Stocks
Sensex, Nifty move higher on positive sentiments: Monday closing report
The market remains bullish and awaits fresh news to the next move. Non-Sensex stocks will do well
 
Monday was the third day of increase in the gains on the BSE 30-share Sensex for the third consecutive session. The clear victory of Narendra Modi and the positive speech from him added more strength to the current upmove.
 
Sensex opened at 24,340 while the NSE 50-share Nifty opened at 7,277. Sensex moved in the range of 24,108 and 24,448 and closed at its life time high 24,363 (up 241 points or 1%). Nifty moved between 7,194 and 7,291 before closing at its new lifetime high of 7,264 (up 61 points or 0.84%). The NSE recorded a huge volume of 190.90 crore shares. India VIX fell 15.08% to close at 20.6300.
 
The top five gainers among the other indices on the NSE were CPSE (9.38%), PSE (8.66%), Infra (7.51%), PSU Bank (6.81%) and Nifty Midcap 50 (6.75%), while the only four losers were IT (4.79%), FMCG (3.88%), Pharma (3.74%) and Consumption (0.08%).
 
Of the 50 stocks on the Nifty, 29 ended in the green. The top five gainers were BHEL (14.42%), Coal India (13.20%), NTPC (12.16%), PNB (11.23%) and ONGC (8.11%). The top five losers were TCS (6.24%), Dr Reddy (5.48%), Infosys (5.27%), Hindustan Unilever (4.95%) and ITC (4.75%). 
 
Of the 1,577 companies on the NSE, 1,276 companies closed in green, 260 closed in the red while 41 closed flat.
 
Standard & Poor's Ratings Services on 16 May 2014, said that the fiscal and economic reforms taken by India's new government in the next two to three months will have significant implications on India's sovereign credit rating.
 
Moody's Investor Service said that the Bharatiya Janata Party's resounding election win is credit positive for India as it boosts the prospect that a stable government will address the country's economic challenges.
 
All the five PSU stocks in the Sensex 30 pack zoomed higher. Four of these five PSUs were among the top four gainers.  Clearly defined policies and autonomy by the incoming government are likely to boost the fortunes of PSUs. The five PSUs were Bhel (16.94%), Coal India (12.73%), NTPC (10.35%), ONGC (8.17%) and Gail (5.13%).
 
With the strengthening of rupee software stocks were pulled down today. TCS, top loser in Sensex 30 stock, 5.69% others were Infosys (4.88%) and Wipro (4.25%).
 
Jaiprakash Power Ventures posted poor quarterly results today. The board of directors of the company at its meeting held on May 17, 2014is planning to seek shareholders’ approval/renewal of shareholders’ approval to raise funds of upto Rs3,000 crore (against Rs2,500 crore already approved on July 06, 2013) for the company’s ongoing projects and/or the projects of its joint venture and subsidiary companies and also to reduce company’s debt. The company was the top gainer (up 30.24%) in ‘A’ group of BSE.
 
Wockhardt (6.66%) was the top loser in ‘A’ group on the BSE. It was recently in news for recalling 109,744 bottles of a high blood pressure drug in the United States after it failed a dissolution test.
 
US indices closed in the positive on Friday. In economic data, construction on new US homes surged in April to the fastest pace in five months, with the volatile apartment category leading that jump, according to government data released Friday.
 
Except for KLSE Composite (0.20%), Seoul Composite (0.08%) and Taiwan Weighted (0.13%) all the other Asian indices closed in the red. Shanghai Composite (1.05%) was the top loser.
 
European indices were showing mixed performance while US Futures were trading lower.

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Industrial stocks to do well
Stable government mandate is good news for Indian industrial stocks, says Nomura in a research note
 
A clear majority to the BJP-led NDA coalition – highlights development as India’s sole agenda item and that is relevant for the political class too. It is time for a structural return to a focus on investment. India’s requirement for infrastructure investment is beyond doubt, and thus a stable government at the centre could maximise this opportunity. These are the observations made by Nomura in a research note in the post-election scenario.
 
While Nomura has been positive on short-cycle industrial names for a while, today’s mandate makes a solid case for a further re-rating for the sector's valuation multiples until fundamentals catch up. Nomura believes an earnings revival may remain gradual as execution may still take some time. 
 
Nomura reiterates its preference for fundamentally strong short-cycle companies with solid business franchises as they will likely be the early beneficiaries of any macro improvement in the near term. Nomura retains its preference for Voltas and Crompton Greaves, while it adds Cummins India to the list. 
 
With railway and logistic reform as one of the key agenda items for the BJP, Nomura believes that the new government will be instrumental in expediting major infrastructure projects such as the Dedicated Freight Corridors (DFC) and Delhi Mumbai Industrial Corridors (DMIC). Against this backdrop, Nomura continues to prefer companies such asConcor and Adani Port. 
 
In the stock market, Nomura's 'Buy' ideas are Voltas, Cummins India, and Crompton Greaves in the industrial space and Concor & Adani ports in the transport infrastructure space. Nomura maintains its 'Reduce' ratings on BHEL and Gujarat Pipavav Port.

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Sahara says willing to sell overseas hotels to raise Rs10,000 crore

The new bench of Justices TS Thakur and AK Sikri, however, refused to allow a plea for putting Roy under house arrest in Lucknow instead of keeping him in Tihar jail

 

The Sahara Group on Monday told the Supreme Court that it is willing to sell hotels located in New York and London to raise Rs10,000 crore.

 

The company said this in response to the apex court asking it to come out with a proposal which is logical and acceptable to it on payment of Rs10,000 crore for release of its chief Subrata Roy.

 

Meanwhile, the Supreme Court refused to allow a plea for putting Roy under house arrest in Lucknow instead of keeping him in Tihar jail.

 

The bench consisting of Justice TS Thakur and Justice AK Sikri heard Roy’s counsel Abhishek Manu Singhvi who sought 60 days time out to arrange the amount demanded by the court.

 

The Sahara group owns the hotel “Sahara Star” in Mumbai, a 5-star hotel spread over 7.42 acres adjacent to the Chhattrapati Shivaji International Airport. The group also owns the Grosvenor House Hotel in London (UK). Earlier in December 2012, it bought controlling stake in New York’s prestigious Plaza Hotel for $570 million.

 

According to a report from The Hindu, Justice KS Radhakrishnan, who retired last week and Justice JS Khehar, who recused himself from the case, made scathing comments and criticised Sahara group’s five lawyers of conscious snubs against the judges, bench hopping (avoiding), continuous adjournments and every other trick. "The judges in their 240-page order, said they were intimidated by the company’s lawyers, who wanted them to recuse. In their order, the justices lambasted senior advocates Ram Jethmalani, Rajeev Dhawan, Rakesh Dwivedi, S Ganesh and Ravi Shankar Prasad for 'arm-twisting the bench', " the report says.

 

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