Futures and options expiry Thursday will lead to volatile intraday moves
As we had suggested in Tuesday’s closing report the Indian stock market witnessed a sideways move and closed Wednesday flat. The BSE 30-share Sensex opened at 24,592 while the NSE 50-share Nifty opened at 7,325. Sensex moved in the range if 24,489 and 24,643 while the Nifty moved between 7,303 and 7,345. Sensex closed at 24,556 (up 7 points or 0.03%) and the Nifty closed at 7,330 (up 12 points or 0.16%). NSE recorded a volume of 126.63 crore shares. India VIX fell 8.08% to close at 17.5575.
Among other indices on the NSE, the top five gainers were IT (1.49%), Realty (1.30%), MNC (0.74%), Smallcap (0.68%) and Service (0.64%) while the top five loser were Metal (1.41%), PSE (1.21%), CPSE (0.99%), Auto (0.95%) and PSU Bank(0.90%).
Of the 50 stocks on the Nifty, 28 ended in the green. The top five gainers were UltraTech Cement (5.67%), Ambuja Cements (5.49%), Tata Power (4.71%), ACC (4.32%) and HCL Technologies (4.15%). The top five losers were Coal India (3.07%), ONGC (3.00%), Asian Paints (2.86%), M&M (2.71%) and Jindal Steel (2.51%).
Of the 1,591 companies on the NSE, 1,028 companies closed in the green, 517 companies closed in the red while 46 companies closed flat.
Market will face increased volatility with the near month May 2014 futures & options (F&O) expiry on Thursday.
The Reserve Bank of India (RBI) on Tuesday doubled the amount of forward contracts, importers can book, to 50% of their average three years import turnover, or previous year's actual import turnover, whichever is higher. The earlier limit for such contracts was 25%.
Ahead of the results to be given out, Hero MotoCorp (2.08%), the stock was among the top three gainers in the Sensex 30 pack.
S Narsing Rao has stepped down as chairman and managing director of Coal India. Rao will take up a new role as principal secretary to K Chandrasekhar Rao, the chief minister of Telangana — from 2nd June. The stock was the top loser (3.23%) in the Sensex 30 stock.
Power Finance Corp posted good March 2014 quarter results. The board of directors of the company have recommended a final dividend of Re0.20 per share, in addition to already paid interim dividend of Rs8.80 per share, thereby making total dividend of Rs9 per share for the financial year 2013-14. The stock was the top gainer (8.25%) in the ‘A’ group on the BSE.
Although Jet Airways could manage a top line growth, it continues to suffer huge losses as evidenced by poor March quarter results. The stock was the top loser (8.50%) in the ‘A’ group of the BSE.
US indices closed Tuesday in the positive.
The Conference Board's index of US consumer confidence increased to 83 in May from 81.7 a month earlier, the New York-based private research group said, while a Markit Economics preliminary index for services unexpectedly rose to 58.4 this month from 55.
Except for Straits Times (0.07%) all the other Asian indices closed in the positive. Seoul Composite (0.97%) was the top gainer.
Chinese industrial profit increased 10% this year through April from the same period in 2013, a report showed today, compared with 10.1% growth in the three months through March.
European indices were trading in the green. US Futures also were trading higher.