Tag: NSE

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
 

Tags: , , , , , , , ,
Depicting strength, Indian equity markets shaved all its early losses and ended flat with positive bias on Tuesday thanks to defensive buying strategy by market-participants, which lifted the benchmarks from doldrums, thereby proving that market’s new found strength was not temporary. In the first half of the session, profit-booking by market-participants after three consecutive sessions’ record rally on concerns of possible monsoon deficit combined with caution ahead of release of the consumer price index (CPI) inflation data for May and the Index of Industrial Production (IIP) data for April due on Thursday, weighed on the sentiment. However, late hour buying by traders led markets log yet other record high closing levels, with both Sensex and Nifty settling above the crucial 25,550 and 7,650 psychological mark respectively.

Sentiments took a hit in early deals after Indian Meteorological Department (IMD) forecasted rainfall in June-September to be below normal at 93% of the long period average, which in terms of quantity, could be the lowest in four years. While, benchmarks also fell off lifetime high levels in early deals amid concerns the rally that made it the best performer among emerging markets this year has exceeded the outlook for earnings. Nevertheless, besides bargain buying activities, positive regional counterparts also aided the recovery.

On the global front, Asian pacific shares settled higher on Tuesday on account of in-line with expectation China inflation data, which though was higher than the previous month’s figure. China CPI in May rose 2.5% year-on-year, while PPI fell 1.4%.for May. The previous month saw CPI rise at 1.8%, and a 2.0% fall for PPI. Meanwhile, European shares were trading mostly positive as reports showed that industrial production in the U.K and France matched street estimates. In the U.K., a report from the Office for National Statistics showed that industrial output in Europe’s third-largest economy climbed 0.4% in April, while in France, a release showed that industrial output rose 0.3 percent in April.

Closer home, while majority of the sectorial indices on BSE settled into negative territory, stocks from Realty, Public Sector Undertaking (PSU) and Oil & Gas counters were the prominent losers. On the flip side, stocks from Consumer Durables, Information Technology and Healthcare counters were the pillars of market’s strength. Losses of cyclical stocks turned out to be the gains for defensive stocks, like software and pharma, as investors looked to reduce volatility in their portfolios. While rupee’s depreciation aided the IT counter, FMCG stocks, which lost steam after India Meteorological Department (IMD) forecasted rains to be below normal this year as the chances of El Nino occurring during monsoon being very high, too recovered by the end of trade. The stocks tanked in intra-day trade given that most of FMCG firms derive substantial revenue from rural India. The overall market breadth on BSE settled in the favour of declines which outperformed advances in the ratio of 1108:797; while 14 shares remained unchanged.

The BSE Sensex settled at 25583.69, up by 3.48 points or 0.01% after trading in a range of 25347.3 and 25711.1. 14 stocks advanced against 16 stocks declining one’s on the index.   (Provisional)

The broader indices were trading mixed; while BSE Mid cap index was down by 0.27%, Small cap index ended up by 0.26%.   (Provisional)

The top gainers on BSE sectoral front, were Consumer Durables up by 3.55%, IT up by 2.32%, TECK up by 1.98%, Healthcare up by 1.97% and FMCG up by 0.12%. On the flip side, Realty down by 2.96%, PSU down by 1.28%, Oil & Gas down by 0.96%, Capital Goods and India Infrastructure Index were down by 0.90% each were top losers on BSE.   (Provisional)

The top gainers on the Sensex were Cipla up by 2.76%, Infosys up by 2.73%, Wipro up by 2.73%, TCS up by 1.98% and Coal India up by 1.78%. On the flip side, BHEL down by 2.87%, ONGC down by 2.74%, Tata Steel down by 2.60%, Hero MotoCorp down by 2.32% and SSLT down by 2.29% were the top losers.  (Provisional)

Meanwhile, finance Minister Arun Jailtley has stated that the government will soon take measures to break the vicious cycle of high inflation and high interest rates impacting Indian economic growth, which stayed below 5 percent for the second year in a row at 4.7 percent during FY14.

Jailtey further said that long inflationary trends have adversely impacted the food and nutritional security of the common man and also sought states’ support in tackling temporary fluctuation in prices. Further, Finance Minister added that prevailing high interest rates to check rising inflation has been impacting the domestic demand. Therefore, the government would like to evolve a mechanism which will address the structural issues and enhance supply. The RBI has raised lending rate three times since September’13 to tame price rise through cooling demand.

Finance Minister further stated that the government aims to create positive action through economic reforms in the forthcoming budget to revive investor sentiment and promote growth. Regarding the GST issue, Finance Minister said that implementation of Goods and Services Tax (GST) has the potential to significantly improve the country’s growth story and the government will soon take measures for early rollout of GST.

India VIX, a gauge for markets short term expectation lost 2.52% at from its previous close of 16.66 on Monday. (Provisional)

The CNX Nifty settled at 7656.4, up by 1.80 points or 0.02% after trading in a range of 7579.3 and 7683.2. 20 stocks advanced against 30 declining one’s on the index.    (Provisional)

The top gainers on Nifty were Infosys up by 3.17%, Tech Mahindra up by 2.72%, Wipro up by 2.69%, CIPLA up by 2.64% and Cairn India up by 2.28%. On the flip side, DLF down by 3.63%, Grasim Industries down by 3.37%, Ambuja Cements down by 3.14%, BHEL down by 3.08% and Tata Steel down by 2.91% were the top losers.

European shares were trading mixed; with Germany’s DAX rising by 0.14%, France’s CAC 40 gaining by 0.12% and United Kingdom’s FTSE 100 declining by 0.46%.

The Asian markets concluded Tuesday’s trade mostly in green,

Asian Indices Last Trade Change in Points Change in %
Shanghai Composite 2052.53 22.03 1.08
Hang Seng 23315.74 198.27 0.86
Jakarta Composite 4946.09 61.01 1.25
KLSE Composite 1876.61 12.92 0.69
Nikkei 225 14994.80 -129.20 -0.85
Straits Times  3293.82 -11.38 -0.34
KOSPI Composite 2011.80 21.76 1.09
Taiwan Weighted 9222.37 59.63 0.65

 

Tags: , , , , , ,

Resuming their northward journey, boisterous benchmarks showcased an enthusiastic performance on Thursday, by rallying a percentage point. Though, domestic bourses made a choppy start and the indices even went on to test psychologically important  24,700 (Sensex) and 7,350 (Nifty) levels, but the key gauges got solid support around those intraday low levels as they convalesced from thereon as investors continued hunt for fundamentally strong stocks. Frontline indices not only ended near their intraday high levels but also recorded their all time closing high, settling comfortably above their crucial 7,450(Nifty) and 25,000 (Sensex) bastions as investors took to hefty across the board buying.

Sentiments got bolstered after the India Meteorological Department (IMD) has forecasted that conditions are favourable for the onset of the southwest monsoon over Kerala and its further advance into some more parts of south Arabian Sea, remaining parts of Maldives-Comorin area, some parts of Tamil Nadu and the Bay of Bengal during the next 48 hours. Meanwhile, Prime Minister, Narendra Modi met the Secretaries of all government departments to outline his agenda of governance and in a positive step he said that the Government’s priority is to revamp the economy and asked the officials to prepare presentations on the contributions their Ministries can make to the revival. In a separate development, industry body Confederation of Indian Industry (CII) has called for a comprehensive review of the new Companies Act 2013 and the rules issued there under.

On the global front, European markets were trading slightly in the red in early deals with investors awaiting the European Central Bank’s policy announcement. The central bank is widely expected to cut all its main interest rates at Thursday’s meeting, including pushing its deposit rate into negative territory for the first time. However, most of the Asian counters ended in the green terrain with Shanghai Composite gaining the most. Moreover, Japanese stocks ended at near three-month highs on Thursday because of a weaker yen,

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. The markets sentiment was also boosted by data showing that foreign funds remained net buyers of Indian stocks on June 4, 2014. Foreign institutional investors (FIIs) bought shares worth a net Rs 192.56 crore on Wednesday, as per provisional data from the stock exchanges.

Meanwhile, cement stocks viz, Andhra Cement, India Cements, Heidelberg Cements and Dalmia Bharat remained on buyers’ radar on price hikes ranging from 3-30 percent across most regions. Additionally, shares in fertilizer companies, Chambal Fertilisers and Chemicals and National Fertilizers were surging on hopes that new government will soon clear its 2013/14 outstanding subsidy payments for the sector. On the flip side, Sugar stocks, which were up on hopes that the Modi-led government would help revive the industry by encouraging ethanol blending in petrol and also hike import duty on the commodity to support local prices, were down on profit-booking.

The NSE’s 50-share broadly followed index Nifty rose by over seventy points and ended comfortably above the psychological 7,450 support level, while Bombay Stock Exchange’s Sensitive Index — Sensex surged by over two hundred and ten points to finish above the psychological 25,000 mark. Broader markets too were trading with traction throughout the trade and ended the session with a gain of over a percentage point. The market breadth remained in favor of advances, as there were 2,153 shares on the gaining side against 869 shares on the losing side while 105 shares remain unchanged.

Finally, the BSE Sensex soared by 213.68 points or 0.86%, to 25019.51, while the CNX Nifty surged by 71.85 points or 0.97%, to 7,474.10.

The BSE Sensex touched a high and a low of 25044.06 and 24644.88, respectively. The BSE Mid cap index was up by 1.01%, while the Small cap index rose by 1.42%.

The top gainers on the Sensex were SSLT up by 6.50%, Hindalco Inds up by 5.54%, Hindustan Unilever up by 4.27%, Tata Power up by 3.64% and Tata Steel up by 3.45%. While Mahindra & Mahindra down by 1.46%, HDFC Bank down by 1.43%, Cipla down by 0.87%, Dr Reddys Lab down by 0.74% and ICICI Bank down by 0.56% were the top losers in the index.

On the BSE Sectoral front, Metal up by 3.33%, Power up by 1.96%, Oil & Gas up by 1.96%, PSU up by 1.55% and FMCG up by 1.49% were the top gainers, while Bankex down by 0.39% was the only loser in the space.

Meanwhile, with an intent of giving bureaucracy a greater role in decision-making, Prime Minister Narendra Modi in three hour long meeting with secretaries of all the government departments collectively, asked them to directly get in touch with him to resolve policy issues and expedite decision-making.

Just to ensure that implementation of decisions and programmes were not stuck in red-tape, PM asked secretaries to call him or e-mail him directly for suggestions or intervention required in resolving issues or expediting decisions making process.

In all, 77 top bureaucrats, including finance secretary Arvind Mayaram, home secretary Anil Goswami, defence secretary Radha Krishna Mathur and foreign secretary Sujatha Singh, were called for the meeting and for the meeting sixteen groups were formed by clubbing related ministries.

While, all finance ministry departments were grouped together, secretaries of energy-related departments, power, coal, oil, mines and atomic energy, were clubbed. Additionally, Agriculture and related departments were put together, with the infrastructure group comprising of railways, telecom, roads, civil aviation, shipping and posts.

Further, notes of finance ministry officials for the meeting with the prime minister included inflation, fiscal consolidation, controlling the current account deficit, clarity on tax administration and disinvestments in non-core sectors like steel and cement.

The CNX Nifty touched a high and low of 7,484.70 and 7,360.50 respectively.

The top gainers of the Nifty were BPCL up by 7.17%, SSLT up by 6.65%, Hindalco Industries up by 6.10%, Hindustan Unilever up by 5.21% and Cairn India up by 4.74%. On the other hand, Mahindra & Mahindra down by 1.42%, HDFC Bank down by 1.22%, IndusInd Bank down by 1.05%, Cipla down by 0.92% and Bank of Baroda down by 0.86% were the top losers.

Most of the European markets were trading in red, Germany’s DAX was down by 0.07% and United Kingdom’s FTSE 100 was down by 0.25%, while France’s CAC 40 was up by 0.08%.

The Asian markets concluded Thursday’s trade mostly in green, with investors keeping an eye on European Central Bank policy decision.

Asian Indices Last Trade Change in Points Change in %
Shanghai Composite 2040.88 16.04 0.79
Hang Seng 23109.66 -42.05 -0.18
Jakarta Composite 4935.56 3.00 0.06
KLSE Composite 1869.00 3.80 0.20
Nikkei 225 15079.37 11.41 0.08
Straits Times  3279.64 -0.53 -0.02
KOSPI Composite 1995.48 -13.08 -0.65
Taiwan Weighted 9140.72 20.76 0.23

Tags: , , , , ,

The Indian markets consolidated in last session, though some late hour selling dragged the markets into red but the trade throughout the day remained mostly range bound. Today, the start is likely to be cautious and traders will be eyeing global developments for any cue. Meanwhile, on domestic front Prime Minister, Narendra Modi met the Secretaries of all government departments to outline his agenda of governance and in a positive step he said that the Government’s priority is to revamp the economy and asked the officials to prepare presentations on the contributions their Ministries can make to the revival. In a separate development, industry body Confederation of Indian Industry (CII) has called for a comprehensive review of the new Companies Act 2013 and the rules issued there under. There will be some buzz in the retail space on reports that India could allow global online retailers to sell their own products as early as next month. The move could allow the government to circumvent political opposition to opening up retail sector for the global players.

The US markets made a modest recovery and S&P 500 managed to reach a new record closing high. Though, the buying interest was somewhat subdued after ADP report showed that the pace of private sector job growth slowed more than expected, but traders got some support with Institute for Supply Management report showing rise in index of activity in the service sector in the month of May. The Asian markets have made a mixed start, though some of the indices are still trading near a seven-month high awaiting a European Central Bank policy decision.

Back home, after scaling fresh closing high levels in the previous session, Indian equity markets re-entered the consolidation mode as benchmarks gyrating in a thin band for the entire trading session, settled flat, albeit with a minor losses amid weak global cues. The key gauges displayed listless performance through the day as the aimless benchmarks appeared exhausted, lacking any significant upside triggers. Though, the psychological 7,400 (Nifty) and 24,800 (Sensex) levels proved as strong supports as the key gauges managed to settle above those levels by the end. Sentiments remained down-beat on report which showed that India has slipped to its lowest position in over a decade in the foreign direct investment confidence index. Traders also remained on sidelines ahead of Finance Minister’s pre-Budget talks with apex industry chambers and trade sector representatives on Friday. However, losses remained capped on report that foreign institutional investors (FIIs) bought shares worth a net Rs 575.09 crore on June 3, 2014, as per provisional data from the stock exchanges. On macro-economic front, showing some signs of recovery and stabilization, the activity in Indian services sector, which represent around 60% of Indian GDP, increased in the month of May on the back of rise in new orders. The HSBC services Purchasing Managers’ Index (PMI), based on the survey of around 350 private service sector companies rose to 50.2 in May from 48.5 in the previous month, above 50 mark that separates growth from contraction. Global cues remained somber with Asian markets ending mostly in the red after two days of healthy gains, while European counterparts made sluggish start. Back home, selling in software and technology counters too dampened the sentiments. Stocks like TCS, Wipro, Infosys, HCL Technologies, Tech Mahindra etc. edged lower after rupee rebounded from its early lows. Additionally, stocks related to tyre industry viz. Ceat India, Dunlop India, JK Tyre and Industries edged higher after the key Tokyo Commodity Exchange rubber contract touched a five-week low, weighed down partly by weak Chinese service sector data. The rubber prices fell approximately 30% in 2014 and hit five-year lows. Finally, the BSE Sensex declined by 52.76 points or 0.21%, to 24805.83, while the CNX Nifty was down by 13.60 points or 0.18%, to 7,402.25.

Tags: , , , , , , , , ,

After scaling a fresh closing high levels in the previous session, Indian equity markets re-entered the consolidation mode as benchmarks gyrating in a thin band for the entire trading session, settled flat, albeit with a minor losses amid weak global cues. The key gauges displayed listless performance through the day as the aimless benchmarks appeared exhausted, lacking any significant upside triggers. Though, the psychological 7,400 (Nifty) and 24,800 (Sensex) levels proved as strong supports as the key gauges managed to settle above those levels by the end. Sentiments remained down-beat on report which showed that India has slipped to its lowest position in over a decade in the foreign direct investment confidence index. Traders also remained on sidelines ahead of Finance Minister’s pre-Budget talks with apex industry chambers and trade sector representatives on Friday.

However, losses remained capped on report that foreign institutional investors (FIIs) bought shares worth a net Rs 575.09 crore on June 3, 2014, as per provisional data from the stock exchanges. On macro-economic front, showing some signs of recovery and stabilization, the activity in Indian services sector, which represent around 60% of Indian GDP, increased in the month of May on the back of rise in new orders. The HSBC services Purchasing Managers’ Index (PMI), based on the survey of around 350 private service sector companies rose to 50.2 in May from 48.5 in the previous month, above 50 mark that separates growth from contraction.

Global cues remained somber with Asian markets ending mostly in the red after two days of healthy gains, while investors also took their lead from Wall Street’s retreat from record highs. Meanwhile, European counterparts made sluggish start on Wednesday with investors awaiting confirmation of new stimulus from the European Central Bank and a crucial U.S. jobs report.

Back home, selling in software and technology counters too dampened the sentiments. Stocks like TCS, Wipro, Infosys, HCL Technologies, Tech Mahindra etc. edged lower after rupee rebounded from its early lows and was trading higher at 59.33 at the time of equity markets closing versus its previous close of 59.38 on Tuesday. On the flip side, shares in insurance companies surged on hopes that the new government may raise foreign direct investment limit in the sector to 49 percent from 26 percent. Additionally, stocks related to tyre industry viz. Ceat India, Dunlop India, JK Tyre and Industries edged higher after the key Tokyo Commodity Exchange rubber contract touched a five-week low, weighed down partly by weak Chinese service sector data. The rubber prices fell approximately 30% in 2014 and hit five-year lows.

The NSE’s 50-share broadly followed index Nifty dropped by just over ten points but managed to hold its psychological 7,400 support level, while Bombay Stock Exchange’s Sensitive Index — Sensex declined by over fifty points to end below its crucial 24,850 mark. The broader markets, however, outperformed benchmarks and ended the session with a gain of around two percentage points. The market breadth remained in favour of advances, as there were 2,127 shares on the gaining side against 921 shares on the losing side while 97 shares remain unchanged.

Finally, the BSE Sensex declined by 52.76 points or 0.21%, to 24805.83, while the CNX Nifty was down by 13.60 points or 0.18%, to 7,402.25.

The BSE Sensex touched a high and a low of 24925.90 and 24773.93, respectively. The BSE Mid cap index was up by 1.85%, while the Small cap index rose by 1.96%.

The top gainers on the Sensex were Hero MotoCorp up by 3.57%, Hindalco Inds up by 3.48%, Hindustan Unilever up by 2.26%, Tata Steel up by 2.06% and Bajaj Auto up by 1.56%. While TCS down by 1.92%, ONGC down by 1.87%, Bharti Airtel down by 1.59%, RIL down by 1.54% and HDFC down by 1.14% were the top losers in the index.

On the BSE Sectoral front, Realty up by 1.55%, Capital Goods up by 1.25%, Metal up by 1.17%, Consumer Durables up by 0.81% and PSU up by 0.72% were the top gainers, while IT down by 1.27%, Oil & Gas down by 1.26%, Teck down by 1.01% and FMCG down by 0.23% were the only losers in the space.

Meanwhile, in order to meet the rising domestic coal requirements, Coal India has planned to form a panel of consultants which would help it in acquiring, developing and operating coal mines overseas.

Coal India is eyeing coal assets abroad to meet the domestic demand. Earlier, Coal Ministry had stated that acquisition of coal mines overseas should be done in an aggressive manner to meet India’s rising energy requirements. Taking forward its plans to acquire overseas mines, CIL had recently invited bids for the third phase of drilling in the African nation. It had earlier invited bids from bankers and interested parties for acquiring assets abroad.

India, despite being world’s third-largest producer of coal and fifth largest in terms of reserves, has failed to keep pace with increasing domestic demand. Indian domestic coal demand is around 35 percent higher than domestic supply, resulting into a high deficit of which a huge part is being met by costly imports from Indonesia, South Africa and Australia. The country had imported a record 171 MT coal last financial year to meet domestic requirements. Meanwhile, to boost the domestic coal production, the government has planned to invite bids from private players to start coal mining in a public-private partnership (PPP) mode in the country, which would also end the monopoly of public sector unit Coal India.

The CNX Nifty touched a high and low of 7,433.30 and 7,391.35 respectively.

The top gainers of the Nifty were NMDC up by 5.03%, IDFC up by 3.97%, Hindalco Industries up by 2.74%, PNB up by 2.68% and Hero MotoCorp up by 2.65%. On the other hand, HCL Technologies down by 2.56%, TCS down by 1.91%, ONGC down by 1.86%, Bharti Airtel down by 1.80% and Kotak Mahindra Bank down by 1.67% were the top losers.

The European markets were trading in red, France’s CAC 40 was down by 0.27%, Germany’s DAX was down by 0.19% and United Kingdom’s FTSE 100 was down by 0.23%.

The Asian markets concluded Wednesday’s trade mostly in red, retreating from a seven-month high.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2024.83

-13.47

-0.66

Hang Seng

23151.71

-139.33

-0.60

Jakarta Composite

4932.56

-9.59

-0.19

KLSE Composite

1865.20

-7.35

-0.39

Nikkei 225

15067.96

33.71

0.22

Straits Times

 3280.17

-16.50

-0.50

KOSPI Composite

Taiwan Weighted

9119.96

-3.50

-0.04

Tags: , , , , , , , ,

Indian bourses continued to trade in red in late morning session as funds and retail investors engaged in reducing positions amid a weak trend in global markets. Profit booking in frontline blue chip stocks after a recent rally dragged the markets lower. However, some support came in from reports that foreign institutional investors (FIIs) bought shares worth a net Rs 575.09 crore on June 3, 2014. FMCG stocks extended their profit taking for the second day in a row on concerns that rising inflation levels would hurt volume growth, while Metal stocks extended their gains for a second straight day as China’s factory sector turned in its best performance in four months in May as export orders improved. In scrip specific development, shares of Wockhardt tumbled after the U.S. Food and Drug Administration found deficiencies in quality, hygiene and personnel training standards at the company’s plant in Chicago. On the other hand, shares of Biocon rallied after it announced a five-year extension of its drug discovery and development collaboration in India between its contract research subsidiary Syngene International and Bristol-Myers Squibb.

The market is likely to remain range bound in the near term as there is not much trigger on the domestic front and traders will keep an eye on Finance Minister’s pre-Budget talks with apex industry chambers and trade sector representatives on Friday. On the global front, most of Asian markets were trading in red as investors await a report on US jobs and a decision from the European Central Bank on monetary policy. Further, the US markets closed slightly lower on Tuesday, pausing after three straight days of gains that sent the S&P 500 and Dow Jones Industrial Average to record levels on Monday. Back home, traders were seen piling up positions in Consumer Durables, Realty and Metal stocks, while selling was witnessed in IT, Teck and FMCG sector stocks. The market breadth on BSE was positive, out of 2295 stocks traded, 1591 stocks advanced, while 610 stocks declined on the BSE.

The BSE Sensex is currently trading at 24836.63 down by 21.96 points or 0.09% after trading in a range of 24925.90 and 24805.17. There were 18 stocks advancing against 12 stocks declining on the index.

The broader indices were trading in green; the BSE Mid cap index was up by 1.24%, while Small cap index up by 1.20%.

The gaining sectoral indices on the BSE were Consumer Durables up by 1.68%, Realty up by 1.06%, Metal up by 1.04%, Capital Goods up by 0.79% and India Infrastructure Index up by 0.79%. While, IT down by 1.44%, Teck down by 1.02%, FMCG down by 0.44% and Oil & Gas down by 0.14% were the losing indices on BSE.

The top gainers on the Sensex were Hindalco up by 2.80%, Tata Steel up by 2.61%, Bajaj Auto up by 2.08%, BHEL up by 1.94% and Tata Motors up by 1.44%. On the flip side, TCS down by 1.90%, Mahindra & Mahindra down by 1.82%, Wipro down by 1.31%, Infosys down by 1.21% and ONGC down by 1.10%.

Meanwhile, Finance Minister Arun Jaitley has described the RBI’s status quo policy as a calibrated approach to maintain a balance between growth and inflation and asserted that the government on its part will address the problem of price rise through improving supplies. The Reserve Bank of India (RBI), in its Second Bi-Monthly Monetary Policy Statement for this financial year, kept the key policy rates unchanged at 8 percent. However, to improve availability of funds, central bank cut the statutory liquidity (SLR) ratio, the amount of deposits that banks need to park in government securities, by 0.5 percent to 22.5 percent.

Finance Minister further added that there should be a balancing act between inflation and growth and the government will soon take measures to contain the rising inflation through improving supplies, particularly in relation to food inflation. Retail inflation inched up to 8.59% in April on y-o-y basis as against 8.31% in March led by a sharp rise in the prices of food articles. Inflation in the food category stood at 9.66 percent in April. The RBI has raised lending rate three times since September’13 in order to tame price rise through cooling demand. Though tight monetary stance helps to crush marginal prices pressure, the apex bank’s move is adversely impacting the country’s economic growth.

Regarding the economic growth, Further Minister stated that fiscal consolidation, restarting the investment cycle and employment generations are the top priority for the government.  India’s economic growth stayed below 5 percent for the second year in a row at 4.7 percent during FY14.

The CNX Nifty is currently trading at 7,413.10 down by 2.75 points or 0.04% after trading in a range of 7,433.30 and 7,399.10. There were 32 stocks advancing against 18 declining on the index.

The top gainers of the Nifty were Hindalco up by 2.84%, NMDC up by 2.71%, PNB up by 2.65%, Tata Steel up by 2.42% and Bank of Baroda up by 2.31%. On the flip side, HCL Tech down by 2.18%, TCS down by 1.95%, M&M down by 1.54%, Infosys down by 1.33% and Wipro down by 1.18% were the major losers on the index.

Most of the Asian equity indices were trading in red; Shanghai Composite dropped by 1.03%, Hang Seng declined 0.61%, Jakarta Composite slipped by 0.33%, KLSE Composite tumbled 0.41%, Straits Times was down by 0.54%. On the flip side, Nikkei 225 soared 0.09% and Taiwan Weighted was up by 0.01%.

Tags: , , , , , , , , , ,

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

Tags: , , , , , , , , ,

Extending their previous session’s jubilation, Indian equity benchmarks ended the Friday’s trade near their intraday high levels with a gain of over a percentage point. There was broad based buying witnessed in the markets and apart from the blue chips, the broader markets too equally participated in the rally. Though, some profit booking was witnessed during the trade amid report that foreign institutional investors (FIIs) sold shares worth a net Rs 294.99 crore on May 22, 2014, as per provisional data from the stock exchanges. But, domestic bourses maintained the steady trend on hopes that a Modi-led disposition would mark a paradigm shift in governance and herald a new era in economic reforms. Meanwhile, industry body Assocham in its action plan for the new government has pitched for liberalisation of ECB norms, GST implementation, incentives for investments and easing of processes for companies planning to set up manufacturing units.

Supportive cues from US markets too provided support to local markets where sentiments remained up-beat on report from the National Association of Realtors showing that existing home sales rose for the first time this year in April. Asian markets too ended mostly in the green with Nikkei, Shanghai, Straits Times and Taiwan gaining up-to half a percent each as investors welcomed signs of a turnaround in the world’s biggest economies. But the European markets, including the FTSE, CAC and DAX, are trading virtually unchanged due to caution ahead of weekend elections in Ukraine and European Union.

Back home, markets changed gear in last leg of trade to end near intraday high after State Bank of India (SBI) moved higher by nearly 10%, its highest level since May 2011, on reporting a better-than-expected net profit of Rs 3,041 for the quarter ended March 31, 2014 (Q4FY14). Other PSU banks like Canara Bank, Andhra Bank, Syndicate Bank, Oriental Bank of Commerce, Allahabad Bank, IDBI Bank and Indian Overseas Bank too edged higher.

Meanwhile, stocks related to power sector too remained on buyers’ radar on the buzz that the incoming government will have a major thrust on the area, while infra and realty stocks witnessed buying on hopes of some recovery of the economy coming out of stagflation type of situation. Additionally, select gold related stocks continued their bull run for second day in a row after RBI permitted exporters, long-term export advance up to a maximum period of 10 years on a satisfactory track record and eased gold import norms.

The NSE’s 50-share broadly followed index Nifty gained by ninety points to end above its psychological 7,350 support level, while Bombay Stock Exchange’s Sensitive Index — Sensex surged by around three hundred and twenty points to end tad below its crucial 24,700 mark. The broader markets too traded jubilantly throughout the session and ended the session with a gain of around two percent. The market breadth remained in favour of advances, as there were 2,203 shares on the gaining side against 833 shares on the losing side while 92 shares remain unchanged.

Finally, the BSE Sensex soared by 318.95 points or 1.31%, to 24693.35, while the CNX Nifty surged by 90.70 points or 1.25%, to 7,367.10.

The BSE Sensex touched a high and a low of 24745.86 and 24470.78, respectively. The BSE Mid cap index was up by 1.76%, while the Small cap index rose by 1.87%.

The top gainers on the Sensex were SBI up by 9.69%, Tata Power up by 6.33%, Maruti Suzuki up by 5.32%, NTPC up by 4.39% and ONGC up by 3.68%. While Hindalco Inds down by 2.03%, HDFC Bank down by 1.63%, Infosys down by 1.31%, ITC down by 0.77% and Hindustan Unilever down by 0.22% were the top losers in the index.

On the BSE Sectoral front, PSU up by 3.87%, Power up by 3.66%, Oil & Gas up by 2.16%, Capital Goods up by 2.15% and Realty up by 2.10% were the top gainers, while Consumer Durables down by 0.82% and FMCG down by 0.47% were the only losers in the space.

Meanwhile, Industry body Assocham has outlined an action plan suggesting measures for new government to boost the economic growth.  The action plan is aimed at achieving economic growth of 9 to 10 percent over the medium term and sustaining the high-growth path.Assocham’s action plan highlighted that the new government must introduce single-window clearance for pending projects, relax FDI limits across key sectors, privatise sick PSUs, divest its holding in top 10-15 PSUs to generate over Rs 1 lakh crore of capital. Further, the industry body has also pitched for GST implementation, liberalisation of ECB norms, incentives for investments, restoration of the SEZ policy to its original form and easing of processes for companies planning to set up manufacturing units.

Emphasizing the need to create an environment for increasing investments, Assocham President Rana Kapoor said that new government should introduce suitable policy framework to improve the business sentiments in the country. Further, a long term approach to fiscal consolidation along with clear policies is urgently needed for addressing structural bottlenecks and high inflation. Rana Kapoor further added that in order to expedite the implementation of big infrastructure projects, new government must accelerate land acquisition and environment clearances process for mega projects by setting up a joint task force comprising central ministries like environment, finance, administrative along with the states ministries. New government must take measures soon to replace existing state and central levies with a uniform tax as implementation of Goods and Services Tax (GST) can boost India’s economy by up to two percentage points.

Currently, Indian economy is struggling with slowdown and the factors like low investments, slow execution of infrastructure projects and prevailing high interest rates in order to combat elevated inflation have been adversely impacting the domestic economy. Indian economy’s growth slowed down to 4.6% during the first three quarter of FY14 and is likely to remain at sub-5% level in FY14.

The CNX Nifty touched a high and low of 7,381.00 and 7,293.90 respectively.

The top gainers of the Nifty were State Bank of India up by 10.28%, Tata Power Company up by 6.99%, Jindal Steel & Power up by 6.39%, IDFC up by 5.70% and Maruti Suzuki India up by 5.53%. On the other hand, Kotak Mahindra Bank down by 1.58%, HDFC Bank down by 1.57%, Hindalco Industries down by 1.48%, ITC down by 1.39% and Infosys down by 1.38% were the top losers.

Most of the European markets were trading in green, France’s CAC 40 was up by 0.02% and Germany’s DAX was up by 0.21%, while United Kingdom’s FTSE 100 was down by 0.29%.

The Asian markets concluded Friday’s traded mostly in green, heading for a four-month high, after data showed US manufacturing expanded and as the yen held yesterday’s losses. Japan’s trade deficit narrowed again last month as a sales tax hike weighed on imports – denting demand for foreign fruit, lobsters and crude oil – while shipments of goods to overseas markets picked up pace. The finance ministry data showed the trade deficit shrank 7.8% year on year in April, with Japan logging a shortfall of 808.9 billion yen ($8 billion) against the year-before deficit of 877.4 billion yen. Industrial production in Taiwan rose more-than-expected last month. Taiwanese Industrial Production rose to a seasonally adjusted annual rate of 4.80%, from 3.05% in the preceding month.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2034.57

13.28

0.66

Hang Seng

22965.86

12.10

0.05

Jakarta Composite

4973.06

3.18

0.06

KLSE Composite

1869.22

-5.90

-0.31

Nikkei 225

14462.17

124.38

0.87

Straits Times

 3278.02

12.36

0.38

KOSPI Composite

2017.17

1.58

0.08

Taiwan Weighted

9008.22

38.59

0.43

 

Tags: , , , , , , ,

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

Tags: , , , , , , , ,

Indian equity benchmarks, recovering entire early losses, staged a smart comeback in the last leg of trade on Thursday and ended the session at their fresh record closing high levels, on hopes of BJP-led NDA winning the general elections. Earlier, key benchmark indices alternately swung between positive and negative terrain as investors remained cautious ahead of final results of elections on May 16, while markets seem to have more or less priced in the exit poll prediction of a majority for the BJP-led National Democratic Alliance (NDA) in the Lok Sabha.

But, volatility ruled the roost in dying hours of trade with the frontline gauges witnessing a sharp jump as sentiments remained up-beat after the annual rate of inflation, based on monthly WPI, easing at 5.20% in month of April, 2014, as compared to 5.70% for the March and 4.77% during the corresponding month of the previous year, as all three major components of the index – food, fuel and manufactured goods – recorded moderation in prices. However, February inflation figures were revised upwards to 5.03% against 4.68% earlier. Some support also came in to the markets after India Meteorological Department (IMD) has predicted that the conditions for the advancement of South west monsoon are favourable and it will be hitting Andamans much earlier than expected.

On the global front, Asian markets reversed most of the early losses and ended mostly in the green. Though, Japanese Nikkei witnessed profit taking while a stronger yen weighed on market sentiment. European shares were trading marginally lower in early deals with investors shrugging off Germany’s robust economic growth during the first quarter.

Back home, buying which emerged in late trade mainly helped the domestic equity markets to re-conquer their crucial 7,100 (Nifty) and 23,900 (Sensex) bastions. Some support came in from currency front, where the rupee firmed up against the dollar and was quoting at Rs 59.30 at the time of equity markets closing as compared to Tuesday’s close of Rs 59.68 on the back of strong inflows in the domestic equity market.

Meanwhile, recovery in banking counter too supported the sentiments, stocks like HDFC Bank, Axis Bank, Kotak Mahindra Bank, Yes Bank etc. edged higher after the RBI panel had recommended a one-licence policy for all banks, irrespective of the ownership pattern. Power stocks too traded with traction as the Centre has announced a nine-member panel, which will identify more blocks, in addition to already selected 54 mines, for sale through competitive bidding to expedite coal auction process. Additionally, tyre stocks too remained on buyers’ radar after Apollo Tyres reported better-than-expected Q4 numbers. The company’s fourth quarter consolidated net profit doubled to Rs 281.6 crore from Rs 141.7 crore in same quarter last year on strong growth in Europe business and strong operational performance.

The NSE’s 50-share broadly followed index Nifty surged by over twenty points to end comfortably above its psychological 7,100 support level, while Bombay Stock Exchange’s Sensitive Index — Sensex surged over ninety points to surpass the psychological 23,900 mark. However, broader markets struggled to get any traction during the session and ended the trade with a cut of around a percent. The market breadth remained in favour of decliners, as there were 1,156 shares on the gaining side against 1,743 shares on the losing side while 136 shares remain unchanged.

Finally, the BSE Sensex gained 90.48 points or 0.38%, to 23905.60, while the CNX Nifty was up by 14.40 points or 0.20%, to 7,123.15.

The BSE Sensex touched a high and a low of 23971.78 and 23742.75, respectively. The BSE Mid cap index was down by 0.83%, while the Small cap index lost 0.86%.

The top gainers on the Sensex were Tata Power up by 3.07%, NTPC up by 2.95%, ONGC up by 2.56%, Gail India up by 2.16% and Hindustan Unilever up by 2.08%. While Bajaj Auto down by 4.28%, Hindalco Inds down by 1.98%, SSLT down by 1.88%, Wipro down by 1.50% and Dr Reddys Lab down by 1.46% were the top losers in the index.

On the BSE Sectoral front, Consumer Durables up by 1.52%, Power up by 0.97%, Oil & Gas up by 0.95%, PSU up by 0.42% and FMCG up by 0.29% were the top gainers, while Realty down by 1.11%, Capital Goods down by 0.90%, Metal down by 0.71%, Teck down by 0.49% and Auto down by 0.46% were the top losers in the space.

Meanwhile, in order to promote the growth and global competitiveness of the IT industry, the National Association of Software and Services Companies (NASSCOM) has prepared a five-point agenda for the new Government formed on May 16. The NASSCOM’ s report suggested five measures including enabling innovation and support entrepreneurship, making the domestic investment easier and simpler, building new markets to promote the growth and global competitiveness of the IT industry, expanding existing markets and focusing on skill development.

The NASSCOM President R Chandrashekhar said that new government can use the strength of the Indian IT industry to achieve the development agenda within the country. Indian IT sector has grown in size and now has a global footprint and there is an opportunity for new government to expand sector’s global footprint, which in turn will also contribute to the domestic transformation and developmental agenda. He added that the new Government needs to ensure that the rules for opening and operating the small business are far simpler than earlier and should take measures for funding the start-ups, and connecting them with academics and research and development.

Information Technology (IT) has emerged as an industry that has not only transformed India’s image on the global platform, but also fuelled economic growth. Present, market size of Indian IT industry stand at around $50 billion and its contribution to Indian GDP has increased from just 1.2 percent in 90’s to around 8 percent in 2013. India is the only country that covers a wide range of segments of this industry such as IT Services, BPM, Engineering & R&D, Internet & Mobility and Software Products. Currently, the US, UK and other European markets contribute to around 90% of the total business of Indian IT sector.

The CNX Nifty touched a high and low of 7,152.55 and 7,082.55 respectively.

The top gainers of the Nifty were ONGC up by 3.36%, Tata Power Company up by 2.65%, GAIL (India) up by 2.59%, Power Grid Corporation of India up by 2.54% and NTPC up by 2.39%. On the other hand, Asian Paints down by 5.73%, Bajaj Auto down by 4.30%, Bank of Baroda down by 3.88%, NMDC down by 3.33% and United Spirits down by 2.43% were the top losers.

Most of the European markets were trading in red, France’s CAC 40 was down by 0.24% and Germany’s DAX was down by 0.04% while, United Kingdom’s FTSE 100 was up by 0.05%.

Asian Indices

Last Trade

Change in Points

Change in %

Shanghai Composite

2024.97

-22.94

-1.12

Hang Seng

22730.86

148.09

0.66

Jakarta Composite

KLSE Composite

1879.83

0.63

0.03

Nikkei 225

14298.21

-107.55

-0.75

Straits Times

 3272.49

13.40

0.41

KOSPI Composite

2010.20

-0.63

-0.03

Taiwan Weighted

8880.65

5.49

0.06

 

Tags: , , , , , , ,
« Previous posts Back to top