Tag: Indian equity

Indian equity markets witnessed a smart bounce-back of around a percent and half on Tuesday after four straight sessions of fall, which lifted both Sensex and Nifty above the psychologically crucial 25,350 and 7,550 levels respectively. Bargain-buying activities by market-participants in fundamentally strong blue chip stocks available at attractive valuations after four straight sessions’ of plunge, mainly soothed the sentiment at Dalal Street amidst lower Brent crude prices which whetted the risk appetite of investors for emerging markets assets. In the extremely rock-solid session of trade, wherein benchmarks traded from strength to strength and ended near day’s high point by close of trade, volatility factor, which is peculiar feature in F&O expiry week, remained absent. In the extremely stable session of trade, broader indices too rallied over 1.5%.

Closer home, sentiments also got a lift after shares of ITC made a smart comeback on Tuesday post sharp selloff witnessed in previous session, triggered by media reports suggesting steep increase in tax on cigarettes. Nevertheless, amidst broad-based buying, all the sector indices on BSE ended in positive territory, with only exceptions being stocks from defensive Healthcare counter which were beaten blue in trade. On the flip side, massive buying was witnessed in stocks of Realty counter, followed by Consumer Durables and Oil & Gas counters. Oil marketing companies stocks, vis-à-vis, BPCL, HPCL and IOC, witnessed strong demand after Brent crude fell below $114 a barrel on Tuesday, with data showing near-record high oil exports from Iraq indicated supplies remained unaffected by the escalating violence at OPEC’s No. 2 producer. Additionally, banking stocks too were on buyer’s radar as concerns of fuel price led inflation eased along with decline in crude oil prices.  Besides, sugar stocks too extended gains as sentiment turned positive following the government’s decision to hike import duty on sugar. To tackle the rising crude oil prices, the Food Minister announced that ethanol blending with petrol will be increased to 10% from 5%. Moreover, shares of local tyre companies continued their dream run in trade on Tuesday with CEAT and JK Tyres hitting yet another 52-week high in intra-day trade.  The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 2038: 993, while 117 scrips remained unchanged. (Provisional)

The BSE Sensex surged 337.58 points or 1.35% to settle at 25368.90. The index touched a high and a low of 25414.69 and 25115.83 respectively. Among the 30-share Sensex, 26 stocks gained, while 4 stocks declined. (Provisional)

The BSE Mid cap and Small cap indices ended higher by 1.59% and 1.64% respectively. (Provisional)

On the BSE sectoral front, Realty up by 1.57%, Consumer Durables up by 2.44%, Oil & Gas up by 2.17%, Infrastructure up by 2.05% and PSU up by 2.04% were the gainers while, Healthcare down by 0.09% was the lone loser in the space. (Provisional)

The top gainers on the Sensex were GAIL up 4.56%, HDFC up by 2.81%, BHEL up by 2.48%, SBI up by 2.24% and Axis Bank up by 2.19%. On the flip side, the key losers were Sun Pharma down by 0.96%, Infosys down by 0.64%, Hindustan Unilever down by 0.02% and Wipro down by 0.01%. (Provisional)

Meanwhile, in order to curb the inflow of cheaper sweetener, the government has decided to hike the import duty on sugar to 40 percent from the current 15 percent. The move is likely to increase the sugar prices up to Rs 60 per quintal in the country. Besides, the government will provide additional interest-free loan of Rs 4,400 crore to cash-starved sugar mills to make payments to cane farmers. The decision was taken after a high-level meeting attended by various ministers including Food Minister Ram Vilas Paswan and Commerce & Industries Minister Nirmala Sitharaman among others.

Food Minister Ram Vilas Paswan also announced that the subsidy on raw sugar exports would be extended till September 2014. Furthermore, mandatory blending of ethanol (a by-product of sugar) with petrol was also enhanced to 10 percent as against 5 percent at present. However, Food Minister cleared that all these decisions were subject to the sugar industry’s guarantee that it would clear all arrears estimated at around Rs11,000 crore. The government’s latest decision is likely to provide impetus to Indian sugar industry through making imports costlier and improving the liquidity of sugar mills.

India, the second largest producer of sugarcane after Brazil, holds about 5 million hectares of land under sugarcane with an average yield of around 70 tonne per hectare. India produced 25.14 million tonnes of sugar in the crop season ended September 30, 2013, almost 4.5% less than the previous year’s because of low rainfall in Maharashtra, Karnataka and Tamil Nadu in 2012. The Indian Sugar Mills Association (ISMA) has estimated Indian sugar production at 24 million tonnes for 2013-14.

India VIX, a gauge for markets short term expectation rose 1.18% at 19.18 from its previous close of 18.96 on Monday. (Provisional)

The CNX Nifty gained 86.85 points or 1.16% to settle at 7,580.20. The index touched high and low of 7,593.35 and 7,515.20 respectively. Out of 50 stocks in Nifty, 39 stocks ended in the green and 11 in red. (Provisional)

The major gainers of the Nifty were GAIL up 4.75%, BPCL up by 4.70%, DLF up by 4.70%, Bank of Baroda up by 3.22% and NMDC up by 3.20%. On the flip side, the key losers were Kotak Bank down by 1.74%, Sun Pharma down by 1.14%, Infosys down by 0.82%, Ultratech Cement down by 0.67% and Tech Mahindra down by 0.51%. (Provisional)

On the global front, Asian shares ticked higher on Tuesday as improved manufacturing data from China, Japan and the United States augured well for global growth, despite a disappointing result from the euro zone. Additionally, European shares rose on Tuesday, buoyed by new signs of corporate takeover activity, with agrochemicals company, Syngenta surging on a media report that peer Monsanto had considered buying it.

European markets were mostly trading in red; UK’s FTSE 100 down by 0.31%, Germany’s DAX down by 0.07%, while France’s CAC 40 was up by 0.16%.

Asian Indices Last Trade Change in Points Change in %
Shanghai Composite 2033.93 9.57 0.47
Hang Seng 22880.64 75.83 0.33
Jakarta Composite 4862.24 20.11 0.42
KLSE Composite 1892.33 8.37 0.44
Nikkei 225 15376.24 6.96 0.05
Straits Times  3262.03 4.63 0.14
KOSPI Composite 1994.35 19.43 0.98
Taiwan Weighted 9246.20 17.85 0.19
 

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Giving thumbs up to RBI’s status quo stance in second bi-monthly monetary policy, Indian equity markets rallying for second consecutive session and accumulating gains of over 3/4th of a percent, settled at record high closing levels on Tuesday. Besides, the status quo stance for key policy repo rate, which was left unchanged at 8%, markets took a heart from dovish tone of RBI, which in its policy rationale and guidance, underscored that if the economy stays on this course, further policy tightening will not be warranted, but on the other hand, if disinflation, adjusting for base effects, was faster than currently anticipated, this would provide headroom for an easing of the policy stance. By close of trade, both Sensex and Nifty ended past the crucial 24,850 and 7,400 levels respectively. Meanwhile, broader indices also participated into this rally and ended with gains in the range of 0.65%-1.25%.

On the global front, Asian shares rode higher on Tuesday, supported by solid US and Chinese data. Shares were bolstered by the US Institute for Supply Management’s manufacturing activity index rising to 55.4 in May from 54.9 in April. Meanwhile, European shares were trading lower ahead of key euro zone inflation data and also on account of caution ahead of this week’s European Central Bank (ECB) policy meeting.

Closer home, majority of the sectoral indices on BSE ended into positive territory, with only exception being stocks from Healthcare, Fast Moving Consumer Goods and Information Technology counters which were the top losers of the session. On the flip side, stocks from Metal, Realty and Public Sector Undertaking counters were the prominent gainers. Meanwhile, shares of sugar refiners rose sharply on expectations that the new government would push ethanol blending in petrol and increase the import duty on the sweetener to support local prices. Besides, steel stocks also gained after positive manufacturing data in a private survey in China, the world’s biggest consumer and producer of the metal. China’s factory sector turned in its best performance in four months in May as export orders improved although activity still contracted, a private survey showed on Tuesday, adding to signs the economy may be stabilizing. Additionally, Auto counter too staged a heartwarming performance, while Hero MotoCorp extended Monday’s gains triggered by the company’s strong sales in May, Eicher Motors rose after the company reported strong motorcycle sales in May. Besides, Cement stocks too were on investors’ radar, with Grasim Industries scaling a 52 week high level in intra-day trade. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1919: 1096, while 91 scrips remained unchanged. (Provisional)

The BSE Sensex gained 173.74 points or 0.70% to settle at 24858.59. The index touched a high and a low of 24892.06 and 24626.97 respectively. Among the 30-share Sensex, 17 stocks gained, while 13 stocks declined. (Provisional)

The broader indices ended in green; the BSE Mid cap index was up by 0.63% and Small cap index was up by 1.18%. (Provisional)

On the BSE Sectoral front, Metal up by 5.06%, Realty up by 3.15%, PSU up by 1.87%, Oil and Gas up by 1.76% and Consumer Durables up by 1.44% were the gainers while, FMCG down by 0.75%, Healthcare down by 0.50%, Bankex down by 0.18% and  IT down by 0.04%, were the few losers in the space. (Provisional)

The top gainers on the Sensex were Tata Steel up 6.74%, SSLT up by 6.03%, Coal India up by 5.33%, ONGC up by 4.45% and BHEL up by 3.66%. On the flip side, the key losers were Dr. Reddys Lab down by 3.07%, GAIL down by 2.04%, HUL down by 1.67%, ITC down by 1.22% and Bharti Airtel down by 1.05%. (Provisional)

Meanwhile, the government has slashed the import tariff on gold to $408 per 10 gram from $424 and silver to $617 per kg from $650 per kg, in line with global rates of the precious metals, which could lead to some softening in the prices. Tariff value or the base price is set to determine the customs duty on the precious metal and to prevent under invoicing. The government revises import tariff value on a fortnightly basis taking into account the volatility in global metal prices.

During the recent months, global gold prices have been declining as positive US economic data backed the latest Federal Reserve’s move to keep on reducing monetary stimulus which has dimmed the precious metal’s appeal. Taking global cues, domestic gold rates in the national capital Delhi declined to 11-month low at Rs 27,400 per 10 grams.

Gold is the second largest import item for India after crude oil. The government had taken various measures like high customs duty of 10% and 80/20 rule to curb gold shipments to check country’s widening current account deficit (CAD). Gold and silver imports fell by 40.02% to $33.46 billion in FY14 due to these stern Government’s norms. Low gold imports also helped India to contain current account deficit (CAD) at 1.7 percent of GDP or $32.4 billion in FY 14 as compared to $87.8 billion, or 4.7 percent of GDP in FY13.

India VIX, a gauge for markets short term expectation declined 4.25% at 15.79 from its previous close of 16.49 on Friday. (Provisional)

The CNX Nifty gained 51.95 points or 0.71% to settle at 7,414.45. The index touched high and low of 7,424.95 and 7,342.15 respectively. Out of 50 stocks in Nifty, 31 stocks ended in the green and 19 in red. (Provisional)

The major gainers of the Nifty were Tata Steel up 6.72%, SSLT up by 5.98%, Coal India up by 5.64%, DLF up by 5.21% and Grasim up by 5.16%. On the flip side, the key losers were Dr. Reddys Lab down by 2.30%, HCL Tech down by 2.03%, Indusind Bank down by 1.86%, GAIL down by 1.84% and Kotak Mahindra Bank down by 1.51%. (Provisional)

Most of European markets were trading in red; UK’s FTSE 100 down by 0.34%, Germany’s DAX down by 0.27% and France’s CAC 40 was down by 0.07%.

Hong Kong Retail Sales fell to a seasonally adjusted annual rate of -9.8%, from -1.3% in the preceding month. Japan’s Monetary Base fell to 45.6%, from 48.5% in the preceding month while Japan’s Average Cash Earnings rose to a seasonally adjusted 0.9%, from 0.7% in the preceding quarter. Thai consumer confidence jumped in May on hopes a new military government would impose order after months of political chaos that had threatened to tip the economy into recession.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2038.31

-0.91

-0.04

Hang Seng

23291.04

209.39

0.91

Jakarta Composite

4942.16

30.07

0.61

KLSE Composite

1872.55

8.30

0.45

Nikkei 225

15034.25

98.33

0.66

Straits Times

 3296.67

-5.57

-0.17

KOSPI Composite

2008.56

6.56

0.33

Taiwan Weighted

9123.46

47.55

0.52

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Thursday’s session turned out to be of consolidation as local equity markets took a breather after last three trading sessions ferocious bull-run, which took markets scaling fresh life time high levels with each passing session. Market-participants’ hesitation in initiating fresh bets ahead of the elections’ final result on May 16 combined with record high levels which enticed traders to cash in their profit, mainly led to down session of trade at Dalal Street, which dragged Sensex lower over quarter of a percent and Nifty marginally below the neutral line. However, losses to some extent were capped by the recovery that took place in the late hours of trade. On the political front, most exit polls predicted that Narenda Modi and his alliance will secure a simple majority in India’s legislature, or 272 of parliament’s 543 seats. Notably, the session clearly belonged to broader indices, which for yet another session accumulated massive gains of over a percent.

On the global front, Asian stocks rose amid speculation that China will do more to support the property market, however gains were capped as investors continued to monitor the ongoing crisis in the Ukraine, where pro-Russian separatists ambushed Ukrainian troops on Tuesday, killing seven. On the flip side, European shares eased from multi-year highs on Wednesday and the euro licked its wounds after slumping to a five-week low as the focus shifted to an economic outlook from the Bank of England for clues on when UK interest rates will rise.

Closer home, despite being the lackluster session of trade, majority of the sectoral indices settled into positive terrain, with the prominent gainers being the stocks from Realty, Metal and Consumer Durable counters. On the flip side, much of profit-booking was witnessed in stocks from Oil & Gas counter, followed by Capital Goods and Information Technology counters that ended with cut of over 0.25%. On the gainers’ side, state-run banks gained after a committee appointed by Reserve Bank of India (RBI) proposed on Tuesday the Indian government should cut its stakes in state banks to below 50%. Besides, steel stocks witnessed massive demand, with all JSW Steel, Steel Authority of India (SAIL), and Jindal Steel & Power gaining in the range of 1.5%-6%. The market breadth on the BSE ended positive; advances and declining stocks were in a ratio of 1689: 1222, while 131 scrips remained unchanged. (Provisional)

The BSE Sensex soared 56.11 points or 0.24% to settle at 23815.12. The index touched a high and a low of 23964.67and 23753.36 respectively. Among the 30-share Sensex, 15 stocks gained, while 15 stocks declined. (Provisional)

The broader indices too shut shop with massive gains; while BSE Mid cap index ended higher by 1.12%, Small cap index settled with gains of 1.24%.(Provisional)

On the BSE Sectoral front, Realty up by 4.32%, Metal up by 3.22%, Consumer Durables up by 2.28% , PSU up by 1.84% and Power up by 0.83% were the gainers while, Oil & Gas down by 0.78%, Capital Goods down by 0.36%, IT down by 0.31% , Health Care down by 0.30% and Auto down by 0.03%  were the losers in the space. (Provisional)

The top gainers on the Sensex were Tata Steel up by 6.11%, Coal India up by 3.29%, Bajaj Auto up by 2.77%, SSLT up by 2.62% and NTPC up by 2.36% while, Mahindra & Mahindra down by 3.34%, Dr Reddys Lab down by 3.24%, HDFC down by 2.04%, RIL down by 1.59% and BHEL down by 1.51% were the top losers in the index (Provisional).

India currently is the fourth largest oil consumer in the world behind the US, China and Japan, and imports around 80 percent of its oil needs. In the previous year 2013, India had overtaken Japan as the world’s third-biggest crude oil importer. It imported 3.86 million bpd of crude oil in 2013, nearly 6 percent higher than Japan’s customs-cleared imports of 3,648,372 bpd. The US EIA report estimates that India will become the world’s largest oil importer by 2020. Meanwhile, the Government of India (GoI) has formulated a roadmap for cutting India’s dependence on imports to meet its oil needs. The Government wants country’s oil imports dependence to be cut to 50 percent by 2020 and by 25 percent in 2025 through intensive exploration and exploitation of untapped reserves. Presently, only 0.93 million sq km area in India is held under exploration and production in 19 basins as compared to total estimated sedimentary area of 3.14 million square kilometres, comprising 26 sedimentary basins.

India VIX, a gauge for markets short term expectation gained 1.16% at 32.42 from its previous close of 32.06 on Tuesday. (Provisional)

The CNX Nifty ended flat at 7,108.40. The index touched high and low of 7,142.25 and 7,080.90 respectively. Out of 50 stocks in Nifty, 30 stocks ended in the green and 20 in red.

The major gainers of the Nifty were Bank Baroda up 9.60%, Jindal Steel up by 5.95%, Tata Steel up by 5.95% , DLF up by 5.45% and NMDC up by 5.07%.  On the flip side, the key losers were M&M down by 3.67%, DR Reddy down by 3.48%, HDFC down by 1.91%, Reliance down by 1.74% and HDFC Bank down by 1.71%. (Provisional)

European markets were trading in red; France’s CAC 40 was down by 0.15%, UK’s FTSE 100 was down by 0.02% and Germany’s DAX was down by 0.06%.

The Asian markets concluded Wednesday’s trade mostly in green, following a record close for the Dow and S&P 500 on Wall Street. Southeast Asian currencies rallied as US economic data that trailed estimates weakened the greenback, and political developments in Indonesia spurred the rupiah to its biggest gain since March. A set of unexpectedly weak activity data for April pointed toward a stalling economic recovery in China, reviving expectations that the government will continue policies aimed at nurturing growth. New home sales in China declined at a faster rate in the first four months of this year, by both value and volume, as the lack of enthusiasm among homebuyers continued. The value of new homes sold across the country dropped 9.9% from the same period a year earlier to 1.53 trillion yuan ($246 billion) during the January-April period. In the first quarter, the value fell 7.7% year on year. Japan’s Corporate Goods Price Index rose to a seasonally adjusted annual rate of 4.1%, from 1.7% in the preceding month. South Korean Unemployment Rate rose to a seasonally adjusted annual rate of 3.7%, from 3.5% in the preceding month.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2047.91

-2.82

-0.14

Hang Seng

22582.77

230.39

1.03

Jakarta Composite

4991.64

70.24

1.43

KLSE Composite

1879.20

13.12

0.70

Nikkei 225

14405.76

-19.68

-0.14

Straits Times

 3259.09

36.66

1.14

KOSPI Composite

2010.83

27.90

1.41

Taiwan Weighted

8875.16

57.22

0.65

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Indian equity benchmarks trimmed losses and continued their weak trade in the late afternoon session. The sentiments were on weak note on account of profit-taking after a record setting rally that saw the benchmark indices register successive all-time highs over the last three sessions. Overseas investors have bought cash shares and index futures worth $1.06 billion in the three sessions. Traders were seen piling up positions in Realty, Metal and PSU stocks, while selling was witnessed in Oil & Gas, Capital Goods and Auto sector stocks. Hectic activity was witnessed in shares of state-run banks after the Reserve Bank of India panel report stated that the government should reduce holdings in PSU lenders to under 50%. In scrip specific development, SKS Microfinance was trading in green following reports that SKS Trust Advisors, the original promoter of the firm, is planning to exit the company. Bank of Baroda was trading firm after the lender’s quarterly earnings beat estimates.

On the global front, the Asian markets were trading mostly in green, while the European markets traded on mixed note. Back home, the NSE Nifty and BSE Sensex were trading below their psychological 7,150 and 23,900 levels respectively. The market breadth on BSE was positive in the ratio of 1490:1276 while 120 scrips remained unchanged.

The BSE Sensex is currently trading at 23810.20, down by 61.03 points or 0.26% after trading in a range of 23964.67 and 23753.36. There were 17 stocks advancing against 13 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 0.93%, while Small cap index up by 1.12%.

The gaining sectoral indices on the BSE were Realty up by 3.44%, Metal up by 2.22%, PSU up by 1.09%, Consumer Durables up by 0.66%, and FMCG up by 0.48%.

On the flip side, Oil & Gas down by 0.81%, Capital Goods down by 0.53%, Auto down by 0.29%, IT down by 0.22% and HealthCare down by 0.09% were the losing indices on BSE.

The top gainers on the Sensex were Tata Steel up by 4.94%, Bajaj Auto up by 2.72%, Coal India up by 1.73%, NTPC up by 1.42% and Cipla up by 1.18%.

On the flip side, M&M down by 3.46%, Dr. Reddy’s Lab down by 2.94%, HDFC down by 1.81%, BHEL down by 1.46% and Reliance Industries down by 1.33% were the top losers on the index.

Meanwhile, India is likely to overtake Japan to become the world’s third largest oil consumer behind the US and China by 2025, according to the report of the US Energy Information Administration (EIA). The US EIA, in its Annual Energy Outlook report highlighted that India’s oil consumption is expected to rise from 3.68 million barrels per day (173.5 million tonnes) in 2012 to 5.19 million bpd in 2025, overtaking Japan’s 4.38 million bpd consumption.

The report further added that during the period 2012-2040, India’s oil consumption growth rate will be highest in the world with around 3 percent compounded annual growth rate to 8.33 million bpd in 2040. On global front, the US EIA report highlighted that China’s oil consumption is projected to rise from 10.36 million barrels per day in 2012 to 15.70 million bpd in 2025 and 20.48 million bpd in 2040, posting a compounded annual growth rate of 2.5 percent during 2012-2040. The US will continue to be the world’s biggest oil consumer but with almost no demand growth. The US consumed 18.21 million bpd of oil in 2012 which is projected to increase 18.97 million bpd in 2025 and to 18.42 million bpd in 2040. Japan consumed 4.75 million bpd of oil in 2012.

India currently is the fourth largest oil consumer in the world behind the US, China and Japan, and imports around 80 percent of its oil needs. In the previous year 2013, India had overtaken Japan as the world’s third-biggest crude oil importer. It imported 3.86 million bpd of crude oil in 2013, nearly 6 percent higher than Japan’s customs-cleared imports of 3,648,372 bpd. The US EIA report estimates that India will become the world’s largest oil importer by 2020.

The Government of India (GoI) has formulated a roadmap for cutting India’s dependence on imports to meet its oil needs. The Government wants country’s oil imports dependence to be cut to 50 percent by 2020 and by 25 percent in 2025 through intensive exploration and exploitation of untapped reserves. Presently, only 0.93 million sq km area in India is held under exploration and production in 19 basins as compared to total estimated sedimentary area of 3.14 million square kilometres, comprising 26 sedimentary basins.

The CNX Nifty is currently trading at 7,108.30, down by 0.45 points or 0.01% after trading in a range of 7,142.25 and 7,080.90. There were 31 stocks advancing against 19 declining on the index.

The top gainers of the Nifty were Bank of Baroda up by 8.22%, Tata Steel up by 5.08%, Jindal Steel up by 4.34%, NMDC up 4.18% and DLF up by 4.17%.

On the flip side, M&M down by 3.89%, Dr. Reddy’s Lab down by 2.84%, HCL Tech down by 1.95%, HDFC down by 1.74% and Reliance Industries down by 1.41% were the major losers on the index.

Asian equity indices were trading mostly in green; Hang Seng spurted 1.03%, Taiwan Weighted advanced 0.65%, Straits Times surged 1.12% and Jakarta Composite gained 0.93% while, Shanghai Composite down by 0.14% was the sole loser on the index.

The European markets were trading on a mixed note; France’s CAC 40 was down by 0.17%, Germany’s DAX added 0.04% and UK’s FTSE 100 lost 0.17%.

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