Nifty, Sensex may have more steam left but risk of a decline is high: Thursday Closing Report

Contrary to our expectation of a laboured rise, the market indices put on a smart rally today, despite a sharp decline in the US indices. The rally was on a much lower volume though. For a reversal, the Nifty will now have to make a lower high and a lower low

The market closed in the positive, but marginally off the highs, on buying in rate-sensitive stocks. Contrary to our expectation of a laboured rise, the market indices put on a smart rally today, despite a sharp decline in the US indices. The rally was on a much lower volume though. For a reversal, the Nifty will now have to make a lower high and a lower low. The National Stock Exchange (NSE) reported a volume of 59.76 crore shares and advance-decline ratio of 803:521.


The domestic market opened in the negative on subdued global cues. Markets in Asia were in the red in morning trade tracking the US markets which settled lower overnight on concerns about the global economic revival.


The Nifty opened six points down at 5,683 and the Sensex started the day at 18,695, down 36 points from its previous close. The benchmarks touched their lows in initial trade itself with the Nifty falling to 5,682 and the Sensex slipping to 18,692. Banking, consumer durables and auto stocks led the decline in early trade.


However, the market soon recovered from its lows and began its upmove in a short while. The upmove was a struggled one as the indices paused for breath at regular intervals.


Support from banking, auto and capital goods sectors boosted the appetite for riskier assets in noon trade. Material producers like Jindal Steel  & Power, Tata Steel and were down following reports that the Supreme Court has cancelled licences of 49 category C iron ore mines in Bellary, Tumkur and Chitradurga districts of Karnataka.


A positive opening of the key European markets also supported the sentiments back here. The positive outlook continued till the end of the trading day.


The market hit its high towards the end of trade with the Nifty rising to 5,794 and the Sensex touching 19,059. However, a minor bout of profit saw the benchmarks retreating from their highs, albeit closing in the positive.


The Nifty gained 94 points (1.66%) to settle at 5,783 and the Sensex surged 285 points (1.52%) to close above the psychological level of 19,000 at 19,016.



While the broader indices also closed in the green, in line with the gains in the key market indicators, the former lagged behind. The BSE Mid-cap index climbed 0.74% and the BSE Small-cap index gained 0.59%.


Barring the BSE IT index (down 0.31%), all other sectoral gauges settled higher. The top gainers were BSE Consumer Durables (up 2.78%); BSE Capital Goods (up 2.63%); BSE Bankex (up 2.49%); BSE Auto (up 2.26%) and BSE Realty (up 1.86%).


Twenty-six of the 30 stocks on the Sensex closed in the positive. The chief gainers were Bharti Airtel (up 4.65%); Tata Motors (up 3.98%); Larsen & Toubro (up 3.61%); HDFC (up 3.34%) and GAIL India (up 3.20%). The losers were Wipro (down 1.68%); TCS (down 0.58%); Sun Pharmaceutical Industries (down 0.045) and Dr Reddy’s Laboratories (down 0.02%).


The top two A Group gainers on the BSE were—IndusInd Bank (up 7.22%) and Engineers India (up 5.73%).

The top two A Group losers on the BSE were—McLeod Russel (down 6.80%) and CRISIL (down 2.85%).


The top two B Group gainers on the BSE were—Padmalaya Telefilms (up 20%) and Talbros Automotive Components (up 19.97%).

The top two B Group losers on the BSE were—USG Tech Solutions (down 19.94%) and Shiva Global Agro (down 19.86%).


Of the 50 stocks on the Nifty, 38 ended in the green. The key gainers were IndusInd Bank (up 7.71%); IDFC (up 4.91%); Bharti Airtel (up .47%); Tata Motors (up 3.85%) and Axis Bank (up 3.84%). The main losers were NMDC (down 2.48%); HCL Technologies (down 1.97%); TCS (down 0.93%); Dr Reddy’s (down 0.28%) and Cipla (down 0.21%).


Markets in Asia closed lower on a slide in commodity prices, which impacted mining companies in the region. A sell-off in Apple-related stocks on concerns about slowing demand for the iPhone and iPad saw chipmakers suffering losses.


The Shanghai Composite rose 0.17%; the Jakarta Composite gained 0.28% and the Straits Times added 0.15%. On the other hand, the Hang Seng 0.265; the KLSE Composite declined 0.285; the Nikkei 225 dropped 1.22%; the Seoul Composite tanked 1.24% and the Taiwan Weighted settled 0.23% lower.


At the time of writing, the key European markets were up between 0.34% and 0.85% and the US stock futures were in the positive.


Back home, foreign institutional investors were net buyers of shares amounting Rs206.68 crore on Wednesday while domestic institutional investors were net sellers of stocks totalling Rs260.92 crore.


Pharma major Lupin is among the three generic drug companies benefiting from a favourable US court ruling on Bayer’s oral contraceptive product, Yaz. The Mumbai-based drug company said it was seeking approval from the US regulatory authority, the Food and Drug Administration, to sell its generic or chemically similar version of Yaz in the US. Lupin slipped 0.13% to settle at Rs671.50 on the NSE.


Chennai-based Orchid Pharmaceuticals has entered into a partnership with Europe-based venture capital funded Allecra Therapeutics to develop antibiotics to combat multi-drug resistant bacterial infections. Orchid will give Allecra intellectual property related to an antibiotic discovery programme (Orchid has been engaged in pre-clinical trial of this molecule), which will then be pursued through further trials by Allecra, said a press release. Orchid closed gained 1.27% to settle at Rs67.55 on the NSE.


Sugar refiner Shree Renuka Sugars aims to increase the processing of sugar beet, which is used in alcohol making, to 50,000 tonnes in the 2013-14 marketing year starting September, from the existing 10,000 tonnes. The sugar beet plant in Karnataka has a total processing capacity of 3,000 tonnes per day. The juice processed is directly taken to distillery for alcohol production. The stock advanced 1.44% to close at Rs24.60 on the NSE.




4 years ago

It has been told now and then that speculators are running the roost in Stock Market alongwith certain backing, they know the inns and out and further market culture is very hard to predict sometimes it spirals downwards on the back of CYPRUS and now inspite of US market going down it staged smart rally basically due to inside information, which will have to be nipped in the bud if any body wants a balanced and approachable market

CRISIL registers 13% fall in consolidated net profit

Economic pressure and global concerns impacted CRISIL’s net profit. Ratings division sees fall in revenue

CRISIL registered a consolidated income from operations of Rs255 crore for the quarter ended 31 March 2013, as against Rs229.74 crore in the corresponding quarter of the previous year, an increase of 11%. The consolidated profit after tax for the quarter was Rs49.57 crore as against Rs56.98 crore in the year-ago period. In the corresponding quarter of the previous year, there was a onetime revenue impact of Rs7.30 crore on account of certain price renegotiations.

The company’s operations predominantly relate to providing rating, advisory and research services. The standalone revenues from each of these divisions stood at Rs99.40 crore, Rs12.53 crore and Rs142.56 crore for ratings, advisory and research divisions, respectively. For the same period last year, respective divisions recorded Rs101.22 crore, Rs12.71 crore and Rs115.30 crore of revenues.

According to a press statement released by CRISIL, the operating environment in India, the US and Europe, the principal markets for CRISIL, remained challenging during the quarter. “While India witnessed muted economic growth with a weak overall investment climate, there was continued pressure on the global banking industry. Despite the challenging environment, growth in CRISIL Global Research & Analytics (GR&A) business was driven by the acquisition of Coalition and new client additions. In India, revenue growth was driven by SME Ratings and a pick-up in the securitisation transactions towards the end of the quarter,” said Rupa Kudva, managing director, in the press statement.

The board of directors has declared an interim dividend of Rs3 per share on face value of Re1 per equity share for the financial year ended 31 December 2013.

CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services and is owned by Standard & Poor's (S&P) which is part of The McGraw-Hill Companies.


Many feared dead in fertilizer plant blast in Texas

The blast took place last night at the West Fertilizer plant in the town of West, outside Waco, with more than 130 people evacuated from a nearby nursing home, and at least 100 patients admitted to hospitals following the incident

A massive blast ripped through a fertilizer plant in Texas, killing many people and injuring hundreds of others as many buildings were destroyed after the factory exploded in a massive fireball.


The blast took place last night at the West Fertilizer plant in the town of West, outside Waco, with more than 130 people evacuated from a nearby nursing home, and at least 100 patients admitted to hospitals following the incident.”It's like a nuclear bomb went off,” West mayor Tommy Muska said.


Some local media reports put the death toll to about 70.


West emergency services director Dr George Smith said earlier that as many as 60 or 70 people died in the blast, but Department of Public Safety spokesman DL Wilson said during a news conference that the number of dead is unknown.”We do have confirmed fatalities,” Wilson was quoted by a local TV station as saying.


Authorities are going door to door in the area checking on residents. The explosion, started as a structure fire and later was followed by explosion,


The blast knocked out power to a large area surrounding the plant.


Muska told reporters that his city of about 2,800 residents needs your prayers. “We've got a lot of people who are hurt, and there's a lot of people, I'm sure, who aren't gonna be here tomorrow,” Muska said. “We're gonna search for everybody. We're gonna make sure everybody's accounted for. That’s the most important thing right now.”


A member of the city council, Al Vanek, said there is a four-block area around the explosion “that is totally decimated.”


Wilson said the damage was comparable to the destruction caused by the 1995 bomb blast that destroyed the Murrah Federal Building in Oklahoma City.


Muska said that about six fire-fighters were unaccounted for and that 131 people were safely evacuated from a local nursing home, according to Waco Tribune.


On Monday, during the popular Boston Marathon, bomb blasts ripped through a cheering crowd, killed three people and injuring more than 180.


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