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Reports India

Indian stock market daily morning report (May 28, 2014, Wednesday)

May 28, 2014, Wednesday, 06:21 GMT | 01:21 EST | 09:51 IST | 12:21 SGT
Contributed by Keynote Capitals

Views on markets today

- After a breakneck rally, Dalal Street seems to have become a tad wary of near-term gains in the market. At close on Tuesday, the benchmark indices were down about a per cent each, as investors booked profits in power, banking, realty and capital goods sectors.

The BSE Sensex declined 167 points, or 0.7 per cent, to close at 24,549, while the National Stock Exchange's Nifty fell 41 points, or 0.6 per cent, to close at 7,318. India VIX, the volatility gauge, fell 3.7 per cent.

- Shares of 10 non-banking financial companies fell 0.44% to 6.99% on BSE after the Reserve Bank of India tightened merger and acquisition rules for non-banking financial companies.

IFCI (down 6.99%), Reliance Capital (down 3.65%), Manappuram Finance (down 3.62%), Muthoot Capital Services (down 3.45%), Shriram Transport Finance Company (down 2.22%), IDFC (down 2.16%), Muthoot Finance (down 1.71%), L&T Finance Holdings (down 1.70%), Bajaj Finance (down 0.80%) and Mahindra & Mahindra Financial Services (down 0.44%), edged lower.

- Among the 12 BSE Sectoral indices, 4 indices closed in positive while - indices ended the day in negative. Top Gainers: BSE IT up by 0.29% and BSE Healthcare by 0.25%. Top Losers: BSE Power down by 2.14% and BSE Oil & Gas by 1.92%.

Market breadth was negative at ~0.89 as investors sold large cap stocks. On provisional basis, FII's sold Rs 2.02bn worth of Indian equities and DII's sold Rs 0.95bn worth of equities.

Economic and Corporate Developments

- India's current account deficit (CAD) for the quarter ended March this year fell sharply to 0.2 per cent of gross domestic product ($1.2 billion) from 3.6 per cent ($18.1 billion) a year earlier, as the fall in imports was steeper than the drop in exports.

On the balance-of-payments (BoP) front, the March 2014 quarter saw accretion of $7.1 billion to foreign exchange reserves, against accretion of $2.7 billion in the year-ago period. In the December 2013 quarter, accretion stood at $19.1 billion.

For 2013-14, the CAD was 1.7 per cent ($32.4 billion), well within the Reserve Bank of India (RBI)'s comfort level of 2.5 per cent, against 4.7 per cent ($87.- billion) for 2012-13. For 2013-14, the BoP was in positive territory, with a $15.5 billion rise in reserves, against a rise of $3.- billion in 2012-13.

Buzzing Stocks

- Jaypee Infratech fell 8.80% to Rs 33.70 on BSE after net profit slumped 91.12% to Rs 13.19 crore on 20.16% decline in net sales to Rs 765.06 crore in Q4 March 2014 over Q4 March 2013.

- Wockhardt fell 3.35% to Rs 676.15 on BSE after consolidated net profit fell 77.76% to Rs 74.45 crore on 27.97% decline in total income to Rs 1059.67 crore in Q4 March 2014 over Q4 March 2013.

- Jubilant Life Sciences advanced 3.52% to Rs 192.60 on BSE after the company reported a consolidated net profit of Rs 98.81 crore in Q4 March 2014 as against net loss of Rs 30.97 crore in Q4 March 2013.

- Bajaj Holdings & Investment fell 4.57% to Rs 1,190 on BSE on profit booking after the stock jumped 21.95% in the preceding seven trading sessions to Rs 1,247 on 26 May 2014, from a recent low of Rs 1,022.55 on 15 May 2014.

- L&T rose 1.02% to Rs 1,560 on BSE after the company's subsidiary L&T Special Steels and Heavy Forgings entered into a technology transfer agreement with Japan Steel Works.

- Kotak Mahindra Bank fell 0.28% to Rs 861 on BSE after the Reserve Bank of India ordered the bank to reduce its promoter holding to 40% by the end of September 2014.

- Motherson Sumi Systems rose 2.5% to Rs 289.55 on BSE, after the company signed an agreement to acquire the Wiring harness business of Stoneridge Inc.

- Sonata Software hit an upper circuit limit of 20% at Rs 53.90 on BSE after consolidated net profit rose 9% to Rs 23.57 crore on 12% decline in revenues to Rs 340.71 crore in Q4 March 2014 over Q3 December 2013.

- Hindalco Industries rose 1.94% to Rs 150 on BSE, with the stock reversing recent fall on bargain hunting.

- V1- Broadcast rose 1.37% to Rs 33.25 on BSE after consolidated net profit jumped 107.51% to Rs 35.90 crore on 16.50% increase in total income to Rs 572.25 crore in Q4 March 2014 over Q4 March 2013.

- Bharat Forge rose 4.58% to Rs 494 on BSE after net profit jumped 137.57% to Rs 118.9- crore on 38.53% growth in total income to Rs 963.12 crore in Q4 March 2014 over Q4 March 2013.

- Power Finance Corporation fell 4.37% to Rs 294.60 on BSE on profit booking after the company declared its Q4 March 2014 results during trading hours, on 27 May 2014.