After three-day of losses, the market showed spectacular rebound on Thursday with the benchmark indices rising more than 1.5 percent on broadbased buying. It was also a polling day, when the fifth phase of general elections for 121 Lok Sabha seats (maximum number of seats in a single phase) across 12 states (including all of Karnataka, Maharashtra and Rajasthan states) was held today. The Sensex climbed 351.61 points to close at 22628.84 and the Nifty was up 104.10 points to 6779.40. The broader markets too participated in the rally; the BSE Midcap and Smallcap indices were up over 1.4 percent. It was a sharp rebound for the market after three days of consolidation with negative bias, say experts. According to them, the euphoria of Lok Sabha elections is not over yet. The Nifty may hit new highs soon, they add. Dalton Capital Advisors’ UR Bhat sees equities doing well if the Bharatiya Janta Party (BJP)-led NDA government is voted to power, and does not rule out the possibility of the Nifty hitting 8000 in the near future .
For the truncated week, both equity benchmarks as well as broader markets closed flat. The market will be shut on April 18 for Good Friday. All sectoral indices closed in green with the BSE Realty, Auto, Metal, Power, Oil & Gas, Bank, Capital Goods, FMCG and IT advanced 1-3 percent. Commercial and luxury vehicle maker Tata Motors and aluminium major Hindalco Industries topped the buying list, rising more than 4 percent each. Top lenders State Bank of India and ICICI Bank surged 3 percent each followed by Axis Bank with 2 percent. However, HDFC Bank was the only loser amongst Sensex 30 stocks, falling 0.9 percent after MSCI says bank’s foreign inclusion factor will be cut from 0.49 to 0.16 with effect from June 2 in its MSCI India Index. Shares of ITC, Reliance Industries, M&M, Wipro (ahead of earnings today evening), Hero Motocorp, Tata Power and BHEL were up 2-3 percent. Housing finance company HDFC and software services exporter Infosys climbed over a percent. HCL Technologies too gained a percent after the company beat street forecast by reporting third quarter (January-March) net profit at Rs 1,624 crore , up 8.5 percent sequentially and 59 percent on yearly basis due to better operating performance. Analysts had expected profit at Rs 1,551 crore.
TCS was also up 1 percent after recouping early losses. While Q4 was a soft quarter in terms dollar revenue and margin, the management commentary was positive reiterating FY15 to be better than FY14 . In the broader space, Tata Metaliks surged nearly 15 percent as Tata Steel says its shareholders will meet on May 16 to discuss merger of Tata Metaliks with the company. Tata Metaliks’ shareholders will get four equity shares of Tata Steel for 29 shares held. Mindtree was up 1.6 percent on a strong Q4 numbers and a 1:1 bonus announcement. Dollar revenue in March quarter rose 4.4 percent and EBITDA margin was up 200 basis points to 21.5 percent. Brokerage house Goldman Sachs raises FY15e-FY16e earnings per share by 2-5 percnet on better revenue growth and margin assumptions. Hathway Cable rallied 6 percent after CLSA initiates coverage with a buy on the stock with a target price of Rs 302 (which offers a 31 percent upside). The brokerage house believe there is also a big option value of broadband ramp-up and if Hathway maintains conversions and if half of subscribers move to higher average revenue per user, the discounted cash flow would rise to Rs 445 per share. Piramal Enterprises gained over a percent as the company will acquire 20 percent stake in Shriram Capital for Rs 2,014 crore. It had already invested Rs 1,636 crore in May 2013 for 9.9 percent stake in Shriram Transport (stock up 3 percent). Advancers beat decliners by a ratio of 1665 to 1012 on the Bombay Stock Exchange.
For the truncated week, both equity benchmarks as well as broader markets closed flat. The market will be shut on April 18 for Good Friday. All sectoral indices closed in green with the BSE Realty, Auto, Metal, Power, Oil & Gas, Bank, Capital Goods, FMCG and IT advanced 1-3 percent. Commercial and luxury vehicle maker Tata Motors and aluminium major Hindalco Industries topped the buying list, rising more than 4 percent each. Top lenders State Bank of India and ICICI Bank surged 3 percent each followed by Axis Bank with 2 percent. However, HDFC Bank was the only loser amongst Sensex 30 stocks, falling 0.9 percent after MSCI says bank’s foreign inclusion factor will be cut from 0.49 to 0.16 with effect from June 2 in its MSCI India Index. Shares of ITC, Reliance Industries, M&M, Wipro (ahead of earnings today evening), Hero Motocorp, Tata Power and BHEL were up 2-3 percent. Housing finance company HDFC and software services exporter Infosys climbed over a percent. HCL Technologies too gained a percent after the company beat street forecast by reporting third quarter (January-March) net profit at Rs 1,624 crore , up 8.5 percent sequentially and 59 percent on yearly basis due to better operating performance. Analysts had expected profit at Rs 1,551 crore.
TCS was also up 1 percent after recouping early losses. While Q4 was a soft quarter in terms dollar revenue and margin, the management commentary was positive reiterating FY15 to be better than FY14 . In the broader space, Tata Metaliks surged nearly 15 percent as Tata Steel says its shareholders will meet on May 16 to discuss merger of Tata Metaliks with the company. Tata Metaliks’ shareholders will get four equity shares of Tata Steel for 29 shares held. Mindtree was up 1.6 percent on a strong Q4 numbers and a 1:1 bonus announcement. Dollar revenue in March quarter rose 4.4 percent and EBITDA margin was up 200 basis points to 21.5 percent. Brokerage house Goldman Sachs raises FY15e-FY16e earnings per share by 2-5 percnet on better revenue growth and margin assumptions. Hathway Cable rallied 6 percent after CLSA initiates coverage with a buy on the stock with a target price of Rs 302 (which offers a 31 percent upside). The brokerage house believe there is also a big option value of broadband ramp-up and if Hathway maintains conversions and if half of subscribers move to higher average revenue per user, the discounted cash flow would rise to Rs 445 per share. Piramal Enterprises gained over a percent as the company will acquire 20 percent stake in Shriram Capital for Rs 2,014 crore. It had already invested Rs 1,636 crore in May 2013 for 9.9 percent stake in Shriram Transport (stock up 3 percent). Advancers beat decliners by a ratio of 1665 to 1012 on the Bombay Stock Exchange.
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