Monday, October 20, 2014

Sensex soars on BJP win, oil & gas reforms

The key domestic benchmark began the week on a strong note as the Sensex surged by 321 points led by gains in PSU and auto stocks as investors cheered the victory of the BJP party in the recently held assembly elections and the government's decision to deregulate diesel prices over the weekend. The BJP stormed to victory in Haryana while it emerged as the single largest party in the state of Maharashtra. The decision to deregulate diesel prices, a long overdue reform may help boost foreign investor sentiment. Diesel price deregulation means the scrapping of the diesel subsidy which will help stem the fiscal deficit and may lead to a reduction in interest rates by the RBI. Asian stocks closed higher today as robust US housing and consumer confidence data signaled a pickup in the world's biggest economy. China's Shanghai Composite ended higher after a government official said that the country's central bank is planning to inject funds into some banks, a sign that the world's second biggest economy is stepping up stimulus fire to bolster growth. Hang Seng rallied while Japan's Nikkei 225 surged as a weaker yen boosted the appeal of exporter stocks. The BSE SENSEX closed at 26,429.85, up by 321.32 points or by 1.23 per cent, and then NSE Nifty ended at 7,879.4, up by 99.7 points or by 1.28 per cent. The BSE Sensex touched intraday high of 26,517.9 and intraday low of 26,368.94. The NSE Nifty touched intraday high of 7,905.95 and intraday low of 7,856.95. Meanwhile, the BSE MIDCAP closed at 9,376.08, up by 103.59 points or by 1.12 per cent, while the BSE SMLCAP ended at 10,363.45 up by 49.48 points or by 0.48 per cent. On the Sectoral front, PSU and Auto surged 2.64 per cent and 2.17 per cent, respectively. The Market breadth, indicating the overall health of the market, was strong. On BSE out of total shares traded 3086, shares advanced were 1701 while 1265 shares declined and 120 were unchanged. The top gainers of the BSE Sensex pack were Oil And Natural Gas Corporation Ltd. (Rs. 418.85,+5.44%), Hindalco Industries Ltd. (Rs. 146.25,+4.69%), Tata Motors Ltd. (Rs. 494.50,+3.94%), Axis Bank Ltd. (Rs. 417.70,+3.92%), Larsen & Toubro Ltd. (Rs. 1494.50,+2.90%), among others.

Thursday, October 16, 2014

Sensex treads water amid global sell-off

The key domestic benchmarks closed lower for a second day as the Sensex plunged by nearly 350 points amid losses in consumer durables and realty stocks as a global sell-off hit investor sentiment. Markets in Asia and Europe sank after overnight jitters at Wall Street after a surprise drop in retail sales in the US signaled that the world's biggest economy was slowing at a time when Europe is in danger of succumbing to a fresh recession while China's economic growth weakens. Investors awaited the results of assembly polls which are likely to show a victory for the BJP party. The BSE SENSEX closed at 25,999.34, down by 349.99 points or by 1.33 per cent, and the NSE Nifty ended at 7,748.2, down by 115.8 points or by 1.47 per cent. The BSE Sensex touched intraday high of 26,462.08 and intraday low of 25,933.98. The NSE Nifty touched intraday high of 7,893.9 and intraday low of 7,729.65. Meanwhile, the BSE MIDCAP closed at 9,243.95, down by 229.13 points or by 2.42 per cent, while the BSE SMLCAP ended at 10,343.09, down by 288.16 points or by 2.71 per cent. On the Sectoral front, Consumer Durables and Power shed 4.25 per cent and 2.91 per cent, respectively. The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3160, shares advanced were 827 while 2229 shares declined and 104 were unchanged The Market breadth, indicating the overall strength of the market, was weak. On BSE out of total shares traded 3160, shares advanced were 827 while 2229 shares declined and 104 were unchanged. The top losers of the BSE Sensex pack were Hindalco Industries Ltd. (Rs. 142.90,-5.46%), Mahindra & Mahindra Ltd. (Rs. 1218.85,-4.41%), Sesa Sterlite Ltd. (Rs. 239.35,-4.09%), Tata Steel Ltd. (Rs. 439.85,-3.92%), Tata Power Company Ltd. (Rs. 83.85,-3.29%), among others.

Monday, October 13, 2014

Sensex reverses losses, rallies 86 pts

Reversing earlier losses, the key domestic benchmarks closed higher today as the Sensex advanced by 86 points led by gains in metals and banking stocks as investors remained optimistic ahead of CPI data which may signal easing inflation in Asia's third biggest economy, leaving room for policy easing by the RBI, going forward. The CPI data due after market hours may show that consumer inflation may have eased to 7.2 per cent in September 2014 from 7.8 per cent in August, estimates showed. However, caution ahead of Q2 earnings of Sensex heavyweight RIL trimmed gains in the Sensex. Asian stocks ended mixed amid concerns over a slowing global economy, despite speculation of continued low interest rates in the US. China's Shanghai Composite fell as oil companies declined amid a slump in global crude prices. Hang Seng rose after China's exports climbed 15.3 per cent, year on year in September, surpassing estimates of a 12 per cent rise. The BSE SENSEX closed at 26,384.07, up by 86.69 points or by 0.33 per cent, and the NSE Nifty ended at 7,884.25, up by 24.3 points or by 0.31 per cent. The BSE Sensex touched intraday high of 26,443.16 and intraday low of 26,092.69. The NSE Nifty touched intraday high of 7,901.15 and intraday low of 7,796. Meanwhile, the BSE MIDCAP closed at 9,489.76 up by 45.35 points or by 0.48 per cent, while the BSE SMLCAP ended at 10,646.47, up by 35.47 points or by 0.33 per cent. On the Sectoral front, Metal and Banking advanced 1.37 per cent and 1.35 per cent, respectively. The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3183 , shares advanced were 1518 while 1540 shares declined and 125 were unchanged. The top gainers of the BSE Sensex pack were Tata Power Company Ltd. (Rs. 85.10,+2.90%), Tata Steel Ltd. (Rs. 457.80,+2.14%), Coal India Ltd. (Rs. 340.95,+1.91%), Axis Bank Ltd. (Rs. 386.45,+1.90%), Tata Consultancy Services Ltd. (Rs. 2720.35,+1.54%), among others.

Friday, October 10, 2014

Sensex sheds over 300 pts on global concerns

In line with global peers, the key domestic benchmarks ended Friday's trade in negative terrain, retreating from a massive rally the day before, on concerns over slowing global economic growth and its effect on corporate earnings. Further, losses in index heavyweights such as in ICICI Bank, Tata Motors, L&T and State Bank of India shrugged off gains in Infosys, BHEL, Hero MotoCorp and Reliance Industries. Infosys kicked off second quarter earnings season on strong note which saw shares rising over 6 per cent after the company reported a better-than-expected consolidated net profit at Rs 3,096 crore for the second quarter ended September 30, 2014 (Q2). Total consolidated revenues, grew 4.5 per cent to Rs 13,342 crore in the September quarter. The BSE SENSEX closed at 26297.38 down by 339.9 points or by 1.28 per cent and the NSE Nifty ended at 7863.75 down by 96.8 points or by 1.22 per cent. During the day's trading, the BSE Sensex touched intraday high of 26555.92 and intraday low of 26261.61, while the NSE Nifty touched intraday high of 7924.05 and intraday low of 7848.45. On the global front, most of Asian peers closed in red following weak closing of US stocks in overnight trading on worries about slowing global economic growth and its effect on corporate earnings. All three of the Dow Jones Industrial Average, the tech-heavy Nasdaq Composite and benchmark S&P 500 took a nosedive on Thursday, recording the worst selling day in more than five months, settling at the lowest levels since April. Meanwhile, the BSE MIDCAP closed at 9444.41 down by 131.97 points or by 1.38 per cent, while the BSE SMLCAP settled at 10611 down by 120.69 points or by 1.12 per cent. On the Sectoral front, metal and auto index declined as much as 4.11 per cent and 2.78 per cent, respectively. The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3162, shares advanced were 1074 while 1956 shares declined and 132 were unchanged. The top losers of the BSE Sensex pack were Tata Motors Ltd. (Rs. 492.35,-5.31%), Hindalco Industries Ltd. (Rs. 150.20,-4.79%), Sesa Sterlite Ltd. (Rs. 249.75,-4.60%), Tata Steel Ltd. (Rs. 448.20,-4.03%), Mahindra & Mahindra Ltd. (Rs. 1318.40,-3.59%), among others. On the flip side, Infosys Ltd. (Rs. 3888.95,+6.68%), Bharat Heavy Electricals Ltd. (Rs. 220.85,+0.91%), Hero MotoCorp Ltd. (Rs. 2842.20,+0.83%), Reliance Industries Ltd. (Rs. 960.30,+0.59%), Sun Pharmaceutical Industries Ltd. (Rs. 818.80,+0.54%), were among notable gainers on BSE.

Thursday, October 9, 2014

Sensex recovers after 3-day losses

The key domestic benchmarks soared on Thursday as the Sensex reversed a three-day losing streak and surged by nearly 400 points led by a rally in realty and capital goods stocks driven by robust buying by foreign funds amid hopes that the US Federal Reserve will stick to its loose monetary policy for a while yet. Fed policymakers said in the minutes released on Wednesday that a slowdown in the global economy pose threats to US outlook, raising hopes that the Fed may refrain from tightening policy in the near-term. Investors were optimistic ahead of the Q2 earnings season beginning on Friday, amid hopes that an improving economy may have translated into higher profitability margins for India Inc. The IIP data is due on Friday. Most Asian markets rose as the Fed signaled that it may keep interest rates at low levels. China's Shanghai Composite rose as Chinese Premier Li said that the government will use targeted measures to address financing costs and difficulties in a bid to support economic growth. Hang Seng surged while Japan's Nikkei 225 fell as a stronger yen dimmed the appeal of exporter stocks. The BSE SENSEX closed at 26,637.28, up by 390.49 points or by 1.49 per cent, and the NSE Nifty ended at 7,960.55, up by 117.85 points or by 1.5 per cent. The BSE Sensex touched intraday high of 26,688.7 and intraday low of 26,394.21 The NSE Nifty touched intraday high of 7,972.35 and intraday low of 7,886.5. Meanwhile, the BSE MIDCAP closed at 9,576.38, up by 172.55 points or by 1.83 per cent, while the BSE SMLCAP ended at 10,731.69, up by 167.55 points or by 1.59 per cent. On the Sectoral front, Capital goods and realty advanced 3.01 per cent and 2.61 per cent, respectively. The Market breadth, indicating the overall health of the market, was strong. On BSE out of total shares traded 3175, shares advanced were 2092 while 976 shares declined and 107 were unchanged. The top gainers of the BSE Sensex pack were Bharat Heavy Electricals Ltd. (Rs. 218.85,+8.37%), Hindalco Industries Ltd. (Rs. 157.75,+6.01%), State Bank of India (Rs. 2480.25,+2.84%), Housing Development Finance Corporation Ltd. (Rs. 1040.60,+2.68%), ICICI Bank Ltd. (Rs. 1487.90,+2.64%), among others.

Wednesday, October 8, 2014

Sensex extends losing streak amid global sell-off

The key domestic benchmarks closed lower today as the Sensex, which retreated for the third straight session, shed 25 points led by losses in IT and healthcare stocks tracking a sell-off in markets across, Asia, Europe and the US as a slowdown in global growth curbed risk taking appetite. The IMF slashed its growth forecast for the world economy to 3.8 per cent next year from 4 per cent, warning over the impact of heightened geopolitical tensions and overheated stock markets. Further, German industrial output fell the most in more than five years, down 4 per cent in August 2014, signaling a deepening gloom in Europe's biggest economy. Investors were also nervous ahead of the start of the corporate earnings season on Friday when IT bell weather Infosys will announce its Q2 results. However, an upgrade in India's economic outlook by the IMF which revised upwards its growth estimate for the economy to 5.6 per cent in 2014-15 from 5.4 per cent projected earlier curbed losses in the Sensex.China's Shanghai Composite rose after policymakers eased property curbs while Hang Seng fell while Japan's Nikkei 225 tumbled as a stronger yen dimmed the appeal of exporter stocks The BSE SENSEX closed at 26,246.79, down by 25.18 points or by 0.1 per cent, and the NSE Nifty ended at 7,842.7, down by 9.7 points or by 0.12 per cent. The BSE Sensex touched intraday high of 26,338.31 and intraday low of 26,150.09 The NSE Nifty touched intraday high of 7,869.9 and intraday low of 7,815.75. Meanwhile, the BSE MIDCAP closed at 9,403.83, down by 21.56 points or by 0.23 per cent, while the BSE SMLCAP ended at 10,564.14, up by 6.18 points or by 0.06 per cent. On the Sectoral front, IT and Healthcare shed 3.44 per cent and 3.27 per cent, respectively. The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3175, shares advanced were 1416 while 1624 shares declined and 135 were unchanged. The top losers of the BSE Sensex pack were Infosys Ltd. (Rs. 3650.20,-4.70%), Dr. Reddy's Laboratories Ltd. (Rs. 2963.65,-4.37%), Sun Pharmaceutical Industries Ltd. (Rs. 800.75,-4.31%), Wipro Ltd. (Rs. 592.95,-4.03%), Cipla Ltd. (Rs. 585.30,-2.51%), among others.

Tuesday, October 7, 2014

Markets end on a bearish note

After a three-day trading holiday, markets ended on a bearish note as the Sensex tumbled by more than 290 points dragged down by losses in metals and healthcare stocks as investors stuck to a cautious approach ahead of the Q2 earnings season which may signal the strength in Asia's third biggest economy. IT bellwether Infosys will kick-off the July-September corporate earnings season as it will unveil its Q2 results on Friday. Investors will also be eyeing the August IIP data this week. Fears of a quicker than expected US monetary tightening after upbeat US September jobs data also caused mayhem at Dalal Street as emerging markets braced for weaker foreign fund inflows. Investors cast aside robust India services PMI data which showed acceleration in the country's non-manufacturing sector. The gauge measuring services in India climbed to 51.6 in September from 50.6 in the previous month. On the Asian front, markets in China remained closed due to national holidays while Hang Seng rose as protestors and officials agreed on formal talks, easing tensions. Japan's Nikkei 225 fell as a stronger yen dimmed the appeal of exporter stocks after the Bank of Japan decided against boosting stimulus. The BSE SENSEX closed at 26,271.97, down by 296.02 points or by 1.11 per cent, and the NSE Nifty ended at 7,852.4, down by 93.15 points or by 1.17 per cent. The BSE Sensex touched intraday high of 26,570.38 and intraday low of 26,250.24 The NSE Nifty touched intraday high of 7,943.05 and intraday low of 7,842.7. Meanwhile, the BSE MIDCAP closed at 9,425.39, down by 86.01 points or by 0.9 per cent, while the BSE SMLCAP ended at 10,557.96, down by 83.86 points or by 0.79 per cent. On the Sectoral front, Metal and Healthcare shed 2.65 per cent and 1.85 per cent, respectively. The Market breadth, indicating the overall health of the market, was weak. On BSE out of total shares traded 3139, shares advanced were 1181 while 1830 shares declined and 128 were unchanged. The top losers of the BSE Sensex pack were Hindalco Industries Ltd. (Rs. 148.40,-4.35%), Sesa Sterlite Ltd. (Rs. 258.95,-4.32%), Cipla Ltd. (Rs. 600.35,-3.67%), Dr. Reddy's Laboratories Ltd. (Rs. 3098.95,-3.18%), Housing Development Finance Corporation Ltd. (Rs. 1017.65,-3.11%), among others.