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Reports India

Indian stock market daily morning report (May 12, 2014, Monday)

May 12, 2014, Monday, 05:35 GMT | 00:35 EST | 09:05 IST | 11:35 SGT
Contributed by Keynote Capitals


Views on markets today

- The markets were gripped by buying frenzy on hopes that the Modi-led Bharatiya Janata Party (BJP) would be in the driver's seat post May 16. The Sensex, Nifty and Bank Nifty roared to all-time closing highs, led by a buying frenzy in index heavyweight RIL and bolstered by a runaway rally in the banking stocks.

The Sensex sky-rocketed to 22,994, stronger by 650 points, after scaling 23k on an intra-day basis, and ditto with the Nifty, which zoomed by 19- points to end at 6858.

- The financials hogged the limelight during the session. ICICI Bank closed 6.63% up at Rs 1374.85, its highest level since 200- on the BSE, to top the gainers list on the BSE. HDFC Bank closed 5.31% up at Rs 757.20 and HDFC closed 4.07% up at Rs 883.80.

- Mukesh Ambani-led Reliance Industries (RIL) also touched three-year high of Rs 999 before ending at Rs 997.95, up 3.93%, on the BSE.

- Hindustan Petroleum Corporation (HPCL), Engineers India, Gujarat State Petronet, Bajaj Finserv and Bajaj Finance were among 11- stocks which touched one-year highs.

- Among the 12 BSE Sectoral indices, 10 indices closed in positive while 2 indices ended the day in negative. Top Gainers: BSE Bankex up by 5.34% and BSE Realty by 4.38%. Top Losers: BSE Healthcare down by 0.56% and BSE Consumer Durables by 0.03%.

Market breadth was positive at ~1.35 as investors bought large cap stocks. On provisional basis, FII's bought Rs 12.69bn worth of Indian equities and DII's sold Rs 0.75bn worth of equities.


Economic and Corporate Developments

- The Union finance ministry has poured cold water on India Post's application to set up a bank. The postal department might be asked to re-apply when new guidelines for bank licences are issued by the Reserve Bank of India (RBI).

- The economy can grow well over 6% this financial year if a stable government assumes office and carries out systemic reforms, new President of industry body CII Ajay S Shriram said on Friday.

- About 5% deficit rains due to possible El Nino factor could have a bearing on economic growth by 1.75% in the 2014-15 financial year, affecting hundreds of thousands of unskilled jobs, an Assocham report said. Deficiency in rains could also impact food inflation, which has always been a concern to policymakers, it said.


Buzzing Stocks

- Ranbaxy Laboratories closed 1.26% down at Rs 463.60 on BSE after the company reported a consolidated net loss of Rs 73.65 crore in the quarter ended March 2014, compared with net profit of Rs 125.75 crore in the quarter ended March 2013.

- Sintex Industries closed 3.99% up at Rs 50.80 on BSE after consolidated net profit rose 7% to Rs 161.10 crore on 42% increase in net sales to Rs 1982.90 crore in Q4 March 2014 over Q4 March 2013.

- Marico closed 1.36% down at Rs 236.60 on BSE on profit booking after the stock jumped 18.24% in the preceding eight trading sessions to Rs 239.85 on - May 2014, from a recent low of Rs 202.85 on 25 April 2014.

- Shares of five steel companies rose by 0.69% to 4.31% on BSE after global steel major ArcelorMittal said its first quarter net loss narrowed, helped by higher steel and iron ore shipments.

Steel Authority of India (SAIL) (up 4.31%), Jindal Steel & Power (up 2.30%), JSW Steel (up 3.38%), Tata Steel (up 3.64%) and Bhushan Steel (up 0.69%), edged higher.

- ITD Cementation India closed 14.39% down at Rs 131.75 on BSE after the company reported consolidated net loss of Rs 10.26 crore in Q1 March 2014 as compared to net profit of Rs 5.57 crore in Q1 March 2013.

- Swaraj Engines and M&M rose by 0.43% & 3.86% respectively on BSE after both the firms said that workers have resumed their work at the manufacturing plants in Mohali, Punjab with effect from - May 2014.

- Shares of Wonderla Holidays closed 25.20% up at Rs 156.50 on BSE, over the initial public offer price of Rs 125 per share.

- Financial Technologies (India) hit a lower circuit limit of 5% at Rs 262.90 on BSE as the company's CMD Jignesh Shah has been remanded to police custody until 15 May 2014.

- Jet Airways (India) closed 1.06% up at Rs 238.55 on BSE after Sebi said that Etihad does not need to make an open offer for shares in the domestic carrier.

- Glenmark Pharmaceuticals closed 2.24% down at Rs 580.10 on BSE after consolidated net profit slumped 75% to Rs 43.07 crore on 27.1% increase in total income to Rs 1691.49 crore in Q4 March 2014 over Q4 March 2013.

- Ahmednagar Forgings closed 14.34% up at Rs 174.65 on BSE, after net profit jumped 46.1% to Rs 55.53 crore on 88% surge in net sales to Rs 563.26 crore in Q2 March 2014 over Q2 March 2013.

- Bharat Forge closed 3.55% up at Rs 431.30 on BSE after the company said its German subsidiary won a multi-year contract worth Euro 250 million from a German OEM for supply of suspension components.

- Tata Power closed 5.57% up at Rs 80.55 on BSE after the company said that the Supreme Court on - May 2014 dismissed BEST's appeal to restrain Tata Power from laying network in its license area.