to a decade low at 4.5 percent in FY13 and 4.6 percent during the first three quarter of FY14.

The CNX Nifty touched a high and low of 7,172.35 and 7,067.15 respectively.

The top gainers of the Nifty were BHEL up by 10.37%, Hero MotoCorp up by 6.02%, Ambuja Cements up by 4.89%, Bank of Baroda up by 4.54% and DLF up by 4.24%. On the other hand, PNB down by 4.77%, Dr. Reddy’s Laboratories down by 4.39%, Cairn India down by 1.25%, Hindalco Industries down by 1.12% and HDFC Bank down by 0.76% were the top losers.

The European markets were trading in green, France’s CAC 40 was up by 0.22%, Germany’s DAX was up by 0.69% and United Kingdom’s FTSE 100 was up by 0.06%.

The Asian markets concluded Tuesday’s trade mostly in green, tracking cues from Wall Street where the major averages ended on a strong note overnight. Malaysia and Singapore markets remained shut for the trade today on account of Wesak Day holiday. Shares in the Philippines and Indonesia rose to their highest in 11 months following other Asian markets as investors shrugged off tensions in Ukraine. Indonesia sold 10 trillion rupiah ($867.30 million) of conventional bonds at an auction, higher than an indicative target of 8 trillion rupiah. Japan’s M2 Money Stock fell to a seasonally adjusted 3.4%, from 3.6% in the preceding month whose figure was revised up from 3.5%.

China’s fiscal revenue climbed 9.2% year on year in April to reach 1.25 trillion yuan ($202.92 billion). The central government revenue reached 581.2 billion yuan, up 8.5% year on year, while local government revenue stood at 666.9 billion yuan, up 9.8% from the same period last year. Chinese Industrial Production fell to 8.7%, from 8.8% in the preceding month while Chinese Retail Sales fell to an annual rate of 11.9%, from 12.2% in the preceding month. Chinese Fixed Asset Investment fell to a seasonally adjusted 17.3%, from 17.6% in the preceding month.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2050.73

-2.14

-0.10

Hang Seng

22352.38

90.77

0.41

Jakarta Composite

4921.40

8.40

0.17

KLSE Composite

Nikkei 225

14425.44

275.92

1.95

Straits Times

 –

KOSPI Composite

1982.93

17.99

0.92

Taiwan Weighted

8817.94

9.33

0.11

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