Sunday, September 01, 2013
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.
Financial Technologies (India) lost 18.93% to Rs 114.55 at 14:56 IST on BSE, with the stock extending recent slide
Meanwhile, the BSE Sensex was up 33.30 points, or 0.18%, to 18,434.36
On BSE, 47.42 lakh shares were traded in the counter compared with average volume of 9.01 lakh shares in the past one quarter.
The stock hit a 52-week low of Rs 102.05 in intraday trade today, 30 August 2013. The stock hit a high of Rs 143.15 so far during the day. The stock hit a 52-week high of Rs 1223.80 on 13 November 2012.
The stock had underperformed the market over the past one month till 29 August 2013, sliding 75.43% compared with the Sensex's 6.08% fall. The scrip had also underperformed the market in past one quarter, falling 83.18% as against Sensex's 8.67% fall.
The small-cap company has an equity capital of Rs 9.22 crore. Face value per share is Rs 2.
Shares of Financial Technologies (India) (FTIL) dropped 78.85% in August 2013 after its unlisted subsidiary, National Spot Exchange (NSEL) defaulted on payments to its investors. The NSEL had to shut down its operation since 1 August 2013 following the government direction in the wake of violation of certain rules. NSEL is grappling with the problem of payment settlement after the suspension. It has given eight-month plan to settle Rs 5574.31 crore to investors. NSEL is scheduled to make a payout every Tuesday for 30 weeks, ending in March 2014. FTIL is one of the two promoters of the NSEL.
The beleaguered bourse has already defaulted in the last two pay-outs as it was able to gather only Rs 92.73 crore in the first pay-out and Rs 12.05 crore in the second pay-out, out of the scheduled Rs 174.72 crore each.
On 27 August 2013, FTIL said that at a request received from NSEL it has given a bridge loan of Rs 177.23 crore to NSEL for making payments to small investors.
FTIL's net profit rose 6.84% to Rs 81.20 crore on 15.44% growth in total income to Rs 169.54 crore in Q1 June 2013 over Q1 June 2012. The Q1 result was announced after market hours on Tuesday, 30 July 2013.
FTIL's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 17% to Rs 120 crore in Q1 June 2013 over Q1 June 2012. The company's profit before tax (PBT) surged 32% year on year (YoY) to Rs 110 crore in Q1 June 2013.
FTIL is among the global leaders in offering technology IP (Intellectual Property) and domain expertise to create and trade on next generation financial markets, that are transparent, efficient and liquid, across all asset classes including - equities, commodities, currencies and bonds among others. The group operates one of the world's largest networks of nine exchanges connecting fast-growing economies of Africa, Middle East, India and South East Asia. The group also has five ecosystem ventures to address upstream and downstream opportunities around exchanges, including clearing, depository, information vending and payment gateway, among others.
Rollover trend was really mixed signifying uncertainty, with marginal positive bias. So there could be some positive pull back in the market in the days ahead or perhaps one can say that there is little downside for the market from these levels
S&P nifty & nifty future and Futures & Option segment volumes
After witnessing steep fall during the first half of the previous week ended 30th August 2013, the markets in India witnessed sharp gain covering more than the loss due to falling crude oil prices as concerns of a military strike in Syria abated following British parliament voting against the move. Earlier during the week, the equity market and the rupee fell as the Indian government cleared the food security bill that could have major repurcursion for the economy in general. Foreign institutional investors continued to dump the Indian equities as confidence eroded in the Indian market and the recent reform announcements by the government in the form of serious infrastructure push donot seems to enthuse the market. So despite the sharp upmove in the last two days, the macro concerns continue to linger while the threat of unilateral strike by the US on Syria in the next few days has really not gone away. During the previous week ended 30th August 2013 the benchmark nifty closed flat rising just 0.05 points at 5471.80 as compared to the end of the prvious week. In the futures and option (F&O) segment the rollover trend was really mixed signifying uncertainty, with marginal positive bias. So there could be some positive pull back in the market in the days ahead or perhaps one can say that there is little downside for the market from these levels. Rupee too is seen recovering from the current levels. Most of the economic negatives and concerns of US Fed stimulus roll back are factored in. During the week under review the nifty future of the September series added 1.25 crore shares in open interest (OI) to take its total OI to 1.73 crore shares. The Bank nifty future of the September series added 17.20 lakh shares in OI to take its total OI to 21.92 lakh shares.The OI addition was mainly on the long side. In the nifty option segment the 5500 and above strike call option of the September series added OI due to buying, while the 5500 and below strike put added OI due to writing indicating that there is support for the benchmark at this level. The average volume during the week under review was higher at Rs 266308.33 crore as compared to Rs 218817.17 crore during the previous week.
Futures and option volume breakup
The put-call ratio of index options on Friday was slightly lower at 1.04 as compared to 1.2 the previous day. The stock put-call ratio were marginally higher at 0.6 as compared to 0.56 the previous day. The market wide put-call ratio on Friday was lower at 1 as compared to 1.17 the previous trading day.
The market-wide OI on Friday stood at 163.23 crore shares, 12.49 crore shares higher than the previous trading day and 58.78 crore shares lower than the end of the previous week. Stock futures and option segment witnessed aggressive addition of OI on Friday as compared to the previous day. (See the OI break-up table)
5400. 5500 and 5550 strike call option added 3.04 lakh shares, 8.77 lakh shares and 1.48 lakh shares in OI due to aggressive buying on Friday to take its total OI to 27.99 lakh shares, 33.24 lakh shares and 1.48 lakh shares respectively. 5500, 5400 and 5300 strike put option added 16.25 lakh shares, 35.93 lakh shares and 64.36 lakh shares due to aggressive writing indicating the probable strong upmove for the market from the current levels.
Rupee is seen stabilizing at its current levels and the market may witness some pull back from its current levels. But the concerns of Fed bond buying roll back, US attack on Syria, crude price and domestic inflation continues to threaten the rupee and the market as well.