The Nifty almost reached yesterday's low, but managed a flat close with a positive bias. A lower low or close below any previous day low may reverse the current upmove. A strong upmove may be possible above 5,870
The market managed a flat close with a positive bias helped by a late recovery amid a high degree of volatility. The Nifty almost reached yesterday's low, but managed a flat close with a positive bias. A lower low or close below any previous day low may reverse the current upmove. A strong may be upmove possible above 5,870. The National Stock Exchange (NSE) registered a volume of 61.05 crore shares and advance-decline ratio of 648:675.
The domestic market opened flat tracking the Asian markets which were weak in morning trade after a preliminary reading showed China’s factory output declined in April, re-igniting fears of a slowdown in Asia’s largest economy. Wall Street closed higher on Monday on bargain hunting, after last week’s decline on falling commodity prices.
Back home, the Nifty opened nine points up at 5,843 and the Sensex resumed trade at 19,210, a rise of 40 points over its previous close. The opening figures on the key market indicators were their intraday highs. The benchmarks were weighed down by selling pressure from banking, capital goods and fast moving consumer goods counters.
The indices continued to trend lower as trade progressed in the absence of any fresh triggers. The market touched its lows at around 12.30pm as selling in capital goods, banking, realty, PSU and consumer durables intensified. The Nifty fell to 5,792 and the Sensex retracted to 19,042 at their respective lows.
The market made a feeble attempt to bounce back, however, strong selling pressure kept the indices in the red in the second half of the trading session. But the benchmarks managed to emerge into the green in the last half hour of trade.
The market witnessed a flat close on political and economic concerns. The Nifty added three points (0.04%) to 5,837 and the Sensex rose 10 points (0.05%) to settle at 19,179.
The broader indices ended mixed, as the BSE Mid-cap index declined 0.38% and the BSE Small-cap index rose 0.36%.
The top gainers in the sectoral space were BSE Healthcare (up 0.66%); BSE IT (up 0.64%); BSE Oil & Gas (up 0.51%); BSE TECk (up 0.36%) and BSE Auto (up 0.12%). The main losers were BSE Capital Goods (down 1.29%); BSE Consumer Durables (down 1.14%); BSE Realty (down 0.67%); BSE Bankex (down 0.33%) and BSE PSU (down 0.32%).
Fifteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were Hero MotoCorp (up 2.87%); Sun Pharmaceutical Industries (up 2.51%); Bajaj Auto (up 2.40%); Reliance Industries (up 1.74%) and ICICI Bank (up 1.20%). The top losers were Jindal Steel & Power (down 3.76%); Larsen & Toubro (down 2.04%); State Bank of India (down 1.61%); HDFC Bank (down 1.41%) and Tata Motors (down 1.37%).
The top two A Group gainers on the BSE were—Indiabulls Real Estate (up 8.70%) and Amara Raja Batteries (up 4.75%).
The top two A Group losers on the BSE were—JSPL (down 3.76%) and Motherson Sumi Systems (down 72%).
The top two B Group gainers on the BSE were—Alka India (up 20%) and Kesoram Industries (up 19.96%).
The top two B Group losers on the BSE were—USG Tech Solutions (down 19.70%) and Taksheel Solutions (down 19.68%).
Of the 50 stocks on the Nifty, 22ended in the green. The key gainers were Bajaj Auto (up 2.93%); Hero MotoCorp (up 2.6%); Sun Pharma (up 2.58%); Kotak Mahindra Bank (up 2.14%) and Grasim Industries (up 1.76%). The main losers were JSPL (down 3.95%); DLF (down 1.91%); HDFC Bank (down 1.85%); SBI (down 1.72%) and L&T (down 1.69%).
Markets in Asia settled lower as HSBC's flash PMI data saw factory growth in China falling to 50.5 from March's reading of 51.6. Chinese financials fell over 6% on reports that non-performing loans rose 21% in the first quarter from a year earlier.
The Shanghai Composite tanked 2.57%; the Hang Seng dropped 1.08%; the Jakarta Composite declined 0.43%; the KLSE Composite fell 0.37%; the Nikkei 225 contracted 0.29%; the Straits Times dropped 0.74%; the Seoul Composite was down 0.40% and the Taiwan Weighted settled 0.35% lower.
At the time of writing, the CAC40 of France gained 1.84%; DAX of Germany was up 0.53% and UK’s FTSE 100 was 0.83% higher. At the same time, US stock futures were mixed with a negative bias.
Back home, foreign institutional investors were net buyers of shares totalling Rs915.82 crore on Monday whereas domestic institutional investors were net sellers of equities amounting to Rs442.53 crore.
IT software products manufacturer Rolta India today said its subsidiary, Rolta International, has won a contract to develop geospatial transportation solution for Nanging city in China. The solution will collect Nanjing’s transportation data from hundreds of sensors and provide dashboards to assist in traffic management and monitoring the environmental parameters in real-time to better handle the dramatic increase in demand on the city’s infrastructure. Rolta India fell 0.87% to Rs62.85 on the BSE.
Union Bank of India has raised $350 million from an overseas US-dollar denominated bond sale. The annual coupon has been fixed at 3.625% (US treasury plus 300 basis points). This is better than the initial guidance of US Treasury plus 315 basis points. The stock declined 1.62% to Rs237.30 on the NSE.
Pennar Industries has bagged orders worth Rs50 crore for cold formed profiles, tubes and engineered components. The Hyderabad-based company bagged these orders from Integral Coach Factory, Texmaco, J Kumar Infra Projects, ALF Engineering, IVRCL, and IJM Infrastructure. The stock gained 0.59% to close at Rs5.60 on the NSE.
Healthy loan growth and core net interest margins helped HDFC Bank achieve decent results for the last quarter of the 2013 fiscal
HDFC Bank reported total income of Rs11,127.5 crore for the quarter ended 31 March 2013, which was 21.1% higher than the Rs9,189.9 crore recorded in the corresponding period last year, while net interest income grew 20.65% to Rs4295.3 crore. The bank earned 30.1% higher net profit, at Rs1889.9 crore for the March 2013 quarter. The higher income was driven by loan growth of 22.7% and a core net interest margin of 4.5% (which is higher than the 4.4% recorded for the same period last year).
According to Moneylife database, the bank’s revenue grew below its three-quarter year-on-year (y-o-y) average of 24%, while its operating profit grew only 17% which is also below its three-quarter y-o-y average of 23%. Upon further examination, its revenue growth percentage has been declining albeit steadily, but it is still at healthy levels. Its valuation stood with market capitalisation quoting at 12.93 times operating profit while return on networth stood at a decent 22%.
Reflecting the stable asset quality provisions and contingencies were Rs300.5 crore for the quarter ended 31 March 2013 when compared to the Rs411.6 crore for the same period last year. The bank’s total capital adequacy ratio improved only slightly as it stood at 16.8% for the March 2013 quarter when compared to 16.5% last year.
The bank made slight progress in recovering bad assets as its gross non performing assets stood at 0.97% of gross advances as on 31 March 2013 when compared to 1.02% on 31 March 2012. However, net non performing assets remained the same, at 0.2% of net advances.
As of 31 March 2013, the bank added 518 branches during the 2013 fiscal, and has a distribution network of 3062 branches, 10,743 ATMs in 1,845 cities and towns, which is higher, when compared to 2,544 branches, 8,913 ATMs in 1,399 cities last year.
The board of directors recommended a dividend of Rs5.5 per equity share of Rs2 for the year ended 31 March 2013.
For other company results, please check this link: http://moneylife.in/investing/stocks
SEBI began the latest round of investigation after certain complaints were received by it against an alleged large-scale fund raising by the group without getting the necessary approvals
Amid growing public outrage over an allegedly fraudulent investment scheme run by the Saradha group, the Securities and Exchange Board of India (SEBI) has begun a fresh probe into the fund-raising activities of the Kolkata-based entity.
The capital market regulator is looking into whether its Collective Investment Scheme (CIS) regulations were violated while raising funds from the public, a senior official said.
Sources said that SEBI began the latest round of investigation after certain complaints were received by it against an alleged large-scale fund raising by the group without getting the necessary approvals, he added.
The CIS operations are regulated by SEBI and any entity raising funds through this route requires a prior approval from the capital markets regulator.
Such schemes typically involve collection of funds from public investors to be pooled for a pre-decided investment objective, but the regulations are very rigorous to thwart any bid to defraud the gullible investors through such products.
SEBI had earlier also looked into the activities of Saradha group and had informed the state government about the complaints received by it and its views on the case.
While CIS entities are regulated by SEBI, chit funds do not come under its jurisdiction and it is the state governments which are mainly responsible for acting against erring chit fund operators.
Besides fuelling huge protests in West Bengal by investors and agents, an alleged chit fund scam by Saradha group has also snow-balled into a political controversy with various parties blaming each other for not taking enough steps to rein in fraudulent deposit-taking activities.
West Bengal chief minister Mamata Banerjee had yesterday announced a high-level inquiry and also a SIT probe into the collapse of chit fund company of Saradha Group, which is said to have left thousands of investors in the lurch.
Banerjee also sought to blame the Centre for the fiasco. Meanwhile, a PIL was also filed yesterday in the Calcutta High Court seeking a CBI probe into the alleged scam.
The PIL has also demanded the arrest of Trinamool Congress-nominated Rajya Sabha MP Kunal Ghosh, who is Saradha Media's executive chairman, alleging complicity in the matter.
A look-out notice has been issued by the Kolkata Police, which is also investigating the case, for Saradha Group chairman Sudipto Sen.