Sensex, Nifty may still have some steam left: Monday closing report

The indices have become overbought on a short-term basis but may head higher

The Indian markets carried forward the positive momentum of Friday and shot up at the open and traded high for the entire trading session on Monday. Ahead of the result of the exit polls today, the market surged anticipating the BJP-led NDA to be able to gain a majority. Narendra Modi, the prime ministerial candidate from the NDA, is perceived as being more business-friendly and decisive by the market players.

The BSE 30-share Sensex opened at 23,031 while the NSE 50-share Nifty opened at 6,863.40.  By the end of the session, both the indices hit their days high and closed near to it. In the last hour of the session, Sensex and the Nifty managed to cross the level of 23,500 and 7,000 and stayed above that level until the end of the session. Sensex hit a high of 23,573 and closed at 23,551 (up 557 points or 2.42%) while Nifty hit a high of 7,020 and closed at 7,014 (up 155 points or 2.27%). The NSE recorded a higher volume of 97.68 crore shares. India VIX closed lower at 37.1050 (fell 1.59%).

Except for Pharma (0.89%) all the other indices on the NSE closed in the green. The top five gainers were CPSE (3.98%), PSE (3.25%), Energy (3.05%), Media (3.00%) and Infra (2.95%).

Of the 50 stocks on the Nifty, 43 ended in the green. The top five gainers were Coal India (6.11%), Power Grid (5.29%), Grasim (4.75%), HDFC Bank (4.64%) and Hero MotoCorp (4.14%). The top five losers were United Spirits (2.72%), Sun Pharma (1.46%), Cipla (1.12%), Hindalco (1.01%) and Jindal Steel (0.65%).

Of the 1,578 companies on the NSE, 756 companies closed in the green, 737 companies closed in the red while 85 companies closed flat.

Coal India (up 7.04%) was the top gainer in Sensex 30 pack. The company was in news for its board may consider the issue of awarding contract for coal import in a meeting likely to be held by the month-end.

Cipla (fell 1.26%) was among the top two loser in the Sensex 30 stock. Cipla today said it will invest $1.5 million to acquire 14.6% stake in US-based Chase Pharmaceuticals engaged in developing novel approaches to improve treatments for Alzheimer’s disease.

Torrent Power (up 18.38%) was the top gainer in the ‘A’ group on the BSE. The company has announced that it is planning a re-organisation of power sector operations of Torrent Group. Corporation Bank (down 4.95%) was the biggest lose in the ‘A’ group on the BSE. The bank’s annual result showed fall in the net profit for the financial year ended 2014.

India's merchandise exports rose 5.26% to $25.63 billion in April 2014 over April 2013, data released by the government after trading hours on Friday, 9 May 2014, showed.
Imports dropped 15% at $35.72 billion in April 2014 over April 2013. The trade deficit for April 2014 was estimated at $10.09 billion, which was sharply lower than the trade deficit of $17.67 billion during April 2013.

The government unveils CPI data for April 2014 after trading hours today, 12 May 2014. US indices closed marginally in the green on Friday.

Asian indices had a mixed performance. Shanghai Composite (up 2.08%) was the top gainer. Both Straits Times and Taiwan Weighted fell 0.91% were the top loser.

Japan's current-account surplus narrowed more than forecast in March as a surge in imports before last month's sales-tax increase trimmed gains from overseas investments. The excess of 116.4 billion yen ($1.14 billion) reported today by the Ministry of Finance in Tokyo. A 782.9 billion yen deficit on a seasonally adjusted basis was the largest in comparable data back to at least 1996.

European indices were trading in the green. US indices were trading higher.


Fortnightly Market View: In the Price?

Is a Modi victory already factored in, in the current rally?

On 28th March, the Sensex closed at 22,340. Seven weeks later, the index was struggling at 22,344, until a monster 650-point rally pushed the Sensex to just shy of 23,000 when it somehow dawned on the market that Narendra Modi will lead the BJP to power and will deliver a strong and stable government—something that the market...

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Sensex, Nifty to rally upto 16th: Weekly Closing Report
The market shot up on expectations of strong showing by BJP and NDA. If so, the indices will stay buoyant till 16th.

The BSE 30-share Sensex closed the week that ended on 9th May, at 22,994.23 (up 590 points or 3%), while the NSE’s 50-share Nifty closed at 6,858.80 (up 164 points or 2%) for the week. We had mentioned in the past week that this reporting week may see the Sensex, Nifty making gains. Although the markets started the week on a weak note, on Friday the indices surged to new life time highs.
The indices closed in the positive on Monday. Although the index tried edging higher the gain were marginal with the index giving up most of the intra-day gains by the end of the session. Nifty closed at 6,699 (up 5 points or 0.07%). The positive news from the US labor market played on the market sentiments. The 288,000 increase in employment marked the biggest upside surprise since February 2012 and followed a 203,000 rise the prior month. An index measuring the share of industries hiring climbed to 67, the highest level since January 2012. The jobless rate dropped to 6.3%, the lowest since September 2008.
On Tuesday the market tried moving higher, as well. The OECD said that India's economy may make a gradual recovery this year, helped by a rebound in capital investments as well as a pick-up in private consumption, but rising bad loans at its banks threaten to choke the recovery. Nifty closed at 6,715 (up 16 points or 0.24%).
On Wednesday, Nifty edged lower and closed at its lowest since 27 March 2014. Nifty closed at 6,653 (down 63 points or 0.93%). On one hand, US trade deficit narrowed in March as exports grew by the most in nine months, while on the other hand, services index in China from HSBC Holdings Plc and Markit Economics dropped to 51.4 in April from 51.9 in the previous month. On Thursday too, Nifty was listless closing at 6,660 (up 7 points or 0.11%).
India Ratings & Research, a Fitch Group Company anticipates gold prices to decline in  FY15 to the range of Rs25,500/10g to Rs27,500/10g.
On Friday the market began slowly but soon it rose vertically as speculators massively build positions in frontline banking and cement stocks, on an assumption that NDA is likely to get a majority and come to power easily. The index closed at its new life time high. Nifty closed at 6,859 (up 199 points or 2.99%) and Sensex closed at 22,994 (up 650 points or 2.91%).
For the week, the top two performers among the NSE indices were Bank (7%) and Energy (5%) while the worst two performers were I T  (-3%) and Pharma (-2%).
Among the Nifty stocks, the top five stocks for the week were ICICI Bank (10%); Hindalco Industries (9%); IndusInd Bank (8%); Bharat Heavy Electricals (8%) and Reliance Industries (7%) while the top five losers were Bharti Airtel (5%); Lupin (-4%); HCL Technologies (-4%); Infosys (-3%) and Tech Mahindra (-3%).
Of the 1,422 companies on the NSE, 656 companies closed in the green, 722 companies closed in the red while 44 companies closed flat.
 Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:

ML Top sector   ML Worst sector  
Refineries 3% Telecom Services -5%
Con_EPC_Infra 2% Software & I T Services -3%
Industrial Intermediates 2% Media -2%
Consumer Durables 2% Financial Services -2%
Chemicals 1% Cement -2%



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