SENSEX 17503.71 +111.32
NIFTY 5332.40 +32.40
USD/INR 0052.00 +00.21
NASDAQ 3028.19 -03.26
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UPDATEDTIME 09.28 PM 18 APRIL 2012
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The Bombay
Stock Exchange's Sensex extended its winning streak for the fourth
consecutive session and closed above the psychological levels led by gains in
the auto, metals, pharmaceuticals and FMCG sectors on the back of positive cues
from European peers.
According to dealers, the recent winning streak suggests that the intermediate trend has turned bullish and more upside can be expected in the coming sessions. A clarity on the General Anti-Avoidance Rule and corporate earnings for the quarter ended March 2012 will give direction to the market in the coming weeks.
Experts are of the view that after a painful FY12, the chances of positive surprises in FY13 for the markets are more.
"I am fairly certain that FY13 will be an improvement over FY12 which was almost like a perfect storm. Everything that could go wrong for India went wrong, from currency to interest rate cycle to liquidity cycle to government policy paralysis to everything else. I do not think FY13 will be as bad.
Also, you should remember, in FY12 expectations were still fairly high when we came into the year. Going into FY13 where a complete gloom doom is there, everybody has written off India, our own expectations are fairly low.
So, on both the counts the fact that a few indicators will be positive for this year and the expectations are going to be fairly low. The chances of a positive surprise are much higher for FY13 than they ever were for FY12.
The Sensex closed at 17503.71, up 111.32 points, or 0.64 per cent. It touched an intraday high of 17530.30 and a low of 17361.71
The National Stock Exchange's Nifty ended at 5332.40, up 32.40 points, or 0.61 per cent. It touched an intraday high of 5342.45 and a low of 5291.30.
"I have been advocating that we will remain in a range and there is a possibility that the range might break on the upside. That possibility has been made stronger today with some strong buy signals happening on the intraday charts.
As long as the market remains above 5280, I would look for more buying opportunities on the index. If 5280 level is broken then possibly the Nifty may move back to 5200-5350 range.
The BSE Midcap Index was up 0.25 per cent and the BSE Smallcap Index moved 0.27 per cent higher.
Among the sectoral indices, the BSE Auto Index was up 2.05 per cent, the BSE Healthcare Index advanced 1.18 per cent and the BSE FMCG Index gained 0.96 per cent. The BSE Capital Goods Index moved 0.89 per cent lower, the BSE Power Index slipped 0.78 per cent and the BSE Oil & Gas Index declined 0.59 per cent.
Coal India (3.85%), HDFC Bank (3.22%), Tata Motors (3.15%), Maruti Suzuki (2.92%) and Hero Moto Corp (2.42%) were the major Sensex gainers.
"We have been advising our clients to buy Tata Motors for a couple of reasons. Global sales are doing extremely well and there is also talk of unlocking value by going for IPOs. If the diesel version of Nano is launched, it can contribute on the domestic front.
The recent rate cut is also going to help all these auto majors. We firmly believe that if the monsoon is good, rate cut reversal would continue and that would be positive for companies like Tata Motors.
BHEL (-3.66%), Hindalco Industries (-1.91%), GAIL (-1.77%), Wipro (-1.35%) and Reliance Industries (-1.01%) were among the index losers.
Reliance Industries will be announcing its results for the quarter ended March 2012 tomorrow. The oil and gas major's profit may take a hit, but the stock may not see a sharp correction, Chokkalingam said.
"The profit should come down roughly about 20 per cent year-on-year because of the fall in the refinery margins. But the stock may not crack because so far hardly 5 per cent of the buyback offer has been executed by the management. There is a lot of scope to provide support to the stock in the short term," he added.
Morgan Stanley has resumed coverage on BHEL with an underweight rating. It expects the company's profits to decline by an overall 38 per cent during FY12-15. It has a target of Rs 206 on the stock.
Gujarat Gas executed a fully termed gas sales and transportation contract with GAIL for purchase of gas from the Panna-Mukta and Tapti fields.
Market breadth was positive on the BSE with 1492 gainers against 1364 losers.
According to dealers, the recent winning streak suggests that the intermediate trend has turned bullish and more upside can be expected in the coming sessions. A clarity on the General Anti-Avoidance Rule and corporate earnings for the quarter ended March 2012 will give direction to the market in the coming weeks.
Experts are of the view that after a painful FY12, the chances of positive surprises in FY13 for the markets are more.
"I am fairly certain that FY13 will be an improvement over FY12 which was almost like a perfect storm. Everything that could go wrong for India went wrong, from currency to interest rate cycle to liquidity cycle to government policy paralysis to everything else. I do not think FY13 will be as bad.
Also, you should remember, in FY12 expectations were still fairly high when we came into the year. Going into FY13 where a complete gloom doom is there, everybody has written off India, our own expectations are fairly low.
So, on both the counts the fact that a few indicators will be positive for this year and the expectations are going to be fairly low. The chances of a positive surprise are much higher for FY13 than they ever were for FY12.
The Sensex closed at 17503.71, up 111.32 points, or 0.64 per cent. It touched an intraday high of 17530.30 and a low of 17361.71
The National Stock Exchange's Nifty ended at 5332.40, up 32.40 points, or 0.61 per cent. It touched an intraday high of 5342.45 and a low of 5291.30.
"I have been advocating that we will remain in a range and there is a possibility that the range might break on the upside. That possibility has been made stronger today with some strong buy signals happening on the intraday charts.
As long as the market remains above 5280, I would look for more buying opportunities on the index. If 5280 level is broken then possibly the Nifty may move back to 5200-5350 range.
The BSE Midcap Index was up 0.25 per cent and the BSE Smallcap Index moved 0.27 per cent higher.
Among the sectoral indices, the BSE Auto Index was up 2.05 per cent, the BSE Healthcare Index advanced 1.18 per cent and the BSE FMCG Index gained 0.96 per cent. The BSE Capital Goods Index moved 0.89 per cent lower, the BSE Power Index slipped 0.78 per cent and the BSE Oil & Gas Index declined 0.59 per cent.
Coal India (3.85%), HDFC Bank (3.22%), Tata Motors (3.15%), Maruti Suzuki (2.92%) and Hero Moto Corp (2.42%) were the major Sensex gainers.
"We have been advising our clients to buy Tata Motors for a couple of reasons. Global sales are doing extremely well and there is also talk of unlocking value by going for IPOs. If the diesel version of Nano is launched, it can contribute on the domestic front.
The recent rate cut is also going to help all these auto majors. We firmly believe that if the monsoon is good, rate cut reversal would continue and that would be positive for companies like Tata Motors.
BHEL (-3.66%), Hindalco Industries (-1.91%), GAIL (-1.77%), Wipro (-1.35%) and Reliance Industries (-1.01%) were among the index losers.
Reliance Industries will be announcing its results for the quarter ended March 2012 tomorrow. The oil and gas major's profit may take a hit, but the stock may not see a sharp correction, Chokkalingam said.
"The profit should come down roughly about 20 per cent year-on-year because of the fall in the refinery margins. But the stock may not crack because so far hardly 5 per cent of the buyback offer has been executed by the management. There is a lot of scope to provide support to the stock in the short term," he added.
Morgan Stanley has resumed coverage on BHEL with an underweight rating. It expects the company's profits to decline by an overall 38 per cent during FY12-15. It has a target of Rs 206 on the stock.
Gujarat Gas executed a fully termed gas sales and transportation contract with GAIL for purchase of gas from the Panna-Mukta and Tapti fields.
Market breadth was positive on the BSE with 1492 gainers against 1364 losers.
Regards
RAKESH MAKIN
+91,
9041667797(DIRECT), 9915684997
OFF
0172-4657997
PANCHKULA (Haryana).
Email:makin_97@yahoo.com
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