The Nifty has to firm up above today’s high for a short-term upmove
Almost all the Asian indices opened positive and so did Nifty and Sensex. The positive opening continued with the latest data showing the growth rate in China’s industrial production and retail sales accelerated in September 2012. Yesterday we mentioned that the Sensex and the Nifty awaits fresh signals and that a close above 5,700 on the Nifty would be mildly bullish. Today the Nifty closed above this level. From here we may see the index making some gains if the benchmark manages to close above today’s high. The National Stock Exchange (NSE) saw a volume of 72.45 crore shares and an advance decline ratio of 956:494
US stocks rose on Wednesday, after the latest data indicated that the US housing market continues to improve.
The Sensex opened in the 18,654 while the Nifty opened at 5,675. Among the morning news to influence Asian markets, China's industrial production increased 9.2% in September from a year earlier, rebounding from a three-year low of 8.9% expansion in August. Retail sales rose 14.2% in September from a year earlier, up from 13.2% growth in August. Ahead of the data, Chinese Premier Wen Jiabao said that the Chinese economy was in reasonable shape in the third quarter and that he expected the country to reach its fiscal-year economic targets
The benchmarks moved into the negative for about an hour during the morning session, when the indices hit their intra day lows. From there the indices continued to rise higher and hit their respective high in the last hour of the trading session. Sensex hit a higher low of 18,576 while the Nifty hit a higher low of 5,651. Both the Sensex and the Nifty hit a four day intra-day high (including today) at 18,807 and 5,723 respectively. The Sensex and the Nifty closed above their respective 20-day moving averages which is a positive for the bulls. Sensex closed at 18,792 (0.97% or 181 points up) while the Nifty closed at 5,719 (1.03% or 58 points up)
The broader indices reported a mixed close today; the BSE Mid-cap index rose 1.16% and the BSE Small-cap index gained 0.86 %.
The sectoral gainers were led by BSE Realty (up 2.58%); BSE Bankex (up 2.09%); BSE Consumer Durables (up 1.50%); BSE Auto (up 1.40%); BSE Capital Goods (up 1.31%). The lone loser was BSE Healthcare (down 0.30%).
Of the 30 stocks in the Sensex, 24 closed in the positive. The key gainers were Tata Power (up 3.13%); State Bank of India (up 2.80%); Tata Motors (up 2%); Hero MotoCorp (up 1.89%) and TCS (up 1.82%). The main losers were Wipro (down 1.97%); Sun Pharma (down 1.73%); Bharti Airtel (down 1.63%); GAIL India (down 0.57%) and ONGC (down 0.20%);
The top two A Group gainers on the BSE were— Century Textiles (up 5.65%) and Jaiprakash Power Ventures (up 5.49%) The top two A Group losers on the BSE were — Dish TV India (down 3.17%) and Wipro (down 1.97%)
The top two B Group gainers on the BSE were—Cable Corp (up 20%) and Dr Agarwals (up 19.97%). The top two B Group losers on the BSE were— Zylog Systems (down 19.99%) and Tuticorin Alkali Chemicals & Fertilisers (down 9.87%)
Out of the 50 stocks listed on the Nifty, 38 stocks settled in the positive. The top gainers were Jaiprakash Associates (up 4.73%); Axis Bank (up 4.59%); Bank of Baroda (up 4%); HCL Technologies (up 3.69%) and Tata Power (up 2.89%). The major losers were Wipro (down 1.92%); Bharti Airtel (down 1.89%); Sun Pharma (down 1.78%); Grasim (down 0.89 %) and Cairn India (down 0.75 %).
According to Nomura, India's current deficit may soar to a record high in the September quarter on high non-oil imports after briefly narrowing in the June quarter, which could make the rupee susceptible to a sudden reversal in capital inflows.
Japanese media reported that the Bank of Japan may introduce more monetary-easing moves at its next policy meeting.
All the Asian indices ended in the positive with the highest gainer being Nikkei 225 which rose 2% while the least gain of 0.01% was made by Taiwan Weighted.
A two-day summit of European Union leaders began in Brussels, Belgium today, 18 October 2012 to decide on the bailouts to Spain and Greece.
Back home, foreign institutional investors were net sellers of shares amounting to Rs 68.87 crore on Thursday while domestic institutional investors too were net sellers of equities aggregating Rs 184.56crore.
Agro Tech Foods, a company is engaged in the business of marketing food and food ingredients to consumers and institutional customers,for the September 2012 quarter reported a 6% growth in the standalone net sales grew on year-on-year (y-o-y) basis while its net profit jumped by 16% in y-o-y basis. The stock rose by 4.57% to Rs 433.20 on the Bombay Stock Exchange (BSE)
Kingfisher Airlines has hit the lower circuit filter of 4.76% at Rs 12 on the BSE after the company said that a meeting with the striking employees and the management failed to reach an agreement to re-start flights. Meanwhile, Directorate General of Civil Aviation rejected giving it an approval for the winter schedule of flights.
Wide distribution network and debt free balance sheet of Insecticides India Limited makes it a good investment proposition
LIC Housing Finance trades at 50% of the book value of HDFC which is excessive given that it is lower than HDFC is just one out of five key metrics, says Espirito Santo Securities