Stocks
Nifty, Sensex, Bank Nifty overbought: Tuesday Closing Report
While the market trend is up, there is a chance of a decline after 8 consecutive days of rally
 
We had mentioned Monday that while NSE’s CNX Nifty may give up some gains, the trend is distinctly higher. As expected, most indices were in the green with favourable macroeconomic news in India.
 
 
Arvind Subramanian, Chief Economic Advisor (CEA), said he does not see oil prices going beyond $80 to $85, a price, which will help India manage its macro economy reasonably. India’s current account deficit (CAD) is not likely to worsen in this context.
 
Japanese telecoms giant Softbank has announced plans to invest around $20 billion in solar-energy-power projects in India. Softbank joined forces with India’s Bharti Enterprises and Taiwan’s Foxconn as the Indian government targets a massive expansion in the country’s solar output to 100 gigawatts by 2022 from about 3GW at present.
 
The Indian government on Monday proposed tax benefits for people making payments through credit cards, debits cards or via any other mode of online transaction. The initiative aims at building transaction history of an individual to enable improved credit access and financial inclusion, reduce tax avoidance and stop counterfeiting of currency. This, it was hoped, could give impetus to the banking industry as a whole.
 
In a move to keep a close tab on the quality of product categories that are widely consumed, the Food Safety and Standards Authority of India (FSSAI) has decided to step up quality checks of packaged drinking water, milk and milk products and edible oil. This is in the wake of the government ruling on Nestle Maggi noodles. Manufacturing costs can be expected to rise to maintain higher quality. Nestle India stock closed at Rs6,126.60, down 2.5%.
 
Engineering and construction company Larsen & Toubro (L&T) will list its IT services unit L&T Infotech by year-end. Its shares closed Tuesday at Rs1,765.05, up 1.96%.
 
Shares in Jyoti Ltd, a Vadodara-based electrical equipment company, jumped by its maximum daily limit of 20% to Rs76.20 after two individual shareholders made an open offer to acquire 1.28 crore shares in the company at Rs63 per share. "Lavjibhai Dungarbhai Daliya and Anjani Residency Pvt Ltd have made an open offer to acquire 1.28 crore fully paid-up shares of Rs10 each representing 75% of fully paid-up and voting capital of Jyoti Ltd from equity shareholders of target company," said Inga Capital, the manager of the open offer, in a filing to the BSE. 
 
Shares of Venus Remedies surged nearly 14% today after the company said it would issue shares to promoters on a preferential basis. The stock ended the day 2.80% higher or Rs4 at Rs146.7. Venus Remedies had informed BSE yesterday that a meeting of the Board of Directors of the company will be held on 30 June 2015 to consider and approve the issue of fully convertible warrants/ equity shares to promoters on a preferential basis.
 
Diversified group Hero said it had entered the electronics segment with plans to invest Rs500 crore in the next few years and had acquired majority stake in set-top box maker Mybox Technologies. It announced the formation of a new company, Hero Electronix, which will spearhead the group’s activities in the segment. Suman Kant Munjal, who has been named the chairman of the new company, said Hero Electronix would add associated business lines to its portfolio over the next few years. Hero MotoCorp shares closed at Rs2,523.20, down 2.22%.
 
Among the S&P BSE Sensex stocks, the top gainer was Coal India, which closed at Rs415.15, up 3.85%. The top loser was Infosys, which closed at Rs1,001.15, down 2.27%. 
 
Among BSE-100 stocks, the top gainer was Union Bank of India that closed at Rs159.15, up 5.68%. The top loser was JP Associates was Rs12.50, down 4.58%.
 
Among 50-stock Nifty stocks, Coal India, which closed at Rs414.90, up 3.80% was the top gainer while Hero MotoCorp that closed at Rs2,522.00, down 2.31% was top loser. 
 
Among US indices, NASDAQ Composite closed at 5,153.97, up 0.72%. Dow Jones closed at 18,119.78, up 0.58%.
 
Among Asian indices, Shanghai Composite closed at 4,576.49, up 2.19% after being down sharply during the day and Hang Seng closed at 27,333.46, up 0.93%.
 
Among European indices, FTSE 100 was at 6,841.61, up 0.23%.  
 
DAX was at 11,629.23, up 1.46%. Athex Composite Share Price Index was at 781.56, up 4.44%. 
 
The US index futures were in the green.
 

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Nifty, Sensex, Bank Nifty headed higher: Monday Closing Report
While Nifty may give up some gains, the trend is distinctly higher
 
We had mentioned on Friday that the trend in the Indian stock market is on the upside. With positive news in India and Greece, the trend in Sensex, Nifty and Bank Nifty zoomed in Monday’s trading.
 
 
India Vix closed at 15.49, up 2.67%. NSE turnover was at 83.71 crore. Public sector banks were among the big gainers in today trading.
Finance Minister Arun Jaitley has said the credibility of Indian economy has been partly restored, but cautioned the momentum must be sustained over the next two years to win over and provide comfort to world investors. Jaitley said there is "huge amount of enthusiasm" among investors as they see India picking up again after four-five years of slack.
 
The Greek government submitted proposals to its creditors early Monday aimed at breaking the deadlock over a debt crisis that has imperilled Athens’s continuing membership in the euro currency zone. The proposals came just hours before European Union (EU) leaders were to hold emergency meetings aimed at forcing a breakthrough in the country’s international bailout negotiations. Buying Greece critical time on Monday, the European Central Bank (ECB) for a third time in less than a week increased its emergency funding to Greek lenders to stanch heavy deposit withdrawals, according to a Greek banking official with knowledge of the decision who spoke on the condition of anonymity. Financial markets were upbeat on Monday in the hope of a deal. 
 
According to Moody’s, higher import duty on flat and long steel products will help in reducing pressure on domestic prices, which have been going down due to cheap imports from countries like China. The ratings agency said, "The import duties will ease some of the downward pressure on domestic steel prices from cheaper Chinese steel imports. Indian steel prices have dropped 27% over the past 12 months owing to a 70% increase in cheaper imports, one third of which came from China".
 
Last week in a much needed relief for domestic producers, the Indian government increased basic customs duty (BCD) on certain long and flat steel products by 2.5%. Import duty on flat steel products has been increased to 10% from 7.5%, whereas that on long steel products has been raised to 7.5% from 5%.
 
Larsen & Toubro (L&T) said it has won orders worth Rs1,507 crore across various business verticals. "L&T's Metallurgical and Material Handling (L&T-MMH) business has secured new orders worth Rs1,507 crore across various verticals," the engineering and construction major said in a statement. The company said L&T-MMH has won an EPC order from Emirates Global Aluminium (EMA) for its greenfield alumina refinery development project in Al Taweelah, Abu Dhabi. L&T shares closed at Rs1,731.05 up 0.69%.
 
Pharmaceutical company Wockhardt said it received approval from the US health regulator to market its Oxycodone HCl liquid, used for treating chronic pain, in the American market. The company has received final approval from the US Food and Drug Administration (USFDA) to market 5mg/5ml of Oxycodone HCl liquid, Wockhardt said in a regulatory filing. Wockhardt is launching the product soon and will be amongst the few generic versions of this product in the market, it added. Cheering the news, the share price of the company jumped over 2.5% in the noon trade on Monday. The shares closed at Rs1,436.35 up 2.77%.
 
The top gainer among BSE Sensex scrips was Axis Bank, which closed at Rs572, up 3.62%. The top loser among the 30-stock benchmark was Bharati Airtel, which closed Rs424.20, down 2.25%.
 
GMR Infra was the top gainer among BSE-100 shares that closed Monday at Rs14.51, up 9.43%. The top loser among BSE-100 shares was Bharati Airtel again.
 
The top gainer among Nifty stocks was Punjab National Bank (PNB), which closed at Rs138.40, up 6.05%. The top loser was Bharati Airtel, which closed at Rs423.85, down 2.34%.
 
Among US indices, the NASDAQ Composite closed at 5,117.00, down 0.31%. Dow Jones closed at 18,015.95, down 0.55%.
 
In Asia, Nikkei closed at 20,428.19, up 1.26%. Hang Seng closed at 27,080.85, up 1.20%. 
 
Among European indices, FTSE 100 was at 6,775, up 1% during trading hours.
 
Athex Composite Share Price Index was at 733, up 6.65% in the hope of the deal to help Greece. DAX was up 2.54%, one of the highest this year. US Index futures were deeply in the green.

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Fortnightly Market View: Holding On
Big public investments can lift earnings. Until then, hope for a market decline to buy
 
As happens when the market is overvalued, the indices are struggling to advance. On 5th June, the Nifty closed at 8,114. On 19th June, it closed at 8,225. That was a rise of just 1.37%. It’s been a tough slog for the bulls as they wait patiently for the green shoots of recovery. As mentioned in...
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