Tag: iip

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.

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Market likely to continue its downward move today Indian market fell more than one percent on Thursday to mark a third consecutive day of declines since hitting a record high at the start of the week as Tata Motors slumped after saying its unit Jaguar Land Rover would increase capital spending. The Sensex fell 1.16 percent, or 245.80 points, to end at 20,925.61, to mark its lowest close since Dec 4. The Nifty fell 1.12 percent, or 70.85 points, to end at 6,237.05, closing below the psychologically important 6,300 level. Both indexes also marked their biggest single-day fall since Nov 21. Rate-sensitive stocks such as ICICI Bank also fell on caution ahead of retail inflation data later in the day yesterday, which will be followed by wholesale inflation on Monday and is seen as key for the central bank’s policy review on Dec 18. Tackling inflation will be a priority, finance minister and RBI governor said on Wednesday, after high prices contributed to painful losses for the ruling Congress party in state elections. Despite the fall, the sentiment seems positve on hopes the domestic economy is looking at a trough and on continued foreign investor flows which crossed the 1-trillion-rupee mark earlier this week.

European equities extended a two-week sell-off to close lower on Thursday, as investors booked profits on heightened fears that the U.S. Federal Reserve could act soon start to unwind its bond-buying program. U.S. stocks finished lower on Thursday, extending losses into a third session, as investors considered the timing of any reductions in the Federal Reserve’s monetary stimulus.

Global cues are downcast today with them SGX Nifty is showing 41 points cut in morning trade indicating that Indian market would open in the red today and Nifty is likely to trade between 6260 and 6170 with downward biasness.

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