Mkt bets on last rate hike tomorrow, closes 167 pts up

15 Sep 2011

1

Market showed spectacular upmove in the final hour of trade after consolidating for most part of the day, on hopes that the Reserve Bank of India may hike key rates for the last time in its credit policy meet tomorrow. The 30-share BSE Sensex rose 166.94 points (up 1%), to close at 16,876.54 and the 50-share NSE Nifty gained 63.15 points (up 1.26%), to end at 5,075.70.

Considering the fact that inflation has risen to 9.78% in August, most experts are of the view that tomorrow's hike (which is expected to be 25 basis points) would be the last one by RBI.

Samiran Chakrabarty of Standard Chartered Bank believes that the central bank will hike rates by 25 basis points tomorrow. The bank, he said, is left with very little option but to follow-through on what it had promised in the May and July policy; changing track is going to be difficult.

Tushar Poddar, vice president and chief India economist, Goldman Sachs, on the other hand feels that the RBI may take a decision to pause rate hike in its policy meet on Friday as it has done enough tightening already. "Global situation has changed since the last RBI meet. The central bank does not need to hike rates every six weeks. However, even if the bank doesn't hike rates this time, it doesn't close the window for future hikes," cautions Poddar.

European markets too helped the market to rally; France's CAC, Germany's DAX and Britain's FTSE moved up 2% each. The Dow Jones Futures rose 0.5%.

Appreciation in Indian rupee too was quite supportive; it was trading at 47.59 per dollar today as against 47.64 on Wednesday.

Realty, technology, bank, auto and oil & gas sectors led the rally; respective indices rose 1-3%. However, the sell-off in FMCG and capital goods sectors has limited the upside.

Rate sensitives were on buyers' radar. From the financial space, SBI surged 3.6% and HDFC gained 2.6%. ICICI Bank and HDFC Bank moved up 1%. DLF from realty space shot up 4%.

Heavyweight Reliance Industries rose 1% while ONGC closed flat.

Tata Motors was the biggest gainer; the stock shot up 6%. M&M gained 1%. However, Maruti Suzuki fell 1% due to workers' strike at Manesar plant.

Technology sector continued its uptrend for the second consecutive session due to depreciation in rupee. Infosys, TCS and Wipro closed 1.5-2% higher.

Among other largecaps, Bharti Airtel, Sterlite, Jaiprakash Associates and JPSL were up 1.5-2%.

However, L&T slipped over 1% as it was the second lowest bidder for NTPC's 800 MW tender. However, BGR Energy, which was the lowest bidder for NTPC's 800 MW tender, shot up 14%. BHEL slipped 1%.

Tata Steel, HUL and Tata Power were down 0.5-1%.

The market breadth too closed in favour of advances; about 802 shares gained as against 624 shares declined. Total traded turnover was more than Rs 1.44 lakh crore.

At 15:15 hours IST : Sensex gains over 150 pts; Tata Motors top gainer

Indian equities moved up further on the back of support from banks, technology, oil & gas, telecom, select metal and auto stocks. The 50-share NSE Nifty climbed 70 points to 5,073 and the 30-share BSE Sensex moved up 182 points to 16,892 ahead of RBI policy meet to be held tomorrow. On the global front, European markets were trading 1.5-2% higher.

Biggest gainer was Tata Motors, which shot up 7%. Among banks stocks, SBI crossed the Rs 1900 level, gained 4%. ICICI Bank, HDFC Bank and HDFC were up 1% each. Kotak Mahindra Bank and Axis Bank rose 3%.

Technology stocks like TCS, Infosys and Wipro rallied 2-3%. From the telecom space, Bharti Airtel and Reliance Communications jumped 3%. DLF surged 4%.

However, BHEL, L&T, HUL, Tata Steel, Maruti, Sun Pharma, Hindalco and Ranbaxy Labs were only losers; these stocks fell 0.5-1.2%.

At 14:36 hours IST : Nifty hits 5050; Banks, tech, telecom support

Financial, realty, technology, telecom and cement stocks helped market rebound in the afternoon trade. European markets too were supportive; France's CAC, Germany's DAX and Britain's FTSE gained in the 1.5-2% range. The 50-share NSE Nifty touched 5050 amid choppy trade. The index rose 33 points to 5,046 and the 30-share BSE Sensex gained 68 points at 16,778.

Reliance Industries was one of the most volatilie stocks, which was up 0.4%. Technology stocks continued their positive momentum due to rupee depreciation; TCS, Infosys and Wipro moved up between 1.5% and 2%.

Rate sensitives like SBI and DLF rallied over 3% ahead of RBI policy meet to be held on Friday. Almost all experts feel that there would be 25 basis points hike in key rates from RBI.

HDFC Bank, HDFC and ICICI Bank climbed 0.6% each. PNB, IDFC and Kotak Mahindra Bank gained 1-3%. Tata Motors surged 3.5%.

Reliance Communications rose 2% as sources claimed that the company will undertak massive restructuring exercise. Company is likely to lay off about 700 employees, say sources.

However, largecaps like L&T, ONGC, BHEL, ITC, HUL, NTPC, Hindalco and Maruti Suzuki were down 0.4-1.3%. Tata Steel fell 1.4%.

BGR Energy Systems shot up 8% as company was the lower bidder for NTPC's 800 MW order.

About 762 shares advanced as against 639 shares slipped.

At 13:37 hours IST : Sensex listless despite positive European cues

Indian equities continued to trade listless, even as Europe saw a strong opening to trade. The 30-share BSE Sensex dropped 6 points, at 16,703, while the 50-share NSE Nifty rose 8 points to 5,021.

Technology, banking, realty and cement stocks were on buyers' radar.

European Commission President Barroso will present options for the introduction of common euro zone bonds, which would help ease the euro zone sovereign debt crisis. But president said the plan was not considered a permanent solution to the euro zone sovereign debt crisis. France's CAC, Germany's DAX and Britain's FTSE were up 1.7-2%.

On the home turf, heavyweight Reliance Industries rebounded with moderate gains. From the banking space, SBI gained 1.7% and Kotak Mahindra Bank rallied 3%; HDFC Bank and HDFC were up over 0.5%.

Technology stocks were leaders for second consecutive session; TCS, Infosys and Wipro jumped 1-2%.

Tata Motors, DLF, Ambuja Cements, Reliance Communications and IDFC shot up 2.5-3%.

However, Maruti, L&T, Tata Steel and Reliance Infrastructure were down 1-2%. ONGC, ITC, HUL, NTPC and BHEL slipped 0.2-0.8%.

At 12:56 hours IST : Nifty struggles at 5000; Oil & Gas, Capital Goods slide

The 50-share NSE Nifty continued to struggle at 5,000 mark amid extremely volatility. Sell-off continued in oil & gas, capital goods, private banks, FMCG and power stocks. The index fell five points to 5,007 and the 30-share BSE Sensex slipped 42 points to 16,667.

Heavyweight ONGC was down more than 1% ahead of its follow-on public offer to be opened for subscription on Monday. Price band for the issue will be decided soon.

L&T extended the fall; the stock lost 2%. FMCG players like ITC and HUL were down over 1%.

Among other largecaps, Reliance Industries, NTPC, ICICI Bank, HDFC, HDFC Bank, BHEL, SAIL and Bharti Airtel declined 0.5-1%.

Maruti Suzuki remained its top position in the selling list; tumbled nearly 3% as Suzuki's power train, 2-wheeler, casting plant workers are on indefinite strike.

However, buying in SBI, TCS, Infosys, Wipro, DLF and Tata Motors, which gained 0.5-2%, has capped the downside.

Most active shares on exchanges were SBI, Everonn Education, JSW Steel, L&T, Infosys, Reliance Industries and Tata Steel .

Market breadth has been mixed; about 701 shares advanced as against 673 shares declined.

At 12 hours IST : Mkt choppy ahead of tomorrow's RBI policy; Maruti top loser

The market is hovering around its previous closing values. The 50-share NSE Nifty was trading at 5,012, down just 0.15 points and the 30-share BSE Sensex fell 21 points to 16,688. The benchmarks seemed to have priced in depreciation of rupee and are waiting for the RBI policy on Friday, which is expected to set the tone for the market.

Tomorrow is a big day for the market, says Ambareesh Baliga, chief operating officer of Way2Wealth Securities. "A positive surprise tomorrow will help us move towards 5,200. But if the RBI keeps the door open for further hikes, it will be difficult to cross that level," he said. In fact, a 50 basis point hike (instead of the expected 25bps) will push the market back to 4,800 levels, he adds.

Largecaps like L&T and NTPC were down 1-1.6%. Among others, ITC, Reliance Industries, ONGC, ICICI Bank, Bharti Airtel, HUL, HDFC Bank, BHEL and HDFC fell 0.4-0.8%.

However, buying continued in TCS, SBI, Infosys and Wipro, which gained 0.5-1%. DLF was the biggest gainer; the stock rose nearly 3%.

Kotak Mahindra Bank, Tata Motors, JSPL, Ambuja, BPCL, Jaiprakash Associates and Reliance Communications moved up 1-2%.

The Indian rupee was trading at 47.85 per dollar, a fall of 0.21 a dollar from previous day's closing.

The broader indices were flat. About 1350 shares advanced while 1039 shares declined on BSE.

At 111:08 hours IST : Sensex sheds 100 pts; capital goods, oil & gas, FMCG dip

Equity benchmarks extended losses amid volatility, led by fall in private banks, FMCG, capital goods, oil & gas and power stocks. The 30-share BSE Sensex fell 120 points to 16,589 and the 50-share NSE Nifty lost 35 points to 4,977.

Gautam Shah, chartered market technician and vice president- financial services at JM Financial said after a 1,000 point fall on the Nifty in August (since July), the bears are in breathing mode. He sees the market continuing to make lower bottoms and lower tops, and advises to sell on every rally as upside is capped.

Maruti Suzuki, L&T, HUL, Hindalco, Sesa Goa, ICICI Bank and ITC were top losers among largecaps; these stocks declined 1-2%.

Top gainers were DLF, Jindal Steel, Jaiprakash Associates, Ambuja Cements and Kotak Mahindra Bank and GAIL, which gained 1-2.5%. SBI and M&M were up over 0.6%.

SBI, Everonn Education, ARSS Infra, Pipavav, Infosys, Reliance Industries and L&T were most active shares on the exchanges.

About 624 shares advanced as against 663 shares declined on the National Stock Exchange.

Midcaps like DB Realty, Sobha Developer, Gillette India, Indiabulls Real and GTL were up 3-8% while Marico, SREI Infra, KGN Industries, Pipavav and TTK Prestige slipped 3-8%.

At 10:15 hours IST : Nifty goes below 5000, Re at 47.84/$ despite RBI step

Indian equity benchmarks slipped into red amid choppy trade. Sell-off in private banks, FMCG and select auto stocks weighed on the market while buying in ADAG, cement and select metal stocks capped the downside. The 30-share BSE Sensex was trading at 16,634, down 75 points and the 50-share NSE Nifty fell 17 points to 4,995.

Indian rupee, which appreciated sharply from day's low after the Resreve Bank intervened by selling dollar yesterday, depreciated to 47.84 per dollar (down 0.43% ) again.

Largecaps like L&T, HUL, ICICI Bank, HDFC Bank and ITC were down 0.5-1.5%. ONGC, HDFC, TCS and Bharti Airtel were marginally in the red.

Maruti Suzuki fell nearly 2% as Suzuki's power train, 2-wheeler and casting plant workers are on indefinite strike.

However, SBI slipped from day's high, which had surged 1.8% in early trade. The stock was up 0.8%.

JSPL, Kotak Mahindra Bank, DLF, Ambuja, BPCL, ACC and Ranbaxy Labs gained 1-2%. Wipro, Sterlite, JP Associates, Reliance Communications, HCL Tech and Reliance Power were up 0.5-1%.

About 1120 shares advanced as against 786 shares declined on BSE.

At 9:18 hours IST : Sensex turns volatile after initial spike in opening trade

Predictably, the benchmark Sensex opened more than 100 points up on Thursday following positive global cues only to lose more than half of the gains immediately. Reassuring comments from European ministers on Wednesday had played positively on global sentiments, which was expected to reflect on Indian market sentiment as well.

The 50-share NSE Nifty rose 20 points to 5,032 and the 30-share BSE Sensex gained 63 points at 16,772. The CNX Midcap went up 37 points to 7,300.

Among largecaps, BHEL, HCL Tech, Wipro, Infosys, BPCL, Jaiprakash Associates, SAIL, Sterlite, Tata Steel, Hindalco, SBI, IDFC, HDFC and Kotak Mahindra Bank were witnessing buying interest.

However, Maruti lost 1.5% as labour unrest spread to 3 Suzuki units.

Sesa Goa and Hero Motocorp too were down.

Pipavav Shipyard plunged 4% as other shipyards L&T, Bharti and ABG raise objections for Pipavav-Mazagon JV.

Kingfisher Airlines lost 3% as auditor raised doubts over company's survival.

Tamil Nadu brought DTH under tax net and will levy 30% entertainment tax. Sun TV fell 6%.

Marico slipped 7% as company said there would be possibility of PAT for next couple of quarters falling short of current expectations.

However, Everonn gained 4%. Jaypee Infra, Indiabulls Real, Apollo Tyres, Jubilant Foodworks, Mahindra Satyam, Lovable Lingerie, Zee Learn and A2Z Maintenance up 2-3%.

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