Nifty has broken out after consolidating over the last two weeks and may be headed for 8,550.
In Friday’s closing report, we had mentioned that the Indian benchmark will have to push past 8,420 to rally higher. Up to 2pm in the afternoon Monday, the NSE’s CNX Nifty moved in a range of 8,349 and 8,380. After crossing Friday’s closing, it witnessed a strengthened up move. Nifty hit its new lifetime high and closed near to the day’s high.
S&P BSE Sensex opened at 28,019 and moved up to the level of 28,206 after hitting a low of 27,921. Nifty opened at 8,378 and hit a low 8,349 before reaching up to the high of 8,438. Both Sensex, Nifty closed Monday at their new life time high. Sensex closed at 28,178 (up 131 points or 0.47%), while Nifty closed at 8,431 (up 41 points or 0.49%).
NSE recorded a volume of 90.96 crore shares. India VIX rose 3.13% to close at 14.4100.
Prime Minister Narendra Modi, speaking at the G20 summit, called for close global coordination to address the challenges posed by tax avoidance. President Barack Obama announced a $3 billion US contribution to an international fund to help poor countries cope with the effects of climate change.
India’s merchandise exports in October contracted by 5.04% at $26.09 billion from $27.48 billion in the same month last year. Imports, on the other hand, rose by 3.62% reaching $39.45 billion compared to $38.07 billion in October last year. Trade deficit in October rose to $13.35 billion from $10.59 billion last year, according to the data released Monday. In September, it had widened to $14.25 billion. In October, gold imports soared by a whopping 280.39% reaching $4.17 billion as against $1.09 billion.
There are reports that the Reserve Bank of India (RBI) is in talks with the government on increasing curbs on gold imports.
JSW Energy (12.13%) was the top gainer in ‘A’ group on the BSE. It informed BSE that it has agreed to acquire from Jaiprakash Power Ventures Ltd and other shareholders, 100% stake in Himachal Baspa Power Company Ltd for Rs9,700 crore. The board of directors of Jaiprakash Power Ventures has approved the transfer of, the 300 MW Baspa II hydro-electric project and the 1091 MW Karcham Wangtoo hydro-electric project, both located in Himachal Pradesh into a separate company, i.e. the Himachal Baspa Power Co Ltd.
Coming back to stock markets, Rasoya Proteins (19.91%) was the top loser in ‘A’ group on the BSE. The stock hit its 52-week low today. The company posted a weak result on Friday.
State Bank of India (SBI) (up 5.44%) was the top gainer in Sensex 30 pack. The stock hit its 52-week high today. The bank was in news as it had signed a memorandum of understanding with Adani group to provide a loan of up to $1 billion for the development of Carmichael mine in Queensland, which it aims to build by the end of 2017.
ICICI Bank (1.27%) was the top loser in Sensex 30 stock. According to reports, the bank recently raised 600 million yuans from the Chinese debt market (Dim Sum bonds) or a little over $ 95 million, at a coupon of 4%.
US indices closed Friday flat. A report from the US Commerce Department on Friday showed that retail sales in October increased 0.3% after a 0.3% drop in September, as American consumers ate out and shopped for clothes, enjoying a windfall from cheaper gasoline. The US Federal Reserve reports the US industrial production data for October today.
Except for Jakarta Composite (0.09%), rest of the Asian indices, which were trading closed Monday in the negative. Nikkei 225 (2.96%) was the top loser.
Japan's GDP unexpectedly shrank in the third quarter. Japan's real GDP shrank 1.6% on an annualised basis in July-September third quarter as firms cut inventories and held back on capital investment. The figure marked the second quarter of contraction, after the economy shrank 7.3% in the April-June second quarter after the national sales tax ticked up to 8% from 5% on 1 April 2014.
European indices were trading lower while US Futures too were trading in the red.
According to SEBI data, during April-September 2014, offers worth Rs38,729 crore were made to public shareholders by 29 companies
During the six months to September 2014, open offers by listed companies to buy shares from investors tumbled 66.43% to Rs13,000 crore.
According data from market regulator Securities and Exchange Board of India (SEBI), during April to September 2014, offers worth Rs38,729 crore were made to public shareholders. Besides, the number of open offers issued by the firms declined to 29 from 46 for the period under review.
As per the SEBI regulations, pursuant to substantial acquisition of shares or change in control in a listed firm, an acquirer has to make an open offer to their respective public shareholders, so as to give them a fair opportunity to exit the company if they so wish to.
The open offers are made with the objective of change in control of management, consolidation of holdings and substantial acquisition in a company.
For the April-September period this fiscal, the highest number of open offers was made towards change in control of management followed by that for substantial acquisition.
As many as 21 offers worth Rs1,218 crore were made for change in control of management. Seven open offers to the tune of Rs333 crore were for substantial acquisition. One offer worth Rs11,449 crore was made with regard to consolidation of holdings.
In September this year, only two open offers valued at Rs14 crore were made to the investors -- the second lowest this fiscal -- after the four offers worth Rs4 crore in August.
SEBI data is available only till the month of September.
"The two public offers (in September) were made with the objective of change in control of management," the market regulator said.
In terms of value, offers worth Rs12,549 crore were made in June -- the highest amount recorded so far this financial year. Open offers were valued at Rs48 crore in April, Rs254 crore in May and Rs131 crore in July this fiscal.
Financials continue to remain the highest overweight sector for FIIs, while software and energy are the biggest underweight sector, says BofA-ML
Maintaining a bullish stance on Indian equities, foreign investors have increased their exposure in Sensex companies to an all-time high of 27% during the September 2014 quarter.
According to a report from Bank of America Merrill Lynch, strong inflows from foreign institutional investors (FIIs) over the past five years have resulted in all-time high foreign ownership for the Indian markets.
“FII stake in Sensex companies has been rising continuously since 2009,” the global financial services major said in a research note, adding the FII stake stood at an all-time peak of 27% as of 30th September.
FIIs continued to invest in India in the September quarter albeit at a slower pace. Moreover, this was the eighth consecutive quarter of positive inflows from FIIs.
As of June 2014, FIIs collectively held around 22.5% of the market and around 46% of the free float. In comparison, FIIs held around 15% of the total market cap and 36% of free float in March 2009.
A sector-wise analysis shows that financials continue to remain the highest overweight sector for FIIs, while software and energy are the biggest underweight sectors.
“We are positive on energy sector reforms and believe positive progress on it could lead to FII buying in PSU oil companies,” the report added.
Most bought sectors by FIIs were consumer, telecom, software and financials. On the other hand, most sold sectors by FIIs were industrials, cement and metals.