Sensex closes up 207 pts; realty, metals biggest gainers

The Nifty loses all of its per-opening gains and settles with a flat opening, while the Sensex opens up around 20 points.

FP Staff December 20, 2014 17:24:36 IST
Sensex closes up 207 pts; realty, metals biggest gainers

3:30 The markets showed a sharp improvement as the Sensex closed higher by 219 points to 17370 while the Nifty was up by 63 points to 5289, as per provisional close. All of the 13 sectoral indices on the BSE ended in the green with the Realty index and Metals index gaining more then 2 percent each. Among NSE stocks, 863 stocks had advanced, 605 declined while 87 are the same.

It was clearly a volatile day for the markets which moved in a see saw mode. The major point of the day was the 50 basis point cut by the RBI which led to an improvement in markets. This was then sustained by the European markets which opened in the green.

Within the 30-Sensex pack, 27 stocks gained led by ONGC (3.76 percent), Hero Motocorp (3.28 percent), Gail (3.25 percent). Coal India also closed up 3.1 percent. Banking stocks closed higher. SBI gained 1.8 percent, ICICI Bank up 1.4 percent, Axis Bank up 1.2 percent, HDFC Bank was up 0.23 percent, Yes Bank up 0.52 percent.

Other stocks which also did well were Pantaloon retail, Apollo Tyres, Reliance Capital, Reliance Infra.

Overall, for the markets, fiscal action is what they have to look forward to. According to Dipen Shah, Head of Fundamental Research, Kotak Securities, The future direction of the market hinges on how fast the Government is able to re-start the reforms process. We believe that, the Government will start taking important decisions on reforms in due course, which will provide further impetus to the overall economy in the long term. Till these initiatives are taken, markets may remain range-bound and may be dictated more by the quarterly numbers and global markets."

For tomorrow, investors could keep a close watch on HDFC Bank and HCL Tech as these two are the big results lined up.

Sensex up on strong European markets, ADAG stocks gain

2:30 Markets seem to be gathering momentum led by support from European stocks which opened in the green. The BSE Sensex is 157 points to 17308 near its intra day high while the Nifty is up 51 pts to 5278. Among NSE scrips, 840 stocks have advanced, 600 have declined while 89 are at the same level.

Rate sensitive stocks are moving up as is evident from the gain in HDIL (4.5 percent), SBI (1.65 percent), L&T (2 percent).

ADAG stocks have also gathered momentum as is evident from the sharp jump in the stocks. RCom has jumped 6 percent followed by Reliance Cap (4.7 percent) and Reliance Infra (4.48 percent).

Among the sectoral indices, all 13 are in the green with the BSE Realty up almost 2 percent, Metals (1.9 percent), PSU (1.8 percent). The Bankex is also up a percent.

Manappuram Finance continues to fall as it is down by 6.5 percent after RBI asks banks to reduce exposure to NBFC to 7.5 percent from 10 percent of bank's capital funds earlier.

However, Muthoot Finance, which had fallen sharply earlier is now up 1.6 percent.

Oommen Mammen CFO, Muthoot Finance told CNBC TV-18 that the reduction in bank exposure will not have a significant impact on the company.

Markets choppy as RBI says limited scope for further rate cuts; Pantaloon gains 6%

1:30 Markets continue to be in a see saw mode post the 50 bps rate cut announced by the RBI and admist concerns that there is limited scope for further rate cuts. Both the Sensex and the Nifty are off their day's highs. The Sensex is up 102 points to 17253, off its intra day's high while the Nifty is trading up 27 points to 5254.

The market breadth continues to be positive with 743 stocks (advanced), 671 (declined) and 89 (same level), among NSE scrips.

European stock markets traded mostly higher with investors awaiting a swath of economic data from the euro zone and a debt auction out of Spain.

Banking stocks seem to have shown a mild recovery as the BSE Bankex is trading up 0.45 percent led by SBI (1.25 percent), ICICI Bank (0.58 percent), Axis Bank (0.5 percent), etc.

Among the 30-Sensex scrips, 25 stocks are in the green while 5 are in red. Coal India and ONCG are the top gainer with a jump of 3 percent and 2.6 percent each. DLF is also up by 1.75 percent.

Markets off day's high post rate cut, banks lose shine

12:30 Markets seem to have come off their days high post the announcement of a 50 bps rate cut by the RBI over concerns that another rate cut may not happen in a while.

The Sensex is up 54 points to 17205 (intra day high (17373) led by gains in realty, psu, metals and power. Nifty is up 14 points to 5240.

Banking stocks have lost their shine as is evident in the fall in the BSE Bankex (-0.19 percent). SBI is up marginally 0.6 percent, ICICI Bank has fallen by 0.41 percent, Axis Bank by 0.34 percent, HDFC Bank by 0.24 percent.

Among the 30-Sensex scrips, ONGC and Coal India are the biggest gainers with a jump of more than two percent each.

Manappuram Finance falls 5% after RBI asks banks to reduce exposure to NBFC to 7.5 percent from 10 percent of bank's capital funds earlier.

RBI cuts repo rate by 50 bps, SBI gains 2 percent

11:30 The 50 basis point rate cut by the RBI surprised the markets which have since been on an upward journey. Sensex, the barometer of the Indian economy, jumped by 161 points while the Nifty is up 53 points to 5280.

The Reserve Bank of India (RBI) in its annual monetary policy for 2012-13 on Tuesday slashed the policy rates by 50 basis points. The repo rate at which banks borrow money from the RBI now stands at 8% from 8.50% earlier. Similarly, the reverse repo rate at which RBI borrows money from banks is now at 7% from 7.50% earlier.

Banking stocks have moved up - SBI (2.6 percent), ICICI Bank (1.65 percent), Axis Bank (1.6 percent), Yes Bank (1.72 percent).

Manappuram Finance falls 5% after RBI asks banks to cut exposure

Manappuram Finance and Muthoot Finance have crashed by 6% and 3.8% after RBI asks banks to reduce exposure to NBFC to 7.5 percent from 10 percent of bank's capital funds earlier.

According to the policy, banks should reduce their regulatory exposure ceiling in a single NBFC, having gold loans to the extent of 50 per cent or more of its total financial assets, from the existing 10 per cent to 7.5 per cent of bank's capital funds. However, exposure ceiling may go up by 5 per cent, i.e., up to 12.5 per cent of bank's capital funds if the additional exposure is on account of funds on-lent by NBFCs to the infrastructure sector

The market breadth is optimistic as 866 stocks have advanced, 464 have declined while 72 are at the same level, among NSE scrips.

Among the sectoral indices, the PSU, realty, metals, bankex and power are up more than a percent each.

Markets flat ahead of policy, Coal India gains on penalty cut

10:30 am Markets continue to trade flat ahead of the monetary policy to be announced today. The Sensex is up 7 points to 17157 while the Nifty is up flat at 5225.

Among the 30-Sensex scrips, Coal India continues to trade higher as the stock is up 2.4 percent after the board has decided to bring down the penalty to 0.01 percent of the value of shortfall.

Banking stocks have fallen with State Bank of India down by 0.23 percent, ICICI Bank (-0.74 percent), Axis Bank (-0.49 percent), HDFC Bank (-0.92 percent).

Today all eyes are focused on the RBI's monetary policy review, where it is widely expected that the central bank will go for at least a 25 basis points rate (bps) cut, if the RBI surprises with a 50 bps cut the markets are likely to surge and in the realty and the auto companies will be the most to cheer.

Many experts are also factoring in a 25 bps point cut. According to Sangeeta Purushottam, managing director of Nine Rivers Capital, "a 25 bps rate cut by the RBI would bring a bit of spark into the investment cycle, which is been in doldrums lately".

Market expectations are running high as the monetary policy has assumed so much importance right now as it's the only positive cue that the market has been holding on to for a while now. According to Udayan Mukherjee, CNBC-TV18's managing editor, "If we don't get a rate cut then the market can head down to 5,100 but if we do get one then it can go to 5,300 and we might see some profit taking at those levels."

MindTree gains 10 percent after profits double

Other stocks which are also in the limelight are - Mindtree is up 10 percent today after reporting better than expected profit numbers. Software services provider MindTree has reported a growth of 115.31 percent YoY and 13.7 percent QoQ in its net profit at Rs 68.9 crore for the fourth quarter of FY12.

Flat markets, Kingfisher spurts on clearing I-T dues of Rs 9 cr

9:30 am The Nifty loses all of its per-opening gains and settles with a flat opening at 5,229, while the Sensex opens up around 20 points 17151.

Taking cues from the decline in inflation numbers, the markets made a good recovery in the last hour of trade yesterday. Today all eyes are on the RBI's monetary policy review, where it is widely expected that the central bank will go for at least a 25 basis points rate (bps) cut, if the RBI surprises with a 50 bps cut the markets are likely to surge and in the realty and the auto companies will be the most to cheer.

Coal India gains 2.5 percent today as it has agreed to sign fuel supply agreements (FSAs) with power companies in a few days but it will pay only a marginal penalty for default. The board has decided to bring down the penalty to 0.01 percent of the value of shortfall and the trigger point is at 80 percent. The penalty clause will be effective after three years from now.

Tata Motors gains around 1 percent at Rs 302.65 after the company reported robust global sales yesterday. The group's global wholesales, including Jaguar Land Rover, were 1,39,655 in March 2012, higher by 26 percent over March 2011.

Banking stocks, however, are a bit cautious ahead of RBI's policy review.

Sensex closes up 207 pts realty metals biggest gainers

Today all eyes are on the RBI's monetary policy review Reuters

In a CNBC-TV18 exclusive, Kingfisher has cleared second installment of I-T dues. The installment of Rs 9 crore, due on April 14, was paid on Monday. The stock spurts 2.5 percent in morning trade.

Hotel Leela recovers, the stock is up 4 percent after the promoters said they would pump in around Rs 1500 crore into the venture.

Stocks in News

Apart from the RBI policy meet some important result announcements will keep the markets buzzing. IFCI, SKF India, Goa Carbon etc will be announcing their numbers today.

The I-T department issuesd fresh notices to telecom giant Bharti Airtel in connection with taxation of overseas roaming charges for financial years 2001-02 and 2006-07. This is in addition to the Rs 1,067 crore tax demand notice for non-payment of TDS dues in the last four financial years in a similar case. Bharti Airtel had approached the Delhi high court challenging these notices and has been granted a stay in the matter. The stock is yet to react.

The government aims to start share sale in state-run firms from June. Companies on the list are SAIL, MMTC, Hind Copper, Nalco and Nevyeli Lignite.

Oil marketing companies will be in focus today as fuel pumps will go on a nationwide strike next week, starting from midnight on April 22. Called by Federation of All India Petroleum Traders, the strike threatens an indefinite strike from April 29.

Sources indicate that HDFC has inked a three year lease for HUL's erstwhile headquarters in Backbay reclamation in Mumbai.

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