As long as Nifty is above 7,400, the index may rise
We had mentioned in Friday’s closing report that Nifty, Sensex were in rally mode and that Nifty would rise this week subject to dips. The investors in the Indian equity markets were in a favourable mood in Monday’s trading and the major indices were on an upward trajectory based on macroeconomic cues. The gains were however small, and were less than 0.5% mainly due to poor trading volumes. The trends of the major indices during Monday’s trading are given in the table below:
Positive global indices, coupled with firm crude oil prices and a stable rupee, supported the upward movement of the Indian equity markets. Initially, the bellwether indices opened on a positive note in sync with their Asian peers. Even the firm closing of the domestic and the US markets last week supported the upward trajectory. Moreover, the short-covering rally was supported by firm oil prices and a stable rupee which gained eight paise at the opening, starting the week at 67.55 to a US dollar from its previous close of 67.63. Further, expectations of an additional stimulus from the ECB (European Central Bank) by March this year boosted investors’ confidence. However, gains were capped by profit bookings and caution over the upcoming rate setting meeting of the FOMC (Federal Open Market Committee) scheduled for January 27-28. The FOMC assumes significance as higher interest rates in the US are expected to lead away FPIs (Foreign Portfolio Investors) from emerging markets such as India. In addition, selling pressure was witnessed on account of the F&O (Futures and Options) expiry slated for Thursday. The S&P BSE market breadth favoured the bulls with an advance decline ratio of nearly 2:1. There were 1,673 advances and 900 declines.
Air-conditioning and commercial refrigeration major Blue Star Ltd is warming up to solar power air-conditioners, tying up with the Indian Institute of Technology-Madras (IIT-M), said a senior official on Monday. He also said that the company will be setting up new plants in Sri City in Andhra Pradesh and in Jammu at an outlay of around Rs150 crore with a total production capacity of 0.5 million room air-conditioners per annum. "We are tying up with IIT-M for development of products. We will look at development of solar power air-conditioners with IIT-M," B Thiagarajan, executive director of the company, told reporters adding that “the total outlay will be around Rs150 crore and the capacity of the two plants will be around 0.5 million units per day. The new plants will also make freezers and water coolers." Blue Star shares closed at Rs354.50, up 1.05% on the BSE.
Private sector HDFC Bank Ltd. on Monday said it closed the third quarter with around 20% growth in its net profit. In a statement, the bank said it posted a net profit of Rs3,356.84 crore for the quarter ended December 31, 2015, up from Rs2,794.51 crore posted for the quarter ended December 31, 2014. According to HDFC Bank, the total income for the period under review stood at Rs18,283.31 crore, up from Rs14,930.74 crore for the quarter ended December 31, 2014. As on December 31, 2015, in quantum terms the bank's gross and net non-performing assets went up to Rs4,255.20 crore and Rs1.260.60 crore respectively from Rs3,467.91 crore and Rs903.66 crore as on December 31, 2014. HDFC Bank shares closed at Rs1,039.95, up 0.94% on the BSE.
Chinese stocks closed higher on Monday, with the benchmark Shanghai Composite Index up 0.75%, at 2,938.51 points. The smaller Shenzhen index rose 0.8% to close at 10,192.53 points, Xinhua reported. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 0.43% to close at 2,158.82 points.
Tokyo stocks closed higher on Monday as a recovery in oil prices, hopes for more easing from the Bank of Japan and rally in Chinese shares bolstered investor sentiment. The 225-issue Nikkei Stock Average gained 152.38 points, or 0.90%, from Friday to end the day at 17,110.91, Xinhua reported. The broader Topix index of all First Section issues on the Tokyo Stock Exchange, meanwhile, added 18.44 points, or 1.34%, to finish at 1,392.63. All industry categories on the main section closed in positive territory, with notable advancers comprising food, mining and other financing business-related issues. The day's turnover was 2,412.4 billion yen ($20.31 billion).
The top gainers and top losers of the major indices are given in the table below:
The closing values of the major Asian indices are given in the table below: