Views on markets today
- Markets ended flat with a positive bias after making a smart recovery in late trades led by IT shares. Indices reeled under selling pressure in early trades as investors turned cautious and booked profits on worries over lower-than-projected monsoon rains.
India Meteorological Department (IMD), the government's official weather forecaster on Monday said it expected monsoon rainfall this year to be 93 per cent of the 50-year average since 1950 (called long-period average or LPA), against the 95 per cent it had projected earlier — both levels are considered sub-normal. There are high chances of the emergence of an El Nino weather formation, obstructing the formation of clouds, it said.
The 30-share Sensex ended up 3 points at 25,584 and the 50-share Nifty ended up 2 points at 7,656. The Sensex and the Nifty touched an intraday low of 25,347 and 7,579 mark, respectively.
- Shares of six FMCG stocks fell by 0.21% to 1.05%, in the intraday trade, on BSE after the India Meteorological Department said rains this year will be below normal as the chances of El Nino occurring during monsoon are very high.
ITC (down 1.05% to Rs 335.10), Tata Global Beverages (down 0.96% at Rs 169.60), Marico (down 0.77% at Rs 249.80), Dabur India (down 0.82% at Rs 188), Godrej Consumer Products (down 0.18% at Rs 843.30), and Nestle India (down 0.21% at Rs 4,883.95) edged lower.
- Among the 12 BSE Sectoral indices, 6 indices closed in positive while 6 indices ended the day in negative. Top Gainers: BSE Consumer Durables up by 3.55% and BSE IT by 2.32%. Top Losers: BSE Realty down by 2.96% and BSE Oil & Gas by 0.96%.
Market breadth was sharply positive at ~1.3- as investors bought large cap stocks. On provisional basis, FII's bought Rs 6.83bn worth of Indian equities and DII's sold Rs 12.15bn worth of equities.
Economic and Corporate Developments
- Agriculture Minister Radha Mohan Singh has reaffirmed government's seriousness in tackling any situation arising out of poor monsoon rains as forecast by the Indian Meteorological Department.
In an official release, the Minister said that States have been suitably advised and sufficient food stocks are in place.
Contingency plans are already in place, States have been suitably advised, sufficient food stocks are in place, and quick action will be taken to tackle any situation arising out of deficient monsoon, he added.
Buzzing Stocks
- Two PSU OMCs lost 1.74% to 2.71%, in the intraday trading, on BSE as US crude oil futures advanced to a three-month high on signs of stronger global economic growth and concern that political tension in Libya will disrupt supplies.
HPCL (down 2.71% at Rs 432.30) and Indian Oil Corporation (down 1.74% at Rs 360.55), edged lower. Shares of BPCL were up 0.06% at Rs 614.90.
- Idea Cellular closed 0.82% down at Rs 145.25 on BSE after the company said it has decided to close the QIP and approved the issuance of 22.3- crore equity shares at an issue price of Rs 134 per share to qualified institutional buyers.
- Binny closed 2.80% up at Rs 189.15 on BSE after the company said its board of directors will meet on 12th June, 2014, to consider the proposal for rights issue of shares.
- Strides Arcolab lost 1.19%, in the opening trade, to Rs 608.50 on BSE, with the stock sliding on profit booking after recent rally triggered by the company securing USFDA nod for a generic medicine.
- Unitech closed 3.31% down at Rs 36.55 on BSE, with the stock reversing recent up move on profit booking.
- Bharat Heavy Electricals closed 2.87% down at Rs 255.60 on BSE, with the stock sliding on profit booking after recent rally.
- Geometric closed 3.43% up at Rs 146.45 on BSE after the company announced that it has signed an application maintenance contract with Volvo Cars, Sweden.
- Fourteen stocks gained by 1.05% to 4.98%, in the intraday trade, on the BSE on reshuffling as these stocks would be shifted back to rolling segment from trade to trade segment.
Ajmera Realty & Infra India (up 1.98%), Aksh Optifibre (up 4.95%), Avanti Feeds (up 5%), Binani Industries (up 4.98%), Dynamatic Technologies (up 2.53%), Educomp Solutions (up 4.9%), Hindustan Dorr-Oliver (up 4.9%), Phoenix Lamps (up 2.4%), Kothari Products (up 1.05%), MIRC Electronics (up 4.86%), Rohit Ferro-Tech (up 4.47%), Seamec (up 2.89%), S. Kumars Nationwide (up 4.98%) and Titagarh Wagons (up 2.77%) gained.
- Hero MotoCorp closed 2.32% down at Rs 2,662.60 on BSE on worries below normal monsoon rains this year will impact rural demand for two-wheelers.
Shares of TVS Motor Company closed down 0.72% at Rs 130.40, and shares of Bajaj Auto closed 0.26% down at Rs 2,150.80, also due to forecast of poor rain.
- Mcleod Russel India closed 1.04% down at Rs 299.25 on BSE after a bulk deal of 2 lakh shares was executed on the counter on BSE, yesterday.
- KPR Mill closed 4.46% up at Rs 194.35 on BSE after the company said that in order to meet increased demand in garment exports; it has initiated expansion plans in its garment business.
- Sun Pharmaceutical Industries closed 1.25% up at Rs 608.75 on BSE after a foreign brokerage house reiterated its overweight rating on the stock and raised its target.
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