Thursday 24 October 2013

Sensex hits 21,000; then retreats

BSE Sensex closed at 20725 down 42 points, while NSE Nifty closed at 6,164 down 14 points over the previous close.

The BSE Sensex surged past the 21,000 mark for the first time in three year on Thursday ahead of the Reserve Bank policy meet scheduled to be held on October 29. However, the gains were short-lived as traders preferred to book some profits after higher levels.

In early trades, the BSE Sensex hit intra-day high of 21,039 and the Nifty too hit a nearly three year high of 6252.

Sensex hit the 21k milestone on the back of strong inflows from foreign investors throughout the month. Foreign funds have bought US$1.7bn in Indian equities so far this month, taking their total purchases for the year to US$15.35bn.

Today’s intra-day decline was led by selling pressure in the IT, Telecom, Power and the Realty stocks. Even the mid-cap and the small-cap stocks were under pressure. However, bucking the negative trend were the capital goods, auto, consumer durables and the banking stocks.

BSE Sensex closed at 20725 down 42 points, while NSE Nifty closed at 6,164 down 14 points over the previous close.

HCL Tech, Wipro, Coal India, TCS, BHEL, Jindal Steel, PowerGrid, NTPC and Reliance Industries were among the top losers in the Nifty.

On the other hand, Ranbaxy, IDFC, NMDC, M&M, GAIL, HDFC Bank, L&T and Tata Motors were among the top gainers.

On the BSE, 1292 stocks declined against 1197 advancing stocks, while 184 remained unchanged.

The INDIA VIX was up 1.4% at 20.64. It hit a day’s high of 21.27 and low of 19.20.

Stock News 

Amar Ambani, Head of Research at IIFL said, “ACC balance sheet continues to be strong with cash and cash equivalent at Rs30bn. Debt/equity continues toremain low as most of the recent expansion has been funded through internal accruals. On business front, we expect cement demand to pick up due to onset of peak construction season and infrastructure spending picking up pace ahead of election. We believe current valuations leave enough room for upside and recommend Buy.”

Kotak Mahindra Bank erased early gains to end lower by 0.6% to close at Rs706. The bank managed to announce quarterly results which were inline with expectations. The 2nd quarter consolidated net profit grew 16% yoy to Rs5.83bn. Net interest margin of the bank increased 10 basis points sequentially (30 basis points on yearly basis) to 4.9% during September quarter.

Shares of Bharti Airtel gained half a percent to close at Rs349 after the company announced that its board approved the merger of wholly owned subsidiary Airtel Broadband Services with itself.

Shares of Jet Airways declined by 2.2% to close at Rs338 after the company reported an eight-fold increase in losses at Rs8.91bn in the September quarter on account of steep fall in the rupee, slowdown in the domestic aviation market and rise in fuel costs. It had logged Rs997mn loss in the year-ago period.

Shares of IPCA Labs gained by 2.12% to close at 678 after the company reported a 3.48% rise in its standalone net profit at Rs1.29bn for the second quarter ended September 30, 2013. The company had posted a net profit of Rs1.25bn in the corresponding period last fiscal.

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