Monday, 7 November 2016

Sensex ends 185 points higher; telecom, capital goods stocks drag

The Indian equity market ended higher on Monday snapping a five day losing streak. After gap up start, Nifty remained in a narrow range for most part of the session; however, profit taking in final hour trimmed the intraday gains.

The metal, pharma, banking, financials, FMCG, power and realty stocks ended with gains. On the other hand, telecom and capital goods stocks were among the major losers. The midcap closed 0.59% higher and smallcap soared 1.19%.

Trading sentiments remained on optimistic note with the report that Foreign Direct Investment in India increased by 30% at $21.62 billion during the April-September period of the current fiscal as against $16.63 billion in the same period last fiscal.

Among the Nifty stocks, Lupin, Aurobindo Pharma, Hindalco, SBI, Bank of Baroda, ITC, ICICI Bank and BHEL were the gainers whereas TCS, Tata Motors DVR, Bharti Infratel, L&T, Tata Motors and ONGC were among the losers today.

Finally, the BSE Sensex ended with a gain of 185 points at 27,459. The BSE Sensex opened at 27,552, touched an intra-day high of 27,591 and low of 27,399.

The NSE Nifty closed with a gain of 63 points at 8,497. The NSE Nifty opened at 8,536 hitting a high of 8,535.85 and low of 8,481.

The India VIX (Volatility) index was down 2.01% at 14.5075. Out of 1,516 stocks traded on the NSE, 385 declined and 1,090 advanced today.

The BSE Midcap and Smallcap indices closed lower.

The rupee was trading down five paise at 66.74 per US dollar.

On the global front, Asian stocks bounced and the dollar strengthened on Monday. Oil prices rose by over 1% with traders citing opportunistic buying after sharp declines in the previous week that brought prices to their lowest since early August because of ongoing weak fundamentals. Japan’s Nikkei closed higher. China’s Shanghai Composite and Hong Kong’s Hang Seng ended marginally up.

In Europe, the FTSE 100 gained 1.3%. The CAC 40 and DAX jumped 1.7% each.

Lupin soared 7% to Rs 1,519 after the company received the inspection closure report from the USFDA for its Goa facility.

Punjab National Bank climbed 6.5%. Punjab National Bank reported a net profit of Rs 549 crore in the second quarter of the current fiscal, a fall of 11% from the Rs 621 crore profit recorded in the corresponding year-ago period.

Dalmia Bharat Ltd gained 1.2% as the Board of Dalmia Bharat and OCL India decided to merge the two entities. The merged entity will have a cement capacity of 25 million tonnes spread across eastern and southern India.

Bank of Baroda rallied 4%. Bank of Baroda reduced the marginal cost of fund (MCLR) based interest rates by 10 basis points across different tenors with effect from November 7.

KPIT Tech gained 1.5%: KPIT Technologies will sell its Berlin-based subsidiary KPIT Medini Technologies AG to ANSYS, but did not disclose the deal size.

Dena Bank dropped 2.5% after the bank posted net loss at Rs 44 crore for the quarter ended September 30, 2016 as compared to net profit of Rs 38.8 crore for the quarter ended September 30, 2015.

HCC climbed 3.8% to Rs 36 on the BSE. The RBI mandated Overseeing Committee (OC) has approved the (S4A) Scheme of Sustainable Structuring of Stressed Assets for Hindustan Construction Company. The ICICI led joint lenders’ forum had proposed the scheme for the infrastructure major. 

A total of 27 stocks registered a fresh 52-week high in trade today, whereas 15 stocks touched a new 52-week low on the NSE.

Sensex rallies over 250 points; Pharma, Banking stocks lead

The Indian stock market snapped a five-day losing streak amid a rebound in Asian equities and also the FBI cleared presidential candidate Hillary Clinton of potential criminal charges in its private email server probe.

The S&P BSE Sensex is trading at 27,518 up 244 points, while NSE Nifty is trading at 8,507 up 73 points.

The BSE Mid-cap Index is trading up 1.28% at 12,903 whereas BSE Small-cap Index is trading up 1.64% at 13,088.

Lupin, ITC, Adani Ports, SBI and Tata Steel are among the gainers, whereas Asian Paints, HUL, TCS, Wipro and Bajaj Auto are losing sheen on NSE.

All the BSE sectoral indices were trading in the positive territory.

The INDIA VIX is down 3.22% at 16.3050. Out of 1,863 stocks traded on the NSE, 1,308 declined, 182 advanced and 373 remained unchanged today.

A total of 17 stocks registered a fresh 52-week high in trade today, while six stocks touched a new 52-week low on the NSE.

PNB Housing Finance shares got listed at Rs 863, a 11.35% premium over the issue price of Rs 775.The stock got listed on NSE at Rs 860, up 10.97%.

The rupee opened marginally lower by four paise at 66.70/$ as against the previous close of 66.74/$.

Asian markets opened in the green after a week of declines & should see pull back from deeply oversold zone extend as we head into the results of US elections due on Tuesday night.

The pessimism & fear caused by the rhetoric & predictions of the results have left an extremely sour taste in the face of most investors with November losses wiping out entire 4 months of profits on equities. With most negatives being priced in expect the Christmas rally on Wall Street to get preponed to this week as chances of a Clinton win return after the FBI report on mails soothes nerves.

While FPI numbers have failed to cheer the street, Mutual Fund industry's asset base hit an all-time high of Rs. 16.3 trillion at the end of October.

The government will kick off its pre-budget consultations with a host of industry associations from today. As the macro numbers come in during the week, a revival in IIP and a dip in CPI will cheer market.