Nifty, Sensex, Bank Nifty end at record closing highs
09 May 2014
3:55 pm Opinion: Gautam Chhaochharia of UBS Securities sees the Nifty to hitting 7,800 if poll result meets market's expectations. On the flip side, in a hung parliament scenario, he cautions of 5,800-6,100 downside. ''In an uncertain scenario, market could come off sharply,'' he tells CNBC-TV18 in an interview. He believes that 6,900 level is the fair value for the Nifty.
Meanwhile, he adds that blue-chip stocks across various sectors like ICICI Bank, L&T and RIL have not become expensive yet, so he recommends buying market leaders. On spefiic stocks, he is positive on Bajaj Electricals, Kajaria Ceramics, Voltas and Carborundum.
Chhaochharia is overweight on the IT sector and those looking to build a portfolio should consider betting on this sector.
3:40 pm Market closing: Nifty, Sensex, Bank Nifty ended at record closing highs. Nifty ended above 6800 for first time ever at, Nifty was up 198.95 points or 2.99 percent at 6858.80. Nifty hit intra-day record high of 6871.35. Sensex hit intra-day record high of 23,048, and shut up 650.19 points or 2.91 percent at 22994.23. Bank Nifty hit intra-day record high of 13,814.25. Reliance Industries ends at 41-month closing high. Barring Pharma, all indices end trade in the green.
3:30 pm Market outlook: Ambreesh Baliga of Edelweiss was expecting the market rally to start early next week till May 15-16 but it has started earlier. Hence he suggests people to utilise this last leg possibly to book out to a certain extent because end of the day May 16 is going to be an uncertain event. "We don't know as to which way it could go. So it is better to have a bit of liquidity in the portfolio," he said.
3:20 pm Market alert: Nifty at record high, crosses previous high of 6870 hit at April 25. The Sensex is up 669.49 points or 3 percent at 23013.53.
3:15 pm Ranbaxy Q5:
The market is roaring with hefty gains supported majorly by banking stocks. The Sensex is up 620.52 points or 2.78 percent at 22964.56, and the Nifty gains 190.50 points or 2.86 percent at 6850.35. About 1483 shares have advanced, 1171 shares declined, and 141 shares are unchanged.
ICICI Bank, Coal India, Tata Power, HDFC Bank and Hindalco are major gainers in the Sensex. Among the laggards are Dr Reddy's Labs, Sun Pharma and TCS.
Asian markets end mixed following subdued Chinese inflation data. Europe is weak as Ukrainian pro-Russian secessionists plan to continue with a referendum this weekend.
The rupee is steady but cautious ahead of election outcome on the May 16. However, dollar purchases by PSU banks may restrict rupee's rise. Government bond prices are trading higher ahead of bond auction later today.
Meanwhile, lower-rated euro zone bond yields fell to fresh record lows and the common currency slid further on Friday as investors positioned for more monetary stimulus from the European Central Bank.
An upgrade by Standard & Poor's of its credit rating outlook for Portugal added to the positive sentiment and gave a further boost to Lisbon as the country prepares to exit its international bailout this month.
Investors are betting the ECB will cut interest rates next month, paving the way for potential further steps such as a bond-buying programme, after its president Mario Draghi said on Thursday the bank was ready to act in June if updated inflation forecasts merit it.
02:50pm Price Shockers: Stocks up 30% in 7 days
Stocks like Shyam Telecom (up 39.18 percent), Sterling Bio (up 38.20 percent), Atul (up 33.79 percent), Jindal Worldwide (up 32.71 percent) and Shasun Pharma (up 29.46 percent) have surged more than 30 percent in last seven trading sessions.
02:45pm Option premiums surge
The premium in the Nifty call options have gone up substantially along with surge in Implied Volatility (IV). Nifty 7000 call premium is up 97 percent at Rs 226.50. Nifty 7200 call premium is up 142 percent at Rs 152.10. Nifty 7500 call preium is up 212 percent at Rs 74.40.
02:40pm Largecap stocks at 52-week high
Heavyweights like Axis Bank, HPCL, ICICI Bank, Kotak Mahindra Bank, M&M, Reliance Industries and Reliance Infra were trading at year/multi-year highs in trade today.
02:35pm Banks minting money for traders
Bank Nifty has gained 26 percent since 1st March 2014. The banking index is now trading at all-time high. Yes Bank was the top gainer with close to 9 percent gains followed by ICICI Bank (up 5 percent), Kotak Mahindra Bank (up 4 percent), HDFC Bank (up 3 percent).
02:30pm Gujarat based stocks flying
Gujarat based stocks like Adani Enterprises (up 4 percent), Adani Ports (up 8 percent), Adani Power (up 6 percent), Torrent Power (up 7 percent) were buzzing in trade today with hefty gains.
02:20pm Broader markets outperform
Top gainers in the midcap space were HDIL (up 10.51 percent), Essar (up 6.51 percent), Torrent Power (up 6.03 percent), Voltas (up 5.80 percent) and IFCI (up 5.77 percent).
Ahmednagar Forging (up 16 percent), Dredging Corp (up 8.53 percent), Gulf Oil (up 8.41 percent), Nirlon (up 7.67 percent) and Monsanto India (up 7.57 percent) were top gainers in the smallcap space.
02:10pm Market Internals
Bank Nifty has gained over 4.3 percent which is the highest percentage gain since March 7. Nifty is now less than 30 points away from its record high of 6870. In the bond market, 10-yr bond yield has hit high of 8.72 percent, highest since March 12.
02:00pm The BSE Sensex has scaled to new all-time high price in the afternoon trade ahead of the election results outcome next Friday.The BSE Sensex is now within a striking distance of 23000. Nifty too has surpassed 6800 mark. Analysts believe this is a pre-election result rally and expect volatility to increase on either side as we move closer to exit polls and result day.
Banking stocks were major drivers in the 600-point rally today. Bank Nifty was now trading at all-time high prices led by gains in ICICI Bank, Axis Bank, Yes Bank and HDFC twins.
The Sensex was up 578.61 points or 2.59 percent at 22922.65, and the Nifty was up 184.75 points or 2.77 percent at 6844.60. About 1460 shares advanced, 1055 shares declined, and 141 shares were unchanged.
Top gainers in the Nifty were Ambuja Cements (up 6.94 percent), ICICI Bank (up 5.90 percent), IDFC (up 5.81 percent), ACC (up 5.38 percent) and Hindalco (up 5.27 percent).
Lupin (down 1.16 percent) and Dr Reddys Labs (down 0.68 percent) were only losers in the Nifty.
India VIX, a volatility index is now trading at 30-month high of 38.04.
1:50 pm Market alert: The Sensex has hit record high, is up 604.96 points or 2.71 percent at 22949.00, and the Nifty is up 181.00 points or 2.72 percent at 6840.85. About 1482 shares have advanced, 1019 shares declined, and 124 shares are unchanged.
1:40 pm Opinion poll: India is on course for a record turnout in its general election as a young electorate and women engage with politics more than ever before, with unpredictable results for a contest that opinion polls say opposition leader Narendra Modi will win.
The Modi-led Bharatiya Janata Party (BJP) and its allies are seen as favourites to come to power when results of the five-week election are announced on May 16, displacing the Congress-led coalition that is battling public fury over a slowing economy, high inflation and a spate of corruption scandals.
But regional parties will also play a key role, with most polls indicating that Modi's alliance will struggle to achieve a majority, falling short of winning 272 of the 543 seats in the Lok Sabha.
1:30 pm Steel output: ArcelorMittal , the world's largest steelmaker, trimmed its forecast for global steel use on Friday due to a more pronounced slowdown in China and a decline in Russia, though it retained optimism about its core European and US markets.
The company, which makes about 6 percent of the world's steel and is a broad gauge for the health of global manufacturing, said apparent steel consumption, which includes inventory changes, should increase by between 3.0 and 3.5 percent in 2014.
That compared with its previous forecast for growth of between 3.5 and 4 percent and last year's expansion of about 3.5 percent.
ArcelorMittal itself, which sells more than 85 percent of its steel in Europe and the Americas, retained its own forecast that it would report a core profit of some USD 8.0 billion in 2014, up from USD 6.9 billion in 2013.
The market rallies with Nifty reclaiming 6800 mark and the Sensex is up almost 500 points. The Sensex is up 509.51 points or 2.28 percent at 22853.55, and the Nifty is up 155.55 points or 2.34 percent at 6815.40.
About 1422 shares have advanced, 997 shares declined, and 128 shares are unchanged.
Stocks like ICICI Bank, HDFC, Ambuja Cement and Hindalco add to gains. Bank Nifty touched record highs. Midcaps and smallcaps too clocked strong gains.
From earnings corner though, Ranbaxy is top loser ahead of its earnings. Infact all pharma stocks- Sunpharma, Lupin are all down but today is all about gainers.
Gold prices were steady, supported by geopolitical tensions in Ukraine, with investors eyeing fund flows and Asian physical demand for further cues.
But the metal was on track to post its second straight weekly decline as more strong US data showed that the world's largest economy was recovering well, supportive of the Federal Reserve's stance to keep trimming monetary stimulus.
12:55 pm Interview: Sintex Industries' Group President Sunil Kanojia hopes to achieve 15 percent topline growth in FY15. He sees further improvement in their margins going forward, expecting them to trend between 18.5–19 percent after an upward drift of 150 bps YoY in Q4. With Rs 1174 crore of prefabricated revenue coming from their existing business, the company's prefabricated segment is seeing strong private demand for small units.
Despite debtors consistently being an area of concern in the monolithic business, volumes remain stable. Although, turnaround in monolithic business is dependent on favourable government, adds Kanojia. Improved utilisation levels led to operating leverage, he says in an interview with CNBC-TV18. Kanojia adds that promoters will be subscribing to upcoming warrants.
12:40 am Exclusive: Baring Private Equity Asia has revised talks to pick up a stake in ratings agency Credit Analysis & Research Ltd (CARE), CNBC-TV18 reports quoting sources.
In February this year, the Hong Kong-based private-equity fund had entered talks with a consortium of banks led by IDBI Bank but negotiations fell through the way on the pricing issue, according to earlier reports.
CARE is a professionally-managed ratings firm in which, between them, IDBI Bank (16.62 percent), Canara Bank (13.25 percent) and State Bank of India (6.04 percent) hold a total nearly 36 percent stake, and the banks have been looking to sell their respective stakes.
12:35 pm Market alert: The Sensex is up 477.17 points or 2.14 percent at 22821.21, and the Nifty is up 140.85 points or 2.11 percent at 6800.70. About 1398 shares have advanced, 922 shares declined, and 133 shares are unchanged.
12:20 pm Punita Kumar Sinha says: Market has factored-in NDA win, but not number of seats One cannot bet on pre-poll surveys. Majority in market are expecting BJP to even get 230-240 seats. Advise long-term investors to wait till poll outcome. If stable govt not in power, then economic fundamentals may be a problem.Will stay away from PSU banks at this point. Investors should buy post May 16. Will advise investing in companies having better valuations. Cyclical trade has a bigger upside. Recommend buying auto stocks.
Lok Sabha election result anticipation is driving the market higher. The Sensex is up 398.21 points or 1.78 percent at 22742.25 and the Nifty is up 117.60 points or 1.77 percent at 6777.45.
Bank stocks are on firewith Bank Nifty hitting record high, up 3 percent from previous close. Hindalco, ICICI Bank, HDFC, L&T and HDFC Bank are top gainers in the Sensex. Among the losers are Dr Reddy's and Sun Pharma.
About 1369 shares have advanced, 882 shares declined, and 113 shares are unchanged.
The rupee is steady in the absence of concrete global cues and on caution ahead of the India election outcome. PSU banks' dollar buys may restrict rupee's rise beyond 60 per dollar.
Gilts inch up as some market participants take positions before today's gilt auction. Participation in secondary market is seen to be muted ahead of auction outcome.
Asian markets trade with caution following a subdued inflation report from China and eyeing developments in eastern Ukraine. China's consumer price inflation rose an annual 1.8 percent in April below estimates of 2 percent.
Brent is steady above USD 108/bbl supported by concerns in Ukraine and Libya but is still on track for its second weekly loss. Gold holds near USD 1,280/oz levels with investors eyeing fund flows and Asian physical demand for further cues.
11:50am Buzzing Stock: Why is Glenmark Pharma trending lower post Q4?
Shares of Glenmark Pharma slipped 3 percent intraday on Friday after reporting March quarter results as revenue jumped 27.5 percent and EBITDA was at 22.4 percent vs 19.5 percent. However, its quarter profit was lower on account of Tarka settlement.
11.40am Stocks at life-high
Stocks like Arvind, Axis Bank, Bajaj Finance, Fulford India, NBCC and Ricoh India were trading at fresh life-high prices today.
11.30am Earnings boardroom
Sintex Industries ' Group President Sunil Kanojia hopes to achieve 15 percent topline growth in FY15. He sees further improvement in their margins going forward, expecting them to trend between 18.5–19 percent after an upward drift of 150 bps YoY in Q4. The stock is up 3 percent.
11.20am Wonderla Holidays listing: New kid on the block
Bangalore-based Wonderla Holidays debuted at the bourses on Wednesday at Rs 164.75 per share. It touched day's high of Rs 170 in early trade, up 36 percent from its issue price of Rs 125.
The amusement park company entered the primary market offering 1.45 crore equity shares, including 21,75,000 equity shares bought by anchor investors, in a price band of Rs 115-125 each. The company raised about Rs 27 crore from the anchor investors.
11.10am Midcaps shine
HDIL was the top gainer in the midcap space with gains of close to 7 percent. DB Realty (up 4.68 percent), Union Bank (up 4.44 percent), Indiabulls Real (up 4.13 percent) and Torrent Power (up 4.11 percent) also joined the list of top midcap gainers.
11.00am The benchmark index Sensex surged one percent in the morning trade as we inch closer towards vital events – May 13 (exit polls) followed by election outcome results on May 16. Heavy buying was seen in rate sensitives and cyclical stocks. Barring pharma all BSE sectoral indices were trading in green.
The Sensex was up 239 points or 1.07 percent at 22583.19, and the Nifty was up 72 points or 1.08 percent at 6732. About 1198 shares advanced, 745 shares declined, and 92 shares were unchanged.
Top gainers in the Nifty were Hindalco (up 3.03 percent), IDFC (up 2.90 percent), Ambuja Cements (up 2.62 percent), HDFC (up 2.32 percent) and HDFC Bank (up 2.19 percent).
Dr Reddys Labs (down 0.99 percent) was the top loser in the Nifty folowed by Sesa Sterlite (down 0.61 percent), Lupin (down 0.3 percent), Tata Motors (down 0.17 percent) and United Spirits (down 0.05 percent)
11:00 am Interview: Telecom major Bharti Airtel will invest USD 1 billion every year on its African operations over the next few years.
"Airtel will invest USD 1 billion in Africa per annum over the next few years," Bharti Enterprises Founder and Chairman Sunil Bharti Mittal said on the sidelines of the World Economic Forum.
Airtel has operations in 17 African countries. The company has deployed 3G network in 14 of them. Mittal, who is the co-chair of the event, said that company will focus on existing operations across 17 countries rather than expanding to newer markets.
10:45 am IPO Listing: Wonderla made a strong debut on the bourses, rising 36 percent on the first day of trading. It surged to a high of Rs 170 in morning trade against the issue price of Rs 125. It operates two amusement parks in South India.
Bangalore-based Wonderla entered the primary market offering 1.45 crore equity shares, including 21,75,000 equity shares bought by anchor investors, in a price band of Rs. 115-125 each. The company raised about Rs. 27 crore from the anchor investors.
Funds from the issue will be used to set up an amusement park in Hyderabad, the company's third after Bangalore and Kochi, and for general corporate purposes.
10:30 am Market outlook: Deven Choksey, MD of KR Choksey Shares & Securities says one must stay invested only in quality names, and should not take any undue risks, especially in the derivatives market ahead of the Lok Sabha election outocme.
"More or less the market has factored the possibilities in respective stocks. Also, there are opportunities available in some of the quality stocks be it in largecap, be it in the midcaps. So we stay invested with quality names and at this point of time don't even compromise on selection of the quality stocks at this point of time," he elaborates in an interview.
There is possibility of the market giving opportunities post the event, says Choksey.
The market has picked up pace as the Nifty hit 6700. The Nifty is up 53.50 points at 6713.35 and the Sensex is up 169.10 points at 22513.14. About 999 shares have advanced, 558 shares declined, and 60 shares are unchanged.
Hindalco, Tata Power, M&M, Bharti Airtel and Coal India are top gainers in the Sensex. Among the losers are GAIL, Dr Reddy's Labs, Sesa Sterlite, Tata Steel and Cipla.
The rupee falls slightly to 60.08/09 versus its previous close of 60.0650/0750, with broad gains in the dollar versus other majors hurting the Indian unit but mixed cues from other Asian currencies will keep the USD/INR pair rangebound.
Traders will monitor the share market for cues on foreign fund flows. The rupee rose to a one-month high of 59.9225 on Thursday and is seen moving in a 59.90 to 60.20 range during the session.
Asian shares mostly slumped on Friday as a tense situation in Ukraine made investors cautious, though a tame inflation report from China calmed some nerves.
The euro remained on a shaky footing after tumbling overnight when European Central Bank President Mario Draghi said that the central bank might act to stem slowing inflation and boost the euro zone economy.
MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.1 percent, on track for a slight weekly loss, but off session lows after data showed that China's inflation in April was broadly in line with expectations. Chinese consumer prices rose 1.8 percent in April from a year earlier while producer prices fell 2.0 percent.
9:55 am Results: Glenmark Pharmaceuticals posted consolidated net profit of Rs 43.41 crore for the fourth quarter ended March 31, 2014.
The company had posted 175.12 crore in the same quarter of the previous fiscal, 2012-13. "The net profit is not comparable due to exceptional item of Rs 217.53 crore on account of the provision made by Glenmark Generics Inc, USA towards the claims (including incidental expenses) of Abbott Laboratories in the patent litigation in respect of 'Tarka'," Glenmark Pharmaceuticals Ltd said in a statement.
After adjusting for exceptional item and apportioning tax on PBT, the net profit is Rs 215.3 crore for the fourth quarter as compared to Rs 175.1 crore, an increase of 22.94 percent over the same period of previous fiscal, it added. Consolidated net sales of the company rose to Rs 1,681.74 crore for the fourth quarter, as against Rs 1,335.48 crore in the same period of previous fiscal, Glenmark Pharma said in a statement.
9:45 am Buzzing: Sintex Industries jumped 7.2 percent as it reported 6.75 percent increase in consolidated net profit at Rs 161.17 crore for the quarter ended March 31.
Net sales of the company during the quarter under review stood at Rs 1,982.94 crore, an increase of 41.94 per cent, compared to Rs 1,396.69 crore in the corresponding period in the previous year, the company said in a BSE filing.
9:30 am Outlook: India will not be able to revert to high growth path of 7-8 per cent anytime soon even if it pursues a strong reforms agenda, says a report by Moody's. "Even if the new government pursues a strong reform agenda, the depth of the issues to be addressed means that India's economy is unlikely to return to previous growth rates of around 7-8 percent in the near future," the report said today.
Like in Brazil, India's government has only limited opportunities to provide some fiscal stimulus to offset a possible slowdown in capital flows, it said. The report expects the debt-to-GDP ratio to rise to more than 65 percent this year. Quoting the Institute of International Finance, the reports said that portfolio flows into India so far this year suggested that global investors continue to perceive attractive investment opportunities in India.
It was a soft opening on Dalal Street. The Sensex is up 32.70 points at 22376.74, and the Nifty is down 5.70 points at 6654.15. About 268 shares have advanced, 115 shares declined, and 22 shares are unchanged.
HDFC, BHEL, Tata Power, ONGC and Tata Motors are gainers in the Sensex. Among the losers are Dr Reddy's Labs, TCS, Tata Steel, Cipla and SBI.
The Indian rupee opened flat at 60.06 per dollar versus 60.06 Thursday.
The euro rose against the dollar trading not far from recent two-month highs and buoyed by a rise in overnight money market rates driven by dwindling excess cash in the euro zone. The currency has gained over 4 percent in the past six months.
Pramit Brahmbhatt of Veracity India said that, "Rupee is expected to trade weak today as overnight US equities traded weak. Uncertainty over election outcome and dollar demand from oil importers will help dollar trade strong. The range for the day is seen between 59.70-60.50/dollar."
In the US, stocks mostly declined, with the S&P 500 retreating after rising to within two points of its record close and the Nasdaq composite extending losses into a third day, as investors sorted through a mixed bag of earnings.
In commodities, Nymex crude fell driven by a drop in commercial crude stocks that topped out at a key technical level, while Brent fell as the market awaited developments in the Ukraine conflict.
From precious metals space, gold slipped further extending its declines, after ECB president Mario Draghi's comments that the bank may act to stem falling inflation at its June meeting knocked the euro.