If the Nifty manages to make a higher high and stay above 5,555, it may see some more gains
The market closed in the positive on better-than-expected inflation numbers that raised hopes of the RBI cutting key interest rates, going ahead and a rally in oil & gas stocks following a decline in global crude prices. If the Nifty manages to make a higher high and stay above 5,555, it may see some more gains. The National Stock Exchange (NSE) recorded a volume of 52.20 crore shares and advance-decline ratio of 686:598.
The market opened in the negative no cautiousness ahead of the release of headline inflation numbers for March and weak cues from the Asian markets. Markets across were lower in morning trade on lower-than-expected growth data from China. Chinese GDP data recorded a 7.7% growth for the first quarter of 2013, below analysts’ expectations of 8% level and down from 7.9% in the previous quarter.
The Nifty opened 20 points down at 5,509 and the Sensex fell 47 points to resume trade at 18,196. Profit booking at the open led the benchmarks to their lows in initial trade itself. The Nifty fell to 5,500 and the Sensex slipped to 18,144 at their respective lows.
However, select buying saw the indices moving gradually higher as trade progressed. The benchmarks emerged into the positive in mid-morning trade on support from oil & gas stocks following a decline in global crude prices.
Lower-than-expected headline inflation for March coming in at a 40-month low of 5.96% pushed rate-sensitive sectors like banking, auto and infrastructure higher in late-morning trade.
The market continued its northbound journey in noon trade on sustained buying activity. The benchmarks hit their highs at around 1.30pm with the Nifty rising to 5,593 and the Sensex climbing to 18,424.
A minor bout of profit booking saw the market paring part of its gains and remaining range-bound, albeit in the positive terrain. The market settled in the green on hopes that the decline in headline inflation will prompt the Reserve Bank of India to cut key rates, going ahead.
The Nifty rose 40 points (0.72%) to settle at 5,568 and the Sensex closed the session at 18,358, up 115 points (0.63%).
While the broader indices also ended higher, they underperformed the Sensex today, as the BSE Mid-cap index rose 0.15% and the BSE Small-cap index gained 0.43%.
The top sectoral gainers were BSE Oil & Gas (up 2.37%); BSE Fast Moving Consumer Goods (up 1.45%); BSE PSU (up 1.38%); BSE Bankex (up 0.96%) and BSE Capital Goods (up 0.57%). The main losers were BSE Consumer Durables (down 2.06%); BSE Metal (down 1.21%); BSE Auto (down 0.98%); BSE Healthcare (down 0.77%) and BSE Power (down 0.55%).
Fifteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were ONGC (up 3.45%); State Bank of India (up 3.01%); Bharti Airtel (up 2.38%); Reliance Industries (up 2.35%) and ITC (up 2.34%). The top losers were Dr Reddy’s Laboratories (down 2.65%); Sterlite Industries (down 2.60%); TCS (down 2.38%); Tata Motors (down 2.25%) and Coal India (down 1.83%).
The top two A Group gainers on the BSE were—Jet Airways India (up 5.59%) and Canara Bank (up 5.51%).
The top two A Group losers on the BSE were—Muthoot Finance (down 13.13%) and Bajaj Holdings & Investment (down 6.79%).
The top two B Group gainers on the BSE were—Kama Holdings (up 20%) and Delta Corp (up 20%).
The top two B Group losers on the BSE were—Shimoga Technologies (down 20%) and BDH Industries (down 19.90%).
Of the 50 stocks on the Nifty, 25 ended in the green. The key gainers were BPCL (up 5.36%); Bank of Baroda (up 3.14%); ONGC (up 3.08%); Punjab National Bank (up 2.87%) and SBI (up 2.80%). The key losers were Sesa Goa (down 3.31%); Dr Reddy’s (down 2.80%); TCS (down 2.56%); DLF (down 2.53%) and Tata Motors (down 2.33%).
Markets in Asia closed lower on lower-than-expected GDP numbers from China for the fist quarter of the calendar year 2013. A decline in copper and crude prices impacted raw material producers and energy majors across the region.
The Shanghai Composite declined 1.13%, the Hang Seng dropped 1.43%; the Jakarta Composite declined 0.86%; the KLSE Composite slipped 0.04%; the Nikkei 225 tanked 1.55%; the Straits Times contracted 0.30%; the Seoul Composite fell 0.205 and the Taiwan Weighted settled 0.74% lower.
At the time of writing, the key European indices were trading with cuts of around 1% and the US stock futures were in the red, indicating a lower opening for US stocks later in the day.
Back home, institutional investors, both foreign and domestic, were net sellers in the equities segment on Friday. While foreign institutional investors pulled out funds amounting to Rs21.59 crore, domestic institutional investors withdrew Rs311.92 crore from stocks on Friday.
Leading jewellery retailer Gitanjali Group plans to set up a total of 550 shops in India and abroad by end of this year, a top company official said. The expansion in the domestic market will be through a franchise route in Tier II and III cities as rents are lower than the Tier I cities. Gitanjali Gems declined 2.98% to close at Rs588.95 on the NSE.
Kalpataru Power Transmission 's subsidiary Shree Shubham Logistics has raised Rs80 crore from Tano India Private Equity Fund II for funding its capacity expansion plan.
Post stake sale Kalpataru Power will hold 70% stake in the subsidiary. Kalpataru Power Transmission advanced 3.13% to close at Rs80.85 on the NSE.
Ahmedabad-based ice-cream maker Vadilal Industries is looking at East India for market expansion as it eyes 25 percent revenue growth in the current fiscal. The company, that sells brands like Flingo, Gourmet and Badabite currently, will also be launching more SKUs (stock keeping units) under these brands to enhance their equity. The stock surged 4.19% to close at Rs171.40 on the NSE.