Sensex, Nifty may move sideways: Wednesday closing report
The market will remain directionless until the election results are clear 

After a relentless rally, market finally seem to be pausing for breath and some serious profit booking from the very start of trading today. Stock indices struggled to stay in the green without any success and the downtrend was visible all through the session.
Sensex opened at 23,898 while the Nifty opened at 7,112. The indices lost strength after hitting a high of 23,965 and 7,142 and edged lower to hit a low of 23,753 and 7,081.
Sensex closed at 23,815 (down 56 points or 0.24%) while Nifty closed flat at 7,109. The NSE recorded a volume of 117.36 crore shares. India VIX rose 1.16% to close at 32.4200.
The top five gainers among the other indices on the NSE were Realty (4.22%), P S U Bank (3.32%), Metal (3.27%), Nifty Midcap 50 (2.56%) and Dividend Opportunities (2.18%) while the top five losers were Energy (0.73%), Pharma (0.43%), Finance (0.33%), I T (0.16%) and Auto (0.08%).
Of the 50 stocks on the Nifty, 30 ended in the green. The top five gainers were Bank of Baroda (9.60%), Jindal Steel (6.51%), Tata Steel (5.95%), DLF (5.45%) and NMDC (5.07%). The top five losers were M & M (3.67%), Dr Reddy (3.48%), HDFC (1.91%), Reliance Industries (1.74%) and HDFC Bank (1.71%).
Of the 1,572 companies trading on the NSE, 958 companies closed in the green, 537 companies closed in the red while 77 companies closed flat.
Tata Steel (5.91%), top gainer among Sensex 30 pack, was in news for its plans to raise $1.24 billion overseas through the sale of bonds. This is part of a mega $7 billion debt refinancing initiative for Tata Steel Europe, formerly known as Corus.
After posting weak consolidated net profit Dr Reddy’s Lab was the top loser in the Sensex 30 stock for the second consecutive session. Bank of America-Merrill Lynch downgraded the stock to "underperform" from "buy," and Morgan Stanley too downgraded it to "equalweight" from "overweight". Dr Reddy’s Lab fell 3.51%.
Indian Bank recently came out with a weak quarterly result and annual result. However it was the top gainer in ‘A’ group on the BSE, rising 11.73%.
Bajaj Finance was the top loser in the ‘A’ group on the BSE, falling 4.35%, despite better results.
 Bank stocks will be in focus in the coming days as a committee appointed by the Reserve Bank of India (RBI) under Dr P J Nayak has reportedly proposed that the government should cut its stakes in state banks to below 50% and establish "fully empowered" bank boards. This has already triggered angry protests from bank unions. The All India Bank Employees Association has issued a strong letter of protest and has threatened country-wide protests, rallies and agitations. The news moved the banking stocks higher. The stocks which came among the top 10 gainers in the ‘A’ group on the BSE were Indian Bank (11.73%), Canara Bank (10.68%), Central Bank of India (10.37%), BOB (9.22%), Union Bank (8.92%), Bank of India (8.21%) and IOB (8.17%).
US indices closed flat on Tuesday. US retail sales increased 0.1% in April following a revised 1.5% jump in March that marked the biggest gain in four years, Commerce Department figures showed in Washington.
Except for Shanghai Composite (0.14%) and Nikkei 225 (0.14%) all the other Asian indices closed in the green. Jakarta Composite (1.43%) was the top gainer.
China's central bank called on the nation's biggest lenders to accelerate the granting of mortgages. The People's Bank of China told 15 banks yesterday to “improve efficiency of service, give timely approval and distribution of mortgages to qualified buyers”. It also urged lenders to give priority to families buying their first homes and strengthen their monitoring of credit risks.
European indices were trading marginally lower as were US Futures.


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Sensex, Nifty peaked for now?: Tuesday closing report

Nifty may find it hard to cross Tuesday's top easily

Tuesday was the third day of major gain on the indices, following the exit polls that predicted the high possibility of Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) forming the next government at the Centre.

Today the indices began well in the positive and were on an uptrend till the beginning of the noon session. However, from around 11.53am the benchmark indices started giving up gains to reach almost up to the day’s low after which they started trending sideways.

The BSE30-share Sensex opened at 23,730 and moved in the range of 23,729 and 24,069 and closed at 23,871 (up 320 points or 1.36%). The NSE 50-share Nifty opened at 7,080 and moved between 7,067 and 7,172 and closed at 7,109 (up 95 points or 1.35%). The NSE recorded a huge volume of 129.36 crore shares. India VIX closed lower at 32.0475 (fell 13.63%).

Except for Pharma (0.85%) all the other indices on the NSE closed in the green. The top five gainers were P S E (2.97%), Realty (2.82%), Energy (2.81%), C P S E (2.78%) and Nifty Midcap 50 (2.76%).

Of the 50 stocks on the Nifty, 39 ended in the green. The top five gainers were Bhel (10.37%), Hero MotoCorp (6.02%), Ambuja Cements (4.89%), Bank of Baroda (4.54%) and DLF (4.24%). The top five losers were PNB (4.77%), Dr Reddy (4.39%), Cairn (1.25%), Hindalco (1.12%) and HDFC Bank (0.76%).

Of the 1,586 companies on the NSE, 948 companies closed in the green, 536 companies closed in the red while 102 companies closed flat.

BHEL (up 10.25%) was the top gainer in the Sensex 30 pack while among the top three gainer in the ‘A’ group on the BSE. The Cabinet is likely to ratify the decision to sell 4.66% stake in the power equipment maker through a block deal. The proposal for post-facto approval for BHEL disinvestment is on the agenda of meeting of the Cabinet Committee on Economic Affairs. The Finance Ministry in March 2014 had sold 4.66% stake in BHEL to Life Insurance Corporation (LIC) for about Rs1,889 crore. LIC purchased 11.41 crore shares in BHEL at a price of Rs 165.55 per share through a block deal on the BSE. Following the block deal, the government stake in BHEL came down to 63.06%, from 67.72%. The Empowered Group of Ministers, headed by Finance Minister P Chidambaram, had in February 2014 decided on the timing and mode of disinvestment in Bhel. However, the CCEA approval was pending for the stake sale.

Weak consolidated net profit was posted by Dr Reddys Lab. It was the top loser (3.99%) in Sensex 30 stock.

The possibility of the Narendra Modi forming the next government has put the Adani group stocks back in focus. The Adani Group stocks were in the top 10 gainers in the ‘A’ group on the BSE. Adani Enterprises (up 11.06%), Adani Ports (up 9.47%), Adani Power (up 7.64%).

Torrent Power which was the top gainer in the ‘A’ group on the BSE on Monday has turned out to be the top loser in the group today (fell 7.35%). The company has announced it is plans a re-organisation of power sector operations of Torrent Group. A composite scheme of amalgamation between Torrent Energy, a wholly owned subsidiary of Torrent Power, and Torrent Cables with Torrent Power was recommended by the Audit Committee and approved by the board of directors of the company.

IOC increased the Price of Diesel (Retail) by Rs1.09 per litre (excluding state levies) from midnight of 12 May 2014-13 May 2014.

Inflation based on the combined consumer price index for urban and rural India accelerated to 8.59% (provisional) in April 2014, from 8.31% (final) in March 2014, data released by the government after trading hours on Monday, 12 May 2014, showed.
Another data released by the government after trading hours on Monday, 12 May 2014, showed that industrial production shrank for a second straight month in March 2014.
Industrial production declined 0.5% in March 2014, compared with a contraction of 1.8% in February 2014. For the year ended 31 March 2014 (FY 2014), the industrial production registered a contraction of 0.1%. The fall in February's output was revised to 1.8% from 1.9% reported earlier.

US indices closed in the positive on Monday. The US government recorded a budget surplus of $107 billion in April, the Treasury Department reported Monday, a smaller windfall than in the same month last year. The April surplus contributes to a steady decline in the deficit for fiscal 2014. Shrinking US deficit could help keep interest rates low.

Except for Shanghai Composite (0.10%) all the other Asian indices trading today closed in the green. Nikkei 225 (1.95%) was the top gainer.

China's factory production expanded 8.7% last month, the National Bureau of Statistics said on Tuesday. Retail sales rose 11.9% in April. Fixed-asset investment for the first four months of this calendar year climbed 17.3%, the latest data showed.

European indices were trading in the green while US Futures were trading marginally higher.


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