Live Update: Indian Market Closes Flat; INR Gains
15.30 pm IST: Final Market Update for the day. BSE Sensex closed flat while NSE Nifty managed to close marginally higher at 5913. Towards the end of the trading session, Indian market recovered. The recovery was led by quick gains in SBI, HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Coal India.
Public sector banks were among gainers in today’s tade. DLF closed up by 5.7%. Oberoi Realty, Prestige Estate and Indiabulls Real estate gained as well. Hindalco and NALCO also closed higher. Among auto majors Mahindra & Mahindra, Maruti Suzuki and Bajaj Auto closed positive. The automotive stocks have been recommended by ICICI Securities.
Blackridge Capital Adviros CEO Arindam Ghosh said that it will be too early to support the bullish arguments for the Indian market. He feel that the mood could turn negative if the outflows from Indian market increase and Nifty could see 5200 level. The stock market has very quickly recovered from the loss it suffered in August. The currency has also recovered some ground which it lost in August. Not much of improvement has been seen on the policy level. The government is still having many investment proposals pending.
With elections coming next year, the government will have to go slow on reforms and offer more sops to common public to get more votes. The election years always lead to uncertain business climate and many market experts doubt that the government will push ahead with reforms to help the economy.
RBI is seen playing active role in the forex markets. Indian currency gained almost one percent compared to USD today. With rising Indian rupee, the oil subsidy burden on the government budget will decrease.
15.03 pm IST: Indian market has recovered from the day’s low and BSE Sensex was trading flat while NSE Nifty gained 10 points. The markets are near day’s high during the last 30 minutes of trading session. Majority of stocks have gained over previous close and Indian rupee has also gained nearly a percent compared to USD.
Among major gainers on NSE were public sector banks. Bank of Baroda and PNB were trading with gain of 8 percent. JP Associates, Tata Steel, Grasim, BPCL and DLF were trading strong, with stocks higher by nearly 5 percent. Axis Bank, HDFC Bank, Kotak Mahindra Bank have also recovered from the earlier losses. The stocks were up by nearly 2 percent.
Among major losers were Power Grid, Cairn India, Tata Motors, Cipla, ONGC, BHEL and ITC. Oil marketing companies are expected to gain as the Indian currency has gained against USD. The decline in USD would also help some automobile companies importing their units and materials from international facilities.
ICICI Securities has given bullish outlook for Tata Motors, Maruti Suzuki and Bajaj Auto. Jaypee Cement has planned to sell 51% stake in Gujarat cement plant to UltratechCement.
13.30 pm IST: BSE Sensex was down by 150 points at 1.30 pm as some recovery was witnessed in select stocks after profit booking took the markets lower during first three hours of trade. The markets have become volatile and investors are confused after the recent movement of the Indian stocks. While many technical analysts are suggesting going long, some have advised investors to book partial profit.
There were pessimistic voices two weeks back about outlook for Indian economy. However, now we are seeing lot of optimism back in the markets. The currency has gained very smartly and it seems that the UPA government is serious about bringing more investments to the country facing economic slowdown. The imports were lower, mainly due to plunge in gold imports. Exports were higher, helped by higher demand in Europe and US markets, also helped by the decline in Indian currency. Exporters must have made higher profits as Indian rupee declined more than 15 percent in August.
Public Sector banks were back on focus today with SBI, PNB, Bank of Baroda gaining smartly. Larsen, Sesa Goa, Tata Steel were also among stocks trading higher. Private banks were still under pressure after rally witnessed yesterday. Reliance, ITC and ONGC were pulling the benchmark indices down in today’s trade.
After weak opening of major European markets, DAX has managed to recover. FTSE and CAC were marginally down. If European markets improve over next one hour, Indian market could also head towards a positive close.
12.59 pm IST: Indian Market lost further ground and BSE Sensex was down by 201 points at 12.59 pm after yesterday's major upward move. Profit booking was witnessed in many counters as investors turned cautious. Some stocks have given over 10 percent returns in last few trading sessions and a selling pressure was obvious considering the massive upward move in the Indian equities.
The investor sentiment could have improved, but fundamentally nothing much has changed for the Indian market. US dollar has declined from high of Rs 68.82 to under Rs 64 but there hasn't been any significant announcement from the government. The only positive news that came was the decline in deficit during August. The exports were higher while imports were marginally lower compared on year-on-year basis. The chances of war on Syria have become bleak and this has been taken positively by stock markets across the world.
Major losers in today's session were Power Grid, Tata Motors, ONGC, Cairn India, HUL, Kotak Mahindra Bank, ITC, Asian Paints, Axis Bank, ICICI Bank, HDFC Bank and Reliance. Major gainers included JP Associates, PNB, Hindalco, BPCL, Bank of Baroda, Sesa Goa, NMDC, DLF and Grasim.
Indian markets are expected to close lower today considering the lower opening of European markets. Indian currency has slipped in today's trade after opening strong against USD. Market experts feel that Indian market could take a break for short while and remain range-bound before deciding further course.
11.55 am IST: Indian stock market was trading flat after opening strong. BSE Sensex is hovering around 20,000 levels. Indian rupee started the day with gain of nearly half percent but has declined in first three hours of trade. Some select stocks have seen movement in today's trade while market breadth has remained flat.
Emerging markets gained some ground in past few trading sessions but investors remain cautious. While Indian market has improved quite smartly after facing free fall, the stocks in Brazil, Turkey and Indonesia have posted moderate gains.
Stock specific action has been witnessed today. Banking major PNB was among major gainers with stock trading around Rs 480. Hindalco, Maruti Suzuki and Larsen were among other gainers. Among top losers were Power Grid, ONGC, HUL and Tata Motors. Tata Motors witnessed massive positive move yesterday.
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