ECONOMY ANALYSIS FOR 31 OCTOBER 2014

HEADLINES

ECONOMY ANALYSIS

•  Sensex at new closing high, Nifty ends Oct expiry at 8169
•  Maruti Suzuki Q2 net up 29%, board raises FII limit to 40%
•  ICICI Bank Q2 profit, NII climb 15.2%; asset quality hit
•  YES Bank Q2 profit up 30% on lower provision, strong NII
•  Sadbhav's infra arm likely to file IPO papers by December
•  Realty stocks rally as govt eases FDI norms

MARKET ANALYSIS

• The S&P BSE Sensex rallied about 300 points in intraday trade on Thursday to hit its fresh record high of 27390.60, at a time when other Asian markets were trading mixed after the Federal Reserve overnight ended its monthly bond-buying program that quadrupled its balance sheet to $4.4 trillion.
• The S&P BSE Sensex hit its all-time high after a flat start, led by gains in realty stocks, InfosysBSE 1.72 %, TCS, HDFC and Dr Reddy's Laboratories.
• The Sensex closed the day at 27,346.33; up 248.16 points. The 50-share Nifty shut shop at 8,169.20; up 78.75 points.
• The previous all-time high for Sensex was 27,354.99.
• The US Federal Reserve has ended its quantitative easing program, which it began five years ago, to keep economy afloat in the wake of a huge financial crisis.
• US has ended its quantitative easing program, but inflows in Indian markets are likely to continue as other countries such as Japan and Europe are extending their easing monetary policy.

EQUITY REPORT FOR 30 OCTOBER

MARKET ANALYSIS

• The S&P BSE Sensex, after being rangebound for most part of the session, gained momentum in the last one hour of trade to finish near day's high.
• According to analysts, sentiment on global markets turned bullish on hopes that the US Federal Reserve may not signal earlier-than-expected rate hike at the FOMC meeting.
• The Sensex is only 257 points away from its all-time high of 27,354.99 and 222 from all time closing high of 27,319, recorded on September 8.
• If the global markets remain supportive and the rally continues, the benchmarks may hit fresh highs in next couple of sessions.
• The 30-share index ended at 27,098.17, up 217.35 points or 0.81 per cent. It touched a high of 27,126.30 and a low of 26,971.16 in trade today.
•  The Nifty closed at 8,090.45, up 62.85 points or 0.78 per cent. It touched a high of 8,097.95 and a low of 8,052.25 in trade today.
•  The market breadth was positive on the BSE with 1,604 gainers against 1,362 losers.

ECONOMY ANALYSIS

• Sensex surges 217 pts, Nifty ends at 8090 ahead of expiry; SBI weak
• Tech Mahindra Q2 profit jumps 14%, $ revenue rises 5.2%
• Sesa Sterlite Q2 profit slips 32% to Rs 1,658 cr
• OBC Q2 profit rises 16% to Rs 291 cr, asset quality weakens
• Govt submits list of 627 black money a/c holders to SC

EQUITY MARKET ANALYSIS FOR 29 OCTOBER 2014

ECONOMY ANALYSIS

•  Sensex ends up 128 pts; Ranbaxy & Sun Pharma rise 5-6%, SBI gains
•  Ranbaxy turns corner, Q2 net at Rs 478 cr; OPM up 1770 bps
•  Lupin Q2 profit up 55%, misses topline & EBITDA estimates
•  Tech Mahindra Q2 profit may surge 15.5% to Rs 729 cr: Poll
•  State Bank of Mysore spikes 19% on strong Q2 profit
•  Expect 75 bps slash once RBI begins rate cut cycle: BofA ML

MARKET ANALYSIS

• The Sensex surged over 400 points in intraday trade today, high-on BJP's win in Assembly elections. The Sensex ended the day at 26,429.85; up 321.32 points.
• The Nifty closed the day at 7,879.40; up 99.70 points.
• The foreign institutional investors, who are generally sellers in October, are expected to make a come back following the recent developments in India.
• Scepticism against Modi government, slowdown concerns in China and recession in Europe have been some of the factors that kept FIIs on the back-foot in October.
• According to CLSA report, over 50 US-based investors revealed that some amount of scepticism has been building up against Modi due to perceived lack of concrete steps. Some US investors booked profit and reduced India weight in the recent months.
• However, global investors haven't jumped onto the India bandwagon as yet. Analysts say FIIs will now have to balance between India.
• "We expect heightened decision making over the next 3-6 months which should be a positive for domestic cyclical recovery," said CLSA report.

EQUITY REPORT FOR 28 COTOBER

DAILY MARKET ANALYSIS

ECONOMY ANALYSIS

•  Indian markets get cold feet ahead of crucial 2-day FOMC meet
•  Sobha Q2 sales bookings drop 12% to Rs 559 cr
•  Kotak Mah Bank Q2 net profit up 26% at Rs 718 cr
•  Kansai Nerolac Paints Q2 net profit up by 40.62%
•  Unilever Q3 sales disappoint as EMs crimp growth
•  JSPL slips 8% as CBI investigates Vadra deal

MARKET ANALYSIS

• The S&P BSE Sensex ended its 5-day winning streak as traders booked profits after the benchmarks moved to higher end of trading range. Gains in capital goods, banks and power were offset by losses in oil & gas, auto and FMCG sectors.
•  The 30-share index ended at 26,752.90, down 98.15 points or 0.37 per cent. It touched a high of 26,994.96 and a low of 26,726.84 in trade today.
•  The S&P BSE Midcap Index fell 0.84 per cent and the S&P BSE Smallcap Index was 0.19 per cent higher.
•  Among the sectoral indices, the S&P BSE Capital goods Index was up 0.70 per cent, the S&P BSE Bankex was 0.48 per cent higher and the S&P BSE Power Index rose 0.47 per cent.
•  The S&P BSE Oil & gas Index was 1.45 per cent lower, the S&P BSE Auto Index slipped 0.79 per cent and the S&P BSE FMCG Index declined 1.06 per cent.
•  The market breadth was positive on the BSE with 769 gainers against 57 losers.

Nifty futures above 8000 October 27

Analysis

Nifty October 2014 futures were at 8020, a premium of 24.10 points over spot closing of 7995.90*Turnover on NSE's futures & options (F&O) segment declined to Rs 225494.56 crore from Rs 296531.74 crore on Tuesday, 21 October 2014

• Reliance Industries October 2014 futures were at 951.45, at a premium over spot closing of 947.15
• State Bank of India October 2014 futures were at 2587, at a premium over spot closing of 2576.80
• Tata Motors October 2014 futures were at 517.80, at a discount compared to spot closing of 518.65
• In the spot market, the 50-unit CNX Nifty rose 68.15 points or 0.86% to settle at 7,995.90, its highest closing since 24 September 2014 The October 2014 derivatives contracts expire on 30 October 2014.

EQUITY REPORT FOR THIS WEEK

MARKET ANALYSIS

•  Sensex gains 109 pts; banks lead, HCL Tech & TCS tank 9%

•  Axis Bank Q2 profit rises 18.3%, asset quality stable

•  Investors put over Rs 30,000 cr in MF schemes during September

•  Difficult to beat FY14 growth in FY15: TCS

•  Hired 4000 employees in Q1; expect better utilisation: HCL

EQUITY REPORT FOR 20 OCTOBER 2014

ECONOMY ANALYSIS

• Sensex snaps 2-day fall; IT Index plunges over 4%

• Zee Entertainment Q2 profit falls 3.7%, OPM beats estimates

• Axis Bank Q2 profit may jump 18%, assset quality key: Poll

• HCL Technologies Q1 net profit grows 2.1% QoQ, 32% YoY to Rs 1873 crore

• DLF approaches SAT against Sebi order

MARKET ANALYSIS
 

• The benchmark Sensex today rose for the first time in three sessions and ended over 109 points higher at 26,108.53 led by gains in shares of Hero MotoCorp, HDFC Bank, BHEL, M&M and SBI, amid rebound in global markets after positive US data.

• The 30-share Sensex reclaimed the 26,000-mark by rising 109.19 points, or 0.42 per cent, to end the session at 26,108.53 after climbing to 26,248.54 intra-day. The surge comes after the barometer lost 384.73 points in the previous two sessions.

• Out of the 30-share Sensex, 21 stocks ended with gains while nine counters closed in the negative zone.

• The 50-scrip NSE index Nifty also recovered by 25.00 or 0.32 per cent, to 7,773.20. Intra-day, it regained the 7,800-mark to touch the day's high of 7,819.20.

Sensex closes below 26000, sheds 350 pts

ECONOMY ANALYSIS

•  Sensex closes below 26000, sheds 350 pts; Hindalco down 6%

•  Equity MFs receive Rs 34,000 cr in Apr-Sept

•  TCS Q2 profit seen up 5%, dollar revenue may grow over 7%

•  World markets on edge after worst turmoil in four years

•  IL&FS Engineering soars 20% on big order in Bihar from NHAI

•  Growth woes overdone; see 1-2% daily swings in US mkt: NAB

MARKET ANALYSIS

 

 

• Weakness in the US markets pushed the 50-share Nifty index below its crucial psychological support level of 7800 and Sensex below 26000 on Thursday, led by a sell-off in European markets.

• The 50-share Nifty index plunged over 100 points in the last half-an-hour of trade, while the BSE Sensex suffered losses of over 300 points in trade today.

• The sell-off was more severe in the S&P BSE Sensex as the index slipped below its crucial psychological level of 26000. The index fell as much as 416 points in trade, led by losses in RIL, HDFC, HDFC Bank, and M&M.

• The 30-share index finally closed at 25999.34, down 349.99 points or 1.33 per cent. It touched a high of 26,462.08 and a low of 25933.98 in trade today.

• The Nifty ended at 7,748, down 115.80 points or 1.47 per cent. It touched a high of 7,893.90 and a low of 7,729.65 in trade today.

ECONOMY AND MARKET ANALYSIS FOR 16 OCTOBER 2014

ECONOMY ANALYSIS

•  Choppy Sensex, Nifty close lower; DLF tanks 28%, BHEL up 4%

•  Sept WPI hits 5-yr low of 2.38%; food prices cool to 33-month low

•  IEA revises world oil demand growth sharply lower

•  RIL up 2%, brokerages say downstream capex to drive growth

•  IL&FS Engineering soars 20% on big order in Bihar from NHAI

MARKET ANALYSIS

• The Nifty ended a rangebound session in the red in absence of cues from global peers and trading holiday tomorrow on account of assembly elections in states of Maharashtra and Haryana.

• The 50-share Nifty closed at 7,864, down 20.25 points or 0.26 per cent. It touched a high of 7,928 and a low of 7,825.45 in trade today.

• The S&P BSE Sensex ended at 26,349.33, down 34.74 points or 0.13 per cent. It touched a high of 26,550.79 and a low of 26,212.01 in trade today.

• DLF (27.98 per cent), BPCL (2.34 per cent), Cairn India (1.95 per cent), HCL Tech (1.42 per cent) and Tata Motors (1.41 per cent) were among the top Nifty losers.

• BHEL (up 3.87 per cent), Axis Bank (up 2.80 per cent), Bajaj Auto (up 2.67 per cent), IndusInd Bank (up 2.50 per cent) and SBI (up 2.02 per cent) were among the Nifty gainers.

• The market breadth was negative on the NSE with 434 gainers against 618 losers.

EQUITY REPORT FOR 14 OCTOBER

ECONOMY ANALYSIS

• Nifty ends above 7850; Tata Steel, Tata Power lead gainers

•  IndusInd Bank Q2 profit up 30% to Rs 430 cr on other income

•  Sintex Q2 beats estimates, profit up 47% to Rs 107 cr

•  BSE to remain shut on Oct 15 due to Maharashtra elections

•  AMFI mulls proposal to scrap upfront MF commissions

•  Infosys hits record high; brokerages up target post Q2 nos

 

 

MARKET ANALYSIS

• The S&P BSE Sensex pulled back over 350 points from intraday low to finally settle 78 points higher as sentiment improved in global markets.

•  The 30-share index ended at 26,384.07, up 86.69 points or 0.33 per cent. It touched a high of 26,443.16 and a low of 26,092.69 in trade today.

•  The Nifty closed at 7,884.25, up 24.30 points or 0.31 per cent. It touched a high of 7,901.15 and a low of 7,796 in trade today.

•  The S&P BSE Midcap Index was 0.46 per cent higher and the S&P BSE Smallcap Index gained 0.35 per cent.

•  Tata Power (up 2.90 per cent), Tata Steel (up 2.14 per cent), Coal India (up 1.91 per cent), Axis Bank (up 1.90 per cent) and TCS (up 1.54 per cent) were among the Sensex gainers.

•  M&M (3.66 per cent), Cipla (2.68 per cent), Sun PharmaBSE -1.86 % (1.86 per cent), Dr Reddy's Laboratories (1.76 per cent) and BHEL (1.29 per cent) were among the top losers.

 

WEEKLY UPDATES FOR EQUITY MARKET

MARKET ANALYSIS

•  Sensex slips 340 pts on global woes; Q2 nos lift Infosys 7%

•  Infosys Q2 net up 7%, $ revenue rises 3.1%, approves 1:1 bonus

•  HC rules in favour of Vodafone in transfer pricing case

•  PNB cuts term deposit rates for up to 1 year to 8.5%

•  Mkt to become volatile; buy L&T on every dip: Edelweiss

 

NIFTY ANALYSIS

•  Positional Support for NIFTY 7800.

•  Immediate resistance for NIFTY is 8200.

•  Intraday Resistance of NIFTY are 8000:8070

•  Intraday Support of NIFTY are 7910: 7840

•  Oscillator Analysis - The oscillator is showing BUY signal

•  Short Term Oscillator Analysis- The signal is BUY signal.

WEEKLY EQUITY REPORT FOR MARKET

MARKET ANALYSIS

•  Sensex slips 340 pts on global woes; Q2 nos lift Infosys 7%

•  Infosys Q2 net up 7%, $ revenue rises 3.1%, approves 1:1 bonus

•  HC rules in favour of Vodafone in transfer pricing case

•  PNB cuts term deposit rates for up to 1 year to 8.5%

•  Mkt to become volatile; buy L&T on every dip: Edelweiss

NIFTY ANALYSIS

•  Positional Support for NIFTY 7800.

•  Immediate resistance for NIFTY is 8200.

•  Intraday Resistance of NIFTY are 8000:8070

•  Intraday Support of NIFTY are 7910: 7840

•  Oscillator Analysis - The oscillator is showing BUY signal

•  Short Term Oscillator Analysis- The signal is BUY signal.

EQUITY REPORT FOR 10 OCTOBER 2014

ECONOMY ANALYSIS

•  Sensex closes 390 pts up; BHEL, Hindalco surge 6-8%

•  Govt yet to get clarity on HZL divestment from FinMin

•  Flipkart probe scare may not deter online Diwali sale fests

•  Polaris Financial Technology tanks 21%, quotes ex-demerger

•  Taneja Aerospace shares rally 18% on demerger buzz

•  FDI inflows to hit all-time high this fiscal: DIPP official

MARKET ANALYSIS

• The S&P BSE Sensex galloped by as much as 442 points in trade on Thursday to snap its three-day fall, after the US Federal Reserve in its latest policy meet last night reassured investors that the central bank is in no hurry to raise interest rates.

• The S&P BSE Sensex closed 390.49 points higher at 26637.28 and the Nifty ended 117.85 points higher at 7690.55 on Thursday.

• Overnight, the US stocks ended higher by over 1 per cent with major indexes posting their biggest one-day jumps of 2014. Tracking gains on the Wall Street, both the Asian and European stocks duly followed suit.

• Foreign institutional investors (FIIs), which have been the backbone of over 25 per cent rally seen in the BSE Sensex so far in the year 2014, became net sellers in the past couple of weeks.

• FIIs have sold net equities worth Rs 2172.90 crore in the last five trading sessions, while domestic institutional investors (DIIs) remained net buyers.

EQUITY UPDATES FOR 9 OCTOBER 2014

ECONOMY ANALYSIS

•  Sensex ends in red on weak global cues; tech, pharma down 

•  India to raise Rs 50 bn by selling stakes in ITC, L&T, Axis Bank

•  RBI to cut rates by 75 bps in 2015: BofA-ML

•  Infosys, Tech Mahindra, Mindtree dip on Citi downgrade

•  KEC Int up 5% on new orders in T&D, cable, solar businesses

•  India plans to raise near 50 billion rupees through ETF by March 

MARKET ANALYSIS

• The S&P BSE Sensex ended a volatile session on flat-to-negative note as global markets remained under pressure on concerns of global economic  growth. Outflows of dollars from emerging markets including India also  added to the woes.

• The International Monetary Fund has cut global growth forecast and that for emerging market economies as a whole. The IMF expects global economy to grow by 3.8 per cent next year, lower than its July forecast of 4 per cent.

•  The 30-share index ended at 26,246.79, down 25.18 points or 0.10 per cent. It touched a high of 26,338.31 and a low of 26,150.09 in trade today.

• The Nifty closed at 7,842.70, down 9.70 points or 0.12 per cent. It touched a high of 7,869.90 and a low of 7,815.75 in trade today. 

•  The market breadth was negative on the BSE with 1343 gainers against 1562 losers.

Today's Equity Report for Market

ECONOMY ANALYSIS

•  Sensex falls 1%, Nifty ends below 7900; metals, capital goods, banks drag

•  Maxwell Ind soars 13% ahead of board meet for land sale

•  Godrej Properties up 3% on adding new project in Mumbai

•  September India auto sales rise 4.7%; M&M back in 3rd place

•  Ballarpur Ind rallies 14% as IFC to invest in subsidiary 

MARKET ANALYSIS

• The S&P BSE Sensex ended nearly 300 points lower following a sharp correction in European markets. Nifty has breached 50-day DMA and further downside in the near term can't be ruled out, say analysts. 

•  The 50-share index closed at 7,852.40, down 93.15 points or 1.17 per cent. The S&P BSE Sensex ended at 26,271.97, down 296.02 points or 1.11 percent. 

•  DLF (5.68%), NMDC (5.57%), Jindal Steel (4.92%), HindalcoBSE -4.35 % (4.90%) and Sesa Sterlite (4.49%) were among the top losers. 

•  Foreign institutional investors, which were largely responsible for an over 25 per cent rally seen in the BSE Sensex, have become net sellers of Indian  equities in the last five trading sessions.

•  As per provisional data, FIIs have sold net of Rs 2583.95 in the last five trading sessions, while DIIs or domestic institutional investors remain net  buyers. 

7 OCTOBER EQUITY REPORT

ECONOMY ANALYSIS

• Choppy Sensex closes lower; heavyweights drag, IT shines

•  HOV Services spikes 20%, co to sell stake in SourceHOV

•  Jet Airways, SpiceJet soar 5-6% on fuel price cut

•  Videocon D2H files for IPO to raise up to Rs 700 cr

•  Hero Moto up 3%, co logs bumper Sep sales on festive spark

•  Infosys, TCS up on dollar gains & strong Q2 earnings hope 

MARKET ANALYSIS

• The S&P BSE Sensex ended in the negative territory as investors chose to stay light ahead of the long week-end. All the sectoral indices, barring the IT space, closed in the red with oil & gas, capital goods and power leading the decline. 

•  The 30-share index closed at 26,549.74, down 80.77 points or 0.30 per cent. It touched a high of 26,683.70 and a low of 26,548.22 in trade today. 

•  The Nifty ended at 7,945.55, down 19.25 points or 0.24 per cent. It touched a high of 7,977.50 and a low of 7,936.70 in trade today. 

•  Power (2.29 per cent), GAIL (2.26 per cent) and Reliance Industries (2.05 percent) were among the top losers. 

•  Wipro (up 3.13 per cent), Infosys (up 2.62 per cent), M&M (up 2.25 per cent), TCS (up 1.34 per cent) and Hero MotoCorp (up 1.15 per cent) were among the Sensex gainers. 

•  The market breadth was positive on the BSE with 1282 gainers against 1635 losers.

ECONOMY AND MARKET ANALYSIS FOR 1 OCTOBER

ECONOMY ANALYSIS

• Nifty ends below 8000; Sun Pharma & ITC up, Bankex in red

• Rajan keeps rates on hold, says 6% inflation target for 2016 at risk

• HDIL up 5%, promoters revoke pledged shares in IL&FS Trust

• PC Jeweller surges 9%; bets on e-tailing, joins Flipkart

• Just Dial gets land for IT park in Karnataka

•  Sterlite Technologies rallies on JV with Japanese company

MARKET ANALYSIS

• After a roller coaster ride, the equity benchmarks managed to close with marginal gains on Tuesday amid announcement of RBI policy. Indices  climbed nearly a percent intraday before erasing gains in last couple of hours  of trade today. 

•  The 30-share BSE Sensex rose 33.40 points to close at 26630.51 after hitting an intraday high of 26851.33 and low of 26481.31. The 50-share NSE Nifty  reclaimed the 8000 level but failed to hold the same, up 5.90 points to end the  day at 7964.80. 

•  The broader markets too saw cut in gains, ending with 0.1 percent upmove but the market breadth was negative. About 1370 shares advanced while 1527  shares declined on the Bombay Stock Exchange. Experts believe the  consolidation may continue in near term due to lack of triggers. As the RBI  event is behind us, the market will closely watch July-September quarter  earnings that will kick off with Infosys’ numbers on October 10, say experts.