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Wednesday, 31 December 2014

Goodbye 2014: Nifty ends tad below 8300, Sensex up 96 pts

03:30 pm Market close

The market has finally wrapped up trading for 2014 on a good note. After some massive gains in the later half of the year, the Sensex ended up 95.88 points at 27499.42, and the Nifty was up 34.45 points at 8282.70 on Wednesday.

About 1671 shares have advanced, 1196 shares declined, and 126 shares were unchanged.

BHEL was up 3 percent while NTPC, Dr Reddy's Labs, Reliance and Tata Power are gainers in the Sensex while M&M, HDFC Bank, Bajaj Auto, Maruti and HUL are losers.

03:00 pm Year in review

Indian shares edged up, capping a record-setting year with hopes that the momentum would sustain in 2015 should the government announce additional economic reforms and the RBI start cutting interest rates.

Foreign investors were key to the rally, buying a net USD 16.1 billion in shares so far this year, the biggest net purchase since buying USD 29.4 billion worth in 2010. Analysts say that with inflation under control, the RBI can now afford to ease interest rates while they are hopeful that Modi will introduce additional policy reforms after measures on land acquisition and insurance this month.

02:55pm Market Outlook

"Markets loved Modi and this saw FIIs pumping in close to USD 16 billion in equities during the current year. The BSE touched new highs in 2014 and are likely to carry this momentum in the coming year too. The caveat, of course, is delivery on domestic policy implementation and relative global economic stability. The government’s focus on increasing retail participation in equity markets should see some clearer guidelines and will be reinforced with continuing optimism. Money from foreign and domestic sources should continue to flow in as everyone will like to get a slice of the India growth story. Rupee has been toggling at 62-64 and that may not necessarily be a bad thing though a steep fall could spook investors for a part of 2015," says Jayant Manglik, president - retail distribution, Religare Securities.

Manglik expects FY15/FY16 earnings growth of around 15 percent each and the best case scenario of 30,000 for the Sensex in case of a market-friendly budget. "Overall the new year looks good with significantly reduced inflation and signs of policy decisions being taken in earnest," he says.

02:45pm India's external debt

India's total external debt stood at USD 455.9 billion at the end of September, up USD 13.7 billion or 3.1 percent from the end of March, the finance ministry said in a statement on Wednesday.

The rise in external debt during the period was mainly due to an increase in commercial borrowings and deposits mobilised from non-resident Indians, the ministry said in a statement.

The share of India's short-term debt in the total external debt was at USD 86.4 billion or 18.9 percent as of end-September, the statement added, reports.

02:30pm FII View

The new year, 2015, is likely to see a decent rally but it is unlikely to be as grand as the one seen in 2014, says Morgan Stanley’s executive director Amay Hattangadi.

“India saw a complete 180-degree shift in sentiment. Our removal from the fragile five has been very critical to the sentiment in 2014,” says Swanand Kelkar, ED, Morgan Stanley.

Furthermore, 2015 is likely to see some sweet spots, which according to Hattangadi is likely to be: the logistics and auto sector. Hattangadi believes the theme has shifted from unorganized to organized sector and to the aspirational demand.

02:00pm Market Check

Equity benchmarks continued to trade with a positive bias with the Nifty holding above 8250 while midcap and smallcap outperformed. The market breadth was positive; about 1605 shares have advanced while 1127 shares declined on the Bombay Stock Exchange.

The Sensex climbed 82.80 points to 27486.34 and the Nifty rose 27.10 points to 8275.35 while the BSE Midcap and Smallcap indices gained 1 percent each.

Jitendra Sriram of HSBC says equity markets will give higher returns than debt in 2015. He likes industrials and metals sectors in 2015.

Shares of Dr Reddy's Labs and BHEL climbed 2-3 percent followed by Reliance Industries, Axis Bank, Bharti Airtel, Hindalco Industries and Sesa Sterlite with more than a percent gain. However, HDFC and HDFC Bank were down half a percent each.

Select auto stocks were sluggish reacting to the likelihood of the government withdrawing excise duty concessions to the auto industry from January 1, 2015. Maruti told that it has not received any communication from the government as yet but does not expect long term negative impact on car demand. Maruti and Bajaj Auto declined 0.4 percent each while Mahindra & Mahindra dropped 2 percent. Tata Motors and Hero Motocorp recouped losses, up 0.8 percent each.

Telecom stocks remained in focus. Telecom Regulatory Authority of India released recommendations on reserve price and valuation for 2100 megahertz. Reserve price pan-India kept at Rs 2,720. Analysts say overall, reserve price is on the higher side and only serious players are expected to bid.

The rupee recovered further, currently trading at 63.20 a dollar, up 18 paise compared to previous day's closing value of 63.38. More information please visit this site

Sensex, Nifty marginally up; Midcap, Smallcap outperform

12:58pm Market Update

The market maintained its morning gains with the Sensex rising 62.18 points to 27465.72 and the Nifty gaining 23.75 points to 8272.

The market breadth was positive as about 1510 shares have advanced and 1060 shares declined on the Bombay Stock Exchange. The BSE Midcap Index gained 0.9 percent and Smallcap climbed 0.8 percent.

12:45pm Interview

KEC International bagged orders worth Rs 1412 crore in T&D and cable businesses.

According to Ramesh Chandak, MD & CEO, the average margins for these new orders would be over 10 percent, which are much better than earlier 5.5-6 percent margins.

Moreover, with the last two quarters showing a pick-up in growth, FY15 overall has been a better year, says Chandak.

The order book backlog is more than Rs 9000 crore including these recent orders and the L1 for the company is more than Rs 2000 crore, says Chandak.

12:30pm Brent crude falls further

Brent crude prices dropped towards USD 57 a barrel on Wednesday as weak Chinese manufacturing data and demand concerns outweighed supply disruptions in Libya.

China's factory sector shrank for the first time in seven months in December, with the final HSBC/Markit Purchasing Managers' Index (PMI) for this month coming in at 49.6.

The final reading was higher than a preliminary reading of 49.5, but down from the final 50.0 in November. The 50.0 mark separates growth from contraction.

China is the world's second largest oil consumer and any contraction in its factory sector can have a big impact on demand.

Brent for February delivery fell 69 cents to USD 57.21 as of 0622 GMT, after earlier dropping as low as USD 56.87.

US crude for February delivery was down 50 cents to USD 53.62, reports Reuters.

12:00pm Market Check

Equity benchmarks continued to trade higher with marginal gains while the broader markets outperformed. The Sensex advanced 45.02 points to 27448.56 and the Nifty rose 17.25 points to 8265.50.

The BSE Midcap and Smallcap indices gained 0.8 percent each. About 1443 shares have advanced, 977 shares declined, and 109 shares are unchanged on the Bombay Stock Exchange.

The rupee inched higher on global unwinding of dollar longs, up 8 paise to 63.30 a dollar. Indian traders too sold long dollar positions ahead of January quarter which is usually strong for the rupee.

State-run power equipment maker BHEL and drug maker Dr Reddy's Labs topped the buying list on Sensex, up 2 percent each followed by ICICI Bank, Reliance Industries, Axis Bank, Infosys, SBI, ITC, NTPC and ONGC with 0.2-1 percent gains.

Telecom stocks were in focus as Telecom Regulatory Authority of India released recommendations on reserve price and valuation for 2100 megahertz. Reserve price pan-India kept at Rs 2720 crore. Analysts say overall, reserve price is on the higher side and only serious players are expected to bid. Bharti Airtel gained nearly a percent.

Auto stocks were sluggish reacting to the likelihood of the government withdrawing excise duty concessions to the auto industry from January 1. Maruti told that the company has not received any communication from the government as yet but do not expect long term negative impact on car demand. Mahindra & Mahindra fell 1.6 percent. Bajaj Auto and Maruti Suzuki declined over half a percent while Tata Motors and Hero Motocorp rebounded, up over 0.4 percent.

Globally, China led gains, up 2 percent in thin trade despite data showing slight contraction in manufacturing activity. More information please visit this site

Tuesday, 30 December 2014

Sensex, Nifty firm amid consolidation; ICICI, RIL support

10:25am Market Expert

2015 will be a good year, but it may not give as good returns as 2014, says Dilip Bhat of Prabhudas Lilladher. But for retail investors it may be a great time to build their portfolios for the next 3-5 years, he adds.

For the January series, or even the month of January there are three factors that need to be watched, according to Bhat. Over the last month, FII interest has waned off significantly, but the broad assumption is it will make a comeback, he says. There may be a pre-Budget rally and the Nifty may once again see 8500-8600 for a brief period. But the spoilsport, according to him, will be the third quarter numbers.

Bhat says the possibility of excise duty concession being withdrawn from the auto sector is a known factor and it is unlikely to impact the market much.

10:00am Market Check

Equity benchmarks gained some strength after flat opening today. The Sensex rose 68.02 points to 27471.56 and the Nifty climbed 22.30 points to 8270.55. Banks, capital goods, oil & gas, metals and power stocks supported the market while auto stocks remained under pressure.

The broader markets gained too with the BSE Midcap and Smallcap indices rising 0.5 percent each. Nearly two shares advanced for every share declining on the Bombay Stock Exchange.

Gaurav Mehta, Ambit Capital says with key trendline resistance in the 8150-8200 region having been respected barring a brief intra-week breach, the near-term uptrend in the index has been reinforced while the structural trend stays up.

“We look for higher levels on the Nifty over the next few weeks, in the range of 8800-9000,” he adds.

Shares of ICICI Bank, Reliance Industries, Axis Bank, State Bank of India, L&T, Dr Reddy's Labs, ONGC, HDFC and ITC were up 0.2-1 percent whereas HDFC Bank declined 0.4 percent.

Auto stocks like M&M, Bajaj Auto, Tata Motors, Maruti and Hero dropped 0.2-1.7 percent on likely removal of excise sops to auto industry. More information please visit this site

Sensex, Nifty end flat; oil stocks drag, SBI & BHEL up 1-2%

03:30 pm Market close

Due to thin trade volume in festive season, the market has once again ended flat. The Sensex was up 7.81 points at 27403.54, and the Nifty ended up 1.95 points at 8248.25.  About 1456 shares advanced, 1414 shares declined, and 130 shares were unchanged.

BHEL, Dr Reddy's Labs, Axis Bank, NTPC and SBI were gainers while Hero, Tata Steel, Reliance, ONGC and Bajaj Auto.

03:00 Woes fpr SpiceJet

The state-run airport operator has asked troubled budget carrier SpiceJet to deposit Rs 200 crore by December 31, failing which the airline could be put in the so-called cash-and-carry mode, a senior government official said.

SpiceJet has so far given a bank guarantee of Rs 82.5 crore of the total due, the official, who declined to be named, told reporters in New Delhi. He said the aviation ministry would decide the next course of action in case the airline didn't pay by the deadline.

Cash-strapped SpiceJet needs urgent funding to continue operations smoothly. It was forced to briefly ground its aircraft this month as suppliers refused to fuel them.

Co-founder Ajay Singh is leading a rescue plan for the airline and could team up with private-equity players to infuse funds, government officials have said previously.

02:30pm Aban gains further

P Sudhakar, additional general manager, CARE Rating said the firm upgraded credit rating of Aban Offshore from a ‘D’ rating to ‘BB-’

Sudhakar says there have been numerous positives in the industry as well as the company that has led to this upgrade.

What seems to have worked for the company is the steps it has taken to improve its balancesheet by raising equity and its refinancing of overseas liabilities of USD 2 billion. The stock rallied 4 percent today in addition to 17 percent upside in previous session.

02:00pm Market Check

Equity benchmarks remained choppy in afternoon trade amid low volumes while the broader markets outperformed. The Sensex dipped 14.08 points to 27381.65 and the Nifty slipped 5.20 points to 8241.10.

The BSE Midcap and Smallcap indices gained 0.4 percent and 0.2 percent, respectively. About 1320 shares have advanced, 1344 shares declined, and 118 shares are unchanged on the Bombay Stock Exchange.

Sanjay Dutt, director, Quantum Securities does not foresee a Budget-rally and neither does he think there will be new highs for the Indian equity market in 2015 because the macro issues for India still persists.

He thinks 2015 could be a struggle for the market and a year of consolidation contrary to street expectations. However, individual stock opportunities do exist.

Reliance Industries, ONGC, Hero Motocorp and Sesa Sterlite were top losers on the Sensex, down 1-2 percent. Tata Steel dropped 1.4 percent as the company warned of a hit to its profitability in the third quarter because of the closure of its captive iron-ore mines in Jharkhand and Odisha. The closure of mines forced the company to operate below capacity for more than a month during the quarter.

Cairn India was down 1.7 percent as Brent crude hit fresh 5 and a half-year low of USD 57, down 1.12 percent to USD 57.23 a barrel and US crude declined 1 percent to USD 53.10 a barrel as persistent worries about a global supply glut offset concerns about output disruptions in Libya.

However, Dr Reddy's Labs, BHEL and NTPC gained 1 percent each followed by SBI, ICICI Bank, Infosys, Axis Bank, L&T and M&M with marginal gains. More information please visit this site

Oil & metal stocks slip; Nifty struggles below 8250

The market is sluggish with no major trigger to drive it. The Sensex is down 43.55 points at 27352.18, and the Nifty is down 9.75 points at 8236.55. About 1221 shares have advanced, 1362 shares declined, and 107 shares are unchanged. 

Oil stocks slipped as Reliance, Tata Steel, Sesa Sterlite, Bharti Airtel and Hero MotoCorp are among the losers while BHEL, NTPC, Dr Reddy's Labs, HUL and L&T.

Gold ticked higher on weaker equities, but gains were limited as the dollar was perched at a near-nine-year high versus a basket of major currencies, undermining the metal's appeal as a hedge.

For the year, gold is down about 1.5 percent, hurt by a stronger dollar and expectations of an interest rate hike in the United States. The recent plunge in oil prices have also hurt bullion's appeal as a hedge against oil-led inflation.

Gold slumped 28 percent in 2013 as investor demand waned on the back of a robust US economy and better-yielding stocks. Many analysts have forecast more declines in gold prices. More information please visit this site