Views on markets today
- Markets closed at a record high as President Pranab Mukherjee told the parliament on Monday that the new government will pursue a broad economic reform agenda focused on job creation through public and private investment that also makes containing inflation its top priority.
Also, the encouraging FII data helped aided the investor sentiment. Overseas investors bought shares worth Rs 1,283 crore on Friday, provisional exchange data shows.
At close, the Sensex was up 184 points at 25,580 and the Nifty added 71 points to end the day at 7,654. Earlier in the day, the Sensex had hit a high of 25,645.
- Shares of five defence equipment manufacturers rose by 2.51% to 5%, in the intraday trade, on BSE after President Pranab Mukherjee said that the government would liberalise foreign direct investments in defence.
Astra Microwave (up 2.51%), Walchandnagar Industries (up 5%), BEML (up 3.25%), Dynamatic Technologies (up 5%) and Bharat Electronics (up 3.29%) edged higher. Pipavav Defence and Offshore Engineering Company lost 5%.
- Shares of eight firms whose fortunes are linked to orders from Indian Railways gained by 1.02% to 10%, in the intraday trade, on BSE after Pranab Mukherjee said that modernization and revamping of Railways is on top of the government's infrastructure agenda.
Texmaco Rail & Engineering (up 10% at Rs 113.20), Titagarh Wagons (up 5% at Rs 297.70), Kernex Microsystems (India) (up 5% at Rs 76.05), Stone India (up 5% at Rs 33.80), BEML (up 4.98% at Rs 772.75), Kalindee Rail Nirman (Engineers) (up 5% to Rs 108.85), Hind Rectifiers (up 1.91% to Rs 58.60) and Container Corporation of India (up 1.02% to Rs 1192) edged higher.
- JSW Steel rose 1.57%, in the early trade, to Rs 1,306.00 on BSE after the company's crude steel production rose 6% to 10.6- lakh tonnes in May, 2014 over May, 2013.
- Among the 12 BSE Sectoral indices, 11 indices closed in positive while 1 index ended the day in negative. Top Gainers: BSE Realty up by 6.01%, BSE Capital Goods by 2.48% and BSE Power by 2.26%. Top Losers: BSE Oil & Gas down by 0.47%.
Market breadth was sharply positive at ~3.13 as investors bought large cap stocks. On provisional basis, FII's bought Rs 5.36bn worth of Indian equities and DII's sold Rs 4.90bn worth of equities.
Buzzing Stocks
- NTPC rose 0.76%, in the late morning trade, to Rs 166.65 on BSE on reports the company has invited bids for construction of the 1,320 megawatts Khargone thermal project in Madhya Pradesh, estimated to cost Rs 7,000 crore.
- IDBI Bank rose 2.63%, in the opening trade, to Rs 115.10 on BSE after the bank said its board has granted in principle nod for the proposal to raise equity capital to the extent of Rs 4,000 crore through qualified institutional placement/follow-on public offer.
- Suzlon Energy was locked at 5% upper circuit at Rs 32.85 on BSE, with the stock extending recent rally triggered by the company securing an order from ReNew Wind Power, India's leading IPP in the wind energy sector.
- Divi's Laboratories closed 1.94% up at Rs 1,295.00 on BSE after the company said that it has had an inspection by the USFDA, with no major observations, for its Unit-II at Bheemunipatnam Mandal, near Visakhapatnam.
- Reliance Communications closed 1.12% up at Rs 152.85 on BSE after the company announced the launch of One India, One Rate Plans, and a first-of-its’s-kind free National Roaming offer for post-paid and pre-paid GSM customers.
- Strides Arcolab closed 2.68% up at Rs 615.80 on BSE, with the stock extending Friday's 9.54% rally triggered by the company securing USFDA nod for a generic medicine.
- Dhanlaxmi Bank closed 5.64% down at Rs 56.20 on BSE, with the stock sliding on profit booking after recent steep rally after the bank said its board has approved preferential allotment of 4.39 crore shares at Rs 45.55 per share.
- Coal India closed 5.60% up at Rs 411.25 on BSE after President Pranab Mukherjee in his address to the joint sitting of Parliament said the government will formulate clear rules for allocation of coal, minerals and telecoms spectrum.
- Prism Cement closed 8.30% up at Rs 76.30 on BSE after 2.46% equity changed hands in two bulk deals on BSE yesterday.
- Cadila Healthcare closed 3.97% up at Rs 965.10 on BSE after the company said that the Zydus Group will be presenting data on its molecule ZYDPLA1, a novel compound in the Gliptin class of anti-diabetic agents.
- TCS closed 1.50% up at Rs 2,115.25 on BSE after the company said that TCS BaNCS for Insurance will enable Carriers to leapfrog the digital divide through Analytics and by leveraging ISO Electronic Rating ContentTM information.
- IRB Infrastructure Developers closed 2.45% up at Rs 219.35 on BSE after the company said its wholly owned subsidiary has executed concession agreement with National Highway Authority of India for a four-lane highway project.
- Idea Cellular closed 4.01% up at Rs 146.45 on BSE, with the stock extending Friday's gains triggered by the company's announcement that it intends to raise up to Rs 3,000 crore from QIP.
Economic and Corporate Developments
President Pranab Mukherjee in his joint address to the Parliament here said that containing food inflation will be the top priority for the new government, adding that putting the economy back on track is paramount for the new government.
The Narendra Modi government will also clamp down on hoarding and black marketeering and is preparing contingency plans for sub-normal monsoon rains, Mukherjee added.
Here are the top things the President said in his address:
1) Govt to rationalise, simplify tax regime which will be non-adversarial, will make all efforts to introduce GST.
2) Modernisation, revamp of railways top priority: Govt to launch a diamond quadrilateral project of high-speed trains; investment in railways to be increased.
3) Govt to encourage investments including FDI. Will fast-track investor-friendly PPP plan.
4) Govt to formulate national education policy. Also it plans to set up an IIT, IIM in every state. Schools will be e-enabled in a phased manner.
5) Govt to formulate new health policy. AIIMS like institutes to be set up in every state.
6) Govt to liberalise FDI in defence production, encourage private investment in defence production and initiate reforms in defence procurement. International civil nuclear agreements to be operationalized and nuclear power projects developed.
7) Will pursue coal sector reforms, Govt infra development plan to be implemented in 10 years. Time bound national highway plan.
8) Govt proposes proper housing to all citizens by 2022.
9) Zero tolerance for violence against women; Govt committed to 33% quota for women in Parliament.
10) Government to formulate a new health policy and roll out a national health insurance mission.
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