Views on markets today
- Markets ended lower because of profit taking as crude oil prices which had eased yesterday following the landmark Iran deal staged a recovery nullifying the benefits of a lower import bill. As India imports most of its crude oil requirement, a lower import bill will help the country trim its current account deficit and also contain inflation.
- Market will remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month November to December and July-September GDP data on Friday.
The 30-share Sensex ended down 180 points at 20,425 and the 50-share Nifty slipped 56 points at 6,059. The Sensex and Nifty touched an intra-day low of 20,391 mark and 6,04- levels, respectively.
The main losers on the Sensex were Bharti Airtel, ICICI Bank, Coal India, ITC, HDFC, GAIL, Tata Steel, Dr Reddy's Lab, Sun Pharma and Maruti Suzuki.
- Among the 13 BSE Sectoral Indices 3 sectors closed in positive while 10 sectors ended the day in negative. Top Gainers: BSE Auto up by 0.49%, BSE Power by 0.36% and BSE Capital Goods by 0.32%. Top Losers: BsE Bankex down by 1.52%, BSE PSU by 1.36% and BSE Oil & Gas by 1.23%.
Market breadth was negative at ~0.72 as investors sold large cap stocks. On provisional basis, FII's sold Rs 3.39bn worth of Indian equities and DII's sold Rs 3.57bn worth of equities.
Economic and Corporate Developments
- The economy may have continued its sluggish run during the quarter ended September 2013, with many economists predicting sub 5% growth for the fourth consecutive quarter. Data on gross domestic product (GDP) for the September quarter are slated to be released on Friday.
Various economists and analysts have pegged GDP growth during the September quarter at 4.5-4.8%.
- Tax rates for companies in India are among the highest in the world and the number of payments is also more than the global average, putting the country at a low 158th rank on the 'Paying Taxes 2014' list.
However, the time taken for tax payments is relatively less in India, which is rated ahead of China and Japan where it takes 31- hours and 330 hours, respectively, to comply with tax regulations, according to a World Bank and PwC report.
Buzzing Stocks
- Sun Pharmaceutical Industries closed down 1.25% to Rs 573.30 on BSE after the company's unit Taro Pharmaceutical announced the start of a tender offer to buy back up to $200 million of its ordinary shares.
- Aban Offshore closed up 3.50% to Rs 372.60 on BSE, extending Monday's 20% surge triggered by hopes that the lifting of Western sanctions on Iran will improve oil exploration activity in the region.
- DIC India hit an upper limit of 20% for the second consecutive day to close at Rs 339.35 on BSE, extending Monday's 20% spurt triggered by the company's promoter proposing a voluntary delisting offer.
- IDBI Bank closed down 1.62% to Rs 63.75 on BSE after global ratings firm Standard & Poor's downgraded its rating on the bank to below investment grade citing expectations for weaker asset quality.
- United Spirits closed down 1.52% to Rs 2,581.05 on BSE after Diageo offered to sell a majority of the Whyte & Mackay whisky business due to competition concerns in the UK.
- Kalpataru Power Transmission closed down 0.76% to Rs 77.90 on BSE. The company touched an intraday high of Rs 83.40 but closed down on profit booking by the investors. The company in the morning announced that it has secured orders worth Rs 1007 crore.
- Six hospitality stocks rose by 1.02% to 5.29% on BSE after the central bank widened the definition of infrastructure lending to include hotels with project costing more than Rs 200 crores.
Indian Hotels Company (up 5.29%), Kamat Hotels (India) (up 4.03%), Hotel Leelaventure (up 3.79%), EIH (up 1.11%), Taj GVK Hotels & Resorts (up 1.02%) and Oriental Hotels (up 2.57%), edged higher.
- Four stocks exiting MSCI's global standard indices from today, 26 November 2013 fell by 4.06% to 7.67% on BSE.
Unitech (down 7.67%), Canara Bank (down 5.52%), Bank of India (down 4.84%) and Wockhardt (down 4.06%), edged lower.
- Shares of three public sector oil marketing companies fell by 2.28% to 6.33% on BSE as global crude oil prices traded mixed today, 26 November 2013, after trimming intraday losses on Monday, 25 November 2013.
BPCL (down 6.33%), HPCL (down 4.59%) and Indian Oil Corporation (down 2.28%), edged lower.
- Markets ended lower because of profit taking as crude oil prices which had eased yesterday following the landmark Iran deal staged a recovery nullifying the benefits of a lower import bill. As India imports most of its crude oil requirement, a lower import bill will help the country trim its current account deficit and also contain inflation.
- Market will remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month November to December and July-September GDP data on Friday.
The 30-share Sensex ended down 180 points at 20,425 and the 50-share Nifty slipped 56 points at 6,059. The Sensex and Nifty touched an intra-day low of 20,391 mark and 6,04- levels, respectively.
The main losers on the Sensex were Bharti Airtel, ICICI Bank, Coal India, ITC, HDFC, GAIL, Tata Steel, Dr Reddy's Lab, Sun Pharma and Maruti Suzuki.
- Among the 13 BSE Sectoral Indices 3 sectors closed in positive while 10 sectors ended the day in negative. Top Gainers: BSE Auto up by 0.49%, BSE Power by 0.36% and BSE Capital Goods by 0.32%. Top Losers: BsE Bankex down by 1.52%, BSE PSU by 1.36% and BSE Oil & Gas by 1.23%.
Market breadth was negative at ~0.72 as investors sold large cap stocks. On provisional basis, FII's sold Rs 3.39bn worth of Indian equities and DII's sold Rs 3.57bn worth of equities.
Economic and Corporate Developments
- The economy may have continued its sluggish run during the quarter ended September 2013, with many economists predicting sub 5% growth for the fourth consecutive quarter. Data on gross domestic product (GDP) for the September quarter are slated to be released on Friday.
Various economists and analysts have pegged GDP growth during the September quarter at 4.5-4.8%.
- Tax rates for companies in India are among the highest in the world and the number of payments is also more than the global average, putting the country at a low 158th rank on the 'Paying Taxes 2014' list.
However, the time taken for tax payments is relatively less in India, which is rated ahead of China and Japan where it takes 31- hours and 330 hours, respectively, to comply with tax regulations, according to a World Bank and PwC report.
Buzzing Stocks
- Sun Pharmaceutical Industries closed down 1.25% to Rs 573.30 on BSE after the company's unit Taro Pharmaceutical announced the start of a tender offer to buy back up to $200 million of its ordinary shares.
- Aban Offshore closed up 3.50% to Rs 372.60 on BSE, extending Monday's 20% surge triggered by hopes that the lifting of Western sanctions on Iran will improve oil exploration activity in the region.
- DIC India hit an upper limit of 20% for the second consecutive day to close at Rs 339.35 on BSE, extending Monday's 20% spurt triggered by the company's promoter proposing a voluntary delisting offer.
- IDBI Bank closed down 1.62% to Rs 63.75 on BSE after global ratings firm Standard & Poor's downgraded its rating on the bank to below investment grade citing expectations for weaker asset quality.
- United Spirits closed down 1.52% to Rs 2,581.05 on BSE after Diageo offered to sell a majority of the Whyte & Mackay whisky business due to competition concerns in the UK.
- Kalpataru Power Transmission closed down 0.76% to Rs 77.90 on BSE. The company touched an intraday high of Rs 83.40 but closed down on profit booking by the investors. The company in the morning announced that it has secured orders worth Rs 1007 crore.
- Six hospitality stocks rose by 1.02% to 5.29% on BSE after the central bank widened the definition of infrastructure lending to include hotels with project costing more than Rs 200 crores.
Indian Hotels Company (up 5.29%), Kamat Hotels (India) (up 4.03%), Hotel Leelaventure (up 3.79%), EIH (up 1.11%), Taj GVK Hotels & Resorts (up 1.02%) and Oriental Hotels (up 2.57%), edged higher.
- Four stocks exiting MSCI's global standard indices from today, 26 November 2013 fell by 4.06% to 7.67% on BSE.
Unitech (down 7.67%), Canara Bank (down 5.52%), Bank of India (down 4.84%) and Wockhardt (down 4.06%), edged lower.
- Shares of three public sector oil marketing companies fell by 2.28% to 6.33% on BSE as global crude oil prices traded mixed today, 26 November 2013, after trimming intraday losses on Monday, 25 November 2013.
BPCL (down 6.33%), HPCL (down 4.59%) and Indian Oil Corporation (down 2.28%), edged lower.
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