Today market 5/6/14

Views on markets today

- The broader markets outperformed benchmark indices, rising nearly 2% on Wednesday as investors turned their focus on fundamentally sound mid-cap and small-cap stocks as valuations in large-cap stocks seem stretched after benchmark indices ended at record closing highs yesterday.

The 30-share Sensex ended down 53 points or 0.2% at 24,806 and the 50-share Nifty ended down 14 points or 0.2% at 7,402.

The BSE Mid-cap index ended up 1.8% and Small-cap index ended up 1.9%.

- Shares of a total of - firms involved in life insurance business were up 1.4% to 12.86%, in the intraday trade, on renewed buying following recent media reports the finance ministry could recommend an increase in the limit on foreign direct investment in insurance sector.

Max India was up 12.86% at Rs 337. Bajaj Finserv was up 6.97% at Rs 935. Reliance Capital was up 6.13% at Rs 625.90. Religare Enterprises was up 4.8% at Rs 370.10. Aditya Birla Nuvo was up 3.2% at Rs 1,397.85. Exide Industries was up 3.3% at Rs 148.85. State Bank of India was up 1.56% at Rs 2,685.50. ICICI Bank was up 1.4% at Rs 1,478.80. Shares of HDFC were off 0.36% at Rs 909.40. All these firms have their presence in the life insurance sector either directly or through joint venture with foreign companies.

- Among the 12 BSE Sectoral indices, - indices closed in positive while 4 indices ended the day in negative. Top Gainers: BSE Realty up by 1.55% and BsE Capital Goods by 1.25%. Top Losers: BSE IT down by 1.27% and BsE Oil & Gas by 1.26%.

Market breadth was sharply positive at ~2.26 as investors bought large cap stocks. On provisional basis, FII's bought Rs 1.92bn worth of Indian equities and DII's sold Rs 1.91 bn worth of equities.

Economic and Corporate Developments

- Finance Minister Arun Jaitley will start his pre-budget consultations with various stake holders from today. The budget is likely to be presented in the first week of July.

The first to interact with him would be representatives from agriculture sector, an official statement said here.

The consultations assume importance in the wake of fears expressed in various quarters over emergence of El Nino that may reduce the monsoon rain. Indian Meteorological Department (IMD) has forecast a slight sub-normal rain in the 2014 monsoon.

Buzzing Stocks

- Shares of five fertiliser companies were up 1.8% to 10%, in the intraday trade, on reports that fertiliser ministry has prepared a roadmap for rationalisation of subsidy for the sector.

National Fertilizer was locked at 10% upper circuit at Rs 44.90 on BSE. Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) was up 6.9% at Rs 101.50. Chambal Fertiliser & Chemicals was up 5.4% at Rs 52.50. Gujarat State Fertilizers & Chemicals (GSFC) was up 4.6% at Rs 79.55. Tata Chemicals was up 1.8% at Rs 314.55.

- Reliance Industries closed 1.54% down at Rs 1,077.90 on BSE after the company announced that a minor fire broke out on Tuesday, 3rd June, 2014, morning in the finishing line of poly butadiene rubber plant in Vadodara.

- Maruti Suzuki India closed 1.30% up at Rs 2,373.20 on BSE after the company said that its total production jumped 20.11% to 1.21 lakh units in May, 2014 over May, 2013.

- Biocon closed 2.62% up at Rs 453.75 on BSE after the company's subsidiary Syngene International announced a five-year extension of its drug discovery and development collaboration with Bristol-Myers Squibb.

- Bharat Electronics closed 1.10% up at Rs 1,730.95 on BSE after the company said its order book stood at Rs 23,200 crore as on 1st April, 2014.

- Orbit Corporation closed 8.41% up at Rs 25.15 on BSE after Morgan Stanley Asia Singapore PTE acquired 1.09% stake in the company through block deal on Tuesday, 4th June, 2014.

- Trent closed 0.77% up at Rs 1,051.25 on BSE after the company said that UK-based Tesco has completed purchase of part of the equity shares held by Trent in its wholly-owned subsidiary Trent Hypermarkets.

- Welspun Corp closed 13.82% up at Rs 98.00 after the Welspun Group acquired 3.124% equity shareholding in the company from MULHEIM PIPECOATINGS GmbH, a copromoter of Welspun Corp, at a per share price of Rs 85.25 per share.

- Shares of Tata Steel and Steel Authority of India closed up by 2.06% to 4.86%, respectively, on bSe, with both these stocks extending their gains triggered by reports the two steel makers have restarted most of their iron ore mines in Odisha.