Finalaya daily wrap_15oct2013
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- The Indian stock market ended lower, snapping a 5-day winning streak, as retail inflation rose to 9.84% in September above estimates. Rate sensitive stocks declined the most on expectations that rising inflation will prevent further interest rate cuts by the central bank. - Key company results were mixed, with Reliance Industries reporting a marginal rise in quarterly profit while HDFC Bank's profit grew 27% although its NPAs increased. - Most global markets rose on hopes of a deal to raise the US debt ceiling, but the Indian markets declined due to disappointing domestic economic data points and higher inflation.
Finalaya daily wrap_15oct2013
- 1. Markets snap 5-day winning streak; Rate sensitives top laggards Market Summary 15-Oct-2013 Tailing encouraging global cues, Indian indices edged higher at open with Sensex above 20700. Sentiments turned cynical on CPI hitting a near double digit mark to 9.84% in September. Choppy benchmarks settled in red zone with Nifty at 6090. Among global peers, US markets edged higher on hopes of reaching agreement to raise the debt ceiling. Asian and European indices also inched up in green. Back home, following disappointing IIP and WPI digits, CPI too reversed its two months easing trend in September. Retail inflation surged to 9.84% in September as against 9.52% in August. The provisional CPI numbers for rural, urban and combined were at 137.8, 134.0 and 136.2 respectively. Rate sensitives faced the brunt of investors wrath and topped the laggards as rising inflation may prevent RBI from taking any favorable action on interest rate front. (Read More) Another disappointing news on macro front came from a survey conducted by CII. As per the survey, Indian economic growth is likely to remain below 5% in the current fiscal. The survey based on the assessment of CEOs among which 42% of the respondents expected the economy to grow in the range of 4.5 to 5% and 65% respondents expect that economic growth recovery will not take place before the second quarter of next fiscal. (Read More) Government is likely to relax foreign direct investment (FDI) guidelines soon for the housing sector with a view to attract more foreign investments and providing houses at affordable prices. The Department of Industrial Policy & Promotion (DIPP) circulated a draft note to cabinet for approval. LIC Housing Finance, Indiabulls Housing Finance and HDFC Ltd plunged 3%, 4.5% and 0.8% on BSE. (Read More) BGR Energy Systems gained 1.8% on BSE on entering into pact with the Ministry of Electricity (MoE), Iraq, for gas based power project worth $246 million. (Read More) Key Quarterly Results Reliance Industries (RIL) ended 0.41% down on BSE on reporting a marginal rise of 1.50% in Q2 Net at Rs 5490 crore as compared to Rs 5409 crore for the same quarter in the previous year. Company's income from operations crossed "one lac crore" which made it the first private company and second Indian company of total quarterly income above one lac crore. (Result) HDFC Bank plunged 2.35% on BSE as bank’s gross non-performing assets (NPAs) rose to 1.1% in Q2FY14 as against 0.9% in Q2FY13. However, the bank reported 27% in Q2 Net at Rs 1982.32 crore as compared to Rs 1559.98 crore for the same quarter in the previous year. (Featured Result) Bajaj Corp tanked 6% on BSE on posting 6.2% decline in Q2 Net at Rs 36 crore as against Rs 38.4 crore in the corresponding quarter of the previous year. (Read More) CMC Ltd surged 3.15% on BSE on posting 36.25% rise in Q2 consolidated Net at Rs 67.31 crore as compared to Rs 49.40 crore for the same quarter in the previous year. However, on standalone basis, the company has posted a fall of 26.54% in Q2 Net profit at Rs 47.76 crore as compared to Rs 64.75 crore Q2FY13. (Result) Bajaj Finance has reported 29.77% rise in Q2 Net at Rs 167.04 crore as compared to Rs 128.72 crore for the same quarter in the previous year. The stock closed 2.17% down on BSE. (Result) T h e market breadth on the BSE closed in negative. Advancing and declining stocks were 1018 and 1472 respectively, while 155 scrips remained unmoved. The S&P BSE Sensex ended at 20547.62, down 59.92 points or 0.29%. The 30 share index touched a high and a low of 20759.58 and 20446.73 respectively. 13 stocks advanced against 17 declining ones on the benchmark index. The CNX Nifty lost 23.65 points or 0.39% to settle at 6089.05. The index touched high and low of 6156.30 and 6056.55 respectively. 18 stocks advanced against 32 declining ones on the index. S&P BSE Sensex CNX Nifty The S&P BSE Mid-cap index moved down to 5829.99 and lost 1.30% while S&P BSE Small-cap index hammered
- 2. The S&P BSE Mid-cap index moved down to 5829.99 and lost 1.30% while S&P BSE Small-cap index hammered down by 0.95% to 5693.21. The broader S&P BSE 500 index decreased to 7399.62 (down 0.58%) and CNX 500 index declined to 4639.50 (down 0.57%). The volatility as denoted by INDIA VIX gained 1.71% at 23.24 from its previous close of 22.85 on Monday. Sectors in action On the BSE Sectorial front, Metals (up 0.91%), Information Technology (up 0.61%) and FMCG (up 0.17%) were the top gainers. Banks (down 2.59%), Real Estate (down 1.60%) and Consumer Durables (down 1.20%) were the top losers. The Angels and the Devils Tata Steel Ltd (up 2.82%), Bharti Airtel Ltd (up 1.92%), Wipro Ltd (up 1.90%), Hindalco Industries Ltd (up 1.45%) and Hindustan Unilever Ltd (up 0.83%) were the top gainers on the Sensex. Hero MotoCorp Ltd (down 2.44%), HDFC Bank (down 2.37%), State Bank of India (down 2.09%), Tata Power Company Ltd (down 2.04%) and ICICI Bank (down 1.98%) were the top losers on the Sensex. Benchmark Drivers HDFC Bank (-35.97 points), ICICI Bank (-27.13 points), Infosys Ltd (14.40 points), State Bank of India (-12.69 points) and Housing Development Finance Corporation Ltd (-11.45 points) were the major Sensex drivers today. On the other end HDFC Bank (-8.64 points), ICICI Bank (-7.83 points), Infosys Ltd (4.46 points), State Bank of India (3.18 points) and Axis Bank (-2.53 points) were the major Nifty movers today. Pivot, Supports and Resistance Levels CNX Nifty is now pivoted at 6101 for next session. The next support is at 6045 and on upside it has a resistance at 6145 levels. CNX Nifty Eff. Date 17-Oct-2013 15-Oct-2013 14-Oct-2013 S3 5945 6048 5998 S2 6001 6065 6022 S1 6045 6089 6059 PIVOT 6101 6107 6083 R1 6145 6130 6120 R2 6200 6148 6145 R3 6244 6171 6182 Actual Close 6089.05 6112.70 S&P BSE Sensex has a pivot at 20585 with first level of support and resistance at 20410 and 20723 respectively. S&P BSE Sensex Eff. Date 17-Oct-2013 15-Oct-2013 14-Oct-2013 S3 20097 20374 20220 S2 20272 20436 20294 S1 20410 20522 20411 PIVOT 20585 20584 20485 R1 20723 20670 20603 R2 20897 20732 20677 R3 21035 20818 20794 Actual Close 20547.62 20607.54
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