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A maturing market amid the mayhem
Capital goods index gains over 1 pct
The BSE Capital Goods Index gained over 1 percent on Thursday in a broader market that ended flat a day before the annual budget.
Index counters like Kirloskar Bros, Thermax and Crompton Greaves gained over 3 percent each.
L&T shares gained 2.5 percent to close at 1536 rupees after a senior company official said the firm was expecting a contract worth around 80 billion rupees.
The sectoral index has dropped 5 percent this year. L&T has dropped over 8 percent in the same period.
Will you invest in this sector now?
Capital goods index drops 5 pct
The BSE Capital goods index witnessed a sharp drop over 5 percent on Thursday as top stocks like Larsen & Toubro (L&T) slumped 6.8 percent after results.
Shares in L&T, which announced its quarterly numbers, closed at 1524 rupees after losing 112 rupees after it reported its quarterly sales dropped 6.1 percent. It also ended as the top Sensex loser.
Havells India ended as the top loser in the index, slipping 7.6 percent. Gammon India dropped 6.7 percent. Only three stocks in the index managed to close in green.
L&T shares have dropped over 9 percent in 2010, far higher than the 4.3 percent fall in the capital goods index.
Would you take advantage of the fall and pick a stock from this sector?
Sensex gains on strong economic data
The BSE Sensex ended 2.6 percent up on Thursday on good corporate results and robust economic data.
Data released on Thursday showed infrastructure output grew 6.5 percent in June while the Wholesale Price Index fell 1.17 percent in the 12 months to July 11.
The 30-share sensitive index swung from an intra-day low of 14,843 to an intra-day high of 15,264 and closed 388 points higher at 15,231.
The fifty-share Nifty ended 2.8 percent up to 4,523.
On the sectoral front, the BSE Realty Index rose 5.08 percent, followed by the Consumer Durable Index which ended 4.4 percent higher. All other indices ended the day in the green.
Bharti Airtel came out with forecast-beating 24 percent rise in quarterly profits, while Maruti Suzuki reported an unexpected 25 percent rise in quarterly net profits.
Shares in Bharti Airtel ended 1.09 percent down at 813, while Maruti Suzuki ended 6.4 percent higher at 1295 rupees.
Sensex rose 388 points(2.61%)backed by a combination of factors viz. Maruti’s +25% and ACC’s +85% growth in profits in 1Q 2010(Y-o-Y),Infrastructure output up +6.5% in June 2009 and on reports of revival of monsoons.Sensex couldn’t have asked for a better day.
Profits have been better than expected.It is now being hoped that India Inc.will have a rerating for 2009-2010.If new ratings show high divergence from previous estimates,Sensex target could have a deserving boost.
Tomorrow is a R-day.Are any earning surprises from Reliance numbers being expected? Reliance has a peculiar trading pattern on announcement day:scrip is high in the morning but starts to crack by afternoon.
Sensex slips below 15,000; Wipro drops
The BSE Sensex erased early morning gains of over 2 percent and ended 1.46 percent down on Wednesday as weak sentiments across Asia downplayed investor sentiments.
The 30-share sensitive index swung from an intra-day high of 15,369 to an intra-day low of 14,786 and closed 219 points lower at 14,843.
The fifty-share Nifty ended 1.57 percent down to 4398.
IT and capital goods stocks saw some heavy selling while most of the other sectors pared their early gains.
On the sectoral front, the BSE Capital Goods Index dropped 1.87 percent, followed by the Auto Index which ended 1.61 percent lower. All other indices ended the day in the red.
Wipro Ltd beat estimates with a 13 percent rise in quarterly profit but joined its bigger rivals in giving a cautious forecast due to uncertainty in the global economy.
Shares in Wipro ended 1.52 percent lower at 451 rupees on the muted outlook.
Markets rose 1,791 points(13.4%)during last week so a drop of 348 points(2.30%)is hardly alarming.Call it a pause or call it profit-booking or correction,markets are looking poised to make a new 52-week high.
If Reliance announces an earning surprise in 1Q 2010 results,markets would redo Monday’s rise.
A spate of new issues starting with Adani Power IPO are ready for subscription.Afterall,Power companies are replacing Realty companies as market’s sweethearts.So to get them subscribed,we need to keep sensex buoyant.
Sensex range bound in choppy trade
The Sensex remained volatile in trade and ended 0.08 percent lower on fears of a fall in corporate earnings for the June quarter.
IT bellwether Infosys Technologies, will kick off the earnings season on Friday.
The rupee weakened to 49/dollar, its weakest since May 18. It was down 2.2 percent on week early in opening trade.
The Wholesale Price Index fell 1.55 percent, with the primary and food article indices gaining and the fuel index remained unchanged. Manufacturing, however, slipped 0.1 pct.
The 30-share sensitive index swung from an intra-day high of 13,879 to an intra-day low of 13,643 and closed 11 points lower at 13,757. The fifty-share Nifty ended 0.05 percent higher at 4080.
On the sectoral front, the BSE Consumer Durable Index dropped 1.4 percent, followed by the Capital Goods Index which ended 1.07 percent lower. However, the BSE Metal Index closed 1.53 percent higher.
FIIs bought net $158.5 million in shares and sold $3.6 million in debt.
Today is a crucial day for sensex.Its future direction will be influenced by 1Q 2010 result announcements to be made by Infy.Traditionally,Infy starts to give out numbers before the opening bell.What is unnerving is that yesterday’s last hour of trading had a host of sellers in this scrip.
If we look at 4 top sensex shares with a maximum weightage,not less than 3 have some adverse fundamental development going against them:
Reliance:KG gas issue,MAT issue
Infosys:IT industry slowdown
L&T:Positive
ICICI:Expected rise in interest rates due to heavy borrowing programme by government
The disappearance of rains has become a worrying factor.Madhya Pradesh has declared itself as drought stricken.
Let us wait for the sensex to hit a bottom.
Sensex tanks on global economic worries
Selling pressure pulled the BSE Sensex below 14,000 on Wednesday as concerns over global economic recovery spooked financial markets all around.
Trade was volatile and the 30-share sensitive index touched an intra-day low of 13,701 before closing 401 points lower at 13,769. The fifty-share Nifty ended 2.93 percent down at 4,078.
The fall in the benchmark was led by L&T, ICICI Bank, Reliance Industries and HDFC Bank.
On the sectoral front, the BSE Realty Index dropped 8.47 percent, followed by the Capital Goods Index which ended 5.05 percent lower. All other indices ended in the red.
On the global front, Asian and European markets felt the selling heat as investors pulled funds out of bets on the global economic recovery.
Doubts about the strength of the global economy saw oil prices falling more that a dollar. Do you think the Sensex fall is a sign of a downtrend setting in, or is it a correction that will see the benchmark scaling new heights?
Sensex’s and global indexes falling together today may be just coincidental.Bourses are clearly under pressure.Sensex has lost 1,144 points(-7.6%)since b-day.FIIs are on a withdrawal spree.Investors should now try to find out the bottom,and reenter at safe levels.
Monsoons are again playing truant over grain bowl states.The spectre of drought has reappeared.Markets are hoping for cheerful news from Infosys on friday but if there were disappointment in store,sensex could slide faster.
Call it correction or adverse sentiment or global worries,sensex is clearly heading towards a fall.
Markets jump over 400 points
The Sensex ended the week on a strong note, gaining 2.9 percent on Friday to close at 14,765 as investors bought shares after a recent fall in markets.
ICICI Bank was the star performer with its stock jumping 9 percent to 754 rupees. Other Sensex heavyweights like Reliance Industries and Infosys gained nearly 4 percent each.
All sectoral indices, except the healthcare index, ended with smart gains. The BSE Banking and Capital Goods indices led the pack with gains of over 4 percent each.
Stocks like Central Bank of India, Mindtree, Nestle and IVRCL Infra touched their 52-week high during trade.
Top traded stocks on the BSE included IFCI, Ispat Industries and Suzlon Energy.
With the market closing above the 14,500 mark, do you think the Sensex will extend its gains and touch 15,000 levels again?
A strong gain of 419 points on 26 June in sensex points to an impending rally.Sensex could touch 15,400 in the ensuing week.
A sustained rally would however depend upon a break-out of monsoon over grainary areas and more incentives for business and industry in forthcoming budget.
Sensex snaps 14 weekly run of gains
The BSE Sensex advanced on Friday tracking world markets after positive U.S. economic data boosted investor sentiment and cemented hopes of a global economic recovery. The benchmark, however, snapped a run of 14 weekly gains. The 30-share sensitive index swung from an intra-day low of 14,179 to an intra-day high of 14,559, and closed 256 points higher at 14,521. The fifty-share Nifty ended 1.4 percent up at 4313.
The rise in the benchmark was led by L&T, Infosys, ITC and HDFC Bank.
On the sectoral front, the BSE Capital Goods Index advanced 4.5 percent, followed by the Realty Index which ended 3.1 percent higher. All other BSE Indices closed the day in the green.
Do you think the positive sentiments across the globe will help the Sensex regain 15,000 levels?
Sensex gains on signs of easing recession
The BSE Sensex rose on Friday on positive global cues amid profit taking by cautious investors, posting its 13th consecutive weekly gain in four years.
The 30-share sensitive index swung from an intra-day high of 15,257 to an intra-day low of 14,994, and finally closed 94 points higher at 15,103. The fifty-share Nifty ended 0.3 percent higher at 4586.
The rise in the benchmark index was led by L&T, Infosys, BHEL and ICICI Bank.
On the sectoral front, the BSE Capital Goods Index gained 2.9 percent, followed by the IT Index which ended 2.6 percent higher. The BSE FMCG Index, however, ended lower at 2.3 percent.
A global rally in stocks has propelled the benchmark up 88 percent from a 2009 low in early March, with foreign funds pouring in more than $6 billion into the market.
Do you think with positive sentiments visible globally and domestic investors hoping for favourable reforms, the Sensex will be able to continue its upswing next week too?
Sensex falls as post-poll euphoria begins to fade
The stock market was volatile today as profit taking continued for the second day after a two-day post election rally. Weak Asian markets too weighed on investor sentiments.
The Sensex moved mostly in negative territory throughout trade, turning positive briefly after touching an intra-day low of 13,704.43 points and then shifted back to the red. The benchmark closed 324.12 points down at 13,736.54, while the Nifty ended 59.40 points lower at 4,210.90. The main contributors to the benchmark’s fall were L&T, ICICI Bank, HDFC and Reliance Industries.
On the sectoral front, the BSE Capital Goods Index dropped 5.4 percent, followed by the Banking Index which ended 2.9 percent lower. The BSE Public Sector Undertaking Index, however, ended higher at 2.7 percent.
FIIs sold net $49.10 million in shares.
Oil stocks gained on account of higher crude prices which is now hovering above $60 a barrel. The realty sector fell on account profit taking, but the outlook remains robust as the new UPA government is likely to focus on investments in infrastructure to boost economic activity.
Data showed inflation has risen to 0.61 percent on account of higher food and metal prices in the 12 months to May 9.
Do you think the formation of the new government will infuse confidence among investors and help the Sensex cut losses?
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- Essar's Ravi Ruia, Loop execs get bail in 2G case
- Nasdaq chaos engulfed Facebook IPO
- SEBI toughens stance on serious cases
- Under pressure, govt to review steep petrol hike
- Spain region, Greek exit warnings rattle euro zone
- Stocks, euro fall on fears of Greek euro exit
- S&P cuts ratings on five Spanish banks
- Rupee posts eighth weekly drop; RBI intervenes
- BSE Sensex ends flat; outlook still weak
- ITC profit rises 26 pct as price hikes aid
The Wall
