Share prices may see more gains: Friday Closing Report

If the upmove continues, the Nifty may reach 5,210

Institutional buying in the second half of the session enabled the market to close in the positive, despite headline inflation for September hovering near the double-digit mark for the 10 month in succession. Yesterday, we had mentioned that the Nifty is ranged between 5,060 and 5,130. The index opened close to 5,060 and ended a little above 5,130. If the upmove continues, the Nifty may reach 5,210. The NSE (National Stock Exchange) saw a volume of 56.65 crore shares.

The market opened flat, tracking its Asian peers which were subdued in morning trade following reports that Standard & Poor’s had cut Spain’s long-term rating by one notch. Nervousness ahead of the release of India’s inflation figures for September also kept investors on the sidelines. The Nifty opened 21 points lower at 5,057 and the Sensex started the day at 16,837, down 47 points from its previous close. The opening figure was the intraday low for the Nifty, while the Sensex dipped to the day’s low in initial trade with the index at 16,828.

A minor recovery in healthcare, IT, consumer durables and oil & gas sector stocks helped the market trade in the positive zone. Unable to hold on to the initial gains, the indices slipped into the negative just before 10am. The indices sprang back into the green a short while later on institutional buying in select stocks.

Choppy trade continued with the market almost touching its previous close in the post-noon session on fears that the Reserve Bank of India may hike interest rates yet again in its quarterly policy review later this month as inflation continues to hover near the double-digit mark for 10 months in a row.

The market hit its intraday high in the last half hour with the Nifty rising to 5,141 and the Sensex scaling 17,112. The closing was a tad below those levels as the Nifty added 54 points to 5,132 and the Sensex rose to 17,083, a gain of 199 points.

The advance-decline ratio on the NSE was almost equal at 902:820.

Among the broader indices, the BSE Mid-cap index gained 0.55% and the BSE Small-cap index rose 0.31%.

BSE IT, BSE TECk (up 2.61% each), BSE Oil & Gas (up 1.53%), BSE Fast Moving Consumer Goods (up 1.09%) and BSE Auto (up 0.99%) were the top sectoral gainers. The losers were BSE Realty (down 1.36%), BSE Metal (down 0.56%), BSE Capital Goods (down 0.47%) and BSE PSU (down 0.37%).

The Sensex toppers were Jindal Steel (up 5.01%), TCS (up 4.01%), Wipro (up 3.98%), Bharti Airtel (up 3.76%) and Bajaj Auto (up 2.85%). Coal India (down 2.91%), Tata Steel (down 2.84%), DLF (down 2.68%), Maruti Suzuki (down2.65%) and Larsen & Toubro (down 0.74%) settled at the bottom of the index.

The key performers on the Nifty were Jindal Steel (up 5.36%), Wipro (up 3.98%), TCS (up 3.87%), Bharti Airtel (up 3.81%) and IDFC (up 3.57%). The major losers on the index were Sesa Goa (down 4.41%), Tata Steel (down 3.57%), DLF (down 3.02%), Coal India (down 2.94%) and Maruti Suzuki (down 2.72%).

Markets in Asia closed mostly lower as Chinese consumer inflation for September remained above the 6% mark at 6.1%. S&P’s downgrade of Spain’s long-term credit rating by one notch also weighed on investors’ sentiments.

The Shanghai Composite fell 0.30%; the Hang Seng declined 1.36%; the Jakarta Composite lost 0.29%; the KLSE Composite slipped 0.17%; the Nikkei 225 fell 0.85% and the Taiwan Weighted closed 0.95% lower. On the other hand, the Straits Times rose 0.37% and the Seoul Composite gained 0.67%.

Back home, foreign institutional investors were net buyers of stocks worth Rs670.08 crore on Thursday while domestic institutional investors were net sellers of shares worth Rs257.36 crore.

Tensions ran high at Maruti Suzuki India’s Manesar plant on Friday with about 1,500 police personnel entering the factory and asking the striking workers to vacate the premises as per the Punjab and Haryana High Court order. The workers, however, said they will not leave the factory unless forcibly evicted. The stock declined 2.72% to settle at Rs1029.50 on the NSE.

Nectar Lifesciences has received European approval for its Cephalosporin APIs manufacturing facility at Derabassi in Punjab. The certificate is accepted by all European Union health authorities besides several other countries, the company said. The stock soared 11.89% to close at Rs24 on the NSE.

The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs5 lakh on retail major Pantaloon for failing to address investor grievances within the stipulated timeframe. SEBI had earlier identified the Kishore Biyani-promoted firm as one of the companies against whom a large number of investor grievances were pending for more than six months as on 30th June last year. Despite the development, the stock gained 1.16% to close at Rs196.80 on the NSE.


Share prices range-bound for now: Thursday Closing Report

Nifty is ranged between 5,060 and 5,130

In yesterday’s closing report we had mentioned that for the upmove to be sustained, the Nifty will have to keep itself above 5,060 and should try to close above 5,130. Today the benchmark opened above the level of 5,130, made a higher high, higher low, but closed in the red above the support of 5,060. The market closed nearly half a percent lower amid choppy trade in the absence of any domestic triggers. A marginal dip in the weekly food inflation numbers for the week ended 1st October also did not offer any help. The Nifty saw a huge volume of 62.13 crore shares. This suggests that further advance would be difficult for now.

The market opened higher on global positive cues as hopes of easing of the debt crisis in Europe helped the US markets close in the green overnight and also boosted investor sentiments across Asia today. The Nifty opened at 5,131, up 32 points and the Sensex gained 90 points to resume trade at 17,048. Banking, realty and IT sectors supported the initial gains.

Amid volatile trade, the indices hit their intraday highs in the first hour itself with the Nifty going up to 5,137 and the Sensex climbing to 17,084. However, higher levels lured investors to indulge in profit-booking, resulting in the indices dipping into the negative at around 10.50am.

The market continued to hover on both sides of the neutral line in subsequent trade. The benchmark got a small boost in the noon session following a positive opening of the European markets, but the push was not strong enough as the market edged lower a short while later after the European bourses drifted southwards.

Seesaw trade continued with the Nifty touching its intraday low of 5,069 shortly after 2pm. The Sensex fell to the day’s low towards the end of the session with the index going back to 16,854. Closing near the intraday low, the Nifty fell 22 points to 5,078 and the Sensex was 74 points down at 16,884.

The advance-decline ratio on the NSE was almost equal at 829:818.

While the Sensex closed lower, the broader indices ended flat with a positive bias. The BSE Mid-cap index and the BSE Small-cap index added 0.03% and 0.06%, respectively.

BSE Bankex (up 1.04%), BSE IT (up 0.65%), BSE Realty (up 0.41%), BSE TECk (up 0.27%) were the gainers in the sectoral space. BSE Auto (down 1.48%), BSE Capital Goods (down 1.20%), BSE Healthcare (down 0.95%), BSE Oil & Gas (down 0.83%) and BSE Metal (down 0.75%) were the top losers.

ICICI Bank (up 2.22%), Tata Steel (up 1.63%), TCS (up 1.06%), DLF (up 0.89%) and State Bank of India (up 0.79%) were the top performers in the Sensex list. The laggards were led by Jindal Steel (down 3.45%), Tata Motors (down 3.09%), Hindalco Industries (down 3.01%), Maruti Suzuki (down 2.71%) and Tata Power (down 2.47%).

The major gainers on the Nifty were ICICI Bank (up 2.24%), HCL Technologies (up 2.10%), Tata Steel (up 1.81%), Cipla (up 1.36%) and TCS (up 0.96%). The key losers were Jindal Steel (down 4.77%), Hindalco Ind (down 3.35%), Tata Motors (down 3.18%), Ranbaxy (down 3.06%) and IDFC (down 3.04%).

Markets in Asia closed mostly higher on assurance from European policymakers that steps to recapitalise banks in the continent are taking shape. This apart, minutes of the US Federal Reserve’s 20th-21st September meeting released on Wednesday stated that the central bank is open to additional asset purchases to support the economy. These developments rekindled investors’ risk appetite.

The Shanghai Composite gained 0.78%; the Hang Seng surged 2.34%; the Jakarta Composite climbed 1.09%; the KLSE Composite advanced 1.15%; the Nikkei 225 rose 0.97%; the Seoul Composite was up 0.75% and the Taiwan Weighted settled 0.62% higher. On the other hand, the Straits Times lost 0.14% in trade today.

Back home, foreign institutional investors were net buyers of stocks worth Rs595.01 crore on Wednesday, whereas domestic institutional investors were net sellers of shares worth Rs106.55 crore.

Tiles-maker Somany Ceramics has signed a memorandum of understanding (MoU) to acquire a 26% stake in Vintage Tiles. The strategic stake purchase shall allow the company to market the entire quantity of polished vitrified tiles to be manufactured by VTPL. The stock jumped 4.47% to Rs47.95 on the NSE.

Wind power major Suzlon Energy has completed the sale of its entire shareholding in Hansen Transmissions to ZF Friedrichshafen AG for Rs890 crore. Suzlon held a 26.06% stake in Hansen Transmission through its Netherlands-based subsidiary, AE-Rotor Holding BV. The stock fell 0.79% to Rs37.75 on the NSE.

Bajaj Corp, the maker of Bajaj Almond Drops and Kailash Parbat brands of hair oils is in talks with several potential targets and has several consultants advising it on its plans to expand its presence. The company said that it is looking at acquisitions in the personal care segment, which would complement its core categories. The stock added 0.05% to Rs101.50 on the NSE.


Share prices rally against odds: Wednesday Closing Report

Nifty will target 5,130 and above. Support is at 5,060

The market closed 2.50% higher on support from IT and technology stocks following better-than-expected second quarter earnings from Infosys. Weak industrial data for August was ignored by investors as the market kept the momentum going, barring minor hiccups in noon trade. The Nifty made a huge move today to reach a zone which may see the index moving upwards. However, for this to be sustained, the index will have to keep itself above 5,060 and should try to close above 5,130. The National Stock Exchange (NSE) saw a volume of 56.17 crore shares, which was above its 10-day moving average.

The market opened higher on better-than-expected second quarter earnings report from IT bellwether Infosys, which was announced this morning. The Nifty opened above its psychological level of 5,000 at 5,020, a gain of 46 points, and the Sensex rose 124 points to resume trade at 16,660. IT, technology, metal and banking stocks supported early gains.

The market continued to accrue additional gains in the morning session, brushing aside a fall in the industrial output numbers for August. However, profit-booking at higher levels and a weak opening of the European markets following the Slovak parliament’s failure to approve the expansion of the European Financial Stability Facility resulted in the market paring some of its gains. The market fell to its lows at around 1.00pm with the Nifty retracing itself to 4,998 and the Sensex falling to 16,608.

All was not lost as buying in select stocks and the European indices recovering from the early hiccups pushed the market to a higher trajectory once more. The market hit its intraday high towards the end of trade with the Nifty scaling 5,110 and the Sensex touching 16,977. The market closed near those levels with the Nifty closing with a gain of 125 points at 5,099 and the Sensex surging 422 points to settle at 16,958.

The advance-decline ratio on the NSE was 1195:484.

Among the broader indices, the BSE Mid-cap index gained 1.40% and the BSE Small-cap index rose 1.18%.

All sectoral indices settled in the positive. The top gainers were BSE IT (up 5.21%), BSE TECk (up 3.83%), BSE Bankex (up 3.38%), BSE Realty (up 2.97%) and BSE Capital Goods (up 2.44%).

Infosys (up 6.83%) topped the Sensex list on posting better-than-expected second quarter results. It was followed by Jindal Steel (up 6.08%), State Bank of India (up 6.07%), TCS (up 3.66%) and Sterlite Industries (up 3.63%). Coal India (down 1.71%), Tata Power (down 1.56%) and Bharti Airtel (down 0.20%) were the losers on the index.

The Nifty gainers were led by Infosys (up 7.05%), SBI (up 6.54%), Tata Motors (up 5.23%), Jindal Steel (up 4.62%) and Kotak Bank (up 4.50%). The major losers were Coal India (down 2.53%), Tata Power (down 1.41%), BPCL (down 0.96%), Bharti Airtel (down 0.76%) and Ranbaxy (down 0.45%).

The Asian pack ended mostly higher led by China, following reports that the country’s sovereign wealth fund has been supporting banking shares, which have seen a sharp fall in their values.

The Shanghai Composite jumped 3.04%; the Hang Seng rose 1.04%; the Jakarta Composite climbed 2.95%; the KLSE Composite gained 1.19%; the Straits Times advanced 1.66% and the Seoul Composite inched up 0.81%. Bucking the trend, the Nikkei 225 lost 0.40% and the Taiwan Weighted shed 0.22%.

Back home, foreign institutional investors were net buyers of stocks worth Rs114.15 crore on Tuesday. Similarly, domestic institutional investors pumped in Rs108.17 crore into equities.

Hinduja flagship company Ashok Leyland is set to increase the prices of its commercial vehicles across models by 1% within a month. While the company did not specify the reasons for the proposed price hike, automobile companies have in the recent past been faced with high raw material and input costs. Ashok Leyland gained 1.02% to close at Rs24.85 on the NSE.

Private sector shipbuilder Pipavav Defence & Offshore Engineering (formerly Pipavav Shipyard) is betting big on exports to geographies like Latin America, Indonesia and Africa. Out of the total order book of around $1.5 billion, $710 million comprise exports as of now for the company. The stock fell 1.13% to close at Rs83.20 on the NSE.

Kale Consultants, a leading solutions provider to the airline and travel industry has unveiled a unique SIS Compliance Package for airlines. The package is a first-of-its-kind with standalone solutions; REVERA Interline billing solutions for passenger interline billing and FINESSE MBS for miscellaneous billing. This package will help airlines migrate to the SIS enabled world with ease. The stock settled 2.77% higher at Rs79.90 on the NSE.




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