Sensex, Nifty may continue to rally: Tuesday Closing Report

As suggested yesterday, the indices went up and this may continue if the Nifty manages making higher high and higher low

Brushing weak global cues, the Indian market closed higher on buying in banking, auto and capital goods stocks. As mentioned yesterday the indices made substantial gains, this may continue if the Nifty manages making higher high and higher low. The National Stock Exchange (NSE) registered a volume of 58.92 crore shares and advance-decline ratio of 836:489.


The Indian market witnessed a flat opening on negative global cues. Wall Street had its worst day this year last night after news of the Boston blasts filtered through in the last hour of trade while markets across Asia were mixed in morning trade on concerns about the pace of growth in the region following reports of a slowdown in China’s economic growth in the first quarter.


The Nifty opened six points lower at 5,562 and the Sensex resumed trade at 18,356, a fall of two points from its previous close. The indices slipped to their lows in initial trade with the Nifty going back to 5,556 and the Sensex falling to 18,326.


The market brushed aside the global weakness and soon witnessed an upmove on all-round buying interest. Banking, power, auto and realty stocks supported the gains.


The benchmarks continued their northbound journey in the second half of the trading session despite a weak opening of the key European markets.


The indices hit their highs in the last half hour of trade with the Nifty rising to 5,699 and the Sensex climbing to 18,771. The market settled near the highs, closing in the green for the second day in a row.


The Nifty surged 121 points (2.16%) higher at 5,689 and the Sensex jumped 387 points (2.11%) to finish the session at 18,745. The two market indices recorded their highest daily percentage gain since 24 September2012.


Among the broader indices, the BSE Mid-cap index gained 0.86% and the BSE Small-cap index rose 0.43%.


Barring the BSE IT (down 0.50%) and BSE TECk (down 0.09%) all other sectoral indices settled higher. The top gainers were BSE Bankex (up 2.94%); BSE Auto (up 2.54%); BSE Capital Goods (up 2.53%); BSE Power (up 2.42%) and BSE Realty (up 2.29%).


Twenty-seven of the 30 stocks on the Sensex closed in the positive. The chief gainers were Maruti Suzuki (up 4.23%); Mahindra & Mahindra (up 3.95%); ONGC (up 3.87%); HDFC (up 3.84%) and Dr Reddy’s Laboratories (up 3.56%). Infosys (down 1.71%), Sterlite Industries (down 1.28%) and Cipla (down 0.10%) were the losers on the index.


The top two A Group gainers on the BSE were—Future Retail (up 8.71%) and Reliance Communications (up 6.53%).

The top two A Group losers on the BSE were—Muthoot Finance (down 9.44%) and Hindustan Zinc (down 4.2650.


The top two B Group gainers on the BSE were—Shimoga Technologies (up 25%) and Vijay Textiles (up 20%).

The top two B Group losers on the BSE were—Samrat Pharmachem (down 19.84%) and WS Industries India (down 19.82%).


Of the 50 stocks on the Nifty, 46 ended in the green. The key gainers were IDFC (up 5.39%); Axis Bank (up 4.87%); IndusInd Bank (up 4.40%); Maruti Suzuki (up 4.36%) and M&M (up 3.94%). The key losers were Infosys (down 1.97%); HCL Technologies, Cairn India (down 0.33% each) and Lupin (down 0.02%).


Markets in Asia pared early losses and settled mostly higher on speculations that the Chinese government will not impose any fresh curbs on the country’s real estate sector on the back of a slowdown in the economy. However, the Japanese benchmark was down on account of a decline in commodity prices.


The Shanghai Composite gained 0.59%; the Jakarta Composite surged 1.045; the KLSE Composite rose 0.16%; the Straits Times advanced 0.22%; the Seoul Composite added 0.09% and the Taiwan Weighted climbed 0.48%. On the other hand, the Hang Seng fell 0.46% and the Nikkei 225 declined 0.41%.


At the time of writing, the key European markets were down between 0.51% and 0.74% and the US stock futures were in the green, indicating a higher opening for US stocks later in the day.


Back home, foreign institutional investors were net sellers of equities totalling Rs418.37 crore on Monday whereas domestic institutional investors were net buyers of stocks aggregating Rs297.18 crore.


State-owned gas utility GAIL India plans to sell part of its 4.6% stake in Hong Kong-listed, city gas distribution firm, China Gas Holdings. GAIL, which had in 2005 made a strategic investment of Rs 137 crore by acquiring 210 million shares of China Gas, will sell part of its holding this month. The stock gained 1.23% to close at Rs321.50 on the NSE.


Crompton Greaves has been awarded a $60 million contract for turnkey construction of four high voltage GIS substations by the electrical transmission project office of the ministry of electricity in Iraq. The company will design, manufacture, deliver and install the substations, thus helping upgrade and reinforce the existing 132 kV electricity transmission grid. The stock rose 2.15% to close at Rs0.30 on the NSE.


Hundreds feared dead in Iran earthquake

Iran’s Seismological Centre reported on its website that the 7.5 magnitude quake struck at 3:14 pm (1614 IST) about 80 kilometres the border with Pakistan and Afghanistan

A strong earthquake measuring 7.5 on the Richter scale struck Iran's south-eastern Sistan and Baluchestan Province, according to reports quoting the Iranian Seismological Centre.


An Iranian government official said he expected hundreds of deaths from a major earthquake that struck Iran near the border with Pakistan. Though, Iranian state TV says at least 40 people have been killed in this earthquake.


Iran’s Seismological Centre reported on its website that the 7.5 magnitude quake struck at 3:14 pm (1614 IST) about 80 kilometres the border with Pakistan and Afghanistan.


It also shook buildings and forced high-rise offices to be evacuated in Abu Dhabi, in the United Arab Emirates, as well as across northern India, including the capital New Delhi where tremors rattled buildings and caused office-workers to run into the streets.


The website of the US Geological Survey put the magnitude of the quake at 7.8, and said it struck near the Iranian city of Khash, in the south-eastern province of Sistan Baluchistan.


The head of Iran’s Red Crescent rescue corps, Mahmoud Mozafar, said evaluation teams were dispatched to the affected area.


The quake also shook large parts of Pakistan including Islamabad, where buildings swayed, and the largest city Karachi, where tremors also prompted many to flee buildings in terror.


However, the earthquake was not felt here.


It comes a week after a strong earthquake struck near Iran’s Gulf port city of Bushehr, killing at least 30 people and injuring 800 but leaving Iran’s only nuclear power plant intact.


Power supply and VIP constituencies of Uttar Pradesh

The Electricity Act does not allow preferential treatment to anybody as far as supply of electricity is concerned, according to KK Bajaj of the Consumer Education and Research Centre

The nine-month-old decision in Uttar Pradesh to provide round-the-clock electricity to the two places, Rae Bareli and Amethi, was revoked late Thursday 11 April 2013, after which power went off for more than four hours, Uttar Pradesh Power Corporation officials said, according to report in The Economic Times dated 12 April 2013. Amethi and Rae Bareli are represented in Parliament by Rahul Gandhi and Sonia Gandhi, respectively. The ET report added, “While officials were mum on the matter, some privy to the decision told reporters that from now on VIP districts would also get normal power supply.” Uninterrupted power supply, however, continues to some other VIP zones in Uttar Pradesh of the Samajwadi Party.


Although a partial victory, this is a clear verdict in favour of the humble consumer of electric power supply in all the states of India. The Electricity Act does not allow preferential treatment to anybody as far as supply of electricity is concerned, according to KK Bajaj, Chairman, Consumer Education and Research Centre (  UP Electricity Regulatory Commission (UPERC) had sent a notice to the state government asking its explanation for giving preferential treatment to consumers in Rae Bareli and Amethi.


Mr Bajaj says, “I will wait for a week and again write to UPERC.” All consumers in all parts of UP should be treated alike is his argument. There should be nothing special about consumers in VIP constituencies.


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