Dalal Street posted a hat-trick today with Sensex ending 130 points up, closing at 20,160.82 and Nifty ending 28 points up, to close above the psychologically important 6100 level at 6,111.25 today.
The Indian stock market was led by the natural resources stocks viz Reliance Industries and Coal India. What led to a splurge in Reliance Industries Ltd. shares on a second day was the discovery of a remarkable gas reserve in it’s KG-D6 Block announced on last Friday. Reliance Industries shares gained 1.8% today.
Coal India Share Price splurged almost 4.5% after it’s Q4 results posted 35% increase in the Q4 Net Profit. Coal India also announced that it would raise coal prices soon to tackle the low-wage rate and fuel cost. Coal India Q4 results overshadowed the market estimates and gave enough reason to the market to make call it a Buy for the Coal India Shares.
Another company to make a remarkable up move today was Hero Motocorp, with it’s shares rising 5% to Rs.1745.75/- Hero Motocorp is up almost 22% in the past one month and has given good returns to it’s traders.
Confidence levels of investors in the Indian stock market do swing in the pendulum given the high volatility being witnessed for some time. Currently, it is positive sentiment that is ruling the roost. Thanks to the RBI governor focusing on economic growth against the easing inflation, which strengthens hopes about future rate cuts. Both shares and bonds rallied, leading to the both Sensex Nifty exhibiting their highest figures in several years.
At 2.34 pm, while the sensex rose 464.63 points (2.36 percent) at 20186.92, the nifty registered a rise of 144.75 points or 2.41 percent at 6140.15. Most of the gains in stocks and bonds in the Indian market this month have been triggered by strong global cues. To add to the rise are considerable FII investments and hopes about RBI buying bonds to deal with a tight liquidity crunch in the banking system.
It was only a week ago that the RBI had disappointed investors by pronouncing about its cautious stance on future monetary easing. It is to wait and watch whether RBI would cut rates during the next meeting however for now the India Stock Market is surging on RBI Rate Cut hopes!
Investors and market analysts are taken by surprise with the sensex rising to its highest close in nearly three and half months, ending above the 20,000 figure. Major gainers were ITC Ltd. and Maruti Suzuki, trending at 2.8 percent and 4.4 percent higher respectively. ITC’s rise was triggered by hopes of foreign investors to be continuing to pick up domestic blue chips. For Maruti Suzuki India Ltd, it is the sliding yen against the dollar that led to its surge.
Nifty exhibited similar uptrend, rising 44.60 points or 0.74 percent, to end at 6094.75 after breaching the key 6,100 level earlier in the day. Sensex ended at 20082.62, up 143.58 points or 0.72%.
To add to the market positivism is the country’s industrial production growth stepping up to 2.5 percent in March from the preceding year. While the manufacturing segment accelerated 3.2 percent, capital goods production rose by an annual 6.9 percent from a year earlier.
Are ICICI Bank NSE stocks bullish? The country’s 2nd largest bank registered positively surprising figures in its third quarterly results and a similar positive note is expected in the fourth quarter. ICICI Bank Q4 results would be reported tomorrow. The stocks are trending at present, maintaining their bullishness enduringly though volatility did hit the bank to under-perform temporarily. The stock was leading gains on the Sensex and the Nifty; trending up 1.6 pct to 1180 rupees
Recommendations for ICICI Bank NSE stocks are directed towards buying on declines. For intra-day traders, close market watch is the gain-game! According to the last 52-week price change dynamics, the bank’s stock was perched lowest at Rs. 767.40 and highest at Rs. 1232.
The third quarter ending December 2012 saw the bank posting a net profit of Rs 2,250 crore, which was up 30.2 per cent compared to preceding year during the same quarter. Fee-based income and robust loan growth were the triggering factors. A recent deal signed with Pan-African lender Ecobank Transnational (ETI), further enhances the bank’s stature. View ICICI Bank NSE stock chart for latest statistics and all the best for tomorrow after it’s Q4 results.
What analysts expected from Infosys and what the country’s second largest IT service provider projected turned out to be disappointing after the declaration of q4 (ending March 31, 2013) results. Infosys recorded a 3.4 percent rise in quarterly profit. Revenues rose by 18 percent to Rs 10,454 crore from Rs 8,852 crore of the same quarter period a year ago. The profit generation was triggered by winning of orders from companies including German automaker BMW. The IT giant forecasted that revenues would grow to 10 percent from 6 percent, but it failed to meet its revenue guidance. It achieved Rs 40,352 crore against a projected Rs 40,746 crore. What the company guided in dollar terms failed too. Analysts expected Infosys q4 results to match upbeat numbers of q3; the figures failed to meet expectations.
Infosys Ltd NSE NSE shares plunged 15 percent in opening trade and crashed further thereafter following the results and weak guidance projected for fiscal 2014. The tepid guidance provided was the biggest disappointment for the market and industry alike.
Perhaps MD S D Shibulal was right when he commented on the results, saying the IT industry faced global uncertainties, which was challenging. Besides, he emphasized about building Infosys as a high-quality company and etching a distinguished stature as a ‘partner of choice’ for its clients.
One of the stocks in news currently is Tata Motors on NSE. The auto giant saw an acceleration of more than 4 percent following robust record global retail sales of its Jaguar Land Rover. The year-on-year increase in sales of Tata Motors products in the global market is only good news for investors at large. Going by the last 52 week performance statistics, Tata Motors NSE stock price was perched lowest at Rs. 203.05 and highest at Rs. 337.40.
It is overall good news for auto stocks in the Indian market. Maruti Suzuki India NSE is trending too. This company’s shares may enduringly witness a bullish trend following fall of the yen. News is also in air about the company spearheading parent Suzuki’s export strategy for major markets. According to the last 52 week performance, Tata Motors NSE stock price exhibited its lowest at Rs. 1051 and highest at Rs. 1639.
Big bang reforms implemented in September 2012 positively affected market sentiments, leading to remarkable trending of the sensex nifty for days to follow. Volatility still exhibited its impact on the indices. But Friday saw the nifty in its lowest close, down 2.3 percent, with losses for two weeks ever since the reforms were introduced. In two days FII shares worth a net 6.9 billion rupees were sold, which was indeed a big figure! Shares with substantial foreign holdings were the most affected.
Fears about foreign investors exiting some of their Indian holdings hit price trends. This follows majorly from current account deficit rising to a record high, political instability, and weak global cues; which affects sensex nifty shares.
According to experts, the market may remain under pressure for a few more days. Among major decliners were ICICI Bank, HDFC Bank, and Bharti Airtel. Hero Motocorp touched it’s 52 week low 1438. Experts had indicated Sell signal for Hero Motocorp earlier this week. Swimming against the volatility were gainers like Maruti Suzuki India and Reliance Industries.
Ebb and flow being humdrum affairs in the stock narket, it is no surprise to find the stock market trending for the second consecutive day. The uptrend is triggered by recent underperformers, especially banks, gaining with expiry of derivatives. Another triggering effect is accentuated by gaining of technology stocks with declaration of quarterly results round the corner. The overall performance of Indian Stock Market for March has not been satisfactory; causes are reforms not being well implemented, DMK withdrawing support, threat of early elections, and RBI going cautious on future rate cuts.
To add to the volatility of the Indian Stock Market is the widening gap of the current account deficit. The December 2012 quarter saw the deficit gap to a record high after heavy imports of oil and gold not to mention subdued exports. This has kept the rupee under pressure. The urgent need of the hour is the government tackling the issue fast.
Every trader expected a rate cut of atleast 25bps from RBI and some volatility in the Stock Market. May be a movement of 50-100 pts in BSE Sensex was anticipated by Traders. However just few minutes after the RBI rate cut was announced there came a Breaking news in TV channels which pushed Sensex down to almost 300 points in the span of 11am – 11:30am today. The Breaking news came straight from our Indian Politics which stated “DMK withdrawn support from the UPA coalition” reason being a protest against the UPA government’s position on a US-backed United Nations resolution on war crimes carried out during Sri Lanka’s civil war. The market saw a sudden shift of focus from RBI’s decision to DMK’s pullout.
Coming back to RBI repo rate cut – In the mid-quarter policy review today, RBI’s decision of 25bps cut has brought down the current RR to 7.5% and the CRR unchanged at 4.0%
RBI also stated that further easing on Repo rate will be limited however Trade experts are of the view that RBI would cut down the Repo rate by another 25bps in May this year. As per Rupa Rege Nitsure, Chief Economist, Bank of Baroda, Mumbai “The RBI had spoken of the limited scope for easing even in the January policy but have eased rates today. So I am surely expecting another baby cut of 25 bps in the May policy which will be influenced by the trajectory of core inflation which is expected to remain low. There is unlikely to be any aggressive easing, but easing will continue at a gradual pace going ahead.”
Change is the only constant in the India Stock Market. While the last week extended an excellent rally in Sensex and Nifty, today i.e. March 13th 2013 showed the biggest single day fall in the BSE Sensex. The benchmark index fell 202.37 points or 1.03% and ended at 19,362.55, the highest daily fall since Feb 28, 2013; while the 50 share Nifty fell 62.90 points or 1.06% and ended at 5,851.20 jumping below the 5,900 level.
The biggest loser on NSE among interest rate sensitive stocks was ICICI bank Ltd. ICICI Bank NSE fell 3.3% on doubts about RBI interest rate cuts next week. Another reason could be the Key inflation data report which is to be unveiled tomorrow and plays a significant role in the RBI decision making process for a rate cut.
Amongst the Auto stocks, TATA Motors NSE fell 1.2% after TATA Motors Ltd global Sales fell 22.4% in Feb, which also turns out to be fourth consecutive monthly slide for TATA Motors Ltd. Another loser on the Auto Index was Bajaj Auto Ltd, which fell 3.1%
Decline in Global market also seems to be weighing the India Stock Market!