Stocks
BSE Sensex Nifty trying to break out of a narrow trading zone: Wednesday Closing Report

If the Nifty rallies higher, the next target would be 6,050

 
The market ended in the green for the second day on optimism from Indian parliamentarians on the government’s reforms and positive global cues. The market indices are trying to break out of a narrow trading zone. If the Nifty rallies higher, the next target would be 6,050. The National Stock Exchange (NSE) witnessed a volume of 84.35 crore shares and an advance-decline ratio of 1021:708.
 
The market gained in opening trade as the Lok Sabha (Lower House) late Tuesday passed the Banking Laws (Amendment) Bill, 2011, paving the way for overhaul of the banking sector. A positive trend in the Asian markets ahead of the outcome of the Bank of Japan’s two-day policy meeting also supported the gains. Optimism on hopes of a budget deal to avoid higher taxes saw the US markets closing higher on Tuesday.
 
The Nifty opened 20 points higher at 5,917 and the Sensex resumed trade at 19,430, up 65 points. All-round buying in early trade helped the benchmarks hit their intraday highs. At that point, the Nifty stood at 5,939 and the Sensex rose to 19,516.
 
Although profit booking at the highs saw the indices pare part of their gains in subsequent trade, they were still in the green on domestic and global support. The market touched its low in noon trade with the Nifty falling to 5,911 and the Sensex went back to 19,420.
 
The market settled in the green for the second day amid a range-bound session. The Nifty gained 33 points (0.56%) to 5,930 and the Sensex advanced 111 points 0.57%) to settle at 19,476. 
 
Among the broader indices, the BSE Mid-cap index gained 0.55% and the BSE Small-cap index settled 0.55% higher. 
 
The top sectoral gainers were BSE Auto (up 1.84%); BSE Healthcare (up 1.58%); BSE Metal (up 1.49%); BSE IT (up 1.33%) and Oil & Gas (up 1.30%). BSE Capital Goods (down 0.62%); BSE Fast Moving Consumer Goods (down 0.38%) and BSE Consumer Durables (down 0.05%) ended up as losers. 
 
Twenty three of the 30 stocks on the Sensex closed in the positive. The chief gainers were Sun Pharmaceutical Industries (up 3.44%); Tata Motors (up 3.29%); ONGC (up 3.16%); Wipro (up 2.55%) and Jindal Steel & Power (up 2.36%). HDFC (down 1.83%); Larsen & Toubro (down 1.36%); ITC (down 1.18%); ICICI Bank (down 0.89%) and NTPC (down 0.32%) were the main losers on the index.
 
The top two A Group gainers on the BSE were—Adani Power (up 6.54%) and Federal Bank (up 5.94%).
 
The top two A Group losers on the BSE were—Gitanjali Gems (down 2.91%) and NHPC (down 2.04%).
 
The top two B Group gainers on the BSE were—TVS Electronics (up 20%) and Tarapur Transformers (up 19.99%)
The top two B Group losers on the BSE were—Mahanivesh India (down 19.99%) and Niraj Cement (down 19%).
 
Out of the 50 stocks listed on the Nifty, 40 stocks settled in the positive. The major gainers were Sun Pharma (up 4.47%); Asian Paints (up 3.36%); ONGC (up3.22%); Tata Motors (up 3.17%) and Jindal Steel & Power (up 2.75%). The chief losers were HDFC (down 2%); Axis Bank (down 1.47 %); L&T (down 1.45%); ITC (1.43%) and ICICI Bank (down 0.95%).
 
The Asian pack closed mostly higher on hopes that the Japanese central bank will continue with its loose monetary policy and announce new reforms to boost the economy. The US optimism also supported the sentiments.
 
The Hang Seng climbed 0.57%; the KLSE Composite advanced 0.37%; the Nikkei 225 jumped 2.395; the Straits Times added 0.06%; the Seoul Composite gained 0.51% and the Taiwan Weighted settled 0.44% higher. Bucking the trend, the Shanghai Composite lost 0.01% and the Jakarta Composite fell 0.594.
 
At the time of writing, the CAC 40 of France was up 0.45%; the DAX was up0.37% and UK’s FTSE 100 was 0.62% higher. At the same time, the US stock futures were trading with gains, indicating a firm opening for the US markets later in the day.
 
Back home, foreign institutional investors were net buyers of shares totalling 922.37 crore on Tuesday while domestic institutional investors were net sellers of stocks amounting to Rs491.12 crore.
 
Reliance Power said three of its promoters will offload 5.42% stake in the firm in order to comply with the minimum public shareholding norms. Reliance Infrastructure, Reliance Innoventures Pvt Ltd and AAA Project Ventures Pvt Ltd will together sell more than 15.21 crore equity shares, making up about 5.42% stake in the company. Reliance Power declined 0.71% to settle at Rs97.80 on the NSE.
 
Natco Pharma has received approval from the US Food and Drug Administration for its Abbreviated New Drug Application for Lansoprazole Delayed Release Capsules. The prescription drug is indicated for the treatment of gastric (stomach) ulcers. The stock jumped 4.74% to close at Rs491.25 on the NSE.
 
Leading non-banking finance company Shriram City Union Finance has got fair trade regulator CCI's approval for a proposed merger of its two group companies through a multi-stage transaction.
 
As per the proposed transaction, Shriram Enterprise Holdings Pvt Ltd (SEHPL) would be first amalgamated with Shriram Retail Holdings Pvt Ltd (SRHPL) and thereafter the consolidated entity would be merged into Shriram City Union Finance (SCUFL). SCUFL fell 2.24% to close at Rs870 on the NSE.
 

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Credibility of primary markets at stake: SEBI chief

SEBI chief Sinha said credibility of primary markets is at stake as retail investors on many occasions are left clueless about their returns as scores of stocks are trading way below listing price

Mumbai: Market regulator Securities and Exchange Board of India (SEBI) on Wednesday cautioned the credibility of primary markets is at stake as retail investors on many occasions are left clueless about their returns as scores of stocks are trading way below listing price, reports PTI.

 

It also said investment bankers need to introspect their role on the price discovery mechanism for these markets.

 

"The credibility of our markets is at stake. The i-bankers need to introspect whether their behaviour challenges the entire merit-based versus price discovery mechanism or not. We need some amount of sanity in pricing and IPO disclosures," SEBI Chairman UK Sinha told a summit of i-bankers here in west India.

 

Stating that many of the newly-listed stocks are trading below listing price, Sinha said: "There is something wrong if two-thirds of the issues between 2009 and 2012 are trading below market decline levels. Call auction data show that volatility on opening day have reduced considerably.

 

"SEBI has noticed in some IPOs that due diligence wasn't done properly. Assets mentioned were missing or weren't even mentioned," he said.

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COMMENTS

Nilesh KAMERKAR

5 years ago

That is the nature of the beast. . .

There is no free lunch. Those who apply in IPOs need to do with their eyes WIDE open.

Nobody questions the credentials of a third grade company if the price keeps going up after listing.

The odds of making money on listing are not very different from the odds of making money in a casino. The 'players' have to walk in with their eyes open . . . or just walk away.

Remember FaceBook IPO and its aftermath? -

Vaibhav Dhoka

5 years ago

Very few investor invest after reading the details as they are illiterate in terms of financial language.And this lacunae is used to grab in primary market.They go only on sentiments and mouth publicity,and finally looses money.Unless SEBI takes harsh steps small investors are bound to remain away from market.Then there is investor grievance mechanism which disastrously failure on part of SEBI. The same is mutual fund investment,when in IPO market value is low the same is reflected in low NAV of scheme,the issuer may boast of over subscription but ultimate looser is SMALL INVESTOR.

BSE Sensex, Nifty trying to fight off downtrend: Tuesday Closing Report

The market is trying to rise but the trend is still down

The market brushed the status quo maintained by the Reserve Bank of India on the interest rates and closed slightly off the day’s highs on across-the-board buying support. The market is trying to rise but the trend is still down. The benchmarks are doing their best to fight off the downtrend. The National Stock Exchange (NSE) recorded a volume of 85.40 crore shares and advance-decline ratio of 1003:730.

 

The market opened in the green tracking global cues and on hopes that the Reserve Bank of India (RBI), in its mid-quarter monetary policy review later in the morning, will ease rates in an attempt to spur growth. In the global arena, markets in Asia were trading firm on expectations that US policy makers would conclude a budget plan before fresh taxes come into effect early next year. Overnight US stocks settled near the day’s highs on hopes of an answer to the “fiscal cliff”.

 

The Nifty opened trade at 5,874, up 16 points and the Sensex started off 49 points higher at 19,293. Buying interest in auto, capital goods and consumer durables stocks helped the market remain in the positive, but were range-bound till the RBI policy announcement.

 

The central bank’s decision to keep key rates unchanged saw the market sliding into the red. The reversal led the benchmarks to their lows with the Nifty touching 5,823 and the Sensex retracting to 19,149.

 

However, the market bounced back from the lows on buying interest in metal, capital goods consumer durables and power sectors. An uptick in the key European markets in early trade also supported the sentiment in the domestic market.

 

The market continued to trade firm with the benchmarks hitting their high at around 2020pm. At the high the Nifty scaled 5,906 and the Sensex climbed to 19,396.

 

The indices closed off their highs with 12 of the 13 sectoral gauges in the green. The Nifty gained 39 points (0.66%) to 5,897 and the Sensex surged 120 points (0.63%) to finish trade at 19,365.

 

Among the broader indices, the BSE Mid-cap index gained 0.52% and the BSE Small-cap index advanced 0.59%.

 

The top sectoral gainers were BSE Realty (up 2.38%); BSE Metal (up 1.78%); BSE Capital Goods (up 1.50%); BSE TECk (up 1.14%) and BSE Power (up 1.08%). BSE Oil & Gas (down 0.21%) was the lone loser.

 

Twenty three of the 30 stocks on the Sensex closed in the positive. The chief gainers were Bharti Airtel (up 4.23%); BHEL (up 4.14%); Tata Steel (up 3.76%); Hindalco Industries (up 2.66%) and Sun Pharmaceutical Industries (up 2.33%). The chief losers were Maruti Suzuki (down 1.64%); ONGC (down 0.87%); Dr Reddy’s Laboratories (down 0.68%); Bajaj Auto (down 0.45%) and Reliance Industries (down 0.35%).  

 

The top two A Group gainers on the BSE were—Unitech (up 5.75%) and Zee Entertainment Enterprises (up 5.47%).

The top two A Group losers on the BSE were—Jaiprakash Power Ventures (down 6.86%) and Hindustan Zinc (down 2.67%).

 

The top two B Group gainers on the BSE were—Polar Industries (up 19.95%) and Vertex Spinning (up 18.84%).

The top two B Group losers on the BSE were—Mahanivesh India (down 19.99%) and Comfort Intech (down 13.19%).

 

Out of the 50 stocks listed on the Nifty, 37 stocks settled in the positive. The major gainers were BHEL (up 4.39%); Bharti Airtel (up 4.36%); Tata Steel (up 4.12%); Hindalco Ind (down 2.62%) and Jaiprakash Associates (up 2.55%). The key losers were Maruti Suzuki (down 1.57%); Dr Reddy’s (down 0.97%); Ranbaxy Laboratories (down 0.81%); Bajaj Auto (down 0.60%) and RIL (down 0.59%).

 

The Asian pack settled mostly higher following a report that US president Barack Obama made compromises in negotiations for a budget deal. Investors are awaiting the outcome of the Bank of Japan’s policy meeting on Wednesday for fresh stimulus announcements.

 

The Shanghai Composite added 0.10%; the KLSE Composite gained 0.66%; the Nikkei 225 climbed 0.96%; the Seoul Composite advanced 0.51% and the Taiwan Weighted rose 0.16%. On the other hand, the Hang Seng fell 0.08%; the Jakarta Composite declined 0.33% and the Straits Times lost 0.06%.

 

At the time of writing, the key European indices were trading with gains between 0.07% and 0.54% and the US stock futures were in the positive.  

 

Back home, foreign institutional investors were net buyers of shares totalling  Rs886.68 crore on Monday while domestic institutional investors were net sellers of equities amounting to Rs690.32 crore.

 

Healthcare major Apollo Hospitals Enterprise today said it will invest Rs400 crore to set up 10 specialised hospitals in India by 2015 for treatment of heart diseases and cancer. Out of the total, five will be focused on treatment of heart diseases and the other five on cancer treatment. These will be in addition to the group's plans of adding 2,000 beds. The stock added 0.15% to settle at Rs812.80 on the NSE.

 

Industrial solutions provider Honeywell Automation India today said its promoter Honeywell Asia Pacific Inc has sold 6.24% stake in the company for an estimated Rs 130 crore. The stake sale was done to bring down promoters’ holding to 75%, in compliance with SEBI guidelines. Honeywell Automation tanked 6.75% to close at Rs2,590 on the NSE.

 

Pharma major Aurobindo Pharma today said it has received US health regulator’s final approval to market Abacavir Tablets, used in the treatment of Human Immunodeficiency Virus (HIV), in the American market. The annual sale of the product is approximately $88 million. The product has been approved out of Unit III formulations facility in Hyderabad, India, the company said. The stock gained 2.03% to close at Rs190.80 on the NSE.

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