Tag: closing session

Monday’s session largely turned out to be disappointing for Dalal Street, which for four straight sessions in row registered losses on the back of heavy drubbing in select blue chip stocks, like ITC, HUL and Infosys that arrested any kind of uptrend at the start of F&O expiry week. Among the blue-chip stocks, ITC collapsed close to 6% on worries the government may raise taxes on cigarettes aggressively in the upcoming budget in July, Infosys was beaten down by close to 3%. Nevertheless, buying witnessed in last hour of trade minimized some losses on the bourses. By close of trade, while Sensex managed to shut-shop above the crucial 25,000 mark, with loss of over quarter of a percent, Nifty just ended shy off the psychological 7,500 level. However, broader indices outperformed larger peers with fat margins to end with gains of over 0.50%-0.65%. Nevertheless, prevailing positive sentiment after a steep hike in railway passenger and freight fares, which was seen as possibly the first installment of the “tough measures” Prime Minister Narendra Modi had hinted at as necessary to revive the Indian economy, prevented any sharp slide.

On the global front, erasing early gains, Asia pacific shares ended mostly in green. These shares were up in early deals on upbeat news from China’s factory sector which fuelled appetite for riskier assets mainly arrested. HSBC/Markit’s preliminary Chinese manufacturing survey reached a seven-month high of 50.8 for June, exceeding the 49.7 street and a final reading of 49.4 in May. Additionally, European shares fell early on Monday as downbeat readings of euro zone business activity revived worries over the pace of the economic recovery in the single currency bloc. Dampening expectations for a rebound in the euro zone’s second-biggest economy, data compiler Markit said its composite purchasing managers index (PMI) of activity in France’s manufacturing and services sectors slipped deeper into contraction territory in May.

Closer home, majority of the sectoral indices on BSE settled into positive territory despite sluggish session of performance. However, stocks from Fast Moving Consumer Goods, Information Technology and Consumer Durables counters turned out to be exceptions. On the flip side, stocks from PSU, Oil & Gas and Metal counters were the top gainers of the session. Metal shares gained on hopes of better demand after a preliminary HSBC survey showed activity in China’s factory sector expanded in June for the first time in six months as new orders surged. In non-sectoral guage activity, sugar stocks were flavour of the session, with all stocks from Shree Renuka Sugars, Bajaj Hindustan, Balrampur Chini Mills, Triveni Engineering and Industries, Dhampur Sugar Mills and Oudh Sugar Mills registering gains of over 10% in otherwise subdued market after the government announced various measures to help the sector. In a sweet development for the sector, agriculture Minster Ram Vilas Paswan said the import duty on sugar has been increased to 40 per cent from 15 per cent earlier. He also underscored that the government will increase ethanol blending with petrol to 10 per cent from current 5 per cent.

Meanwhile, In a bitter medicine, which was necessitated to set right the faltering finances of the railways that were aggravated by UPA’s mismanagement of the economy, Modi led government approved a steep hike in the train fares and freight rates. With this, fares of all classes would be hiked by 14.20%, while the freight rates would go up by 6.50%, effective from June 25. Of the total, as much as 4.20% of the fare hike is on account of a variable Fuel Adjustment Component (FAC) approved in last year’s rail budget, remaining 10% is a flat hike across all classes. Similarly, freight rates too have 5% flat hike over and above a 1.4% of the FAC.

Further, this decision would help Indian Railways to mop up an additional Rs 8,000 crore in the financial year. In present scenario, Railways’ subsidy to passenger operations had touched Rs 26,000 crore and its ordinary working expenses have been mounting on account of fuel bill and salary.

However, Railway Minister Sadananda Gowda had sought Modii’s approval to roll out the unpopular move barely a couple of weeks before the government’s first rail budget. Gowda had also made a case for the hike to Finance Minister Arun Jaitley earlier this week.

This move besides being unpopular also was tricky one for Sadananda Gowda as the previous government prevented the proposal of this very hike to be rolled out on May 16, the day of the election results that brought in the regime change. The expected mop-up of around Rs 10,000 crore had already been factored in the interim budget passed in Parliament before elections. This was perhaps the reason behind the automatic hike that was taken by the Railways on May 16, but the same had be quickly withdrawn on account of former Railway Minister Mallikarjun Kharge’s objection.

European markets were trading in red; UK’s FTSE 100 down by 0.21%, Germany’s DAX down by 0.35% and France’s CAC 40 was down by 0.33%.

The Asian markets concluded Friday’s trade mostly in red, with Nikkei ending slightly lower as investors tended to lock in gains from recent surges, despite optimism over the global economy. Moody’s Investors Service stated that the prolonged effects of China’s property market slowdown could hurt economic growth, but reforms to balance the economy will offset the negative impact. China’s gross domestic product growth may slow to 5-6 percent from 7-7.5 percent this year if property sales and building construction both fall by 10%. Indonesia’s outgoing finance minister stated that the next president will need to discard election rhetoric and focus on raising fuel prices and luring foreign investment to address the budget and current- account deficits. Southeast Asia’s biggest economy is struggling to contain a persistent current-account deficit that helped make the rupiah Asia’s worst performer last year, while ballooning fuel subsidy costs have increased the 2014 budget shortfall and forced a reduction in state spending. Japan’s All Industries Activity Index fell to a seasonally adjusted -4.3%, from 1.5% in the preceding month.

Asian Indices Last Trade Change in Points Change in %
Shanghai Composite 2026.67 2.94 0.15
Hang Seng 23194.06 26.33 0.11
Jakarta Composite 4847.70 -16.57 -0.34
KLSE Composite 1885.72 4.24 0.23
Nikkei 225 15349.42 -11.74 -0.08
Straits Times  3258.80 -10.22 -0.31
KOSPI Composite 1968.07 -23.96 -1.20
Taiwan Weighted 9273.79 -43.02 -0.46

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24th May 2014, Wednesday turned out to be another session of consolidation for Indian equity markets, which in absence of any fresh triggers, failed to make headway into positive territory. While, there was some caution ahead of the expiry of May derivative contracts on Thursday. Nevertheless, sentiment to some extent took a hit after overseas investors for three consecutive session sold shares worth Rs 203 crore on Tuesday, while anticipation of Jan-March GDP to confirm economy confirming slow-down, too added to the cautious undertone of the markets. Q4 GDP It data is set to be unveiled on May 31, Friday. Further, a report called India’s new ministers ‘underwhelming,’ saying no professionals were brought in for ministries targeted for reforms, such as railways and coal, too limited the uptrend of the markets.

Volatility on penultimate session of F&O expiry mainly took Nifty higher by quarter of a percent and above the crucial 7300 level by close of trade, however Sensex ended the session flat at 24,550 level. Meanwhile, broader indices underperforming larger peers by fat margins, ended with gains in the range of 0.40-1.65%.

On the global front, Strong economic data in the United States shored up Asian stocks to one-year highs on Wednesday. Riskier asset markets sped up overnight after the United States reported an unexpected rise in durable goods orders in April and higher home prices for March. Services industries, which dominate the economy, also grew at a rapid clip in May. Meanwhile, European stocks were little changed, trading near their highest level since January 2008, as GlaxoSmithKline Plc retreated after becoming the subject of a criminal investigation.

Closer home, gains in stocks from Information Technology, Realty and Technology counters were counterbalanced by losses in stocks from Metal, PSU and Consumer Durables counters. IT stocks featured in the list of top gainers for yet another session on good US economic data and Rupee’s depreciation. Meanwhile, in non sectoral gauge activity, cement stocks also witnessed buying interest amid long built-up in these stocks ahead of expiry of May derivative contracts. UltraTech, Ambuja and ACC all rallied over 4%. Besides, fertilizer stocks, namely Chambal fertilizers, National fertilizers, Zuari Agro gained after Fertilizer Minister underscored that government will take steps to revive closed urea plants. Meanwhile, airline stocks, namely Spicejet and Jet Air India too witnessed drubbing after the latter posted a record 8% quarterly loss partly as a result of higher jet fuel expenses and a one-time charge on a unit.

The BSE Sensex is currently trading at 24556.09, up by 6.58 points or 0.03% after trading in a range of 24643.33 and 24488.81. 16 stocks advanced against 14 stocks declining on the index. (Provisional)

The broader indices outperformed larger peers; the BSE Mid cap and Smallcap index settled higher by 0.40% and 1.63% respectively. (Provisional)

The gaining sectoral indices on the BSE were IT up by 1.52%, TECK up by 1.42%, Realty up by 1.40%, Bankex up by 0.56% and Capital Goods up by 0.45%. While, Metal down by 1.62%, PSU down by 1.20%, Consumer Durables down by 0.99%, Oil & Gas down by 0.88% and Auto down by 0.75% were the losing indices on BSE.    (Provisional)

The top gainers on the Sensex were Tata Power up by 3.40%, HDFC Bank up by 2.16%, Hero Motocorp up by 2.11%, Bharti Airtel up by 1.73% and Dr. Reddy’s Lab up by 1.67%. On the flip side, Coal India down by 3.43%, ONGC down by 3.17%, M&M down by 2.85% Gail India down by 2.01% and NTPC down by 1.75%.(Provisional)

Meanwhile, with a view to provide importers with greater flexibility in hedging facility, the Reserve Bank of India (RBI) has decided to allow domestic importers to book forward contracts up to 50 percent of the eligible limit under the past performance route. As per the present guidelines relating to hedging of currency risk of probable exposures based on past performance, Indian importers are allowed to book contracts up to 25 percent of the eligible limit.

The RBI further notified that importers who have already booked contracts up to previous limit of 25 percent in the current financial year, will be eligible for difference arising out of the enhanced limits. The eligible limit is determined on the basis of average of the previous three financial years’ import turnover or the previous year’s actual import turnover, whichever is higher.

The RBI’s latest move is likely to provide some relief to importers as the depreciation in rupee value increases the imports costs. During the FY14, India’s overall imports declined by 8.11% to $450.95 billion as against $490.74 billion reported in the same period of previous fiscal year. Contraction in domestic imports during FY14 was mainly driven by weak domestic demand and lower gold imports.

The CNX Nifty settled at 7,335.30, up by 17.30 points or 0.24% after trading in a range of 7,344.75 and 7,302.60. 28 stocks advanced against 22 declines on the index. (Provisional)

India VIX, a gauge for markets short term expectation lost 8.07% at 17.55 from its previous close of 19.10on Monday. (Provisional)

The top gainers of the Nifty were Ultratech Cement up by 5.67%, Ambuja Cement up by 5.49%, Tata Power up by 4.71%, ACC up by 4.32% and HCL Technologies up by 4.15%. On the flip side, Coal India down by 3.07%, ONGC down by 3.00%, Asian Paints down by 2.86%, M&M down by 2.71% and Jindal Steel down by 2.51% were the major losers on the index. (Provisional)

The European markets were trading mostly in green, with France’s CAC 40 up by 0.13% and UK’s FTSE 100 gained 0.05%, while Germany’s DAX added 0.13% (Provisional)

The Asian markets concluded Wednesday’s trade mostly in green. Details are below :

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2050.23

15.66

0.77

Hang Seng

23080.03

135.73

0.59

Jakarta Composite

4985.58

21.65

0.44

KLSE Composite

1871.66

4.09

0.22

Nikkei 225

14670.95

34.43

0.24

Straits Times

 3271.84

-2.22

-0.07

KOSPI Composite

2017.06

19.43

0.97

Taiwan Weighted

9121.71

66.42

0.73

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