Nifty is unlike to break out soon
The Indian market witnessed a directionless session Friday wherein the indices moved in a range. The benchmark indices opened in the positive and immediately rose to the day’s high. The BSE 30-share Sensex opened at 24,301 and hit a high at 24,354 while the NSE 50-share Nifty opened at 7,255 and rose to the level of 7,273. The benchmarks immediately plunged lower and entered in the negative zone. At around 2.25pm, Sensex and Nifty hit the day’s low at 24,164 and 7,218, respectively. Sensex closed at 24,217 (down 17 points or 0.07%) while Nifty closed at 7,230 (down 6 points or 0.08%). The NSE recorded a volume of 133.60 crore shares. India VIX fell 2.13% to close at 16.3350.
Reserve Bank of India (RBI) governor Raghuram Rajan said on Friday he is planning to join hands with the country's new government to bring down high inflation.
Indian economy grew 4.7% in 2013-14, lower than the advance estimate of 4.9 percent growth put out earlier this year by the Central Statistics Office (CSO). The latest GDP growth estimate of 4.7% is however higher than the 4.5% GDP growth recorded in 2012-13.
According to media reports, the department of industrial policy & promotion (DIPP) has prepared a draft Cabinet note that proposes to allow up to 100% foreign direct investment (FDI) in defence as part of its plan to boost domestic manufacturing. DIPP has proposed three different caps for FDI in defence - 49%, 75% and 100% - which propose to incentivise technology transfer. Currently, only 26% FDI is allowed in defence manufacturing, though the government can clear more foreign investments on a case-to-case basis.
NTPC (4.99%), among the top two gainers in the Sensex 30 pack, is in news as the deadline is nearing for BSES entities to pay their dues to the company. SBI (2.24%) was the top loser in Sensex 30 stocks as banking stocks were down today. Max India posted weak March 2014 quarter result. The board of directors of the company at its meeting has recommended a final dividend of 90%, i.e., Rs. 1.80 for every equity share of Rs2/- each for the financial year 2013-14. But the stock was the top gainer (8.94%) in the ‘A’ group on the BSE.
Jammu & Kashmir Bank was alleged to be hiding stressed assets worth Rs2,500 crore by a local media. However in an interview and chief executive officer, Mushtaq Ahmad has clarified that this is factually incorrect and an exaggerated figure and a mischief being played by someone. He mentioned that the actual stressed assets usually remains in the between Rs500-700 crore. The stock was the top loser (18.42%) in the ‘A’ group of the BSE.
The US economy suffered its first contraction since 2011 last quarter. Gross domestic product fell at a 1% annualized rate revised Commerce Department figures showed in Washington. However, US indices closed in the positive on Thursday.
Except for Hang Seng (0.31%) all the other Asian indices closed in the negative. Jakarta Composite (1.84%) was the top loser.
European indices showed a mixed performance while US Futures were trading marginally lower.