Great things are not done by impulse, but by a series of small things brought together.
With ~28% gain in the May F&O series, the bulls seem to have managed their impulse for quite some time now. The rollover to June was around 58%, which is relatively less.
The outlook at start is expected to be positive though FIIs were net sellers to the tune of Rs7.29bn. Moody’s meanwhile has toned down its pessimism on India by retaining a stable outlook. Hold on to your horses as the GDP numbers for March will be announced today. Expectations are the growth in March quarter may have been the slowest with the economy expanding a little over 5%. Should it disappoint, some profit taking could be seen.
The cues from the global markets show no concerns for the day. The US market ended higher after the government’s recent debt auction saw healthy demand. The Treasury Department said it received $58.7 billion worth of bids for the $26 billion in 7-year notes offered Thursday.
Meanwhile, Government of India raised Rs150bn by selling four bonds maturing between 2016 and 2035.
The Dow Jones industrial average (INDU) rose 103 points, or 1.2% while the broader S&P 500 (SPX) added 14 points, or 1.5%. The Nasdaq composite (COMP) gained 1.2%, adding 20 points.
Asian stocks were mixed in the morning trades, however, the mining stocks recorded smart gains as a better-than-expected Japanese factory output report boosted copper prices. Mitsui & Co gained 1.6%, BHP Billiton advanced 2%, Mitsui O.S.K. Lines was u p 3.4%.
The Nikkei index was flat at 9,457. The Hang Seng index was up 0.3% at 17,949. Straits Times gained 1%. Australia's S&P/ASX gained 1.4% at 3,806. The MSCI Asia Pacific Index gained 0.3% to 100.45 as of 10:38 a.m. in Tokyo.
Japan’s unemployment rate rose to a 5-year high in the month of April. The jobless rate rose to 5% from 4.8% in the month of March.
Crude oil shot up to US$65.08 a barrel after OPEC decided to leave production quotas unchanged.
In news from the media:
Petroleum consultant Gaffney, Cline & Associates has confirmed the presence of oil & gas in two offshore blocks in Reliance’s KG basin-D3 and D9.
Suzlon Energy has successfully renegotiated financial covenants and amended key terms of the bank loan facilities it had taken for acquiring REpower Systems AG and Hansen Transmission.
Aditya Birla Group may not buy L&T stake in Ultratech Cement.
R-Power in talks with Australian mining firm BHP Billiton and Rio Tinto for setting up a coal mining joint venture.
SEBI plans to extend the facility of internet trading in securities on exchanges by enabling use of wireless technology.
The annual wholesale inflation rate remained unchanged at 0.61% for the week ended May 16.
It was the second straight day of gains for the Indian markets on Thursday. The upswing was seen despite weak cues from the US and the Asian markets. The Metal, Banking and the PSU stocks were among the top gainers followed by the Capital Goods and the Realty stocks. However, some offloading was seen in the Pharma, IT and FMCG counters.
The Sensex surged 186 points or 1.3% to close at 14,296 after touching a high of 14,377 and a low of 14,078. The index had opened at 14,115 against the previous close of 14,109.
The NSE Nifty gained 61 points or 1.4% to shut shop at 4,336.
Among the BSE Sectoral indices BSE Metal index was the top gainer adding 2.7%, followed by the BSE PSU index up 2.3%, BSE Bankex index up 1.8%, BSE Capital Goods index up 1.7% and BSE Realty index up 1.7%.
Shares of L&T gained by 2.3% to Rs1342 after the company announced its Q4 results with net profit at Rs9.99bn posting 3.3% growth as against Rs9.67bn in the same period last year. The company’s net sales grew 23.6% yoy at Rs104.7bn as against to Rs84.7bn and has one-time loss of Rs1.44bn. The company announced that it would pay dividend of Rs10.50 per share.
Shares of M&M advanced by 2.1% to Rs639 after the company announced its Q4 results with net profit at Rs4.18bn posting a growth of 89% yoy as against Rs2.21bn. Net sales were up 15% at Rs36.2 versus Rs31.4. The company Q4 EPS was at Rs10.81 versus Rs9.02 and also announced that they would pay dividend of Rs10 per share.
SAIL surged by over 6.5% to Rs164. The company’s Q4 net profit dropped 37% yoy at Rs14.9bn as against Rs23.8bn in the same period last year. The company posted revenues of Rs120.6bn as against Rs134.8bn.
After gaining over 700 points in two trading sessions, some cooling off is not ruled out as trader and investors would prefer to book some profits ahead of the weekend. No other immediate catalysts for now besides the GDP numbers tomorrow.