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Reports India

Indian stock market daily morning report (May 19, 2014, Monday)

May 19, 2014, Monday, 06:15 GMT | 01:15 EST | 09:45 IST | 12:15 SGT
Contributed by Keynote Capitals

Views on markets today

- It was a case of 'buy on hopes and sell on news' as the Indian market posted only modest gains despite a landslide victory to Narendra Modi-led Bharatiya Janata Party (BJP).

In early trade, however, the Sensex rose as much as 1,460 points to 25,376 and the Nifty over 400 points to 7,55- after initial trends suggested a decisive mandate for the BJP. But the market failed to hold on to the gains, as investors chose to take money off the table after a sharp 13 per cent rise in only a week.

The Sensex on Friday closed at a record high of 24,121.7, up 216 points, or 0.90 per cent, after a day of intense volatility and record volumes.

The broad-based Nifty index gained 79.85 points, or 1.12 per cent to 7,203. The rupee gained 0.7 per cent against the dollar, while the fear indicator India, VIX, declined a sharp 34 per cent.

Underscoring the bullish stance, foreign investors pumped in over $600 million (Rs 3,635 crore) - one of the highest this year - into Indian stocks on Friday, taking their year to date investment tally to over $ 6 billion.

Following a 14 per cent rally in 2014, the Indian markets now trade at around 15 times its one-year forward earnings. Analysts believe the Indian markets now assign a multiple of around 1- times.

The victory of the Bharatiya Janata Party-led National Democratic Alliance (NDA) resulted in the rupee ending the day at an 11-month high, due to dollar flows into domestic markets.Though state-run banks were buying dollars on behalf of the Reserve Bank of India (RBI), dollar sales by exporters and custodian banks helped the rupee. The earlier such high was on June 19 last year, when the rupee ended at 58.72.The rupee ended at 58.78, compared with the previous close of 59.29 a dollar.

- Shares of ten companies whose fortunes are linked to orders from Indian Railways rose by 0.18% to 12.08%, in the intraday trade, on BSE as Narendra Modi heads to become the next Prime Minister of India.

Kalindee Rail Nirman (Engineers) (up 12.08%), Kernex Microsystems (India) (up 6.32%), Titagarh Wagons (up 4.97%), Bhel (up 4.54%), Hind Rectifiers (up 3.58%), BEML (up 3.53%), Stone India (up 3.34%), Transformers & Rectifiers (India) (up 2.01%), Container Corporation of India (up 0.98%) and Texmaco Infrastructure & Holdings (up 0.18%), edged higher.

- Among the 12 BSE Sectoral indices, 7 indices closed in positive while 5 indices ended the day in negative. Top Gainers: BSE Realty up by 5.97% and BSE Bankex by 4.39%. Top Losers: BSE IT down by 2.22% and BSE FMCG by 1.85%.

Market breadth was flat at ~0.97 as investors traded on both sides of the large cap stocks counter. On provisional basis, FII's bought whopping Rs 36.34bn worth of Indian equities and DII's sold Rs 3.49bn worth of equities. The ratio of nSe Total Market Capitalization to GDP (at Current Prices) stands at 285.34%.

Buzzing Stocks

- NTPC closed 2.01% up at Rs 131.85 on BSE after net profit declined 29.39% to Rs 3,093.54 crore on 18.56% growth in total income to Rs 21,637.87 crore in Q4 March, 2014 over Q4 March, 2013.

- Karnataka Bank closed 6.03% up at Rs 133.55 on BSE after net profit rose 20.5% to Rs 81.21 crore on 7.54% growth in total income to Rs 1,172.5- crore in Q4 March, 2014 over Q4 March, 2013.

- Kalindee Rail Nirman (Engineers) jumped 10.38% to Rs 87.70 on BSE after the company reported net profit of Rs 12.65 crore in Q4 March 2014 as against net loss of Rs 1.29 crore in Q4 March 2013.

- Shares of three Adani group companies rose 5.29% to 15.99%, in the morning trade, on BSE on renewed buying. Adani Enterprises galloped 15.99% to Rs 580.60 on volume of 14.31 lakh shares on BSE. Adani Power gained 6.64% to Rs 58.60 on volume of 40.53 lakh shares on BSE. Adani Ports & Special Economic Zone jumped 5.29% to Rs 232 on volume of 12.40 lakh shares on BSE.

- Reliance Industries surged 6.15%, in the morning trade, to Rs.1,11- on BSE after the company's telecom operating unit entered into a master service agreement for tower sharing with an independent tower company in India.

- Himatsingka Seide closed 4.12% down at Rs 60.45 on BSE, after consolidated net profit dropped 48.6% to Rs 11.53 crore on 25.1% rise in total income to Rs 498.73 crore in Q4 March, 2014 over Q4 March, 2013.

- Shakti Pumps (India) rose 2.74%, in the noon trade, to Rs 116.20 on BSE, extending Thursday's 13.84% rise triggered by the company's strong Q4 March, 2014 announced after market hours on Wednesday, 14th May, 2014.

- Gujarat Gas Company closed 4.81% down at Rs 375.30 on BSE after consolidated net profit declined 16.88% to Rs 49.27 crore on 0.54% rise in total income from operations (net) to Rs 772.0- crore in Q1 March, 2014 over Q1 March, 2013.

- Sterling Biotech was locked at 5% lower circuit at Rs 13.77 on BSE after the company reported a net loss of Rs 103.32 crore in Q1 March, 2014, higher than net loss of Rs 96.10 crore in Q1 March, 2013.

- Orient Cement closed 16.64% up at Rs 66.25 on BSE after high-net worth investor Rakesh Jhunjhunwala picked up 0.83% stake in the company through a bulk deal on NSE on Thursday, 15th May, 2014.

- Cadila Healthcare closed 3.00% down at Rs 912.00 on BSE after consolidated net profit declined 8.74% to Rs 239.19 crore on 22.39% growth in net sales to Rs 1,916.33 crore in Q4 March, 2014 over Q4 March, 2013.

- Mirc Electronics closed 2.97% down at Rs 5.56 on BSE after the company reported a net loss of Rs 6.55 crore in Q4 March, 2014 as against net profit of Rs 12.20 crore in Q4 March, 2013.

- Tata Steel closed 4.40% down at Rs 440.45 on BSE on reports the Supreme Court on Friday, 16th May, 2014, passed a limited mining ban on Odisha.