Stocks
Gains on Sensex, Nifty may continue for a few more days: Monday Closing Report

The Nifty has to keep itself above 5,815 to sustain the upmove
 

The market settled higher with the gains accruing in the second half of trade on buying in auto, capital goods and technology and consumer durables stocks. However, the Nifty has to keep itself above 5,815 to sustain the upmove. The National Stock Exchange (NSE) reported a lower volume of 48.97 crore shares and advance-decline ratio of 738:631.

 

The local market opened higher on support from its Asian peers, which were in the green in morning trade ahead of the two-day US FOMC meeting that gets underway on Tuesday. The outcome of the Fed meeting is expected to provide some indications on when the central bank will begin tapering its bond-buying programme.

 

The Nifty opened 12 points up at 5,820 and the Sensex resumed trade at 19,250, a gain of 72 points over its previous close.  Nervousness ahead of the Reserve Bank of India’s (RBI) decision on interest rates in the mid-quarter policy meeting saw the benchmarks hovering on both sides of their previous closing levels in morning trade.

 

The market witnessed a sharp fall in late morning trade as the central bank decided to keep policy rates unchanged. The fall led the indices to their intraday lows wherein the Nifty touched 5,770 and the Sensex went back to 19,085.

 

However, the benchmarks soon recovered from the lows on buying support from blue chips from capital goods, consumer durables, healthcare and auto sectors. The market extended its gains in the noon session as the key European indices opened in the positive.

 

Meanwhile, India’s exports contracted by 1.1% year-on-year in May to $24.5 billion. Imports grew by 6.99% to $44.65 billion during the period, leaving a high trade deficit of $20.1 billion. Gold and silver imports, during the month under review, grew by 89% to $8.39 billion.

 

The benchmarks hit their highs towards the close of the trading session. The Nifty rose to 5,855 and the Sensex climbed to 19,344. The market closed near the highs of the day and in the positive for the second day in a row.

 

The Nifty settled 42 points (0.72%) higher at 5,850 and the Sensex gained 148 points (0.77%) to close the session at 19,326.

 

Among the broader indices, the BSE Mid-cap index gained 0.33% and the BSE Small-cap index advanced 0.39%.

 

With the exception of the BSE Metal (down 0.13%), all other sectoral indices ended in the green. The top gainers were BSE Auto (up 1.90%); BSE Capital Goods (up 1.15%); BSE TECk (up 1.09%); BSE Consumer Durables (up 1.02%) and BSE IT (up 0.76%).

 

Out of the 30 stocks on the Sensex, 23 settled higher. The top gainers were Mahindra & Mahindra (up 4.43%); BHEL (up 3.37%); Bharti Airtel (up 2.53%); Bajaj Auto (up 2.50%) and Sun Pharmaceutical Industries (up 2.20%). The main losers were Hindalco Industries (down 1.64%); Dr Reddy’s Laboratories (down 1.38%); GAIL India (down 0.98%); Sterlite Industries (down 0.90%) and NTPC (down 0.86%).

  

The top two A Group gainers on the BSE were—Aurobindo Pharma (up 6.49%) and United Phosphorus (up 5.38%).

The top two A Group losers on the BSE were—Adani Power (down 7.53%) and MMTC (down 4.99%).

 

The top two B Group gainers on the BSE were—Modern Dairies (up 20%) and Panacea Biotech (up 19.99%).

The top two B Group losers on the BSE were—Austin Engineering (down 19.51%) and JRG Securities (down 18.75%).

 

Of the 50 stocks on the Nifty, 36 ended in the in the green. The main gainers were BHEL (up 4.035); M&M (up 3.97%); Bharti Airtel (up 2.26%); Bajaj Auto (up 2.12%) and Reliance Infrastructure (up 1.75%). The key losers were Ranbaxy Laboratories (down 3.57%); Hindalco Ind (down .50%); GAIL India (down 1.35%); NTPC (down 1.32%) and Sesa Goa (down .27%).

 

Markets in Asia settled mostly higher ahead of the outcome of the two-day US Fed meeting and the weakening of the yen, which boosted the outlook for exporters.

 

The Hang Seng climbed 1.22%; the Jakarta Composite rose 0.29%; the KLSE Composite gained 0.57%; the Nikkei 225 surged 2.735; the Straits Times advanced 0.77% and the Taiwan Weighted closed 0.69% higher. On the other hand, the Shanghai Composite fell 0.27% and the Seoul Composite declined 0.32%.

 

At the time of writing, the key European indices were trading with gains between 0.89% and 1.79% and the US stock futures in the positive, indicating a higher opening for US stocks later in the day.

 

Back home, foreign institutional investors were net sellers of equities amounting to Rs305.68 crore on Friday whereas domestic institutional investors were net buyers of shares totalling Rs910.62 crore.

 

Era Infra Engineering today said that it has bagged a contract from Delhi Metro Rail Corporation worth about Rs 384 crore. The project, in a joint venture with Chengdu Ranken, is for construction of five elevated stations including architectural finishing and plumbing works of stations on Alwaye-Petta Line of Kochi Metro Rail Project at Kochi, Kerala by Delhi Metro Rail Corporation. Era Infra declined 2.44% to close at Rs141.65 on the NSE.

 

Venus Remedies, a research-based global pharmaceutical company, has received patent from Mexico for its novel antibiotic product Potentox. Potentox is an antibiotic adjuvant entity (AAE), a drug effective to treat cases of hospital-acquired pneumonia and febrile neutropenia infections, primarily caused by quinolones or aminoglycoside-resistant microbes. The stock gained 1.11% to close at Rs274 on the NSE.

 

Pipavav Defence and Offshore Engineering Company (Pipavav Defence) has bagged a contract to build two specialised offshore vessels for a European client. The contract is valued at Rs1,160 crore, and is to be delivered over the next 12 to 16 months. The stock gained 1.16% to Rs69.65 on the NSE.

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