Stocks
Nifty, Sensex to give up some gains – Tuesday closing report

Nifty may dip to around 8,850

 

We had mentioned in last week’s closing report that NSE’s CNX Nifty’s sharp up move may slow down and the index may turn volatile around 8,800. On Tuesday, the positive opening on Nifty was followed by a range bound session up to around 2pm. During this period, the 50-share index moved into negative for few minutes while the S&P BSE Sensex managed to stay above Friday’s close during the entire session. After 2pm, both the benchmarks regained strength and hit a new all-time high.
 
The Sensex opened at 29,452 while Nifty opened at 8,871. Sensex moved from the low of 29,286 to the high of 29,619 and closed at 29,571 (up 292 points or 1.00%). Nifty moved from 8,825 to 8,925 before closing at 8,911 (up 75 points or 0.85%). NSE recorded a volume of 90.68 crore shares. India VIX rose 1.12% to close at 18.0850.
 
On Sunday, India and the US broke the 7-year-old logjam in operationalizing their landmark civil nuclear deal besides deciding to jointly produce military hardware including advanced unmanned aerial vehicles during talks between Prime Minister Narendra Modi and US President Barack Obama.
 
Last week, the Reserve Bank of India (RBI) relaxed rules for companies and banks to restructure and reschedule existing overseas borrowings by permitting an increase in the total cost of external commercial borrowing (ECB). The RBI has also allowed changes in the drawdown and repayment schedules of ECB. However, the easing of rules will not be applicable for foreign currency convertible bonds, the RBI said.
 
There are reports that senior officials from India and the US will meet after the forthcoming budget session to identify and prioritise sectors for investments and technology sharing.
 
Finance Minister Arun Jaitley has said fiscal deficit targets for current year are likely to be met and manufacturing sector is showing turnaround signs.
 
Coming back to stock markets, Jet Airways (14.44%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today. It was in the news recently, as it came out with attractive offers for economy fares on Jet Airways’ domestic network with travel validity from March 1, 2015 to September 30, 2015.
 
Gujarat State Fertilizers & Chemicals (11.78%) was the top loser in ‘A’ group on the BSE.
All the bank stocks in the Sensex 30 pack were among gainers. Axis Bank (4.83%) was the top gainer. Other gainers were ICICI Bank (3.58%), HDFC Bank (2.98%) and SBI (0.75%).
 
Dr Reddy’s Lab (4.01%) was the top loser in Sensex 30 stock. The stock fell ahead of its December 2014 quarter result, when the market is anticipating the company results to lag market expectations.
 
US indices closed Monday in the green. Except for Shanghai Composite (0.89%) and Hang Seng (0.41%) all the other Asian indices closed in the green. Nikkei 225 (1.72%) was the top gainer.
 
There was optimism that the actions of Greece's new government won't force the nation to leave the euro currency bloc.
 
On Tuesday global credit rating agency Moody's Investor Services said Asia will be resilient to global macro-economic challenges in 2015.
 
European indices were trading sharply lower. US Futures too were trading deeply in the red.
 
Standard & Poor's Ratings Services on Monday lowered Russia's long-term foreign currency rating to a junk grade of BB+ from BBB-.
 

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Maruti Suzuki December quarter net profit up 18% to Rs802 crore

Higher volumes, reduced material cost and favourable foreign exchange contributed to the bottomline of Maruti Suzuki during the third quarter that ended in December

 

Maruti Suzuki India Ltd, the country's largest carmaker reported a 17.8% higher net profit during the December quarter on higher volumes and forex benefits.
 
For the quarter to end-December, the carmaker, a unit of Japanese Suzuki Motor Corp, said its net profit rose 17.8% to Rs802.2 crore from Rs681.2 crore, same period last year.
 
“Higher volumes, material cost reduction initiatives and favourable foreign exchange contributed to the bottomline during the quarter,” the company said in a statement.
 
Maruti Suzuki said its net sales during the third quarter stood at Rs12,263.14 crore, up 15.5% as against Rs10,619.68 crore in December 2013 quarter.
 
Volume sales in the quarter were up 12.4% at 3.24 lakh units as compared to 2.88 lakh units in the same period last fiscal, it added.
 
During the December quarter, Maruti Suzuki's domestic sales were at 2.95 lakh units as against 2.68 lakh units while exports stood at 28,709 units as compared to 19,966 units in the year-ago period.
 
At 2.30pm Tuesday, Maruti Suzuki was trading 1% higher at Rs3,645 on the BSE, while the benchmark Sensex was marginally up at 29,388.
 

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Nifty, Sensex upmove may slow down - Weekly closing report

Nifty sharp up move may slow down and the index may turn volatile around 8,800

 

The S&P BSE Sensex closed the week that ended on 23rd January at 29,279 (up 1157 points or 4.11%), while the NSE’s CNX Nifty ended at 8,836 (up 322 points or 3.78%). From here Nifty sharp up move may slow down and the index may turn volatile around 8,800. Last week we mentioned that Nifty will remain bullish as long as it does not end the coming week below 8,200.
 
On Monday, the gap up opening was followed by a volatile session and ended with the Nifty closing near the day’s high. Nifty closed at 8,551 (up 37 points or 0.43%). The highlight of the day was the loss recorded on Shanghai Composite after China's securities regulator last week banned three brokers from opening new retail accounts for three months, after they failed to correct practices. Back home the Union Finance Minister Arun Jaitley assured that the government has no intention to privatise either railways or Coal India.
 
The rally was further extended with the Nifty closing in the positive again on Tuesday which was also its new life time high. Nifty closed at 8,695 (up 145 points or 1.7%). Ratings agency Fitch said the recent interest rate cut by the Reserve Bank of India will have minimal impact.
 
On Wednesday Nifty made a fifth day of positive closing. Nifty closed at 8,730 (up 34 points or 0.39%). SEBI chairman UK Sinha has said the regulator has written to the government asking for access to recovery mechanisms to other investors beyond banks and financial institutions.
 
On Thursday Nifty hit an all-time new high for the third consecutive session and closed in the positive again in spite of giving up all the intra-day gain mid-way. Nifty closed at 8,761 (up 32 points or 0.37%). In the government's Housing for All Mission which proposes to build 2 crore houses across the nation by 2022, prime minister Narendra Modi has directed all concerned departments to immediately finalise the programme and the financing models for alternate sets of housing requirements. Chief Economic Advisor Arvind Subramanian has said the real investment flows should begin picking up from next fiscal.
 
European Central Bank (ECB) unveiled its bond-buying stimulus programme to boost sluggish Eurozone economy. ECB left interest rates unchanged and announced larger-than-expected measures. It plans to buy 60 billion euros worth of assets per month. This move further boosted market sentiments as there is anticipation that inflows from foreign funds into India will rise. Nifty closed at it new life time high at 8,836 (up 74 points or 0.85%).
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 
 

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