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.