Only a close below any previous day’s low on the Nifty would be the first sign of a reversal
Hopes of a rate cut by the RBI in its annual policy announcement tomorrow saw all-round buying, which resulted in the market closing near its three-month high. Only a close below any previous day’s low on the Nifty would be the first sign of a reversal. The National Stock Exchange (NSE) reported a volume of 61.89 crore shares and advance-decline ratio of 781:540.
The Indian market opened weak tracking its Asian peers which were trading lower in morning trade following reports that the HSBC Purchasing Managers’ Index (PMI) dropped to 50.4 in April from March’s 51.6 reading. The data follows Wednesday’s official Chinese manufacturing data, which painted a similar picture of a fragile economic recovery.
The Nifty opened 19 points lower at 5,911 and the Sensex resumed trade at 19,459, a cut of 45 points from its previous close. The market brushed aside the initial hiccups as resumption of buying activity in IT, oil & gas, banking, healthcare and metal sectors saw the indices start on a northward journey.
Across-the-board buying led the indices higher as trade progressed with IT and technology sectors leading the lot. The benchmarks hit their highs at around 1.30pm with the Nifty touching 6,019 and the Sensex climbing to 19,792. The Nifty crossed the 6,000 level mark for the first time since 4th February.
The market was seen moving sideways after hitting its high as cautiousness prevailed a day ahead of the announcement of the annual monetary policy by the Reserve Bank of India.
The market pared some of its gains but settled higher for the third day in a row. At the close the Nifty settled 69 points (1.17%) higher at 5,999 and the Sensex closed the day at 19,736, a jump of 232 points (1.19%) over its previous close.
Among the broader indices, the BSE Mid-cap index advanced 0.77% and the BSE Small-cap index gained 0.57%.
All sectoral indices settled in the green today. The top gainers were BSE IT (up 2.55%); BSE TECk (up 2.07%); BSE Capital Goods (up 1.59%); BSE Realty (up 1.48%) and BSE Bankex (up 1.17%).
Eighteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were TCS (up 3.84%); Mahindra & Mahindra (up 3.48%); Larsen & Toubro (up 2.61%); Infosys (up 2.35%) and HDFC (up 1.99%). The main losers were Hero MotoCorp (down 1.96%); Hindustan Unilever (down 1.93%); Hindalco Industries (down 1.44%); GAIL India (down 1.38%) and Bajaj Auto (down 1.18%).
The top two A Group gainers on the BSE were—Reliance Communications (up 8.30%) and Syndicate Bank (up 8.01%).
The top two A Group losers on the BSE were—Essar Oil (down 3.14%) and Coromandel International (down 2.90%).
The top two B Group gainers on the BSE were—Noida Medicare Centre (up 20%) and Supertex Industries (up 20%).
The top two B Group losers on the BSE were— Zodiac JRD MKJ (down 19.92%) and SNL Bearings (down 19.64%).
Of the 50 stocks on the Nifty, 35 ended in the green. The key gainers were Reliance Infrastructure (up 3.43%); HCL Technologies (up 3.42%); TCS (up 3.38%); Jaiprakash Associates (up 06%) and M&M (up 2.98%). The major losers were Cairn India (down 1.94%); HUL (down 1.88%); Hero MotoCorp (down 1.62%); Hindalco Ind (down 1.39%) and Tata Motors (down 1.12%).
Markets in Asia settled mostly lower on factory outputs from the US and China coming in below expectations, showing signs of weak growth in the world’s two top economies. The Jakarta Composite, Indonesia’s benchmark index, fell the most in about six weeks after Standard & Poor’s cut its outlook on the rating for Southeast Asia’s biggest economy.
The Shanghai Composite fell 0.17%; the Hang Seng declined 0.30%; the Jakarta Composite dropped 1.32%; the KLSE Composite fell 0.24%; the Nikkei 225 contracted 0.76% and the Seoul Composite settled 0.34% higher. Bucking the trend, the Straits Times surged 1.02% and the Taiwan Weighted gained 0.43%.
At the time of writing, key markets in Europe were mixed with a negative bias and the US stock futures were in the positive, indicating a firm opening for US stocks later in the day.
Back home, foreign institutional investors were net buyers of shares totalling Rs876.93 crore on Tuesday. On the other hand, domestic institutional investors were net sellers of stocks amounting to Rs347.17 crore.
Pharma major Venus Remedies today said it has signed a deal with South Korean drug company Goodwills Co Ltd for exclusive marketing of its antibiotic drug ‘Elores’. The deal was signed after Companies and Intellectual Property Registration Office (CIPRO) of Republic of South Korea granted the patent to the product, Panchkula (Haryana) based Venus Remedies said in a statement. Venus Remedies advanced 1.94% to close at Rs250 on the NSE.
Apollo Tyres today said it has set up its second exports hub in Thailand to cater to the ASEAN region, which contributes 40 per cent to the company's overseas income. After Dubai for West Asian region, this is the second hub outside the company's operations in India, The Netherlands and South Africa, it added. The stock fell 0.31% to close at Rs96.30 on the NSE.
Private carrier Jet Airways has sought approval of the Foreign Investment Promotion Board (FIPB) to sell 24% stake in the company to Gulf carrier Etihad Airways, sources said today. After months of deliberations, Jet Airways and Etihad last month signed a deal under which the premier Indian carrier agreed to sell 27.26 million shares in a preferential offer to the latter at Rs754.74 a piece. Jet Airways declined 1.77% to close at Rs610.15 on the NSE.
Officials from the ministry of corporate affairs and Infosys have called a roundtable meeting with CAs, CSs and cost accountants to understand the performance issues with MCA21—the e-filing portal of the ministry
The ministry of corporate affairs (MCA) has organised a meeting in Mumbai with chartered accountants (CAs), company secretaries (CSs) and cost accountants to understand performance issues with its MCA21 portal. The interactive meeting would take place on 6 May 2013 at 2.30pm at the Indian Merchants Chamber (IMC).
As Moneylife has pointed out earlier, MCA21, the e-filing portal of the MCA, has remained unstable after the management of the website was taken over by Infosys from Tata Consultancy Services (TCS) (Read Why can’t Infosys get MCA21, the e-filing system working?)
In order to receive genuine and frank feedback, the MCA through local councils and chapters of CAs, CSs and cost accountants has organised the interactive meeting.
Amardeep Singh Bhatia, joint secretary of the MCA as well as senior officials from the Mumbai region and Infosys would be present at the meeting. After brief remarks by the MCA and Infosys officials, there would be a round table discussion.
The HSBC Purchasing Managers' Index which measures the trends in manufacturing sector every month fell to 51 points in April, the lowest reading recorded since November 2011
Manufacturing activities in India may gain momentum in the coming months, given a pickup in export orders, declining prices and improved operating conditions, a survey by HSBC said today.
Although India’s manufacturing growth rate fell to its lowest in over four years last month, export orders picked up and both input and output inflation eased, as per a monthly Purchasing Manager survey conducted by HSBC India and financial information provider Markit.
Besides, operating conditions in the Indian manufacturing economy improved further during April and there was a modest increase in incoming new work, the survey said.
The slowing growth rate and declining inflation may prompt the central bank to cut the interest rates tomorrow, although there is not “plenty of scope for RBI to slash rates”.
The HSBC Purchasing Managers' Index measures the trends in manufacturing sector every month on the basis of changes in output, new orders, employment, suppliers' delivery times and stocks of purchases. The index fell to 51 points in April, the lowest reading recorded since November 2011.
“Growth in manufacturing continued to slow as domestic orders decelerated and power outages curbed output. On the bright side, new export orders picked up and inflation continued to ease,” it said.
HSBC said that growth needs a boost from further policy reforms and stepped up implementation of infrastructure related investment projects.
Commenting on the survey results, HSBC’s chief economist for India and ASEAN Leif Eskesen said: “Manufacturing activity lost momentum again in April, with output growth slowing further on the back of a deceleration in domestic orders and continued power outages.
“Export orders, on the other hand, picked up. Encouragingly, input and output price inflation eased. With the growth momentum slowing and inflation receding, the RBI is likely to cut the policy rate this week,” he said.
“To add juice to the economy again the reform momentum has to get its second wind and we need to see more implementation of key infrastructure related projects,” HSBC said.
“The latter is likely to gradually happen as some of the investment projects expedited through the investment committee are rolled out,” it said.