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Reports India

Indian stock market daily morning report (June 02, 2014, Monday)

June 2, 2014, Monday, 05:31 GMT | 01:31 EST | 10:01 IST | 12:31 SGT
Contributed by Keynote Capitals

Views on markets today

- The markets ended the last session of the week and the first day of the June derivatives series on a monotonous, albeit choppy, note in the absence of any enthusing cues from the global front. The Sensex was stuck in a narrow range of around 150 points before ending at 24,217, lower by 16 points and the Nifty ended below the crucial psychological support level of 7,250 at 7,230, down 5 points.

- Shares of 6 defence equipment manufacturers rose by 2.44% to 20% on BSE on media reports of potential increase in foreign direct investment limit in the sector to 100% from current 26%.

- Astra Microwave (up 20%), Walchandnagar Industries (up 10%), BEML (up 7%), Dynamatic Technologies (up 5%), Pipavav Defence and Offshore Engineering Company (up 5%) and Bharat Electronics (up 2.44%), edged higher.

- Rail-related shares surged on media reports that the government is likely to announce foreign direct investment policy for railways soon. Kernex Microsystem closed 7.34% up at Rs 74.55, Kalindee Rail Nirman closed 5% up at Rs 103.35 and Titagarh Wagons closed 5% up at Rs 250.10.

- Among the 12 BSE Sectoral indices, 10 indices closed in positive while 3 indices ended the day in negative. Top Gainers: BSE Healthcare up by 2.59% and BSE Realty by 2%. Top Losers: BSE Consumer Durables down by 1.78% and BSE Bankex by 1.59%.

Market breadth was positive at ~1.13 as investors bought large cap stocks. On provisional basis, FII's bought Rs 29.77bn worth of Indian equities and DII's sold Rs 4.58bn worth of equities.

Economic and Corporate Developments

- Depository Receipts are likely to be treated as equity for the purpose of taxation if such securities entail voting rights. These changes, according to officials, are to be announced in the Budget as part of the exercise to encourage domestic companies to raise funds from overseas markets.

"The recommendations of the Sahoo committee have been accepted in total and tax related amendments would be made in Budget in the IT Act," a Finance Ministry official told PTI. The tax treatment of DRs should be similar to that of underlying securities, the official added. Another official said that the conversion of a DR into the underlying securities and vice versa would not be taxable events. "The trading of DR's outside India should not attract any tax in India," the official added.

- After withdrawing some of its earlier restrictions on gold import and raising the limit on importers' forward contracts, the Reserve Bank of India (RBI) might do more. It might, believe watchers, restore the norm which had allowed an individual travelling out of the country to spend up to $200,000 abroad in a year. And, liberalise the rules on offshore investments by domestic companies.

Buzzing Stocks

- Redington (India) closed 5.82% up at Rs 104.55 on BSE after consolidated net profit rose 7.84% to Rs 113.05 crore on 19.21% increase in total income from operations to Rs 8115.39 crore in Q4 March 2014 over Q4 March 2013.

- Tata Chemicals closed 3.62% down at Rs 303.45 on BSE after the company reported a consolidated net loss of Rs 1225.72 crore in Q4 March 2014, higher than net loss of Rs 188.03 crore in Q4 March 2013.

- Jammu & Kashmir Bank closed 18.54% down at Rs 1,501.35 on BSE after a media report alleged that some of the directors and officers at the bank were not declaring all the non-performing and stressed assets in its loan book.

- DLF closed 2.97% up at Rs 209.80 on BSE after the company reported a consolidated net profit of Rs 219.6- crore in Q4 March 2014 compared with consolidated net loss of Rs 4.19 crore in Q4 March 2013.

- YES Bank closed 3.56% up at Rs 569.45 as the company is set to raise $500 million by issuing fresh shares to a cluster of investors, leading to a dilution of 10-12% in promoter shareholding.

- Bharat Heavy Electricals Limited (BHEL) closed 0.53% down at Rs 242.15 on BSE on bargain hunting after the company announced Q4 March 2014 results after trading hours on Thursday, 29 May 2014.

- Network 1- closed 20% up at Rs 54.15 on news that the Mukesh Ambani-controlled Reliance Industries (RIL) plans to acquire a majority stake in Raghav Bahl’s Network1- Media and Investments and its subsidiary TV1- Broadcast through Independent Media Trust (IMT), of which RIL is a sole beneficiary.

- Tata Motors closed 1.97% down at Rs 415.45 on BSE after consolidated net profit declined 0.68% to Rs 391- crore on 16.6% growth in revenue to Rs 65317 crore in Q4 March 2014 over Q4 March 2013.

- ONGC closed 0.96% up at Rs 378.25 on BSE after net profit surged 44.3% to Rs 4889 crore on 2.3% decline in gross revenue to Rs 21403 crore in Q4 March 2014 over Q4 March 2013.

- Indian Oil Corporation closed 1.82% up at Rs 360.85 on the BSE after posting 40% rise in net profit to Rs. 7019 crore for the year ended March 31, 2014 as compared to Rs. 5005 crore for the year ended March 31, 2013.

- Voltas closed 3.75% up at Rs 186.70 after the operating profits for the quarter ended March 31, 2014 was significantly higher by 58% at Rs 123 crores compared to Rs 7- crores for the corresponding period previous year.

- Crompton Greaves closed 2.27% up at Rs 182.70 after the company's profit rose 2.5 times to Rs 63.82 crore in fourth quarter as against Rs 25.27 core profit in same period last year due to an improvement in power systems business and rise in other income.