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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

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