The indices have become overbought on a short-term basis but may head higher
The Indian markets carried forward the positive momentum of Friday and shot up at the open and traded high for the entire trading session on Monday. Ahead of the result of the exit polls today, the market surged anticipating the BJP-led NDA to be able to gain a majority. Narendra Modi, the prime ministerial candidate from the NDA, is perceived as being more business-friendly and decisive by the market players.
The BSE 30-share Sensex opened at 23,031 while the NSE 50-share Nifty opened at 6,863.40. By the end of the session, both the indices hit their days high and closed near to it. In the last hour of the session, Sensex and the Nifty managed to cross the level of 23,500 and 7,000 and stayed above that level until the end of the session. Sensex hit a high of 23,573 and closed at 23,551 (up 557 points or 2.42%) while Nifty hit a high of 7,020 and closed at 7,014 (up 155 points or 2.27%). The NSE recorded a higher volume of 97.68 crore shares. India VIX closed lower at 37.1050 (fell 1.59%).
Except for Pharma (0.89%) all the other indices on the NSE closed in the green. The top five gainers were CPSE (3.98%), PSE (3.25%), Energy (3.05%), Media (3.00%) and Infra (2.95%).
Of the 50 stocks on the Nifty, 43 ended in the green. The top five gainers were Coal India (6.11%), Power Grid (5.29%), Grasim (4.75%), HDFC Bank (4.64%) and Hero MotoCorp (4.14%). The top five losers were United Spirits (2.72%), Sun Pharma (1.46%), Cipla (1.12%), Hindalco (1.01%) and Jindal Steel (0.65%).
Of the 1,578 companies on the NSE, 756 companies closed in the green, 737 companies closed in the red while 85 companies closed flat.
Coal India (up 7.04%) was the top gainer in Sensex 30 pack. The company was in news for its board may consider the issue of awarding contract for coal import in a meeting likely to be held by the month-end.
Cipla (fell 1.26%) was among the top two loser in the Sensex 30 stock. Cipla today said it will invest $1.5 million to acquire 14.6% stake in US-based Chase Pharmaceuticals engaged in developing novel approaches to improve treatments for Alzheimer’s disease.
Torrent Power (up 18.38%) was the top gainer in the ‘A’ group on the BSE. The company has announced that it is planning a re-organisation of power sector operations of Torrent Group. Corporation Bank (down 4.95%) was the biggest lose in the ‘A’ group on the BSE. The bank’s annual result showed fall in the net profit for the financial year ended 2014.
India's merchandise exports rose 5.26% to $25.63 billion in April 2014 over April 2013, data released by the government after trading hours on Friday, 9 May 2014, showed.
Imports dropped 15% at $35.72 billion in April 2014 over April 2013. The trade deficit for April 2014 was estimated at $10.09 billion, which was sharply lower than the trade deficit of $17.67 billion during April 2013.
The government unveils CPI data for April 2014 after trading hours today, 12 May 2014. US indices closed marginally in the green on Friday.
Asian indices had a mixed performance. Shanghai Composite (up 2.08%) was the top gainer. Both Straits Times and Taiwan Weighted fell 0.91% were the top loser.
Japan's current-account surplus narrowed more than forecast in March as a surge in imports before last month's sales-tax increase trimmed gains from overseas investments. The excess of 116.4 billion yen ($1.14 billion) reported today by the Ministry of Finance in Tokyo. A 782.9 billion yen deficit on a seasonally adjusted basis was the largest in comparable data back to at least 1996.
European indices were trading in the green. US indices were trading higher.