Nifty closes expiry above 5700; M&M, Sterlite, Hero rally

25 Oct 2012

1

Indian shares rose marginally with the Nifty closing above the 5700 level on Thursday - a settlement day for the futures and options contracts of October series. The 50-share NSE benchmark gained just 1 percent in the series following a smart upmove of 6 percent in previous series due to reforms announced by the government to revive sluggish Indian economic growth, strong inflow of foreign money and unlimited bond buying plans by Federal Reserve & ECB in September.

Overall the series has seen a consolidation with the Nifty moved in a range of 5600-5750 especially after hitting the 5800 level.

Dilip Bhat, Joint MD, Prabhudas Lilladher feels the markets have held out very well, which seems to be a phase of consolidation at the moment.

"The tailwind and the momentum is certainly with the markets whether it is the reform measures or whether it is the kind of results the most of the companies that have announced so for (they have been pretty good). I think the bulls have been fairly in control of this kind of a situation so far," Bhat explained.

Foreign institutional investors have bought more than Rs 10,000 crore worth of shares in October and nearly Rs 95,000 crore in the year 2012.

Today the BSE Sensex gained 48.61 points to close at 18,758.63 and the NSE Nifty rose 13.90 points to 5,705.30.

Going forward, Bhat feels a mark of 5,800-6,000 cannot be ruled out, possibly over next two months; especially complimented by good amount of FII inflow.

Shares of utility vehicle maker topped the buying list in late trade, rising 3.6 percent after higher-than-expected numbers in second quarter of FY13 . Net profit rose 22 percent year-on-year rise to Rs 902 crore, helped by strong automotive sales growth and higher other income. Analysts on an average had expected at Rs 820 crore for the quarter.

Two-wheeler major Hero Motocorp and steel producer Sterlite Industries gained 2 percent each after second quarter numbers on Friday after market hours.

Housing finance company HDFC gradually extended gains today to 2 percent at close. India's largest private sector lenders ICICI Bank (ahead of Q2 earnings tomorrow) and HDFC Bank went up 0.6 percent each while public sector lender State Bank of India lost 1.5 percent.

Engineering conglomerate Larsen & Toubro and cigarette major ITC were up over 0.6 percent.

Shares of Hindustan Unilever (ahead of Q2 numbers tomorrow), Tata Motors, Dr Reddy's Labs, Tata Steel and Jindal Steel fell 1-2 percent. Software services exporter Infosys was down 0.3 percent and telecom operator Bharti Airtel declined 0.6 percent.

Kotak Mahindra Bank was up 0.85 percent as its second quarter standalone (only banking operations) net profit moderated nearly 8 percent year-on-year to Rs 280 crore on the back of higher provisions.

In the second line shares, Peninsula Land, which gained 15.5 percent today, rallied 70 percent in three consecutive days to touch a new 52-week high of Rs 84 following strong numbers.

Firstsource Solutions surged 7.6 percent as media reports suggest that Sanjiv Goenka (RPG group) leads race to acquire the company.

Private sector lender rose over 4 percent to hit a new 52-week high of Rs 418.50 post better-than-expected numbers in Q2.

Shares of IRB Infrastructure Developers continued downward journey for the fourth consecutive session on Thursday, falling 16 percent due to the alleged business linkages and cases of financial impropriety with BJP President Nitin Gadkari.

Public sector lender Oriental Bank of Commerce gained 7 percent as the company reported a whopping 80 percent year-on-year jump in its net profit at Rs 302 crore for the second quarter ended September 30, 2012-13; bolstered by a combination of facts: higher interest and other incomes as well as lower provisions against bad loans.

Advancing shares outnumbered declining by a ratio of 1563 to 1244 on the Bombay Stock Exchange.

Indian equity benchmarks became highly volatility ahead of expiry of futures & options contracts for October series today. Shares of Mahindra & Mahindra, utility vehicle maker, rose 3 percent following higher than expected net profit and strong margins in the second quarter of FY13.

The 30-share BSE Sensex fell 8.6 points to 18,701.41 and the 50-share NSE Nifty lost 3 points to 5,688.30. Even the Bank Nifty was flat.

Shares of Jindal Steel and Dr Reddy's Labs plunged 2-2.4 percent. Commercial vehicle maker Tata Motors and country's largest lender State Bank of India were down 1.4 percent each.

FMCG major Hindustan Unilever lost 1.7 percent while housing finance company HDFC gained 1.7 percent.

Two-wheeler major Hero Motocorp and steel producer Tata Steel rose 1 percent each. Shares of Reliance Industries and ONGC were up 0.4 percent each.

Oriental Bank of Commerce shot up 6.7 percent after the company reported a whopping 80% year-on-year jump in its net profit at Rs 302 crore for the second quarter ended September 30, 2012-13; bolstered by a combination of facts: higher interest and other incomes as well as lower provisions against bad loans.

On the global front, France's CAC, Germany's DAX and Britain's FTSE gained 0.5 percent after mixed quarterly earnings by companies.

Indian shares remained flat to positive since early trade, helped HDFC and Reliance Industries. ICICI Bank, L&T, ITC and TCS too were quite supportive. Indian rupee rose by 24 paise to 53.47 against the US dollar.

The 30-share BSE Sensex rose 53.51 points to 18,763.53 and the 50-share NSE Nifty went up 15.20 points to 5,706.60.

Commercial vehicle maker Tata Motors and top car maker Maruti Suzuki fell 1 percent each. Drug producer Dr Reddy's Labs and FMCG major Hindustan Unilever were down 1 percent each too.

Country's largest lender State Bank of India was down 0.77 percent while its rival ICICI Bank gained 0.6 percent.

Housing finance company HDFC was up 1.8 percent. Engineering conglomerate Larsen & Toubro, private oil & gas producer Reliance Industries and top software services exporter TCS rose 0.6 percent each.

Shares of Sterlite Industries rallied 1.5 percent after strong results in Q2FY13 while two-wheeler major Hero Motocorp went up 1.7 percent post quarterly earnings that were in-line with estimates.

Declining shares outnumbered advancing by a ratio of 831 to 594 on the National Stock Exchange.

Indian equity benchmarks remained lacklustre ahead of expiry today. Investors also waited the Reserve Bank of India's move on Tuesday - the day when it will announce its monetary policy review for the six months period ended on September 30.

The 30-share BSE Sensex rose 43.36 points to 18,753.38 and the 50-share NSE Nifty gained 11.8 points at 5,703.20.

Housing finance company HDFC and utility vehicle maker Mahindra & Mahindra (ahead of second quarter numbers) rallied 1.5 percent each.

Cigarette major ITC extended gains to 1 percent while Sterlite Industries retained its top position in the buying list with 2 percent gains.

Two-wheeler major Hero Motocorp bounced back with 1.5 percent gains after second quarter numbers, which were in-line with expectations. Most of the experts advised holding the stock.

Private oil & gas producer Reliance Industries and top software services exporter TCS were up 0.5 percent each.

Shares of Infosys, Hindustan Unilever, State Bank of India, Tata Motors and Sun Pharma were down 0.7-0.9 percent. Maruti and Dr Reddy's Labs fell over 1 percent.

Indian shares gained marginal stregnth with the NSE Nifty trading above the 5700 level amid volatility. Mahindra & Mahindra gained 1 percent ahead of second quarter numbers today. Analysts expect utility vehicle maker's profit after tax to grow by 11.2 percent year-on-year and 13 percent quarter-on-quarter to Rs 820 crore in the quarter ended September 2012.

The 30-share BSE Sensex rose 48.65 points to 18,758.67 and the 50-share NSE Nifty went up 13 points to 5,704.40.

Two-wheeler makers Hero Motocorp (despite sharp fall in net profit on Tuesday) and Bajaj Auto moved up 0.9 percent each.

State-run oil & gas producer ONGC and housing finance company HDFC were up 1 percent each. Index heavyweights Reliance Industries and ITC gained 0.7 percent and 0.5 percent, respectively.

Private sector lenders ICICI Bank and HDFC were up just 0.2 percent while public sector lender State Bank of Index was down 0.4 percent.
 
Country's largest software services exporter TCS rose 0.5 percent while its rival Infosys fell 0.5 percent.

Commercial vehicle maker Tata Motors and top car maker Maruti Suzuki were down 0.5 percent each.

In the second line shares, Kirloskar Oil, Apollo Hospital, Amtek India, Phoenix Mills and MOIL rallied 3-6 percent whereas IRB Infrastructure, Tulip Telecom, Manappuram Finance, Shipping Corp and WABCO India fell 3-11 percent

Advancing shares outnumbered declining by a ratio of 1251 to 1099 on the Bombay Stock Exchange.

The 50-share NSE Nifty continued to move in a tight range of 5687-5697 since opening trade ahead of settlement of futures & options contracts of October series today. The gains in HDFC, Reliance Industries, ITC, ONGC and Sterlite counterbalanced by the fall in Infosys, ICICI Bank, L&T, HUL, SBI and Tata Motors.

"The mood of the market is likely to remain volatile with the expiry of October F&O series slated today," says Magnum Equity Broking.

The BSE benchmark went up 2.26 points to 18,712.28 while the NSE benchmark was down 1.1 points to 5,690.30.

Housing finance company HDFC rose 1 percent. Country's largest lenders State Bank of India and ICICI Bank were down 0.4-0.6 percent.

Shares of Sterlite Industries, a subsidiary of London Stock Exchange-listed Vedanta Resources extended gains to 2.8 percent following stronger-than-expected numbers in the second quarter of FY13. Consolidated net profit jumped to Rs 1743 crore from Rs 998 crore in a year ago period.

Oil & gas producers Reliance Industries and ONGC gained 0.6-0.9 percent. Mahindra & Mahindra went up 0.5 percent ahead of second quarter numbers today.

Infosys, country's second largest software services exporter fell 0.8 percent and engineering conglomerate Larsen & Toubro declined 0.4 percent.

Drug producer Sun Pharma lost 1 percent while Cipla and Dr Reddy's Labs went down 0.4-0.9 percent. Shares of Jindal Steel & Power tumbled 1.7 percent.

Indian equity benchmarks opened volatile with the NSE Nifty hovering around its previous day's closing value ahead of expiry for the October F&O contracts today.

R K Global Research expects F&O expiries will keep the volatility high in between this crucial range of 5630-5750.

"We saw indicators are showing bearish divergence, and flesh scalping in global market, that would keep the Nifty Future under pressure. So traders are advised to cut trading position early, if any trend reversal is seen on the either side," the research firm added.

The 30-share BSE Sensex gained 5 points at 18,714.97 and the 50-share NSE Nifty rose just 0.15 point to 5,691.55.

Reactions post earnings: Hero Motocorp fell 0.8 percent while Sterlite gained 2 percent .

Index heavyweight Reliance Industries gained 0.5 percent after reports suggested that ministry exempted company from Comptroller and Auditor General's performance audit and approved KG D6 output plan.

Housing finance company HDFC and state-run oil & gas producer ONGC were up 0.9 percent each.

Country's largest private sector lenders ICICI Bank and HDFC Bank were marginally down.

FMCG majors ITC and HUL were down 0.2 percent each. Top software services exporters TCS and Infosys slipped 0.5 percent.

In the second line shares, Firstsource was up 3.4 percent as Business Standard reported that Sanjiv Goenka (RPG group) leads race to acquire the company.

Peninsula Land rose 7 percent, continuing upmove for the third consecutive session following strong numbers in Q2.

Kingfisher Airlines fell 2 percent as Delhi engineers refused 3 month's salary offer and asked to pay March-June salary on or before October 26.

United Spirits and UB Holdings were down 1.5 percent after sources said United Spirits-Diageo deal stuck over issues related to management control.

IRB Infrastructure tumbled 3 percent. TV18 Brodacast was down 7 percent (Moneycontrol.com and Television Eighteen Network are both part of the Network18 Group).

Lanco Infratech was down 1.5 percent. IVRCL, Subex, Apollo Tyres and Dish TV gained 1-2 percent.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more