Nifty’s uptrend is still on the cards as long as it does not close below 5,905
The market managed to settle marginally in the green as the benchmarks pared early gains on nervousness ahead of the Union Budget, which is to be presented on 28th February. Nifty’s uptrend is still on the cards as long as it does not close below 5,905. The National Stock Exchange (NSE) reported a volume of 66.77 crore shares and advance-decline ratio of 779:691.
The Indian market opened in the positive, tracking supportive global cues. Markets in the US settled higher on Tuesday as merger deals in the US have $158 billion in 2013 so far, twice the amount seen in the same period last year. The Asian pack was mostly higher in morning trade as global optimism improved investor sentiment.
The Nifty opened 26 points higher at 5,966 and the Sensex started off at 19,718, up 82 points over its previous close. The market hit its intraday high in initial trade itself with the Nifty going up to 5,971 and the Sensex rising to 19,742.
However, profit booking after two days of gains saw the indices coming off the highs in subsequent trade. The benchmarks dipped to their lows in noon trade on selling pressure from consumer durables, metals, fast moving goods and banking stocks. At the lows the Nifty touched 5,938 and the Sensex retracted to 19,620.
The Budget session of the Indian Parliament is set to begin tomorrow. The Railway Budget will be presented on 26th February, the Economic Survey of India on 27th February and the Union Budget for 2013-14 will be announced on 28 February 2013.
Select buying in oil & gas, realty and IT stocks helped the market recover from the lows. But volatility kept a cap on the gains with the indices hovering near their previous closing levels.
The market settled flat with a positive bias as nervousness set in ahead of the Union Budget, which is to be tabled next week. The Nifty added three points (0.06%) to 5,943 and the Sensex inched seven points (0.04%) higher to settle at 19,643.
The broader indices were mixed today. The BSE Mid-cap index fell 0.17% and BSE Small-cap index gained 0.36%.
The sectoral gainers were BSE Oil & Gas (up 1.70%); BSE Realty (up 0.77%); BSE IT (up 0.60%) and BSE TECk (up 0.29%). The top losers were BSE Consumer Durables (down 1.37%); BSE Metal (down 0.61%); BSE Capital Goods, BSE Fast Moving Consumer Goods (down 0.47%) and BSE Bankex (down 0.38%).
Eleven of the 30 stocks on the Sensex closed in the positive. The chief gainers were Reliance Industries (up 3.13%); Sun Pharmaceutical Industries (up 1.37%); Hero MotoCorp (up 1.26%); Coal India (up 1.12%) and GAIL India (up 0.99%). Tata Steel (down 1.75%); Jindal Steel & Power (down 1.47%); Cipla (down 1.32%); Bharti Airtel (down 1.04%) and State Bank of India (down 0.98%) were the main losers.
The top two A Group gainers on the BSE were—Bajaj Finserv (up 6.65%) and Oracle Financial Services Software (up 4.49%).
The top two A Group losers on the BSE were— Jaiprakash Power Ventures (down 6.39%) and Unitech (down 2.75%).
The top two B Group gainers on the BSE were—7Seas Technologies (up 20%) and Maharashtra Scooters (up 17.33%).
The top two B Group losers on the BSE were—LGB Forge (down 19.90%) and Venus Power Ventures India (down 19.98%).
Out of the 50 stocks listed on the Nifty, 20 stocks settled in the positive. The major gainers were DLF (up 3.57%); Ambuja Cements (up 3.46%); BPCL (up 3.27%); RIL (up 3.19%) and HCL Technologies (up 2.48%). The key losers were Tata Steel (down 2.13%); IDFC (down 1.90%); JSPL (down 1.76%); Bharti Airtel (down 1.40%) and Cipla (down 1.34%).
Markets in Asia closed mostly in the positive, on signs of an improvement in the global economic outlook. Bank of Korea Governor Kim Choong Soo said that optimism in the global economy would help the export-driven nation exceed its growth forecast this year.
The Shanghai Composite advanced 0.60%; the Hang Seng climbed 0.71%; the Jakarta Composite gained 0.70%; the Nikkei 225 advanced 0.40%; the Seoul Composite surged 1.95% and the Taiwan Weighted settled 0.86% higher. Bucking the trend, the KLSE Composite lost 0.11%.
At the time of writing, the key European indices were marginally in the positive and the US stock futures were trading higher.
Back home, foreign institutional investors were net sellers of stocks totalling Rs181.57 crore on Tuesday. On the other hand, domestic institutional investors were net buyers of shares aggregating Rs24.68 crore.
Government-owned exploration and refining major Oil and Natural Gas Corporation (ONGC) is in talks to buy Videocon's 10% stake in a giant gas field off Mozambique. ONGC Videsh, the overseas arm of the state explorer, and Oil India (OIL) are together negotiating for the stake for which Videocon is reportedly seeking at least $3 billion. Videocon closed 0.83% lower at Rs191.60 on the NSE.
Domestic tractor major Escorts had announced a partnership with Italian company BCS SpA to distribute and sell the speciality Ferrari brand of tractors in India. The first product being launched under the partnership is a 26 HP model that has all four equal sized wheels, an all-time 4-wheel drive and oscillating chassis system suited for use in vineyards and orchards in India. The stock gained 0.78% to close at Rs65 on the NSE.
State-run Power Finance Corporation has launched tax free bonds issue worth Rs100 crore, which would be utilised for lending purposes, debt servicing and working capital requirements. The issue, which opened on Monday, has an option to retain over-subscription up to the residual shelf limit of Rs3,890.25 crore. The stock closed 1.61% down at Rs214.55 on the NSE.
AirAsia said Indian aviation has huge long-term growth potential and is expected to produce tremendous upside for first movers
AirAsia Bhd, through its investment arm, AirAsia Investment (AAIL), has applied to India’s Foreign Investment Promotion Board (FIPB) for a proposed joint venture with Tata Sons to set up a new airline.
In a press release today, Air Asia said AAIL is seeking approval to invest 49% in a new airline to be known as AirAsia India.
“This move comes amidst the backdrop of the September 2012 decision by the Government of India to open up the aviation sector to foreign direct investment from foreign carriers,” said AirAsia.
AirAsia said Indian aviation has huge long-term growth potential and is expected to produce tremendous upside for first movers.
“We have carefully evaluated developments in India over the last few years and strongly believe that the current environment is perfect to introduce AirAsia’s low fares which stimulate travel and grow the market,” said AirAsia’s group CEO Tan Sri Tony Fernandes.
The bank said it will issue an “ICICI Bank Platinum Visa Credit Card” to the holders of ICICI-Kingfisher card without any annual fees from 15th March onwards with same interest rate and credit limit as that on the existing card
Leading private sector lender ICICI Bank has decided to discontinue its co-branded credit card alliance with Kingfisher Airlines in the wake of continued grounding of the beleaguered air carrier.
“ICICI Bank and Kingfisher Airlines’ co-brand credit card programme has been discontinued due to discontinuation of Kingfisher Airlines services,” the bank said in a communication to its customers.
“As a result, the ICICI Bank Kingfisher Airlines Credit Card will be valid till 31 March 2013,” it said, while asking the card users to opt for another credit card from the bank.
The bank further said it will issue an “ICICI Bank Platinum Visa Credit Card” to the holders of ICICI-Kingfisher card without any annual fees from 15th March onwards with same interest rate and credit limit as that on the existing card.
The customers would, however, be free to opt for any other card available with the bank as per their requirements.
ICICI Bank used to be a major lender for the ailing airline, but later sold off its entire Kingfisher debt of Rs430 crore loans to a debt fund managed by SREI Infra Finance last July.
Mired in a major crisis involving huge debts of over Rs7,500 crore and non-payment of staff salaries, Kingfisher Airlines had to ground its services last year and the carrier is still struggling to revive its operations.
The airline has never posted a full-year profit and it has accumulated losses of about Rs 8,000 crore.
A host of lenders, including public sector giant State Bank of India (SBI), recently decided to start the process of recalling their loans to Kingfisher after months of discussions with the airline management for recovery of their debt and revival of the carrier's flight operations failed to yield desired results.