Showing posts with label gold etf. Show all posts
Bank Nifty falls 1%, BHEL loses 3%; Sensex, Nifty weak...........
2:00 pm Asian Markets: Japanese stocks rose to a three-week high , helped by gains in construction equipment makers on news China is taking steps to stimulate its economy, and as the dollar hit a 10-week high to the yen after solid US economic data. The Nikkei ended 0.8 percent higher to 15,071.88 points, the highest close since March 11. The broader Topix rose 0.5 percent to 1,216.77.
The JPX-Nikkei Index 400, a gauge comprised of companies with a high return on equity and robust corporate governance, added 0.6 percent to 11,029.28.
1:50 pm Interview: Debunking the myth that weak monsoons lone can be responsible for affecting the fast moving consumer goods (FMCG) growth in the rural areas, Sunil Duggal, CEO, Dabur said the rural demand has been lower over the last two quarters. According to him, the correlation between rural income and monsoon is very direct. But the same with consumer demand is not always true. "We cannot be completely insulted from the impact of a bad monsoon. But it doesn’t alter the dynamics of consumption to a very great degree. Likewise a great monsoon also doesn’t accelerate demand, there are host of other conditions required to stimulate or depress demand," he added.
1:40 pm In focus: Shares of Unitech are attracting buyers after the company said it has been approached by a third party for its stake in Candor Investment- the IT parks. The stock gained as much as 6.5 percent intraday. Meanwhile, sources told CNBC-TV18 that real estate major Unitech and Unitech Corporate Parks (UCP) will sell six India assets for up to Rs 12,500 crore. It is learnt that the company will raise Rs 4,000-5,000 crore from milestone payments over three years. Unitech and UCP have signed exclusivity with a potential buyer and they will exit IT park portfolio of 16 million square feet, sources say.
1:30 pm Market outlook: Nirmal Jain, chairman, IIFL recommends long-term investors to hold on to their equity investments now. “Most foreign investors remain bullish on India and if nothing catastrophic happens then we can see a sustained bull market,” he told CNBC-TV18 in an interview. Market participants should adopt a bottom-up approach, but must not leverage given that election is a high risk event. “If the election outcome is not as per expectations then it will have a huge impact,” he cautioned. Meanwhile, the Reserve Bank of India granted in-principle nod for the much-awaited bank licence to IDFC and Bandhan Financial Services on Wednesday. “This is positive start. They want the banking sector to open up,” Jain said. 1:20 pm Buzzing: Shares of Siti Cable Network rallied as much as 5.5 percent intraday after the company said promoters raised stake in the company to 72.82 percent, up from 63.08 percent as of December 2013.
The cable television service provider in its filing to the exchange said the promoters have invested additional Rs 243 crore in the business to support the aggressive growth plan to grow subscriber base to 10 million in FY14-15. "As per the approval received from Foreign Investment Promotion Board (FIPB) in March 2013 to raise Rs 324 crore from promoter entities, the company has already received first tranche Rs 81 crore in March 2013 and this is balance tranche fund of Rs 243 crore.
With this total promoter shareholding rises to 72.82 percent," the company elaborated. Don't miss: Bank licence regrets: L&T Fin, Muthoot, JM Fin tank 9-14% The market continued to remain under pressure as the Sensex is down 107.10 points at 22444.39, and the Nifty is down 33.45 points at 6719.10. About 1122 shares have advanced, 1380 shares declined, and 124 shares are unchanged. Banking, capital goods and oil & gas stocks are dragging the indices.
BHEL loses 3 percent, followed by Coal India, SBI and L&T. The MCX board is likely to meet today to consider preferential allotment. Sources indicate that some private equity investors may join the board. Earlier, Financial Technologies was asked by FMC to reduce its stake in MCX to 2 percent from 26 percent.
The Aam Aadmi Party is likely to release its national manifesto for the 2014 Lok Sabha elections today. The manifesto will spell out party's stand over different issues including the party's agriculture, economic and foreign policy. Issues like gas price may also find place in the manifesto.
The JPX-Nikkei Index 400, a gauge comprised of companies with a high return on equity and robust corporate governance, added 0.6 percent to 11,029.28.
1:50 pm Interview: Debunking the myth that weak monsoons lone can be responsible for affecting the fast moving consumer goods (FMCG) growth in the rural areas, Sunil Duggal, CEO, Dabur said the rural demand has been lower over the last two quarters. According to him, the correlation between rural income and monsoon is very direct. But the same with consumer demand is not always true. "We cannot be completely insulted from the impact of a bad monsoon. But it doesn’t alter the dynamics of consumption to a very great degree. Likewise a great monsoon also doesn’t accelerate demand, there are host of other conditions required to stimulate or depress demand," he added.
1:40 pm In focus: Shares of Unitech are attracting buyers after the company said it has been approached by a third party for its stake in Candor Investment- the IT parks. The stock gained as much as 6.5 percent intraday. Meanwhile, sources told CNBC-TV18 that real estate major Unitech and Unitech Corporate Parks (UCP) will sell six India assets for up to Rs 12,500 crore. It is learnt that the company will raise Rs 4,000-5,000 crore from milestone payments over three years. Unitech and UCP have signed exclusivity with a potential buyer and they will exit IT park portfolio of 16 million square feet, sources say.
1:30 pm Market outlook: Nirmal Jain, chairman, IIFL recommends long-term investors to hold on to their equity investments now. “Most foreign investors remain bullish on India and if nothing catastrophic happens then we can see a sustained bull market,” he told CNBC-TV18 in an interview. Market participants should adopt a bottom-up approach, but must not leverage given that election is a high risk event. “If the election outcome is not as per expectations then it will have a huge impact,” he cautioned. Meanwhile, the Reserve Bank of India granted in-principle nod for the much-awaited bank licence to IDFC and Bandhan Financial Services on Wednesday. “This is positive start. They want the banking sector to open up,” Jain said. 1:20 pm Buzzing: Shares of Siti Cable Network rallied as much as 5.5 percent intraday after the company said promoters raised stake in the company to 72.82 percent, up from 63.08 percent as of December 2013.
The cable television service provider in its filing to the exchange said the promoters have invested additional Rs 243 crore in the business to support the aggressive growth plan to grow subscriber base to 10 million in FY14-15. "As per the approval received from Foreign Investment Promotion Board (FIPB) in March 2013 to raise Rs 324 crore from promoter entities, the company has already received first tranche Rs 81 crore in March 2013 and this is balance tranche fund of Rs 243 crore.
With this total promoter shareholding rises to 72.82 percent," the company elaborated. Don't miss: Bank licence regrets: L&T Fin, Muthoot, JM Fin tank 9-14% The market continued to remain under pressure as the Sensex is down 107.10 points at 22444.39, and the Nifty is down 33.45 points at 6719.10. About 1122 shares have advanced, 1380 shares declined, and 124 shares are unchanged. Banking, capital goods and oil & gas stocks are dragging the indices.
BHEL loses 3 percent, followed by Coal India, SBI and L&T. The MCX board is likely to meet today to consider preferential allotment. Sources indicate that some private equity investors may join the board. Earlier, Financial Technologies was asked by FMC to reduce its stake in MCX to 2 percent from 26 percent.
The Aam Aadmi Party is likely to release its national manifesto for the 2014 Lok Sabha elections today. The manifesto will spell out party's stand over different issues including the party's agriculture, economic and foreign policy. Issues like gas price may also find place in the manifesto.
Banks weak post RBI policy; Sensex continues to consolidate .......
Country's largest carmaker Maruti Suzuki India (MSI) reported a 5.5 percent decline in total sales in March at 1,13,350 units as against 1,19,937 units in the same month last year. The company said its domestic sales declined by 5.2 percent during the month to 1,02,269 units as against 1,07,890 units in March 2013. Sales of mini segment cars, including M800, Alto, A-Star and WagonR, declined by 11 percent to 40,085 units as compared to 45,047 units in the year-ago month, MSI said in a statement.
The company said sales of the compact segment comprising Swift, Estilo, Ritz rose by 9.3 percent to 28,285 units in March this year as against 25,868 units last year, reports PTI. 12:50pm HSBC's India manufacturing PMI down in March HSBC's India manufacturing PMI declined in March at 51.3 versus 52.5 in February, but remained above the waterline, indicating positive growth. "Growth in the manufacturing sector eased on the back of weaker growth in output and a slowdown in order flows from domestic clients.
By goods, consumer goods firmed, but the production of investment goods remains subdued according to panellists. Looking ahead, the recovery is likely to prove protracted. Meanwhile, inflation eased in March, with the PMI index for input and output prices falling," the HSBC report said.
12:45pm Expert on RBI policy Kunal Shah, fund manager-debt, Kotak Mahindra Old Mutual Life Insurance said, "RBI has maintained status quo as per our and consensus expectations, though not clearly spelled out in policy but RBI is incrementally concerned about sticky growth underperformance." According to him, RBI has hinted that lead indicators do not point to any sustained revival in industry or services & hence believes that slower activity will help disinflate the economy which will support the fight against inflation. "Till these processes evolve RBI feels current policy rates are appropriate and may not require further tightening," he added. "We expect current disinflation process to continue and core inflation to moderate further however sharp fall is unlikely in short-term. Monsoon will be key to watch as it can create short-term volatility in inflation path," Shah said.
12:40pm Rate hike unlikely if inflation does not rise further The Reserve Bank’s policy stance will be firmly focussed on keeping the economy on a disinflationary glide path that is intended to hit 8 per cent CPI inflation by January 2015 and 6 per cent by January 2016, the central bank said. It further said that at the current juncture, it is appropriate to hold the policy rate, while allowing the rate increases undertaken during September 2013-January 2014 to work their way through the economy. Furthermore, if inflation continues along the intended glide path, further policy tightening in the near term is not anticipated at this juncture, the RBI said.
12:35pm RBI says Since December 2013, the sharper than expected disinflation in vegetable prices has enabled a sizable fall in headline inflation. Looking ahead, vegetable prices have entered their seasonal trough and further softening is unlikely. Meanwhile, CPI inflation excluding food and fuel has remained flat. There are risks to the central forecast of 8 percent CPI inflation by January 2015 stemming from a less-than-normal monsoon due to possible el nino effects; uncertainty on the setting of minimum support prices for agricultural commodities and the setting of other administered prices, especially of fuel, fertiliser and electricity; the outlook for fiscal policy; geo-political developments and their impact on international commodity prices. 12:30pm Market falls further, banks extend losses Equity benchmarks extended losses in afternoon trade weighed down by banking and financial stocks.
The Sensex is down 81.76 points to 22304.51 and the Nifty down 20.25 points to 6683.95. India's biggest lender State Bank of India plunged 2 percent while rival HDFC Bank slipped 1.9 percent. Top private sector lender ICICI Bank and housing finance company HDFC dropped over a percent. Shares of L&T, ITC, HUL, Bharti Airtel, Maruti Suzuki, Bajaj Auto, BHEL and Coal India declined over 1 percent.
However, TCS held its early gains, up 2 percent followed by Wipro and ONGC with more than 1.5 percent. Infosys and Tata Motors climbed over 0.5 percent. 12:25pm RBI says Retail inflation measured by the consumer price index (CPI) moderated for the third month in succession in February 2014, driven lower by the sharp disinflation in food prices, although prices of fruits, milk and products have started to firm up. Excluding food and fuel, however, retail inflation remained sticky at around 8 percent. This suggests that some demand pressures are still at play.
12:20pm RBI increases the liquidity provided under 7-day and 14-day term repos from 0.5 percent of net demand and time liability (NDTL) of the banking system to 0.75 percent. It decreases the liquidity provided under overnight repos under the liquidity adjustment facility (LAF) from 0.5 percent of bank-wise NDTL to 0.25 percent with immediate effect.
12:15pm Rajan says the bank may need to push foreign banks to follow subsidiary model. Foreign banks avoid subsidiary route on priority sector norm, he adds.
12:10pm While addressing press conference after an announcement of bi-monthly review, RBI governor Raghuram Rajan said the bank had responded to Election Commission queries on banking licences. "We took Election Commission (EC) opinion on banking licences to stay away from controversy. Bimal Jalan had also suggested getting EC nod for banking licences," Rajan said. He further said the window for differentiated banking licences would be opened soon. 12:05pm Reserve Bank of India kept repo rate, at which banks borrow money from RBI, unchanged at 8 percent and cash reserve ratio at 4 percent. The central bank also left marginal standing facility rate and bank rate unchanged at 9 percent.
12:00pm The market remains volatile after the Reserve Bank of India kept policy rates unchanged that is in-line with expectations. The Sensex slips 15.12 points to 22371.15 and the Nifty declines 4.75 points to 6699.45. About 1174 shares have advanced, 1042 shares declined, and 131 shares are unchanged. Top lenders State Bank of India, ICICI Bank and HDFC Bank decline 0.5-0.8 percent. Housing finance company HDFC slips 0.66 percent. State-run power equipment maker BHEL drops 1.7 percent, and engineering and construction major L&T is down 1.3 percent.
The company said sales of the compact segment comprising Swift, Estilo, Ritz rose by 9.3 percent to 28,285 units in March this year as against 25,868 units last year, reports PTI. 12:50pm HSBC's India manufacturing PMI down in March HSBC's India manufacturing PMI declined in March at 51.3 versus 52.5 in February, but remained above the waterline, indicating positive growth. "Growth in the manufacturing sector eased on the back of weaker growth in output and a slowdown in order flows from domestic clients.
By goods, consumer goods firmed, but the production of investment goods remains subdued according to panellists. Looking ahead, the recovery is likely to prove protracted. Meanwhile, inflation eased in March, with the PMI index for input and output prices falling," the HSBC report said.
12:45pm Expert on RBI policy Kunal Shah, fund manager-debt, Kotak Mahindra Old Mutual Life Insurance said, "RBI has maintained status quo as per our and consensus expectations, though not clearly spelled out in policy but RBI is incrementally concerned about sticky growth underperformance." According to him, RBI has hinted that lead indicators do not point to any sustained revival in industry or services & hence believes that slower activity will help disinflate the economy which will support the fight against inflation. "Till these processes evolve RBI feels current policy rates are appropriate and may not require further tightening," he added. "We expect current disinflation process to continue and core inflation to moderate further however sharp fall is unlikely in short-term. Monsoon will be key to watch as it can create short-term volatility in inflation path," Shah said.
12:40pm Rate hike unlikely if inflation does not rise further The Reserve Bank’s policy stance will be firmly focussed on keeping the economy on a disinflationary glide path that is intended to hit 8 per cent CPI inflation by January 2015 and 6 per cent by January 2016, the central bank said. It further said that at the current juncture, it is appropriate to hold the policy rate, while allowing the rate increases undertaken during September 2013-January 2014 to work their way through the economy. Furthermore, if inflation continues along the intended glide path, further policy tightening in the near term is not anticipated at this juncture, the RBI said.
12:35pm RBI says Since December 2013, the sharper than expected disinflation in vegetable prices has enabled a sizable fall in headline inflation. Looking ahead, vegetable prices have entered their seasonal trough and further softening is unlikely. Meanwhile, CPI inflation excluding food and fuel has remained flat. There are risks to the central forecast of 8 percent CPI inflation by January 2015 stemming from a less-than-normal monsoon due to possible el nino effects; uncertainty on the setting of minimum support prices for agricultural commodities and the setting of other administered prices, especially of fuel, fertiliser and electricity; the outlook for fiscal policy; geo-political developments and their impact on international commodity prices. 12:30pm Market falls further, banks extend losses Equity benchmarks extended losses in afternoon trade weighed down by banking and financial stocks.
The Sensex is down 81.76 points to 22304.51 and the Nifty down 20.25 points to 6683.95. India's biggest lender State Bank of India plunged 2 percent while rival HDFC Bank slipped 1.9 percent. Top private sector lender ICICI Bank and housing finance company HDFC dropped over a percent. Shares of L&T, ITC, HUL, Bharti Airtel, Maruti Suzuki, Bajaj Auto, BHEL and Coal India declined over 1 percent.
However, TCS held its early gains, up 2 percent followed by Wipro and ONGC with more than 1.5 percent. Infosys and Tata Motors climbed over 0.5 percent. 12:25pm RBI says Retail inflation measured by the consumer price index (CPI) moderated for the third month in succession in February 2014, driven lower by the sharp disinflation in food prices, although prices of fruits, milk and products have started to firm up. Excluding food and fuel, however, retail inflation remained sticky at around 8 percent. This suggests that some demand pressures are still at play.
12:20pm RBI increases the liquidity provided under 7-day and 14-day term repos from 0.5 percent of net demand and time liability (NDTL) of the banking system to 0.75 percent. It decreases the liquidity provided under overnight repos under the liquidity adjustment facility (LAF) from 0.5 percent of bank-wise NDTL to 0.25 percent with immediate effect.
12:15pm Rajan says the bank may need to push foreign banks to follow subsidiary model. Foreign banks avoid subsidiary route on priority sector norm, he adds.
12:10pm While addressing press conference after an announcement of bi-monthly review, RBI governor Raghuram Rajan said the bank had responded to Election Commission queries on banking licences. "We took Election Commission (EC) opinion on banking licences to stay away from controversy. Bimal Jalan had also suggested getting EC nod for banking licences," Rajan said. He further said the window for differentiated banking licences would be opened soon. 12:05pm Reserve Bank of India kept repo rate, at which banks borrow money from RBI, unchanged at 8 percent and cash reserve ratio at 4 percent. The central bank also left marginal standing facility rate and bank rate unchanged at 9 percent.
12:00pm The market remains volatile after the Reserve Bank of India kept policy rates unchanged that is in-line with expectations. The Sensex slips 15.12 points to 22371.15 and the Nifty declines 4.75 points to 6699.45. About 1174 shares have advanced, 1042 shares declined, and 131 shares are unchanged. Top lenders State Bank of India, ICICI Bank and HDFC Bank decline 0.5-0.8 percent. Housing finance company HDFC slips 0.66 percent. State-run power equipment maker BHEL drops 1.7 percent, and engineering and construction major L&T is down 1.3 percent.
India-China to collaborate on building semi-high speed rail....
India and China would look at collaborations in semi high speed rail and building world-class railway stations.
This was decided at the strategic and economic dialogue between the two countries earlier this month when an Indian delegation, headed by Planning Commission deputy chairman Montek Singh Ahluwalia, had visited Beijing.
We have discussed participation for raising speed on existing tracks to about 160-200 kilometres per hour wherein they could provide tech support said Arunendra Kumar, chairman of the Railway Board
The other area where we could cooperate further is in world class stations. We have suggested that they could form a joint venture with our station development corporation. They will let us know if they would like to proceed with that," added Kumar, who was speaking along the sidelines of a PHD conference on railways.
India will also receive training inputs for heavy haul operations. The Railways ministry also has plans to develop high- network, in which China has already seen success. However, collaboration is unlikely to be sought in this area.
n November 2012, the two countries had signed a Memorandum of Understanding (MoU) on technical cooperation in the railways sector that would remain in force for 5 years. Under this MoU, both countries will enhance mutual cooperation across various areas of rail technology including high speed rail, heavy haulage and station development.
At the time this was signed, it was agreed that future cooperation on railways between the two countries will be carried under the Infrastructure Working Group constituted under the India chaina Strategic Economic Dialogue.
Kumar also said that the last date for nominations for Rail Tariff Authority is now over and the ministry would now be reviewing all applications.
In addition, the chairman also said that, the fuel adjustment component (FAC) linked tariff revision that is done twice a year, usually expected in April and October, cannot happen this time because of the model code of conduct
This was decided at the strategic and economic dialogue between the two countries earlier this month when an Indian delegation, headed by Planning Commission deputy chairman Montek Singh Ahluwalia, had visited Beijing.
We have discussed participation for raising speed on existing tracks to about 160-200 kilometres per hour wherein they could provide tech support said Arunendra Kumar, chairman of the Railway Board
The other area where we could cooperate further is in world class stations. We have suggested that they could form a joint venture with our station development corporation. They will let us know if they would like to proceed with that," added Kumar, who was speaking along the sidelines of a PHD conference on railways.
India will also receive training inputs for heavy haul operations. The Railways ministry also has plans to develop high- network, in which China has already seen success. However, collaboration is unlikely to be sought in this area.
n November 2012, the two countries had signed a Memorandum of Understanding (MoU) on technical cooperation in the railways sector that would remain in force for 5 years. Under this MoU, both countries will enhance mutual cooperation across various areas of rail technology including high speed rail, heavy haulage and station development.
At the time this was signed, it was agreed that future cooperation on railways between the two countries will be carried under the Infrastructure Working Group constituted under the India chaina Strategic Economic Dialogue.
Kumar also said that the last date for nominations for Rail Tariff Authority is now over and the ministry would now be reviewing all applications.
In addition, the chairman also said that, the fuel adjustment component (FAC) linked tariff revision that is done twice a year, usually expected in April and October, cannot happen this time because of the model code of conduct
Keep a judicious mix of defensives, cyclicals...
Nandan Chakraborty, MD, Institutional Equity Research, Axis Capital recommends investors to have a judicious mix of defensives and cyclicals in their portfolios now.
Sharing views on the current market rally, Chakraborty told CNBC-TV18 that in upmoves, consumer discretionary and BFSI stocks rise first. He expects 15 percent growth in Sensex levels by year-end. He sees big upside in select engineering and infrastructure stocks.
Also, certain pockets of banking stocks may see large upmove going ahead. From the PSU banking pack, he is positive on SBI and PNB . One can bet on auto ancillary stocks like Motherson Sumi in the midcap auto space, he added.
Further, he added that earnings upgrade is seen only for companies with improvement in balance sheet, he said. Meanwhile, he expects further appreciation in the Indian currency.
Sharing views on the current market rally, Chakraborty told CNBC-TV18 that in upmoves, consumer discretionary and BFSI stocks rise first. He expects 15 percent growth in Sensex levels by year-end. He sees big upside in select engineering and infrastructure stocks.
Also, certain pockets of banking stocks may see large upmove going ahead. From the PSU banking pack, he is positive on SBI and PNB . One can bet on auto ancillary stocks like Motherson Sumi in the midcap auto space, he added.
Further, he added that earnings upgrade is seen only for companies with improvement in balance sheet, he said. Meanwhile, he expects further appreciation in the Indian currency.
PSU banks on Top, pharma Down; Sensex up 100 pts ....
IDFC and L&T Finance Holdings extended gains to 6 percent and 4.6 percent, respectively on hopes of banking license.
The decision of whether to issue banking license or not during elections period is in hands of Election Commission and not the government.
Election Commissioner VS Sampath on Tuesday said he has not taken a final call on the banking license issue. "
We will take up this issue on Monday," he added. Election Commission has raised legal ethical issues on banking licenses matter.
12:20pm Talwalkars in focus Shares of Talwalkars Better Value Fitness rose 11 percent as buzz of stake sale gathered steam. According to media reports UK's health and fitness group David Lloyd is looking to buy 20 percent stake in the Indian health and fitness company. "The management of David Lloyd is in talks to pick up an equity stake in Talwalkars. This will help both companies to expand their current relationship," the report quoted an investment banker.
12:10pm FII View Credit Suisse is bullish on India and considers elections to be a turning point for the country. Speaking exclusively to CNBC-TV18 on the sidelines of the Credit Suisse Asia Conference in Hong Kong, Sakthi Siva, Asia Strategist, Credit Suisse said that atleast 5-10 percent upside in the Indian market is possible from current levels in the near-term. Siva is quite confident that though India’s growth last year was the lowest in the past 10 years, but with politics, potential change, there could be a turning point for the Indian market and the economy.
12:00pm The market extended an upmove in noon trade with the Sensex rising over 100 points supported by banks, capital goods and auto stocks. The Sensex rose 107.58 points to 22202.88 and the Nifty climbed 38.45 points to 6639.85. About 1468 shares have advanced, 869 shares declined, and 141 shares are unchanged. Top lender State Bank of India jumped 3.5 percent after Goldman Sachs has upgraded the PSU bank to buy from neutral rating and revised target price to Rs 2,080 from Rs 1,440 apiece.
PNB and Bank of Baroda gained 2.5-3 percent while rivals HDFC Bank and ICICI Bank advanced 0.7 percent each. Axis Bank rallied 2 percent. Brokerage house Morgan Stanley added Axis Bank to its Asia ex-Japan model portfolio. The firm is positive on the stock given company's reducing risks in books.
Telecom operator Bharti Airtel surged 3 percent followed by Hindustan Unilever, M&M, Hero Motocorp, BHEL and NTPC with 1-2 percent. However, state-run oil & gas major Oil and Natural Gas Corporation's stock (ONGC) is quoting ex- dividend today. It fell nearly a percent. The board of directors on March 24 have approved second interim dividend of Rs 4.25 per equity share of Rs 5 each for the financial year 2013-14.
Drug majors Sun Pharma and Dr Reddy's Labs declined more than 1 percent. Dr Reddy's Labs has launched Amlodipine Besylate (to treat high blood pressure) and Atorvastatin calcium tablets in US market.
The decision of whether to issue banking license or not during elections period is in hands of Election Commission and not the government.
Election Commissioner VS Sampath on Tuesday said he has not taken a final call on the banking license issue. "
We will take up this issue on Monday," he added. Election Commission has raised legal ethical issues on banking licenses matter.
12:20pm Talwalkars in focus Shares of Talwalkars Better Value Fitness rose 11 percent as buzz of stake sale gathered steam. According to media reports UK's health and fitness group David Lloyd is looking to buy 20 percent stake in the Indian health and fitness company. "The management of David Lloyd is in talks to pick up an equity stake in Talwalkars. This will help both companies to expand their current relationship," the report quoted an investment banker.
12:10pm FII View Credit Suisse is bullish on India and considers elections to be a turning point for the country. Speaking exclusively to CNBC-TV18 on the sidelines of the Credit Suisse Asia Conference in Hong Kong, Sakthi Siva, Asia Strategist, Credit Suisse said that atleast 5-10 percent upside in the Indian market is possible from current levels in the near-term. Siva is quite confident that though India’s growth last year was the lowest in the past 10 years, but with politics, potential change, there could be a turning point for the Indian market and the economy.
12:00pm The market extended an upmove in noon trade with the Sensex rising over 100 points supported by banks, capital goods and auto stocks. The Sensex rose 107.58 points to 22202.88 and the Nifty climbed 38.45 points to 6639.85. About 1468 shares have advanced, 869 shares declined, and 141 shares are unchanged. Top lender State Bank of India jumped 3.5 percent after Goldman Sachs has upgraded the PSU bank to buy from neutral rating and revised target price to Rs 2,080 from Rs 1,440 apiece.
PNB and Bank of Baroda gained 2.5-3 percent while rivals HDFC Bank and ICICI Bank advanced 0.7 percent each. Axis Bank rallied 2 percent. Brokerage house Morgan Stanley added Axis Bank to its Asia ex-Japan model portfolio. The firm is positive on the stock given company's reducing risks in books.
Telecom operator Bharti Airtel surged 3 percent followed by Hindustan Unilever, M&M, Hero Motocorp, BHEL and NTPC with 1-2 percent. However, state-run oil & gas major Oil and Natural Gas Corporation's stock (ONGC) is quoting ex- dividend today. It fell nearly a percent. The board of directors on March 24 have approved second interim dividend of Rs 4.25 per equity share of Rs 5 each for the financial year 2013-14.
Drug majors Sun Pharma and Dr Reddy's Labs declined more than 1 percent. Dr Reddy's Labs has launched Amlodipine Besylate (to treat high blood pressure) and Atorvastatin calcium tablets in US market.
Markets to ring opening bell in green......
Today the global scenario looks favourable, which may result in positive opening of the Indian markets. SGX Nifty is also trading 31.00 points higher.
Global Market
Asian shares raced to two-week highs on Wednesday, with investor confidence getting a much needed boost from upbeat U.S. data and lingering hopes China may take steps to stimulate its sagging economy.
US stocks Tuesday finished a choppy trading session higher, boosted by stronger-than-expected consumer confidence data. The main indexes recorded small gains after two days of losses.
European shares rebounded on Tuesday, anticipating of stimulus measures from the European Central Bank (ECB) and the Chinese central bank to help their economies fight off any slowdown.
Levels to watch out:
Supports @ 6570 - 6540 - 6510
Resistance @ 6600 - 6650 - 6680
Global Market
Asian shares raced to two-week highs on Wednesday, with investor confidence getting a much needed boost from upbeat U.S. data and lingering hopes China may take steps to stimulate its sagging economy.
US stocks Tuesday finished a choppy trading session higher, boosted by stronger-than-expected consumer confidence data. The main indexes recorded small gains after two days of losses.
European shares rebounded on Tuesday, anticipating of stimulus measures from the European Central Bank (ECB) and the Chinese central bank to help their economies fight off any slowdown.
Levels to watch out:
Supports @ 6570 - 6540 - 6510
Resistance @ 6600 - 6650 - 6680
Nifty holds 6600; Tata Motors, Hindalco, GAIL top gainers..........
10:30am Oberoi Realty jumps over 10%
Oberoi Realty bought Tata Steel’s defunct manufacturing plant in Borivali, a western suburb in Mumbai. Oberoi Realty jumped 10 percent while Tata Steel rose 2 percent after the real estate developer announced buying the 25-acre land for Rs 1155 crore through e-auction
"The Committee of Independent Directors appointed for the oversight and governance of the sale process by the Tata Steel Board declared Oberoi Realty Limited as the highest bidder of the auction on the basis of their final bid of Rs 1,155 crore, after several rounds of bidding," Tata Steel said in a statement
Oberoi Realty bought Tata Steel’s defunct manufacturing plant in Borivali, a western suburb in Mumbai. Oberoi Realty jumped 10 percent while Tata Steel rose 2 percent after the real estate developer announced buying the 25-acre land for Rs 1155 crore through e-auction
"The Committee of Independent Directors appointed for the oversight and governance of the sale process by the Tata Steel Board declared Oberoi Realty Limited as the highest bidder of the auction on the basis of their final bid of Rs 1,155 crore, after several rounds of bidding," Tata Steel said in a statement
10:20am Educomp Solutions up over 7%
Educomp Solutions said the board of directors on March 25 has accepted the letter of approval (LOA) issued by Corporate Debt Restructuring Empowered Group (CDR EG) approving the corporate debt restructuring proposal submitted by the company
10:10am Rupee at 8-month high
The rupee appreciated by 22 paise to 60.25 against US dollar, tracking weakness in dollar and strong inflow of foreign money. The strength seen in the Indian currency is just sentiment-driven because the underlying economy continues to be weak, believes market expert Jamal Mecklai. "The Indian market certainly looks cheap in dollar terms," he told CNBC-TV18 in an interview. Mecklai, CEO, Mecklai Financial Services cautioned that the high volatility makes it difficult time to take position in the rupee now. He further added that the Reserve Bank of India (RBI) is likely to intervene to curb the currency from falling too much into its 50s and thereby support exports. "We can't afford to let the exports side down because the Chinese currency is also weakening," he added
10:00am Equity benchmarks continued to witness buying interest with the Nifty holding the 6600-mark supported by banks, capital goods, metals and auto stocks.
The Sensex rose 72.53 points to 22127.74 while the Nifty climbed 21.85 points to 6611.60 amid volatility ahead of expiry of March series derivative contracts.
More than two shares advanced for every share declining on the Bombay Stock Exchange.
Tata Motors, Hindalco Industries and GAIL are top gainers, rising more over 2 percent followed by Maruti Suzuki, Tata Steel and Sesa Sterlite with 1.8 percent.
Top private sector lender ICICI Bank, petrochemical major Reliance Industries and engineering & construction major L&T gained nearly a percent. However, shares of ITC, TCS, HDFC Bank, Sun Pharma, Dr Reddy's Labs, Hero Motocorp and Cipla fell 0.3-1 percent.
Nifty to hit 6900 on favourable poll result: UBS ....
The biggest near-term catalyst for the Indian market is the upcoming general election and the current rally is seen as the one fuelled by hope of a stable government. Gautam Chhaochharia, head of India research of UBS Securities sees the Nifty touching 6,900 on favourable election outcome.
Speaking to CNBC-TV18, he said, sector rotation will take front seat and this up move will be lead by cyclicals largely banks, which have a considerable weightage in the index. Other sectors like industrials and power would also perform well.
Traders who are looking to play recovery in the capex cycle theme can buy infrastructure stocks, but from six months – two years perspective, one should be cautious because on the ground revival in the sector will take a longer time. L&T and BHEL are his top picks from the capital goods space. He likes Voltas from the midcaps.
UBS prefers sticking to private sector lenders and is underweight on public sector banks, however, those interested in investing in this space can consider PNB , which looks good from a valuation perspective, he said.
He is overweight on the IT sector from a strategy perspective and expects recovery in US and Europe to aid the sector. Giants TCS and Infosys are his top bets. However, he cautioned that sector rotation can drag IT services. Recent rupee appreciation and hopes of economic recovery has led investors to take money from this safe heaven sector to cyclicals.
Meanwhile, he expects the gas price hike to eventually go through. He is positive on ONGC and RIL . From the media space, he is positive on Sun TV , Dish TV and Hathway .
Continuing his bullish tone, he added that correction steps taken by previous government have given confidence in the Indian economy. He feels that bulidimng blocks for economic growth are in place. The broking firm is constructive on Indian market from a two-three year perspective
Speaking to CNBC-TV18, he said, sector rotation will take front seat and this up move will be lead by cyclicals largely banks, which have a considerable weightage in the index. Other sectors like industrials and power would also perform well.
Traders who are looking to play recovery in the capex cycle theme can buy infrastructure stocks, but from six months – two years perspective, one should be cautious because on the ground revival in the sector will take a longer time. L&T and BHEL are his top picks from the capital goods space. He likes Voltas from the midcaps.
UBS prefers sticking to private sector lenders and is underweight on public sector banks, however, those interested in investing in this space can consider PNB , which looks good from a valuation perspective, he said.
He is overweight on the IT sector from a strategy perspective and expects recovery in US and Europe to aid the sector. Giants TCS and Infosys are his top bets. However, he cautioned that sector rotation can drag IT services. Recent rupee appreciation and hopes of economic recovery has led investors to take money from this safe heaven sector to cyclicals.
Meanwhile, he expects the gas price hike to eventually go through. He is positive on ONGC and RIL . From the media space, he is positive on Sun TV , Dish TV and Hathway .
Continuing his bullish tone, he added that correction steps taken by previous government have given confidence in the Indian economy. He feels that bulidimng blocks for economic growth are in place. The broking firm is constructive on Indian market from a two-three year perspective
Stocks in news: MCX, Financial Tech, ACC, ONGC, Tech Mah...
MCX | Financial
Technologies | Arshiya International | ONGC | ACC | Tech Mahindra |
United Spirits | Dabur India | PNB | Tata Power | Mahindra &
Mahindra Financial Services | Bharti Infratel | Mindtree and Axis Bank
are stocks, which are in the news today.
Government raises $1.4 bn in divestment push to bolster revenue....
UMBAI/NEW
DELHI: The government on Friday raised as much as $1.4 billion through
share sales, in a push to shore up state finances before it heads into a
tough parliamentary election next month
As a result, New Delhi managed to exceed its sharply-lowered budget target to raise as much as $3.1 billion via stake sales in some private as well as state companies in the fiscal year to March 31, after years of falling short.
Some analysts hope the new government, taking office in May, will speed divestments to bolster revenue generation and trim the budget deficit, as part of efforts to revive slowing economic growth.
Finance Minister P. Chidambaram had penciled nearly $9 billion in divestment revenues into his budget for this fiscal year, but slashed that figure last month to $3.1 billion.
He also set an ambitious target of raising $8.5 billion from further share sales in the next fiscal year, but this estimate could be revised by a possible successor after the election.
"With the next government in place, one would only expect better fortunes from stake sales," said N.R. Bhanumurthy, an economist at the National Institute of Public Finance and Policy think tank.
"A recovery in growth sentiment in the market should help sell stakes quite early in the next fiscal year to meet the target."
As a result, New Delhi managed to exceed its sharply-lowered budget target to raise as much as $3.1 billion via stake sales in some private as well as state companies in the fiscal year to March 31, after years of falling short.
Some analysts hope the new government, taking office in May, will speed divestments to bolster revenue generation and trim the budget deficit, as part of efforts to revive slowing economic growth.
Finance Minister P. Chidambaram had penciled nearly $9 billion in divestment revenues into his budget for this fiscal year, but slashed that figure last month to $3.1 billion.
He also set an ambitious target of raising $8.5 billion from further share sales in the next fiscal year, but this estimate could be revised by a possible successor after the election.
"With the next government in place, one would only expect better fortunes from stake sales," said N.R. Bhanumurthy, an economist at the National Institute of Public Finance and Policy think tank.
"A recovery in growth sentiment in the market should help sell stakes quite early in the next fiscal year to meet the target."
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How investors should approach the magical date of May 16; top stock bets...
EW DELHI:
All eyes are set on the coming general elections; and ahead of the
watershed event the Indian markets are trading near their all-time
highs, getting support from strong inflows from foreign institutional
investors who are almost certain of a Narendra Modi-led NDA government
after the general elections.
The basis of this 'certainty' is thanks to the opinion polls which are overwhelmingly predicting a BJP-led government at the Centre.
In this scenario, what should investors do ahead of the main event? Which stocks to buy and which sectors to choose from?
According to analysts, investors should focus on cyclical, banks and infrastructure, and probably shed weight on defensives such as IT and pharma.
"... it looks like that there is going to be a decisive government post May 16 and if that is your bet it makes sense to approach this market with an 'in the money' strategy," said Nilesh Shah, MD & CEO, Envision Capital.
"Investors may want to leave some ammunition for areas like technology, pharmaceuticals and dollar sensitives, where a correction has started," he said.
Shah is of the view that the sectors (IT & pharma) might get weaker before the guidance season; but barring that the rest of the pack, by and large, looks reasonably stable.
Unlike a mean-reversal rally where investors jump on to stocks that fell the most in the prior period, the recent rally has focused on sectors benefiting from a revival in large-scale infrastructure investment.
"With the sectors that had outperformed thus far, i.e. IT, healthcare and staples, remaining unchanged, the Indian market has been among the best performing in the past month," Credit Suisse said in a report.
Results of opinion polls have successively predicted a stronger victory for the BJP-led National Democratic Alliance, and predict 230+ seats for the alliance.
However, the global investment bank finds the opinion polls an unreliable indicator of the upcoming election result.
The basis of this 'certainty' is thanks to the opinion polls which are overwhelmingly predicting a BJP-led government at the Centre.
In this scenario, what should investors do ahead of the main event? Which stocks to buy and which sectors to choose from?
According to analysts, investors should focus on cyclical, banks and infrastructure, and probably shed weight on defensives such as IT and pharma.
"... it looks like that there is going to be a decisive government post May 16 and if that is your bet it makes sense to approach this market with an 'in the money' strategy," said Nilesh Shah, MD & CEO, Envision Capital.
"Investors may want to leave some ammunition for areas like technology, pharmaceuticals and dollar sensitives, where a correction has started," he said.
Shah is of the view that the sectors (IT & pharma) might get weaker before the guidance season; but barring that the rest of the pack, by and large, looks reasonably stable.
Unlike a mean-reversal rally where investors jump on to stocks that fell the most in the prior period, the recent rally has focused on sectors benefiting from a revival in large-scale infrastructure investment.
"With the sectors that had outperformed thus far, i.e. IT, healthcare and staples, remaining unchanged, the Indian market has been among the best performing in the past month," Credit Suisse said in a report.
Results of opinion polls have successively predicted a stronger victory for the BJP-led National Democratic Alliance, and predict 230+ seats for the alliance.
However, the global investment bank finds the opinion polls an unreliable indicator of the upcoming election result.
election results.d more at:
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Unlike
a mean-reversal rally where investors jump on to stocks that fell the
most in the prior period, the recent rally has focused on sectors
benefiting from a revival in large-scale infrastructure investment.
"With the sectors that had outperformed thus far, i.e. IT, healthcare and staples, remaining unchanged, the Indian market has been among the best performing in the past month," Credit Suisse said in a report.
Results of opinion polls have successively pr ..
"With the sectors that had outperformed thus far, i.e. IT, healthcare and staples, remaining unchanged, the Indian market has been among the best performing in the past month," Credit Suisse said in a report.
Results of opinion polls have successively pr ..
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In this scenario, what should investors do ahead of the main event? Which stocks to buy and which sectors to choose from?
Read more at:
hthis scenario, what should investors do ahead of the main event? Which stocks to buy and which sectors to choose from?
According to analysts, investors should focus on cyclical, banks and infrastructure, and probably shed weight on defensives such as IT and pharma.
"... it looks like that the ..
hthis scenario, what should investors do ahead of the main event? Which stocks to buy and which sectors to choose from?
According to analysts, investors should focus on cyclical, banks and infrastructure, and probably shed weight on defensives such as IT and pharma.
"... it looks like that the ..
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Overweight on IT, telecom; remain underweight on banks........
Here are experts’ equity calls for the day on how the market is expected to trade:
Ridham Desai, Morgan Stanley: Market is prepping for a macro trade as evident in low stock correlations and high relative volatility. The implied volatility levels are low and given relative valuations, the direction of this macro trade could be down. We are overweight on technology, telecom, consumer discretionary and energy. We remain underweight on banks, industrials, consumer staples and utilities.
Sanjeev Prasad, Kotak Institutional Equities: The reward-risk balance for the Indian stock market is less favourable after the sharp run-up in prices of several domestic cyclical and PSU stocks. Current stock prices already discount FY15 EPS for most large-cap stocks. Earnings upgrades will largely depend on favourable government action in a few sectors, which depend on favourable election outcome and continuation of reforms
Ridham Desai, Morgan Stanley: Market is prepping for a macro trade as evident in low stock correlations and high relative volatility. The implied volatility levels are low and given relative valuations, the direction of this macro trade could be down. We are overweight on technology, telecom, consumer discretionary and energy. We remain underweight on banks, industrials, consumer staples and utilities.
Sanjeev Prasad, Kotak Institutional Equities: The reward-risk balance for the Indian stock market is less favourable after the sharp run-up in prices of several domestic cyclical and PSU stocks. Current stock prices already discount FY15 EPS for most large-cap stocks. Earnings upgrades will largely depend on favourable government action in a few sectors, which depend on favourable election outcome and continuation of reforms
IT stocks drag Sensex lower; top ten stocks in focus.....
Here is a list of ten stocks which are in focus in trade today:
Tata Consultancy Services Ltd:
TCSBSE -4.24 % joined smaller rival InfosysBSE -2.33 % in signalling a weaker Q4, sending its shares lower, even though India's largest software company remained confident about a stronger 2014-15.
At 10:15 a.m.; the stock was trading 4.5 per cent lower at Rs 2026.
Infosys Ltd:
The country's second largest software services firm Infosys said it has signed a five-year deal with Swedish firm Lansforsakringar AB (LFAB) to provide application development and management support for its life and non-life insurance business.
At 10:15 a.m.; the stock was trading 3.1 per cent lower at Rs 3244.20.
Zensar Technologies:
IT services firm said it has bagged new multi-million dollar deals in the US and Europe. The deals signed include one with a multi-billion dollar American enterprise that designs and builds trucks and military vehicles as well as a dual shore IM deal with an existing American client.
At 10:15 a.m.; the stock was trading 1.2 per cent lower at Rs 394.
Maruti Suzuki India Ltd:
MarutiBSE -0.16 % Suzuki's problems with regard to its Gujarat project are far from over as some proxy shareholder advisory firms on Tuesday said they may recommend to investors to vote against the revised proposal as well.
At 10:15 a.m.; the stock was trading 0.2 per cent lower at Rs 1864.
L&T Ltd:
Larsen and Toubro Executive Chairman A M Naik has sold his 2.25 lakh shares in the company worth about Rs 28.30 crore in the last 10 days. Besides, company CEO K Venkataramanan has also sold a part of his stake in the company, amounting to Rs 1.26 crore, in the same period, L&T informed BSE through a series of filings.
TCSBSE -4.24 % joined smaller rival InfosysBSE -2.33 % in signalling a weaker Q4, sending its shares lower, even though India's largest software company remained confident about a stronger 2014-15.
At 10:15 a.m.; the stock was trading 4.5 per cent lower at Rs 2026.
Infosys Ltd:
The country's second largest software services firm Infosys said it has signed a five-year deal with Swedish firm Lansforsakringar AB (LFAB) to provide application development and management support for its life and non-life insurance business.
At 10:15 a.m.; the stock was trading 3.1 per cent lower at Rs 3244.20.
Zensar Technologies:
IT services firm said it has bagged new multi-million dollar deals in the US and Europe. The deals signed include one with a multi-billion dollar American enterprise that designs and builds trucks and military vehicles as well as a dual shore IM deal with an existing American client.
At 10:15 a.m.; the stock was trading 1.2 per cent lower at Rs 394.
Maruti Suzuki India Ltd:
MarutiBSE -0.16 % Suzuki's problems with regard to its Gujarat project are far from over as some proxy shareholder advisory firms on Tuesday said they may recommend to investors to vote against the revised proposal as well.
At 10:15 a.m.; the stock was trading 0.2 per cent lower at Rs 1864.
L&T Ltd:
Larsen and Toubro Executive Chairman A M Naik has sold his 2.25 lakh shares in the company worth about Rs 28.30 crore in the last 10 days. Besides, company CEO K Venkataramanan has also sold a part of his stake in the company, amounting to Rs 1.26 crore, in the same period, L&T informed BSE through a series of filings.
At 10:15 a.m.; the stock was trading 0.5 per cent higher at Rs 1247.
Sesa Sterlite Ltd:
India's No.1 refined copper producer Sesa Sterlite Ltd will shut its smelter for 22 days starting April 26, two company sources said on Tuesday, in what would be the first maintenance closure in four years and cut supplies to top buyer China.
India's No.1 refined copper producer Sesa Sterlite Ltd will shut its smelter for 22 days starting April 26, two company sources said on Tuesday, in what would be the first maintenance closure in four years and cut supplies to top buyer China.
Sagar Cements Ltd:
France's Vicat has started talks with its JV partner to buy the 47% stake it does not own in Vicat Sagar Cement in a deal that is likely to value the company at around Rs 4,100 crore, two people familiar with the development said.
At 10:15 a.m.; the stock was trading 5 per cent higher at Rs 180.60.
At 10:15 a.m.; the stock was trading 5 per cent higher at Rs 180.60.
SBI:
The country's largest lender, State Bank of India (SBI), on Tuesday reported a flat advance tax payout for the March quarter at R1,456 crore.
At 10:15 a.m.; the stock was trading 0.4 per cent higher at Rs 1709.
At 10:15 a.m.; the stock was trading 0.4 per cent higher at Rs 1709.
Ashok Leyland Ltd:
Commercial vehicles major Ashok Leyland on Tuesday offloaded 31.25 lakh shares of private sector lender IndusInd Bank for an estimated Rs 14.
At 10:15 a.m.; the stock was trading 1.1 per cent higher at Rs 17.70.
Bharti Airtel Ltd:
Sunil Mittal-founded Bharti Airtel and six other GSM majors serving the Africa and Middle-East markets will forge network infrastructure sharing pacts to provide Internet and mobile broadband access to unserved rural communities and drive down mobile services delivery costs for all sections of the population in these regions.
At 10:15 a.m.; the stock was trading 1.1 per cent higher at Rs 17.70.
Bharti Airtel Ltd:
Sunil Mittal-founded Bharti Airtel and six other GSM majors serving the Africa and Middle-East markets will forge network infrastructure sharing pacts to provide Internet and mobile broadband access to unserved rural communities and drive down mobile services delivery costs for all sections of the population in these regions.
At 10:15 a.m.; the stock was trading 1.6 per cent higher at Rs 300.
access
to unserved rural communities and drive down mobile services delivery
costs for all sections of the population in these regions.
At 10:15 a.m.; the stock was trading 1.6 per cent higher at Rs 300.
At 10:15 a.m.; the stock was trading 1.6 per cent higher at Rs 300.
Read more at:
http://economictimes.indiatimes.com/articleshow/32283700.cms?curpg=2&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
http://economictimes.indiatimes.com/articleshow/32283700.cms?curpg=2&utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
access
to unserved rural communities and drive down mobile services delivery
costs for all sections of the population in these regions.
At 10:15 a.m.; the stock was trading 1.6 per cent higher at Rs 300.
At 10:15 a.m.; the stock was trading 1.6 per cent higher at Rs 300.
Goldman upgrades India to 'overweight', sees Nifty at 7,600 in a year..........
Goldman Sachs has upgraded India to 'overweight' and has put an aggressive target of 7,600 for the Nifty in the next 12 months, which implies 17% upside from current levels.
Citing the reasons for the same, the global investment bank said in a report: "The cyclical macro adjustments in India have reduced external vulnerability. We now expect domestic fundamentals to improve as growth recovers in 2Q. Corporate earnings downgrades seem to have bottomed out, with more signs of improvement in the investment cycle. Headline valuations have recently expanded but cyclical sectors remain inexpensive compared to history and are relatively under-owned."
The Indian stock markets today extended gains and hit fresh all-time high as inflows continued on the back of positive cues from global markets. The benchmark Sensex was trading above 22,000.
Banks, auto oil & gas and realty sectors were the top sectoral performers in intraday trade.
Goldman said the upcoming parliamentary elections in April could have an impact on reforms progress.
Citing the reasons for the same, the global investment bank said in a report: "The cyclical macro adjustments in India have reduced external vulnerability. We now expect domestic fundamentals to improve as growth recovers in 2Q. Corporate earnings downgrades seem to have bottomed out, with more signs of improvement in the investment cycle. Headline valuations have recently expanded but cyclical sectors remain inexpensive compared to history and are relatively under-owned."
The Indian stock markets today extended gains and hit fresh all-time high as inflows continued on the back of positive cues from global markets. The benchmark Sensex was trading above 22,000.
Banks, auto oil & gas and realty sectors were the top sectoral performers in intraday trade.
Goldman said the upcoming parliamentary elections in April could have an impact on reforms progress.
Wall Street edges mostly up on data as dip brings in buyers
NEW YORK: US stocks
traded mostly higher on Tuesday, paring initial losses, as home prices
and consumer data offset a decline in regional business activity.
Technology stocks led the gainers in the S&P 500, which closed at a record high on Monday. The benchmark index was on track to post its sixth consecutive month of gains.
Apple shares rose 2.3 per cent to $438.83 to lead the S&P 500 slightly higher. The iPhone maker came to market with what could turn out to be the largest non-bank bond sale in history, as it seeks funding to return cash to shareholders.
On the economic front, US home prices rose in February at their fastest rate in almost seven years while consumer confidence rebounded in April. However, business activity in the US Midwest unexpectedly contracted in April to its lowest level since September 2009.
Any pullback in the market has been viewed as a buying opportunity, traders and analysts said.
"The consumer confidence data seemed to mark the lows in the market," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
"The continued market strength is drawing people reluctantly off the sidelines and into equities. Whether you want to buy stocks or not, the strength is forcing your hand."
The Dow Jones industrial average fell 10.12 points or 0.07 per cent, to 14,808.63. The S&P 500 gained 1.04 points or 0.07 per cent, to 1,594.65. The Nasdaq Composite added 14.8 points or 0.45 per cent, to 3,321.82. Equities continue to draw support from expectations that central banks will maintain low interest rates and other economic stimulus measures. A statement from the Federal Reserve due Wednesday is expected to keep in place the central bank's pace of bond buying to stimulate the economy.
The European Central Bank will meet on Thursday. A Reuters poll of economists showed policymakers are expected to cut interest rates.
The S&P 500 ended at an all-time high on Monday as growth-oriented stocks, including energy and technology shares, drove the index's sixth rise in the past seven sessions.
A positive finish to April would deliver a sixth straight month of gains. That would be the longest winning streak since September 2009, when the S&P 500 rallied for seven straight months. The broad market index is up 1.6 per cent for the month.
"Short interest is rising, but the market continues to move higher. If the S&P were to break over 1,600, we could see a monster short squeeze," said Jim Brown, editor of options analytics firm optioninvestor.com, in a note late on Monday.
Pfizer shares weighed on the Dow industrials after the drug maker posted lower-than-expected quarterly earnings and revenue, and trimmed its full-year profit outlook. Its stock fell 3.3 per cent to $29.42.
US retailer Best Buy retreated from its ill-fated European expansion by selling its stake in a joint venture to Carphone Warehouse Group for less than half what it paid five years ago. Best Buy shares jumped 8 per cent to $26.14.
Shares of security software maker Symantec Corp dropped 10 per cent in a span of a few seconds before trading was halted. Equity traders called the move another single-stock "flash crash," in reference to the May 2010 selloff when the Dow fall more than 600 points in a matter of minutes. Symantec was down 1.2 per cent at $24.30 at midday.
Technology stocks led the gainers in the S&P 500, which closed at a record high on Monday. The benchmark index was on track to post its sixth consecutive month of gains.
Apple shares rose 2.3 per cent to $438.83 to lead the S&P 500 slightly higher. The iPhone maker came to market with what could turn out to be the largest non-bank bond sale in history, as it seeks funding to return cash to shareholders.
On the economic front, US home prices rose in February at their fastest rate in almost seven years while consumer confidence rebounded in April. However, business activity in the US Midwest unexpectedly contracted in April to its lowest level since September 2009.
Any pullback in the market has been viewed as a buying opportunity, traders and analysts said.
"The consumer confidence data seemed to mark the lows in the market," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
"The continued market strength is drawing people reluctantly off the sidelines and into equities. Whether you want to buy stocks or not, the strength is forcing your hand."
The Dow Jones industrial average fell 10.12 points or 0.07 per cent, to 14,808.63. The S&P 500 gained 1.04 points or 0.07 per cent, to 1,594.65. The Nasdaq Composite added 14.8 points or 0.45 per cent, to 3,321.82. Equities continue to draw support from expectations that central banks will maintain low interest rates and other economic stimulus measures. A statement from the Federal Reserve due Wednesday is expected to keep in place the central bank's pace of bond buying to stimulate the economy.
The European Central Bank will meet on Thursday. A Reuters poll of economists showed policymakers are expected to cut interest rates.
The S&P 500 ended at an all-time high on Monday as growth-oriented stocks, including energy and technology shares, drove the index's sixth rise in the past seven sessions.
A positive finish to April would deliver a sixth straight month of gains. That would be the longest winning streak since September 2009, when the S&P 500 rallied for seven straight months. The broad market index is up 1.6 per cent for the month.
"Short interest is rising, but the market continues to move higher. If the S&P were to break over 1,600, we could see a monster short squeeze," said Jim Brown, editor of options analytics firm optioninvestor.com, in a note late on Monday.
Pfizer shares weighed on the Dow industrials after the drug maker posted lower-than-expected quarterly earnings and revenue, and trimmed its full-year profit outlook. Its stock fell 3.3 per cent to $29.42.
US retailer Best Buy retreated from its ill-fated European expansion by selling its stake in a joint venture to Carphone Warehouse Group for less than half what it paid five years ago. Best Buy shares jumped 8 per cent to $26.14.
Shares of security software maker Symantec Corp dropped 10 per cent in a span of a few seconds before trading was halted. Equity traders called the move another single-stock "flash crash," in reference to the May 2010 selloff when the Dow fall more than 600 points in a matter of minutes. Symantec was down 1.2 per cent at $24.30 at midday.
Sensex rises 770 points for the week; top 5 stocks which hit 52-week highs
NEW DELHI: The S&P BSE Sensex
managed to recapture its key psychological level of 19000 in a volatile
trade on Thursday and ended the week with gains of over 770 points, or
4.24 per cent.
The 50-share Nifty index also managed to recapture its key psychological level of 5700 and ended the week with gains of over 250 points or 4.6 per cent.
Markets have been in an upward trajectory throughout this week largely on hopes of monetary easing by the Reserve Bank of India, after inflation and current account deficit numbers showed some moderation.
"The Nifty had shown a strong recovery from low of 5477 level in this week and has already gained by about 4.5 per cent in this week," said Rakesh Goyal-Senior Vice President, Bonanza Portfolio Limited.
"Fall in gold prices and oil along with fair valuations seen at lower levels has led to this strong rally. However, since Nifty had been in downtrend for quite some time, profit-booking is likely near 5800 levels," he added.
Nifty has once again entered above 200-DMA level, which is a positive indicator in near term. Last quarter results for this fiscal along with global cues shall remain in focus for coming sessions.
"Investors will continue to put their money into sectors such as defensives, particularly pharma and FMCG where corporate earning visibility is positive," Nirmal Jain, Chairman, India InfolineBSE 1.08 % said in an interview with ET Now.
"In the past banks had gone through some bit of correction and the current valuations have become attractive. Private sector banks particularly will find more interest from the US side," he added.
After a series of bad news on politics, growth and interest rate outlook, India has seen some relief from falling commodity prices, especially gold and oil.
According to analysts, moderation in inflation numbers and commodity prices are likely to support RBI in easing monetary policy next month, which in turn has resulted a sharp rise in beaten down rate sensitive stocks.
"The downtrend in commodities is clearly good for the economy and eases the tail risks on the twin deficit to some extent," BofA-ML said in a note. "We continue to have a mix of rate sensitives like autos, banks and defensives stocks such as pharma in our model portfolio," the note added.
The market has a positive co-relation with crude as well as the CRB index reflecting the impact of global risk appetite on India, say analysts.
"In periods of a sharp fall in commodity prices, markets have on an average given a positive return of 4 per cent over 3 months with a 2 months lag," added the BofA-ML note.
BofA-ML is factoring a rate cut of 100 bps this fiscal, while Kotak expects 25 bps repo rate cut on May 3 and another 50 bps repo rate cut in two installments by end-CY2013.
Five stocks that touched 52-week highs
Sun Pharma: The stock has been in an upswing for the entire week and has gained nearly 5 per cent. The stock touched its 52-week high of Rs 925 on Thursday. However, towards the end the stock closed 0.04 per cent lower at Rs 916.05.
Lupin Ltd: The stock touched its 52-week high of Rs 685.70. However, towards the end of the week the stock pared most of its gains and closed 0.3 per cent lower at Rs 670.80.
ITC: Defensives have been the flavour of the week for markets, with ITC hitting fresh record highs on a regular basis. ITC surged over 1 per cent to hit its 52-week high of Rs 316.35. It closed 0.7 per cent higher at Rs 315.30.
Alembic Pharma: Pharma stocks have been on a roll this week. The stock has managed to gain nearly 10 per cent so far. The stock rose over 1 per cent to hit its 52-week high of Rs 120. However, it pared most of its gains and closed 0.4 per cent lower at Rs 117.90.
IndusInd Bank: The private sector bank surged over 8 per cent to hit its 52-week high of Rs 455.70, after it posted 37.6 per cent jump in net profit at Rs 307.40 crore for its fourth quarter ended March 31, 2013.
The 50-share Nifty index also managed to recapture its key psychological level of 5700 and ended the week with gains of over 250 points or 4.6 per cent.
Markets have been in an upward trajectory throughout this week largely on hopes of monetary easing by the Reserve Bank of India, after inflation and current account deficit numbers showed some moderation.
"The Nifty had shown a strong recovery from low of 5477 level in this week and has already gained by about 4.5 per cent in this week," said Rakesh Goyal-Senior Vice President, Bonanza Portfolio Limited.
"Fall in gold prices and oil along with fair valuations seen at lower levels has led to this strong rally. However, since Nifty had been in downtrend for quite some time, profit-booking is likely near 5800 levels," he added.
Nifty has once again entered above 200-DMA level, which is a positive indicator in near term. Last quarter results for this fiscal along with global cues shall remain in focus for coming sessions.
"Investors will continue to put their money into sectors such as defensives, particularly pharma and FMCG where corporate earning visibility is positive," Nirmal Jain, Chairman, India InfolineBSE 1.08 % said in an interview with ET Now.
"In the past banks had gone through some bit of correction and the current valuations have become attractive. Private sector banks particularly will find more interest from the US side," he added.
After a series of bad news on politics, growth and interest rate outlook, India has seen some relief from falling commodity prices, especially gold and oil.
According to analysts, moderation in inflation numbers and commodity prices are likely to support RBI in easing monetary policy next month, which in turn has resulted a sharp rise in beaten down rate sensitive stocks.
"The downtrend in commodities is clearly good for the economy and eases the tail risks on the twin deficit to some extent," BofA-ML said in a note. "We continue to have a mix of rate sensitives like autos, banks and defensives stocks such as pharma in our model portfolio," the note added.
The market has a positive co-relation with crude as well as the CRB index reflecting the impact of global risk appetite on India, say analysts.
"In periods of a sharp fall in commodity prices, markets have on an average given a positive return of 4 per cent over 3 months with a 2 months lag," added the BofA-ML note.
BofA-ML is factoring a rate cut of 100 bps this fiscal, while Kotak expects 25 bps repo rate cut on May 3 and another 50 bps repo rate cut in two installments by end-CY2013.
Five stocks that touched 52-week highs
Sun Pharma: The stock has been in an upswing for the entire week and has gained nearly 5 per cent. The stock touched its 52-week high of Rs 925 on Thursday. However, towards the end the stock closed 0.04 per cent lower at Rs 916.05.
Lupin Ltd: The stock touched its 52-week high of Rs 685.70. However, towards the end of the week the stock pared most of its gains and closed 0.3 per cent lower at Rs 670.80.
ITC: Defensives have been the flavour of the week for markets, with ITC hitting fresh record highs on a regular basis. ITC surged over 1 per cent to hit its 52-week high of Rs 316.35. It closed 0.7 per cent higher at Rs 315.30.
Alembic Pharma: Pharma stocks have been on a roll this week. The stock has managed to gain nearly 10 per cent so far. The stock rose over 1 per cent to hit its 52-week high of Rs 120. However, it pared most of its gains and closed 0.4 per cent lower at Rs 117.90.
IndusInd Bank: The private sector bank surged over 8 per cent to hit its 52-week high of Rs 455.70, after it posted 37.6 per cent jump in net profit at Rs 307.40 crore for its fourth quarter ended March 31, 2013.
Gold expected to see modest rise after flash crash of 2013
MUMBAI: Once accumulated as wealth by families to tide over rough times,
gold has been reduced to a trading commodity. In the last few days,
prices have plunged to register its biggest loss in more than three
decades.
Gold prices have declined nearly 20 per cent while silver is down 23 per cent in 2013. International insiders report that four major fund houses shorted the commodity, which led to sharp declines on Friday, only to be followed up in Asia. The selling soon got out of control as margins and stoploss triggers came into play.
The gold prices have now officially entered the bear market with more than 20 per cent decline since its record highs above $1,900 in 2011 end.
Indian gold prices have declined less as the fall is cushioned by weakness in the Indian rupee. But here too, the prices have come off the record highs of nearly Rs 33,000 in 2011 to Rs 25,500 per 10 gms today. Gold prices in India hit a 19-month low while silver was at 26-month low and trading below Rs 44,000 per Kg.
The decline in gold led to Indian jewellery and bullion traders lowering shutters due to sharp decline in prices as they incur losses on holding stocks. The sellers are awaiting stability in prices before they quote prices.
In India, wedding season and Akshay Tritiya on May 13 are major buying events, which are expected to lend support to falling prices. Gold prices have seen some rebound from Boston bombings and war rhetoric from North Korea.
The forecast for gold is a difficult one to make right now. Most market analysts and participants feel that 2013 now will go down as a corrective year for precious metals and consolidate for a couple of years with modest gains.
The safe haven buying into the metal has been weak on inflation concerns and hopes of pick-up of growth in the US. While the economic growth data has not been consistent, but it has been getting better, leading to money flowing in equities. Another factor that led to onslaught on commodities was the lower than expected China growth data.
There are reports that Cyprus may be selling 12.5 tonnes of gold. Though the quantity is less than a weekly consumption in India, there is a fear that other EU countries with higher gold reserves could come into the market for sales.
There are also reports of Merril Lynch selling 4 million ounces on Comex which collectively led to decline in prices. To add to it, there has been a bearish gold report from Goldman Sachs that pushed buyers on sidelines. An opportunity selling that turned into panic selling and is now termed as Flash Crash.
The trading margins have increased across at Comex, Shanghai and Indian MCX as well and trading volumes have hit record highs on India's MCX and COMEX in US.
It augurs well with the Indian government which has been trying to discourage gold buying due to its impact on the current account deficit. India, China and much of Asia continue to be big buyers of gold.
Gold prices have declined nearly 20 per cent while silver is down 23 per cent in 2013. International insiders report that four major fund houses shorted the commodity, which led to sharp declines on Friday, only to be followed up in Asia. The selling soon got out of control as margins and stoploss triggers came into play.
The gold prices have now officially entered the bear market with more than 20 per cent decline since its record highs above $1,900 in 2011 end.
Indian gold prices have declined less as the fall is cushioned by weakness in the Indian rupee. But here too, the prices have come off the record highs of nearly Rs 33,000 in 2011 to Rs 25,500 per 10 gms today. Gold prices in India hit a 19-month low while silver was at 26-month low and trading below Rs 44,000 per Kg.
The decline in gold led to Indian jewellery and bullion traders lowering shutters due to sharp decline in prices as they incur losses on holding stocks. The sellers are awaiting stability in prices before they quote prices.
In India, wedding season and Akshay Tritiya on May 13 are major buying events, which are expected to lend support to falling prices. Gold prices have seen some rebound from Boston bombings and war rhetoric from North Korea.
The forecast for gold is a difficult one to make right now. Most market analysts and participants feel that 2013 now will go down as a corrective year for precious metals and consolidate for a couple of years with modest gains.
The safe haven buying into the metal has been weak on inflation concerns and hopes of pick-up of growth in the US. While the economic growth data has not been consistent, but it has been getting better, leading to money flowing in equities. Another factor that led to onslaught on commodities was the lower than expected China growth data.
There are reports that Cyprus may be selling 12.5 tonnes of gold. Though the quantity is less than a weekly consumption in India, there is a fear that other EU countries with higher gold reserves could come into the market for sales.
There are also reports of Merril Lynch selling 4 million ounces on Comex which collectively led to decline in prices. To add to it, there has been a bearish gold report from Goldman Sachs that pushed buyers on sidelines. An opportunity selling that turned into panic selling and is now termed as Flash Crash.
The trading margins have increased across at Comex, Shanghai and Indian MCX as well and trading volumes have hit record highs on India's MCX and COMEX in US.
It augurs well with the Indian government which has been trying to discourage gold buying due to its impact on the current account deficit. India, China and much of Asia continue to be big buyers of gold.