A close below 8,480 for Nifty will lead to some correction
The Indian benchmarks had a higher gap up opening on Monday. The index started losing its strength after 11am, and moved lower to hit the day’s low. However, it managed to recover from the low and ended near the day’s high.
The S&P BSE Sensex opened at 28,250 while NSE’s CNX Nifty opened at 8,550. Sensex moved in the range of 28,197 and 28,334 while Nifty moved between 8,532 and 8,571. Sensex closed at 28,262 (up 140 points or 0.50%) while Nifty closed at 8,551 (up 37 points or 0.43%). NSE recorded a volume of 89.85 crore shares. India VIX rose 2.17% to close at 17.6500.
The Indian government on Friday hiked excise duty on petrol and diesel by Rs2 per litre. Following this, Indian Oil Corp, cut the retail selling price of petrol by Rs2.42 a litre at Delhi, including state levies, with corresponding decrease in other states. The price of diesel (retail) was also reduced by Rs2.25 per litre in Delhi, including state levies, with corresponding decrease in other states.
Union Finance Minister Arun Jaitley on Monday assured representatives of various trade unions that the government has no intention to privatise either railways or Coal India. He said that focus of the government is to create more jobs and employment opportunities besides safeguarding existing jobs and give better environment for ease of living for the common man.
The government is considering removing price controls on urea and scrapping an import duty of 5%. India will increase public spending on infrastructure, the finance minister said.
Coming back to stock markets, Rajesh Exports (19.28%) was among the two top gainers in ‘A’ group on the BSE. It was in the news, as it received an export order worth Rs1,780 crore for the supply of designer range of gold and diamond studded jewellery and medallions from UAE-based Jamcelat Jewellery. The order is to be completed by 31 March 2015. Rajesh Exports has announced such orders in the past, which have not materialised.
Mahindra & Mahindra Financial Services (6.75%) was the top loser in ‘A’ group on the BSE. The company posted its December 2014 quarter result, which showed that although the topline improved, its net profit fell as compared to December 2013 quarter.
Wipro (5.26%) was the top gainer in Sensex 30 pack. Although on standalone basis the company bottomline did not improve, its consolidated net revenue and net profit both showed an improvement. Wipro has given a guidance of 1.1%-3.1% on sequential dollar revenue growth in the March quarter.
Hindustan Unilever (5.27%) was the top loser in the Sensex 30 stock. The stock, which hit its new 52-week high today on posting improved result for December 2014 quarter, gave up the gains later.
US indices closed Friday in green. US stock market will remain closed on Monday for Martin Luther King, Jr. Day holiday.
Most of the Asian indices closed in the green. SET Composite index of Thailand (1.16%) was the top gainer.
The big market story was a crash in Shanghai Composite (7.70%), after China's securities regulator last week said 12 brokers violated rules in their margin trading businesses, following investigations into high-risk margin trading. It banned Citic Securities, Haitong Securities and Guotai Junan Securities — among the country's biggest brokerages — from opening new retail accounts for three months, after they failed to correct practices.
European indices were trading in the green.