The market fell Wednesday on higher volumes. Only a close above 6,140 tomorrow may bring the NSE Nifty back into an uptrend
As mentioned in Tuesday’s closing report the market fell Wednesday after making three days of gains. The worry for the bulls is that the fall of 80 points on the NSE Nifty was on a higher volume of 68.17crore shares. This fall is the highest since 30 September 2013. Today, the indices had a weak opening and made attempts to cross yesterday close but finally gave up in the last hour of the trading session and closed sharply in the negative.
The BSE Sensex opened at 20,857 and moved down to 20,580 after hitting a high of 20,895. The Sensex closed at 20,635 (down 256 points or 1.22%). The NSE Nifty which opened at 6,187 hit a low of 6,107 at the fag end of the session after hitting a high of 6,204. The Nifty closed at 6,123 (down 80 points or 1.30%).
Except for Metal (up 0.10%) all the other indices on the NSE closed in the negative. The top five losers were Media (2.28%); PSU Bank (2.02%); Bank Nifty (1.97%); Finance (1.75%) and Service (1.48%).
Of the 50 stocks on the Nifty, only four ended in the green. The four gainers were Coal India (1.83%); Sesa Sterlite (1.22%); Tata Power (0.44%) and A C C (0.09%). While the top five losers were I C I C I Bank (3.57%); Jaiprakash Associates (3.52%); B P C L (3.01%); Hindalco (2.82%) and IndusInd Bank (2.61%).
Of the 1,229 shares on the NSE, 535 closed in the positive, 626 closed in the negative while 68 remained unchanged.
The Organization for Economic Cooperation and Development (OECD) cut its global growth forecasts on Tuesday citing a slowdown in developing nations. The world economy will probably expand 2.7% this year and 3.6% in 2014, instead of the 3.1% and 4% predicted in May, the Paris-based OECD said in a semi-annual report. Indian economy will grow just 3.4% in the current financial year and 5.1% in 2014, down from 5.7% and 6.6% forecasted earlier.
Sugar shares gained on reports that the Centre has reportedly convened a high-level meeting today, 20 November 2013 which is expected to discuss a relief-package for the crisis-ridden sugar industry in Uttar Pradesh and Maharashtra, which could include interest-free loans from banks.
Petroleum minister M Veerappa Moily today said that diesel would be completely decontrolled within next six months time.
US indices closed in the negative yesterday. US Federal Reserve's FOMC minutes are due to be released today, 20 November 2013 for any fresh clues on Fed monetary policy moves upcoming. The minutes will be from the October 29-30 meeting.
The Federal Reserve would like to move away from using its balance sheet to help the economy and focus more on "forward guidance" about keeping short-term rates low, but the timing of this shift remains an open question, said Federal Reserve Chairman Ben Bernanke on Tuesday. Bernanke was much clearer about the central bank's plan for short-term rates, saying the Fed would likely hold short-term rates near zero well after the economy reaches the 6.5% unemployment rate that is the threshold for considering a rate increase.
Except for Shanghai Composite (up 0.62%) and Hang Seng (up 0.18%) all the other Asian indices closed in the negative. Jakarta Composite was the top loser, 1.08%.
European indices were trading in the negative and the US Futures were trading marginally lower.
Exporters and private banks are preferred investments among rate cyclicals, but one must remain cautious on domestic growth cyclicals, says Nomura in a research note
Nomura has a set a March-end 2014 Sensex target of 22,000. Its top stock picks are ICICI Bank, HCL Technologies, Reliance Industries, TCS and NTPC.
Nomura continues to prefer exporters, and private banks among rate cyclicals, but it remains cautious on domestic growth cyclicals.
In its September quarter review, Nomura says that it expected strong top-line growth and relatively muted input cost pressures to translate into a rebound in profits, while supporting margins and offsetting, to an extent, margin-erosive high competitive intensity. Corporate results were largely consistent with this forecast.
Nomura observes that a large part of this turnaround in top-line and net profit growth is driven by a clutch of external-facing sectors—non-PSU oil & gas, IT services, autos (driven by JLR) and pharma (to a smaller extent).
The sector-wise earnings scorecard is given in the table below:
The quarterly earnings changes for Nifty stocks are given in the table below:
SEBI told the Supreme Court that Sahara group has overvalued its properties and did not hand over all original title deeds of assets worth Rs20,000 crore
Market regulator Securities and Exchange Board of India (SEBI) on Wednesday told the Supreme Court that Sahara group has overvalued its properties and did not hand over all original title deeds of assets worth Rs20,000 crore as per the directions of the apex court.
SEBI said that SC's order has not been complied with by the Subrato Roy-led Sahara group and assets whose documents were given to the market regulator is worth much less than Rs20,000 crore.
A bench of justices KS Radhakrishnan and JS Khehar expressed displeasure on the issue but refrained from passing any order as the Sahara's arguing counsel was not present in the court.
"It is a mockery of our order if it has been complied with in this way," the bench said and posted the case for hearing on Thursday after Sahara sought adjournment on the ground of non availability of its counsel.
Sahara has given documents of two plots of land in and around Mumbai to SEBI. One of the two properties is a 106-acre land in Versova, a western suburb, which according to it is worth around Rs19,000 crore. The other is a 200-acre land in Vasai, which it estimates to be worth about Rs1,000 crore. The valuation of the properties by Sahara is challenged by SEBI.
SEBI contended that a portion of the properties were in the "thick" of litigation.
Holding that it was playing "hide and seek" and cannot be trusted any more, the Supreme Cour on 28th October directed Sahara group to hand over title deeds of its properties worth Rs20,000 crore to SEBI. The apex court also warned that failure to comply its order to the satisfaction of the market regulator within three weeks would mean Sahara chief Subrata Roy cannot leave India.