Even if Nifty gives up some gains on Wednesday, it may push higher over the coming days
We had mentioned on Monday that the Indian market will log further gains. The indices continued to make gains on Tuesday with S&P BSE Sensex logging in the highest percentage gain since 6 June 2014, while NSE's CNX Nifty recorded the highest gains since 30 June 2014. After moving in a narrow range up to 2.00pm, both the benchmarks shot up.
BSE's 30-share Sensex opened at 25,704 while the NSE's 50-share Nifty opened at 7,689. The indices hit a low at 25,646 and 7,655. During the last hour of the trading, Sensex hit a high of 25,905 and closed at 25,881 (up 362 points or 1.42%) while Nifty hit a high of 7,736 and closed at 7,727 (up 101 points or 1.33%). NSE recorded a much lower volume of 64.79 crore shares. India VIX fell 3.78% to close at 13.4675.
Except for Consumption (0.01%) all the other indices closed in the green. The top five gainers were CPSE (2.66%), Finance (2.18%), PSE (2.12%), Auto (1.84%) and Energy (1.59%).
Of the 50 stocks on the Nifty, 44 ended in the green. The top five gainers were Tata Motors (5.99%), Gail (5.55%), HDFC (5.30%), ONGC (3.38%) and BPCL (3.15%). The top five losers were Bharti Airtel (1.46%), Tata Power (1.16%), Maruti (0.32%), Hindalco (0.24%) and Hero MotoCorp (0.23%).
Of the 1,596 companies on the NSE, 853 companies closed in the green, 655 companies closed in the red while 88 companies closed flat.
Reserve Bank of India (RBI) Governor Raghuram Rajan said on Monday that India will be tested by capital outflows when interest rates start picking up in industrial countries.
Rainfall forecast for India has been lowered to 87% of the long-period average from 93% earlier due to a slow start to the season, the earth sciences minister said today. Jitendra Singh, Union Minister of State (Independent Charge) for Science & Technology and Earth Sciences, said there was no evidence of a drought this year and that the August-September monsoon rains were seen at 95% of the long-period average.
According to data released by the government, India's industrial production during June was at 3.4% while retail inflation in July based on the combined consumer price index (CPI) for rural and urban India was at 7.96% compared with 7.46% a month ago.
GAIL has bid for licenses to retail CNG and piped cooking gas in 14 cities including Bengaluru and Pune. The stock was the top gainer (6.02%) in the Sensex 30 pack.
Celkon Mobiles has tied up with Bharti Airtel to launch Millennium Dazzle Q44 phone.
Priced at Rs6,449, the phone will come with a free (Airtel) data pack of 500MB on 3G for two months. Bharti Airtel (1.67%) was the top loser in the Sensex 30 stock.
Eicher Motors (7.94%) was the top gainer in ‘A’ group on the BSE. It hit its 52-week high at Rs9,350 on the BSE. It posted good June 2014 quarter result. The net profit for June 2014 quarter is Rs133.24 crore as compared to Rs52.62 crore for the quarter ended June 2013. Sales increased from Rs381.82 crore for June 2013 quarter to Rs746.19 crore for the quarter June 2014.
Bhushan Steel (9.98%) was the top loser in ‘A’ group on the BSE. Today again it hit a new 52-week low on the BSE. It has been among the major losers on the bourses after its vice-chairman and managing director Neeraj Singal was involved in the bribery scandal involving Syndicate Bank. Now the lenders are going to have a meeting with the company on August 18 to decide on the future course of action.
US indices closed Monday in the green.
US President Barack Obama on Monday gave full US support for Iraq's president to form a new government hours after embattled Prime Minister Nouri al-Maliki rejected stepping aside for a successor. Iraq on Monday named Haidar al-Abadi as the new prime minister to end the eight-year rule of Maliki.
Except for Shanghai Composite (0.14%), Straits Times (0.09%) and Taiwan Weighted (0.11%) all the other trading Asian indices closed in the green. Jakarta Composite (0.37%) was the top gainer.
Singapore's gross domestic product rose an annualized 0.1% in the three months through June from the previous quarter, when it climbed a revised 1.8%, the trade ministry said in a statement today.
European indices were trading lower while US Futures were trading marginally higher.
For the uptrend to continue, Nifty has to stay above 7,590
As we had mentioned in Friday closing report that the Indian benchmark may rally on Monday, S&P BSE Sensex and NSE's CNX Nifty opened with a high opening gap. Sensex, the 30-share benchmark, opened with the highest gap up of 148 points since 4 August 2014, while NSE's 50-share index, Nifty, opened with the highest opening gap of 51 points since 26 May 2014.
Sensex opened at 25,477 while Nifty opened at 7,620. Sensex hit the low of 25,437 while Nifty hit the low of 7,599. From this level the indices moved up to the day’s high and closed near it. Sensex reached up to 25,553 and closed at 25,519 (up 190 points or 0.75%) while the Nifty hit a high of 7,636 and closed at 7,626 (up 57 points or 0.76%). The NSE recorded a volume of 58.90 crore shares. India VIX fell 4.24% to close at 13.9975.
Among the other indices on the NSE, the top five gainers were Auto (2.52%), Finance (1.17%), Nifty Midcap 50 (1.10%), Nifty Junior (0.96%) and Realty (0.96%) while the only five losers were Media (0.58%), Energy (0.34%), Pharma (0.19%), CPSE (0.18%) and FMCG (0.18%).
Of the 50 stocks on the Nifty, 28 ended in the green. The top five gainers were M&M (6.15%), Bank of Baroda (4.23%), HDFC (3.72%), Tata Motors (3.30%) and Sesa Sterlite (2.82%). The top five losers were Gail (4.60%), Dr Reddy (2.26%), Jindal Steel (1.63%), Tech Mahindra (1.32%) and NTPC (1.20%).
Of the 1,604 companies on the NSE, 931 companies closed in the green, 607 companies closed in the red while 66 companies closed flat.
The Reserve Bank of India (RBI) said on Sunday its board has approved the transfer of a surplus profit of Rs52,679 crore to the government for the year ended June 2014. This compares with a surplus transfer of Rs33,010 crore last year.
Market regulator SEBI on Sunday approved a long-pending proposal to introduce real estate investment trusts (REIT). The move will give cash-strapped developers easier access to funds.
The government will unveil on Tuesday industrial production data for June 2014 and data on inflation based on the combined consumer price index (CPI) for rural and urban India for July 2014.
Monsoon rainfall between 1 June 2014 and 9 August 2014 was 18% below average, an India Meteorological Department report dated 10 August 2014 showed.
Mahindra & Mahindra (6.45%) was among the top two gainers in the ‘A’ group on the BSE and was the top gainer in Sensex 30 pack. It has posted a net profit of Rs881.78 crore for the quarter ended June 2014 while the same was Rs937.91 crore for the quarter ended June 2013. Sales was at Rs10,261.90 crore for the quarter ended June 2014 while the same was at Rs10,022.52 crore for the quarter ended June 2013. As the results for the quarter ended and year ended March 31, 2014 includes the result of the trucks business transferred from Mahindra Trucks and Buses Limited for the full year ended March 31, 2014 (as sanctioned by Honourable High Court of Bombay), it has mentioned that results of the current quarter are therefore, not strictly comparable to the other quarters presented.
State-run GAIL (4.34%) was the top loser in the Sensex 30 stock. It posted weak June 2014 quarter result. It has a net profit of Rs621.44 crore for the quarter ended June 2014 as compared to Rs808.17 crore for the quarter ended June 2013. Sales was Rs13,372.23 crore and Rs12,899.80 crore for the relevant period.
Aurobindo Pharma (6.94%) was the top gainer in ‘A’ group on the BSE. It recently posted a good June 2014 quarter result. Sales increased from Rs1,611.74 crore for June 2013 to Rs1,951 crore for June 2014, while the net profit for the relevant period increased from Rs143.63 crore to Rs393.40 crore.
Bhushan Steel (9.98%) which was again a major loser today hit its 52-week low today at Rs197.45 on the BSE. It has been in news recently for the bribery scandal involving Syndicate Bank. SBI which has sizeable exposure to the company is in discussion with other banks and lenders to bring in a management agency, which will look at the day-to-day running of the company.
Except for NZSE 50 (0.11%) all the other trading Asian indices closed in the positive. Nikkei 225 (2.38%) was the top gainer.
China's consumer price index rose 2.3% in July from a year earlier, the same pace as in June, data showed on Saturday. Factory-gate prices fell 0.9%, extending the longest stretch of declines since 1999. Japanese stocks jumped after a report that the nation's pension fund freed itself to buy more domestic equities.
European indices were trending higher. US Futures too were trading in the green.