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Reports India

Indian stock market daily morning report (July 08, 2014, Tuesday)

July 8, 2014, Tuesday, 07:13 GMT | 02:13 EST | 11:43 IST | 14:13 SGT
Contributed by Keynote Capitals


Views on markets today

- The Nifty rose on Monday to a third consecutive record high, while the Sensex surpassed 26,000 points, riding on gains in technology stocks ahead of Infosys Ltd's results and hopes of a fiscally prudent budget.

- Foreign investors continued to support shares, buying a net $157 million on Friday, a sixth straight session of purchases. Overseas investors have bought $10.54 billion worth of Indian shares so far this year, regulatory and exchange data showed. Investors are hoping that Prime Minister NarendraModi and Finance Minister ArunJaitley will deliver a fiscally prudent budget that increases revenue from asset sales while controlling spending.

- The Sensex ended 0.53 per cent higher at 26,100.08, a record closing high. Earlier in the day, it rose 0.62 per cent to an alltime high of 26,123.55. The Nifty ended 0.46 per cent higher at 7,787.15 after rising as much as 0.52 per cent to hit a record high of 7,792, the third session in a row.

- Among the 12 BSE Sectoral indices, 9 sectors closed in positive while 3 sectors ended in negative. Top Gainers: BSE IT up by 2.63%, BSE Teckby 2.16%. Top Losers: BSE Bankex down by 1.210% and BSE Oil & Gas by 0.91%.

- Market breadth was positive at ~1.22 as investors bought large cap stocks. On provisional basis, FII’s bought Rs1.98bn worth of Indian equities and DII's sold Rs0.85bn worth of equities.


Economic and Corporate Developments

The Centre's revenue deficit - the excess of non-capital expenditure over non-capital revenues - constituted about 54 per cent of the interim Budget target for FY15 in just two months of the financial year, presenting a reality check for Finance Minister ArunJaitley ahead of the Budget. As a percentage of Budget estimate (BE), the revenue deficit stood at a six-year high in the first two months of the current financial year.

The broader number - fiscal deficit - in April-May 2014-15 accounted for 46 per cent of the entire year's projections made in the Budget presented by then Finance Minister P Chidambaram. This basically shows that the larger part of the Centre's fiscal deficit is contributed by an excess of expenditure, which does not generate capital, necessitating the need to divert resources from wasteful expenditure to capital outlays, to revive the economy.


Buzzing Stocks

- Tata Power Company rose 2.43% to Rs 109.80 on BSE after the company said that it has signed option agreements to sell 5% stake in PT Kaltim Prima Coal (kPc) for $250 million.

- Ashok Leyland rose 2.35% to Rs 36.95 on BSE after the company said that the fund raising committee of the company approved allotment of 18.52 crore equity shares to eligible QIBs at an issue price of Rs 36 per share.

- Adani Ports and Special Economic Zone rose 1.36% to Rs 278.90 on BSE after the company said that it has signed an agreement with France's CMA CGM Group to develop a new common user container terminal at Mundra Port.

- South Indian Bank surged 5.84% to Rs 34.45 on BSE after Mohnish Pabrai, a leading US-based fund manager bought 1.96 crore shares of South Indian Bank at Rs 32.50 per share on Friday, 4 July 2014.

- IDFC surged 4.52% to Rs 140 on BSE after an investment bank upgraded the stock to overweight from underweight.

- Cipla fell 0.2% to Rs 447 on BSE after the company in collaboration with the UK government has expressed its intention to make investment of up to 100 million pounds in its UK subsidiary over the next few years.

- Steel Strips Wheels rose 1.16% to Rs 279 on BSE after the company said it has secured an export order from ALCAR.

- Reliance Communications rose 1.15% to Rs 144.75 on BSE after index provider FTSE on Friday, 4 July 2014, said it has raised the weightage of the stock in three indices.

- Rajesh Exports surged 6.84% to Rs 192.05 on BSE after the company said it has bagged an export order worth Rs 1260 crore from A1 Jameelat Jewellery, UAE.

- Polaris Financial Technology advanced 3.66% to Rs 240.80 on BSE after a foreign fund bought 0.54% stake in the software firm on Friday, 4 July 2014.

- Bajaj Finance lost 3.01% to Rs 2220 on BSE, with the stock sliding on profit booking after recent steep rally.

- Kotak Mahindra Bank fell 1.93% to Rs 867.40 on BSE ahead of the bank's deletion from MSCI's Global Standard Index with effect from tomorrow, - July 2014.

- IDBI Bank lost 0.93% to Rs 106.80 IST on BSE after the bank said its board of directors approved raising of funds by way of private placement/public issue/reverse enquiry/issuances under mTn programme during FY 2015.