Nifty can rise up to 8,600 over the next few days and Bank Nifty to 18,900
We had mentioned on Tuesday that the stock market may be preparing the base for a rally. On Wednesday, the Indian markets put in a strong upmove and went above the last week’s highs.
Indian e-retailer Infibeam filed a draft prospectus for an initial public offerings (IPO) to raise Rs450 crore ($70.69 million), becoming the first of India's e-commerce companies to list its shares on the domestic market. Infibeam's IPO comes at a time of intense competition in India's e-commerce sector, with high cash burn rates at industry leaders Flipkart, Snapdeal and Amazon.com's India unit. Launched in 2007, Infibeam runs the infibeam.com and BuildaBazaar.com websites. Last year, Sony Music bought a 26% stake in Indent, the company's digital entertainment arm. Infibeam will use the IPO proceeds for expanding business, including setting up a cloud data unit and 75 logistics centres. Capital markets regulator SEBI last month relaxed its regulations for companies to list and raise funds through a dedicated platform on domestic stock exchanges rather than going overseas. E-commerce major Snapdeal said Sebi's move to relax regulations relating to listing on domestic stock exchanges will benefit "India-focused companies" like it in the long run.
An anticipated and much-awaited victory at the Supreme Court propelled the stock of Delhi-based city gas distributor Indraprastha Gas (IGL). It shot up more than 16% early in the day, and despite paring gains finished higher by about 9%. The Supreme Court dismissed the special leave petition filed by the downstream regulator Petroleum & Natural Gas Regulatory Board (PNGRB). The petition was against the Delhi High Court order of June 2012, which quashed the regulator’s directions to IGL to slash tariffs and charges. PNGRB had, in April 2012, issued a directive to IGL to slash network tariff and compression charge by about 60% — with retrospective effect from April 2008. The IGL stock had taken a hammering then falling more than 40% over two days. Indraprastha Gas shares closed at Rs455.30, up 8.98% on the BSE.
Tata Sons Chairman Emeritus Ratan Tata has invested an undisclosed amount in his personal capacity in online taxi services company Ola, the Mumbai-based venture announced on Wednesday. The transaction is the latest in a series of investments made by 77 year-old Tata over the course of the last 12 months. He has also backed Snapdeal, India's largest online marketplace, mobile marketplace Paytm, auto portal CarDekho.com, and online furniture and lifestyle retailer Urban Ladder, among others.
Automaker Mahindra & Mahindra reported a 6% decline in total sales at 36,134 vehicles in June. It had sold 38,466 units in the same month last year, M&M said in a statement. In the domestic market, its sales were down 9% to 33,282 units last month as against 36,452 units in the same month of last year. Exports were up 42% at 2,852 vehicles as against 2,014 units in the same period a year ago. Mahindra & Mahindra shares closed at Rs1,290.25, up 0.71%.
Core sector growth revived in May, by clocking its fastest pace in six months, led by a turnaround in electricity, oil refining, steel and cement sectors, bringing some cheer for policymakers who have been battling a sluggish industrial sector.
Government data showed the core sector, which spans electricity, coal, steel, cement, refinery production, natural gas, crude oil and fertilisers, rose an annual 4.4% compared to a contraction of 0.4% in April.
The table below gives the top gainers and losers of major indices:
The table below gives the closing values of world indices:
Among European indices, DAX closed at 11,222.98, up 2.53%. FTSE 100 closed at 6,613.44, up 1.42% and US markets were up about 1% on hopes of a deal on Greece.