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.

Markets as on 4/6/14

Views on markets today

- Benchmark share indices ended at record closing highs as the cut in statutory liquidity ratio, announced by the Reserve Bank of India at its policy meet, will help inject liquidity, paving the way for credit growth revival.

The 30-share Sensex ended higher by 174 points at 24,859 and the 50-share Nifty closed higher by 53 points at 7,316. The Sensex and Nifty touched an intra-day high of 24,892 and 7,425 levels, respectively.

- Twelve bank shares fell by 0.17% to 2.02%, in the late morning trade, on BSE after the Reserve Bank of India left key interest rates unchanged at the monetary policy review yesterday.

Bank of India (down 2.02%), IndusInd Bank (down 1.86%), IDBI Bank (down 1.68%), Canara Bank (down 1.54%), Kotak Mahindra Bank (down 1.36%), Union Bank of India (down 1.28%), Punjab National Bank (down 1.11%), Bank of Baroda (down 0.99%), Yes Bank (down 0.72%), ICICI Bank (down 0.69%), HDFC Bank (down 0.44%) and Federal Bank (down 0.17%), edged lower.

- Nine metal shares rose by 0.37% to 6.28%, in the intraday trade, on BSE, extending Monday's rally triggered by strong Chinese data.

Sesa Sterlite (up 6.28%), Hindustan Zinc (up 4.49%), Tata Steel (up 3.99%), JSW Steel (up 3.81%), Jindal Steel & Power (up 2.76%), Steel Authority of India (Sail) (up 2.67%), Hindalco Industries (up 2.60%), Bhushan Steel (up 1.30%) and NMDC (up 0.37%), edged higher.

- Tata Motors closed 0.15% down at Rs 420.45 on BSE after the company said its total sales (including exports) of Tata commercial and passenger vehicles fell 24% to 37,525 vehicles in May, 2014 over May, 2013.

- Among the 12 BSE Sectoral indices, - indices closed in positive while 4 indices ended the day in negative. Top Gainers: BSE Metal up by 5.06% and BSE Realty by 3.15%. Top Losers: BSE FMCG down by 0.75% and BSE Healthcare by 0.50%.

Market breadth was sharply positive at ~1.71 as investors bought large cap stocks. On provisional basis, FII's bought Rs 5.75bn worth of Indian equities and DII's bought Rs 0.99bn worth of equities.

Economic and Corporate Developments

- The Reserve Bank of India (RBI) in the bi-monthly monetary policy review on Tuesday kept the repo rate unchanged at 8% as per the street's expectations. The Cash Reserve Ratio (CRR) was also unchanged at 4% of net demand and time liabilities (NDTL).

However, the Statutory Liquidity Ratio (SLR) was reduced by 50 basis points to 22.5% of banks NDTL with effect from the fortnight beginning June 14, 2014. Besides, RBI also reduced the liquidity provided under the export credit refinance (ECR) facility from 50% of eligible export credit outstanding to 32% with immediate effect. The SLR cut will be effective June 14, 2014.

Buzzing Stocks

- Zee Entertainment Enterprises closed 2.13% up at Rs 271.05 on BSE after the Reserve Bank of India allowed foreign institutional investors to purchase up to 100% of the paid-up capital of the company.

- Ashok Leyland closed 1.67% up at Rs 33.40 on BSE, even after the company said its total sales fell 9% to 6,632 units in May, 2014 over May, 2013.

- ITC closed 1.16% down at Rs 333.45 on BSE after turning ex-dividend for a dividend of Rs 6 per share for the financial year ended 31st March, 2014.

- Uflex closed 5.38% down at Rs 117.00 on BSE, with the stock sliding on profit booking after Monday's 19.58% rally triggered by the company reporting strong Q4 earnings.

- Ipca Laboratories closed 1.49% up at Rs 800.00 on BSE after the company inked an agreement with US-based Oncobiologics Inc to develop and manufacture bio similar monoclonal antibody products.

- Hero MotoCorp closed 2.96% up at Rs 2,455.75 on BSE, with the stock extending Monday's gains triggered by the company reporting decent sales in May, 2014.

- Hindustan Unilever closed 1.51% down at Rs 592.00 on BSE, with the stock sliding on profit booking after recent rally.

- Eicher Motors closed 5.07% up at Rs 7,206.65 on BSE after the company reported 86% rise in total motorcycle sales to 25,011 units in May, 2014 over May, 2013.

- Ruchi Soya Industries closed 4.36% up at Rs 44.25 on BSE, with the stock recovering on bargain hunting after recent slide.

- Arvind closed 2.24% up at Rs 196.20 on BSE, with the stock extending Monday's gains triggered by the company's joint venture with OG Corporation of Japan inaugurating its manufacturing facilities near Ahmedabad, Gujarat, on 31st May, 2014.

- Tata Chemicals closed 2.66% up at Rs 309.00 on BSE, with the stock recovering on bargain hunting after recent slide.

- Venus Remedies closed 2.05% up at Rs 288.95 on BSE after the company said its novel antibiotic product received European patent.

- India Nippon Electricals closed 3.07% down at Rs 208.45 on BSE as the stock turned ex-dividend on, 3rd June, 2014, for second interim dividend of Rs 5 per share for the year ended 31st March, 2014.

- Hubtown closed 3.12% down at Rs 175.40 on BSE after the promoters have offered to sell an aggregate of 54.4- lakh equity shares, representing 7.49% of the paid-up equity share capital of the company.

- Network 1- Media & Investments closed 5.47% down at Rs 51.85 on BSE on profit booking after the stock surged 43.77% in the preceding five trading sessions to Rs 54.85 on 2nd June, 2014, from a recent low of Rs 38.15 on 26th May, 2014.

Today's market 03/06/14

Views on markets today

- Markets ended on a strong note on account of strength in the capital goods space and a bounce back in the banking counters ahead of the RBI policy meeting on Tuesday. The Sensex closed at 24,685, stronger by 46- points and the Nifty was up 133 points at 7,363.

The mid and smallcap scrips were back in demand. The smallcap and midcap indices advanced over 2% each in the day's trade.

- Shares of - companies that run insurance business rose by 2.31% to 11.19% on BSE on reports the finance ministry could recommend an increase in the limit on foreign direct investment in insurance sector to 49% from 26%.

Reliance Capital (up 11.19%), Max India (up 11.02%), Aditya Birla Nuvo (up 4.39%), State Bank of India (up 4.23%), Religare Enterprises (up 2.89%), ICICI Bank (up 2.80%), Bajaj Finserv (up 2.63%) and HDFC (up 2.31%), edged higher.

- Shares of nine metal firms rose by 0.09% to 4.70% on BSE after strong Chinese data.

Jindal Steel & Power (up 4.70%), Steel Authority of India (Sail) (up 4.11%), NMDC (up 3.79%), Tata Steel (up 2.27%), Hindalco Industries (up 1.59%), Hindustan Zinc (up 1.53%), Bhushan Steel (up 0.72%), JSW Steel (up 0.49%) and Sesa Sterlite (up 0.09%), edged higher.

- L&T closed 6.23% up at Rs 1,645.40 on BSE after net profit surged 69% to Rs 2,723 crore on 11% growth in gross revenue to Rs 20,229 crore in Q4 March, 2014 over Q4 March, 2013.

- Maruti Suzuki India closed 2.53% up at Rs 2,326.85 on BSE after the company said its total sales rose 19.2% to 1 lakh units in May, 2014 over May, 2013.

- Hero MotoCorp closed 1.76% up at Rs 2,385.10 on BSE after the company said on Sunday, 1st June, 2014, its sales rose 8% to 6.02 lakh units in May, 2014 over May, 2013.

- Among the 12 BSE Sectoral indices, 10 indices closed in positive while 2 indices ended the day in negative. Top Gainers: BSE Capital Goods up by 4.93% and BSE Bankex by 3.28%. Top Losers: BSE Healthcare down by 0.92% and BSE FMCG by 0.82%.

Market breadth was sharply positive at ~1.95 as investors bought large cap stocks. On provisional basis, FII's bought Rs 2.34bn worth of Indian equities and DII's sold Rs 1.48bn worth of equities.

Economic and Corporate Developments

- Manufacturing activity inched up in May compared to the previous month, according to the widely-tracked HSBC Purchasing Managers' Index (PMI). The index for manufacturing rose marginally to 51.4 points in May from 51.3 points in April. Any score above 50 points shows growth.

Buzzing Stocks

- Cox & Kings closed 7.91% up at Rs 182.10 on BSE after the company reported a consolidated net loss of Rs 46 crore in Q4 March, 2014, lower than net loss of Rs 49 crore in Q4 March, 2013.

- M&M closed 0.81% up at Rs 1,240.45 on BSE after the company disclosed its sales numbers for the month of May, 2014 on Sunday, 1st June, 2014.

- Ruchi Soya Industries closed 3.75% down at Rs 42.40 on BSE after the company reported a net loss of Rs 9.65 crore in Q4 March, 2014 as compared to net profit of Rs 78.5- crore in Q4 March, 2013.

- Bajaj Auto closed 1.16% up at Rs 1,975.90 on BSE after the company said its total vehicle sales rose 4% to Rs 3.51 lakh units in May, 2014 over May, 2013.

- NMDC closed 3.38% up at Rs 175.95 on BSE after net profit surged 33.93% to Rs 1,962.14 crore on 17.6% growth in total income to Rs 4,412.03 crore in Q4 March, 2014 over Q4 March, 2013.

- Uflex closed 19.58% up at Rs 123.65 on BSE after consolidated net profit rose 45.9% to Rs 60.10 crore on 17.5% increase in net sales to Rs 1,376.87 crore in Q4 March, 2014 over Q4 March, 2013.

- Shalimar Paints closed 8.02% down at Rs 82.55 on BSE after the company reported a consolidated net loss of Rs 10.29 crore in Q4 March, 2014 as against net profit of Rs 0.37 crore in Q4 March, 2013.

- Easun Reyrolle closed 5.26% down at Rs 74.80 on BSE after the company reported a net loss of Rs 16.0- crore in Q4 March, 2014 as against net profit of Rs 12.46 crore in Q4 March, 2013.

- REI Agro was locked at 5% upper circuit at Rs 2.87 on BSE after the company reported a net loss of Rs 49.70 crore in Q4 March, 2014 as against net profit of Rs 67.73 crore in Q4 March, 2013.

- Coal India closed 0.59% up at Rs 373.35 on BSE after the company and its subsidiaries achieved 94% of targeted production at 36.27 million tonnes in May, 2014.

- Jyoti Structures was locked at 10% lower circuit at Rs 54.90 on BSE after the company reported a net loss of Rs 12.53 crore in Q4 March, 2014 as compared to net profit of Rs 22.20 crore in Q4 March, 2013.

- Pipavav Defence and Offshore Engineering Company closed 3.55% down at Rs 65.20 on BSE on profit booking after the stock surged 57.76% in the preceding 11 trading sessions to Rs 67.60 on 30th May, 2014, from a recent low of Rs 42.85 on 15th May, 2014.

- Arvind closed 4.61% up at Rs 191.90 on BSE after the Arvind OG Nonwovens, a joint venture between Arvind and OG Corporation of Japan, inaugurated its manufacturing facilities near Ahmedabad, Gujarat, on 31st May, 2014.

- Tata Power closed 2.02% up at Rs 105.95 on BSE after the company said it commissioned its second 25 megawatts solar farm in Palaswadi, Maharashtra.

Today's market as on 02/05/14

- The markets ended the last session of the week and the first day of the June derivatives series on a monotonous, albeit choppy, note in the absence of any enthusing cues from the global front. The Sensex was stuck in a narrow range of around 150 points before ending at 24,217, lower by 16 points and the Nifty ended below the crucial psychological support level of 7,250 at 7,230, down 5 points.

- Shares of 6 defence equipment manufacturers rose by 2.44% to 20% on BSE on media reports of potential increase in foreign direct investment limit in the sector to 100% from current 26%.

- Astra Microwave (up 20%), Walchandnagar Industries (up 10%), BEML (up 7%), Dynamatic Technologies (up 5%), Pipavav Defence and Offshore Engineering Company (up 5%) and Bharat Electronics (up 2.44%), edged higher.

- Rail-related shares surged on media reports that the government is likely to announce foreign direct investment policy for railways soon. Kernex Microsystem closed 7.34% up at Rs 74.55, Kalindee Rail Nirman closed 5% up at Rs 103.35 and Titagarh Wagons closed 5% up at Rs 250.10.

- Among the 12 BSE Sectoral indices, 10 indices closed in positive while 3 indices ended the day in negative. Top Gainers: BSE Healthcare up by 2.59% and BSE Realty by 2%. Top Losers: BSE Consumer Durables down by 1.78% and BSE Bankex by 1.59%.

Market breadth was positive at ~1.13 as investors bought large cap stocks. On provisional basis, FII's bought Rs 29.77bn worth of Indian equities and DII's sold Rs 4.58bn worth of equities.

NIFTY BUY OR SELL FOR 19 MARCH 2014

VIEW ON NIFTY

BEARISH ONLY BELOW 6451 TGT 6169 STOPLOSS 6529

BULLISH ABOVE ONLY 6558 TGT 6678 STOPLOSS 6481 

NIFTY BUY OR SELL CALLS FOR TOMORROW MARKETS

NIFTY VIEW :


Bearish, only if below 6438, target 6157; stop-loss: 6527.

            Bullish,  only if above 6545, target 6676; stop-loss: 6468.                          

IFCI MAY BUYS IDBI STAKE IN SHCIL

AS THE NEWS IFCI MAY BUYS IDBI STAKE IN SHCIL. ITS WILL HELP TO IDBI BANK TO REDUCE ITS SOME DEBTS OF COMPANY. AS WELL AS IFCI MAY ALSO COME SOME LOSS DUE PURCHASE OF SHCIL. AS PER THE MARKET SENTIMENTS NO USE OF TAKING STAKE OF SHCIL,IN SUCH TIME IFCI WILL COME IN MORE LOSSES.AND NOT ONLY INCREASE DEBTS BUT ALSO INCREASE EXPENSES OF THE COMPANY. IN 2009 NEWS COME THAT IDBI IS BUYING STAKE IN SHCIL AND FROM THAT DAY IDBI IS NOT GIVING ANY RETURNS TO HIS SHAREHOLDER BUT FROM THAT TIME ITS LOSSES TO SHAREHOLDER. SO ON THIS NEWS I THINK IDBI WILL BENEFITED BY SELLING ITS STAKE TO IFCI AND MAY IFCI WILL GET LOSS. SO BUY IDBI AND SELL IFCI , BUT FIRST COME WITH CONFIRM NEWS ABOUT THIS.