Higher high on the Nifty and a close above 5,710 may result in the upmove continuing
The market settled higher on buying in blue chips and global support. Yesterday we had mentioned that the downtrend has been arrested for now and a small upmove maybe witnessed if the Nifty closes decisively above 5,685. Today the index opened above this level and moved in a narrow range throughout the trading session. The index hit a six day intraday high (including today) of 5,711. It, however, closed at the same level at which it opened the session today. From here if the index manages to make a higher high and close above 5,710 we may see the upmove continuing. The National Stock Exchange (NSE) saw a volume of 62.44 crore shares and advance decline ratio of 992:706.
The Indian market opened in the green on a good set of quarterly numbers reported by IT major Wipro and positive global cues. The IT major reported a 23.8% jump in consolidated net profit for the September quarter to Rs1,610.6 crore. On the global front, US stocks closed higher overnight on better-than-expected jobs and consumer confidence numbers. In line with the US markets, the Asian pack was in the positive in morning trade.
The Nifty opened 51 points higher at 5,696 and the Sensex surged 130 points to start the day at 18,692. Both the indices hit their intra day low in the morning session itself. The Sensex and the Nifty hit a higher low of 18,688 and 5,683 respectively, the highest since 26 October 2012. With most of the European indices opening in the positive, the domestic indices hit their respective intra-day high in the second half of trade. The Sensex hit a high of 18,794 while the Nifty hit a high of 5,711.
While the indices started slipping after scaling their highs, they ended in the positive. The Sensex closed at 18,755 (194 points up or 1.04%) and the Nifty closed at 5,698 (53 points up or 0.93%). The percentage gain of 1.04% on the Sensex was the highest since 24 September 2012.
While the Sensex closed over 1% up today, the broader indices though closed in he green, could not match its performance. The BSE Mid-cap index gained 0.36% and the BSE Small-cap index rose 0.33%.
All the sectoral indices ended in the positive. The main gainers were BSE Capital goods (up 1.74%); BSE PSU (up 1.52%); BSE Auto (up 1.49%); BSE Bankex (up 1.30%) and BSE IT (up 1.15%).
Twenty six of the 30 stocks on the Sensex closed in the positive. The chief gainers were GAIL India (up 3.75%); Bajaj Auto (up 2.90%); Larsen & Toubro (up 2.68%); ICICI Bank (up 2.12%) and Hero MotoCorp (up 2.11%). The losers were Bharti Airtel (down 2.12%); Jindal Steel, Hindustan Unilever (down 0.80% each) and Sun Pharma (down 0.46%).
The top two A Group gainers on the BSE were—Union Bank (up 8.14%) and MMTC (up 6.74%).
The top two A Group losers on the BSE were—Marico (down 4.47%) and Indiabulls Financial Services (down 3.01%).
The top two B Group gainers on the BSE were—Birla Ericsson (up 20%) and Kwality Dairy (up 20%).
The top two B Group losers on the BSE were—Hazoor Multi Projects (down 11.95%) and Zylog Systems (down 9.99%).
Out of the 50 stocks listed on the Nifty, 42 stocks settled in the positive. The key gainers were GAIL (up 4.20%); Bajaj Auto (up 2.76%); L&T (up 2.49%); ICICI Bank (up 2.36%) and Lupin (up 2.29%). Among the losers were Bharti Airtel (down 2.19%); Jindal Steel (down 1.12%); Hindustan Unilever (down 0.65%); BPCL (down 0.50%) and Jaiprakash Associates (down 0.45%).
One of the developments which happened today was that the government said it would soon come out with a 10-year action plan to strengthen the power generation sector. The ministry of heavy industries and public enterprises is finalising the “Road Map for Power generation, transmission and distribution 2022”. The action plan is expected to be finalised next month after taking views from all the parties concerned, ministries and departments.
Except for KLSE Composite and NZSE 50 all the Asian indices ended in the green. The major gainer was Hang Seng index which rose 1.33% while the major loser was KLSE Composite which fell 1.17%
At the time of writing, the European indices were trading in the red, and the US stock futures were mixed with a negative bias.
Realty firm DLF today said it has received Rs 2,727 crore in full from Lodha Developers against the sale of 17-acre land in Mumbai and will utilise almost entire proceeds to cut whopping debt of over Rs 22,000 crore. In August, DLF had announced sale of this land parcel, which it had purchased in 2005 for Rs 703 crore. DLF had got Rs 500 crore as advance and Lodha paid the balance Rs 2,227 crore yesterday to complete the acquisition. The stock gained 0.29% to settle at Rs204.95 on the NSE.
Aban Offshore has received an approval for raising of long term funds through issue of equity related securities to Qualified Institutional Buyers under the QIP route, subject to approval of members. The board at its meeting held on 1 November 2012 has approved for the same. The stock declined 0.96% to close at Rs439.70 on the NSE.
A sector-wise analysis of credit growth in Indian banks projects 14% loan growth in FY13F for aggregate non-food credit growth, according to Nomura Equity Research
Indian banks are looking at strong growth in lending rates for FY13F assuming all the major sectors add loans similar to the quantum seen in 2HFY12. Nomura Equity Research believes that aggregate non-food credit growth of 14% is possible as is industrial lending growth rate at 14%. The growth in lending for the agri sector would be 18%, that for SME would be 7.6% and retail loan growth may be around 14%.
The brokerage has used the monthly frequency loan data released by the RBI (Reserve Bank of India) for the month ended September 2012. Now that there is detailed loan data for the first half of FY13, Nomura has analysed the potential scenarios for FY13F loan growth and the implied growth rates for the various subsectors:
Forecasting dividend may not be an easy task but it makes sense to analyse the key trends in dividend to have an idea about how good the company will deliver in terms of rewarding investors in the form of dividend