Indian stock market daily morning report (January 06, 2014, Monday)
January 6, 2014, Monday, 06:36 GMT | 01:36 EST | 11:06 IST | 13:36 SGT
Views on markets today
- Markets ended flat, amid a volatile trading session on Friday, on account of shortcovering in late trades after foreign institutional investors continued to remain buyers despite weakness in the markets.
After a weak opening markets fell to a 2-week low amid weak Asian cues and slipped further after the Prime Minister Manmohan Singh at a press conference held here gave no direction or specifics on what his government plans to do in the few months available. However, recovery was seen in late trades as gains in IT majors helped offset most of the losses.
The 30-share Sensex ended down 37 points at 20,851 and the 50-share Nifty ended down 10 points at 6,211.
- Seven IT shares rose by 0.52% to 3.81% on BSE after the rupee weakened against the dollar on, 3rd January 2014.
Hexaware Technologies (up 3.81%), TCS (up 2.73%), Infosys (up 2.13%), Tech Mahindra (up 1.20%), Oracle Financial Services Software (up 0.98%), Wipro (up 0.53%) and HCL Technologies (up 0.52%), edged higher.
- Among the 12 BSE Sectoral Indices 7 sector closed in positive while 5 sectors ended the day in negative. Top Gainers: BSE IT up by 2.19% and BSE Teck by 1.97%. Top Losers: BSE Power down by 1.74% and BSE Capital Goods by 1.71%.
Market breadth was positive at ~1.0- as investors bought large cap stocks. On provisional basis, FII's sold Rs 0.18bn worth of Indian equities and DII's sold Rs 2.81 bn worth of equities.
Economic and Corporate Developments
- In the third and perhaps the last press conference during his 10-year tenure, Prime Minister Manmohan Singh here ruled himself out of the top race if Congress was to lead the next government. Short of naming the PM candidate for the party, Singh mentioned Rahul Gandhi as a leader who held promise. “I will hand over the baton to a new PM in a few months.”
- In other news, as many as 25.7 per cent of new policies of life insurance companies in 2012-13 were sold in the rural sector. According to Insurance Regulatory and Development Authority's (Irda) annual report for 2012-13, all the 23 private sector life insurance companies had fulfilled their rural sector obligations.
- Bharat Electronics lost 0.68% to Rs 1,014.90 on BSE after a block deal of 50,000 shares was executed in the counter on BSE at Rs 1,015 per share at 14:52 IST.
- Tata Motors closed 2.49% down at Rs 362.70 on BSE after the company reported 42.28% decline in its total vehicle sales at 37,852 units in December 2013 over December 2012.
- Bajaj Auto closed 0.03% down at Rs 1,899.00 on BSE after the company's total vehicles sales fell 13% to 2.97 lakh units in December 2013 over December 2012.
- Hindustan Construction Company closed 4.35% up at Rs 15.60 on BSE after the company won a contract worth Rs 442.52 crore from IRCON International.
- Claris Lifesciences rose 2.19%, in the early trade, to Rs 202.60 on BSE after the company said its board will meet on 7 January 2014, to consider a proposal for buyback of the equity shares.
- Escorts clsoed 2.74% down at Rs 124.70 on BSE, extending Thursday's 6.61% fall triggered by the company's agri machinery segment reporting 3.84% decline in total tractor sales to 3,852 units in December 2013 over December 2012.
- Karur Vysya Bank closed 1.36% up at Rs 349.60 on BSE after the Reserve Bank of India allowed foreign institutional investors to buy up to 40% stake in the bank through primary/secondary markets in India.
- United Breweries (Holdings) lost 8.12%, in the intraday, to Rs 35.65 on BSE on profit booking after surging 50.97% in prior four trading days.
- Tata Teleservices (Maharashtra) closed 10.08% up at Rs 8.41 on BSE on reports Vodafone is in preliminary discussions with the Tata Group to acquire its majority stake in Tata Teleservices.
- ITC clsoed 0.17% down at Rs 314.85 on BSE after a block deal of 3.62 lakh shares was executed in the counter on BSE at Rs 313 per share.
- Reliance Infrastructure and Tata Power closed down by 0.96% and 3.83%, respectively, declining for second day in a row after the Delhi government on 1 January 2014 ordered CAG audit of their finances.
- Ashok Leyland closed 6.78% up at Rs 18.90 on BSE after the company reported a 16.74% rise in its total vehicle sales at 6,275 units in December 2013 over November 2013.
- Reliance Communications closed 1.19% up at Rs 131.70 on BSE after the company announced that it has fully repaid another syndicated ECB loan of $500 million, or approximately Rs 3,100 crore, on the scheduled due date today, 3 January 2014.