Nifty can hit 8,130 on Wednesday but the market looks stretched and is due for a pullback soon
We had mentioned in Monday’s closing report that as long as NSE's CNX Nifty stays above 7,985, the index is headed towards 8,100. On Tuesday the benchmark opened in the positive and gradually headed to this level. Its intra-day high was little above this level and it closed marginally below the day’s high.
The S&P BSE Sensex opened at 26,888 while the NSE's 50-stock benchmark opened at 8,039. Hitting the day’s low almost at the same level as the opening, both Sensex and Nifty reached up to the level of 27,083 and 8,102, respectively. Sensex closed at 27,019 (up 152 points or 0.57%) while Nifty closed at 8,083 (up 55 points or 0.69%). NSE recorded a volume of 87.51 crore shares. India VIX fell 0.60% to 13.4475.
Except for Metal (0.77%) and MNC (0.12%) all the other indices on the NSE closed in the green. The top five gainers were Pharma (2.06%), Realty (1.13%), Infra (0.82%), Smallcap (0.81%) and Bank Nifty (0.74%).
Of the 50 stocks on the Nifty, 34 ended in the green. The top five gainers were Cipla (5.38%), Bharti Airtel (4.31%), Grasim (3.82%), Ambuja Cements (3.65%) and ACC (3.63%). The top five losers were Jindal Steel (3.65%), Sesa Sterlite (1.82%), Tata Power (1.16%), Hindustan Unilever (1.02%) and Tata Steel (0.92%).
Of the 1,613 companies on the NSE, 923 companies closed in the green, 627 companies closed in the red while 63 companies closed flat.
One of the outcomes of Indian Prime Minister Narendra Modi's visit to Japan is the intention of that country to invest 3.5 billion yen over next five years in India. Both the prime ministers have decided to set a target of doubling Japan's foreign direct investment (FDI) and the number of Japanese companies in India within five years as an objective to be jointly achieved.
After the market hours on Monday the data released showed that eight core industries output has increased 2.7% in July 2014, showing moderation in growth from 7.3% increase in June 2014. However, the cumulative growth has remained steady at 4.1% in April-July 2014 over April-July 2013. The preliminary data on India's balance of payments (BoP) also showed that foreign direct investment (FDI) in India rose to $8.2 billion in Q1 June 2014, from $6.5 billion in Q1 June 2013.
India's current account deficit (CAD) narrowed sharply to $7.8 billion or 1.7% of GDP in quarter ended June 2014, from $21.8 billion or 4.8% of GDP in June 2013 quarter. On sequential basis, the CAD rose from $1.2 billion or 0.2% of GDP in Q4 March 2014.
The Reserve Bank of India (RBI) on Monday said it has reviewed existing guidelines under Basel III framework with a view to facilitate the raising of non-equity regulatory capital instruments by banks under Basel III framework. Accordingly, certain specific eligibility criteria of such instruments have been amended to incentivize investors and to increase the investor base. This should help the public sector banks.
Oil Minister Dharmendra Pradhan has said there were good signals from the international market and his ministry will take appropriate steps to bring deregulation of diesel prices.
Coromandel International (9.91%) which hit its 52-week high today was the top gainer in ‘A’ group on the BSE. Cipla (5.23%) too hit its 52-week high today. The stock was among the top two gainers in the ‘ A’ group on the BSE and was the top gainer in the Sensex 30 pack. It has launched Fluticasone/Salmeterol combination inhaler, a generic version of GSK's Advair MDI (metered dose inhaler), in Germany and Sweden. It will be in other European countries over the next 12-18 months.
Bhushan Steel (4.98%) was the top loser in ‘A’ group on the BSE. Last week Supreme Court declared allocation of coal blocks as illegal. On Monday, the government requested the apex court to spare 46 of 218 coal blocks allocations that have already begun production or were close to doing so. The court has reportedly asked the government to submit a list of operational mines. The next hearing on the case will be held on 9 September 2014. Jindal Steel & Power (3.48%) was among the top two losers in the ‘A’ group on the BSE while Sesa Sterlite (1.87%) was the top loser in Sensex 30 stock.
US stock markets were closed on Monday for Labour Day holiday. Except for Hang Seng (0.01%), Seoul Composite (0.79%) and Taiwan Weighted (1.19%) all the other Asian indices closed in the green. Shanghai Composite (1.37%) was the top gainer.
European indices were showing mixed performance while US Futures were trading marginally higher.