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Sunday, September 01, 2013

Nifty ends above 5470

The Indian equity market ended near day’s high on Friday extending its winning streak for the third consecutive trading session. Today’s rally was led by the banking, healthcare, FMCG, IT and the telecom stocks. On the other hand, metals, capital goods and the realty stocks were among the top laggards.

It was a day of wild gyrations, the Nifty swung over 130 points while the Sensex see-sawed over 400 points between the day’s high and low. The indices which opened positive went into a tailspin as the Prime Minister started speaking in the Rajya Sabha. The PM said India needs to be perceived as creditworthy, bankable and viable.

India's fiscal deficit during the April-July period was Rs3.41 trillion, or 62.8% of the full-year target. Net tax receipts for the first four months of the current fiscal year to March 2014 touched Rs1.45 trillion, while total expenditure was Rs5.21 trillion.

Finally, the BSE Sensex closed at 18,619 up 218 points, while NSE Nifty closed at 5,472 up 62 points over the previous close.

In the coming week, the auto stocks will be in action as market participants will focus on August auto sales numbers. Among the other important data are, the August HSBC markit manufacturing and service PMI data. Amar Ambani, Head of Research at IIFL expects “Nifty to continue its recovery”. Close above the long term rising trendline support of 5440-5450 has confirmed the bullish stance. However, a close below the critical levels would mean that Nifty is once again heading towards the recent lows of sub 5150 levels, he added.

Bajaj Auto, Cipla, TCS, HDFC, Hindustan Unilever, Asian Paints, HDFC Bank, Ambuja Cement, Ultratech Cem and HCL Tech were among gainers in Nifty.

Jindal Steel, Grasim, Ranbaxy, Tata Steel, Hindalco, Tata Motors, Sesa Goa, Tata Power and M&M were among losers in Nifty.

The advance-decline ratio was marginally in favour of the bulls. On the BSE, 1155 stocks advanced against 1075 declining stocks, while 178 remained unchanged.

Shares of Videocon Industries edged higher by 0.7% to close at Rs173. The company reported 78.78% decline in standalone net profit at Rs. 10.63 crore for the first quarter ended June 30, 2013, mainly on the account of sharp increase in finance cost. The company had reported standalone net profit of Rs. 50.11 crore for the same quarter a year ago.

Shares of Mphasis edged lower to close at Rs421. The company reported consolidated net profit rose 9.1% to Rs 193 crore on 9.6% growth in revenue to Rs 1540 crore in Q3 July 2013 over Q2 April 2013.

Shares of Jindal Steel & Power plunged 9% to close at Rs221 on Friday. The board approved buy-back at a price not exceeding Rs 261 a share, up to an aggregate amount not exceeding Rs 10bn from the open market through the stock exchanges, provided that such buy-back shall be equal to or less than 10% of the company's total paid-up equity capital and free reserves.